Part 3/12:
The Wild West Nature of Web3 and Its Challenges
The current Web3 landscape resembles the Wild West—characterized by rapid growth, innovation, and a proliferation of frauds. The collapse of FTX, a major crypto exchange, exemplifies how unregulated the industry still is. Many projects, especially in DeFi (Decentralized Finance), face scrutiny over their legitimacy.
Shapiro highlights the risk of Ponzi schemes, emphasizing that if someone claims you need to do due diligence but cannot offer transparent proof of legitimacy, skepticism is warranted. The lack of regulation and immature governance structures make this space highly vulnerable.