In recent years, upvoting sites have gained a lot of attention, offering a new way for people to support their favorite projects. These platforms were initially created to help users find new investment opportunities and give lesser-known tokens a chance to get visibility. However, there are some drawbacks to consider. Let’s examine both sides of the coin.
Potential for early discovery
For users, upvoting sites offer a chance to spot potential gems at an early stage. These platforms often attract a community of individuals who want to discover innovative and profitable investments. By browsing through the listings, users often come across tokens that have not been on their radar otherwise.
Investing in projects at an early stage allows holders to support the development and growth of these projects but it is also an opportunity for significant returns on investment. Early supporters of successful projects often benefit the most over time.
Open Listing System
Getting visibility and attracting investments can be quite challenging. Established platforms often prioritize projects with high market cap and reputation, making it difficult for smaller players to compete. Upvoting sites break down those barriers.
Regardless of a project’s popularity or market cap, every project can be listed and has an equal opportunity to gain votes. This opens the door for less-known projects and new ideas to gain attention that they may have otherwise struggled to attain.
Vulnerability to Scams
Upvoting platforms usually lack any type of checks for the projects listed. Anyone can list anything. This absence of due diligence exposes users to a number of potential scams or rug pulls. Because of the absence of any criteria, users must be cautious and do thorough research before investing in any token listed.
With no regulations or controls, users need to identify potential red flags by themselves.
Another concern and what we see daily, is the manipulation of rankings and voting systems. Since anyone can participate and vote, it is not uncommon for individuals to buy votes or use bots to artificially boost rankings.
This undermines the trust in the voting process and can create a false image of the true popularity or value of a project.
To sum it up
Upvoting sites have great potential to bring visibility due to an open listing system, but that same system brings high risks. With incomplete information, no evaluation, and no control, what we get is not a realistic picture.