The amount of people looking for easy money is insane these days and some of those guys have found themselves doing their routine actions and earning money for that, using Do-To-Earn crypto projects. How is that possible and what are the reasons for such success - all that in the article.
What is Do-To-Earn?
Do-To-Earn is basically a service, that pays you cryptocurrency for doing some actions, whether it is working for the project or doing your routine affairs like walking or watching YouTube.
The value for regular users
Everyone, who is new to the crypto market only finds Do-To-Earn as a way of making quick money. They don’t expect to earn millions, but are usually inspired by the trend and want to hop on it as well. Marketing, such projects, increases the will to play even more and all that makes for a great community, that are highly interested in the project and are not biased about the tokenomics or technology - quite a loyal audience.
Do-To-Earn assets are also a kind of meme coin, that only rely on trends and don’t have anything to do with the overall ecosystem. That is why investors have invented a new strategy for holding the value of their crypto assets during the bear runs - they simply transfer them into Do-To-Earn tokens, that are having an uprising trend and let those sit until they see the trend going down requiring them to quickly change their assets into some new trendy project.
Let’s take a look at one of the most popular Do-To-Earn projects up to date - STEPN.
How it works
The only thing you have to do is to walk and satisfy your everyday physical activity needs. Getting money for getting fit sounds great, but we are missing one important detail…
Where does that money come from?
And that is the main reason for all those projects collapsing in the near future. Developers aren’t that stupid or generous to simply pay people for doing their exercise and don’t get anything back. Every project that utilises the Do-To-Earn scheme and requires an entry fee is just and updated and a more fancy way of creating a financial pyramid.
In such projects most of the initial investments are being used for advertising, making thousands of people put their money into the project. The second step is to simply make an algorithm for dividing all that money between the users and keep in mind that you have to give the most active ones privileges. Just like in any financial pyramid you would also get rewarded for bringing friends because by the end of the day the more people invest into the project - the more money founders get.
Not only that…
The amount of Do-To-Earn projects is as big as the chance of being scammed. Some could just steal all the project’s coins you have bought, some might decrease the value of those coins artificially and some might even ask you for details of your crypto wallet, allowing them to take full control over all the coins held there. Anyway, neither of those options sounds good.
We hope you found this article useful and have a better understanding of what Do-To-Earn actually is. We are always trying to be as unbiased as possible, but the amount of scam cases has increased significantly during the Do-To-Earn hype, so we had to take our shot on the topic. Stay tuned!