Ava Labs CEO Shares Key Difference between Long-Standing Crypto Project and a Scam
- Ava Labs’ CEO Gün Sirer has condemned players that jump into every new coin offering or token in the hopes that they will go up.
- Sirer believes there is one straightforward method to spot a long-standing cryptocurrency project.
- He urged the community to support solid crypto initiatives and avoid scammy projects with a short life span.
During a fireside chat at the Building Blocks 23 event, Ava Labs’ CEO Gün Sirer discussed blockchain venture capital and crypto regulation. He pointed out the crucial role of “staying power” in the crypto industry, condemning players who run from one project to another or jump into “every single new coin offering” in the hopes that they will go up. According to Sirer, this desire for quick profits will only turn the space into a terrible thing, and VCs are not to blame – it’s us. He advised people to support solid crypto initiatives and avoid scammy projects with a short life span.
“Very Simple Test” of How To Spot Long-Standing Projects
The Avalanche founder then shared his “very simple test” of how to spot long-standing projects in crypto and stay away from those who make grand promises but disappear quickly. He recommended people look at the team behind any project, as well as its regulating jurisdiction, which can provide an important hint about its capabilities.
VCs Not To Blame For Poor Projects
Sirer stated that it’s not VCs’ fault for poor quality projects entering the market – it’s our responsibility as investors. We should be prepared to do our research on investments we make before blindly following hype or getting carried away by marketing tactics presented by shady firms. Otherwise, we risk falling victim to scams or Ponzi schemes that offer false promises without any real substance behind them.
“No Magic Bullet” Solution To Identify Scams
The Ava Labs CEO also warned against expecting easy solutions when it comes to identifying scams – there is no magic bullet solution: “You have to read between lines, you have to talk with founders […] you have to think hard about what this team might achieve.” In conclusion he said: “If you don’t feel comfortable after having done all of that — don’t invest!”
“Be Wary Of Quick Profits”
In order for cryptocurrency projects (and investors) to succeed over time, Sirer believes we must focus on staying power rather than hoping for quick profits — otherwise we risk turning this space into something terrible. We should always remember that investing involves risk – so be wary of quick money schemes and do your own due diligence before committing funds into any project.