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Are these the risks of cryptocurrency projects inspired by hype? What are the risks associated with cryptocurrency projects inspired by hype? BlockDAG offers a promising investment avenue, but it is crucial to recognize the risks linked to investing in cryptocurrency projects inspired by hype. A large number of projects, particularly those that spring from hackathons, may attract attention but also pose considerable risks, which include:
Scams and Fraud: The hype surrounding hackathons can attract fraudulent projects that suggest high returns with little backing. Investors should be on guard against fake platforms and scams.
Volatility and Liquidity Issues: New tokens often experience rapid price fluctuations and may lack liquidity, complicating the sale without incurring significant losses.
Lack of Regulatory Oversight: Several cryptocurrency projects operate within a regulatory gray area, intensifying the risk of fraud and theft, leaving little room for recovering lost funds.
Uncertainty about the Utility and Value of the Token: Tokens from hype-driven projects may lack real-world utility, which can lead to total loss of investment.
Investors are advised to conduct thorough research and exercise caution to evade catastrophic financial losses.
I want to show you the harsh reality I started with my knowledge 📈
then I began to follow signals by reading on SQUARE and it resulted in this misfortune I got confident 📉, I realized that those who really know don't help out of selfishness and the other a lot of false publications predicting the wrong things but on purpose market mechanism
today I will start and as always I will continue studying and optimistic