Look, I get it. The Web3 utopia promise, brought up on fancy new tokens and crypto-developments like decentralized finance, is tempting. Best Wallet Token ($BEST) is the newest to join the pack, but they’re already delivering on their promise to change the way we think about and use crypto. They announce half a million users, $13.5 million in funding and with a plan to capture 40% of the non-custodial wallet market. Before you FOMO your hard-earned cash into this impending presale, let’s pump the brakes and add some due diligence skepticism. I've been around the crypto block a few times, and I'm seeing some serious red flags that the "experts" seem to be conveniently ignoring. Are we really so desperate to get rich quick that we’re jumping at any harebrained scheme? I’d argue that it’s time for a reality check.
Too Good To Be True Promises?
Let’s face it, the crypto space is full of projects that have been issuing very aspirational promises. Best Wallet isn't any different. A full-featured Web3 ecosystem, non-custodial wallet, DEX and crypto spending card, all-in-one? It’s a great concept on paper. As history reminds us, when you try to do it all for everybody, you end up doing nothing well. They’re touting crypto wallets’ limitations as an opportunity promising advanced functionality, security and exclusive opportunities. In truth, they’re just fighting to crush an 11 billion market with additional usefulness. Doesn’t mean it’s really innovative, just different features that you’re packaging as something new with a token. Every time I read a claim, I doubt that promise is grounded in the current reality as opposed to widespread hopium.
And what’s with that 100% APY staking reward during the presale? Seriously? That sounds less like a sustainable positive carrot and more like a last-ditch, hope-to-stop-the-bleeding produces-a-miracle-revenue bump. Note that high APYs are usually paid in additional of the same token. We already touched on this earlier, but what will happen when the presale ends and the whole market is flooded with $BEST? The value could plummet, leaving early investors holding the bag. The exuberance of the dot-com boom is one example. Just like during the dot-com bubble, when every business with “.com” in its name saw its market capitalization bubble up before bursting into flames a few years later. Are we repeating history here?
Vague Tokenomics A Cause For Concern?
Tokenomics are the lifeblood of any crypto project, and an absence or lack of transparency here should instantly raise a huge red flag. BEST is capped at a total supply of 10 billion tokens. Okay, but how are those tokens distributed? What percent of the pie goes to the core team, initial investors, advertising, and the community? A transparent breakdown is crucial. The larger the portion in the hands of insiders, the greater the potential for market manipulation and a rug pull. We want to see some real numbers. By having a clear vesting schedule, the community can be sure that the team’s incentives are aligned with the long-term success of the project.
Speaking of incentives, what’s stopping the team from dumping their tokens as soon as their lock-up period expires? This creates a strategic dilemma for the market. A better tokenomics will involve tools to help avoid this, like making tokens vest over a multi-year schedule. Without these kinds of safeguards, early investors make a very speculative bet. They’re taking a leap of faith on the team not to just cash out and leave them hanging. It's like trusting a used car salesman who promises he'll never sell another car – highly unlikely.
Team Anonymity A Serious Issue?
The team behind Best Wallet is partially doxxed, but I really want to know who is responsible for my money. A strong team of experts should be willing and proud to have their names, and the reputations of their fields, affixed to their products. Their anonymity fosters distrust and doubts about their motives. Are they hiding something? Is it because they don’t have the deep experience or breadth of expertise to actually fulfill their commitments?
I’m not claiming that all anonymous teams are evil. Far from it. The potential for malice is drastically raised. In a place known for scams and rug pulls, transparency needs to come first. I am hoping to see LinkedIn profiles, examples of past work, and proof of their demonstrated expertise. I’d like to study their backstories. That way I can decide if I want to trust them with my money. I’m curious if their whole team is made up of college dropouts. Or, second option, I’m hoping they are experienced experts with a history of successful practice.
Security Vulnerabilities A Big Threat?
Best Wallet also offers cloud backups, secured by industry-leading Fireblocks MPC security technology. That's good, but is it enough? Whether or not their code has been audited by a respected third-party security firm. Third, security vulnerabilities are always an issue in the crypto space and no matter the level of sophistication, systems have been hacked. Yet a single exploit might wipe users’ funds and the project’s reputation in one blow.
That’s why it’s critically important to stress test their systems and rectify any vulnerabilities before going live to the public. Conducting a security audit should not be perceived as a mere tick box exercise, but rather the first step in safeguarding users’ assets. Have they thought through issues such as cross-chain bridge exploits, which have been racked up for hundreds of millions in recent years?
Regulatory Uncertainty A Looming Danger?
The regulatory landscape for crypto is still developing, and this adds another layer of massive uncertainty for projects like Best Wallet. Governments around the world are scrambling to figure out how to regulate cryptocurrencies. Their business models could be deeply disrupted by new laws. Might the Best Card, enabling its users to spend their crypto, trigger already existing rules and regulations? How about the Best DEX, which helps you trade digital assets with people around the world?
Simply put, a project that doesn’t proactively tackle regulatory compliance is rolling the dice. They risk lawsuits, penalties—or worse, having to close up shop. This would be catastrophic for any would-be token holders who could expect to lose their entire investment. Remember as well that governments can and should be able to shut down projects they consider illegal or harmful.
Competition From Established Players?
That is a very competitive space already, with incumbents like MetaMask, Trust Wallet, and Ledger. So what is it about Best Wallet that is so special, that they can hope to earn even a small share of this massive market. They promise increased functionality, security, and access to special opportunities, which aren’t new ideas per se.
In order to succeed, Best Wallet will need to provide an exceptional value proposition that sets it apart from the competition. This can take the form of a killer feature, a better overall user experience, or just a laser-like focus on a niche area. However, just copying what’s out there plus a token on top won’t cut it. And to do that, they’ve got to be smart, innovative—and yes, even a little disruptive—to cut through the noise.
Unrealistic Projections Fuel The Hype?
The project intends to onboard at least 40% of the $11 billion US non-custodial wallet sector. Is this realistic? Can they deliver? What data supports this projection? Each project, though, has its own projections. It’s more important to pay attention to how the team is accomplishing the goals rather than establishing unfeasible milestone numbers.
I’m not at all saying that this is impossible. It requires an execution level that we just don’t see in the air crypto world. It’s about as realistic as claiming you’re going to build the next Amazon or Google. As magical as that sounds, the deck is stacked against you. Best Wallet finalists and winners will need to demonstrate a strong plan to achieve their lofty goals. More importantly, they must be candid about the real challenges they’re facing as they navigate this new road.
If so, the $BEST presale might just be that opportunity. I am very much encouraging all of you to move forward with great caution. Don't let the hype cloud your judgment. So do your research, provide the RFP with some thoughtful, hard-hitting questions. Be prepared to walk away if you aren’t comfortable with the risks. Keep in mind, when it comes to crypto, if something sounds too good to be true, it likely is.
