Airdrops, often touted as a way to “get free crypto assets,” are an attractive opportunity for many. Among them, OpenLoop, a system where users can easily earn points through a PC browser extension, has announced “Launch Soon,” raising expectations among participants. However, it might be too soon to uncritically embrace this announcement. This seemingly appealing project harbors several “dangerous signs” that warrant careful analysis.
This article aims to provide an unbiased, multi-faceted analysis of the risks inherent in OpenLoop, based on publicly available information and objective facts. We hope this article serves as a compass for you to discern risks on your own and protect your valuable assets.
Dangerous Sign 1: Unnaturally High-Priced and Unsold “Nodes”
One hint to gauge a project’s soundness lies in its revenue model and participation methods. OpenLoop sells what it calls “nodes,” which are akin to contribution rights to the project, and this presents the first point of concern. Node holders are purportedly offered more points and preferential treatment in future airdrops.
Specifically, the following points can be noted:
- High Price Point: Node prices vary by Tier. For example, a “Tier 2” node is sold for 0.85 SOL. This is by no means a small amount for many airdrop participants.
- Prolonged Sales Period: According to source information, these node sales have been ongoing for several months and are reportedly not yet sold out. Truly promising projects often see such contribution rights sell out quickly.
- Campaigns Inciting Purchases: Campaigns such as “Node purchasers will share a reward pool totaling $500,000” are being promoted. However, this needs to be considered calmly. If thousands or tens of thousands of purchasers emerge, the per-person return could be very small. This can be seen more as a marketing tactic to incite purchases than pure rewards.
A structure that sells high-priced products to users drawn in by the promise of an airdrop is a point that should be carefully evaluated when judging the project’s soundness.
Dangerous Sign 2: Mysterious Funder: “IPA Foundation”
When assessing a project’s trustworthiness, the identity of its investors (funding) is an extremely crucial indicator. OpenLoop publicly states on its official website that it has successfully raised $15 million (over approximately 2.3 billion JPY) from the “IPA Foundation.” However, a deeper dive into this funder’s background reveals several significant questions.
According to data from CryptoRank and other sources, this large-scale fundraising was conducted by a single entity, the “IPA Foundation.” Furthermore, the past investment track record of this foundation includes the name “Havera,” a project widely known as a scam in the crypto industry.
Similar Case: Eerie Similarities with “Havera”
Past cases are important keys to predicting the future. Havera, which also involved the IPA Foundation, heavily advertised funding from the foundation, but the project ultimately failed, and many participants reportedly incurred losses. What’s even more concerning is the similarity in their tactics:
A foundation, purportedly an investor, intensively and excessively promotes only specific investment projects (Havera and OpenLoop) on social media. This raises suspicion that it might be self-serving authority created by project insiders, rather than an independent third-party investor.
Thus, the questionable credibility of the funder and the strong resemblance to past failed cases are significant risk factors for OpenLoop.
Dangerous Sign 3: Low Evaluation from Third-Party Organizations
A project’s evaluation should not only rely on its own announcements but also on objective third-party perspectives. CryptoRank, a site that aggregates and evaluates information on crypto projects, categorizes projects based on their trustworthiness and track record. OpenLoop has received a “Tier 4” rating there. This is a very low evaluation among projects listed on CryptoRank, suggesting that external expert organizations have given a harsh evaluation regarding the project’s trustworthiness, transparency, and technical feasibility.
Dangerous Sign 4: Predicted “Exit Scam” Scenario
Based on the analysis so far, a typical scenario for OpenLoop’s potential future actions emerges. This is a tactic known as an “Exit Scam,” used by many fraudulent projects.
- Cultivating Expectation: First, they maximize user expectations with announcements like “Launch Soon” or “TGE (Token Generation Event) imminent.” (This is precisely the current situation.)
- Creating Hype: Next, they announce concrete token issuance plans, generating excitement within the community.
- The Final Harvest: Then, they announce decisive conditions, such as “Only node holders will be eligible for airdrops” or “Node holders will receive 10 to 20 times more airdrops than regular users.”
- Disappearance: Users who don’t want to miss out on the airdrop rush to purchase expensive nodes in a panic. The operators then abandon the project, cease communication, and flee with the accumulated funds at the peak of this collection.
Of course, this is merely one predicted scenario. However, the dangerous signs listed so far are sufficient to make this scenario appear realistic.
Conclusion: How Should We Approach OpenLoop?
Summing up the analysis so far, we are compelled to conclude that participation in the OpenLoop project, especially any financial investment, carries extremely high risks.
In conclusion, the purchase of expensive “nodes” is strongly not recommended, as there is a very high probability of losing all investment funds.
For free point farming, which involves no monetary loss, it’s fine to proceed at your own risk. However, you should keep in mind that the time and effort spent, and above all, excessive expectations, are likely to go unrewarded. Most importantly, the basic self-defense measure is not to be swayed by sweet words and to avoid easily investing your own funds.
Summary: To Protect Your Future Self from Being Scammed. 4-Point Checklist to Spot Suspicious Projects
This OpenLoop case offers us an important lesson. When you encounter a new crypto project in the future, use the following checklist to assess its legitimacy. Adopting this perspective will be your most powerful shield in protecting your valuable assets from future scams.
- ✅ Does it demand high participation fees?
While claiming “free airdrops,” is the system designed such that it’s almost meaningless without purchasing expensive NFTs or nodes? - ✅ Are the investors credible?
Can you verify the funder’s website and past investment track record? Are there any suspicious points, such as unnaturally strong support for only a specific project? - ✅ Does it resemble past scam cases?
Do the funding scheme or community promotion methods resemble tactics used by projects that previously caused problems? - ✅ What is the objective reputation from third parties?
Beyond the project’s official website and social media, is there objective and critical discussion on independent evaluation sites and in multiple communities?
The world of crypto assets is full of innovative technology and great potential, but it also carries unknown risks. Not taking information at face value, always maintaining a critical perspective, and conducting your own research and analysis are the only ways to navigate this world safely.