Recently a trading post appeared on Instagram in Hong Kong and sparked a conversation at an alarming rate. A user, identified as an insurance broker, openly documented how he attempted a challenge to roll up to HK$1 million in the trading market with a principal of HK$7,000. This in itself was eye-catching enough, but what was even more striking was that on only the 10th day of the challenge, he announced in a high profile that he was opening a paid group with a membership fee of HK$10,000 and a banner that almost defied market common sense - "100% Guaranteed Profit" - and he even promised to refund the membership fee if the follower loses money within three months. Even promised to refund the membership fee if the follower loses money within three months.
ICO, DeFi, NFT... Web3 World's "Getting Rich" Narrative and FOMO Emotions
To us in the world of Crypto and Web3, this viral spreading speed and the strong temptation of "low capital, high return" in the story, does it not give us a sense of familiarity? Think back: from the early days of ICO mania, to the myth of DeFi's Liquidity Mining, which often boasts an APY of thousands or even tens of thousands, to the legendary story of a JPEG image rising a hundredfold from the Floor Price in the NFT world.... ... We have witnessed how countless information (whether true or false) has spread at the speed of light in Telegram groups, Discord channels, and Twitter, easily igniting the FOMO mood of the community. The narrative of pursuing 10x, 100x, or even higher returns is information that has been deeply imprinted in the DNA of Web3 explorers. Rapid iteration, explosion of information, high risk and high potential return - this is the daily life of our environment.
That's why this seeming case of the "trading gods" deserves to be scrutinized through Web3's "magnifying glass". It's not just a social media sensation, but the underlying maneuvers, publicity patterns, and mass reactions are strikingly similar to what we've encountered over and over again in the on-chain world.
This article will not only relay this story, but also analyze the underlying patterns from the perspective of a Crypto / Web3 content creator and participant - the "danger signals" and potential risk traps we need to be wary of when facing new projects, new tokens, and new "Alpha Calls". Through this vivid case study, let's sharpen our vision of recognizing real opportunities (Alpha) and potential scams (Scam), and learn how to walk more soberly and safely in the jungle of Web3, which is full of opportunities and traps.
Similar stories of riches are common in the Web3 world, where strong FOMO (Fear of Missing Out) sentiments are easily triggered by viral spreads.
Demystifying the "Greatest Hits": 4 Dangerous Signals under the Web3 Magnifier
I. 100% Guaranteed ProfitIt's like unaudited, high APY, unsustainable Ponzi structures or projects with flawed token economic models. In a decentralized world, "guarantees" are often just empty words, and the promise itself is the biggest wake-up call of all. In a financial market where volatility is the norm and risk is everywhere (whether TradFi or DeFi), any form of "100% Guaranteed Profit" is highly suspect. It's like you're always at a new gain with an equal or higher risk. Remember the old adage: if a gain is too good to be true, it probably isn't.
II. "$10,000 membership fee on the 10th dayAt the same time, this behavior does not make sense. The goal is a starry one (1 million), but the action is very "pragmatic" (charging on the 10th day). If his trading strategy was really so effective, he could have achieved his goal first and used real data to prove himself. In a decentralized world, we are taught to "Don't trust, verify". With this kind of unrealistic achievement, he can prove himself first, and then consider the realization of knowledge, which may be more convincing and can charge higher fees. The premature charging of fees makes people wonder about his real purpose - does he want to make everyone rich together, or is he eager to put his followers' money into his own pocket?
"$10,000 on the 10th day."It's also similar to some Web3 projects that rush to start a high threshold, high valuation Seed / Private Round when the product is not yet ready, the concept of the white paper is vague, and there is not even a usable test network. With a project based on a flashy white paper, they paint a grand blueprint for early investors and collect a large amount of capital, but whether the project can be successfully delivered and whether the tokens have any real value are huge unknowns. Under this model, the project owner first locks in its profits and working capital, leaving the biggest risk behind, and without even the most basic Testnet, it starts a highly valued Initial Coin Offering (ICO) or early stage Private Sale. Their roadmaps are all over the place, but the actual delivery is nowhere in sight. This is not uncommon in the Web3 world.
