The space is full of coins! Coins everywhere! Left and right, everywhere we look, there is a new coin being created...
The crypto space is getting more and more connected with time. Right now, we can lend and borrow in many different protocols, we can tokenize BTC on Ethereum in a trustless and permissionless way with REN, we can put our money in protocols like yearn.finance that move the funds from pool to pool to get the best interest rates possible, we can yield farm, we can create content and be rewarded in crypto on Hive, uptrennd, publish0x, etc, we can buy tokenized houses and get rent on RealT, we can do so many different things! But we need to be careful!
Many of these projects that are being launched are scams! Protocols designed intentionally with bad code, bad code that will one day enable a hacker to steal millions! Coins that are created and put on illiquid Uniswap pools that will undoubtedly make fools FOMO in and pump the coin hundreds of percent only to see the same coins dump right after because the "founders"/scammers cash out... Protocols that say they have "elastic" supply when in fact they are so badly designed that when the negative rebases start it will be very hard to turn them positive!
The space is full of scams. But there is light at the end of the tunnel!
Many projects are coming online that are trying to prevent scams by stopping the mechanisms that scammers have been using to gain lots of money, mechanisms like doing scammy ICOs to get ETH and then not developing anything, or by removing liquidity from uniswap pools. One of these projects is TrustSwap!
TrustSwap is a protocol that aims to bring more security to crypto investors. They have many things being developed, like subscriptions, trustless payments between two parties, but the one I'm most excited about is the SmartLaunch feature!
SmartLaunch will allow token issuers to have full control of how the distribution model of the token works. This means that token issuers can have time-locked tokens both for their team and for the ICO investors, which means that investors will have the opportunity of pulling the funding if the project isn't developing the right way, there can even be development goals that need to be reached for the tokens to be released and for the funding to go through!
This is another whole level of transparency and honesty! This is how we make sure that the project we are investing in aren't full of scammers! By making them accountable for their actions, only allowing them to receive funding if they are indeed working on the project they said they were working on! This, to me, is the future. It's the only way I can see this permissionless ecosystem surviving without the governments getting mad at us that we are just a platform for scammers!
If a person wants to invest in shady ICOs they will still be able to, but if they want an actual project that is almost certain to not disappear as soon as the team gets their ETH, they will have to invest in projects that use TrustSwap.
I hope that in the future TrustSwap develops a system of funding where the users just need to stake their ETH to a project and the inflation will go to the project devs and the tokens will be released to the people staking. This is a system that some other blockchains are already using, like NULS with their SCO, or Hive with their ability to delegate HIVE POWER to certain projects to get tokens in return. This would be a game-changer since no one would lose their ETH to get in ICOs, they would just need to stake on projects and lose the inflation of ETH, and they would still have the option to get get out mid staking in case the project was not going anywhere!
Question of the day: Do you think that scammers will have a harder time scamming people with ICOs now that TrustSwap makes the whole process much safer for investors?
Posted Using LeoFinance