Warning from Emin Gün Sirer: Deceptive Trends Threaten Integrity of Crypto Markets
Emin Gün Sirer, the co-founder of Avalanche blockchain, has sounded the alarm on deceptive trends infiltrating certain layer-2 (L2) solutions, posing risks to investors.
In a recent post on X , Sirer expressed concerns about these “trash” projects while educating users about their common characteristics and red flags.
Sirer believes that the rise of substandard L2 projects represents the next significant hazard in the crypto ecosystem, following the infamous crypto exchange heist orchestrated by former FTX founder and CEO, Sam Bankman-Fried (SBF).
The renowned crypto figure argues that the launch procedures for L2 solutions are relatively lax, allowing bad actors to create projects with little to no value.
To safeguard investor security, Sirer outlined several warning signs associated with these risky L2 solutions.
Firstly, he noted a discrepancy between the project’s narrative and its underlying technology, indicating a misalignment between marketing claims and technical implementation.
For instance, projects with centralized sequencers and no fraud-proof mechanisms contradict the core principles of decentralization and security in the cryptocurrency realm.
Sirer also highlighted L2 solutions that conduct token sales primarily for fundraising purposes, rather than having a specific, practical use on the network.
Such projects raise suspicions of dubious investments.
Moreover, Sirer cautioned against L2 projects in which founders sell their personal native tokens before the project’s launch, considering it a significant red flag.
Hey y'all,
We all ignored the huge red flags associated with SBF because "he looked smart" and "he made a lot of money." Then it turned out that he was dumb as rocks, was a
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