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There are many projects asking investors to stake their tokens for APY but they collapsed later for example Midas, they offered 17% APY on USDC, the token went from 38$ to 0 and their swap feature is shut down..

I am just trying to warn you about Centralised Finance tokens and platforms, avoid taking big risks with CeFi Platforms.

APY can be tempting at times, powerful enough to make you turn your back on the vital parts of the project, do not compare APY of a CeFi project with others especially when the project is not that popular.

Now that we are even in a bear market, any projects offering high yield is a big red flag, this is not the time to focus on earning rewards.

DeFi or CeFi.
Bitcoin or altcoins.
Altcoins or stable coins.
Cryptocurrency or stocks.

High yields sound like more similar to Ponzi which will die when their money flow gets broken. With them, the laer you join, the more risk you will be rekted by rug pulls, collapses, bankruptcies.

High APY rewards are just baits to get yourself to invest in their project without even thinking of its cons. Looks like this is their way to attract newbie investors but let me tell you this, I have already experienced such kind of investment and when they gather enough income, they most likely disappear and leave their investors like what happened to us but thankfully I haven't invested any money but only my bounty rewards got wrecked because I tried to hold it but I haven't figure out that it will lose its value once they don't develop their project anymore and it's too late before I realized my mistakes. So it's better to leave this kind of project because there is no way someone will actually give you that much except if they are hiding some real facts and agenda and most of the time it leads to a scam.

Best example of this was the event on terra ust staking on Binance. The APY is really high that users are putting up their funds to stake. Even me got ruined by that offer and program.

Fools Gold it is.

It depends on the platform. Collaterizing some of those stablecoin could also turn out bad and reserve got compromise.

You are courageous to speak out and admit that you too also got fooled and your funds ruined by that. Alot of people will not admit it publicly because they fear the mockery that follows thereafter. But I have learned something from you now that everybody has their own mistakes they have made in life. Thank you for that. It is true that any staking site and project offering a high APY should be seen as a red flag that will later scam people.

This is a mix of "if it's too good to be true then it's a scam" and "never keep money for long on centralized platforms". Both keep to be preached and people still keep ignoring that in the name of earning some more fiat (ie fools' gold). Too bad.

I've read too about Midas. It's just another one that bites the dust. 2022 has made plenty of casualties.

Scams will continue to exist as long as billions of people lack proper education on money management. Swindlers will continue to mislead billions of people into believing they can make a fortune by taking advantage of them. Additionally, these con artists will continue to promote their bogus programs that can blind the greedy as long as there are greedy individuals. There is simply too much of a market for these con artists to stop. They can make money from it, so they won't stop.

Investing in a project that offers high yields on staking tokens should be done with extreme caution. Many projects have collapsed in the past, leaving investors with significant losses. Regardless of whether you invest in centralized finance (CeFi) or decentralized finance (DeFi) tokens and platforms, it's important to be aware of the risks involved. While these types of projects can offer attractive returns, they can also carry higher risks. There are no guarantees that any project will succeed, even if it seems legitimate and has a promising concept and a solid team.
As with any investment, it's always a good idea to thoroughly research and make sure you understand all the risks involved before making an investment decision.

Whether in a bearish market or a bullish market, any project offering high yield is a complete red flag. Most times we try ask ourselves where the yield is coming from. Without we the investors are the yield.
What the project owners do is to use the investment of about 30% of the investors to keep the system going until they cash out big and dump the project.
If the market is in the bullish trend, they can manipulate it for a longer time, but the bearish market exhaust their breathe faster.

not just for centralized financial platforms only. decentralized finance is also not that great when they offer quite a high APY. be aware of new or old platforms that offer that.
I'll be honest, even if I'm staking on a platform like Binance, I wouldn't do it either. those assets that have large trades, will tend to be with small APY. but with new tokens, they usually offer high APY. but once you lock up your tokens, the state of the market value will change enormously. maybe the number of tokens we have will increase, but the value will decrease.

All the services that gives you high APY are aimed at finding quick financing for investment plans, and if they have good financial management, this deficit will appear as a problem within two to four years, according to market conditions.

As for what happens from the platforms that promise you quick profit, most of them fail within 6 months or the first test, which means that long-term retention of those currencies is a sure loss.

• Do not invest in these currencies for more than 3 months.
• Always sell when the color is green.
• Do not be greedy, because they collapse quickly.

Actually its the truth, speaking through my experience. I am blinded with the daily return of the Ust APY, I think some are too since its a top project that didnt expect a down fall like that. Well maybe charge to experience those mistakes and gonna be more careful next time. 2022 indeed is one of my worst year and I do hope that it will be lighten up next year.

