Mining Projects Are a Waste of Time

Until now, I believed that investing time in a mining project could be profitable. However, as time passed, I came to realize some crucial truths that I feel compelled to share with others.

Mining projects often claim that they allocate the majority of their tokens to the community. This claim is entirely false. You may have noticed that in many projects, there are a few accounts with a massive number of referrals. These accounts usually belong to the project itself, and there are often hundreds of such accounts. These accounts not only hoard tokens but also actively promote the project.

Why do these projects involve the community if they keep most of the tokens for themselves?

The answer is simple: to create a façade of legitimacy and open a pathway for exploitation. The larger the community, the greater the hype, which leads to increased buying and selling activity. At the same time, this community pays significant amounts in upfront fees and task completions, filling the project’s coffers.

When the project gets listed, the general community refrains from selling, waiting for the price to rise. Meanwhile, the project’s major accounts start dumping tokens at slightly higher prices, profiting massively and exiting the market. Ideally, there should be legal action against such projects and the exchanges that list them, but unfortunately, this rarely happens. As a result, people face substantial financial losses and are forced out of the market.

In the past month alone, nearly 200 projects that got listed have exploited people in this way. This is why people are increasingly losing trust in exchanges.

Very soon, we may see a time when no real traders will operate on exchanges. Bots will dominate trading activities, deceiving people and siphoning off their money.