Understanding InfoFi and AttentionFi: Key Red Flags and Defense Strategies

The rise of attention-based and info-driven financial models has created new opportunities—and new risks. Projects leveraging user engagement and information economics are gaining traction, but they often come with hidden pitfalls that can catch investors off guard.

What makes these campaigns attractive? They promise rewards for participation, community involvement, or early access to emerging ecosystems. The appeal is real, but so are the dangers lurking beneath the surface.

First, watch for unsustainable reward structures. When protocols offer returns that seem too generous relative to actual utility or revenue generation, it's a warning sign. These mechanics often collapse once initial hype fades and liquidity dries up. Second, scrutinize the team and development roadmap. Vague timelines, anonymous founders, or constantly shifting promises suggest the project may lack genuine substance.

Third, examine community sentiment carefully. Healthy projects foster open discussion, including criticism. If communities aggressively shut down skepticism or rely purely on viral marketing rather than technical innovation, reconsider your position.

To protect yourself: diversify participation rather than going all-in on single campaigns. Never invest more than you can afford to lose in speculative models. Keep FOMO in check by verifying claims independently before committing capital. Finally, understand the tokenomics thoroughly—how inflation, vesting schedules, and incentive mechanisms actually work over time.

These emerging models aren't inherently bad, but they demand extra scrutiny and disciplined risk management.