How can you be sure a project is real and not a scam?
In an age of exponential crypto market growth where we see numerous projects spawning every day, it can be difficult to distinguish the real from the “fugazi”, to obtain crystal clear clarity among the smoke and mirrors that sometimes pervades the crypto fields. In the current thick fog of ideas, projects, coins and NFT’s, there has always been a shining beacon of light, a lighthouse if you will, guiding you to the safety of a soft sandy beach and a restful night’s sleep.
Regulators can (sometimes) be your friend.
Your guardians against the jagged rocks of loss and despair are none other than our financial and legal regulators. They may often be slated as “job killers” or “red tape merchants,” but once a project and their team members subject themselves voluntarily to their rigorous vetting process, then the subsequent seal of approval speaks volumes to the legitimacy and legality of a project.
One such project that has voluntarily subjected itself to this legal scrutiny is SpiderDAO, and it has come out the other side fully vetted, booted and suited. SpiderDAO is committed to building the world’s first hardware-enabled DAO on top of the Polkadot Network. Its first product is a provable, open-source and fully decentralised VPN where all user data is encrypted to ensure that network traffic is fully secured and totally private when leaving or entering the network.
The project will be powered by the $SPDR token, which forms the backbone of every interaction and will be responsible for monetising the interactions and services provided on the network.
So how can you be sure that the $SPDR token itself is legitimate and has value? Look at where it’s traded!
Regulated exchanges are also your friends.
One other way a project can stand out as legitimate is its listing on a reputable and fully regulated exchange. This is no mean achievement either. Our grey suited enforcers are also committed to making sure centralised exchanges that interact with fiat currency are incredibly well vetted and are forced to perform another level of vetting when it comes to the projects and coins they list on their platform.
This regulation touches the very heart of financial markets, KYC or “know your customer”. KYC laws have been passed and strictly enforced since 2001 and their reach is enormous. It reaches every level of banking, law, accountancy and many other professionals who all have to make sure the individuals and corporate entities they are dealing with are known and investigated before their funds are allowed into the financial system (including the crypto world via exchanges).
This level of vetting that regulated centralised exchanges are subject to is also your friend when it comes to assessing projects and the coins they are dealing with on their platform.
Recently, SpiderDAO has been subjected to the very vetting process described above and is to be imminently listed on a world renowned centralised exchange. This achievement is yet one more example of the legitimacy and commitment of the team behind the project and marks an enormous step forward in the roadmap. A roadmap that had SpiderDAO’s inclusion on Xangle T!cker, a widely used service for transparent disclosures on regulated exchanges.
So when it comes to picking who you want to be involved with in the sometimes murky world of crypto, pick your projects carefully and at least have a passing thank you to the regulators who are constantly watching out and vetting for you with no obvious thanks from the people who need them the most: YOU!