Price is the alpha, not utility.
Take a look at the picture in this post and tell me what you see. This is a price price comparison, but you won't believe that the two prices you're seeing are not from different project. Yes, you are correct. This coin went from $7 to $0.4, and it did not happen over a year, but rather in 24 hours.
Now this project is called MantraChain founded by JP maulin. It is a supposed Layer 1 project for real-world assets. They gained attention by launching and creating a task-for-airdrop campaign; honestly, I do not see much utility in this project claiming to be a layer one, but who cares?
So, when this coin launched, it was claimed that the founder refused to reward the users who tested the chain, and after initially airdopping the users who tested the chain, they came up with a different tokenomics from the one before they launched, and then they did a sort of sybill-test, allegedly making 80% of the initial testers who were eligible for the airdop ineligible.
Apparently, the founder did not appear to be a stand-up guy, and he was said to own 90% of the token supply. Honestly, this was already a red flag. A Crypto project cannot have the founder holding 90% of the supply, even if the person was too trustworthy.
So, with this guy's lack of trustworthiness and other factors, many people saw this project as a red flag and refused to be associated with it, but guess what happened?
The coin pumped to 7$
Apparently, these guys did some kind of price manipulation on the coin, and it pumped like crazy. So they kept 90% and gave the testers less than 1%. So, because they did not reward more than 80% of the testers who brought marketing to the project, fewer people actually held the coin.
So the only option to get this coin was to buy from the exchanges. The founders knew that if they artificially pump the price, it'll make people FOMO and this is what they did exactly.
They pumped the price like no man's land and people began to FOMO now the project went from a red-flag project to the next big thing after slice bread. Now people began jumping in and buying the coin like crazy, fearing that the coin might do 20$ and they'll have missed out.
Now everyone forgot the 90% held by the founder and started bull posting. Now the founder was a smart guy. He had a group of Influencers that was bull posting him.
Apparently these guys must be on his payroll. They got Binance to list their coin and had a lot of influencers shilling them like crazy. This even made the TL more bullish on this $OM.
fast-forward to yesterday we saw large volumes being moved to the exchanges and the coin dump to $0.4 and Twitter went crazy.
No one cares of utility when price is pumping
Apparently this guy took advantage of the fact that people don't care about red flags, utility or do their research, people just want to hop in on FOMO and make money.
Influencers are the rot in crypto
Perhaps if we can get ride of their influencing, people will want to do their research. Take a look at Hive for example, we've never made any progress with influencer's shilling. These guys only go where they can get paid.
They are mercenaries, and we all know that mercenaries are not loyal. They can literally market scams to people if they are paid. Most people on Hive understand this, which is why they begin chasing these influencers away.
Unless an influencers is homegrown, you can't trust them, and imagine how influencers bull posted this project to people, and now the founder have pulled a classic scam.
Things like this is a rot on crypto: founders coming up with utility-less concept, creating a scam and getting influencers to shill it.
Generalization & Stigma Sucks
I saw some particular posts on Twitter, and BTC maxis too advantage of this founder's scam to start calling for the head of alt projects. The typical generalization is crazy.
I mean, if everyone bought BTC and it was the only project that existed, how could people make life-changing profits?
What about the real-world utilities that are included in my projects but are not obviously BTC? Take a look at Ethereum, with all of its utilities and projects building rollups and utilities around it; it is still at $1600 and has failed to meet price expectations.
I mean, it feels overly harsh to blame the entire market for the actions of a single scammer. It is like blaming acidyo for Hive's price.
Take care out there.
If you follow me on Twitter, I have been sharing some projects I have been trying to get involved in; the overall goal is to use whatever money I get to purchase Hive.
Overall, it is been a year and I have not made any money, and my expectations have not been met, but I know my perseverance will pay off eventually.
Stay careful, a lot of projects will come with the $OM project type of scam and people will be tempted to buy scam because of pumps.
