So, it was at the beginning of the emergence of the crypto industry, but then human nature intervened. The already narrow circle of companies involved in the crypto industry distributed financial flows among a narrow circle of companies and, accordingly, people began to generate fake projects.
That is projects that do not create anything at all. Let’s explain with an example. If you are creating an electronic product such as a game. You need programmers, designers, financiers, and so on. You need dozens, hundreds, and sometimes thousands of employees who will create the game, maintain its infrastructure, pay for computers for staff, and order servers for the game to work in various countries of the world.
And then fake projects appear on the world stage of greed and the absence of all sorts of restrictions. What is a fake project? This is a project that does not create anything. This is a project that creates a ‘Bridge for a Layer 2 protocol on a blockchain designed for a future closed-loop ecosystem in a heterogeneous distributed computing environment and generating passive income.’ Sounds convincing, right?
But this project doesn’t actually create anything. He doesn’t need thousands of programmers or designers; he doesn’t need infrastructure.
A clarification is needed here. Some of the 'fake projects' named in this article are not such in the opinion of their creators. Moreover, they probably created them with the best of intentions, the so-called "mill cryptography" performs, among other things, the useful function of exchanging cryptocurrencies outside the central crypto exchanges, which is impossible for a new project to access. But two points need to be clarified here.
The first is that the good intentions of such projects are subsequently used for the banal withdrawal of money from the economy by fraudsters, regardless of the intentions of the creators of such projects. We can compare this situation with the sale of opium in pharmacies a few decades ago. Opium producers were unhappy with its ban after it turned out to be harmful to humans.
And the second. Such projects, without realizing it, contribute to the fact that it is impossible for new projects to get on the stock exchange. The developers and creators of such projects put pressure on the exchanges (perhaps) and force them to publish such projects. Exchanges are beginning to consider such projects more carefully, which increases the time for publication. The creators of projects (both real and fake) in response to the actions of the exchanges begin to increase the number of requests for the publication of projects, creating a huge flow of projects that loads the exchanges and increases the publication time. The circle is closed.