Hype, Raise Funds, Rug, Repeat.

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Say it with me. Hype, raise funds, rug, repeat. Hype, raise funds, rug, repeat. Ok, I'm done lol.

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Watch your step!

It almost feels like walking in a mine field navigating the crypto and NFT space. You're constantly having to watch your back, look out for scammers, and avoid phishing attempts. Of course, the same thing could be said for pretty much just living because there's a hell of a lot of scammers out there. How many scam calls do you get per day? Exactly.

People that are against cryptocurrency often use the rampant scams to shine a bad light on the whole space to prove they're right. You don't see people getting scammed with their USD or local currency then saying the currency is bad. They just got scammed, and that sucks. It happens all day every day to all kinds of people, especially the elderly or vulnerable.

My point is, scams are everywhere and you should be cautious with anything dealing with finances. You should be especially skeptical when the same people are doing it over and over again, like cough Justin Sun cough. Or this guy JK on Twitter that used a DAO to raise funds then rug pulled.

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Check out this Twitter thread by zachxbt for the juicy details and comments. Basically, this influencer launched a DAO (decentralized autonomous organization) called JKDAO that people could join by purchasing a membership NFT. By purchasing this NFT known as a JK Keycard investors could vote on how the DAO's assets are managed.

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The DAO was supposed to launch a multi-sig wallet with 5-8 people to hold the keys and that would guarantee the security of the DAO's assets. They were going to create a fractionalized token for the DAO's assets that investors could earn daily by staking their KeyCard NFTs. They promised tons of utility for the NFTs and the fractionalized DAO tokens. but none of that ever came to be. Every single one of the 100+ ETH that were raised from the sale of NFTs were siphoned out to Tornado Cash instead of buying a Boared Ape Yacht Club NFT like the community voted on. Classic rug pull.

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What's really mind blowing with this rug pull is that it was all done via a publicly available ENS name jkdao.eth. This links the rug pull straight back to him. What an idiot. Someone call the regulators. After the project siphoned all of the $300,000 worth of ETH out, the Twitter and Discord server went dark.

He even tried to say that the rug pull was just a rumor but... He's directly linked to the ETH address, which is public so... Yeah. Anyway - he's back with yet another project! Like nothing ever happened with the last one. This is how short the attention span of people on the internet is. If it happened 3 months ago, that's like 15 years ago and it's all good. It never happened. Except for one thing... The blockchain doesn't lie.

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If you read that tweet and your bullshit rug pull radar didn't start flashing, I recommend taking a good hard look at yourself. The reason people like this succeed is people are greedy and they let the greed blind them from the truth. This guy rug pulled $300,000 from a supposed DAO without delivering on one single one of the promises. Now he wants people to mint his generated profile pic NFTs.

The sad part is... People are going to give this guy money. Again. I just wonder how much he will make off this next grift before he goes ghost again. The same thing is going to happen, dawg. Sorry to say.

Say it with me.

Hype, Raise funds, rug, repeat. Hype, raise funds, rug, repeat.

Don't be sheep. Be hyper-aware of serial scammers. We're in the wild west.

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Thanks for reading! Much love.

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Vote for my witness and get 200 LEO NOW xD

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The rate at which the so called crypto influencer and pro traders are rug pulling is really high, I don't understand why people tends to trust them easily.

The sad part is... People are going to give this guy money. Again.

You are right, he will come again with another scheme and some greedy ones will still fall for it.

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I this is cycle you mentioned in this post will continue as long as people remain greedy, wanting to make life-changing money in a twinkle of an eye. Most people see crypto as a get-rich quick scheme and are willing to gamble with their funds because they assume the odds are in their favour.

"Just one good project" they say, "just one good project out of all the shitty projects is all I need"

So they gamble. Unfortunately there are people skilled in the art of taking from these kinds of people, and they will continue to do so.

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People will never stop being dumb and they keep on falling for the same stuff. At this point in time, the only time they will learn is when they get burned bad enough. I do think they are starting to crack down on some of the smaller influencers.

