Bitcoin Forum

Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.

Even the DEFI projects doesn't have their own stable coin isn't safe, so either they have their own stable coin or not, DEFI projects are always risky since they're offering insane return. LUNA isn't only the one DEFI project that failed, there are lot DEFI projects get abandoned or scam that you can search it yourself. I wouldn't recommend you to invest for long term in DEFI projects, it's only good for trading.

I have made more money from Defi Finances than anything in crypto space, thanks for your concern bro, I was one of the early adopters of Curve Finance, the returns are not high yield like you claimed, APY returns per year must be around 12% -15% for me to look into the project before investing, so not all Defi projects have high yield returns .. My concern about them is the security risk.

Also USD pegged stable coins is ridiculous to me because I believe that no stablecoin is truthfully backed by the U.S dollar.

If you feel that it's unsafe then don't proceed. I think that you're aware that many defi projects were done because of the intentions of the developers are not pure.

It's better to follow what you think is right and if you've seen some red flags then stop being interested on them anymore. What's better is to put your attention to the established ones.

And before any other altcoins that you may seem to be interested with it, we've got bitcoin and you're safe as usual with it but your safety will depend on how you keep it.

You did not share which DEFI project you are talking about, so you cannot expect precise feedback and advice on your question.


I believe that it is also clear to you, potentially higher earnings always carry with them significantly higher risk. low profit requires low risk, it's up to you. whatever we advise you here, the potential gain or loss will be yours alone. although it seems to me that you have already decided.

I personally would not enter DEFI in the long term, especially not at this moment because it is still unknown how long the bear market will last. this is the time when businesses going to be closed. and I don't think that will change soon.

If the project is completely safe, you can invest in the defi project; if not, it's better to find other projects. I think it depends on the results of your search for the Defi project and that is why you should look for more details about investing in the project.

The Luna case has made many investors worry about investing but I don't think it stops them from trying other projects. I suggest you only use the money you can afford if you are really curious to invest in the defi project. But again, it's just a suggestion and you should really search and collect more info about the project.

Investing in Defi isn’t really the great plan I guess. It doesn’t at all matter whether it has a stable coin or not. I am not saying that all Defi projects are bad, but still most of them turns out to be scam. If you don’t like your hard earned money and want to gamble with it, then investing in Defi will be really good for you. Else as always it’s best to choose the coin with good marketcap and invest in it.  Wish you all the best for your future.

I don't think you can find anyone giving a solid answer without the project in question. After all, a project can still succeed, even if the chances were rather minimal with the description you set OP. I think you can just study the initial setup and see what happens. I honestly wouldn't think of another LUNA happening, at least when thinking of possible investments since you'd probably end up assuming all of them to end up like LUNA. If you're that afraid then just stay away from Defi for now and invest in some other opportunities.

The point it, can you maintain returns from investments in Defi projects sustainable on long term? Or maybe you were just lucky to be on the right place at the right time so far? Anyway, 12%-15% yearly returns are pretty high, considering most investments considered safe don't pay more than 4%-5% APY.

And if you don't trust pegged stablecoins to dollar, I think you already have your answer regards Defi's stablecoins, since the concept is pretty much the same. There is no assurance they are backed as well.

This is probably the first time I've read a post where the issuance of a stable coin is a factor in making a decision to invest or not. I cannot really say much since you never mentioned it. Perhaps you should look deeper into the role of their native stable coin on the project's ecosystem or just leave it as is if you don't want to be bothered.

BUSD is also under pressure from SEC and other regulators due to a supposed breach and accusation of being a security. Paxos will stop minting it and Coinbase also announced it halt trading.

Binance should be alright despite this. They can still get all the necessary papers and partner with a new company that will mint new BUSD.

If indeed you have done that and according to you are fine as long as you are there then continue but it's just that you also have to prepare with all the worst possibilities that occur because regardless of whatever the conditions in my opinion things like this are still very risky to lose even though you are indeed Now in good condition.
Basically, in this case it is up to yourself as long as you are comfortable then do it when talking about advice then it stops before it's too late, especially if you have gotten enough benefits there even though it was as I said before all the options in your hands.

Whatever kinds of investment in cryptocurrency with DEFI project or not better take risk investing in altcoin with higher return profit later if price growing up suddenly than take invested on stable coins. I don't trust yet with stable coins after Luna coin network have been drop drastically and has potential with other kinds of stable coins will allow what happen on Luna stable coin network.

