What is DumpBuster (GTFO)?
There are a lot of scams and a lot of fraud in the cryptocurrency industry. It seems like every other project being released is some sort of scam and fraud is absolutely rampant on both decentralized and centralized exchange.
Now, tools do exist to help projects gain the trust of investors. But none of them are that great and none of them address the wash trading problem.
However, one project has emerged that is changing that. It’s called DumpBuster and the goal is to eliminate some of the fraud that occurs in crypto from parties not involved with projects. We will explain more in this article.
What is DumpBuster?
So, there’s a huge wash trading problem in decentralized finance. For those unaware, wash trades in crypto refer to the practice of buying and selling coins or tokens at the same time. The party is basically buying or selling coins to themselves to artificially inflate or deflate the price.
Why would someone do this?
They do it to drive the price of the token up and then sell their tokens. This has the negative effect of draining all the ETH or WETH from the liquidity pool.
Sometimes wash trading is done by the developers of a project, but that’s not always the case. It’s just as likely that wash traders will target smaller projects in order to drain the liquidity from the swap pool.
This can absolutely destroy decentralized finance.
And this is where DumpBuster enters the picture.
The project has a blacklist of Ethereum wallet addresses known to engage in wash trading. It also has algorithms to detect and block wash trades. Any project can use these functions in order to prevent wash traders from draining the liquidity in their liquidity pool.
Of course, if a project wants to use DumpBuster, then a fee is attached. But things works a little differently with DumpBuster than with a typical SaaS product.
Partner projects must pay a 1.9% ETH fee on all of their buy orders. However, the collected ETH is then swapped to DumpBuster’s token ($GTFO). The $GTFO is then locked in the partner’s wallet for 90 days. After 90 days, the partner can swap their $GTFO tokens for ETH if they want.
It’s a very strange SaaS where it’s actually possible to make money by using it (if the price of $GTFO) rises.
We actually really like these tokenomics and find it a lot more sustainable than transaction taxes or token burns. Granted, it does require that DumpBuster continuously partner with projects or the partner projects expand.
Why is DumpBuster’s Token Named GTFO?
DumpBuster probably chose the name GTFO for their token because it gets a little attention. It does not mean what you think it means, though.
The real meaning is the Get The Fraud Out (Of Crypto).
Personally, we really like this strategy as it’s a good way to generate some attention for the token. It shows a high level understanding of marketing in our opinion.
Who Founded DumpBuster ($GTFO)?
DumpBuster does not have an anonymous founder. In fact, the founder of DumpBuster is somewhat well-known in the gaming industry because he served as the community manager for Riot Games (League of Legends) and Activision (Call of Duty). He’s held various public facing positions in a few different game studios, but his role with Riot Games and Activision made him a well-known name in the gaming community.
He’s also appeared on the Joe Rogan Experience podcast and has a verified Twitter account with over 100,000 followers. This is not a fake persona created to dupe investors – Josh Olin is a real person.
This is something that we really like to see and gives us some hope in the project. We find it highly unlikely that someone like Josh Olin would risk their reputation by launching a blatant fraud project.
Where to Buy DumpBuster ($GTFO)?
You can buy DumpBuster on Uniswap or BitMart. It’s an ERC-20 token on the Ethereum blockchain, so you should expect to pay some fairly high gas fees if you decide to purchase it on Uniswap.
Is DumpBuster a Good Investment?
We actually really like the idea of this project and that it has a doxxed founder. However, it does appear to have some very strange price activity that makes us hesitant to invest in the project.
A lot of this strange activity can likely be explained by projects dumping their tokens once they unlock after 90 days.
That said, if you like the idea of the project and have faith that Josh Olin can sign up more projects to the service, then it’s probably a pretty decent investment. Just expect the token price to swing wildly whenever a partner project sells their tokens after the 90 day lockup period.
To summarize, DumpBuster is a project with a very noble cause and it appears to be delivering on the promises made to slow down the rampant fraud that occurs in decentralized finance. The doxxed founder greatly helps this project and we really do hope that this project takes off.
Wash trading in DeFi is annoying and prevents the growth of the industry.