Crypto Projects: Are They Really All New and Original?

Crypto Projects: Are They Really All New and Original?

By MikeZillo | Blockchain Insights | 27 Nov 2020


In every corner of the growing network, fast as the  light, new projects arise promising amazing technological and digital innovations accompanied by yields that would embarrass even the most astute gamblers.

Honestly, the situation is not exactly the best, as, being the world of cryptocurrencies complex, albeit compelling, it can make you lose money. And many!

For some it might be trivial, but for some people who believe in the solution of all their economic problems that self-styled subjects promise, well, for these people it is pains, because they could blow up their entire life savings.

With this I am not saying that innovation must stop at what has already been invented, but I criticize those projects that are the bad copy of others perfectly functioning projects already integrated into the ecosystem.

Just to give you an example, the other day, I was reading about a person who had thrown himself into a new project, in which he placed great trust.

So out of pure whim I went online to collect information and get my own idea.

First of all, I looked for the White Paper to understand what was the problem the company is trying to solve.

Well, in fact, I started to search this "elusive" White Paper but I could not find nothing, not even the shadow ... so how do I do it?How can I get all the intels to decide by myself if this project can be successful?

Okay, let's assume that what  is written on the site is enough, always bearing in mind that some positive aspects can be amplified and some negatives overlooked.

They talk about an innovative credit card. Credit card are usually used for payments. What will this credit card may have of special? Will it make me the Real Espresso Coffee?

So far, nothing strange and nothing good. Credit cards exist since they decided to make poor people living in debts.

The Road Map shows all the milestones that the company has set itself with the deadlines.

Well while I was reading this Road Map the attention focused on two fundamental steps that made me instantly understand that my approach was wrong: I believed it was a company operating on Blockchain and made use of its own Token, instead it is a service of payment which, in order to attract more users, has also added cryptocurrencies to their range of services.

But let's see in more detail what this project offers and let's compare it to a well known and tested one: Stellar Lumens.

"NO NAME" PROJECT

  • First of all, to be able to register as a basic user you need a Referral Link, an invitation if we want to be more professional;
    • Basic registration (CUSTOMER) ---- Free.
    • Member: to become a member, you need to buy a product that clearly has a minimum amount.
    • "VIP" customer (invented name): to become a "VIP customer" you need a subscription, of which neither the amount nor the frequency is mentioned.

As soon as you enter this ecosystem, a world of possibilities opens up: from travel vouchers to the possibility of making payments through a special app (app and not dApp). Obviously, all the possibilities that you have in using the card have a Cashback, i.e. a percentage of the purchase is restored.

  • Note that this "ecosystem" also has a native Token which is used for on-chain payments and for the compensation of commissions.

The beauty comes now.

  • This Token cannot be exchanged in any Exchange and therefore does not have its own value but is defined by the users of the network. That specific network.

In practice, on a financial level, that Token has the same validity as a Kleenex. Used.

Doesn't that seem like a paradox?!? !!?

Now let's look at how the STELLAR LUMENS PROJECT works.

  • On the Home Page of the site you can register and connect directly to your Wallet and immediately start making transfers.
  • No Referral Link, no "tax" to use the network; clearly there are the usual "network commissions" but those are the fundamental part of the miners' livelihood!

Obviously there is no app and there is no credit card; but not for this you can not make payments, everything works perfectly: the amount in fiat currency that we decide to convert into Token Stellar, is converted and can be sent to the person we want. Without any institution of credit means: all performed by Stellar!

But that's not all, the Stellar Lumens (XLM) Token is listed on CoinMarketCap, has its value, and is tradable on a multitude of exchanges. Attention: CMC listing is not a guarantee since even Firstcoin, Swisscoin and other strange project (like Bizzcoin) have been listed or they are still listed on it.

  • Obviously, there are no Rewards originating from purchases (the Cashbacks) but we keep in mind that to register we have not committed any money and even less there are users of series A and series B ...

In addition, with Stellar you can stake…, the percentages are not very high but it is always better than a bank account or having money stalled!

So, going back a step, don't you notice a certain similarity in the two projects?

Well this is to draw your attention to the fact that novelties are not always really novelties and that these types of projects do not always bring with them the much vaunted profits.

Rather.

When projects forecast astonishing gains, it is precisely at that moment that we must begin to be suspicious: a high return underlies a very high risk and this when investments are real investments and not of dubious origin. When your friend suggests you a referral link and a strange “innovative” business, maybe, you are not even looking at an investment and is just a fraud in a nice package.

These types of projects should be totally erased from the face of the Earth because they do nothing but create confusion in a world still in a green age with the risk of creating insecurity and fear in people.

Of course, crypto is a new world and for this reason populated by questions and answers that are not always exhaustive, but it is a prerogative of all the news to have a part of the imponderable.

For this reason it must be lived with due caution in order not to be in bad waters.

We pay the utmost attention to the projects that are proposed to us, we try, as far as possible, to evaluate them without the person who illustrated it being able to aberrate our critical evaluation power; and above all we try to seek advice from experts in the sector.

Clearly they will not be able to help us understand those people who have recently approached this technology.

In order to lure as many people as possible these projects, sometimes of dubious seriousness, are based on numbers for their own sake and not on actual returns based on percentages.

Obviously they are invention numbers, but to make you understand that a solid project brings percentages as returns and not the amounts of returns.

 


MikeZillo
MikeZillo

Daily Trader, Mining Farm Project Manager, Blockchain consultant, Cryptocurrency evangelist. You can find more videos here https://www.youtube.com/channel/UCvyXx6I1C__zmLAYUXNZwQQ?


Blockchain Insights
Blockchain Insights

Working as a consultant for Blockchain projects, an operative experience comes by itself. In this Blog I am share Blockchain applications, pros and cons, practical use cases I got in touch with. Of course, a good understanding of the topic will be provided with dedicated contents

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