Copycat Projects in cryptocurrency

The growing concern in cryptocurrency involves copycat projects that usually emanate from successful blockchain projects by simply duplicating the code or concept of such projects without adding meaningful innovation or value. They often aim at laying their hands on the success of the original by trying to forge similar features and branding, which will help them lure investors through association. Though imitation is common in the tech world, the problem with these crypto copycat projects is that they often lack originality and/or long-term viability.

Most of the copycat projects are all hype and no substance, with very little focus on enhancing the technology or ironing out the weaknesses of the original. For this reason, such projects are particularly dangerous to investors because they hardly ever manage to differentiate their offer in a competitive environment. Unless there is something that distinguishes them clearly, these copycat projects will not be able to sustain for a long time and often die down once the initial hype gets over.

There are also scores of copycat projects that are out there, merely created the hype for a quick buck. Some might even be subject to insider trading tactics, such as "pump and dump," where the price is artificially inflated and then the stake sold to unsuspecting investors, who end up with worthless tokens.

In other words, copycat projects are not at all innovative or safe to invest in. As a matter of fact, you should research very well whether the project is original and what long-term plans the developers have.

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~ Nesaty