CryptoJan 31, 2022
Network of DeFi crypto protocols Frog Nation in chaos
Treasury Management
Victor Lei
Discover
It’s anarchy in Frog Nation. A group of crypto projects, including Abracadabra, Popsicle Finance and Wonderland, worth a combined $5B at their peaks is falling apart — showing just how risky crypto can be without proper due diligence…
Grab some popcorn and sit back…
Frog Nation is a collective network of decentralized crypto projects designed to grow together with the aim of recreating the financial system on the blockchain.
The community was not happy to discover an ex-felon who spent 18 months in federal prison and pleaded guilty to credit-and-bank fraud was the one managing billions in treasury… With SiFu now voted out, the fate of the projects remains uncertain.
In the stock market, no one is investing in companies with an anonymous management team. But it’s different in crypto — where anon culture is popular.
In some cases, founders remain anon for fear of being targets of scams, hacks and even threats. But other times, there may be more nefarious reasons…
With anon crypto founders, there’s always the risk they could run off with the project’s money.
The scary part: The projects had billion$ valuations at their peaks. Wonderland — the group’s biggest project — was once a top 100 token with a market cap of $2.6B in November. Since then, its token value has fallen 97% — most of which happened before the news.
We’re still early in crypto — so many of the guardrails that protect retail investors aren’t in place. Those chasing returns through decentralized exchanges are more prone to scams.
Crypto moves fast — even a billion$ crypto project can unravel in days.
