Dekado DKD: Open-Source Education, Exchange & Investing Ecosystem?

It’s becoming increasingly difficult to assess the quality of blockchain platforms While there are no global regulations that cover the launch of a blockchain platform, there are a set of de facto rules that most platforms must follow in order for them to succeed and prove their legitimacy.

The initial coin offering market is flooded with hundreds of low quality initial coin offerings, and many that are straightforward scams. The most common “scam” platform that is present in the market today are “lending” platforms, which typically provide investors with the opportunity to purchase tokens in return for a guaranteed profit.

While many lending platforms are relatively simple to identify and avoid, there has been a marked increase in the sophistication of some lending platforms, which makes them hard to spot. It’s not entirely accurate to say that all lending platforms are scams, as some may truly pay out on the guaranteed returns that they promise, but it is safe to say that they are all similarly bad investments.

Lending platforms, when assessed with a critical eye, are virtually identical to “high yield investment plans” or HYIPs. These simple investment platforms offer investors the opportunity to deposit an amount of capital into a managed account, which then pays a guaranteed daily return on interest over a specific period.

In most cases, high yield investment plans claim that they possess a team of “trading experts”, or an “advanced trading algorithm”. In truth, however, most HYIPs simply pay out withdrawal requests from older investors with the capital deposited by new investors until the entire system collapses.

Lending platforms are essentially the same, with the key difference being that instead of depositing funds into a managed account, investors purchase tokens in a crowdsale. Lending ICOs, which are also endemic in the crypto environment,  can be considered far more risky, however, as it’s easy for fraudulent ICO creators to disappear with all ICO capital.

In this article, we’ll take a look at Dekado, which is a good example of a lending platform that is a little more difficult to spot than others. We’ll highlight the key red flags that identify Dekado as a lending platform and examine the promises it makes to help you identify other lending platforms in future.

What Is Dekado Exchange & Investing Ecosystem?

Dekado claims to function as an “open-source peer to peer financial system” that is “truly decentralized”, and is thus essentially the same as most cryptocurrencies. Dekado makes several claims that it is a new kind of financial system that allows “everybody to profit”, but is, in reality, a lending ICO.

The most obvious indicator that Dekado is a lending ICO, or HYIP, is the references made to “terming” in the website. According to Dekado, “terming” allows investors to select an investment option and provide capital to the Dekado “trading bot”, generating guaranteed returns.

Perhaps one of the most irritation and confusing elements of the Dekado platform is the references to “staking” on their website. In reality, staking is used in Proof of Stake blockchain networks as a method of gaining consensus- Ethereum, one of the most popular and successful cryptos- will be moving to Proof of Stake consensus soon.

On the Dekado platform, however, “staking” has nothing to do with consensus whatsoever. It simply refers to a long-term investment program that allows users to earn “up to 120% return”, and is functionally identical to high yield investment programs.

Dekado DKD Conclusion

It’s clear that Dekado is attempting to use complex blockchain terms in an attempt to appear legitimate to unsuspecting investors. If Dekado were upfront about the fact that they are offering a simple HYIP, it may be worth considering as an investment. As Dekado is intentionally obfuscating the real nature of their offering, however, it’s likely that the platform is a scam.