Differentiating a Purpose-Driven Blockchain Project from a Rug Pull

Blockchain technology has become one of the most transformative digital technologies since the inception of the internet. It is a decentralized online ledger that enables users to create algorithms that can work in coordination across a network of computers, which autonomously verifies and validates transactions that are then recorded on this digital ledger.

Blockchain technology has been largely associated with bitcoin, but it is proving immensely useful beyond its use for virtual currency exchanges. In fact, blockchain technology is already being used by some companies in practically every industry to speed up business processes and reduce fraud risk. A recent report estimates that over 30% of banks will be using blockchain technology by 2020.

Blockchain also offers unique advantages as an aid to cryptocurrency security; as one expert noted, “By storing data across its peer-to-peer network, the blockchain eliminates the risks that come with data being held centrally.”

However, as with any new technology, there are also potential risks associated with blockchain projects. For example, because blockchain is still in its early stages of development, it is often used by start-ups and small businesses that may not have the experience or resources to properly manage a project of this nature.

Additionally, some projects may be created solely for the purpose of raising funds through an initial coin offering (ICO), rather than to actually create a functioning product or service. These “rug-pull” scams can result in investors losing all their money when the project turns out to be a fraud.

So how can you differentiate purpose-driven projects? Let’s talk about it

What is a Rug Pull?

A rug pull is when a project creator abandons the project and takes all the money with them. This is done by either withdrawing all the funds from the project’s treasury or by selling all the project’s tokens on exchanges for a large profit.

There are a few ways to identify a rug pull:

The team suddenly disappears: If the team behind a project suddenly stops communicating, it’s likely that they have pulled a rug.

The project has no working product: If a project has been around for a while and still doesn’t have a working product, it may be because the team is waiting to pull a rug.

The project raises red flags: If a project raises red flags, such as having a lot of pre-mine or not disclosing team information, it’s likely that the project is a rug pull.

What is a Purpose-Driven Blockchain Project?

A purpose-driven blockchain project is a project that is created for a specific use case and has a working product. The team behind a purpose-driven blockchain project is usually transparent and communicative, and the project itself doesn’t raise any red flags.

How to Differentiate Between the Two?

The easiest way to differentiate between a rug pull and a purpose-driven blockchain project is by looking at the team behind the project. A rug pull will usually have a team that is not transparent or communicative, while a purpose-driven blockchain project will have a team that is active and open about the project’s development.

Additionally, a purpose-driven blockchain project will have a working product or be close to having one, while a rug pull will not have any working product at all.

Finally, you can also look at the project itself for signs of red flags that might indicate it is a scam. Overall, if you do your research and use common sense when evaluating blockchain projects, you should be able to easily tell whether it is a legitimate project or a scam.

NFTMe™: A Purpose Driven Blockchain Project Protecting Ownership Rights

Now that you know what a purpose-driven blockchain project is and how to differentiate it from a rug pull, let’s take a closer look at NFTMe™, a blockchain project that seeks to protect ownership rights for digital assets.

NFTMe™ uses smart contracts to provide users with complete control over their digital assets, such as video game items or artwork collections.

The team behind NFTMe™ is committed to transparency and communication, regularly posting updates on the project’s development progress and seeking feedback from users.

Additionally, we have made it our goal to protect ownership rights for various creators by allowing them to use our app to search for their work online and tokenize them into NFTs so they can maintain control and prove their ownership.

What sets NFTMe™ apart from other purpose-driven blockchain projects is our commitment to protecting ownership rights for all digital asset creators. We believe that everyone should be able to control and benefit from their creations, and we are working hard to make that a reality. If you are looking for a blockchain project that is actually making progress on its goals, then we invite you to check out NFTMe™.