Arbitrum

Optimism

<p>The cryptocurrency sphere is abuzz with worries, particularly surrounding the actions of Optimism and Arbitrum in “treasury management.” These entities are making significant, unilateral decisions, leading many to question whether the majority of crypto projects are genuinely valuable or merely schemes designed to enrich the founders. </p> 
<p>Marsangelo, a crypto analyst, <a href="https://www.reddit.com/r/CryptoCurrency/comments/16o3q3e/optimism_has_sold_116m_op_tokens_for_treasury/?share_id=l3LjZqCQRbrfaKX8elXb5&amp;utm_content=1&amp;utm_medium=android_app&amp;utm_name=androidcss&amp;utm_source=share&amp;utm_term=2" target="_blank" rel="noopener noreferrer nofollow">voiced</a> deep concerns regarding the actions and intentions of various crypto project founders. He suggests that a troubling majority of these projects appear to be meticulously crafted to primarily serve the financial interests of the founders, casting a shadow of doubt over the legitimacy and true purpose of numerous tokens and platforms within the crypto landscape.</p> 
<h4 class="wp-block-heading"><strong>Optimism’s Suspicious Sale</strong></h4> 
<p>Optimism recently sold 116 million OP tokens, claiming it was for “treasury management purposes.” This decision, made without community input, has raised eyebrows and sparked debates. It’s making people question whether many tokens are created with the community’s interest in mind or just to fill the founders’ pockets.</p> 
<h4 class="wp-block-heading"><strong>Arbitrum’s Unilateral Allocation</strong></h4> 
<p>Similarly, Arbitrum allocated 700 million to its treasury without involving its community, causing concerns about the dilution of voting power and potential impacts on token value. This move has intensified suspicions about the real motives behind such projects.</p> 
<h4 class="wp-block-heading"><strong>Treasury Management or Hidden Agendas?</strong></h4> 
<p>The term “treasury management” is seemingly being used to mask actions taken secretly and without community agreement. This trend is a red flag for potential investors, emphasizing the need to scrutinize the actual purpose and necessity of tokens before investing.</p> 
<h4 class="wp-block-heading"><strong>The Real Need for Tokens Questioned</strong></h4> 
<p>It appears that most Layer 2 solutions don’t inherently need a token. However, the creation of tokens seems to be a convenient strategy for companies to gather capital, lure in investors, or seemingly just to enrich the founders.</p> 
<h4 class="wp-block-heading"><strong>Conclusion: A Call for Caution and Critical Thinking</strong></h4> 
<p>The actions by Optimism and Arbitrum are glaring examples of why caution and critical thinking are essential in the cryptocurrency space. Those interested in crypto should closely examine the reasons behind token creations and sales and the implications of “treasury management.”</p> 
<p>In conclusion, these events serve as stark reminders to remain vigilant and to continually assess the transparency and intentions of crypto projects. It’s crucial to uphold the principles of decentralization and community involvement and to be wary of projects that seem to prioritize founder enrichment over genuine innovation and community value.</p> 
<div class="bigofferblock margincenter mb30 pt20 pl20 pr20 " style=""> 
 <div class="col_wrap_two mb0"> 
  <div class="offerbox_big_wrap flowhidden"> 
   <div class="image position-relative text-center col_item mobileblockdisplay img-maxh-350 img-width-auto"> <a class="re_track_btn" href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> <img decoding="async" class="lazyload" data-skip-lazy="" data-src="https://captainaltcoin.com/wp-content/uploads/thumbs_dir/etoro-ca-1-oyc386si1bdrmhrff7xex5ngu4zikfy3ei6bk0rbb6.png" width="500" alt="We recommend eToro" src="https://captainaltcoin.com/wp-content/themes/rehub-theme/images/default/blank.gif"> </a> 
   </div> 
   <div class="product-summary col_item mobileblockdisplay"> 
    <h3 class="product_title entry-title font150 lineheight25 mb30" id="a-class-re_track_btn-href-https-captainaltcoin-com-go-etoro-target-_blank-rel-noopener-noreferrer-nofollow-span-we-recommend-etoro-span-a"> <a class="re_track_btn" href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> <span>We recommend eToro</span> </a> </h3> 
    <div class="rev_disclaimer font70 greencolor lineheight15 mb20"> <strong>74% of retail CFD accounts lose money.</strong> 
    </div> 
    <div class="buttons_col mb25 rh_big_btn_inline"> 
     <div class="priced_block clearfix"> 
      <div> <a class="re_track_btn btn_offer_block" href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> Visit eToro Now </a> 
      </div> 
     </div> 
    </div> 
    <div class="bigofferdesc"> <i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Active user community and social features like news feeds, chats for specific coins available for trading. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>Copy trading: allows users to copy the trades of leading traders, for free. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate. 
     <br><i class="vertmiddle mr10 rhicon rhi-check-circle-solid greencolor font130"> </i>eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc. 
    </div> 
   </div> 
  </div> 
 </div> 
</div> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/analyst-reveals-uncomfortable-truth-about-majority-of-crypto-projects-they-are-created-to-enrich-founders/">Analyst Reveals Uncomfortable Truth About Majority of Crypto Projects: They Are Created to Enrich Founders</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Analyst Reveals Uncomfortable Truth About Majority of Crypto Projects: They Are Created to Enrich Founders

Table of Contents

CaptainAltcoin

Other articles published on Sep 21, 2023

Tether resumes lending after promise to reduce it to zero

Shibarium Achieves New High, Ripple CEO Takes Photo Outside SEC Building, Arthur Hayes Hints at C...

Binance Engages in MiCA Discussion with EBA

U.S House Committee Passes CBDC Development Restriction Bill

FriendTech Surpasses ETH NFTs in Volume, but Is the App Built to Last or Destined to Crash? Exper...

Analysts bullish on Cardano, TRON, and Kangamoon

Join our free newsletter for daily crypto updates!