Realizing Most of Crypto is Just a Scam

Don’t get me wrong. I still believe in the technology and nothing wrong with the YOLO philosophy (You Only Live Once). In fact, I still strongly believe the tech is revolutionary and it will change the way we transfer value online which is using trustless networks.

Nothing wrong with believing that innovation and new technology can make you rich. In fact, Amazon, Apple, Facebook and Google are the best inspirations of what innovation can develop into. It’s just that with the crypto industry which directly deals with money and markets, 95% of it is just straight out ponzi schemes.

According to MuststopMurad, a typical crypto ponzi scam starts at the extremely inflated altcoin valuations at exchange listing time. All insiders get to buy the tokens with huge discounts, many can also get for free. I’ve seen this scheme countless times before but only now that I fully understood it.

Retail buyers are the target exit liquidity for all these early investors - including the dumb hodlers. Price appreciation is done in the private rounds of selling and then at exchange listing time, the market makers makes sure the price goes very high - making the token 1,000 times more overvalued.

For years, Crypto was and always is speculation first and then tech second. YOU ARE VERY LUCKY if you get to hold on to a coin that actually appreciates in value. I only know of three coins that are obviously good long term investments: Bitcoin, Ethereum and Binancecoin.

So, don’t get disappointed that a coin you hodled throughout the years is zero value now. Because most of them will die. You are lucky in a sense you didn’t actually put up capital.

Just be careful next time, even legit projects die.

Wow! What a complicated and intelligent way to say, "it's a crypto scam through and through." pic.twitter.com/6xGbOC1PCu

— #CarabaoRun2024 (@drei4u) October 7, 2024