Turkish IT professor Sirer: „Many crypto projects are smoke and mirrors“

Crypto companies often use dubious strategies.

Emin Gün Sirer , the managing director of the blockchain project Avalanche, believes that many companies in the blockchain and crypto industry are pursuing dubious strategies

Sirer wrote on Twitter yesterday, September 11th , that behind most of the projects there is only „a lot of hype and technical-sounding terms“ and no really new innovations. In addition, corporate customers would often be “too embarrassed to admit that they were deceived”.

Accordingly, many block chain projects would be merely „smoke and mirrors“ as the Turkish-born Sirer, the American at the prestigious Cornell University has been a computer science professor who finds .

The trigger for his opinion was a report by the economic analysts at Hindenburg Research , who uncovered the dubious methods of the American start-up Nikola, which manufactures hydrogen-powered trucks , in an investigative report . According to this, there is a “sophisticated scam” behind the company. Sirer took this as an opportunity to draw a parallel with blockchain companies.

Among other things, the Avalanche managing director writes:

“For example, we now have crypto projects that simply revive old protocols from 1999 and sell them as new inventions. Centralized coordinators are used like a kind of ‚invisible wire‘ and simulate the functioning of a supposed innovation. The best thing I think is that there are even systems that don’t even have Byzantine fault tolerance. “
Much like truck maker Nikola, crypto projects would often make “adventurous promises” using “exactly the same language” as projects that actually produce innovations.

Avalanche, the project from Sirer could last through a public token sales 42 million US dollar investment capital to take after in June through a private sale as early as 12 million US dollars were generated. The associated cryptocurrency AVAX is of no external asset connected .