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?