Better invested or trade on stock if you have decision with stable coins only and there are have guarantee can't drop drastically what happen with Luna network stable coins, the same between stable coins in cryptocurrency and stock with higher and lower more slowly and not my passion invested on stable coins.

These type of questions do not really matter all that much. Why? Because it doesn't matter what type of investment it is, is it a token, is it a coin, is it yield farming, is it nft, is it staking? None of those matter at all, they are totally useless and worthless when you look at just "how" part of it. What matters is how good the project itself is, because if it is good, then it is good in any possible way, if it is bad then ti is bad in any method. Ther are good staking defi projects with its own stablecoin, there are bad ones, its not going to be good or bad just because of its own stablecoin, that alone doesn't give us any hint at all.

Are there still DeFi projects with their own stable coins? If there are i wouldn't invest. Even if they got big. Or maybe especially when they get big i would avoid them because if i had to guess, i am assuming the whole peg could be dismantled with pure fud. And there's nothing easier than finding similarities for luna and and getting people to fear next luna.

You did feel unsafe, and you did know how UST ends up. It is crazy that you still take a look for such opportunity, the general condition for stablecoin is currently getting scrutinized due to regulation pressure, even if those projects are algorithmic stablecoin like DAI, which does not require centralized regulated entities, it doesn't guarantee its robustness. Heck, you did not even mention which project you are talking about.

Also, I believe with the current market condition and the uncertainty of the platform and the token security itself, any rate that platform could give is not going to be worth it compared to the risks.

It is important for investors especially newbies to research and evaluate DeFi projects carefully before deciding whether to invest in them, because people in the crypto community always say DYOR before you invest into any DeFi project.
Doubt is a sign you should be careful and if you have any doubts you should leave before it's too late, and I think DeFi projects and platforms are relatively new and come with a number of risks that I think are good for passive income or trading, so it's all up to you, and you have to do some research to find the best information if there is any doubt.

There are better option than this. Stablecoins aren’t that good in managing their legalities when the time comes and thus eventually they fail. With SEC and CBDC watching over the Stablecoins far more strictly things are now going wild really. Many Stablecoins projects are trying to keep up the 1 buck price by forcing the money into system and most of the time using money that belongs to the investors. This could be risky bet in the long terms. Crypto space has many more options but not limited to this. Best way you should go for other portfolios and earn back let’s say on staking. 

That is right, no matter what kind of investments you will venture into, you always need to do your own due diligence.
It doesn't matter if the DeFi platform has their own stable coin, the question is, how well do you know the project itself?
From my observation, it is indeed difficult to trust any DeFi platform particularly the new ones.
I was interested before also in staking some of the DeFi tokens before, but decided to sell off and not go with this investment route again.
You are always worried if when you wake up it is still trading in the market or it has still value, so don't want to go thru such stress.

We have seen the collapse of UST from the Luna project and we are trying to avoid DeFi doesn't have that good reputation anymore. Aside from many hacks that happen in that area, there goes the rug-pulling of the developers from there.
Because of those incidents, we're trying to become a better investor so that we won't be part of any next big rug pull and collapse from any project that can be found in the market. FUD and bad news does really affect these projects so quickly and most of the investors have that reflexes that we're reacting so fast whenever there is some bad news that has been seen. This is why the uncertainty in this space is a lot and if you don't want that experience, avoid being there.

I don't think that it is a good plan for long-term investment, moreover you yourself also doubt abut the project to be unsafe. Actually, there is no cryto investment that is surely safe 100%. But at least, we can press the risk and choose the one with a higher percentage of safe or not. For me, investing in the altcoins, moreover in the DeFi project, or even moreover in the new projects will not be safe. Because most of them are not able to survive until the bullish era or especially for the long term.
if you are still doubtful enough about this, why don't you put your money into Bitcoin? crypto

The cost that Luna had made could really make us think that investing in stablecoins is no longer safe but we can't just think that all of these stablecoins are can't be trusted, some are still worth it. But of course, we still need to act with caution and we should have to know deeper about the project that we are about to invest in. Risky, yes absolutely but this is actually what crypto is meant for. If we don't have the courage and if we are doubtful of such a project, it is better not to invest them.

If I were you I wouldn't even bother these DeFi thing these days since ever since they exist they are all good at the beginning but totally useless at the end. They were similar to ICO before or the so-called pump and dump coins but what is this stable coin you are talking about the?

