Bitcoin Forum

We are in the DeFi projects session, right? I'm very curious to know how new projects realize that this is the time for DeFi projects. One legit project can build a coin in a few days. So many projects have focused on the DeFi system. My question is, are these projects legit or is it just a plan to grab the investors' money on this DeFi hype?

No need for the new projects to determine as if this is the time for DeFi.

They are aware of it for which is the trend that we have. They are pushy if they won't be going with the DeFi and they are believing that their projects are going to do good despite that most projects lately are DeFi.

We are the same era with ico.

There's a lot of DeFi projects that cropped-up at the beginning of this year and are now coming to fruition. There are many more who've been around for more than a year, some even 2 years or more. This is not necessarily unusual as many crypto projects often linger for years before their initial concepts and development are ready to be deployed or pushed outwards. DeFi is not new, it's been around since the ICO boom and prior to that conceptually. What is new is renewed vigor in the ability to execute on these sophisticated projects, maturity of blockchain as a whole and a greater fundamental understanding/awareness of cryptocurrency as a whole to institutionalized investors.  

Some primary reasons you're seeing the current explosion:

1) The market was proven by Compound in an extraordinary fashion, leading many teams to expedite the release of their cryptos
2) The market is/has been demanding DeFi since it's the latest trend
3) Many team's recognized the trend and demand, therefore executing on a sale or release of their tokens to take advantage of the situation. - Essentially good timing and overall thought out
4) Coincidence that several backlogged DeFi projects all hit a critical-mass point in launching at this time
5) A lot of newer DeFi projects cropped-up over night to take advantage of the situation, with no inherent legacy or proven track record - Similar to ICO boom.
6) General consensus that we're no longer in a bear-market for crypto-currencies. No bear market means more investors, users, community members and overall awareness, boiling over to heightened awareness of such projects. The "Crypto-Winter" put many projects into a(n) deep-freeze state where they could not solidfy any funding or generate any awareness.
7) Uniswap DEX.


In essence, various of environmental factors and a proven market all correlated into an explosion of DeFi hype and excitement. There are a few external factors outside of crypto that attributed to this, but that's more speculative

Well there have been amazing projects and great teams that have delivered more than what they promised, prime examples can be synthetix and ethlend both have set the trend and now these DeFi based products in high demand.
As with all type of businesses whether online or offline when there is a big trend we will have to face scammers as well so if there are 10 genuine projects do prepare yourself about 1 or 2 scam projects as well so be careful and try to analyse each project critically before investing to stay safe from scammers.

This is a free market, no one really knows if this project are legit or not. They could be running ponzi schemes like hiding in those Defi, or they are truly the next big hype around crypto. But if we are going to compare them to the boom that what ICO in 2017, there are a lot of similarities, just a boom and bust cycle. So until the next  hype comes along, Defi will be here to stay to grab investors money or could be a scam.

It can be developed even in few days or week if everyone knows what they are doing, but the idea of the project made from the old project with slight chances which means most of them were created for money making not to bring any benefits for the investors.So as a investor just avoid getting into this Hype of DeFi FOMO if you want to save yourself from complete loss if the projects goes complete failure.

It's like a trend, once most developers whether legit or not sees a trend that is moving with much hype they will start developing their own projects which in most cases might not have anything good to offer. The Defi hype has grow up so much that most already developed projects are now putting in a thing or two features to tap into the hype; there was a time it was all about exchanges tokens and now it is all about Defi projects, tomorrow we might meet another. Nevertheless, in this trend, the first projects to bring up the idea always tends to be the most legit ones; hence only few Defi projects are worth it while others are out to grab investors money.

When a new trend comes in the market, everyone wants to follow that trend. DeFi's hype has been created in the market at recent time. And using this hype, many scammers are also planning to escape with huge funds. Since it is a free market, any project can come to the market. The project team will always want to convince you to invest easily. So your biggest job here is to thoroughly verify that project and then invest.

Can we justify these projects, those that were invented after these DeFi trends? After reading everything, can I assume that these DeFi projects can't real. Suppose I am interested in launching a project but now is the time DeFi trend, so my project should be DeFi related. Actually these could be valueless points.

