Bitcoin Forum

Two blockchain security firms have warned that the creators of a DeFi contract on the EOS network may have fled in what appears to be an exit scam.

https://www.coindesk.com/blockchain-security-firms-eos-defi-locked-crypto

No amount of warning will make some greedy fellows in this industry will make them decouple from defi trend, all in aim in making quick profits.
The rate at which new projects are been listed on Uniswap, you would wonder how scam this Defi is all about. The trading volume on Uniswap has been declining for the past days, this shows that the trend will soon collapse.

This is it another Defi project founders were caught up by greed and run away with the investor's fund., I hate to read news like this its make me angry and think that crypto industry is just a milking cow of those scam bugs and dragging out those legitimate cryptocurrency-based firms this must stop the industry leaders and state regulators should come up a solution regarding this problem.

Im not sure that awareness will prevent those greedy players to stop investing in the defi that was no fully audited. We have learned a lot from so many scam defi this week.

From that article and we know that so many scam defi has already created by the anonymous person. Some may steal the identity from others.
We must be careful with any defi that can't prove itself as a real person.

This trend gonna be crazy like ico bubble when a bunch of scammers appeared at the same time.

And that is also a warning to everyone here in an indirect manner, so be aware of the new things that are emerging through the current DeFi contract, as scammers continue to take advantage of these conditions to get new prey in crypto.

I've come to realise that most people are in the industry for the money and they're not really concerned about the risk involved. Defi projects have had several exit scam projects, but people are still flooding newly established projects to invest without doing research about the project. I feel really sad when I see people loose money from obvious scam projects.

This is what I'm worried about, many people boast of projects that use defi, in my opinion not all projects that use defi are good, because I'm sure bad projects will definitely follow the current trend using defi, and everyone thinks projects that use defi are not will cheat for their investment. So be careful when choosing a defi project, because not all defi projects look good and become successful.

You can report them in DeFi scams [history] (https://bitcointalk.org/index.php?topic=5268573.0). It is a topic for scam DeFi projects. It maybe not enough for lazy investors but if you want to help, you can leave your information on scam DeFi there.

And the crypto influencers are promoting any new tokens which is getting listed for a quick pump. How many such promoters are giving out some information like this ?

This happens because people want easy money, to the point that they don't consider the process and consequences because they are much more focused on how they will be able to get it. Nowadays, scammers would make every effort to gain your trust and provide plausible information. This is why it's significant to do a background check to verify if the project is worthy. There are different articles about Defi exit scam that will guide you before putting your funds at risk and always do prior research. Be careful and don't trust easily.

Every start up has the potential of performing exit scam and in the past most of them did but still people believe that this time every project is going to give huge returns for them.

Ignorant people will never learn so just let them to realize on their own.

ooh nooo its never a good habit to just hurry to invest all because its a defi project. this hype still is the same as ICO, you still need to investigate.  so many dex though so this sji111111111 could send it to any of it. chinese dex around or even the most popular like polonidex or the newdex  ;)

the only defi project that i think can be trusted in EOS is the Defibox and probably the Vigor.

It is so sad to see a very potential system such as DeFi be defiled by these scammers.  I hope those person behind the scam will be apprehended.   This should be another lesson for us that no matter how trending the thing is, we must always do our research and be not blinded by greed.

It is not about any specific blockchain network but due to massive defi trend we will see many news like this on each major network like eth and tron as well. But it is part of the game, we have to pick the right ones and remember that because this market is unregulated we will see scams and exit scams.

I read the same but I didn't just want to believe it but it seems to be real. That's why I keep warning people to never invest all their life savings on cryptocurrency.

There will be more of them in the next coming weeks. Right now, some of them are not yet uncovered to be a scam. But once the hype is over, you will see which projects are still standing strong and those which disappeared are only money-grab projects. Investors should not believe those overwhelming promises from these projects. Because a too-good-to-be-true reward or ROI is more than likely a bait for naive users.

What do you expect? This is 2017 repeat of ICO pulling an exit scam here and there. Investors should learn their lesson from the past and not repeat it. It's good that a third and independent party has warned us, but it is already too late as the website is no longer accessible, (first sign of an exit scam). And then those who lost their money will blame crypto currency as a whole for their foolishness.

It is still profitable if you exit that project early because most current DeFi projects do not have a specific plan and what people care about is only profitability.

I have been involved in a lot of DeFi projects recently but I will sell them as soon as I make a profit because the information about those projects is so small that I can recognize it immediately. Anyway, the scam project is still profitable but the risk is very high if you don't exit early.

We must be updated in news and in monitoring every projects were we will invest, it's not new that some founders of any projects try to escape or do exit scam in crypto world so we must be aware in every details, companies, their location, teams and project purpose. DeFi can be like another ICO that produce many scam projects that operates in the past and later on said to do exit scam, so do not plan to invest too long in any projects that are brought  by hype the profit is only sure at the start.

So we DeFi investors should be aware of this I got it from that article this is very risky indeed if there is a way to transfer the account on a smart contract that is supposedly lock then the scammers who created the smart  contract can always get away.

If only there was a better way for people to review all of these smart contracts on the different platforms, or even a way for them to get them reviewed by a certain group of independent coders. Not that I would still ever use them, but surely there's a way to see if they work against the investors.

They will do the same.
Nothing to expect from those defi projects that solely made for the sake of pocket money for the developers. The projects that are worth looking for are those existing already and have been stable.

