Hey there,
I am a blockchain developer and most of my work consists in auditing Blockchain projects, criticising their use-case and proposing solutions and guidances.
What really kills me is the amount of scams and useless projects based on economic scarcity, fomo and proof of stupidity (
https://www.youtube.com/watch?v=p1ZYGuJXBQE)
The reasons why we have to fight scams are fairly simple:
- Scams attract regulators
- More scams attract more scammers
- People invest blindly but if given the change to understand a project based on a professional analysis I'm sure many will think twice between sending those guys money.
- You know what is worse than exit scams? Shell projects that never get finished or have no traffic because their use case is pure BS.
I propose listing all the ICO scams here that can't correctly justify their use case, presumably scams:
* EQUI
https://bitcointalk.org/index.php?topic=2888110.0The guys weren't able to justify the use of their token and don't answer to critics and questions. More importantly they provide a passive return on investment which fails the Howey test (
http://consumer.findlaw.com/securities-law/what-is-the-howey-test.html). They use their public image in order to attract suckers. Based on their use of proceeds they reserve 30% in order to develop the platform. 30% of 72 million to develop a react website with a postgres database and link it to infura (i assume they didn't even think about that). Laughable at best.
Now that's a good post. I think investors need to do their homework and only then invest. Lot of people are interested and blinded by greed to make x2 to x10 times of their money invested in ICOs and they simply forget about scammers and how they operate.