
  ## The red flags of a fraudulent crypto project
  It's no secret that the world of cryptocurrency is full of scams. New projects are announced daily, and it can be difficult to tell which ones are legitimate and which are not. This article will discuss some of the red flags to look for when investing in a cryptocurrency project. By knowing what to look for, you can avoid being scammed by fraudulent schemes and losing your hard-earned money.
  
  ##Ponzi schemes
  The first and most widespread crypto scam revolves around Ponzi schemes.
  What are Ponzi schemes and how do they work in crypto?
  A Ponzi scheme is a fraudulent investment operation which generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profits. In simple words, no value is created.
  
  This type of scheme is named after Charles Ponzi, who became infamous for using the technique in the early 1920s. Also known as pyramid schemes, Ponzi schemes have been around for centuries, and they're still going strong in the digital age.
  
  In the cryptocurrency world, there have been several high-profile cases of Ponzi schemes, most notably with Bitconnect and OneCoin. These schemes work by convincing investors that they will be able to make a profit by selling their NFTs to other investors down the line. However, as there is no real value being created within the system, eventually the scheme will collapse when there are not enough new investors to keep it going. This can often lead to heavy financial losses for those who have invested in the scheme.
  Ponzi schemes in P2E games 
  One of the major features of many P2E games is that they require players to purchase NFT in order to enter the game. This is often done through a process known as "skinning", in which players must purchase an NFT for a specific amount in order to change their character's appearance or gain access to specific items. While this concept may seem relatively harmless at first, it can quickly become problematic for players who later choose to sell their NFT. Because most P2E games do not allow their NFTs to be used outside of the game, these assets inevitably lose much of their value after being sold, meaning that many players end up losing money when they enter into these types of games. 
  
  Axie Infinity is an example of a Ponzi scheme, a classic investment fraud in which early investors are paid with the funds provided by later investors. This type of scheme typically appears to be legitimate on the surface but relies on unsustainable and unethical practices in order to keep it afloat. Axie Infinity claims that players can buy and sell creatures called axies, earning them valuable rewards in the process. However, some players have raised concerns over possible false promises of future payouts and unrealistic growth projections for their in-game assets. In addition, there are indications that Axie Infinity may not actually own most of the axies featured on its platform, suggesting that the game may be built on a house of cards that could collapse at any time. Thus, while some may be initially drawn to Axie Infinity as a seeming investment opportunity, it is important to proceed with caution and do thorough research before participating in this potentially risky venture.
  
  The $625 million hack on Axie Infinity's Ronin Bridge was the final straw for many players, who had already been struggling with huge debts from playing the game. According to a new report, thousands of players - many of them from the Philippines - were facing financial ruin from their addiction to Axie Infinity.
  
  In this report Time interviewed more than a dozen Filipino Axie players who have had their lives indirectly or directly impacted by the game. According to the interviews, many of these individuals were introduced to playing Axie through friends with promises that they would earn significantly more money playing this game as compared to their day jobs. For some, this offer held true; However, eventually, Axie's unsustainable (and even Ponzi-like) business model caught up with them-resulting in greater losses than what they had originally made while playing.
  
  However, it is important to note that not all P2E games suffer from this issue. Several factors can contribute to value fluctuations for NFTs, including supply and demand, gameplay mechanics, and the overall quality of the game itself. Therefore, investors must understand these factors and do their research before deciding whether or not to invest in a P2E game.
  
  ## How to identify a Ponzi scheme?
  Ponzi schemes are notoriously difficult to spot, but there are a few red flags that you can look out for.
  
  First, beware of any crypto investment that promises guaranteed or unusually high returns. While sometimes it can actually be true, most of these projects are some sort of a Ponzi scheme.
  
  Second, be skeptical of investments that require you to recruit new members in order to earn a commission. As shown above, this is exactly how these schemes operate.
  
  Finally, watch out for sudden changes in the terms of an investment, such as a sudden drop in the rate of return. If you see any of these warning signs, it's best to steer clear of the investment in this project altogether.
  ## 'Visionless' projects 
  Another red flag of a scammy crypto project is the absence of a clear detailed vision.
  
