CaptainCryptos is a Twitter page that deals with cryptocurrencies by promoting legitimate projects and raising the alarm about scams. Its relevance lies in the fact that there are many scams concerning cryptocurrencies where malicious people rob the innocent of their hard-worked money. The scams reduce the legitimacy of blockchain and, thus, reduce the number of people interacting with the real useful projects. Consequently, they do not get to enjoy the full benefits of blockchain.
The page has a strategy to verify the legitimacy of crypto. The first step entails checking on whether the crypto has a verified team. The step is critical because while it is easy to come up with a fraudulent scheme as an individual, it is difficult to pull one with a team. Also, the page goes further by checking on whether the team is verified on social media sites.
The second step comprises an anti-rug check. A rug pull is when a crypto creator does a project with valuable tokens, listing it on the decentralized exchange, and later on, maliciously pulls it out after people buy in. Furthermore, the tokens are typically paired with reliable tokens, such as Ethereum, and therefore, unsuspicious people swap their tokens for fake ones. The advantageous point of crypto, decentralization makes it easy for rug pulls to happen as there is no principal oversight. Some of the signs of a possible rug pull include extremely high yields and the anonymity of the creators. Thus, the first step of verifying the team is a vital phase in preventing the rug pull.
The third phase is all about checking for a locked liquidity pool. A liquidity pool is created when the crypto token developers bring their funds together to allow instantaneous buying and selling. There will be a significant delay as the creators wait for others to buy and sell without the pool. Consequently, it is a safety feature that shows the seriousness of the developers. Tokens with unlocked liquidity pools or locked pools for a relatively short time, such as less than a year, raise questions on the validity.
Then, the Twitter page goes a further step in the verification by considering the project’s uniqueness. CaptainsCrypto understands the importance of distinctiveness in the blockchain world. Every new project must bring something new to the market to show commitment to the long-term game. Following that, the new century is ushering in Web 3, valid developers will not waste time on a washed-out concept. Moreover, informed investors will stick to the original tokens, and therefore, only newbies will look into the scam. For example, suppose someone comes up with another Bitcoin with similar features. There is a high probability that the developer is not serious and simply looking for a way to make quick cash by not putting in the real effort required to come up with something new.
The last step entails checking the crypto’s community engagement. All valid cryptos have a thriving community where people discuss issues concerning the token, thus increasing its visibility among mainstream consumers and allowing for a thorough understanding of complex issues. The first is that it increases trust as there is transparency in information sharing. Through the community, the people will get accurate, quality, and verifiable information. A community comprises extremely well-informed people who can verify some facts by breaking down complex facts into more understandable ones and allowing for growth in trust. These people will point out issues, concerns, and ideas that affect the project that could easily be overlooked without a community. Consequently, there is an added advantage of making better, well-informed decisions.
After conducting the audit, CaptainsCryptos checks whether the crypto meets the criterion. It gives a score out of 5 and marks those with 0/5 as scams. For example, the Twitter page stated that the Free Cake is a scam, despite it trending on CMS. The tweet attracted more than 600 likes and 1700 retweets, with commentators thanking the page for the review and others calling for Free Cake to improve the failing features. However, some were offended. Nevertheless, the massive reach shows the power of the page as it prevented all those people from falling for a scam that would have lost lots of money.
Final Thoughts
Twitter is a useful social media site that people can use for educative purposes. CaptainCryptos has taken the mandate to help people by advising people on which crypto tokens to pursue and which to be aware of based on a five-step plan. Hopefully, the page attracts more followers to increase the scope of its benefits.
