While there are hundreds of scams, some large and some small ones – a few grand ones have shaken the very collective psyche of the crypto community. Remember BitConnect that ran a scam lending program and cheated thousands of its customers?
The company and its founders are still fighting multiple lawsuits. Or Pincoin and iFan, the Vietnamese project that raised more than $650 million and then went bust? How about OneCoin that turned out to be a Ponzi scheme with authorities recovering more than $30 million from a raid? Centratech even managed to get Floyd Mayweather and DJ Khaled on board. But when authorities figured it was an elaborate scam, the founders were caught and the celebrities jumped the ship.
A cursory glance at the site Dead Coins paints a grim picture. It lists tens of hundreds of coins that are dead, or were part of an elaborate scam, or simply fizzled due to one or another reason.
Why Projects Fail and Why Do They Scam?
While scams are a major problem, the crypto market has shown resilience and the ability to consistently innovate, like any new technological reform. New better and more regulated fundraising methodologies like IEOs and STOs replaced ICOs.
However, the market is still in its infancy and hasn’t seen the influx of venture capital money and is still controlled by early proponents and investors who still hold a huge stake – the “whales.” Whimsical movement of the market, “pump-and-dump” groups inflating prices of targeted altcoins and extreme volatility led by emotional trading are reasons for the fluctuations often observed in the market.
These are also some reasons behind the fact that many altcoins are not doing well in spite of having strong fundamentals, whereas there are many “shitcoins” having great prices even though they have nothing to demonstrate. In such a scenario, it becomes extremely difficult for an investor to choose the right coin to invest in. It’s more like a shoot-and-pray process. Whether the shot will hit the Bull’s Eye is a matter of chance.
The initial hype and hoopla associated with ICOs left many investors with truckloads of shitcoins that have zero value. The fear of missing out propelled many investors to buy coins at whatever rates they could get their hands on without doing comprehensive due diligence. Investors even fell for a “scam” by the US SEC, which had created a coin – Howey Coin – to show how gullible investors can be when it comes to crypto projects.
Investors Are Left Bitter
As information dawned upon the investors, they found that the vast majority of the “robust and active” community had dwindled and moved on, the community managers had all but disappeared, the social media that had once shouted at the top of its voice about the “world-transforming revolution the project was creating” had gone quiet and the project was now a “ghost.” And they were left to carry the “baggage” of worthless coins that had once promised them astronomical returns.
If scams continue existing, more investors will lose money, leading to stringent oversight of regulatory authorities. Many experts believe that this will stifle innovation in this exciting, yet nascent, technological realm. It is, thus, upon us, the crypto community at large, to do something about this situation. This is where Q DAO Team has taken the initiative to help investors in distress.
Cleaning Up the Mess, One Project at a Time
Q DAO Team has introduced the unique QSWAP service for the holders of coins of dead projects. Who are these guys? They are behind the hugely popular and successful stablecoins like USDQ, pegged to the US Dollar. The company is also reputed for offering high-quality blockchain marketing, technological, legal and advisory services, and has helped projects raise millions of dollars.
So how does Q DAO Team analyze dead projects? By following strict guidelines like:
- outdated, non-working or non-existent website
- no news and updates from the project for a long time
- dramatic fall in token price after fundraising rounds
- no support in chats or responses on social media
- no adherence to the developmental roadmap
- no, or insignificant, trading on exchanges or no listing of the coin on any exchange
- no active community
- poor evaluation of team-members/founders and employees
Even just one factor can influence the overall rating. Once such a project has been identified and after internal due diligence by the expert team at Q DAO Team, the company reaches out to holders of coins and tokens of such a project through community announcements to participate in the QSWAP.
In QSWAP, Q DAO Team accepts the coins of the project (at ICO price). Through this program, Q DAO Team seeks to support the investors’ portfolio.
The first such project that Q DAO Team has identified is Albos. The company has already collected 14,024,312.667108732 ALB tokens. After they have collected as many coins as possible, they will burn the ALB tokens. Q DAO Team will burn Albos collected coins in a live stream, so as to make those coins extinct from circulation or being held in any wallet.
The next projects in a row: Twogap (TGP), Spindle (SPD), DEXON (DXN), Contents Protocol (CPT), MINE (MINE). To Participate in QSWAP campaign the user should just fill in the participant form.
About Q DAO Ecosystem
The Q DAO ecosystem consists of stablecoins whose values are pegged to globally-important fiat currencies. Currently, the ecosystem has USDQ and KRWQ, furthermore, the company has plans to release coins such as SGDQ, CNYQ, HKDQ, JPYQ, and PHPQ that are pegged to Singapore Dollar, Chinese Yuan, Hong Kong Dollar, Japanese Yen, and the Philippine Peso, respectively.
The Q DAO token is the governance token of the stablecoin ecosystem that works similar to the Maker DAO ecosystem, only that it has a lot more features than Maker DAO. Q DAO holders are the decision-makers of the ecosystem and not only play a vital role in the efficient functioning of the ecosystem but also trade a robust digital asset in the market.
The Q DAO, USDQ, and KRWQ are already trading successfully on top cryptocurrency exchanges like IDEX, HotBit, BTC-Alpha, and BTCNEXT. From the time it was released in early July, the Q DAO token has seen a phenomenal and sustainable rise in market cap and price. The market cap of Q DAO is over $4 Million and the price per token has seen a stupendous rise from its initial $1 to over $60, and now is holding at around the $40 mark.
The blockchain and crypto revolution cannot be faulted by the actions of scam projects. It is the collective responsibility of the community to bring back trust and allow for the full exploration of the potential of this new asset class and underlying technology. Q DAO Team is one such company that is endeavouring to bring back trust in the crypto market and help people with a chance to recover their losses.
While this initiative by Q DAO Team is commendable, it is also a signal for members of the community to do more to clean the market of frauds. While the QSWAP program may not change the world, however, it will definitely save many portfolios. This surely will bring trust and transparency into the market and motivate better projects to transform the world we live in.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the Q DAO organization and its affiliates. Examples provided in this article are only examples. The examples and conclusions provided do not constitute comprehensive and complete conclusions as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of Q DAO and its affiliates.
John Forbes as Investor Relations Manager focuses on Q DAO financial community, rather than its business customers or the general public. John is a tech entrepreneur and crypto enthusiast, he was involved in digital currencies when the industry was still at its infancy. Conceptualized and implemented integrated communication plans for more than 15 venture capital and private equity around the Globe. Within the Q DAO team, Howard communicates across internal and external constituencies, raising awareness at to enticing contribution opportunities for VC and crypto communities in Europe and Asia.