Never heard of it before but still I wouldn't recommend you to invest on that you should choose wisely your investment plan because there are better choices out there. You just have to find the right one and I believe Bitcoin is one of them.

I agree. It will never be right to generalize. It is a given fact that what happened with LUNA gave 'trauma' to investors of it and a a bad impression to non investors of the said token and to this industry in general. But stable coins are still a good choice of investment especially if the project itself is promising. What yields to a bad outcome is not managing the risks involved; there is a right time to enter and exit. Some people just let their assets on their wallets for a long period of time believeing of stability and consistency which in the first place, does not exist in this industry.
Depends on your vision as an investor but that is indeed true that most of the stable coins market value are falling in the long run. Defi projects based on my experienced are good for a year of holding but longer than that seems scary. Stable coins should be stable as it name implies but it happened that every existing coin in this industry are being influenced by overall market trend simply because demand determines the market price of a coin. Enough reason to be cautious of every price movement no matter what project you are into.

You may have your reasons for wanting to do this but if this was my money I will avoid DeFi projects whether they had a stable coin or not.

And this is because most of those DeFi projects are not really decentralized at all, so once the regulators put their sights on them you can be sure a great deal of them will collapse or turn into scams, and when that happens you do not want to have any money invested in them as it is likely you will never see it again.

That a DeFi project has its own stablecoin or not is not a basis whether it is wise to invest in it or not. Look at the project itself. Take note of what it is offering. Does it have a product that is both practical and working? Take a closer look at the developers and owners of that project. Luna didn't mess up because it has a stablecoin. It messed up because it is run by a scammer named Do Kwon.

But to be safe, you better start by assuming that the project is a scam. Guilty until proven innocent, that's the way to screen altcoin projects these days. Any project is a scam until it is sufficiently proven legit.

the reason to have a stablecoin or not, it will not reduce the risk of any Defi project you want to invest in. there are other factors that make altcoin projects survive in the market. there are many good and popular altcoin projects, why don't you choose one that is popular? or maybe you can convey the Defi project that you mean, some other members might be able to provide input to you.

It has always been said that any project could make you money, as long as it is legit and does everything right. I think it's a lot easier if you just named the project, if you say that it is defi or just stablecoin return or anything like that, it wouldn't mean anything to us, and everyone would just make a guess.

But, if you name the project, it could be checked closer and people could make a lot better calculations of how serious it is or how terrible it is and that would be a lot better review of whatever the result could be. Even in that case we could be wrong, we could say it's good and you may lose money, or say it's bad and it goes up, it's never certain what coins will do.

I don't trust Defi projects with stable coin after what happened to Luna some months ago, we all should have learn from that and defi projects like that should be discourage because protocol can be manipulated and lot of damages can be done to investors who know little about this defy projects. When projects with stable coin crash, they hardly compensate users, what follows is always an appology from the team and the CEO and go into hidding because they fear SEC will come after them, I will always used USDT or BUSD when the need arises.

It is always the same story, the only thing that changes are the actors, I would think that with so many examples of the same happening over and over again investors should have learned their lesson already and refuse to invest in those projects as they are not really decentralized.

But each time I think about this I am surprised by the ability of investors to ignore those warning signs and invest in those coins anyway, and when I see that I simply wonder how long it would take this time around for those investors to lose their money.

Investing in any type of cryptocurrency or DeFi project comes with risks, and it is important to do thorough research and understand the potential risks before investing. Stablecoins, in particular, can have their own set of risks and challenges.

Stablecoins are designed to maintain a stable value relative to a specific asset, such as the US dollar or a basket of commodities. They can be useful for traders and investors who want to avoid the volatility of other cryptocurrencies, but they can also be subject to risks such as overcollateralization, regulatory challenges, or liquidity issues.

When considering investing in a DeFi project that has its own stablecoin, it is important to evaluate the stability mechanism and ensure that it is transparent, reliable, and adequately collateralized. You should also consider factors such as the project's team, technology, use case, and market potential.

The Luna stablecoin incident that you mentioned is an example of the risks involved in investing in a DeFi project with its own stablecoin. However, it is important to note that not all projects are the same, and some may have stronger security measures and risk management protocols in place than others.

If you already feel insecure about it, there's no point in trying to force yourself to invest in it. Once invested, there is nothing called safe, especially with highly profitable projects; once invested, you must accept risks and do not be too greedy when you want safety and high profits. Not even bitcoin can help you do that. To me, altcoin projects are like Ponzi projects, at some point, they will disappear with our money, so it is wise to invest in altcoins.