The word centralised always have some strings attached to it and all these projects offering you high APY have set up with motive to earn personal profits out of your pocket and you loose like in this case.If we say about DeFi then we see lot of hacks in it as well like Ronin network hack worth $600 Million so do you consider it safe? We need to get more awareness that how to keep your funds safe and in your custody.

The people usually get attracted to high yield projects without even looking into the details that could end up their funds with these projects and they have high chance of rug but still they are ignorant enough derived by the greed factor that they invest money in them.We already have lot of case examples and information about how they are making fool of people through these lucrative offers and then stake your funds offering returns but you in end get nothing but still they ignore these examples and preaches going by their mind into scam projects.

If it helps the reader to understand then why not share those mistakes, besides it's not about what the other people are thinking. It's the thought of helping the others that's why you share those mistakes that should not be repeated again.

These "fools gold" are rampant in the altcoins/tokens they are all the same sharing the same ideology but at the end of the day, they just disappear leaving their investors in the air hanging with lots of losses. Anyone who tries to enter these kind of market should do their own research and be ready with the risk of losing or invest to what they can afford to lose.

This is yet another reason why some people call crypto scam: how can a token go from $38 to $0. I just imagine if a crypto newbie was introduced to such a project by a crypto enthusiast who was blinded by the high APY, the incident would definitely create a bad impression for the newbie.

Hey dude, this is not the time to be thinking about APY especially from token like you mentioned. Just focus on investing because the bear market that is being held is an opportunity that you should take advantage of. I've never even been interested in staking, especially with the high APY percentage, it's just a trap that should be ignored.

Remember these opportunities will disappear as the market recovers, so have the right mindset about investing and take advantage of the opportunities that exist. But of course you have to do it in an amount that you can afford to lose. Just increase your portfolio in bitcoin or it doesn't matter if you want to diversify it with some other assets.

OP, do not let the bear market keep you down, but rather use it to its advantage by investing into something worthwhile. If you are an investor, this is one of the best time to invest because prices have been dropping over a long period of time, and now you have many tokens with low price. Markets go in cycles, with peaks and valleys. The only thing that is certain is that markets will not stay down forever. We can make the most of this situation by not being greedy, learning to hold on to our coins and invest in more promising coins.

This is why I said staking or invest in centralized company is really a dumb idea, they're too greedy to get those low APY but they take a risk to lost all of their coins. It's better for me to invest in Bitcoin and hold it on my non custodial wallet, the risk is almost 0% and there's a good chance I could get huge return in the future. So why I need to take huge risk to earn small return while I can go for low risk to earn huge return?

Such a high percentage on its own should be a big red flag warning people to stay away from such things whether it is centralized shitcoin giving 17% APY or a centralized shitcoin that you think you are staking decentrally.
This is a broken design used in monetary system too but there we have actual usage (ie fiat used in day to day transactions) so we only see inflation but in altcoins we have no usage but inflation that leads to people easily giving it up so they drop down to 0 (while fiat slowly loses value).

You shouldn't be patronizing any service that's centralized, they only have one fate which is collapsing and this can be caused from hacks or bad choices by the founders of the project just as we saw with the founder CEO of FTX exchange (Sam Bankman-Fried). You sending coins to this platforms only means you're giving up the ownership of your coins for some APY that mightn't be worth it due to the whole market dipping in price.

The example by the OP is just one of the few ones that have left many people bankrupt this season. Avoid getting deceived by this promises by the project and just invest in well established project like Bitcoin that doesn't rely on the CEO for your investment to be profitable. During the bear market, lots of projects will collapses so it's best you stay away fro patronizing any service irrespective of them been decentralized or centralized.

Yes whether centralised or decentralised, once you stake any token you automatically lose ownership of it until it is removed from stake again. Even some staked tokens using Dapps do not even get released immediately you requrst for them to be returned. There is an interval of days before that happens. Within this interval anything can go wrong and you lose the whole tokens, or when the price dumps badly. Staking is not a pleasant thing to go into even when you think the percentage or APY is great.

I have been tempted several times from ethereum/bsc yield platforms — bsc is notorious for scammy ones, however each time I hold myself and later be glad that I didn't bother with them when they get hacked or something.

Although, I have put some into osmosis's reputed pools, been doing fine.

Actually thats the thing there are no difference on concept on these staking. Maybe if they are gonna tweak a little those scary APY down to something safe then maybe. I am watching certain protocol called sandclock (quartz) and they got a unique way to handle APY. Maybe others could check how their protocol works.

