Web3 has introduced a new wave of so-called “thought leaders” and influencers who present themselves as experts on everything from cryptocurrency and NFTs to decentralized finance (DeFi) and the Metaverse. These influencers are everywhere—posting on Twitter, making YouTube videos, and offering paid courses on “how to get rich in Web3.” But before you dive into their advice, there’s a harsh truth to consider: many Web3 influencers are more self-interested than knowledgeable, promoting hype over substance and pushing their own financial interests over real insight. Here’s a look at why you should think twice before listening to Web3 influencers and how their agendas may not be in your best interest.

1. The Hype Machine: Riding Waves of Speculation

The Web3 space is a high-stakes, fast-moving environment, and influencers thrive on creating hype. New tokens, NFT drops, or DeFi projects are often overpromoted as the “next big thing,” but for every project that succeeds, countless others fail. Many influencers, especially those with large followings, build excitement around new projects to drive up prices. They’re riding the waves of speculation and encouraging others to join in, but when the hype fizzles, it’s often the followers who are left holding worthless assets.

Hype-driven promotion is dangerous for the average investor, who may buy into a project at its peak price, only to see it crash once the initial excitement dies down. Meanwhile, influencers who were in early can cash out and move on to the next hot project, leaving their followers at a loss. The constant cycle of hyping and dropping projects serves influencers’ financial goals, but it leaves investors chasing trends and facing frequent losses.

2. Paid Promotions: Conflicts of Interest Galore

Many Web3 influencers make significant money through paid promotions, accepting payments from projects in exchange for favorable reviews or “analysis.” These deals are often undisclosed, meaning followers aren’t aware that the influencer has a financial incentive to promote a particular project. When an influencer talks about a new token or platform, it’s hard to know if they genuinely believe in its value or if they’re just cashing in on a marketing deal.

This lack of transparency is troubling, as it means followers are being sold on products or projects that may not have merit. The influencer’s goal is often to generate hype and drive investments, regardless of a project’s actual potential. The resulting conflicts of interest make it hard for followers to trust any recommendation, as influencers are often more focused on securing the next sponsorship than on protecting their audience’s investments.

3. Pump-and-Dump Schemes: Manipulating the Market

The Web3 space has been riddled with pump-and-dump schemes, and influencers play a significant role in orchestrating them. In a typical pump-and-dump, an influencer buys a large amount of a low-value token, builds up hype among their followers, and drives up the token’s price. Once the price peaks, they sell off their holdings, causing the value to plummet and leaving latecomers with major losses.

These schemes are easy to spot in hindsight but challenging to recognize in real time, especially when they’re wrapped in flashy promotions. Pump-and-dump tactics are a form of market manipulation, and influencers who engage in them are acting unethically. Yet, the decentralized and unregulated nature of Web3 makes it easy for them to get away with it. For those following their advice, these schemes are a costly lesson in the risks of trusting influencers who may not have their best interests at heart.

4. Lack of Real Expertise: Big Talk, Little Substance

The Web3 space is complex, with rapidly evolving technology and financial models that require deep understanding. Yet, many influencers who claim to be “experts” are actually newcomers who jumped on the Web3 bandwagon recently. They may know enough to talk the talk but lack a deep understanding of blockchain technology, financial principles, or the long-term viability of projects they promote.

Many Web3 influencers rely on surface-level information and trendy buzzwords to appeal to their followers. They may have learned the basics of Web3 and crypto, but they often lack the in-depth expertise needed to provide genuinely useful insights. Their content is often designed to attract attention and engagement, rather than to educate followers about the complexities and risks involved. When you look beyond the flashy language, the lack of substance becomes apparent, leaving followers misinformed and overconfident.

5. The Cult of Personality: Loyalty Over Logic

Web3 influencers often cultivate a “cult of personality,” building fanbases that are more interested in supporting the influencer than in critically evaluating their advice. This loyalty creates an environment where followers are less likely to question the influencer’s motives or advice, even if it leads to bad investments. Influencers know that loyalty equals engagement, and they encourage this loyalty by framing themselves as pioneers of a new financial future.

The problem with this is that it discourages critical thinking. Followers may ignore red flags or warning signs because they trust the influencer’s persona. They become more invested in supporting the influencer than in protecting their own financial interests. This dynamic can lead to poor decision-making, as followers become unwilling to critically evaluate the advice they’re given.

6. Short-Term Gains Over Long-Term Vision

One of the most problematic aspects of Web3 influencer culture is the emphasis on short-term gains. Many influencers promote projects with the promise of quick returns, rather than encouraging long-term thinking or sustainable investment strategies. This short-sighted focus can lead followers to chase high-risk, high-reward investments without considering the potential downsides.

In traditional investing, long-term thinking is encouraged to weather market volatility and grow wealth over time. In Web3, however, the emphasis on short-term profits makes it harder for followers to build stable, sustainable portfolios. Influencers know that promoting short-term gains is more exciting and attracts more followers, but it’s a risky approach that doesn’t align with the principles of sound investing.

7. The Echo Chamber Effect: Reinforcing Bad Ideas

Influencers often operate within an echo chamber, where they surround themselves with other influencers who share similar views. This environment amplifies hype, exaggerates opportunities, and minimizes risks. The result is a cycle of influencers reinforcing each other’s messages, creating a sense of “everyone is doing it,” which pressures followers to jump on board.

The echo chamber effect makes it difficult for followers to get a balanced view of the Web3 space. Because influencers are constantly validating each other’s opinions, it can feel like certain projects or trends are a sure thing. This can lead to overconfidence and poor decision-making, as followers are swept up in the influencers’ collective enthusiasm rather than looking at projects with a critical eye.

How to Protect Yourself from Web3 Influencer Hype

1. Do Your Own Research: Rely on multiple sources, not just influencer opinions. Dig into a project’s whitepaper, development team, and community reviews. Independent research can help you see past the hype and evaluate projects objectively.

2. Be Wary of “Too Good to Be True” Promises: Influencers who promise guaranteed returns or quick profits should raise a red flag. In any investment, especially in a high-risk area like Web3, there are no guarantees.

3. Look for Transparency: Influencers who disclose their affiliations and potential conflicts of interest are more trustworthy. If an influencer never discloses partnerships or paid promotions, take their advice with a grain of salt.

4. Diversify Your Sources of Information: Avoid relying on a single influencer or group. Seek out knowledgeable professionals, read up on blockchain and crypto from credible sources, and join communities where you can get diverse perspectives.

5. Avoid FOMO: The Web3 space moves fast, but don’t let the fear of missing out drive your decisions. The pressure to “act now” is often a tactic to push followers into hasty investments. Take your time and make decisions based on your own research and understanding.

Final Thoughts: Follow with Caution

Web3 influencers have become powerful voices in the decentralized world, but their advice should be taken with caution. Many influencers are more focused on self-promotion and short-term profits than on providing genuine insights or protecting their followers. While some influencers may be knowledgeable and trustworthy, the current landscape is filled with hype-driven personalities who benefit from followers’ loyalty more than from delivering sound advice.

The harsh truth is that Web3 influencers are often motivated by personal gain, not by a desire to educate or empower. If you’re serious about Web3, take the time to educate yourself and make informed decisions. Be skeptical, ask questions, and remember: the best investment is in your own knowledge, not in someone else’s hype.