{"id":10266,"date":"2022-03-10T15:47:54","date_gmt":"2022-03-10T15:47:54","guid":{"rendered":"http:\/\/egrowonline.com\/?p=10266"},"modified":"2022-03-10T15:47:54","modified_gmt":"2022-03-10T15:47:54","slug":"the-bitclout-grifter-wants-to-take-your-ethereum-via-a-dao","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=10266","title":{"rendered":"The BitClout Grifter Wants to Take Your Ethereum Via a DAO"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<section class=\"article-key-takeaways\">\n<h3>Key Takeaways<\/h3>\n<ul>\n<li>Nader Al-Naji, the entrepreneur behind BitClout, is launching a new project called (DAO,DAO).<\/li>\n<li>(DAO,DAO) says it wants to make creating and running DAOs easier by offering a middleman service. <\/li>\n<li>The project received harsh criticism on social media when it was announced on Mar. 9. <\/li>\n<\/ul>\n<\/section>\n<section class=\"article-share top\">\n<h4>Share this article<\/h4>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Nader Al-Naji, the entrepreneur behind the tumultuous BitClout project, has announced a new platform called (DAO,DAO). The project aims to streamline the process of making and running a decentralized autonomous organization\u2014while siphoning money from the DAOs raising money on the platform.\u00a0<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">What Is (DAO,DAO)?<\/span><\/strong><\/h2>\n<p>The BitClout grifter is back\u2014with a DAO project called (DAO,DAO).<\/p>\n<p><span data-preserver-spaces=\"true\">In the <a target=\"_blank\" href=\"https:\/\/www.daodao.io\/one-pager.pdf\" rel=\"noopener noreferrer\">marketing material<\/a> for (DAO,DAO), its creator Nader Al-Naji calls out two of the biggest crypto companies, Coinbase and OpenSea, slamming them with a tag of angry red text that reads \u201ccentralized.\u201d In comparison, (DAO,DAO) is adorned with the friendly green word, \u201cdecentralized.\u201d\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This fatuous pictograph broadly sums up what Al-Naji is selling prospective investors with (DAO,DAO)\u2014the nebulous promise of decentralization. (DAO,DAO) aims to make creating a DAO as easy as setting up a Facebook account. In the project\u2019s 14-page long \u201cone pager,\u201d Al-Naji explains the use cases for his new project, most of which involve collectively raising money for various causes, goals, and investments.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The platform will use decentralized token governance, allowing DAODAO token holders to have a say in how the platform is run. However, while (DAO,DAO) might call itself decentralized, the workings behind the project paint a different picture.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">(DAO,DAO) appears to be a glorified middleman designed to siphon off money from DAOs and deliver it into the pockets of DAODAO token holders. While most DAODAO tokens will be sold to the public through a method suspiciously close to an initial coin offering, Al-Naji and his anonymous founding team will receive an automatic 10% of all tokens purchased by the public. If this percentage-based payout for the developer team wasn\u2019t dubious enough, (DAO,DAO) also offers the chance to buy early access NFTs, which allow investors to keep 100% of their DAODAO token purchases.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">DAODAO token holders can expect to receive 1% of all funds raised by DAOs using the (DAO,DAO) platform. This raises the question of how the Securities and Exchange Commission will view the DAODAO token. In its current state, it seems likely that the SEC will view the token as a security since it promises to accrue profits that come solely from the efforts of others.\u00a0<\/span><\/p>\n<h2>Nader Al-Naji\u2019s Track Record<\/h2>\n<p><span data-preserver-spaces=\"true\">Al-Naji has run into problems with the SEC in the past. His first project, a decentralized, price-stable cryptocurrency called <a target=\"_blank\" href=\"https:\/\/www.basis.io\/\" rel=\"noopener noreferrer\">Basis<\/a>, ground to a halt when it became apparent it was trying to publicly sell tokens with the characteristics of securities.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The overarching question that comes to mind with (DAO,DAO) is why do we need it? Several DAOs have already successfully raised millions of dollars for various causes. Recent examples include <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/dao-aiming-free-julian-assange-has-raised-40m\/\" rel=\"noopener\">AssangeDAO<\/a>, which raised over $41 million at the start of February, and <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/ukrainedao-organized-for-war-relief-efforts\/\" rel=\"noopener\">UkraineDAO<\/a>, which continues to raise funds to support those affected by the Russian invasion of Ukraine.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">One way (DAO,DAO) states it will improve the current DAO infrastructure is by allowing DAOs to raise funds over multiple networks rather than just Ethereum. Admittedly, this is a potential selling point because gas fees on the Ethereum network eat into DAO contributions and make giving refunds a costly endeavor.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, (DAO,DAO) \u2019s answer is to run everything on DeSo, the rebranded husk of Al-Naji\u2019s previous project, BitClout. Instead of building useful DAO interoperability between different networks, Al-Naji looks to be trying to bootstrap DeSo users through his new project.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Other minor criticisms of (DAO,DAO) include the project\u2019s name. The formatting borrows from the (3,3) meme associated with token rebase projects such as <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/olympusdao-sheds-30-triggered-by-whale-sell-off\/\" rel=\"noopener\">OlympusDAO<\/a>, which are often decried as Ponzi schemes due to their highly inflationary tokenomics. Additionally, the name \u201cDAO DAO\u201d already <a target=\"_blank\" href=\"https:\/\/twitter.com\/DA0_DA0\" rel=\"noopener noreferrer\">belongs<\/a>\u00a0to a project involved in building DAO tooling on Juno Network.