iii. in respect of the "Loss Refund Fee".This commitment sounds like an "insurance policy" for the participants and seems to reduce the risk. But upon closer examination, there are many loopholes. First of all, the refund is the "membership fee", not you follow the single operation of the loss of the principal. Its real purpose is to lead us to common wealth, or as soon as possible to followers of the funds locked into their own profits, to transfer the risk of subsequent failure? You may lose tens of thousands of dollars or even more in trading because of his advice, and in the end, you can only get back at most $10,000 in membership fees (if he will really refund them). Secondly, what is the definition of "loss"? How is the timeframe (3 months) accurately calculated? How can the follow-up operation be verified? This is just like some program providers verbally promising to "Buyback & Burn" to support the price of tokens and give confidence to the community when the price of tokens drops, but they never guarantee that you will be able to sell your tokens at the buyback price, let alone compensate you for the actual losses you have incurred.
IV. The 'Transaction Record' He Shows on ThreadsThe records are not independently verified by a third party, either in the form of screenshots or textual descriptions. Are these records authentic? Is it possible that the "trading history" is not verifiable as Paper Trading? Are profitable trades selectively shown while losses are hidden (survivor bias)? In the absence of credible evidence, these records are highly unreliable. This also serves as a reminder that at Web3, we need to use blockchain browsers (e.g., Etherscan, BscScan) to check an address's real transaction history, asset holdings. On-chain Data Transparency, Openness, and Non-Tamperability We promote the transparency and non-tamperability of on-chain data. A project's user growth, transaction volume, and fund flow can be reviewed through a blockchain browser (e.g., Etherscan) or a data analytics platform (e.g., Dune Analytics, Nansen), and this data is an important basis for us to determine the trustworthiness of a project or an address.
Quick Summary:
- "100% Guaranteed Profit" is an illusion: market volatility is extremely high, and the "guarantee" itself is the biggest risk warning.
- The 10th day that the charge of anomalous behavior: if the strategy is really effective, should rely on the actual performance of the words, premature charges suspected of cutting leeks.
- The loss-refund system is riddled with loopholes: refunds are not principal reimbursements, are vaguely defined, and offer little protection in practice.
- Lack of independent validation of transaction records: no confirmation of their authenticity and comprehensiveness against the validation of data in the chain.
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Professional Background in Doubt: From Insurance Brokers to Trading Guides, Qualifications of KOL Shouting
We respect everyone's career choice. Insurance brokers specialize in risk assessment, insurance product planning and sales. Although it also involves financial management concepts, it is significantly different from short-term trading and derivatives operation, which require a high degree of professional knowledge and experience. Does he hold a relevant financial license to conduct investment advice or asset management? If not, his act of providing trading guidance at a fee may involve unlicensed operation. This reminds us of something that happens in the Web3 world: some KOLs with a large number of fans in other areas (e.g., entertainment, lifestyle) suddenly start to promote a complicated DeFi deal or NFT program, or even "call out" a small, obscure currency. They may have huge traffic and fan bases, but their professional judgment and accuracy of information are questionable.
Insurance brokers lack a professional background in trading and financial licenses, similar to the KOLs that are commonly used in the Web3 world to promote their projects.
Your hard-earned money, his "admission ticket"? Refuse to be a stepping stone to wealth freedom.
Imagine your hard-earned money, or the ETH, BTC, or stablecoin that you've managed to save from market fluctuations, blindly invested in a high-risk unknown game just because you believed in an unproven "god" and a seemingly attractive "guarantee". The $10,000 membership fee may just be a ticket for others to realize "financial freedom", what really makes your heart ache is to follow the operation and watch the figures in your wallet shrink dramatically, or even go to zero. The feeling of being "cut leeks" - chagrin, remorse, disappointment in the market, and even doubt in oneself - is definitely not something we want to experience. Protect your assets, and refuse to become a stepping stone for others to realize "financial freedom".
Following unproven KOLs can lead to significant loss of assets and become a stepping stone to someone else's "financial freedom".
Gambler vs Smart Money: Which one do you choose to be in the Web3 world?
Web3 is full of possibilities for amazing returns, but true "Alpha" (excess returns or early information) is never easy to come by. It doesn't come from blindly following some self-appointed "prophet", but from solid, consistent effort. The path may be slower and require more patience and wisdom, but it leads to sustainable growth and the realization of what is truly yours. Wouldn't you like to be the smart investor who can independently explore the next potential project instead of always chasing after someone else's call?