  Visionless short-term projects are those that lack a clear and defined goal, and as a result, lack any real lasting value. These sorts of projects are often undertaken with the sole aim of generating hype or publicity, rather than delivering anything of substance.
  
  Events and activities associated with these projects are often poorly planned and lack any real purpose or meaning. As a result, they tend to be quickly forgotten and have little impact on those who experience them. Also, there could be no events at all. In contrast, well-designed and legit crypto events can have a lasting impact on individuals and communities, leaving a positive legacy long after the event itself has ended.
  
  As for the P2E games, they should be first and foremost about the game itself. After all, if a game isn't fun or engaging, there's really no point in using it as a vehicle for promoting a given crypto project. 
  
  Many people have had this experience with Axie Infinity, a popular P2E gaming platform. Despite its sizable community and popularity among gamers, Axie Infinity has been widely criticized for being boring and lacking any real updates to keep players engaged. The frequent complaints from players about the lack of social features or new content on the platform illustrate how out of touch with the gaming community the team behind Axie Infinity truly is. 
  
  If P2E games are meant to be about bringing blockchain technology to a wider audience, then they must find ways to make their games as captivating and enjoyable as possible. Otherwise, they risk alienating their users and failing at their primary mission. P2E games should be first and foremost about creating great games - only after that should they turn to promoting blockchain projects. After all, no game means no vision. And without vision, there can be no long-term success.
  How to spot a 'Predatory' business model?  
  There are a few hallmarks of a predatory business model, and if you're aware of them you can often spot them before you get caught up in one.
  
  The goal is to keep you hooked so they can milk you for as much money as possible. Eventually, though, the company will start cutting corners. They'll skimp on customer service, or they'll stop updating their product. This is usually when frustration sets in, and people finally give up and quit. If you're aware of these signs, you can avoid getting sucked into a crypto project with a predatory business model.
  
  Many people consider pay-to-win (P2W) the most predatory business model for crypto games. It creates incentives for players to spend money to receive emotional rewards, often exploiting neurological mechanisms such as dopamine release that can create an unhealthy addiction. If a game is fundamentally based on rewarding players monetarily for their playing effort or setting up artificial barriers that require cryptocurrency investments to overcome, then it can be considered predatory.
  
  
  One recent example of this type of game is Diablo Infinite. The release of this game was met with hostility from the gaming community, who questioned whether it could truly be considered a video game given its extreme emphasis on P2W elements and its near-total lack of gameplay complexity. To many gamers, the reward system inherent in P2W games is simply not sustainable and represents an insidious attempt to exploit players' psychological vulnerabilities for profit. 
  
  Indeed, we often hear stories about how early adopters of bitcoin were able to attain massive profits simply by recognizing and investing in this disruptive technology at its very beginnings. This is why investors in P2E crypto games should prioritize long-term vision over short-term gain when making investment decisions. 
  ## Anonymous team
  When it comes to crypto projects, one of the most important factors is the team behind them.
  
  ### Why should the team be public?
  An anonymous team is simply one that is not publicly known or identified, and this means that there is no accountability or transparency when it comes to the inner workings of the project. An anonymous team is often a red flag, as it can be difficult to build trust with investors when there is no way to verify the qualifications or experience of the team members. As a result, a well-qualified team rarely remains anonymous. Unless it's Bitcoin 😉
  
  A public team, on the other hand, allows potential investors to see who is involved in the project and what their experience is. This can help to build trust and confidence in the project, both of which are essential for attracting investment. In addition, a public team can also provide more transparency when it comes to decision-making and progress updates. Even attaching someone with a public image and name is proof of the project’s commitment and accountability which is always a pretty good signal for investors.
  
  As a result, a crypto project with a public team is much more likely to be successful than one with an anonymous team.
  What's the danger of an anonymous team?
  An anonymous team is a major risk factor in any crypto project, as it greatly increases the likelihood of an exit scam. Not only does this leave investors vulnerable to malicious actors who might be looking to take advantage of them, but it also raises significant governance concerns for the entire community.
  
