Newbies entering the crypto space, come quickly and take a look!
Those who have been in the crypto space for a while have developed their own screening experiences, knowing which projects are reliable, which to be cautious of, and which to observe. However, newcomers often find it hard to start. It's not that these veterans are exceptionally skilled, but rather that they have had more experience being scammed. So why do they keep getting scammed? Here are a few summarized points.
1. Complex technology, lack of transparency: Web3 involves complex technologies like blockchain and smart contracts, which ordinary users find difficult to understand. Scammers use technical jargon to deceive, such as fabricating fake blockchain projects to steal money. Although blockchain networks are public, critical information like the real background of projects and the strength of teams is hard for users to verify, allowing scammers to hide the truth and spread false information to mislead investors.
2. Regulatory difficulties, imperfect laws: Web3 is decentralized and anonymous, can cross borders, and operates 24/7. Transactions and activities are hard to regulate from a single location, and scammers exploit this loophole to commit fraud in different regions while evading legal consequences. Moreover, laws regarding Web3 are still being developed, and some new fraudulent methods are hard to define, leading scammers to believe that even if they are discovered, they won't face severe penalties.
3. Market speculation, user mentality: The Web3 market is new, and many people want to make quick money. This speculative mindset makes investors easily attracted to promises of high returns while ignoring risks. Scammers use promises of extremely high returns as bait. Additionally, with many new opportunities in Web3, users are often afraid of missing out and participate without fully understanding the situation, giving scammers an opportunity.
4. Early industry stage, difficult project evaluation: Web3 is still in its early development phase, with many projects lacking a mature business model and stable technology. Some projects are merely shell companies for scammers to raise money, lacking actual value and prospects. At the same time, Web3 projects are highly innovative and unique, making it difficult for investors to assess their worth or feasibility using traditional methods, allowing scammers to package low-quality projects to defraud.