Bitcoin’s sudden ascension has been incredible to behold. Corporate treasuries are starting to enter the cryptocurrency space, and the SEC has indeed, after much prodding, approved those ETFs. We know it can be tempting to chase that crypto dragon! Before you fling your hard-earned cash at all the shiny new presales that promise the moon, let’s pump the brakes. All that glitters is not gold, and all crypto is decentralized. These three presales – Snorter, AIXexchange, and Kaiko – shine a light on this reality.

Governance? Or Just a Gimmick?

Decentralization is the fundamental foundational promise of cryptocurrency, but it’s a promise routinely violated. Think about it – what's the point of escaping the control of centralized banks if you're just handing your power over to a different set of centralized entities? Yet many of these new projects turn out to be extremely centralized. But they’re not regulated by the American people—they are controlled by small teams, early investors, and opaque algorithms. Where's the community input? Where's the accountability?

Let's take Snorter, for example. We know, we know, … this Telegram-based meme coin trading bot sounds super cool with automated sniping, copy-trading, and more! Who decides what those algorithms do to make a trade? Who sets the fees? Does the global community now have a way for the community to vote on changes? Or is the development team really in charge of everything behind the scenes? I'm seeing a black-box trading system here.

Data Control: The New Centralization?

Along with that there’s AIXexchange, which wants to build a more open, decentralized data economy focused on AI training. The intent behind ensuring equitable pay for creators and trainers is admirable. Yet when it comes down to the nitty gritty—the devil is always in the details. Finally, an important question remains—who should hold the AIX tokens, and therefore, the power in the ecosystem? How is user privacy protected? And how will they ensure these measures align with GDPR and other IP laws and treaties? Data is incredible power, and it should be. If a handful of people wield that power, we run the same danger we faced under centralized tech giants—if not worse—even on a blockchain. Just keep in mind that the data can be used to mislead people.

The unexpected connection? Imagine going back to those early days of the internet. We were told this was a path to democratized information, but what we got were gatekeepers including Google and Facebook. Are we fated to go through the same song and dance with crypto and AI?

Emotional AI: Manipulative Centralization?

Finally, we have Kaiko, a company that’s using emotional intelligence (EQ) to create emotionally aware AI for entertainment. We love the idea of AI agents that respond empathetically, and their Arc Terminal commercial product has over 11 million users. Consider this: who defines what constitutes "emotional intelligence" in these AI agents? Who gets to decide what emotions are prioritized and how they are to be read/interpreted?

This is the crux of the matter. If just one company or a few mega developers own and control the “EQ Infrastructure Layer,” we’re in trouble. They have the ability to shape the emotional responses programmed into the AI. It’s a dangerous form of emotional manipulation, dressed in the threadbare regalia of decentralization and user empowerment. It would be akin to the government deciding what news is fake and what is fact.

We can't afford to blindly embrace every new technology simply because it's novel or promises quick riches. We must be negative Nancies, to insist upon openness, and to hold the tradeoffs against the timeless virtues of good governance and security. The wild, wild west of crypto must get its rule of law.

  • Bitcoin's success doesn't guarantee the success – or decentralization – of every altcoin.
  • Presales are inherently risky, and the promise of decentralization is often a marketing ploy.
  • Before investing, demand clear answers about governance, data control, and the distribution of power within the ecosystem.

Now, I’m not arguing that these projects are evil in and of themselves or that they’re doomed to flop from the get-go. We really need to be honest with ourselves about the limitations of decentralization. It’s important to continue to be on guard against the possibility of centralization re-entering the equation with all of these new platforms. While the temptation of speedy returns is understandable, we must not lose sight of the basic tenets of responsible innovation.

The SEC making Bitcoin ETFs legal has allowed for greater crypto legitimacy in the eyes of many investors. This move is raising the competitive stakes in the market. Regulators are watching the developments very closely. As a result, projects that fail to follow through on the pledge of decentralization could face increased public scrutiny and enforcement. Don't let your investment be collateral damage.

Don't be fooled by the illusion. Delve deeply into your research and feel free to ask hard questions. Remember, decentralization isn’t just a catchphrase – it’s a guiding principle that takes ongoing commitment and effort. Together, we can build a crypto future that truly puts people first. It’s past time to stop just making a new group of gatekeepers fabulously wealthy.