2026-01-17 05:26:45

Recently, there has been an interesting phenomenon: a bunch of projects claiming to be internet finance actually have poor quality. Backpack founder and CEO Armani Ferrante recently spoke out about this without holding back.

He pointed out the common issues with these projects: severely crippled functionality, backward user experience, and rising fees. Some token projects are essentially stocks, but they neither pay dividends nor offer voting rights, and they lack the insurance protections that securities investors are entitled to. Others claim to be like banks, but even their basic functions are broken—no deposits, no checks, no payroll transfers, no cross-account transfers; everything is broken.

The most heartbreaking part is that they layer fees on investors at every turn while ignoring investor protection. Personal data is also made public to the world. At first glance, this business model is just about cutting all the good parts of traditional finance and copying the bad parts.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
6
Repost
Share

Comment

0/400

BearMarketSurvivor

· 2h ago

Oh my, this is the current state of Web3—cutting leeks and overcompetition geniuses --- Wow, the transaction fees are insanely high, and the features are still broken. I laughed --- Exactly right, a bunch of shell projects disguised as wolves in sheep's clothing. It's time to clear them out --- Isn't this just a Ponzi scheme with a different disguise? It sounds much more comfortable, right? --- No voting rights, no insurance, and still charging fees. Only a fool would get involved --- The heartbreaking part is that we knew this routine long ago, yet people still jump in --- It's always like this—innovative leather scams with stuffed fillings --- Armani is right; 99% of Web3 projects are like this. We're afraid of getting scammed --- Really, all features are disabled, but the fees are fully intact. Incredible --- It's just financial scams dressed in tech clothing—same soup, different spoon

View OriginalReply0

memecoin_therapy

· 5h ago

Purely a scam to harvest and trap, functions are completely cut, but no one cares about the costs This is what Web3 looks like now, promising a lot but actually accomplishing nothing Armani is right, these projects really just compile all the flaws Investor protection? Don't even think about it, personal privacy is also exposed

View OriginalReply0

TokenomicsShaman

· 5h ago

Basically, it's just an empty shell with no functionality at all. How dare they charge fees? This is really outrageous. They want dividends and voting rights, but end up giving nothing. These projects are just scams disguised with a Web3 layer, each more greedy than the last. Broken features, skyrocketing fees, and exposed data—who would dare to touch this? Ferrante is right; it's just a complete copy of the worst parts of traditional finance. So investors are just here to give them money? They can't even provide basic functions and still call themselves a bank—laughable.

View OriginalReply0

SerumSqueezer

· 5h ago

Manipulating the market without manipulation, not fixing what should be fixed, and the fees are ridiculously high—this is outrageous. It's just another scam project disguised as Web3; someone should have exposed it long ago. Armani is right—so many shell projects just want to harvest our gains. Tokens with no dividends, no voting rights, and no insurance? What's the point of buying them? Fees are getting more expensive, and features are decreasing. Who designed this trick? Claiming to be a bank but can't do anything—this cracks me up. In my opinion, they've just productized the scam.

View OriginalReply0

AirdropSkeptic

· 5h ago

These projects really just "take the dregs and discard the essence," incredible.

View OriginalReply0

DiamondHands

· 5h ago

The comments about cutting meat but not love: 1. Really, these projects are just wearing a layer of Web3 skin, scam the retail investors and then run away. 2. The transaction fees are ridiculously high and the features are still shit. I just want to ask, who the tm would use this? 3. Since there are no dividends or voting rights, what’s the point of the token? 4. They’ve learned all the flaws of traditional finance, and not a single advantage. Truly incredible. 5. Not only do they keep data private, but they also dare to charge such high fees? Laughable. 6. Claiming to be like a bank but failing at everything—this is just an empty shell. 7. Many projects in the past two years were exactly like this. It’s outrageous to still play like this now. 8. No insurance backing and you want me to hand over my money? Who came up with that idea? 9. I suspect those founders never really thought about how to solve the core problems. 10. Just want to cut a wave of retail investors; it doesn’t matter if it’s poorly done, as long as it’s quick enough. 11. Investor protection? Wake up, this is Web3. 12. Poor functionality, high fees, no security—this deal looks like a loss no matter how you see it.

View OriginalReply0