There is no safe investments when it comes to cryptocurrency. Not even investing into Bitcoin is considered safe.

So to answer your question, it's always a no to me because at first place, there are no safe investments in crypto. Remember Terra Luna? It has it's own stablecoin UST, but what happened to them? The project failed, became a fraud project and many lost their money. Though the project is still running like nothing happened in the past, the trust of their investors surely was affected heavily.

If you think that you have doubts on that project, you have 2 options. Either don't invest on that project at all or do a deep research into it. There is also a problem with Binance with their stablecoin BUSD. Not a DeFi though, but still it has it's own stablecoin.

Anyway, is there any DeFi projects here that has their own stablecoin? Because I don't know any project.

You need to know how the stablecoin in that project works if it works like Luna then you can find the other project. We are never able to guarantee what is safe in cryptocurrency since they all have big risks with big returns, if you want to feel safe you can choose stocks for little risk. Don't forget that most stablecoin in crypto is not 100% backed by real fiat money so careful when choosing.

why not give the name of that said project so we can check deeply ? we can speculate about what you are asking but the problem is we cannot directly address as we have no idea what is that kind of project then as DEFI is now in verge of collapsing as there are so much to blame about what had happened to other projects inside  this popularity.
not because stable coin has been mentioned meaning the said project is safe because we have seen this in LUNA so never believe what you see now and what to happen next.

My point of view is not just a defi and stable coin, it seems that the current investment is not good because everything is in a market that is not doing well.
Invest in the top 10 coins and follow the market so you know when to enter

Maybe it's best to do your own research regarding investing in def projects. Now, when you see that it's okay and you think you're comfortable, make a decision based on how you feel.

Because you yourself need to learn and know what to do when choosing a token or coins that we intend to buy here in the field of crypto space. After all, you haven't mentioned what kind of def projects are these/

You are obviously not familiar with the problems that BUSD had after the SEC approached Paxos about stopping the issue of this coin. Whether BUSD will be traded on exchanges in the future is not yet known for sure, but it is already known for sure that Paxos, which is the issuer of this stablecoin, has already stopped issuing BUSD and started burning.

It depends on the stablecoins mechanism on how they peg their token. The reason why UST failed is because the founder sell its stablecoin in discounted price while it’s mechanism to peg to $ involves the value of Luna that automatically adjust the supply in able to peg UST to dollar. A normal stablecoin that backed by real $ in the bank with proper audit is safe. Luna is just so dumb to launch a stablecoin that pegged on their own token that is not stable.

DeFi is on the brink of downfall due to the worsening global economy. I really doubt that investing on DeFi is still a good idea because crypto market is dumping which means that no one is willing to lend money is worst economy.

If you don't feel comfortable with the project that you want to invest, Just don't or you will regret it whenever a bad thing happen to that project. It is proven and tested that not all stable coins are safe and the mechanism behind those stable coins are different and not every mechanism that we think a genius way to peg a stable coin is effective in real life. We have seen it with our own eyes about Terra own stable coin being deppeged because of investors unforeseen situation which others took advantage of.

Having a stablecoin or not should not be your determinant. You have to do backside research on the project, check out the team members if they are being honest and talk to the advisors for their opinion before putting your money in. Every crypto project out there has been promoting itself as the best but literally zero have gone up in the last 2years.

Hence my opinion is to observe before investing. Most DeFi projects have not done well. Watch for at least a couple of years before jumping onboard.

Investing in DeFi projects with stablecoins carries risks, requiring careful evaluation of potential rewards. Stablecoins can stabilize platform tokens and increase their usefulness, but smart contract bugs, liquidity issues, regulatory uncertainty, and market volatility pose risks. Different stablecoins have varying risk profiles based on collateralization and underlying mechanisms, with some backed by fiat currency and others algorithmically stabilized. Conduct due diligence before investing.

Even though the Defi project is safe to invest in, it still carries risks and we must be prepared for all the risks. If you feel the project is unsafe, you better not try to avoid the risk of fraud in the future.

Such projects can always tempt investors to try to join their projects with the promise of getting big rewards. But we as investors must be wise in reacting and better find out more about the project. If necessary, we can talk to the developer or his team to get a definite answer about the clarity of the project before we invest.