I'm so sure that many projects will try as much as possible to deceive investors using DeFi to create fake Hypes, the little advice I can give to those newbies who aren't that good with research is to go for old DeFi projects like Synthetix or Just

You should look at each project seperatelly. If someone name them defi that does not mean anything about being legit.

Decentralized finance is a new buzzword and unfortunately, DeFi is not really decentralized. Look at MakerDAO for example, there is a thing, that should prevent disaster and this thing is called a master key. But, who decides what is the disaster and secondly, who would prevent the disaster and how? For me it seems like this guy who owns this master key can also cause a disaster.  ::)

You already knew it, they are riding the hype and wants to make some money, defi has been making a noise and we notice new defi projects popping out of nowhere. It is like some years ago. ICO is making a noise and then bunch of ICO has been launched and ended up ruining the system cause by scammers and fraud. I hope it will not happen this time, it is not on top yet this defi hype is still minor compared to ICO hype in previous years.

Maybe we are really in the start of a bull run isn't it? This is the trend way back in 2017, early on that year we have seen ICO's and then making a noise that lasted up to the last quarter of 2017 and pushing alt coins to it's ATH, almost all projects are successful, airdrops alone cost $100. But at the same time there are frauds and scams projects as well. There is a saying "history repeats itself", so I will be very cautious.

We need to be careful with the sprouting projects that are DeFi related as I am certain most of them are just riding the hype and the truth is, they just want to grab money from naive users. You will know if they are really serious with the project if they have good foundation and their plans are well laid out and they know what they are doing. I am guessing a lot of these will turn out to be disaster and many investors will be ruined if they are not too careful on these projects.

Some Defi projects are growing very well this year.  Defi project ratings beat the popularity of the exchange project.  fundamentally a definite defi project is pretty good like chainlink.  I believe the Defi trend will last a long time.  legitimate defi projects are certainly defi projects that already have partners in the real world where their networks can already be accessed by millions of people in transactions, investments, and as a very fast payment.  The Defi project that was born during the Hype Defi now, there is a possibility that their goal is only to make money from investors. Well, there is always an impression / experience / loss caused by every trend that is currently popular.  Every investment needs analysis and research first, don't be tempted by every developing issue.

Collateralization rate could be taken advantage by the scam team who rides this defi hype which means any team involve in a defi project can also crash their market if they intend to.Noting yet has emerge as scam but there could be one day. This hype will one day end but first it has to pump up the market to make more money out of it. Many have learned their lesson in the past I think if yo uare just cautious enough, you can liquidate before its too late.

This should be the right answer to the question of OP, projects are rated individually.

You can't say that altcoins proejcts are scam when not all the projects are scam, and you can't say bitcoin a scam when some people use it for scamming investors. Understanding of this matter is very crucial as that would give fair judgement on the market in general.

DeFi Projects.. as you can read on the words, it's projects, some could be legit and some may not.

You have the answer.

Only want to take the opportunity from the "HYPE" for taking all money from Investor, when some project type was popular/hype there will be another coin/token offering the same idea with a promising profit or solved the problem from the first project. However, just leave or do not invest for a new project who have the same idea. That's just a shit project for me.

so maybe it can be able to anticipate all the existing projects. but I am not sure if 100% of the projects will work well, maybe only 60% of the total projects will only work well and the rest will work on the results are not optimal or worse scam.

There are a few projects that are legal, but there are also many scam projects that take advantage of this hype to get money from investors. It's very similar to ICOs in 2017 and I've seen it before, so be really careful when investing in Defi projects.

Some long-forgotten projects now just change the name add defi and all, on the wave of hype they begin to grow, there is no trust in such projects, but you can speculate.

The defi projects werent really new, some project like chainlink and bancor already in the market for quite long which also represent a decentralized financial. It's just that defi project now is on hype and getting more projects. Before ICO is popular and we will soon see defi being part of history like ICO, IEO did.

Some projects are legit whereas some are pure and simple money grab projects designed to take advantage of the DeFi trend. If you will notice DeFi projects are popping up every day and I am sure at least half those would turn out to be scam projects.

