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5 Types Of Projects You Must Stay Away From.
🕑 Added 2023-10-31 21:51:55 +0000 UTCYou should know by now that the crypto market is highly unpredictable.
One day, a crypto can be doing really well, but the next day, it can crash and become worthless.
92% of crypto and blockchain projects fail.
According to Yahoo Finance, of the 1,840 failed cryptocurrency projects since 2017, the majority were scams.
Of these, the fraudulent projects tend to live no longer than 1 year and the legitimate projects that don’t see success usually die off within 1-3 years. .
Know why? It’s because many of them are just rubbish.
This raises the question:
Why do some crypto projects fail, while others become very successful?
I will tell you.
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1) If the Project Lacks a Clear Vision.
The most common reason for a project's failure is the lack of a clear vision.
Imagine you're on a road trip without a destination in mind; you won't get anywhere.
The same goes for a project. Without a clear idea of what it aims to achieve, it's unlikely to make any progress.
For example, if a crypto project doesn't have a clear plan or goals, the team won't know where they're headed.
This lack of direction will cause frustration among the community and investors, which will eventually lead to the project's downfall.
Also if the projects lacks sustainable utility/uses cases, they will fade out eventually.
I will be real with you here "timing" is everything in the crypto space.
Some coins/token survived because the timing was good (i.e bull market, high demand/buying power etc).
While reverse is the case for others that have failed (i.e bear market, crash, low demand/buying power etc)
So the best time to acquire valuable coins or tokens is often during bear markets because the ones that survive have a higher chance of success.
While we're slowly moving away from the bear market and entering a bull market, it's not too late to invest in promising tokens.
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2) If The Project Has An Inexperienced Team.
Another reason why projects fail is due to an inexperienced team.
I don't care what anyone says inexperienced teams will be unable to build a profitable crypto project.
They make stupid mistakes and poor decision-making, which can quickly mess up a project.
Also ask yourself are they just making a project because everyone is making a project or are they actually solving a problem.
Many developers are creating the solution to problems that don’t exist on the blockchain, even before the problem has been identified.
For some there is no real market or demand for their product at all.
That is what an entrepreneur needs to identify in his or her business plan prior to developing.
Really strong projects are those that address real problems, and make the world a better place in some way.
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3) If The Project Uses Excessive Hype and Unreasonable Expectations.
A red flag for a failing crypto project is when it generates too much excitement, and people anticipate things that are not realistic.
If the project's team can't meet these sky-high expectations, it will result in disappointment and, ultimately, the project's failure.
For instance, imagine a project that promises unrealistically huge gains or claims it will revolutionize an entire industry overnight.
If the project's team can't deliver on these sky-high expectations, it will lead to widespread disappointment and failure.
The best advice in these situations is to approach with caution.
Look for projects that set realistic goals, have a clear roadmap, and communicate transparently with their community.
Investing in projects that rely on hype rather than substance is always risky.
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4) If The Project Has No MVP or Product Released.
A clear warning sign that a cryptocurrency project is headed for failure is the absence of a Minimum Viable Product (MVP) or any product release.
For example, if a project has been in development for a long time and hasn't produced any tangible product, it suggests that they might not do so in the future.
This situation raises concerns that the project could be a scam.
Also a lack of a working prototype is another warning sign that a crypto project will fail.
A working prototype is crucial for a team to demonstrate the feasibility of their concept and their ability to fulfill their promises.
So if there are no signs of development or progress in recent weeks or months from the Team be careful.
For instance, if a project has been silent and hasn't made any major announcements or updates, it could be an indicator that the project is about to fail.
It's also concerning if the project's team is not actively engaging with their community or isn't visible on social media.
This lack of communication is a sign that the project is in trouble.
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5) If A Project Seems Too Good To Be True.
A crypto project is in shit and is in trouble when its team cares more about making money than building a good product.
This can happen when they get caught up in the bull run hype.
They will use tricky marketing tactics like fake partnerships, making unrealistic promises about profits, or spreading fear and doubt among investors.
When you see these signs, you should always stay away.
Look for projects with a clear vision and honest marketing.
These are usually projects that have amazing fundamentals which lets the product's speak for itself.
For instance, if a project claims it's partnering with a big company, but it turns out to be false, that's a warning sign.
Or if they promise you'll get super-rich with no risk, be cautious.
Good projects focus on the product and honest communication.
I will see you at the next post.
@ionicXBT
Comments
thx! Important Input as always!
Great piece. Notes taken. Doing all I can to stay on top with your guidance. I admit that have been slipping and missed most of the last pump. But I want to be smart here and look forward to making beneficial decisions now. Still trying my best and I'm confident I am going to make it. Thank you @ionicXBT
