shitcoins are simply a ponzi scheme written into a smart contract
source
Gone are those days in 2017 where people get scammed through ICOs(Initial Coin Offering), the new way is shitcoins. During the ICO days, projects like bitconnect, onecoin and all were based on just false promises, no whitepaper and nothing tangible were delivered. They usually have this cheesy outline of either being the “New Bitcoin” or going to be the “Bitcoin Killer”.
Funny how you just noticed that some shitcoins are claiming to be the “New Dogecoin” or “DogeKiller”.
But fortunately for crypto enthusiasts, they know better than falling for fake ICOs again. But the scammers are always working harder on our intelligence. They try their best to outsmart their victims, so they came up with Shitcoins.
With the development of shitcoins, they came with white papers, then they make some outrageous medium article explaining their fake projects and how it’s unique and different and they make it seem so believable. The developers behind these fake projects do some illegitimate copy and paste of an existing code from a legitimate protocol, create a token and set up some liquidity pool. This is made just to entice people into thinking their project is real. They then spend a lot of money and time marketing the fake project by using celebrity influencers who have massive social media followers and are social media active.
You should be careful of buying a token with no obvious use case, no transparency and hidden developers. Most of them just stay a while to enable gullible investors pump in a lot of money into the token, creating some sort of liquidity, because more people, means more investments, more liquidity and more money. Then the developers steal the liquidity in a modern way of pulling, exit scam or pump and dump. This is where we call it a rugpull. They withdraw all the money, put it in their personal funds or wallet and abandon the project. This is pure modern Ponzi scheme
If you are looking for a legitimate Defi platform to invest in, CUBdefi is a pure example of a legitimate investment platform. Their developers are well known and exposed with a weekly AMAs. They have experience of more than 5 years. There is a whitepaper and no force promises.
Check it out here
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You also have to factor into it people aren't ignorant to scams. They just get into scams hoping they can make quick money. So you have alot of that going on in crypto mostly that. If that wasn't happening in crypto the best projects would be top 10 cryptos and they aren't. Most projects are ponzi scheme scams that are manipulated. Real projects with real use cases don't do well.
See its a reason why scams can steal billions of dollars. It's not about ignorance it's about greed. Many of the people know its a scam. However as soon as they lose their money they still wil call regulatory bodies and the authorities. That's the problem when you treat crypto like a gambling casino. You go for the quick buck as most do. They dont look at a project concept and look down the road as to what problems it solves and who it helps. They want a quick moonshot then they want to dump the coin and get out. lol. That's what it is. That's why i rarely if at all buy cryptocurrency. I only use mostly free cryptocurrencies because to me they all mostly ponzis.
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This is true but my attention was not based on greedy people though, but you have a great valid point
Well what percentage of crypto people not greedy? if they were looking for good projects the good projects would dominate. .the good useful projects do not dominate the space. coins that appreciate and are pumped dominate the space or can be manipulated. that's why defi does so well it's based on pumped coins not utilized coins.. that doesn't mean it wont change in the future it will.. but right now thats mostly what's going on. so most people know the projects are already scams or not they participate anyway
Posted Using LeoFinance Beta
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