Emin Gun Sirer called the signs of dangerous second-level decisions

Ava Labs CEO Emin Gun Sirer warned the crypto community about the emergence of many second-level "junk" solutions that could pose a great danger to investors.

Emin Gun Sirer called the signs of dangerous second-level decisions

Avalanche co-founder Emin Gun Sirer said that after the collapse of the FTX crypto exchange, a huge number of low-quality second-level projects appeared. The procedures required to run them are quite free, so nothing prevents attackers from creating projects that have no real value. The first "red flag" that signals danger is a mismatch between the project concept and technology, that is, when marketing tasks cannot be technically implemented.

As an example, Sirer cited projects with centralized sequencers without fraud protection, which contradicts the principles of decentralization and security. Sirer also urged users to be careful if startups sell tokens simply for the sake of fundraising, and not for a specific practical purpose on the network, and called such investments questionable.

The Avalanche co-founder also considers it suspicious if the founders of second-tier projects sell large volumes of native tokens before launching, regardless of motives. You should also refrain from projects whose tokens have a low floating rate, as this creates conditions for artificially inflating the value of tokens and market manipulation. Sirer also advised investors to pay attention to the ethical behavior of the founders of the projects and their manner of communicating with subscribers.

"Ask yourself: does this project change the rules of the game, can it solve the problems that the crypto industry is facing right now? What opportunities does the project have to solve these problems? Perhaps another bunch of sociopaths are playing a game called "second-level solution" to fill the void left by Sam Bankman-Freed," Emin Gun Sirer wrote.

Source: https://bits.media/emin-gyun-sirer-nazval-priznaki-opasnykh-resheniy-vtorogo-urovnya/

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