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">When Al-Naji announced (DAO,DAO) to his Twitter followers on Mar. 9, many key members of the crypto community were quick to question the project and its creator\u2019s questionable track record. The Twitter account Autism Capital was one of several to weigh in on (DAO,DAO), <a target=\"_blank\" href=\"https:\/\/twitter.com\/AutismCapital\/status\/1501365367821639684?s=20&amp;t=F-bQUTaqsEKnyOXH7IONZQ\" rel=\"noopener noreferrer\">advising followers to<\/a> \u201cStay away from Nader projects and this and don\u2019t lose your money and get (REKT,REKT).\u201d Others such as Edwin den Boer <a target=\"_blank\" href=\"https:\/\/twitter.com\/edbwt\/status\/1501702023812722695?s=20&amp;t=F-bQUTaqsEKnyOXH7IONZQ\" rel=\"noopener noreferrer\">highlighted<\/a> the trail of failed projects that led to (DAO,DAO) and warned followers not to trust Al-Naji.<\/span><\/p>\n<h2>BitClout\u2019s Failings<\/h2>\n<p><span data-preserver-spaces=\"true\">Aside from Al-Naji\u2019s failed stablecoin venture between 2017 and 2019, he\u2019s arguably best known for BitClout. The divisive <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/celebrity-coin-marketplace-bitclout-briefly-returns\/\" rel=\"noopener\">crypto social media platform<\/a> emerged when interest in digital assets was hitting new highs in 2021, offering users a way to buy and sell personalized \u201ccreator coins\u201d based on their subjects\u2019 reputations. It effectively tokenized social clout, with the likes of Elon Musk and Katy Perry deemed as the most valuable personalities on the platform.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">BitClout enticed several high-profile Silicon Valley investors, including the crypto-curious mammoths Andreessen Horowitz and Sequoia Capital. However, once the initial hype faded, it quickly became clear that the project couldn\u2019t meet users\u2019 expectations. It rebranded to DeSo in September after failing to gain any meaningful traction.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The unregulated nature of the crypto space allows innovation and development to occur at breakneck speed, but the environment also comes with some major risks. Grifters have a much easier time separating high-profile investors and the public from their cash with big promises and flavor of the week buzzwords. While it remains to be seen whether (DAO,DAO) will prove successful, its creator\u2019s previous track record of failed projects such as Basis and BitClout should make potential backers think long and hard before investing.\u00a0<\/span><\/p>\n<p><em>Disclosure: At the time of writing this feature, the author owned ETH and several other cryptocurrencies.\u00a0<\/em><\/p>\n<section class=\"article-share bottom\">\n<h4>Share this article<\/h4>\n<\/section>\n<section class=\"article-footer\">\n<div class=\"disclaimer\">\n<div class=\"disclaimer-content\">\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/terms-and-conditions\" rel=\"noopener\">full terms and conditions<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/section>\n<section class=\"recommended-posts\">\n<div class=\"section-content\">\n<div class=\"posts-list\">\n<div class=\"post-item na-item\" data-na_id=\"110759\" data-na_location=\"recommended\">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/earning-high-yields-without-the-complexity-of-defi-welcome-to-hodlnaut\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">Earning High Yields Without the Complexity of DeFi? Welcome to Hodlnau&#8230;<\/h3>\n<p>\nOne of the most popular trends in cryptocurrencies dates back to ancient times: lending money to earn interest. In the traditional banking system, people store their funds and they get&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/dao-aiming-free-julian-assange-has-raised-40m\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">A DAO Aiming to Free Julian Assange Has Raised Over $40M<\/h3>\n<p>\nAssangeDAO has raised 13,268 Ethereum ahead of Pak\u2019s NFT auction dedicated to Julian Assange.\u00a0 DAO Raises $41M for Julian Assange AssangeDAO has received over $41 million worth of Ethereum to&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/ukrainedao-organized-for-war-relief-efforts\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">UkraineDAO Organized for War Relief Efforts<\/h3>\n<p>\nA group of activists is creating UkraineDAO to raise funds for Ukrainian residents affected by Russia\u2019s invasion of the country. UkraineDAO Nadya Tolokonnikova, a founding member of Russian protest rock&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/celebrity-coin-marketplace-bitclout-briefly-returns\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">Celebrity Coin Marketplace BitClout Briefly Returns<\/h3>\n<p>\nSocial marketplace BitClout has come back online following an outage that lasted approximately one week. What Is BitClout? BitClout allows content creators, celebrities, and famous crypto personalities to mint a&#8230; <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cryptobriefing.com\/the-bitclout-grifter-wants-to-take-your-ethereum-via-a-dao\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nader Al-Naji, the entrepreneur behind BitClout, is launching a new project called (DAO,DAO). (DAO,DAO) says it wants to make creating and running DAOs easier by offering a middleman service. The project received harsh criticism on social media when it was announced on Mar. 9. Share this article Nader Al-Naji, the entrepreneur behind the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[39],"tags":[6073,1447,158,6074],"class_list":["post-10266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ico","tag-bitclout","tag-dao","tag-ethereum","tag-grifter"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/03\/cover-1-768x403.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/10266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10266"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/10266\/revisions"}],"predecessor-version":[{"id":10268,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/10266\/revisions\/10268"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/10267"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10266"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}