  For example, an anonymous team can easily conceal any issues within a project, misleading investors and preventing them from making informed decisions about their investments. In addition, these teams can also quietly shut down operations during a crisis without facing any repercussions. This kind of behavior leads many people to mistrust projects with anonymous teams and view them as potential exit scams. As such, anyone considering investing in a project with an anonymous team should think twice before doing so and consider whether the risks outweigh the potential rewards. 
  ## Weak tokenomic
  What is tokenomic?  
  Tokenomic is a term composed of 'token' and 'economics'. Oversimplified, it's a set of all things that make a crypto project valuable.
  
  This term is also used to describe systems that utilize unique tokens or coins as an integral part of their functional design. These tokens can be used in many ways, from granting access to certain services or resources, to providing incentives for certain behaviors or actions. By creating a system in which each token has its own set of rules and functions, developers can create more complex, flexible ecosystems that can adapt and evolve over time. The versatility of tokens allows them to serve many different purposes, making them an essential tool in creating sustainable and scalable tokenomics.
  When the tokenomic is weak?
  In weak tokenomic systems, the price of a given token is driven primarily by hype. This means that gains in the price of an individual token are often the result of rumors or speculation about the future performance of the token in question. Or a tweet from Elon Musk.
  
  Because of this, these kinds of tokenomics are often referred to as "pump and dump" mechanisms, since they create wild fluctuations in prices and can sometimes lead to market panic when everyone attempts to sell off their tokens at once.
  
  A project with weak tokenomic also has the potential to create instability in crypto markets and can be extremely risky for inexperienced investors. One notable example of this phenomenon is the altcoin Terra, which launched with a well-thought-out tokenomic system designed to elicit greater engagement from users. By incentivizing both merchants and consumers to transact using the platform's native Terra coin, Terra was able to establish strong network effects from its very inception. As a result, it quickly became one of the leading cryptocurrencies on CoinMarketCap, despite having an extremely small marketing budget compared to other projects in the space. Even so, Terra's impressive early success highlights how crucial sound tokenomic design is for creating sustainable value in crypto markets.
  
  
  Therefore, it is important for anyone considering investing in one of these tokens or P2E games to do thorough research about the tokenomic ecosystem of the project. 
  
  In the next articles of this series, we will cover the signals to look for in whitepapers about strong and sane tokenomic in a crypto project. 
  What is DAO and why do serious crypto projects need one?
  DAO, or decentralized autonomous organizations, are innovative structures that make it easier for crypto projects to scale, distribute, and manage financial activity.
  
  Apart from fair and balanced governance, one of the key benefits of a DAO is that it gives developers more control over the token emission rate and the overall economics of the platform. In other words, a good DAO can help to "deflate" the token supply as needed, in order to limit market volatility and ensure a sustainable balance between supply and demand.
  
  Furthermore, this mechanism can also be used to address issues like network spam or attacks on the system by triggering automatic smart contract actions. Nowadays, it is clear that any crypto project hoping to succeed needs to have a functioning DAO in place.
  Conclusion
  As shown above, there are several risks associated with investing in sketchy crypto Ponzi schemes that lack a clear vision, have weak tokenomics or have anonymous teams. In this article, we've talked about the red flags that may help you to spot one of those schemes. However, despite these risks, these projects continue to attract attention from a wider public due to the potential for quick profits.
  
  ## Conclusion
  So what should you do if you’re thinking about investing in one of these projects? First and foremost, it is important to do your own research into the team behind the project and the underlying technology. Secondly, always remember that high returns come with high risk – if something sounds too good to be true, it probably is. Finally, don’t invest more than you can afford to lose and diversify your portfolio as much as possible. By following these simple tips, you can help protect yourself from scams and fraudulent projects while still taking advantage of exciting new investment opportunities in the crypto world.
  

