profile

Decent Reviews Newsletter

The end of rug-pulls?

published10 months ago
6 min read

It's almost Friday!

I've been hitting up a number of crypto sites and brands ot see if they want to do co-promo partnerships and I am amazed at how many of them want to charge for some of the most basic things.

Prices are all over the board as well.

If you are - or know of any - good crypto content creators I'd love to speak to them.

Now, onto the news!


NFT News

The end of NFT Rug-Pulls?

​

We're not even halfway through the year and already people have lost millions to crappy NFT rug pulls and scams.

The highlight of my month was watching Floyd Mayweather - one of the greatest boxers to have ever stepped into the ring - plead with anonymous "crypto sleuth" Zachxbt to remove tweets that highlighted his upcoming scam project.

​

​

Thankfully, Floyd's new project was a pretty dismal failure. So I guess he's no longer undefeated πŸ€·πŸ»β€β™‚οΈ.

While I absolutely loved seeing this happen in real time despite my love for his boxing ability, it's a small step fighting against a huge issue.

A good third of the news pieces we publish mention some form of NFT rug pull.

Unscrupulous creators throw up these projects only to disappear within a few weeks or months after everyone has minted their collection.

Of course, they also disappear with a few million to show for their "hard work". All the while leaving behind a community of disgruntled investors who have handed over not insubstantial amounts of cash.

The problem here is that crypto works in a way that once a transaction has been made, there's no way of getting it back.

If you've ever sent money to the wrong wallet, you'll know how annoying it can be. When it's gone, it's gone.

So all these scammers need to do is put on a good show and make promises they never intend to keep.

It's like dressing the front of a store to look incredible and charging people to enter. Only for them to find there are no products when they've passed the threshold.

But that might all change soon.

A team known as Crypto Fighters have introduced the ERC721R standard.

Sounds fancy, but what doe sit mean?

This is basically a standard that can be built into smart contracts to allow refunds up to a certain time after the mint date.

It effectively brings a normal refund process to projects. Any buyers can return their minted NFTs to the smart contract and receive a full refund.

It's not 100% clear yet, but I believe that the project creators can choose the refund period length.

So what are the benefits of this?

The benefits of ERC721R can help both purchasers and project founders.

How?

The benefits to purchasers is obvious.

If someone pulls a Floyd and disappears as soon as the public mint is done, you can request a refund and not lose any of your cash.

Also, if the project under-delivers and the floor price drops below the mint price, you request the refund and don't sell at a loss.

What about project founders?

Well, this is going to be a huge increase in trust for projects.

Much like reviews and guarantees are on eCommerce brand sales pages.

Those little trust building elements can increase sales by up to 270%.

I'd imagine that stats would be higher in crypto as there's so little trust right now.

But by adding this standard to projects your project will be seen as more trustworthy and should have a higher sales rate.

And as your community will be aware of this, it should stop people panic selling and lowering the floor.

All in all, this is a huge stride forward in the right direction for increasing trust in crypto and NFTs.

Hopefully this will take a huge bite out of the BS rug-pull projects that seem to be the norm right now.

​


Crypto news

NY State Assembly Will Likely Ban BTC Mines That Don’t Utilize Renewable Energy

​

Gas fees are a pain in the arse.

What most don't consider though is why they're so high and the effect minting NFTs or transferring crypto has.

Gas fees are high because a lot of computational energy is needed to make changes to the blockchain. A lot of energy is used which means there's a lot of energy that needs to be created.

The problem there is that leads to an increase in carbon emissions. Obviously not ideal on a planet that's seeing serious climate change.

So, what's the solution?

No one knows.

But it looks like the NY State Assembly is trying to do something about it.

A new bill that's been passed will likely ban new Bitcoin mines that don't operate on renewable energy. There's also a 2-year moratorium on crypto firms that use carbon-based energy.

Obviously this has raised vocal suport and opposition. But why?

Let's run through it.

Why this might be a good thing

This is pretty obvious.

The massive energy usage of crypto is an issue. By moving people from carbon based to renewable sources of energy should have a positive effect on carbon emissions and climate change.

It also removes on of the primary arguments against crypto which should (hopefully) lead to more mass adoption.

Why this might be a bad thing

Is this really going to "clean up crypto", or will it simply be a reason for crypto brands to move base?

A lot of the crypto world is, sadly, focused only on profits.

If it becomes too expensive - either through a move to green energy or constant fines for not doing so - will brands continue to remain in NY?

Unlikely.

The more likely option is that these brands will simply move somewhere that welcomes them rtegardless of their carbon emissions.

So what do we do?

It's a tough question to answer.

While many would agree that this is the right way to go, it's only going to work if a substantial number of territories climb onboard with the idea and force brands to use green energy.

If there are a few holdouts that offer incentives for crypto brands to move their operation tot heir location, the entire approach will likely fail and leave places like NY State as a crypto wasteland.

Ideally we'd want to start with places like the UK and Dubai that have expressed interest in becoming crypto hubs.

​


Platform news

0x Labs Raises $70 Million Following Successful Coinbase Integration

​

When reading through this news I had to say "one of these things is not like the others".

The things were investors in 0x Labs who pumped $70MM into the brand.

Investors include Pantera Capital, Jump Capital, Opensea... and Jared Leto.

I guess he's taking a break from running a cult and crappy vampire flicks.

Still, it goes to show that there's a lot of weight the big players like Coinbase can throw around. In fact, after announcing the integration ZRX, the 0x protocol's native coin, soared by more than 50% to $1.10, its highest level since December.

I've got to say I'm happy for the 0x Labs team. Success should be celebrated.

My concern comes with how one brand's involvement catapulted this success.

Crypto is supposed to decentralize everything. And yet we're still building the industry and infrastrusture around a handful of major players.

We've effectively centralized the industry around a handful of key, large operators.

The bigger problem for me is that the decentralised exchanges or services I've seen simply don't have a good enough user experience to challenge the big centralized exchanges.

Until that happens, we're gonna be stuck in this weird purgatory between centralized services and full decentralization.

Still this is all a process and I think onboarding people through the centralized service sis key into getting everyone into a decentralized world.

What are your thoughts?

​


What's your take?

Win $100 of ETH!

​

​

Did you know we give away $100 of ETH every month to our lovely reviewers?

If you've used a Web3 tool, platform, or service and review it on DeRev, you'll be automatically entered into our free ETH giveaway.

It's 30 seconds of your time for a chance at $100 of ETH! Check out the full details below.

​


Get your copy now

Spot those crypto scams

​

​

Worried about the massive surge in recent crypto scams?

Get the guide we put together after analysing the most common scams, hacks and rug-pulls in Web3 in 2022 so you know exactly what to look for and avoid.

In it, you'll learn...

  • The simple steps to add extra layers of security that make your assets much harder to steal
  • How to analyse the founding members of new projects to quickly identify obvious rug-pulls
  • The dead giveaway tokenomic breakdowns that are huge red flags for new projects
  • Common indicators from influencers and community members that are found in almost every Web3 crypto scam

You'll walk away from reading this book with a checklist that gives you the confidence to spot obvious crypto scams, meaning you can invest in projects you trust.

If you've already got a copy, we'd love for you to leave a review!


​