I think the blockchain market has matured enough for me to make the following statement:
“If you build your project on the Ethereum ERC 20 token, then your project should be a fully realized working product when launched.”
The whole point of the ERC 20 platform was so that blockchain developers could focus on their own project instead of having to worry about building out their own network and blockchain and all the issues and costs associated with that.
That way, project developers could focus all their attention on the project itself and developing a real working product that is ready to go as soon as it is launched on top of Ethereum. It was meant to give them a huge head start so that working projects could be launched immediately.
But instead of that, we now have countless projects that are launching on the ERC 20 token but they don’t have a decent working product. In which case I ask, what have the developers been spending their time on? They’re probably spending all day refreshing Coin Market Cap and being amazed at how much money they made by just cobbling some weak idea onto an ERC 20 token.
So for example, let’s take a look at the popular and much hyped project called Polymath. This ERC 20 based token looks to be the go-to source for projects looking to put out security based ICOs. They promise to take care of all the legal issues and keep projects compliant with all laws using a system of smart contracts and through the issuance of their own ST 20 token.
That all sounds great and maybe it can be done. But what the hell have the guys at Polymath even been working on? They didn’t need to build out a blockchain or their own network, so they should have had plenty of time to build a project that is very nearly completed, right? Wrong, instead a look at their GitHub page shows a project that is merely a few hundred lines of code and a few basic smart contracts.
Nothing with the project even does anything yet. So this project shouldn’t even be a traded token at this point, not after being built on the ERC 20 token. Virtually anyone can just copy this project at this point in less than 10 minutes. The only thing they would be missing is the huge sums of money that Polymath spent buying ads all over the place, doing an airdrop, and paying for shills.
Now look, I’ve singled out Polymath since it’s the newest of these phony over-hyped tokens. There is nothing there, and all they have is being first with the idea, but no technology that is either impressive or outside the reach of anyone to copy in 5 minutes. But so many ICOs and coins have this same problem. And as I said before, my biggest issue is they are based on the ERC 20 token, which gives them no excuse for not having a working product already.
Too many of these projects and investors are treating ERC 20 tokens as a built from the ground up technology, but that’s not how it works. They are taking advantage of the ignorance of investors who don’t realize how poorly fleshed out their ideas and projects are because people still think blockchain is some mysterious black art that only a few people know how to code.
Bottom line is this, if an ERC 20 token based project doesn’t have a working product yet, it is scam coin. We are too far along in blockchain tech to fall for that anymore. Sure you can make money trading them short term if you want to, but they are fake products and fake blockchains technologies.