(NONE OF WHAT I WRITE IN MY ARTICLES IS TO BE TAKEN AS INVESTMENT ADVICE. I am not an advisor for this nor am I suggesting any financial action on your part. DYOR)
My first Rug…
Everybody remembers their first Rug, how it made them feel,& what they did next.
A friend of mine, that has been teaching about Crypto, told me that in the crypto world you are going to lose money & your going to make money. The goal is to make more than you lose, not the other way around.
The term “rugged” is actually short for “ pulling the rug out from under you.”
This happens when the owners &/or developers of a certain project run off with the funding from that project. This basically, leaves their users in the red. Sometimes this is referred to as scamming the users. This is my story about the first time I was rugged.
I was very young in this crypto game. (Still am very young by some standards.) I saw a very appealing BNB miner that was advertising 15% daily APR, which would be 5475% APR for the year. This miner was called Parrots BNB. It looked very similar to Baked Beans.
I didn’t do any research at all. My friend was out of town & unavailable for me to ask about this miner. I basically, went in blind! (I know now that was a very stupid move to make.)
On 4/19/22, I invested 0.036 BNB($15 back then). I lasted about a week.
My 0.036 BNB($15) investment should have been producing around 0.0054 BNB ($2.25). But I was only getting 0.004 BNB ($1.29) every day instead. This gave me an uneasy feeling.
Seems that I wasn’t the only one that this happened to either.
The final straw
My earnings & withdraws started getting lower & lower, even though I was compounding 2x daily.
Finally, one evening I hit the withdraw button, so I could get my earnings from that day, & it withdrew all my BNB out of my wallet. At first, I thought that there was a mistake & maybe I hit the wrong button. Then I realized that both the deposit button & the withdrawal button did the same thing. Both them took money out of my wallet.
Here’s what the TVL looked like. It only lasted a week as well…
It was a good thing that I had separate wallets for each project. Because this would have taken all my money for that project as well.
When it was all said & done, I had withdrawn 0.008 BNB ($3.2) back from this miner. I was in the red 0.028 BNB ($11.8).
It was then that I was glad that I didn’t put a lot of money into this miner…
What I learned
- Do your research before you invest
- Don’t be afraid to wait on investing
- Fear of Missing Out (FOMO) can make you do some stupid stuff
- Test the waters before you commit
- Don’t invest in anything that hasn’t been audtied
Hope this helps you with these things.
Next up, BNB miner…