This will be the first of four lessons talking about how you can spot a project that's a scam. With the craziness in the Crypto market right now, I think every newbie needs this lesson. We are in a bull run right now, that already is settled but one of the side effects of a bull run is that people begin to buy into any project they think will make them crazy returns. That should never be so for you, if you're looking to invest, there are four things you should always look for before investing your money into any project.
When you invest in the wrong project you lose crazy money. Just yesterday, a project called Hot dog was valued at $4,000 and out of the blues they dropped to $1. Crazy things like this are things we see and come across everyday on the Crypto sphere. Adequate research would have told you not to go anywhere close to this, and it would have showed that the risk going into something like this was just too great. I will discuss the four tips in four different lessons so that I get the chance to fully talk about them. So straight into it, let's begin.
The first thing to always look out for in a project is the Technology. Every Crypto project should have a technology that it uses to solve a real world problem. The most basic aim of Crypto and Blockchain is to provide an alternative to the real world technology we already have which has not favoured us well. So any project without a technology is one you should run away from. They are basically just a Ponzi or pyramid scheme and not a Blockchain project. Those are the kind of projects that just pack up and leave when they are done taking investors money.
It is worthy of note here that you don't only look for a new technology, it might be an old technology but there should be something new the project adds to it to make it unique. An example of a project with a technology I love is Emanate Music. They are rewarding creatives through the power of Music. Their technology is not a new one, but they take a part of what's broken by the centralised guys and rework it to make it better. They saw a problem that artists were not paid as fast as they wanted, and that artists didn't have a say in the way Music streaming platforms ran their activities. So Emanate made payment very fast, artists get paid in just 6 seconds there. They also gave artists a voice on their platform, so they artists are consulted before decisions are taken most times. Add that to the added benefit of being built on a Blockchain, and you have a killer product. The Music technology is one that will always be in vogue so this is a project I'm sure will be here for the long run, and will keep growing.
They truly are doing big things I must say, and with a technology like that I am most definitely not surprised. I expect more and more big things from them too. That's basically how to research into the technology of a Blockchain project, find out what problem it seeks to solve and you will know whether it is a worthy one or not. I will be coming up with the part 2 of this soon, so watch out for that soon my friends.