Take stock of some typical harvesting tactics often encountered in the cryptocurrency space
1️⃣ How do they 'suck in money'?
You can think of it as a 'fund pool with a gaming mechanism.'
- The project party creates a token (similar to a public company issuing stocks) and says: 'You buy, and I'll give you high returns.'
- To get this system running, they design various mechanisms, such as:
- Earning returns through staking
- Earning fees by providing liquidity (DeFi)
- Issuing NFTs, conducting airdrops, creating games, launching new coins, etc.
→ Attracting you to invest money, and then the money starts to flow between different people.
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2️⃣ Who is most likely to make money?
In simple terms: the earlier you enter, the more likely you are to make money; the later you come in, the more likely you are to lose money.
- Many shell projects in the crypto space are actually 'variants of funding schemes':
- Early entrants buy tokens at a low price, and once a large number of ordinary people flood in, they sell at a high price.
- When the hype dies down, the project party 'runs away,' and ordinary people lose a lot.
→ The retail investors are always the last to be hit.
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3️⃣ How are ordinary people 'harvested'?
Because they fundamentally do not understand the rules and just hear others say 'this coin will rise,' they rush in.
- Many people do not understand how the projects operate and jump in after seeing friends make money.
- But the essence of the project is actually very complex: mechanism design, code vulnerabilities, founders running away... all of these could cause your principal to evaporate.
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✅ One point similar to traditional finance:
This is a game of 'information + time difference.'
Whoever has the information and acts early has the chance to make money. Most ordinary people are just chasing news and trends, resulting in being harvested.
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⚠️ I think it is important to remind you:
Do not think that the three words 'blockchain' are necessarily safe or high-tech.
- Projects often package themselves with many fancy terms: 'Web3,' 'decentralized finance,' 'revolutionary protocols'...
- But these do not mean they have value or are safe — many are just rebranded funding games.
🧩 In conclusion:
The cryptocurrency space is not a shortcut to wealth, but a high-risk, high-complexity battleground. You either become a rule-maker or you have to be very careful not to get harvested.
