Mcdharyl Evra Why You Should Not Invest In Copy Cat Projects In The Digital Asset Space.
- I Comment
- Sep 16, 2024
- 2 min read
Cryptocurrency, coins, and tokens are simply code that live on a blockchain. If that code is open source it allows anyone who knows how to read and write that same programming language the ability to copy that coin or token. The reason why people invest in these copy cat coins or tokens (typically known as forks) is because they believe that these forks can yield the same result as the original coin or token that was copied. Unfortunately, just because a project has forked another project, it does not mean it will yield the same results. In fact, history has showed us that forks typically fail.
There are numerous reasons why a fork can fail. Some reasons include not having the same community size, not being ran by competent individuals, simply existing to be a low effort cash grab. There are many more reasons. Below are a list of copy cat/fork projects that are all down and lost investors over 70% of their investment.
#1 Pulsechain - PLS is a fork of Ethereum proof of stake, PLS is down 86% at the time of writing this post.
#2 Karlsen - KLS is a fork of Kaspa (KAS), KLS is down 85% at the time of writing this post.
#3 Velas - VLS is a fork of Solana, VLS is down 75% at the time of writing this post.
#4 WinkLink - WIN is a fork of Chainlink, Win is down 81% at the time of writing this post.
In conclusion, be wary and skeptical when it comes to investing in forks. Just because a project is a fork does not mean it will fail but as shown above, forks have a bad track record of success.
Thanks for reading,
Mcdharyl Evra
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