1. Inflating the marketing narrative around the “AI-backed hedge fund”
The Spectral project team heavily promoted the idea that $SPEC represents an AI-backed hedge fund, promising to create "smart agents" capable of trading independently. This marketing narrative caught the attention of investors, especially with the overall trend towards AI projects in the market.
2. Utilizing influencers (KOLs) for promotion
A number of cryptocurrency influencers were hired to promote the project, increasing the momentum around $SPEC. However, there was no tangible technical progress to support these claims, raising doubts among investors.
3. Lack of a tangible product or clear technical progress
Despite the big promises, no tangible product or technical progress was presented to justify the high valuation of the currency. This lack of transparency and progress led to a loss of trust among investors.
4. The collapse coincided with market highs
While many cryptocurrencies saw significant rises, $SPEC sharply declined, increasing frustration among investors and prompting them to reassess their investments.
5. Community and investor reactions
Many investors expressed their dissatisfaction with the team's performance and lost trust in the project, leading to a significant sell-off of the currency.
Conclusion
The collapse serves as an example of the importance of verifying technical fundamentals and transparency in projects, and not being misled by attractive marketing narratives. Investors are always advised to conduct their own research and ensure the credibility of projects before investing.
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