That's not possible, no developer or project team will ever tell you they're going to scam you. They will say what you want to hear, the project will run for a long time, and profit up to hundreds of percent...You are so naive, they create the project also with the purpose of making profits and profits from investors like us. If they said they would scam you, would you still invest? Financial markets are where we take each other's money, so no one can tell you when they will take yours.

Do your own research with your own experience and knowledge, and don't listen to anyone, especially the project creators, because they want you to invest in their project.

Yes, but it's decentralized stablecoin. Maybe it's another niche to eliminate the reliance on traditional stablecoins being controlled for regulation. We can't be reckless with continuing to believe in tether, the experience of BUSD could be a clear proof of its risky situation. I'm also learning about a project that builds defi finance, and has its own stablecoin backed by bitcoin.

Well, choosing stablecoins for investment is not a great choice. It was not because of being centralized and controlled price but due to the previous history of Luna bringing something unclear situation. I do admit I was still using BUSD but never I use to hold them long, it was just for some transactions. It was not the worrying part I see about stablecoins because it still usable in the market. Nor do I think defi is a threat to the market cause I know they have been created for some reason and so people give trust and invest in them.

Creating your own stablecoin even if its a decentralized might need a lot of work and a lot of money, so better to focus first on the core products or services that you are going to offer, you can just have this in the future as part of your development. Decentralized stablecoin might be a good idea, just like DAI as one of the good stablecoins to date, but still there's no assurance for its safety that's why many are hesitant to buy as well. For me, there's no need to create your own stablecoin, many investors still prefer the top coins for this.

Creating a stable coin is not as easy as some claim and we have many examples of this, if there is a bug on the code then hackers can use it to steal a great deal of money, the trust on the coin is lost and then it collapses, this could also happen if the developers are found to be lying about their reserves and the ratio at which their stable coin is backed by fiat, and if the difference is too big this alone could cause the stable coin and the whole project to collapse.

Hmm, Defi + stable coins in one sentence? doesn't sounds right to me. So I will agree that there are a huge risk, or shall we shall red flag seeing this kind of marriage. Defi alone for me has huge risk already, it might be one the latest hype, but still though, I'm not that comfortable and I will say that this hype might die sound. And we all know that there are a lot of pressures too, from regulatory body about stable coins, so it's going to be a double whammy for the developers and the people behind the project on how to get a balance between the two, in my opinion.

Actually a person research about certain projects if he get positive feedback then he desires to make investment in it and if he does not get any positivity then he do not want to make investment in it. Investment in every project is risky the important thing is that you should manage that risk and you should have create idea and action according to that risks. You should know that not  single project is safe completely it up to you that how much money you put and for how much time you keep it hold so making concept about defi project is very useful before participation.

Most of the time, early investors get good returns - regardless of whether the project is DEFi or not. The main thing is not to put your money in pools for the long term, as the interest earned may not compensate for losses due to the likely drop in price. There are many defi projects right now, and only a few will survive.

Reading from what you wrote it looks like you yourself are not sure what you want to invest there. what if I offer you a suggestion for your investment?, you should look at a project that can convince you to put your money in it, secondly you look at the prospects for the project, if the project has a clear roadmap for future use cases, and there is a good team and developers great you should invest there. I think this is a little shadow that I gave, you can find it yourself

as long as you can take advantage of the moments and trends that occur, you will get good profits, indeed for the long term it is not good to hold, considering that this will only happen in a momentary trend. if the trend is over and there is a decline, it will be difficult to recover, especially if we keep holding it, it might just turn into trash, therefore we must be able to analyze properly and be able to take advantage of the situation

I don't think it's a good idea for a DeFi projects to still be into stablecoin so I think your decision to avoid such projects is good.

Stablecoin requires much more than other crypto because it is not supposed to be affected by market forces, and this is going to be unsustainable in the long term because eventually market forces will break in and cause it to de-peg.

maybe you can do some research first but after seeing luna and the community then luna collapses, then of course it makes people doubt and it's very difficult to tell what's good and what's not.for me personally it is difficult to determine if there really was a case like the second luna or ftx a few months ago.

Have you analyzed the Defi project ? What can convince you is that with your own analysis and not someone else's opinion, you need to look at the roadmap of the project and how big the Stablecoin use case will be in the future. if the large use cases of the defi stablecoin project are in the future and benefit the community then in my opinion you should invest there and it is safe with your assets.

