TechFlow news — Ava Labs founder Emin Gün Sirer has issued a warning on social media about the growing number of low-quality Layer 2 (L2) projects in the cryptocurrency space. He noted that it's now extremely easy to build subpar L2 networks, and some chains change their narrative every other day. Some individuals are merely imitating those who are genuinely building, while seeking photos with Vitalik Buterin.
He listed several red flags indicating a low-quality L2 project:
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The project's narrative contradicts technical reality. For example, an L2 network with a centralized sequencer and no fraud proofs goes against the core principles of cryptocurrency.
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The project raises funds by selling tokens, yet lacks clarity on its future technology—this could constitute an unregistered securities offering.
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Founders dump their personal token holdings before launch, violating team vesting commitments. An eight-figure sale justified as "compensating employees" resembles behavior seen with SBF.
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Very low circulating supply, increasing the risk of price manipulation and synthetic lending attacks.
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Founders make inappropriate remarks, such as complaining about running out of cocaine—clearly unethical.
Sirer advised evaluating a project’s value by whether it genuinely addresses the most pressing challenges currently facing the cryptocurrency industry.
