Polkadot (DOT) Manager Warning Against The Popular Cryptocurrency Trend!
The bull season, which has reached the madness of the crypto money market now, has also enabled the old concepts to emerge as new. At the top of these, there are definitely IDOs. IDOs, which are interpreted as the indexed version of ICOs to 2021, have recently opened the door to many similar projects and to break records.
Risks of Launchpad Projects Increase
Polkastarter (POLS), Kickpad (KPAD), Paid Network (PAID) and many other projects give users the opportunity to make core investments , especially in new projects based on the Polkadot network. Dozens of these types of cryptocurrencies are released every week, and this increases the value of platform cryptocurrencies such as PAID, KPAD and POLS.
The main reason crypto money investors are interested in these projects is that there is an average of 50 times difference between their first sale price and their prices at the time of their launch. This enables every investor to see these crypto money projects as a national lottery. Dan Reecer, one of the important names of Polkadot and Kusama networks, shared a harsh warning about the issue.
“They Advertise with the Name of Polkadot”
Dan Reecer, one of the former developers and managers of Polkadot, emphasized that attention should be paid to the projects that achieve this by using the name Polkadot. Stating that the ICOs and IDOs related to Polkadot are nonsense right now, Reecer emphasized that the aim is to benefit from the Polkadot brand.
Noting that the only purpose of these projects is to get the money of the investors, the famous name emphasized that teams should be expected especially with real projects. Reecer stated that it is a huge risk to approach them with the “all of them go up 100 times” perspective, despite not being sure about the team behind the project, and invited investors to be careful.
Fraudulent Model in Token Sales
Another user who responded to the post highlighted that most of them have a 1% share of the overall sale to the public in the token distribution model. Emphasizing that this is usually the right given to those who advertise the project on Twitter, the follower emphasized that those who want to participate cannot get a share from it.
Although some projects such as Polkastarter use the Polkadot network, the fact that they are based on the Ethereum network actually reveals and reveals the situation clearly.