Those who have already rebrand their name just got short term hype and when the investors will have realized if such project has no valut at all and it will be dumped again to the bottom price. I think that everyone has known very well about this and they will not randomly investing in any defi

The technology is evolving whether you call it hype or the next big thing as long as it is addressing issues about decentralization and privacy which this technology is giving and adding value to the technology it will and should be supported only time can tell if DeFi is here to stay or like ICO will vanish soon.

no one really can know which way the crypto market will move, the current trend towards a very hype Defi project in the market, our task remains to be careful with the offer of a defi program because the more hype the project can be exploited for fraudsters to become fields of getting investor money quickly.

Those successful DeFi projects are old projects of 2018, they are successful for a reason and it's possible that even bad developers and scammers will try to take advantage of the DeFi hype to raise money and exit scam, investors should be expecting this any time from now.

If there are new famous projects that are circulating, investors will surely come during the hype. Defi projects gives the crypto world a new hope to transform old projects into new, meaningful and trusted projects.
I just also hope that it wasn't build like those projects before just to collect some money and run. But i am very optimistic about this defi projects that aims to enhance financial products.

You can check some reviews here (https://defirate.com/projects/) to check out whether some defi projects are legit or not.

I think in the future, Defi may be the future of world finance and it is a prerequisite for us to step into the open finance. Traditional intermedialy platform such as Banks or Goverments have many disadvantages about centralizement and will be replaced by decentralizement of Defi

I think there were already existing Defi project for some time now in the market operating without so much attention back then, now it seems the Defi hype has increased alot probably because of the performance of compound project very recently or people just suddenly realize Defi project is the way to go ensuring easy access and inclusion, whatever the case maybe, it seem interesting to watch.

Not all DeFi projects will be successful, I'm not saying this to spread bad things about DeFi projects but some DeFi projects will be created to just take advantage of DeFi insane hype and investors money, investors please be very careful where to put your hard earned cash

scammers always find ways to scam people and they will keep up with the current trend In order to scam people .it is difficult to say which of them is true and which is not  scammers will use the idea of ​​defi project for their own benefit so they will come here and build their own project to make advantage to those people that also want to  follow the trend by investing in it.

Defi is the trend at the moment and everyone is talking about it.
But like every other trend or hype it will be replaced by a new topic in the future.
I think that only a small percentage of all those defi Projects that are being announced or released at the moment will be still here in a few years.
And those will be the projects whose development is has not started only 2 weeks ago to ride the Defi hype train.

I've come to know that in the cryptocurrency industry, we have a flux of projects and they come with the trend. I remember we once had the deflationary tokens as the new trend and several persons were joining the hype. I believe it's the season for defi projects now and after this we would have several others. One really needs to be very careful to avoid the risks involved in these trends.

The beginning was the birth of a new project that had new ideas and innovations that had actually carried out research for the future, so this project was really successful and was followed by several new projects and was also successful. But indeed after that will be born a new project that only aims to seek profits or projects made by people who are not responsible.

Not every projects are created years ago,many of them were created once the trend got hyped among the crypto investors.Probably many of them are legit but we also need to analyse is they are worth to invest? I will call they won't be profitable in long term so any potential investors should avoid getting into this hype trap.

It's still hard to guess, apart from DeFi, escrow is also considered a promising project but that hasn't been concluded yet. we don't know for sure, because this is all online and the activities that each development team is doing, we don't know. we are here only as participants or investors without knowing what is actually happening. so, it would be wise not to focus too much on just one, or too sure about a project that is hype.

I think that Defi did not attract new investors, but these projects made alive those people who have been in this market for a long time, but in the period from 2018-2020 they just waited and did not invest in any altcoins

There are both of them exist in the market today. The DeFi hype is real so there are good and bad try to utilize and take their chance with their new DeFi projects. You need to have some basic understanding around DeFi and do your research properly to know which one is legit and which one is just a plan to grab investors' money. That it.

I feel like the only hype that is defi getting right now is that "ico to sto to ieo" type of situation, now it is more defi instead, the world constantly changes in those worlds and people are putting up their money slowly into something first and when few people make some return everyone starts to pour into that instead.

It is just not that much of a big deal, eventually this will quite down as well and something else will get hyped, you will see and if you are reading this you will remember me saying this, whatever defi has right now, was what ieo used to have and what sto had before that and what ico had before that, and I promise you something else will have in a year or two as well and that new thing will be gone in 5 years as well. All of this because it is basically a cycle that keeps on turning.

