The Siren Song of Big Crypto Profits
It was early 2022 and crypto mania was in full swing. Stories of kids becoming filthy rich with strange digital assets called NFTs and meme coins were inescapable. As a newbie, I got caught up in the gold rush, blinded by visions of rewards from this strange new digital world. I started looking for the next big crypto score that could make me rich.
That’s when MetaBlaze ads appeared in my feed. Their marketing pushed all the right buttons: an immersive World of Warcraft-style metaverse filled with orcs, elves, dwarves, and gnomes, brought to life through MetaGoblins and their exclusive MetaRoyals NFT collections. They boasted cutting-edge blockchain technology and a founder’s story of overcoming crypto scams of the past to launch an ambitious and transparent Play-to-Earn platform.
It all seemed too good to be true: a $4 million pre-sale fundraising campaign that was gaining momentum even during the bear market, a fully transparent team with Certik Gold Badge KYC and auditing, a large supportive community, and even The friends and family of the founders deeply invested. At the 2023 NFT.NYC event, the team sponsored the event and hosted an escape room gaming experience using the MetaBlaze concept, seen by hundreds of visitors who were greeted by the founding team themselves. At this point, it was all in.
The sobering reality: More than $XX,XXX… Poof!
A year later, my investment in MetaBlaze has turned to crypto ashes. More than $4 million raised from investors around the world inexplicably evaporated before anything was released. Not only was there nothing left for the much-publicized liquidity fund. The entire $1.6 million liquidity supposedly locked up for the launch of a decentralized exchange had been diverted to black hole development costs. My portfolio today shows billions of worthless MetaGoblings and MetaRoyals along with a thick folder of broken promises and heartaches.
Whether due to poor rank management or more nefarious reasons, my painful experience with MetaBlaze’s spectacular implosion has taught me some difficult but incredibly valuable lessons about investing in this volatile blockchain space. Hindsight is 20/20, but foresight is precious:
Lesson 1: Don’t invest too early – patience pays
No matter how attractive the pitch is, avoid falling for early investment opportunities without any progress or tangible users. This is difficult in the case of cryptocurrencies, where hype encourages putting money behind vague ideas and promises. But let’s exercise restraint: let’s at least wait until we have a minimum viable product with real utility and evidence of an imminent launch before risking capital. Investing in the days before actual takeoff gives you drastically better odds.
Lesson 2: Lean on Launchpads’ proven processes
For inexperienced cryptocurrency investors, the additional scrutiny and research of major launch platforms is invaluable. Their selected project groups represent opportunities carefully vetted by professionals who are experts at separating sophisticated startups from potential failures. Seek the guiding hand and protection of a reputable launch pad.
Lesson 3: DYOR is not optional – it is an investment imperative
No amount of marketing glitz, founder influence, or promised perks can replace a team’s ability to launch and maintain a product that actually works. Badges like being “doxxed” and passing security audits are good checks in the positive column, but they in no way guarantee viability. Do your research thoroughly. Check the experience of each team member and judge the qualifications for the job for yourself. Don’t trust what they tell you. Trust what you know.
The School of Hard Knocks appreciates your registration
There were many important lessons from mine and also from other failed pre-sale investing experiences. But in this article I wanted to focus on those that are less talked about.
There is no way to sugarcoat how much my expensive tuition at the School of Hard Crypto Knocks has hurt me. But the lessons have been invaluable in shaping how I now approach space.
Going forward, I will stick to the fundamentals: invest patiently, do thorough research, and never again chase feverish get-rich-quick cryptocurrency fantasies based on hype and empty promises. There is still plenty of money to be made in this volatile space, but it will be made through methodical investing, without falling into the obvious newbie pitfalls.
I hope that sharing the painful details of my humble experience can help others identify and avoid similar pitfalls as they navigate the limitless opportunities and risks of the blockchain frontier. Thanks to MetaBlaze and MetaGoblings everywhere, my education has been paid for. Class is now in session!