Interested in some more of my posts
Why Is the grind getting harder?
Monopoly Is the Death of Civilization
Survival: Choas and Scarcity
Crypto: Gut & meaningful Connections
What is the primary barrier to entry in Web3?
What Are Some Things You Should not Do During A Bull Market Year?
I'm shocked by this MantraChain story. It's unbelievable how people got fooled by the price pump and ignored the red flags. This story has taught me to be more cautious and do my own research before investing in any project. I'll definitely be more careful in the future. Thanks for sharing this
I saw the project on my hunt quest on Twitter, I didn't even understand what was going on until I did a few research on why the price dumped. I followed the story so here we are..
Weird namedrop, not sure i understand what you mean by that
I saw the post where someone blamed you for the price of hive. It felt really funny, so I used the comparison lol. But I didn't use a tag because I didn't want to spam tag or alert for no reason.
Ah right, that, yeah.. it's funny I could probably count the amount of abusers I've chased away on one hand over the years compared to the people my projects and I myself have brought to the chain who are still active today.
Guess that fact is not as dramatic for their anti-downvote narrative.
Such a sad story, after I became a victim of mmm scam a few years ago. I became very alert and cautious, it made me have trust issues in a lot of stuff 😔
Well, it's wild in web3, a lot of things happen.
Web3 is crazy, lol. You can lose your life savings in a day.
I know those guys didn't expect that tho. I've seen some related posts on WhatsApp status today. I pray they heal.
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Greetings @josediccus ,
What an interesting life lesson for us all....without having been scammed in the process. You walked us through the fraudulent signs of a classic scam. Thank you for the heads up!
Well said!
Kind Regards,
Bleujay
You're welcome. It was actually fun to look through the timeline on Twitter and study how the scam process actually worked and it's crazy how it actually happened. If would be sad for people who invested in this coin because of the pumping price
That guy made out like a bandit! Of course he'll probably be on the run hiding from angry investors for the rest of his life... People don't pay attention to important details, as they say, the devil is in the details. I never would have bought into that scam because I've been burned before. Just like you! It's a shame to see so many bad actors out there, it gives crypto a bad name!
His name is JP maulin and honestly these guys knew the play book. He knows that if he comes up with a random layer one claim and pump the 10% of the total supply that wasn't in his possession that people are going to buy the coin with any thoughts of red flags and all that.
It mostly proves that people don't care about a project or how bad it is if the price is pumping.
For example, all of a sudden Hive is now bad because it's not pumping just yet.
The key word is yet!
There are quite a few scams out there. I am not surprised and that owner got a ton of money off those people who were gambling. I don't think many people would jump in if they thought about it.
It's exactly why I think people would jump at anything that's pumping without doing proper due diligence at some point. We sometimes learn the hard way.
I've read that the founder is going on a publicity campaign to tell his side of the story. It's currently being blamed on investors/traders using the token as collateral and getting liquidated. I'm not sure if the project will survive this, but its reputation as a RWA project to onboard Tradfi has gone down the drain.
The founder holding 90% already created scam vibes. Of course this is mostly damage control and they already have it all planned out from beginning.
Doing damage control means the founder gets to get away with this. Millions of dollars are already secured in the bag, but this damage control also means he gets to be able to create another project let's say in 2 to 5 years time .
Right. No accountability basically and actual investors will never recover their investments.
Oh shit...this guy doesn't even care about his reputation before playing such rough games. Should I blame the investors who couldn't read the red flags? Maybe no, fomo is something most people battle with and in all, is ether we gain or lose
Better to be calm and do proper research before investing
I lost some dollars last week 🤦...but I am learning the hard way
There's no reputation to protect if there are millions of dollars to earn. I'm sure the guy will not care about reputation. The scam has happened and they will open new accounts and dust their Identities then start up a new scam.
Cbex happened in Nigeria, so sometimes these guys don't care especially if they can run away with billions or trillions in Nigerian currency