I see on many posts and forums throughout the crypto world that 90% of ERC20 tokens will fail and a lot of ICOs are scams. Ethereum has made these “creation of money” scams more possible and easier than ever before. And harder to detect, the good ones are lost in the weeds.
Software engineers now have the power to create money out of thin air. It only takes a few smart people to get a block chain going. They may have bad or unknown intentions.
This brings up some questions that need looked at:
- Is there a way to prevent scams on the Cardano network?
- Should any random token created by some group of random devs be allowed to operate on the Cardano network?
- Is there a way to measure the quality of a token?
- Can smart contracts prevent scam tokens?
- Should Cardano establish a metric to determine if a coin shold operate on the network?
I think it is unreasonable to expect every single average human consumer to DYOR (do your own research) and be a crypto expert before they make typical everyday decisions on how to make a purchase or a typical investment if cypto is rife with scams. They will just avoid crypto and stick with a known, trusted, simple, working fiat. “Why would I do tons of research when I can just whip out my Visa card?” or “Why risk my life savings on a private key on a computer when I can just buy my employers 401k?”
Crypto needs to become more reliable, trust worthy, and scam resistant, and I am talking about scams that involve the creation and distribution of money, not the kind of scams that have been going on since the beginning of time. Trust needs to be established. (I want to avoid the EOS method of course).