jakiro
Source: Plain Language Blockchain
In the past year, have you ever encountered the Rug Pull project?Have you ever encountered the “buy is the peak” because of the advocacy of KOLs?Or are the losses caused by increasingly rampant phishing attacks?Or maybe he has been falling all the way after buying the newly launched Token on the leading platform?
It is estimated that many users are worried about it, and they are at least one type of scenario. It can be said that this should be a reflection of the investment experience and true mood of most ordinary investors over the past period of time:
Whether it is on-chain security issues or asset shrinkage issues, users are unprepared for them. Many pitfalls that were commonplace in the past have even begun to be industrialized. To put it bluntly, almost even the “leek roots” are uprooted.
This article will take a look at the recent tricks of the crypto world becoming increasingly diverse, and whether the crypto industry still has opportunities to make money for ordinary users?
01The “fancy money loss method” of ordinary users
1) Rug Pull’s industrialization trend
First of all, Rug Pull’s plan to run away with the money is getting higher and higher, the most outrageous thing is the ZKasino thing:
On April 20, a community user compared the Wayback Machine history page and found that ZKasino’s “Ethereum will be returned and can be bridged back atThis point.) Delete.
At the same time, community users were unable to withdraw money, ZKasino’s official Telegram was banned by the administrator, and social media also stopped updating, with the total amount of the payment exceeding US$20 million.
But what’s interesting is that just one month ago in March, ZKasino just officially announced that it had completed its Series A financing with a valuation of US$350 million. The specific amount has not been disclosed, but many trading platforms and VCs participated in the investment…
In addition, zkSync, which is nicknamed “Rug Chain”, not only frequently occurs in ecological project security incidents, but also the industrialization trend of taking advantage of hot spots and quickly completing harvests is becoming increasingly obvious, just like the zkSync ecosystem with the same name as Merlin not long agoDEX Merlin Rug Pull occurred, affecting millions of dollars in funding.
I can only emphasize again that many projects in the zkSync ecosystem are indeed uneven. While participating in the experience of the zkSync ecosystem, we must remain vigilant and beware of risks at all levels.
2) The increasingly rampant hacker/phishing attack
The most eye-catching case in the on-chain security field is undoubtedly something that everyone seems to be commonplace.“The same phishing attack in the beginning and end numbers”:
A giant whale address was attacked by phishing at the same address at the beginning and end number, with a loss of 1,155 WBTC, up to more than 400 million yuan!Although the hacker chose to return the funds due to various factors in the future,However, it still reveals the extremely high risk-return ratio of this kind of fishing behavior “not opening for three years, and eating for a lifetime when opening for a fishing life”.
Moreover, similar phishing attacks have been industrialized in the past six months – hackers often generate on-chain addresses with different head and tail numbers through massive quantities as a reserved seed library.Once a certain address transfers money from the outside world, you will immediately find the address with the same starting and ending number in the seed bank, and then call the contract to make a related transfer, and cast a net to wait for the harvest.
Since some users sometimes copy the target address directly in the transaction record and only check the first and last few digits, they are hit. According to the founder of Slow Fog, Cosine, for the fishing attack of the first and last numbers, “hackers are playing the net attack,”The wishes take the bait, the game of probability.”
This is just a microcosm of the increasingly rampant hacker attacks. For ordinary users, in the colorful world of chains, tangible and intangible risks have increased almost exponentially, while individual risk prevention awareness is difficult to followsuperior.
Overall, there are many attack forms such as on-chain, wallet, and DeFi, and even social engineering attacks are popular, making DeFi security risks like an asymmetric one-way hunt: for technical geniuses, it is undoubtedly a choice.There are endless free cash machines, and for most ordinary users, it is more like a sword of Damocles that will fall behind at any time. Being vigilant and not participating in the authorization casually, it is more of a lot of things.luck.
