The Hidden Cost of Hype: Exposing the Dark Side of Web3 in the Philippines

The Filipino crypto community is one of the largest in Asia, brimming with potential and excitement. Yet, in the rush to embrace this new technology, many are falling victim to a darker reality. In a recent episode of the Kalye Tamago Podcast, hosts Mike Tamago, Teacher Kim Porsa, and Teacher J (Crepdrop PH) took a serious look at the common pitfalls and problems plaguing the local Web3 space.

Recording setup for the "Kalye Tamago" podcast, exploring the challenges of Web3 in the Philippines, set against an urban backdrop showcasing local culture.

Here’s a breakdown of the key issues discussed and the warnings every Filipino crypto enthusiast needs to hear.

1. The Deceit of Content Creators and "Rugpull" Referrals

One of the most damaging practices is the promotion of unsustainable projects by some content creators, often driven purely by profit from referrals.

• The Problem of the "Rugpull": The hosts noted that many projects—especially play-to-earn games—are launched with the intention of eventually performing a "rugpull," where developers suddenly withdraw all liquidity, leaving investors with worthless tokens [06:04].

• Referrals Over Responsibility: Content creators often drop referral links for projects that are about to end, or they fail to provide complete information, all for the sake of their own commission [07:22]. This is often done without a clear "Not a Financial Advice" disclaimer or the crucial advice to "Do Your Own Research (DYOR)" [06:43].

• The Cost of FOMO: A major problem is when creators or influencers, especially those with large followings, leverage the community's Fear of Missing Out (FOMO) to push projects, often becoming "greedy" in the process [09:24]. Teacher J shared a cautionary tale of one project that gathered 51,000 referrals but has yet to announce a Token Generation Event (TGE), leaving participants empty-handed [07:49].

2. The Trap of False Education and Paid Mentorship

Another significant danger discussed is the rise of expensive, low-value educational offerings.

• Selling Free Information: Many self-proclaimed mentors and traders sell high-priced courses, even though the same foundational knowledge (like support and resistance in trading) can be found freely available on platforms like YouTube [14:06].

• Scams Masquerading as Systems: Teacher Kim Porsa recounted a personal story of losing scholarship money by investing in an "auto-trading" app (referred to as Q and QB). The promise of "easy money" and the testimony of others on social media led to insufficient research, resulting in a total loss [11:01].

• Unresponsive Mentors: Participants in paid mentorships often complain that trainers become unresponsive after receiving payment, leaving students without the promised assistance, a behavior likened to a "network" scheme where "wala na, sa pera ka na" (once they have your money, that’s it) [15:22].

3. Flawed Local Events and Damaging Gatekeeping

Local Web3 events, which should be tools for mass adoption, are often ineffective or even counterproductive.

• Focus on Sponsors, Not Onboarding: Event organizers frequently prioritize "photo ops" and appeasing sponsors for funding, neglecting the primary goal of providing genuine knowledge and effectively onboarding new users [17:17].

• The Merch Mentality: Many attendees arrive only for free merchandise and immediately leave, failing to learn about the projects being presented [19:39].

• Security Concerns and Dangerous Sponsors: There are concerns about lax security at large events (e.g., poor ID/ticket checking) and, critically, allowing projects that pose a risk of identity theft (such as those that scan personal biometric data) to sponsor the event [26:48].

• Charging for Awareness: The hosts questioned the practice of charging a ticket fee for events, arguing that if the goal is to share opportunity and create mass awareness for legitimate projects, the knowledge should be provided free of charge [30:07].

• Language Barrier: A common complaint is the excessive use of English by speakers, even when the audience is Filipino. The hosts stressed that to effectively onboard the masses and ensure full comprehension, speakers should use Tagalog [21:17].

• The Gatekeeping Mentality: Perhaps the most frustrating issue is "gatekeeping," where established groups and figures hoard knowledge and opportunities (like whitelists and project slots) instead of sharing them with the wider Filipino community, hindering overall growth [31:38].

Final Advice: Be Smart, Stay Humble, and Learn

The final takeaway from the podcast is a call for a change in mindset, both from veterans and newcomers.

• Do Your Own Research (DYOR): Newcomers should always be smarter, more knowledgeable, and never be swayed by FOMO [41:35].

• Embrace Humility: Even experienced people should "stay humble" and remember that there is always "area for improvement and learnings" in the ever-evolving crypto space [41:51].

• It’s Not Too Late: The Web3 space is still early, and countless opportunities are emerging. By being thorough and discerning, Filipinos can still safely participate and grow in this industry [42:45].
  

This blog post is based on the podcast: "Kalye Tamago Podcast| Darkside of Web3 in the Philippines" by Mike Tamago.

Link to the video: http://www.youtube.com/watch?v=lKdnbX2waR0