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I have seen this happen a lot of time, with people creating hype, raising lots of money and then the rug is pulled and they cashout and do it again. This is now very common in the NFT worrld

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I guess I'm just lucky, because the only scam calls I ever got are from politicians trying to convince me to vote for them.

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You're so lucky. I get calls about my car's warranty being expired (it's a 1998 lol), calls about being charged $1300 for an iPhone, and all kinds of shit.

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EU makes wonders on these frontiers. It's illegal to sell phone numbers without consent of the owner. Somehow gov still found mine, but its way less than with insurance or other marketing calls.
GDPR is even better, now I receive less spam emails as well.

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You don't see people getting scammed with their USD or local currency then saying the currency is bad.

I was just going to say this in a post I’m presently cooking. Up until date, the amount of theft through fiat dwarfs the amount of theft that has happened in crypto by a wide margin permitted that crypto is barely 12years old.

People just mostly like to pass on blames rather than be responsible. Financial literacy and responsibility will be taken more seriously going forward. But then again, these centralized systems make it so easy for lazy people to stay with them, unfortunately

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That's the thing... The current financial system is made so "easy" that people are just overly comfortable. Unfortunately, there's no tech support to call or credit card company to reverse the charge here.

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Crypto scams are just the latest in the long line of online scams.

Whatever the currency used it is still scamming.

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Though the saying goes "Once beaten, twice shy".
In life, its either you learn from others mistakes or you learn from yours, and it's sad that most people do not learn either ways.

It's also disheartening that when people try to produce good things in the world for others to gain and benefit from, there will always be vermins out there plotting the worst, and this is basically part of the circle of life sadly. I think we should all try to be more observant and careful and most importantly don't let greed get the best of you. Cheers

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All very well said, buddy. Fool me once, shame on you. Fool me twice, shame on me... I think is what I used to hear all the time.

We just have to escape the tunnel vision of getting rich and pay attention to what's going on in the world around us.

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I never knew this concept had a name, well, now I do.One thing that baffling me with humans is how quickly we forget things and still go back to an enemy especially in this financial realm. Of course, people will still give him money even more than the first time

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For this exact reason is why I stay away from new projects, and most of the NFTs out there. Yeah I have missed some massive opportunities, sure, but I have also kept out of allot of the rug pulls and such.

I have always been a believer in natural, organic growth. Hype is usually just that, hype. I want my projects to be able to stand on merit and value. Guess I am just old school that way. Oh well...

The problem is, that because of all these scam hypes, it's hard to market projects with actual use case. But that's the world we are in I suppose. Just going to keep rolling and making my projects the best I can make them, because this dude don't pull rugs, he keeps them because they tie the room together.

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I'm with you. Organic growth will always win over hype. We've created the monster that over-hyping projects and making them sound exclusive though. So we have to exist along side it. Being human is weird lol.

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Hopefully one day we can undo the decades of hell that the marketing and advertising industry has brought upon us... fucking Mad Men, lol.

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There's no undoing it. I think it's a thing where we just have to keep pushing forward with legit projects and highlighting the absolute dog shit.

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Not a bad approach. There is so much crap out there. Sticking with people who are trustworthy is the best bet.

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Crypto is full of scams. People need to be very careful. I find that I am looking at consolidating more of my holdings to what I trust.

New projects are simply too risky unless they are brought out by people I see have some type of track record.

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Yeah, I do think it's important though to have a small percentage of your portfolio allocated to more risky assets. Just a very small percentage.

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Certainly I agree with that. Have to have some speculation. Nothing wrong with some lottery tickets. However, to have a full portfolio like that is insane.

For me, I probably have too much in the speculation. That is why I am adding to my HBD regularly.

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I have more than I'd like to admit in highly speculative assets, which is not what I suggest people do. I've been in the game too long I guess lol. I need more HBD for savings though.

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Why try to re-invent the wheel when the wheel on hive works perfectly well! That way you don't need to unnecessarily risk your crypto either.

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