Salmonation

Writer : ahmads
The presence of blockchain promises security, transparency and ease of transactions without censorship. Decentralized finance (DeFi) created to run on blockchain makes it easy for anyone to access capital offerings.
This is used by developers, whether with good or bad intentions, to create tokens and then market them to investors through an army of influencers and shillers.
With the ultimate goal in the amount of investor funds collected, often the presence and absence of a real project is not a significant problem for most developers. Likewise, for token buyers who expect instant profits.
This phenomenon has become a concern for the CEO of the Binance cryptocurrency exchange, Changpeng Zhao (CZ). At the Korea Blockchain Week 2022 event yesterday, August 9, 2022, CZ reminded how the most ideal conditions for a web3 company or developer group in launching tokens.
According to CZ, a project should issue tokens not to raise initial funds, but to accelerate growth. In other words, use cases and careful planning of a project must be done first. At least, there is already a clear application.
“Web3 companies should issue tokens to accelerate growth, not to raise seed funds. When people log onto Web3 and want to develop an app, project or startup, they want to issue tokens immediately. I advise against it,” said CZ.
He also highlighted the issue of consistency of a project. According to him, developers should not easily change the direction of the use case. Because it will affect the views of investors. Easy changes in direction and use cases of a project can be a sign of poor planning.
“Once you issue a token, it has a specific use. Every time you change it, your token holder will be affected. Either positive or negative, usually negative. If you want to keep adding use cases, that's great. But if you want to change the use case, you get a lot of complaints from users,” said the CEO of Binance, the cryptocurrency exchange with the highest transaction volume in the world today.
It is undeniable that projectless crypto tokens can be found every day in the DeFi realm, be it on the Ethereum network, Binance chain, Cronos, and others. Anyone can easily create tokens. For example on Binance Smart Chain (bsc), a fee of less than 1 BNB (around IDR 4.6 million at the time of writing) is enough to print supply and inject a liquidity pool in the DEX application.
They appear intermittently, pump overnight and then disappear in the morning, or a few days after, due to rugpull by developers or investors selling simultaneously.
Maybe it's time for crypto enthusiasts to start thinking long term. Because the number of tokens that are scams in a day contributes to public distrust in crypto investments. So that the public will find it increasingly difficult to distinguish between a 'legitimate' project and a 'scam' project.

CZ Warning to Developers: Don't Launch Tokens if the Project Is Not Clear!

salmonation

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