Don't be blindly obsessed with "crypto big V", they may just want to cheat your money

Original source:The DeFi Edge

Compilation of the original text: The Way of DeFi

Original source:

Compilation of the original text: The Way of DeFi

This article talks about some KOLs in the encryption community, that is, the way big Vs make money. Some of them are normal profit-making methods, and some are cheating behaviors that harm others and benefit themselves. The author hopes that readers can better distinguish big Vs and don't blindly believe them.

In this article, let’s talk about how the crypto big V earns your money:

"Show me the incentive and I will show you the outcome." - Charlie Munger (well-known investor, Buffett's good partner)

(This sentence probably means, let me see the incentive, and I will give you the desired result.)

Why do big Vs always like to share some famous words?

This is important because only then will you not easily quit.

Next, I want to talk about some common business models used by these big Vs.

1. Related transactions

For example:

They promote a product and get a cut of every sale.

For example:

- Koinly Tax software has a commission for every transaction.

- Large exchanges have lucrative pull-in programs.

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2. Sponsorship

So they thought of big Vs.

Sponsoring feeds or speaking on podcasts are the most common options, usually for a flat fee.

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3. High-quality content

Big V will share information. But there's a lot of information they won't share publicly.

These are what they call premium content.

It's like some people will share some free photos on Ins, but you can't see more photos until you become their fans.

Here are some concrete examples:

a. Hourly consultations. They will call you and give you some investment advice or look at your portfolio and give an opinion.

b. Content Upgrades. Delphia Digital and Messari provide some high-quality content that is yearly or member-viewable, so that you can get deeper information.

d. Private communities (forum/discord/telegram). You can tap into a community, find out what they like about choosing a project, and sometimes even get some one-on-one time.

e. Community support or donations like Patreon.

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4. Transaction Flow

In return, the big V can buy the tokens of the project party at a price lower than the public price.

From the perspective of cost, it will always be like this: retail investors > big V > VC

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5. Verifier

The big V will promote a currency, and then call on you to join the pledge pool, so that they can get a certain percentage of the pledge fee.

I don’t know if you have noticed that some Youtube queens have been promoting ADA?

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6. Agreement

Some big Vs will start to work on their own projects, or join the teams of certain projects.

A big V who makes products can obtain many distribution channels. It's like a beauty blogger has created his own cosmetics brand.

I mentioned earlier how big Vs make money, and it sounds reasonable. After all, big Vs are not gods, and they have to eat well. However, there are always some big Vs who will squander the trust of fans in them. The next thing I want to talk about is that some big Vs use shady methods to make money or cheat money. These methods are all self-interested at the expense of others and should be resisted.

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1. Non-disclosure of interests

The big V kept bragging about how good the project was without telling him that he was receiving money. This makes it look like they're genuinely interested in the project, but they're actually just getting it right.

This is even illegal in some countries.

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2. Pull + smash

Then start touting the coin. At this time, the price has increased by 30%.

They started to smash the market and easily made a profit of 30,000.

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3. Pure scam

This refers to the fact that some projects fail to deliver on their promises. include:

- The lessons they offer are all copy-pasted and have no value at all

- NFT series with no plan at all

- Crazy blow some crap projects for money

Regarding whether a big V has a conscience, there are traces to follow:

- Does he only talk about projects he owns?

- After being blown away by the big V, how is the performance of this project?

- Has he publicly disclosed his holdings?

Also, know that some people share information with good intentions in the first place, but people change.

It's easy to say no to a $1,000 promotion fee, but what about $10,000? Or speaking of a bear market, their Lamborghini lease is up?

Ordinary people usually don't read white papers - so influencers have played an important role in the development of this industry.

High-quality content takes a lot of time, and the efforts of big Vs should also be rewarded.

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Advice to Big V:

- Be honest and be transparent. If you behave suspiciously, sooner or later you will be hammered.

- Build long-term thinking.- There are many legitimate profit models, no need to trade.。

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Zach's suggestion

So how does my website DeFi Edgelord make money?

Since opening this account, I haven't made any money.

This account is still very new. At this stage, I am more inclined to think about user growth and content writing.

At present, my biggest gain is traffic.

I have more social opportunities.

Invited to various private groups.

If I have any questions, the developers will respond in a timely manner.

(When my account only had 3000 followers, it was often ignored)

I'm getting closer to alpha because of this number.

This point is invaluable.

Of course, I will consider the issue of profitability in the future, but it must be through a win-win approach.

I would love to invest and build a world-class team of DeFi researchers.

Then see what opportunities are available.

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Having said so much, let me emphasize the key points again:

- Never blindly trust someone's advice. Think "what's in it for them".