For some time now, the trend in crypto world has been to hype “large” partnerships and use them to boost the token price. Doubters who question these are accused of being FUD spreaders and are urged to do their own research.
But this demand of DYOR (Do Your Own Research) is a good advice for all of us, there is a need to develop a DYOR culture in the new decentralized world.
While 2017 was the year of the ICOs, 2018 threatens to be the year of the announced partnerships. Especially smaller crypto currencies never get tired of announcing partnerships with huge partners. This is a negative phenomenon not only for the token team that is propelling the hype around the announcement, but also for the whole crypto market reputation in general.
“The world has moved on,” as Roland the gunslinger would say. In 2017, you could organize an ICO to receive a million bucks for a chic white paper and no product. Using this new crowdfunding method, projects were able to acquire significantly more money than the necessary for the project development within minutes.
2018 is different: authorities around the globe have taken a positive and a negative view of the ICO phenomenon. In the United States, ICOs are considered securities. In addition, investors are saturated by the flood of ICOs and are accordingly critical.
Finally, the investor community is waiting for the launch of projects that received funding last year. If nothing happens there, the price of the issued tokens falls and the discontent of the community rises. This problem is not only common for ICOs, just take a look at Verge or Cardano.
It is therefore understandable that projects want to inform about the further course of their project. Testnet, alpha version of the wallet, current project status, important milestones, everything is shared. Of course also rebrands, partnerships and announcements themselves.
Announcements and partnerships – stumbling blocks for decentralisation
Things get almost absurd in this category. Team shill and hype alleged partnerships all across social media, trying to attract as many investors as possible. They are helped generously by “bagholders”, who are also trying to bump the price up so they can sell their coins at higher price.
The problem is not just shilling your own coin or token. Much more worrying is the centralization around a small development team, which goes hand in hand with this form of partnership announcements. When all partnerships run through a single project team, not only the code development, but also the product application is limited to the development team. We took a critical look at this form of centralization at Ripple. The same can be applied to various other crypto currencies, in which primarily the developers talk about huge partnerships.
It is much healthier if an ecosystem forms around a blockchain. There is a positive example of this: Bitcoin – it doesn’t only have Blockstream but different developers working on wallets, payment options and more. This creates a living ecosystem, which is not limited to one development team.
A project cannot yet fall back on such an ecosystem at an early stage. However, in favour of decentralisation, it would be desirable to bring other project teams on board early and to focus less on the “big partnerships” and announcements.
DYOR applies to all of us
But decentralization begins with each individual. We are the first major partners of a crypto currency. So if you invest in a crypto currency, you should take a close look at it and understand the use case behind it. This critical examination is not a one-time occurrence but a continuous process.
Unfortunately, this critical attitude is more often called for by others: When critics ask why an investment makes sense, the answer is DYOR – Do Your Own Research. Critics should “do their own research”. DYOR – c’est les autres, to say it with Sartre.
DYOR is often used a defense mechanism by the shillers against concerns expressed by others. DYOR is not a counter-argument or magic word that suffocates every criticism.
DYOR, “critical” or “skeptical” thinking is first and foremost a call to oneself. As with many other things in life, one should always critically question one’s own position and examine why one has taken it.
As in research, DYOR lives from dialogue with the community. DYOR should become DASYOR – Do And Share Your Own Research: We should share knowledge about our own investment, both positive and negative, instead of keeping it to ourselves and using the magic word “DYOR” to undermine critics.
After all, this aspect is one of the main features of crypto currencies: In principle, we are dealing here with open source code and a high degree of transparency. It is therefore not an accusation, but rather an invitation.
So let us all support and emphasize this important aspect of decentralisation in the spirit of DYOR!