What is PAPPAY (PAPPAY)? Is It Legit?
Cryptocurrency has seen its fair share of projects emerge over the years. Not all of the projects have been wildly successful like Ethereum. In fact, most cryptocurrency projects have been abject failures that did nothing but enrich the founders.
In this article, we will discuss one such project – PAPPAY. This project generated some positive press when they launched, but that positive press quickly evaporated when the founders appeared to run off with everyone’s money. We will discuss some of the red flags of projects like this along with the red flags of this project specifically.
What is PAPPAY?
PAPPAY is a cryptocurrency on the Binance Smart Chain created with the intention of being used as a payment cryptocurrency. The whitepaper does not really go into specifics on how this works and relies almost entirely on buzzwords and general promises in order to entice investors.
There really is not much to this project other than the fact that holders of the PAPPAY can earn reflections because there is a transaction tax. It’s unclear what the exact amount reflected back to holders is, however, because the whitepaper gives two separate figures.
The next section will focus on the many red flags of PAPPAY.
The Red Flags of PAPPAY
PAPPAY has a lot of red flags. In fact, the entire project is one giant red flag. Nothing about this project seems legitimate. The red flags include the following:
The first red flag with PAPPAY is that it has anonymous founders. This does not always indicate that a project is a scam, but most scam projects in 2022 have anonymous founders, so it’s difficult to ignore this red flag.
The anonymous founder problem becomes an even bigger issue when combined with the other red flags of the project.
Project Does Not Solve a Problem
A fundamental problem we have with PAPPAY is that the project does not actually solve a problem. The stated goal of the project is to create a cryptocurrency that can be used for payments.
That’s not actually a problem, though. There are already cryptocurrencies out there that can be used for payments. Ripple, Bitcoin (Lightning network), Stellar, and Monero are just a handful of examples.
More importantly, people don’t use cryptocurrency for payments because cryptocurrencies don’t exist. Instead, people avoid using crypto for payments because the price is unstable or not merchants will accept crypto (network effect).
This brings us to our next problem with PAPPAY.
The project has an extremely vague roadmap and whitepaper. The whitepaper is only 10 pages and the roadmap does not offer any concrete plan on how PAPPAY plans on becoming popular enough that people will pay for goods or services with it.
That’s a massive undertaking and one that is usually done organically by a rabid fanbase (ie. Bitcoin). PAPPAY does not have a rabid fan base because the project does not offer anything new or exciting, so they need some sort of marketing plan to increase their exposure.
Of course, they do not have a marketing plan. All the project is vague promises and roadmap items with no plan associated with achieving said items.
Too High of a Transaction Tax
Finally, PAPPAY has way too high of a transaction tax at 12%. Visa charges 2.9% + 30 cents per transaction and allows customers to make chargebacks. PAPPAY does not do allow chargebacks because it’s a cryptocurrency, so the transactions are immutable.
There’s no reason anyone would use PAPPAY over a credit card due to the fees. Other cryptocurrencies have far lower fees and more users than PAPPAY, so they make more sense to use if someone wants to use cryptocurrency.
Was PAPPAY Legit?
It does not appear that PAPPAY is legit. The founders are anonymous from what we can tell, which is always a bad sign. Additionally, the project does not appear to have much utility and seems geared at duping investors into putting money into it.
For this reason, it’s a project that we would avoid.
Is PAPPAY a Good Investment?
No, PAPPAY is not a good investment. One look at the price chart tells the entire story about this project.
That’s the price pattern of a project that rugged investors. Sure, it receives price increases on occasion, but the price almost immediately falls to zero. It appears that some whale (likely the founders) immediately sells their tokens whenever someone buys any PAPPAY.
That covers it for all you need to know about PAPPAY and its legitimacy – this project does not appear legitimate. We recommend using the red flags pointed out in this article to examine other cryptocurrencies. You will likely notice a similar pattern amongst projects that have scammed investors.
To summarize, avoid PAPPAY. The project just is not that good.