Centralized systems are there to give people false hope by deceiving them with high APY just to lure them into using their platform, so that they can take advantage of your funds. This year's lesson has taught us so much that we shouldn't trust any exchange and some platforms that claims to be decentralized in disguise but are running centralized system.

Only bitcoin can face and stand any circumstance around it because of its decentralization, it should be our crypto investment and nothing else because it needs no third party for any APY thing,volatility controls that. Fuck the centralized system since they have brought pain to investors in the cryptospace this year,only greedy people will fall for them again.

Thanks for this warning, I am sure that it would do many people a favour. I have been careful of many projects in the crypto space, I don't even look at the side of the new tokens anymore no matter the name of the project. One has to be very careful these days that individuals and companies are using legit means to scam.

Anything aside from BTC and ETH is an abomination to me now, I will always do my investment, trading and calculation around the two.

In a sense you are right brother, keeping money in an centralized areas. projects can't be a wise solution because the better way of investing this money is to invest and use it in the trading of your own choice, may be daily or it can be long term of the person's own choice, otherwise the APY will give higher risk of loss.

That's why many people wanted this while scene to get regulated. Now that crypto is going to be regulated it seems to be a surprise that most of the freedom and pseudonymity is gone.
But that's what we ordered; less scams and more regulations. And regulators gonna regulate way more piercingly then people originally thought.

But anyone with a brain couldn't believe that promising 17% APY on FIAT MONEY based tokens isn't something they could promise. Even if that would be sustainable for a while they couldn't know about the market situation in the future, so promising something like that makes me think that they didn't have their own a lawyer to advice them.

Once I see that a project's apy is just too God to be true I don even bother myself with it. Because most times they just use it as a bait so that they can attract many other investors and at the end they will run away with investors funds.

Staying on big names of this industry would be a safer investment especially at the present wherein there's no clear sign of recovery and no one's certain of when will such thing occur in this industry. There are new projects which are promising but if you cannot afford risking an amount to the new ones, that is just fine but if you do, take time to think of which is which. All I know is that if bearish trend is dominant, no matter how good a project is, it won't be able to assure success on its outcome because it will have a high tendency to be pulled down by the market situation. I am also not saying that huge names of this industry are safe from it but atleast they'll behaving bigger chances to recover.

Stay away from such projects which give high APY.

Rules: Supply and Demand.

They get people to stake tokens by luring them with high APY, then the circulating supply of tokens decreases in the market, and the price of the token shoots up. (since the supply is less and demand is high... Demand is high because more and more want to take advantage of this High APY)

But when the unlocking/unstaking of tokens starts the price starts to drop. (people will have more tokens than before, yet they are at loss because the value of tokens is very low).

While a little bit late I consider it is important that people are finally learning this lesson, no one can offer such profits and remain in business for long, not even the best money managers in the world would dare to offer and guarantee such high level of yearly profits, and when that is the case you know there is something really fishy going on, after all look at what banks offer and you will find that those offers are in single digits and in many cases they are below 5% per year, so it is almost a given that anyone offering more than that is a scammer.

Those projects or platforms that do offer high APYs, they'll eventually go down when there are bunch of people started to invest and stake their required cryptocurrency there.
But for me, I'll just avoid those high APYs because they're not really sustainable especially if one of the requirements is to lock your asset on that platform, cefi or defi.
That's already a red flag and that's going to be a better thing to look at when someone is new to it.

I agree with you and that's exactly what happened.
Coin owners take advantage of investors and traders to take their own profits with large amounts.
Incidents like this happen more often in micin coin projects or you can say fake projects.
After several large investors enter and the coin will be released on the market, the owner and developer have first sold all the reserve coins they have stored or the owner can also buy his own coins with a larger amount than what the investor holds, then when the release is released the price will increase and the owner sold everything making the coin beat the price drop drastically.

in this situation there are so many altcoin projects that offer high APY and it's actually like a trap that lures investors into the trap after which they will just walk away. this kind of incident actually happened a while ago like Terra offered high APY and after that they left the project.
but incidents like this are sometimes ignored by some investors. they only think about big profits when the market is bearish. even though when the market is being attacked by bearish it is a difficult time to get big profits, except patiently investing in bitcoin.

That is very true. Many altcoin projects have collapsed in bear markets.
I say this because I have seen coins performing well literally go to zero in bear markets.
Matter of fact I had invested in Solana  because of its potential growth and good APY.
But the recent events made me unstake it and sell it for a loss. I had to cut the losses else we can see how low it is currently.
I guess there are no better coins than bitcoin and ethereum afterall.
Short term investments in bull run + long term investment in bitcoin should be our strategy now on.

