The exciting and volatile world of cryptocurrency can make one person a millionaire and another completely broke.
The criminal behaviour of crypto leaders such as Sam Bankman-Fried, CZ and others does not improve the image of an industry that has a problem with greed.
In this article, we look at the causes of the ‘greed is good’ mantra and what can be done about it.
Here goes…
The Temptation of Quick Gains
Unfortunately, the average crypto head is inherently greedy and is often chasing quick gains at any cost.
The potential for exponential growth hoovers in a mindset that is compelling and at the same time ruinous.
The greedy mindset can foster a mentality where hyped-up investors often have a fear of missing out (FOMO) and go all in with their capital in the hope of making it big with one bet.
These mindsets can lead to the chasing of irrelevant “meme coins” or hyped projects that offer no intrinsic value to the market.
Speculative Behaviour and Market Manipulation
Greed can cause unscrupulous founders to take advantage of speculative behaviour. Pump and dump schemes, where the value of a cryptocurrency is artificially inflated through coordinated buying.
Once the coin has reached all-time highs all the speculative investors have gone all in with their money. Then the often anonymous founders sell their holdings leading to an almighty crash in the value of the coin.
Everyone apart from the early adopters loses money. This behaviour erodes trust in the industry and undermines the integrity of genuine projects.
Ponzi Schemes and Fraudulent Projects
In the crypto space, greed often manifests through Ponzi schemes and fraudulent projects promising unrealistic returns. Scammers leverage investors’ greed by offering high-yield investment opportunities or “guaranteed” profits, preying on the desire for wealth without effort.
Greed often manifests through Ponzi schemes and fraudulent projects often promising unrealistic returns.
In 2020, there where a string of major crypto projects falling like dominoes. Trading platform Voyager, Celsius, Terra Luna, BlockFi, 3 Arrows Capital and eventually the collapse of FTX and Sam Bankman-Fried, the dethroned ‘King of Crypto’ who has been sentenced to 25 years (2024) for fraud.
These schemes ultimately collapse when new investor funds dry up, leaving unsuspecting participants with substantial losses.
Furthermore, the founders of these schemes build up cult-like followers who support the fraudulent projects with ‘diamond hands’, meaning they will never sell. This leads inevitably to their most loyal investors losing everything.
Psychological Factors at Play
Greed in crypto is also influenced by psychological factors such as cognitive biases and herd mentality.
The fear of missing out on the next big trend (FOMO) can drive impulsive investment decisions, while cognitive biases like confirmation bias can lead investors to seek information that confirms their preconceived notions of profit potential.
The resulting herd mentality can amplify market movements and contribute to speculative bubbles.
This psychology will often lead to investors ignoring genuine, less risky projects in favour of speculative projects that can ‘go to the moon’ or 100x overnight.
What To Do About Greed In Crypto?
To counteract the negative impact of greed in crypto, a shift towards responsible investing is essential. Here are some strategies:
- Education and Awareness: Educate potential investors about the risks of greed-driven speculation and promote informed decision-making.
- Due Diligence: Encourage thorough research and due diligence before investing in any cryptocurrency or project.
- Long-Term Perspective: Advocate for a long-term investment horizon based on fundamentals rather than short-term gains.
- Regulatory Compliance: Support regulatory measures that promote transparency and investor protection within the crypto industry.
- Community Accountability: Foster a culture of responsibility and accountability within the crypto community to identify and expose fraudulent activities.
- Discourage the growth of cult-like leaders and the tribal nature of their followers. (it’s ok to support more than one project on different blockchains).
- Encourage Diversification: Investors should only invest a small fraction of their net worth into crypto. Going ‘all-in’ with the hope of making it big is not a good strategy.
Final Thoughts
Greed is a natural human impulse that can lead to impulsive decision-making if left unchecked.
The ironic thing is that crypto is a technology that can genuinely change the world and has the potential to offer financial freedom to many across the globe.
Unfortunately, without the curbing of greed in the industry the reputation will be destroyed and the resultant regulation will be prohibitive to new genuine businesses.
