RE: Why HEX Serves as a Wake-Up Call for Every Crypto Investor
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Do your own research.
Isn't this idea part of the problem? The people who fall for scams like Hex and BitConnect usually do not have the technical background to be able to distinguish scams from legitimate projects. It's difficult enough for those who do have the technical background within this space.
Scams like Hex and BitConnect work by appealing to abstract ideas and values, while making no or minimal effort to demonstrate the technical details or provide a realistic business model. In fact they intentionally choose unrealistic business models to weed out those who would be able to recognize their scam, thus avoiding wasted time.
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In my own point of view, doing our own research means if the project is decentralized enough not to be a scam or maybe in the future becoming to be a scam.
How do you think we can better arm the community against such deceptions?
Being a scam or not is more than about being sufficiently decentralized. Beyond that, even the understanding of decentralization in the space is complex, there are many facets of decentralization to consider.
In general, people need a certain level of financial education as well as technical education before they should even consider investing in the space. If they do invest, they should be discouraged from investing more than a very small percent of their overall portfolio. The space as a whole should be considered inherently high risk.