I don't think so, it's on the platform and the community support I invested in two casino-based tokens with APY as high as 35% and the two tokens are doing good, we should not generalize even in the bear market there are exceptions to the rules that altcoins with high APY are bad to invest, these two tokens were doing great in the bull run and they retain their momentum when the trend shifted to bear market.
We should check the platform, community support, and reputation of the team, and still be wary of new tokens with high APY without a platform that has usability and can serve the community.

Indeed it becomes a risk when staking tokens on new sites. If they fail to sustain the project, they will eventually have to close the site. I think we can stake coins on trusted sites, Binance also provides a staking program. Even though the APY percentage is low, you are doing it on a site that has high trust.
So we shouldn't get stuck with the APY percentage offered by them. If a new project still has a high probability that the coin price of the project will drop, even the highest risk is the project dies.

All cryptos including Bitcoin can collapse in a bear market but top cryptos won't just go to zero. I think the ones that you are talking about are coins similar to meme coins and pump and dump coins. These shouldn't fool you thinking they are a good project just because you saw their values rising.

It only rise because they are heavily promoted and they sometimes promise investors that they will earn a nice return in a short period of time. We know they are only lying when they say that but there are still newbies who will bait on it. I think Solana is different from it but Solana is one of those great projects that one must keep for long term. You should have waited before selling at a loss.

Would this be applicable with the banks that are for high APY as well? Because I think that’s just a enticing factor to which banks are giving in order to keep your money in them, and then making you a source of money for them which is what usually banks do.

I think it is definitely a red flag when it has a high APY, and the project is somewhat sketchy

Almost any staking in a bear market is unprofitable, be it CeFi or DeFi. It doesn't matter which platform. At such times, tokens fall in value much faster than the staking reward accrue. In the best case, the staker will cover losses related to the drop in the price of the asset if he or she did not buy on the bull market.  It has been said many times before about high-interest staking, all this is a scam, slowed down or fast-acting. Sooner or later such platforms close or reduce rewards.

Every token offering more than 6% APY should be already taken with a grain of salt. Further research is needed on how they are making profit to offer that yield. If there aren't reasonable explanations, don't invest in the token, because it's likely they are simply creating hype through high interest rates to lure investors into the investment.

As interest is paid, investors start dropping the earned tokens on the market for profit. At some point, the supply exceeds the speculative demand, leading to severe crashes in price. As developers aren't fool, they liquidate all their holdings before the boat sinks for complete and then we see altcoins dying, with their prices reaching to zero.

All crypto money projects that do not have a decent income model but give high APY are scams. A project that pays more than 4-5% interest on dollar investments has to explain how it covers the difference between itself and real life. I don't think they'll be able to convince anyone other than the novice investors who have just entered the market. There are good examples in the past that will provide experience for new players in this market...

Yeah, or at least those who are offering too good to be true returns might be a scam after all. And with the worst bear market, this criminals will always want to find a way to make money still out of those who are suffering because of the bear market.

And it's really hard to read between the lines until it's too late. So that best thing to do is to just stir away from any offerings.

Just invest on solid coins like BTC and ETH or at least those win the top 10 coins and simply hold instead of risking your money on some projects and with these so called high APY terms.

It is because of this that it is so important to avoid making any mistake, and this is because if you happen to lose a lot of money this could lead you to make another mistake in your effort to recover the money you have lost so far, so those that invested in altcoins and that now are seeing their holdings becoming worthless are desperate, and in their desperation they are willing to take any risk if that means they can recover their money, so while in regular circumstances they will never invest in those projects, in their desperation they do so, which is a terrible mistake as they will lose even more money this way.

High Yield means more risks. So those who follow greed will be lost all their investments at some point. So exist when you have enough.

Well, It's easier for us to determine whether or not a project is most likely a scam or eventually fail. High APYs might be one of the primary indicator that you're in a serious scam.
However, some people ignores these facts because they got blinded by the high percentage returns.
I know, some of them already knew the risk, but still choose to become a willing victim. So, I guess this will go on forever, and scammers will continue to offer this kind of strategy.

Any coin that gives a insane APY is very likely some shitcoin that are trying to lure people. I don't understand how people still fall for those kind of shitcoins. Anyone will a little brain will realize that the gains they give will cause the supply explosion eventually causing the coin to die. Some even require people to lock their tokens which puts them into risk of never being able to sell or missing the opportunity to sell. Don't fall for those APY scam!