There are two kinds of people in the Web3 world: the gamblers who are caught up in market sentiment, chasing the market up and down, and always swinging between FOMO and FUD; and the ones who keep a cool head, think independently, and are disciplined enough to find the signal in the noise.Smart MoneyWhich one do you aspire to be? Which one do you aspire to be? The latter not only means the possibility of better returns, but also represents the light of reason, independent judgment and a sense of control over one's own behavior. In a market full of temptations and pitfalls, being a "Smart Money"In itself, this is a very attractive goal. To free oneself from the state of being manipulated by emotions and to become an awake and independent being in the market, this inner desire for growth deserves to be magnified.
In the face of endless new concepts, new programs and new scams, the best weapon is knowledge. Eager to learn more about the underlying technology of blockchain, smart contract operation, DeFi, NFT, macro-economics and cryptocurrency linkage, wallet security operations, etc., every time you learn, you are adding bricks and mortar to your Web3 survival and development. Knowledge not only helps you identify opportunities and avoid risks, but also gives you the courage to think independently and the confidence to traverse bulls and bears. The desire for knowledge is the desire for self-improvement and control of the future.
Real gains come from research and hard work, not from blindly following someone else's calls.
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Web3 Survival Rule: 4 Actions to Keep You Awake and Avoid Pitfalls
I. DYOR (Do Your Own Research)!
This is Web3's number one golden rule, and it's a timeless truth. Do your own thorough due diligence on any investment opportunity that tempts you, especially one that promises ridiculously high returns. Don't believe in any "KOL" or anonymous "god's" words. Read the project's website, read the white paper, check the data on the chain, browse the community, and form your own judgment. Understanding what blockchain is, how smart contracts work, how DEX is traded, how hot and cold wallets work, the importance of private keys, common phishing and authorization scams ...... These basics are the "life jackets" you need to navigate the Web3 world safely. The more solid your knowledge, the less likely you are to fall for fancy concepts or scams. When looking for information, give preference to media outlets, research organizations, data platforms, renowned developers, or analysts with solid backgrounds who have been in the industry for a long time, have good reputations, and provide in-depth analysis rather than simply shouting lists. Stay away from anonymous "get-rich-quick" channels that only create FOMO and lack substance.
Second, question all "guarantees"! Zero risk = high risk!
In the decentralized, highly volatile world of cryptocurrencies, words like "guaranteed profit", "guaranteed profit", and "loss recovery" are almost certainly 100% red flags. Remember, risk and reward are usually directly proportional. Behind any "good thing" that appears to be zero risk, there may be a huge trap. Keep a healthy dose of skepticism.
Third, control the risk and manage the position! Preserve the principal!
This is a fundamental part of investing, and it's especially important in the Crypto world. Never invest money you can't afford to lose. No matter how tempting an opportunity may seem, keep your positions tightly controlled according to your risk tolerance. Even if you want to "give it a try," keep it small. Stay alive for the next real opportunity.
Stay alert and report suspicious behavior! Build a safe community together!
When you find a suspected scam, group or KOL, don't be silent. Report it to the platform, share your findings and warnings in the relevant community (be careful to provide evidence and avoid FUD), and help more people to avoid being scammed, while complying with the platform's rules. This is part of the spirit of community building at Web3. In this emotionally-driven market, if you have ever felt confused or skeptical, or if you are looking for a community where you can learn together, remind each other, and avoid stepping into the traps by mistake - you are cordially invited to join us, and together we will become "Smart Money" with independent thinking and risk awareness.
Disclaimer
The content of this article is for reference only, investors should exercise independent judgment, invest prudently and at their own risk, this article does not provide or attempt to persuade the audience to do trading or investment basis, the content is for sharing purposes only, and should not be regarded as investment advice.It does not represent the views and position of Monsterblockhk.All information and opinions are current as of the date of the judgment. In addition, if a judgment is rendered on aIn this siteAny content related to virtual asset trading platforms that have not yet obtained a license to operate virtual asset trading platforms in Hong Kong, including but not limited to text introductions, pictures, offers, events, etc., are only available to users outside the Hong Kong Special Administrative Region.
According to the Hong Kong Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, after June 1, 2023, all centralized virtual asset trading platforms operating in Hong Kong or actively promoting their services to Hong Kong investors will be licensed and regulated by the SFC, and any related unlicensed activities will be a criminal offence. For more information and details of the legislation, users may refer to the SFC website.