Back

Polkadot (DOT) Investigated by Trader, Five Questions Raised. What Do We Know About the Project?

These five questions from a seasoned trader can help you to decide whether the crypto product is a scam or not

article image
Cover image via tonevays.com

Prominent trader and former VP at JP Morgan Chase, Tone Vays, labels one more blockchain product a "scam," but he is unsure about the place it deserves in his rankings. So he asked the global crypto community about some shady aspects of the Polkadot (DOT) product and token.

Five questions to detect scams

As a renowned Bitcoin (BTC) maximalist, Mr. Vays repeatedly warned Crypto Twitter inhabitants about the fraudulent nature of different cryptocurrencies. Yesterday, Sept. 8, he decided to investigate Polkadot (DOT), a Web 3.0 cross-blockchain infrastructure project.

He explained that he realizes this product holds seventh place in CMC. He raised five simple questions about it. Mostly, Vays' questions were aimed at identifying whether the supply of Polkadot New (DOT) is whale dominated or not. A large "team allocation" share usually makes tokens that are easily exposed to pump-and-dump schemes. When it comes to a project with a $4 bln market cap, such manipulation may create problems for the entire crypto market.

Also, Mr. Vays asked his Twitter audience about the features of Polkadot (DOT) consensus, the original character of its blockchain and the identities of project leaders.

Ads
Ads

Studying Polkadot with Tone Vays

The followers of Mr. Vays account answered his questions quickly. Polkadot (DOT) network utilizes its own blockchain. Its DOT token exists on the native Polkadot blockchain and does not belong to the ERC-20 standard. The project organized a multi-stage private sale, but rumors abound that another round of a tokensale may be organized.

The product team, led by ex-Ethereum CTO Gavin Wood, holds 30 percent of DOT's available supply. The present version of DOT is Polkadot New token, a 100:1 denominated version of Polkadot Old token that existed prior to Aug. 23 of this year.

Polkadot (DOT) works on a hybrid consensus that consists of two parts, namely BABE (Blind Assignment for Blockchain Extension) and GRANDPA (GHOST-based Recursive ANcestor Deriving Prefix Agreement).

It should be noted that Mr. Vays has opposed XRP as a scam from day one. In his exclusive interview with U.Today, he explained that he considers its co-founder, Jed McCaleb, "one of the probably five biggest scammers in the space."

Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!

article writer image
Vladislav Sopov

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)