The cryptocurrency market have been flooded with lots of scams lately and most of the projects are just disguise Ponzi scheme in the name of project, I don't believe in centralized projects and as a matter of fact I try as much as possible not to waste my time on altcoin that have left many investors in debt.
High API a no guarantee if any shaking mechanism offers such as a 17% API return then it is too good to be true the return is understandable, be warned there are several scam projects all around.

Yeah I can imagine a large clustercrap of scammers spreading around crypto to take advantage of people right now. Especially in this trying times, I expect a lot of projects trying to just steal money from investors and if this was 2017, I would imagine ICOs just popping around in this board randomly.
This is why I stopped believing in ICOs back in 2018 after just one failed me. I just knew it would end in a wrong way and it will be a troublesome for me.

From the start, we should have realized that we could see the oddity of the APY being given higher than the others. We could consider investing if we already know old crypto. The high APY they provide for new investors, I think.

during this bear period, it is very difficult for us to make profits, but it is better to avoid ponzi schemes

One thing that needs to avoid is this kind of scheme, HYIP is just baiting for people who want easy money and also they offer rewards or bonuses if you "Refer-a-friend" which is a BIG red flag. It would be much better to do staking on a known exchange than joining those schemes and it would be much worth it.

Any project can shut down all of a sudden and high APY is the temptation that they have to put on the table so that investors try to grab their share of it. You cant propagate a scam if you are showing them that they will very minuscule returns. So this has happened from a long time before crypto and it still works to fool people easily and properly into giving away their assets in the hands of the scammer.

Today the money lost with some staking schemes - do you think it will ever come back to the hands of those who actually owned that money and had worked hard to earn it in the first place? No, the legal procedures will take years and by then the vicitim would probably be on their death bed.

So be patient and dont be foolish enough into jumping for every new staking/hyip/mlm or any other high-risk scheme.

Sadly there were many such platforms that went down in the last few months. Midas is not the only one. If you have staked a lot of money on such platforms and they suddenly shut down then this basically means a total loss of your investment which could have severe consequences. Obviously you should only invest an amount of money into crypto (or invery financial product) that you can afford to lose.
Also as you already said, if the APY that is offered or promised very high, then there must be something wrong. In order to be able to offer 17% on a stable coin there really needs to work out everything perfectly and as soon as the market goes down, those APY's can not be sustained anymore.

It is obvious that economy is bad, and people who are not good at their jobs, or people who are not good for any job at all, will end up trying to work towards scamming people. Think about it, aside from being believable, it requires you to have zero skills, you don't have to have any type of talent at all and you could make millions from it if you are good at it as well.

The worst thing to do right now is to believe people who tell you that you could make so much money from small cap stuff. Like "it is only 10 cents now, imagine if it goes to 100 dollars each!" type of talks are obvious ways to see something as scam or not, and anyone who says that will be promoting a scam.

It is very common that in times of crisis people in their desperation decide to commit crimes in order to sustain their families, so with the economic conditions not being optimal and people losing their jobs it is not surprising that some of them will decide to scam people online, and lamentably this market is the perfect place for people like them as it is easy to create a coin as it is demonstrated by the tens of thousands of coins we have and once they deceive you it is impossible for you to recover your money, with this in mind we need to be incredibly careful as to not fall victims of people like that.

The reason why there are so many similar projects is that they have tasted the sweetness of making profits in previous projects. The encryption market is a big cake, and everyone wants to get a piece of it. In the early or mid-term of the project, the project is safe. They don't present any major problems. When their funds reach a certain level. You must be careful at this time. Don't miss any news in the market, even if the news is wrong, watch out for yourself. "Scam" is not "scam" in the first place. Enough people fall for it to count as a scam.

Gemini, Celsius, NEXO. One of the remove the feature, one of them turn out to be a fraud and another one is going to be as well.
I don't know if there are some more, but these are the companies who are offering huge APY's to the investors who choose to put their money into their platform while doing nothing.

APY's especially those who are giving a huge APY's to investors really is attractive. TBH, I was attracted to it as well, but fortunately I didn't ever try this one because I always think "Where are they getting those funds that they are paying to the investors?"

As much as possible, stay away from projects that are giving high yield to investors. Staking is much safer than these ones, but even those has risks as well. Staking those altcoins at the top give you lower APY than those on CeFi platforms, but it's safer than those.

One thing is indeed what needs people to understand here , that being greedy will always bring us losing one way or another so forget the high target of investing and just look into what project is good and will serve crypto users and the world more than our desire to be millionaire instantly .
if you cannot distinguish scam project or at least have idea what are those and how they operate? then best to leave investing in altcoins and focus in bitcoin instead.