It's no secret that the world of cryptocurrency is full of scams

Red flags, you've been warned


  ## The Web3 industry is mostly full of useless features

  If you're like most people, you're probably feeling a little overwhelmed by the number of new Web3 projects and products out there. It seems like every day there's a new DApp, P2E blockchain game, or NFT project to learn about, and it can be hard to know which ones are worth your time. In this blog post, we're going to talk about some of the features of Web3 that I think are useless, and why you should avoid them. When we're done, you'll have a better understanding of what to look for in a Web3 project, so you can make sure you're not wasting your time on something that's not going to amount to anything.
  
  ## What happened to the dream of the Metaverse?
  Most people would know that the idea of a Metaverse was first conceptualized in Neal Stephenson's 1992 science fiction novel Snow Crash. In his book, Stephenson describes a virtual world that is like the internet as we know it, but with one key difference: users are represented by avatars and can interact with each other in a three-dimensional space. 
  What many people don't know is that the Internet as we know it, Web 2.0, was based on the ideals of a handful of techno-libertarians who, in their creation of the first iteration of the Web, the read-only Web 1.0, wanted to create a decentralized, open and borderless space where people could interact with each other without interference from governments or corporations. Web pioneer Tim Berners-Lee even wrote a short paper in 1998 in which he described his motives in creating the Internet: "the dream behind the Web is of a common information space in which we communicate by sharing information." 
  
  ## So, what happened to this dream of a decentralized, open Web? 
  The problem is that the Web as it exists today is far from being decentralized or open
  In fact, it's quite the opposite. Most of the Web is controlled by a handful of powerful corporations, like Google, Facebook, and Amazon. These companies have near-monopolies on many aspects of the Web, and they use their power to control what we see and do online. They sell our data to the highest bidder, censor our content, and manipulate us for their own profit. The Metaverse was supposed to be a shared virtual space where people could meet, interact, and do business free from the constraints of mega-corporations, but Web 
  The Web we have today is the product of these corporations, not of the idealists who first created it.
  In the years since Snow Crash was published, many people have tried to create their own versions of the Metaverse, but so far none of them have been particularly successful. 
  
  ## The three biggest problems with Web3
  
  ### The metaverse is just a gigantic VR chat
  It's not really that revolutionary - we've had VR chatrooms for years. Web-based VR is nothing new, and while it's cool that you can now explore these spaces with other people, it doesn't really change the fact that they're just chatrooms. A metaverse does not need VR and VR should not be a hyped feature for any metaverse. It's not world-changing technology, every time you see project hype based on VR as a main feature, you should be twice aware.
  
  ### Facebook Metaverse is more like a Second Life reboot than anything
  Second Life was one of the first attempts at creating a virtual world that was based on the Web, and it was pretty successful for a time. However, it eventually fizzled out, due in part to its lack of innovation. Facebook Metaverse is basically just a Second Life reboot, and while the world shape changed a lot with a lot more of our life being digitalized, I don't see people invest passion into shaping this "alternate reality".  People don't want to spend their time in a virtual world that's just a copy of the real world, they want something new and different.
  
  ### Players are treated like consumers
  Blockchain gaming was meant to be a way to subvert the traditional game industry, which is notoriously exploitative of its players. However, the P2E games of today are just as bad, if not worse and the crypto gaming has a terrible reputation among gamers. In these games, players are treated like consumers, with a focus on monetization. There's no room for fun, creativity or exploration (except some rare exemples), and the games are more like casinos than anything else. And all of this is hidden by giving players ownership of what amounts to useless assets.
  
  
  
  ## Ardaria is a true virtual world
  Ardaria is a new take on the MMO genre, blending classic gameplay with cutting-edge technology. Our goal is to create a living, breathing world that is owned and governed by the players. With Ardaria, there is no pay-to-win: all in-game items can be traded or sold on the open market, and revenue is shared with the players who help to keep the economy running. We believe that this model will create a more stable, fair, and fun game world for everyone involved. So come join us on this journey into the unknown and help us build something truly special.  
  

The Web3 industry is mostly full of useless features. Here's why.

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