The Good, Bad, and the Ugly of Unchecked Blockchains versus the Apex Blockchain
Time and again, various blockchains have been victimized due to hacking, compromised wallets, and the notorious crypto scams known as rugpulls or honeypots.
Operating a crypto blockchain in a completely open (and unchecked) manner without any kind of due diligence on prospective project owners/developers may sound like a great thing. However, recent events (i.e. the high incidence of rug pulls on nearly every blockchain) confirm that decentralized autonomous organizations, otherwise known as “DAOs”, are an effective way of preventing rug pulls.
The Apex Node Validator DAO
The Apex node validators serves as one of the branches of its DAO and an important role in preventing investor loss by mitigating potential rug pull projects via our extensive review process. These node validators have been working around the clock to investigate and scrutinize numerous projects that have approached us to launch on Apex. Through our investigative lens we have ensured that only high quality, reliable, and viable projects launch on Apex. Further, we have prevented a number of questionable projects on Apex; protection of our chain and our investors is our number one priority. Some of these projects went on to launch on the Ethereum and Binance Smart Chain networks, and conducted “rug pulls” after launch.
Do we have the ability to prevent such 100% of the time? Probably not. There very well may be a project that has good intentions, that later decides they want to unethically drain the liquidity pool from their project.
However, we are steadfast in our objective and will under no circumstance allow a project on Apex that shows any sign of concern. We have already effectively prevented rug pulls through our lens of investigation and have not been hasty to launch projects just for the sake of having projects on our chain. Nothing can damage a blockchain or user confidence like a rug pull.
Case-study: A Rug Pull Prevented
An example of what the NVs have accomplished can be seen fromQ4 2022/Q1 2023 when one project lead in particular criticized our strict onboarding process claiming that it will ‘slow us down and will prevent progress on our chain’. During that conversation our lead NV @EnginerdYK reminded him that our process is intended to protect our chain and our users.
“If people can't take the 10minutes to provide information about their project via the application, then we're not interested in jeopardizing our chain for it. I would rather have 1good project on chain than 100 s**** ones.
It is recognized that in order to really gain momentum on a chain, you need to have projects on chain. But we're patient. And will select the right ones.
A BSC-style free for all where any knucklehead can create a token on Apex is not an option. We have standards and we are here to ensure projects meet our standards. Clear and simple.”
We later learned that this very same project lead did launch on the Ethereum network and proceeded with his rug pull.
At Apex, our experienced Node Validators review ALL potential projects and conduct a thorough due diligence effort. We don’t entertain meme projects without utility on Apex, as we believe that crypto is all about solving an existing problem and not solely on hype.
We investigate every single claim and ensure that they go through our rigorous process, which is comprised of two phases.
During the first phase, we review projects in various categories, including Utility, Uniquness/Market Potential, Ability to deliver, Alignment with Apex vision, Quality of application, Trustworthiness and prior experience of the project team, Social media presence, Website, Tokenmics, Token distribution, and any Extended project team(backers/investors/advisors/partners).
Assuming a project passes the first phase, the project is then required to undergo KYC and contract audit. All of these requirements must be met before a project can launch on Apex.
From our personal experiences with rug pulls in the past and understanding of what makes a “good” project, we at the Apex chain have decided enough is enough. It is our mission to prevent any form of scam projects from launching on our chain. Apex is not trying to be the chain with the most volume, but the safest and most reliable chain (with no rugs). We know this to be paramount for every blockchain to put in place a DAO that can scrutinize potential projects that intend to launch on their chain. This will help ensure that bad actors are shaken out and prevent them from causing harm to the blockchain and its users.
The impact of what the team at Apex has done is already being felt across all crypto spaces. This impact will become more pronounced and recognized as time goes on.