An overview for the interest of personalities who aimed to building their career as a crypto blockchain manager, as it is another opportunity and a great way to making money on the cryptocurrency industry.
Reviews and polls conducted by notable experts in the crypto market depicts that, most crypto enthusiasts that are looking to establish a career in the crypto space have the zeal to become crypto community managers, but a greater percentage of them are yet to understand what community management is all about, as some think that, it is the same as community moderation.
Before we proceed, let’s briefly explain what a crypto community means: A crypto community is a diverse group of people who share a passion for cryptocurrencies and blockchain technology. They are innovative, enthusiastic, and opinionated. They also love to share their thoughts and ideas with others in the crypto space.
Now, the task required from a crypto community manager is to help the community grow and thrive by providing support, factual education, and guide to all and sundry.
This simply means that, you are required to have an extensive knowledge in crypto and blockchain, and also develop top-notch business relationship, and communication skill. So, your first approach to becoming a crypto community manager isn’t to search for a crypto project that would hire you, rather to join an existing crypto organization that already has one – with the aim to learn how they operate, how they communicate with members of their community, what types of events they host, and how they engage with various social media channels like Discord, Telegram, Twitter, etcetera.
Before you can get hired by a reputable crypto project, you need to have managed a community on a solo basis. So, endeavor to practice what you’ve learned by managing an established crypto community (whether you own it or not). With your experiences, while managing the community, you’d have known what drives community growth and engagement. This way, you can be effective in communicating with every member (clients, traders and investors) of the crypto community, and it would be easy for you to grab your first crypto community manager gig.
In a nutshell, a crypto blockchain community manager is a go-to person for a project’s social media presence. They are responsible for managing the project’s community, interacting with members, and posting updates about the project.
Overviews On Building A Career As Crypto Blockchain Manager – How To Dictate Scams On DeFi (Decentralized Finance)
Decentralized finance (DeFi) is a financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services. To be able to dictate scams on DeFi, the following factors or questions are important:
- What is the purpose of the project?
This may seem like an obvious question to ask, especially if you’re new to the DeFi space. However, a good majority of crypto assets don’t bring anything new to the table. Sure, there’s extremely exciting innovation as well – that’s why we’re all here after all! But many new projects try to just piggyback on the attention on DeFi without even trying to innovate.
So, one thing you can ask is – does this project try to do something new and innovative? Are they trying to contribute to the new digital economy with their project? How is it different from its competitors? Is there a unique value proposition here? These are very simple, common-sense questions. But, by asking them, you can already weed out a good portion of scams.
- Development activity
Another thing you can look at is developer activity. DeFi is closely intertwined with the ethos of open-source.
So, if you know a bit about coding, you can go ahead and take a look at the code yourself. The great thing about open-source, though, that if there’s enough interest around the project, others will surely do. This can likely uncover if the project has malicious intentions.
In addition, you can also look at the development activity. Are the developers continually shipping new code? While this metric can be gamed, it can still be a good barometer for finding out whether the developers are for real or if they just want to make a quick buck.
- How are the tokens distributed?
Token economics is a crucial aspect to consider when researching a DeFi project. One of the ways a scammer can make money is inflating the token price while having a huge holding and then dumping it on the market.
What happens if, say, 40-50-60% of the circulating supply gets sold on the open market? The token price drops, losing almost all its value. While a significant founder allocation isn’t in itself considered a red flag by some, it can lead to problems down the line.
In addition to allocations, you need to consider how the tokens are distributed. Is it done through an exclusive pre-sale, available only to insiders who get a great deal then hype the project on social media? Is it an Initial Coin Offering (ICO)? Are they doing an Initial Exchange Offering (IEO) where a crypto exchange is putting their reputation at stake? Are they distributing tokens through an airdrop that likely causes a lot of sell pressure?
Token distribution models have a lot of nuances to consider. In many cases, it’s difficult to even get ahold of this information, which in itself can be a red flag. However, if you’d like to get a full picture of the project, this is absolutely essential information.
- How likely is an exit scam?
Yield farming (or liquidity mining) is a new way to launch DeFi tokens. Many new DeFi projects use this distribution method as it can create some favorable distribution metrics for the project. The idea is that users lock their funds into smart contracts and get a portion of the newly minted tokens in return. You can probably see where this is going. Some projects will just outright take the funds in the liquidity pool. Some will use more sophisticated methods, or have a huge pre-mine.
In addition, new altcoins often get listed on automated market makers (AMM) such as Uniswap or Sushiswap first. If the project team is providing a good portion of the liquidity for the market pair on the AMM, they can just as well remove it and dump the tokens on the market. This typically results in the token price essentially going to zero. As there basically isn’t a market left to sell in, this is often called a rug pull.