And so far, the risks on the C-end such as phishing and social engineering attacks are the most common ways for ordinary users to lose funds in Web3, and the problems are becoming increasingly serious due to the additional risk points of smart contracts.
Behind every successful scam, there will be a user who stops using Web3, and the Web3 ecosystem will have nowhere to go without any new users, which is also one of the biggest harms to the crypto industry.
3) KOL fancy orders
For most ordinary users, social media calls that focus on various encrypted KOLs are an important source for obtaining Alpha passwords.
This also leads to the so-called “KOL Round” statement-As a role that has greater influence on secondary market investors, KOLs can even get shorter unlocking periods and lower valuation discounts than institutional VCs:
For example, not long ago, Monad Labs completed a new round of financing with a large valuation of US$3 billion.Some industry KOLs have been allowed to invest at a one-fifth upper limit of Paradigm’s valuation, people familiar with the matter said.
Then can you really guarantee a stable profit without losing money by following KOL?According to research on the performance of crypto assets-related returns mentioned in about 36,000 tweets published by Harvard University and other researchers, covering more than 1,600 tokens, it is not entirely concludedThe satisfactory conclusion:
KOL tweeted and called for a certain token, with an average return of 1.83% (1.57%) for one day (two days). The return rate of crypto projects outside the top 100 market capitalization is 3.86% after one day, and the profits began to be significantly increased at the earliest.The decline is five days after the tweet is posted, with an average return of -1.02% from the second to the fifth day,This indicates that more than half of the initial gains were eliminated within five trading days.
4) VC Token goes online and falls continuously
Which one would you choose for a high FDV (full dilution valuation), low circulation, a completely “local dog” and a self-loss of profit and loss?
The market trend has begun to change recently, and the trend of Meme has emerged, promoting the extreme prosperity of Solana and Base on-chain transactionsJust like PEPE, which has firmly held the leading position of the new Memecoin, has set a record high. In fact, in today’s market environment, in addition to short-term speculation, the general public’s call for fairness represented by Meme has gradually becomeTrends, funds are voting with their feet.
Correspondingly, there are VCs with extremely high FDV and continuous trends after a series of top platforms launched recently. Typical examples are BounceBit, the first project of BounceBit, and so on. They have almost been listed since their listing.Every day, the market ends with a negative line, and all users entering the market are deeply trapped.
In contrast, discussions and doubts about Memecoin and VC will inevitably become the mainstream of the community again. Meme at least has user flow that brings continuous incremental funds and attention, and new projects that have been valued at billions of dollars recentlyHowever, they are all outdated concept products that are made of grand narratives or old gameplay, and will inevitably be disliked by the community, which also sounds the alarm for VCs and project parties who are accustomed to path dependence.
02Where can ordinary players go?
“What we love is not “Flower Flowers”, but that era of opportunities everywhere.”
I believe many friends in the crypto industry have thought about how to participate in this wave of the times if we had the opportunity to go back 10 years ago?
Tun BTC?Be a Miner?Establish another Bitmain?Or become an early employee of BN?The best choices seem to be countless, nothing more than the past decade of the crypto world. It is really a golden age that breaks through the limits of imagination, and has also created waves of industry legends and big boss myths.
No matter what, the question of whether to make money or not is an eternal topic in the Web3 world and the lifeline of Web3 development.
When trading platforms, market makers, VCs, project parties, and KOLs all start to make money, but only most ordinary users continue to lose money, it means that the deep-seated structural problems in the entire market have been deformed to a certain extent and are destined not to last long.
Still the same thing, behind every “fancy money loss method”, a group of users may stop using Web3 products and stay away from VC Tokens, and choose to embrace Memecoins with more fair and grassroots characteristics. This is the capital itselfA kind of resistance to vote with your feet.
Before some Web3 ecological applications truly open up the value closed loop, ordinary users will “have nowhere to go”. Of course, this may be the “twilight” that is necessary for the development of Web3, and the encryption industry is still moving forward in exploration.