The stifling of an industry with so much potential will cause founders to leave the sector and concentrate their efforts on more reputable and less onerous endeavours.
By promoting responsible investing practices, fostering transparency, and advocating for safeguards, we can mitigate the risks associated with greed and foster a healthier, more sustainable crypto ecosystem—one built on principles of integrity, trust, and genuine innovation.
Good luck!
The Problem
The problem is, out of all start-ups launched, less than 1% ever receive external funding to realise their dreams. For ethnic minority founders, the figures are even lower, with less than 1%, of those 1% of founders finding success.
We launched Pop Up World and (PUW) to address these important issues. Services like our Investor Connector aims to connect start-ups with VCs and Angel Investors but we need to do more.
We want to make it easier for start-ups to launch and grow. We strongly believe that small businesses are the lifeblood of all our communities.
Unfortunately, in recent times small businesses have come under attack following the response to Covid and the cost-of-living crisis.
The Pop Up World project aims to make it easier for start-ups to access funding and essential services.
The Solution – How to get involved?
We have created a platform for start-ups and investors that can be supported by the community. There are numerous ways a supporter can participate:
1. Supporters can participate by holding Pop Up World Tokens (PUW). Start-ups can utilise Pop Up World Tokens to access services on the platform, therefore reducing available supply. Over time this should result in appreciation of the value of PUW Tokens for supporters and holders of the PUW Token. Pop Up World Tokens are available on the four main DEXs on Cardano: Minswap, Muesliswap, Wingriders and Sundaeswap. (Click the images below to access the token):
2. Supporters can also earn rewards by staking in the Pop Up World Stake Pool (PUWSP). Delegators to the pool receive 40% of the rewards should we mint a block. The remaining 60% will be used to support exciting new start-ups and projects on the platform. https://popupworld.co.uk/popupworldstaking
3. Supporters can also support the project by purchasing our limited edition NFTs Zero To Superhero. These NFTs are ingrained in business history due to the trade mark dispute with multi-billion-dollar media company Marvel & DC Entertainment Inc which was won by the Pop Up World founder Graham Jules. These NFTs are super rare and when they are gone, there will be no more minted! https://www.jpg.store/PopUpWorld?tab=listings
4. Supporters can support the project by investing in exciting memberships. There are two levels of membership. Premium and Standard Membership. Becoming a member will give you Pop Up World Tokens (PUW), exclusive merchandise and access to special events, promotions and NFTs. To register your interest visit: https://www.popupworld.co.uk/popupworldtoken
It’s important to make clear that these services are not a projected roadmap and are LIVE as of today! This is a fully formed project that we aim to grow and refine with feedback from the community.
Hope to welcome you aboard!
Pop Up World
***Disclaimer: This article is not financial or legal advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
Pop Up World YouTube Reviews:
Review. Malik Atif – Hindi -Urdu
Review. Inside Crypto – Hindi – Urdu
Review. Convincing Crypto – English
The Pop Up World Token is designed specifically for entrepreneurs, to store value and to utilise on our platform Pop Up World. Join the revolution in financial freedom today.
Get the token on Cardano Decentralised Exchanges (DeXs), MuesliSwap, SundeSwap, Wingriders and Minswap. Or click the link here:
Pop Up World token has a growing ecosystem
Earn and help support the Pop Up World Blog and entrepreneurs worldwide by joining our Pop Up World Stakepool! Go to https://popupworld.co.uk/popupworldstaking
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Want to learn how to stake on Cardano? Read this article:
It starts with an idea. Pop Up World is a platform that helps start-ups and small businesses reach for the stars. No matter what size you are. Use our start-up guide Business Zero to Superhero, Design your Logo. Connect with investors via our Investor Connector. You can start a Website and Domain name. You can Search for and promote your Premises. You can promote your idea for free on our Pop Up World Ads site, you can even form a Limited Company You can also join us on our journey via the Pop Up World Token (PUW).
***Disclaimer: This article is not financial or legal advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
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