Thanks for reassuring, but it feels like anyone who is registered on such forum at least will spend extra 5-10 minutes on research of a project one is investing in.
It is not a secret that a lot of defi projects are exit scams and one should avoid those at any cost

What do you expect. I mean, new hype project like defi means a new opportunity for some scammers to just produce shitty and fake defi to collect funds and then ran away afterwards. Just like those projects before which are ICO,IEO who were once hyped but not that long because of those scammers too.

Let's be aware of those popular projects now, its hot in the eye of fraudsters.

A few days ago, a service was opened on Binance that provides participation in the creation of new DeFi. I think that Binance is responsible for the new DeFi that is hosted on its platform, but we still need to be careful before we take part in them. So I think it's more secure than what we see on Uniswap.

all systems are made to make improvements, as well as defi, but can you guarantee it will be the best ?. so far I have not believed that there will be phenomenal changes. the behavior that is carried out is still the same as during the time when ICOs and IEOs, what means changes are only for a moment for profit only.

Thats not shocking anymore. When you visit the world on eth defi, you can see a lot of projects that have fled and this is due to the easy accumulation of fund due to defi hype. Normally they will raise fund and will rug the project once they earned enough funds that they think enough.  Too many projects like this so its not surprising to happened as well on other blockchain.

Very disappointing to see many Defi projects exist scam this days making uncomfortable for investors, too bad people are falling for this scams, it has been said that people should do much research to be sure of what type of project they want to invest on, this is new way for scammers to exploit people, everyone should take note.

Scam projects are not bad because if you come early you will definitely make a huge profit from that coin. I had a very good strategy before I started doing those Defi projects and it helped me to earn x3 or x4 profit in a very short period of time. Of course, those projects do not have specific products and most importantly, you have to sell them after making a profit because if you hold, you will easily lose all that money.

True. Investors needs to be more careful as this DeFi hypes are very dangerous, scammers are exploring with the hypes
and waiting for the opportunities take away greed and newcomers money.

What brings  this scam developers to take this place are those people who are not doing
their research just blindly invest because of the trends and not because of real usages and
additional developments.

The contract should be audited by a third party to check if there is no back door or there is a trigger that the funds or coins can be transferred at a certain condition, this is what happens to Tron based matrix and Ponzi scheme  where investors are surprised that all the coins in the wallets are all gone in an instant because there is a part there that can trigger for a fund transfer.

I will not be surprised by greedy people who want to make money fast, We have to be more careful because every new project that is trending will definitely be taken advantage of by scammers and yes it can reduce confidence in the defi project.

It is not a big surprise that we are seeing scammers following the trend. If you check back during the initial cryptocurrency hype you could see many coins popping up left and right and many scammers made their money and then came the ICO hype and the scam followed that and then the STO and the IEO and we have seen many scams and now the DeFi hype and if you say that it is disappointing and surprised then you are not following the market.

For people who have been here for a while now will surely see that stuff but if they dont then they are just new into this market yet they havent considered that this one is really just the same into those hype level that we have seen on ICO's and this is no different. Exit scams will surely be there yet scammers will surely just use things whatever they do saw on whats trending as long they can able to extract out money out of investors then thats surely an easy millions for them.Investors shouldnt really be easily get hyped or tagged along with this
new craze.IEO didnt really get that much of attention and now we do have this DeFi but i can say it doesnt really make something new nor relevant overall.

I hope, all will be careful and safe in this deFi era crypto business. Even if some things happen something suspicious, then that's what happened in wallet Waves a few years ago. What's on the watch is the hackers who can penetrate our wallets. Hopefully the bad things we fear won't happen to us.

I think the bigger warning will be for people to stay away from Defi if you are not able to take the consequences that will result in the end, especially those faceless Defi project should be avoided by any means necessary, it seem exit scam is a common trait of new Defi project, creating fake project to scam people.

Defi is so popular that why scammers are in the move to defi projects. I think its betters to dig deeper in the project before you support their project

The short term speculators will never care about that but the real investors will always do a deep research before try to invest in any project.

This project is very similar with the defi project called justswap which has been locking the user's amount.
the problem is not so many people can do a deep research for the code and mostly the locked happened caused by the developers were putting the backdoor or a code to make the coins can be controlled by the team.

everything that has a swap , farm on thier name should be watch out because clones usually come after the original and legit project became silent  . speculators are not investors and its not a problem if they wont reseach because they are not buying anyway but it will not be right if they post missleading and wrong information because other inoscent user might follow that  . code researching is new to me and it sounds hard but people usually research on common things  but thats a good suggestion , i didnt knew that code matters too .

All these DeFi projects' scams and hacks will only keep presenting a bad image for DeFi and it is totally bad because DeFi is or will now be likened to the ICO era, and we all knew what happened then, the death of ICO and many projects as well. If most DeFi projects continues this way, sooner than later, it will be hard for anyone to pay attention to them, in this way, new Defi projects will struggle to grow and the old ones might start losing attention.
However on the other hand, I will say most investors got scammed because they failed to pay attention to what matters such as the project idea and so on but instead they paid attention on hype. Now since the hype is down already and going down more, there is need to be careful because most projects will still look for a way to attract investors, where many will be scam developers looking for how to scam, just few developers will have the right mindset towards developing a good project.

This DeFi hype has given scammers another opportunity to exploit the greed of many to defraud investors. This is why I believe that there should be some form of regulation for the industry to mature and gain mainstream attention. There have been so many exit scams, termed rug pull. Just yesterday, some DeFi clone projects rug pulled on Uniswap and disappeared with more than $15 million.

Investors should beware of the project they are putting their funds into. Greed is a killer.