Why Crypto projects have started implementing Canary Networks and what benefits does that provide?
LONDON, UK, February 13, 2022 /EINPresswire.com/ — After the crypto market experienced an unprecedented rise in global market cap (over $2.5Ttrillion during 2021), an expanding number of so-called “meme tokens” have tried steeling funds from gullible investors. This leaves projects with serious intentions facing increased difficulties proving their legitimacy. Social Media channels are being flooded with scammers that try to convince users to invest in their scam projects where there is actually no use case, huge deflationary burn mechanisms and little or no use case given. So how do new projects distinguish themselves from those ill-intended projects?
Of course it is always the investors own obligation to do their own research but the scammers have become increasingly good at hiding obvious red flags and their presentations have become more and more sophisticated, making it much harder for the average retail investor to tell them apart.
One way to check if the project they are looking to invest in is a legitimate project, is to look at the blockchain the project is planning its release on. Following the huge upward trend in 2021, several blockchain projects have started to make use of a designated Test Network that acts as both a proving ground for Developers that plan to release their product and have a real environment to test their D’App before releasing it to the Main Network, as well as a rubber stamp to show their commitment to potential investors.
Both expending funds to make sure the project runs flawlessly before a full-fledged Main Network launch and giving investors direct insight to their development process make for good proof that the respective project is serious about their long-term intentions.
An example of such projects are Flare and the SwapDEX Ecosystem, both of which consist of a Test Network. The SwapDEX Ecosystem features its own Test Network (KUSARI) and the upcoming main network (SwapDEX). On the Test Network (KUSARI) Smart Contracts can be deployed and then – after sufficient testing – be scheduled for a full release on the main SwapDEX network in order to give interested investors an additional layer of protection.
With the crypto market cap expected to rise to new all-time highs in the not too distant future, projects are well-advised to implement additional security measures if they wish to gain trust of new investors. Although ultimately it lies with the individual investors responsibility to do their own research and decide which projects to invest in, making it easier for serious projects to be more easily distinguishable from scam projects is going to become an increasingly challenging task for up and coming Blockchain projects.