As per John Burg’s anecdote, many projects are dubious and have ‘no evidence’ to support their claims. He and his colleagues conducted a search on 43 different blockchain projects in non-government, government contractor, and humanitarian aid space.
According to Burg, he examined righteousness of the claims such as: “operational costs reduced upto 90%,” and accurate and secure data capture and storage”. Thus a question arises here as to was there any verifiable, tangible evidence?
What are the evidences he found?
There were many spurious statements. They had a little evidence to prove the figures as legitimate or attainable. These companies had no framework. No matter they were succeeding or failing, evaluating their performance was not possible. The most troubling part was that the projects were completely opaque. Also, not willing to share their findings.
Usually, recent technologies undergo iterative evaluation. This technique helps principal investigators to build their success as well as learn from their failures. When it comes to evaluating technology in humanitarian projects, the Monitoring, Evaluation, Research, and Learning-in-development (MERL) framework is the best framework applicable.
Viewpoint moving forward
Due to the decentralized nature of these projects, exit scams, poorly executed ideas, and applications of blockchain that do not make any sense will continue to exist. Presently, these issues are amplified by regulatory uncertainty and partially anonymous nature of cryptocurrency.
In the upcoming days, if regulators wish to protect the public, it is necessary to increase their scrutiny of projects. Also, it is necessary for emergence of new high-quality information channels and for investors to become more aware about the constituents of blockchain project.
Ultimately the individual investors needs to take up the risk. When purchasing cryptocurrency or investing in startup is considered, due diligence becomes necessary. It is always better to take precautions and check whether the claims of the organization are legitimate. Also check whether the company is compliant with local and international laws and regulations and whether the company has best interests of investors in mind.
What are your thoughts regarding these projects with no evidence? Share them in our comment section. Have you come across such crypto scams? If yes do share your story on Coinpedia.