Risky DAOs: 83,000% Staking APY!?
Given that Wonderland DAO’s cryptocurrency $TIME has gone down a lot recently with the latest news, I wanted to talk about the sustainability for projects like these offering 83,000% APY.
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First off, it’s pretty clear that these are Ponzi schemes, scams, or whatever you want to call them. Regardless, we need to go through these because so many people fell for them and got swept up in the grandiose expectations and promises. It’s not only Wonderland either, but there are also other projects with ridiculous staking APYs.
Listed below are some sources and examples of what I’m talking about. These are the bad projects, but that doesn’t mean the space is bad. There is just a lot of media attention and common misunderstanding of what DAOs actually are. Very soon I will also do an episode covering what are DAOs. This is a list of all the DAOs currently: https://coinmarketcap.com/view/dao/
Wonderland.money was found out that their co-founder was also the co-founder of QuadrigaCX and that sent this project spiraling towards 0. Realistically it has always been going to 0 with an APY as of writing this set at 83,000%.
https://www.wonderland.money/ - 83,000%+ APY?
Olympus DAO is another example of something similar to Wonderland with nearly 2000% APY. Previously when I checked it was over 5000%.
https://www.olympusdao.finance/ - 2000% APY?
The first DAO created was hacked - https://www.wired.com/2016/06/50-million-hack-just-showed-dao-human/
https://www.coinopsy.com/dead-coins/the-dao/
The ConsitutionDAO was a complete flop and people lost most of their funds due to fees.
ConstitutionDAO - https://gizmodo.com/is-the-crypto-fueled-plan-to-buy-the-u-s-constitution-1848077239
https://www.investor.gov/protect-your-investments/fraud/types-fraud/high-yield-investment-programs
As the SEC points out, anything over 30-40% is likely fraud and I agree.
Have you invested in any DAOs? What are your thoughts on DAOs? Did you invest in Olympus or Wonderland? Let me know what you think about this in the comments below and don’t forget to subscribe!
*Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated*
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