Scams, rug pulls, shady ICO’s and Dapps, shitcoins pumping without any substantial news… This is literally 2017 all over again. And this is bad news.
Without mincing words, the current state of the cryptocurrency market is looking no different from what it was in late 2017, just before the bubble burst and people went back to their normal lives like crypto never existed.
There were shiny ICOs and whitepapers here and there and hundreds of tokens being released every day, sometimes on websites with fake photos of humans that exist nowhere. Sometimes outright lying about market cap or founder’s holdings.
Today, we’re living a reminiscence with many shit projects hitting under the umbrella of Defi, .Finance domain websites, and practically no live product. Don’t get me wrong, I like and do DeFi, but there are just so many scams out there and new investors will get burned when all of this euphoria ends.
If you weren’t there when Uniswap launched, at least 20 coins launched soon after, trying to capitalize on Uni’s name and branding. Same with airdrops. Unidark, UniswapX, Unicorn, Swapuni and Unifund. Most of these aren’t around anymore, and they made a lot of people lose a bunch of money.
It’s not because you see a project on Coingecko or Coinmarketcap that it means the project is safe
It doesn’t mean that any of the information is verified either. It’s not because you can see the transactions on Etherscan that it means the project is legit. For the past few days, we hear a lot about Safemoon. It didn’t take long for scammers to grasp this shiny opportunity. How about Safemars? Safestar? And many, many more. Maybe if you flip it quick enough you might get lucky, maybe you won’t be left holding the bag. But there is a very real possibility you could end up losing most, if not all of your investment.
I could wake up one morning, and decide to make my own website, launch my own ERC-20 token. You can even hire people on Fiverr to do all this work for you, for a very cheap price.
Greed is a sin
These coins expose the worst aspect of human nature, greed. They shill these shitcoins everywhere because the earlier investors want to dump it on the next fool. Morals don’t seem to matter anymore, they all want the next ”100x” and they’ll do anything to make it happen.
If you’re a new investor, it would be best to stay out of these trash coins or protect any profits you’ve made so far. Ask anyone who lived in the 2017 ICO era, and maybe their stories will make you wise up. Just look up Bitconnect.
The longer this trend continues, the harder the fall will be and the closer we’ll be to a looming crypto bear market. When you see people putting billions of dollars in projects with no intrinsic value, just because it’s being shilled on Reddit or Youtube, it makes you wonder if it’s the end of this bull run.
The Elon example
Take Elon Musk for example. He’s one of the richest guys on the planet using crypto to increase his already ludicrous wealth… all of this while trying to manipulate prices almost on a daily basis.
He’s creating a Doge bubble so big that when it pops (and it will!) so many investors will lose so big that we will see a very long and painful bear market. Cryptocurrencies will become even more regulated than they already are.
Doge is up 385% in 14 days, and no one has a clue why. Safemoon is being shilled left and right but has no use-cases. Bitcoin is losing market dominance day after day. This is not good news. For me, it is a signal that the end of this bull run is looming closer. Meanwhile, Safemoon is down 70% for the day. Has the rug been pulled? I wouldn’t be surprised to see noobs flocking to “buy the dip”.