A few days ago I searched the web and came across a new project launched on the Binance Smart Chain network, supposedly a DEFI with a high performance. basically an advertising chain was created due to an alleged airdrop, many people talking about the project, with more than 20 thousand people called “nether.network” an obvious scam since its launch and when verifying your website we can break down how to get important features, to have an idea of which projects we should keep away, YES or yes.
Keep in mind before investing that when investing in cryptocurrencies and DEFI finance your capital is at risk, I only write this article so that people become aware when investing on the different decentralized platforms.
Currently I am going to use a project called “NETHER.NETWORK” as an example, from now on NN, as an example to have a clear idea of how it is possible to analyze different new platforms.
The direct relationship of its utility, that is, what is the use that this token, cryptocurrency or project will have in the market. I ask myself the following question. Is this project really useful or necessary?
–Focus on the utility of the project–
The first important aspect is what NN wants to make known, they do not present a clear idea of what they are or represent. “The platform for leading centralized finance companies”. However, they do not explain in a concrete way what the utility is, under which companies will be associated or how they will establish new business partners to use their services. But this is not the only aspect that generates some distrust, but the desire for a free delivery of tokens can keep hope for some in its legality.
Now the utility is “Provide decentralized value and wealth to companies, employees, customers and others”, When I read this part it was more than evident that something was wrong, since under no circumstances explain what they offer or how they will do it. It is a really absurd idea, how are you going to provide wealth if it is a project from scratch? What values does this asset represent? How do you intend to reach all these users? And even more absurd, how and which companies will partner with you to create value for your token and support it? There are more questions than answers that are asked when reviewing this website
IF THERE ARE MORE QUESTIONS THAN ANSWERS, THERE ARE NO CLEAR ASSOCIATIONS OR A PROVEN STRUCCTURE OF HOW THEY WILL REACH YOUR GOAL, THERE IS SIMPLY NO THESIS TO TEST.
– Is its use feasible and how will they meet their goals –
Supposedly designed as a governance token, by keeping it in your wallet or betting you can increase your assets, simply by sending your asset to a mining pool. This is totally contradictory to the above, since it would supposedly provide value to companies, there is no way to create value for any company or partner. I just don’t understand what they are talking about.
When you are looking for a structure that allows you to know what your methodology will be to implement for the development of your products, and you only see some inconsistent details or that do not have detailed specifications, it is best to go to your roadmap, white paper. But guess what, there is no such information.
So whenever you are in search of new investment horizons or find a project that you like, read their roadmap or white paper. (If it sounds a bit tedious but keep in mind that you may lose your entire investment).
— It is an online product or service–
No application was ever presented, or any data related to technical specifications that would provide an idea to future investors, only a launch of the betting application and there was no associated date.
When you are thinking about investing ask the following question, would I ever use that product or service?
The first thing that comes to mind with my example is a resounding NO, since I am not convinced of what this project is about, also I do not have a company and I do not know how the details of it will develop.
NN “Experts who are working behind the idea of this platform to provide the best to users”.
What an unoriginal slogan, what do you give me as a user or a good possible user?
All the developers, CEO, administrators among others remained anonymous until the last moment, I will explain this later.
Their reasons for remaining anonymous is that their software is open source and that anyone could use it so no leadership is necessary as the community would be the leader in the project.
My question is, why should I trust people that I do not know and do not show themselves to the public?
No, definitely if at any time they ask you for something in return, you should not invest in a centralized project that is anonymous, since it is a fundamental aspect, you do not know me and I do not know you, but people are the ones who give confidence to the projects, Bitcoin may have been born anonymously, but nether.network or any other are not, since bitcoin exists and serves its purpose. It is false that some anonymous team is transparent, since the main thing is broken. There is no data on these people and if there is no data there is mistrust.
– Do they ask for money in exchange? –
If you came to that project under a reference link, twitter, telegram, facebook, among other options and they promised you a free token, and then they ask you for something in return, you should walk away. Basically it is safer that it is a scam. Now I will explain the modus operandi of “nether.network”
–Nether.Network! The new way to scam using Uniswap-based Decentralized exchanges .–
- Announcement of airdrop by different social networks in which you had to perform some tasks such as sharing a publication and getting references.
- Finish the search for participants, now and they have more than 20k users in their different networks such as Twitter and telegram.
- In the announcement of the launch of the liquidity market in Pancakeswap, approximately 100 NN pairs with BNB were invested approximately 3000USD to increase the price of the token.
- Since it is listed in an exchange, the motivation process begins that users who buy the token in the exchange, announce a holder contest, it consisted in that the users of the project that were in the top 10 would receive TWT Tokens, (if this other token was used to motivate purchases). But to be honest, nothing happened, the price continued the same and almost nobody bought. The tokens were not yet delivered to the users who participated in the launch.
- As they saw that the value did not move and of course none of their 20k users bought, and of course they asked that when the token would be delivered, they started their scam very similar to Ponzi. It was the following, All users who supposedly performed all the tasks. (They even showed a number of user wallets that he had complied with.)
They had to buy 0.01NN on the DEX exchange where the liquidity was. More than 4000 people bought 0.01NN which makes an approximate accumulated of 40 BNB, it is approximately 1200 $, this in a short period, but currently there are more than 17k of transfers.
- The price of each NN rose to more than $ 160, Now the question is the following, who has the volume node? of course the developers of the project had more than 90 thousand NN.
- After raising the price to more than $ 160, they began to sell all their tokens in reserve, taking all the money collected, that is, every 0.01NN that would be equivalent to two dollars that the 20k bought and allowed the price to rise to That price, as I mentioned, was a liquidity pool and they basically made people add their BNB to the liquidity pool to increase the value and thus create a false hope of increase.
- From one moment to another the currency increased from 0 to 250%, (all this information is verifiable in the liquidity fund of pancakeswap.
- The owners of the project, well now scammers, disappeared with the loot and more than 20,000 people were scammed.
Image taken from a capture to the Pancakeswap volume page
–What do I finally think of this?–
This is a clear example of a scam, especially in DEFI projects since their structure is basically the same when adding liquidity, it is not the first time that I find some similar aspects in projects like this.
Take this example into account when investing in decentralized Ecosystems since it can be a scam and finally and you only want to receive airdrops, I never sent money to the project, since if it is a free launch it should be, the conditions should never change from last minute keep that in mind.
Also verify that the data is really correct, and that you really have the associations that they promise to have. Since basically other notable projects such as Trust wallet, Binance, BSC, pancakeswap among others were compromised.
There are more reasons to prove that a project is or is not a scam, this is a reference nether.network is a scam from which I was able to follow some steps and I really noticed that it was a scam, at the end of the day it turned out to rob a lot of people although I warned I was simply expelled from the group.
This is the first scam that I came across on the Binance Smart Chain network.
How to identify a possible DEFI scam. I’ll take as an example a recent one: “Currently as Nether.Networt” remember to be cautious when investing.