Theoretically, if this is a scam, so far only private investors with deep pockets, like vc funds will suffer and not average joe, because only those have been able to invest in LINO so far, including a $20 million fundraise by Zhenfund. I would guess they have done their due dilligence for us, so we can cautiously assume that this project is pretty legit. It is, like many other projects, supposed to be social media/youtube on the blockchain and LINO is going to be the currency for primarily the content creator reward system and also for governance, as you can stake the coin to be able to vote on certain types of changes.
Even though this project claims to solve the issue for content creators by removing the middle men that are now Silicon Valley BigTech, however LINO itself is also a Silicon Valley startup so basically part of the same crowd. LINO network will evidently largely rely on the company to run the business, so I just guessing that the "censorship resistant" aspect of the network might become an issue in a future where LINO becomes more relevant. DLive is now also part of LINO by the way and Youtube's largest content creator Pewdiepie has decided to move to DLive, so let's see how that works out.
Interesting project it seems where a lot of actual work is being done and they have good cards in their hands, so I consider LINO far from shady, although I am a bit concerned about the centralization and censorship resistance issues, but for now even on that matter I will give them the benefit of the doubt.