Apr 04, 2021

To Buy, Or Scam But Buy Anyway?

While we normally advise everyone to stay away from fishy crypto projects, a bull market creates opportunties to leverage this fishiness for financial gain. And we are not talking about anything illegal.

A bull market means new tokens are being launched on a daily basis. Some of them attempt to project as much legitimacy as possible by virtue of partnerships with bigger players, multiple audits etc. But a lot are stuck in a grey area, with potential buyers stuck between hope of exponential growth and fear of being scammed.

The most perplexing new tokens are those with a great idea, but inept communication due to low funds, poor english skills, weak strategy or a combination of those. This is indeed a quandary - is the idea and the communication a semi-elaborate scam scheme, or is it just a team more focused on the idea than its wrapping?

Some of these perplexing tokens have produced inordinate returns for early investors, e.g. BSCPad or more recently PancakeTools. Some of them turned out to indeed be scams.

So whenever you see such a perplexing IDO, take a minute to think. Do you prefer to leave it be or do you want to risk a small amount of money for feast or famine. In a bull market, this is sometimes no easy choice.