- Some crypto projects hype their token price to a ridiculous degree
- Hyping your own coin makes it seem that a project is only interested in the money
- Repeat offenders risk being labelled scams
If there’s one thing that crypto Twitter loves its a price prediction, or at least a discussion over price action. However, traders and investors discussing a particular project’s price or potential price is one thing, but when the crypto projects themselves begin publicly discussing the price of their own tokens, many feel a line has been crossed. Should crypto projects get involved in token price discussions, and what are they risking if they do?
HEX – the Crypto That Really Wants Your Money
Of all the crypto projects that hype their own coins, the best (or worst) example is HEX. HEX is a ‘certificate of deposit’ cryptocurrency that serves only one function – to increase in price. Investors lock it up for years at a time and hope it’s worth more when they unlock it. With this goal as its central tenet, it is no surprise therefore that HEX goes out of its way to big up its price increases when they happen, going so far as to recently plaster two London black cabs with a cherry-picked:
This crass attempt to get people to FOMO into a token that, many argue, only exists to enrich is creator, may seem shocking to outsiders, but to those who have known about HEX for some time it’s no surprise – the project’s social media channels and Heart himself talk about almost nothing else but the price of the token, with the twitter handle is constantly changing to reflect the latest bullish price action:
Remember, this isn’t an investor or even a fan of the project – this is self-promotion by the HEX team. This kind of advertising is bordering on the desperate, which is why the project has been labelled a scam by so many. The same goes for all crypto projects that promote their token price too much – any project using these tactics to elicit investment is either greedy, going bankrupt, or is an outright scam.
Serious Crypto Projects Don’t Discuss Token Price
This is the problem with crypto projects that consistently bigging up their own token price in this manner – it gives the impression that the team is only focused on making money out of the token. A serious blockchain project should be almost ambivalent about the token price because it should have no impact on the development.
When you think about the likes of Ethereum, VeChain, and Enjin, good crypto projects with real use cases and stellar partnerships, when do you ever see them post about the token price? They don’t, because they know that it makes it seem like they are more interested in the value of the token than the quality of the project.
Ponzi Scheme Tactics
Operators of crypto investment scams in particular like to focus on the amazing gains that investors have made in order to reel in new fish who want a piece of the action themselves. How many times do you read about a crypto scam that guaranteed astronomical returns, only to turn out to be a Ponzi scheme ripping people off? Is that much different to plastering taxi cabs with flashy adverts depicting cherry-picked investor gains? They are both done with the sole hope of attracting new investors so that more money can enter the ecosystem, and at that point you have to ask yourself why.
Those running crypto projects can be tempted to celebrate when their token hits a milestone. That is absolutely fine, but project heads need to know where to draw the line. The focus should always be on the product, and developmental milestones should always be championed ahead of increases in the token price or you might find token holders questioning the merits behind your endeavors.