I think that 80 percent of projects are just good schemes for receiving money from investors. After some time, these projects are planning to stop working and take all the money for themselves. only 20 percent of Defi really want to change the market

discovery one Defi open door to explore so many things for both new and already existing projects. This is how technology is. When there is a discovery of something people rush to understand what it is and how it can help improve their already existing businesses or how they can further improve on it but that does not change the fact that some project that has nothing to offer will come out to also be championing defi because they see it as a new method through which they can get more contribution from investors. Same way so many exchanges turn to IEO

This is the same as last year when ICOs became Hype, many successful ICOs and also many ICOs scam investors,
of course this makes us careful, and just like now DEFI projects have been successful, and maybe there will be many scammers coming.

A week later, Binance launches a new IEO for the Sandbox (SAND) project, which is related to DeFi. I am sure that the exchange team has thoroughly checked this project, so investors should not have any problems. If you go to the choice of DeFi yourself, then if there is insufficient verification, you are likely to end up on scam.

Yes, exactly the hype has been coming from Defi projects at the moment had been the same last year and it happened because of the ICO's. Unfortunately due to such hype, many scammers would take advantage of this situation by coming with the Defi concept to make people fool easily because of the current Defi hype.

The technological concept is interesting because it's a new style of technology that can improve the daily life and the safety of the project. However, the theory is excellent and that practically few projects are starting to take off the paper and put into practice and perhaps because of the high in this type of subject, the developers push this type of technology even more improving the cryto ecosystem. I will wait until the end of 2020 to get a broader view on DeFi.

This is much more difficult than create fake ico. DEFI is about the usefulness of the product and i think everyone aware about this right now. The investors will have needed to see what usefulness of defi that has already offered.

To answer OP I am sure projects didn't know about DEFI and they are just using the hype to ride the wave and rise some money by announcing defi in their project all of a sudden .

Well, there have been couple of topics focusing on the uprising of DeFi projects, especially those built on Ethereum block chain.  Definitely it's not all of them that can be legit, because seeing the new opportunities in DeFi projects and how investors are turning to it, scammers will definitely want to take advantage too.  If you want to join the train of DeFi projects as an investor, the you need to look before you leap.  One of the reliable ones I can strongly recommend for you is Oikos cash.  You too can check it out.

actually we don't need a lot of new projects or including like the DEFI Project because as we know that previously there were various Bounty projects such as ICO, ITO, IEO and not all of them brought good results. currently Hype DEFI has entered the market and even many investors are starting to be interested in joining it. I think we only need 1 real project and not a scam.

People always act like the door is closed and just one person is attempting to open it and when he does, there is this unpresidented rush. DeFi is a solution to the Banking system and it has so much hype and I personally feel that loads of projects coming on the platter of DeFi isn't really clear on the DeFi system as they just want to grab bags and make some good money apart from poeple solving problems in the DeFi space.

Many projects using DeFi momentum to start their project, but i don't think that is a bad thing.
DeFi project in cryptocurrency can create massive awareness to people outside crypto, it is indirectly inviting more investors to cryptocurrency world.

Nope they dont realize it. But they are just riding with the hype. You can noticed how new projects and even old one changes their concept for a sudden. Coti, origin protocol, and many more have become a defi due to the market trend. Even some far related concept have incorporate defi. Best example is verasity that totally change their platform model. Sounds crazy but thats how business marketing and strategy to increase liquidity.

I believe DeFi is going to stay for good it strengthens decentralization of smart contract, sol many DeFi are making huge volumes and headline in the community, but expect a lot of traps here because we all know scammers are looking to grab this opportunity to scam people they have done it in ICO there's possibility that they are going to do this on DeFi so beware everybody.

I think it's a natural thing, when the situation is not good as expected, they change their original platform to a defi platform. Business tricks like this can give you a lot of profit by taking advantage of the Hype Defi situation. I believe, we will see in the future there will be more Defi projects.

Actually since defi hype is a thing now. Most projects are jumping into it. Many investors of other known projects locked their money on defi and cant blame them as the project shows tremendous result in terms of profits. I remember compound project and how it grows and being one of the leading defi platform. I think its lucky year for ethereum as the defi hits and replace the failed ICO method.