In the world of whitepaper, finding legitimate investors backing up a certain project helps add confidence for curious investors. Using names of reliable investment groups, however, could be a technique deployed by certain projects to promote themselves without them actually being true.

The Importance of Backing Investors in Upcoming Projects

To put things into perspective, having a strong company linvesting in a certain project tells the public something positive about the project. Since these companies earn through the investments they make, they do not randomly select projects to invest in.

In a real life scenario within the crypto world, a certain project by the name Tank Battle Co used the logo of a company called GD10 Ventures within its investors segment, claiming that the group is a top investor without the latter actually supporting or making an investment.

GD10 Alarms #ScamAlert Clarifying Its Non-Involvement in Tank Battle Co

 
GD10 Ventures themselves clarified on Twitter that they have never invested or even supported Tank Battle Co despite the project displaying them as a predominant investor. The tweet started with the hashtag #ScamAlert.

The group then urged the public to be vigilant about certain teams that are applying this type of tactic. To add, GD10 noted that for those that are questioning what projects the group is investing in, they are free to check their portfolio or their TG group @gd10ventures.

GD10 Venture's Investment Portfolio

Per the portfolio uploaded on GD10's website, there was no mention of Tank Battle Co. Other legitimate projects that the group supports include SOLChicks, Star Atlas, Domi Online, Polkadex, Sienna, XION, UNVEST, TrustFi, Monsters Clan, Monsta Infinite, and more.

One technique that starting investors can apply is looking for profitable and reliable investment groups or companies and checking out their portfolio. Since these groups and companies invest a heavy amount into their research, they are invested in every project with the intent of making a profit.

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Caution on Following Investors' Portfolios to Find Good Projects

This, however, is not always the case as certain projects still do not do as well as expected. This is a common occurrence in any investment portfolio since there will always be winners and there will most likely also be some losers.

One of the most notable instances where this can be seen is in the investment portfolio of Alameda Research, as seen on Messari.io. Despite being a solid investment company, as evidenced by their portfolio, most of the investments, which can be viewed in the change vs USD YTD section, are in the red with some reaching up to -22.14%.

This, however, does not always attest to the profitability of the portfolio since the group's entrances in certain projects are more important. Despite a project coming in negative, should an investment group buy a lower dip, they would still be up positive in the larger scheme.

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Written by Urian B.

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