It seems to me that some developers out there think that this market is always on a blank state or something and that whatever happens on the market will have no effect on them, but this is not true, stable coins are proving to be extremely vulnerable to manipulation and they are nowhere near as stable as they promote themselves, and this being the case then the trust on stable coins is slowly disappearing and if they keep collapsing it may never comeback.

I don't invest in coins with Defi first. Because the platform is very risky. Bitcoin, Ethereum, BNB all these platforms are very safe. We saw in 2022 that the Luna platform turned into a complete scam despite its stable coin. But all other platforms are not destroyed. For example BNB is a platform whose stable coin is BUSD. So I think DEFI is too risky for any of you to invest in. And now its popularity has waned to a great extent.

It really depends though. Even before Luna's stablecoins a lot of people lost their money on UST Luna. UST Luna before already got a huge market cap but still ended up losing all.
For me, a lot of DeFi projects now that is still unknown of their future, even how quality the project is, there is still a lot of possibilities to be lost, like losing a lot of funds due to hacks or bug to their codes.
Just invest what you afford to lose then just incase if anything bad will happen, you know you afford what you lost.

Investors need to stop asking if an asset is safe or not, the answer is always no, investing involves taking a risk and being willing to accept that if you invest in an asset then that asset could go down in value, and if you really begin to think about it everything has a risk, as even keeping your cash under your mattress involves a risk, as you are losing the purchasing value of your money every single day by keeping your money there, and until people learn this simple fact then they should not invest on anything.

The market is unpredictable because we may not have a clear understanding of what it has to offer. The difficult times we have gone through have all been experiences and lessons for us to learn from. There will always be mistakes, and they must be fixed in order to prevent repetition in the future. Although Luna was a good project and everyone has a good fate in the project, its failure shocked everyone in space, especially those who held onto their coins because they lost everything in the unexpected collapse.

if you're hesitant then I think you should refrain, it is indeed that defi platform with stablecoin seems like bad combination honestly, even stablecoin coming from big exchange doesn't guarantee anything since there has been many cases of collapsing, i'd say just invest in something that you think is good enough, you're the one to make your own decision, slight doubtfulness definitely could be worth making further analyzation towards the platform.

Since the amount of money I lost investing in Luna, I have given up thinking of investing in these coins. Not only has Luna disappeared from the market, there are many other ALT coins that created a lot of potential in the market but later disappeared from the market completely. So when you tell me about investing in these coins I would say that it is better not to trust these coins. Because when a coin will completely disappear from the market again, you will have to pay for it, so think before investing.

My best advice for Defi project investors is to get in, make some money and get out before the walls come crashing down, Defi projects are not that reliable, and those ones creating stable coins are very shady, it was the same thing that Luna team did.

Also let me ask you this question, are these really any crypto projects that are completely safe? I think it's a big NO, Bitcoin too is not completely safe but more reliable because it's truly a decentralized project. Every crypto investment is a high risk.

The aim of the DeFi project was launched to make it easier for users to trade and farming sistem when they want to get passive income from their tokens.

I think every DeFi project offers the same thing but the level of security is an important concern, every investment always has a risk, Luna has another story with the Depegging UST system, but some DeFi projects will learn from that experience.

if you are still not sure then I should advise you not to invest because your mind is not calm. Just be patient and wait for your mind to settle, but if you have no concerns about other projects maybe you can try it out there, but do your usual research before investing.

I think if you still have trauma from project defi you should avoid it first for your peace of mind, or maybe you can try investing in another sector first, then come back when everything feels better, I always use this method and it works.

I think you shouldn't invest only in Defi projects. Because we saw the Defi hype but never woke 2nd time till today. The hype may come again in the future but there are lots of good projects to consider. As we know that projects like Luna which is become scams, so the risk is even higher on this Defi platform. I had some tokens from the Defi project in a wallet which is now worthless. They will not be recovered.

Yeah, I agree.

If you're very unsure with what you're about to do just don't proceed and follow your feeling. It could miss an opportunity in the future when you go back to that project.

But it's better to remove that uncertainty that you've got as it could also lose you more money in the long run. Somehow, it's better to just miss any possible opportunity if the project itself right now is bothering you.

They will give you the perfect answer and you will think they got it all in control, can a scammer tell the world that he is trying to scam people? No, not until they are caught in the act, I am a big crypto investor but I will never trust ant project that raise fund and aren't true decentralized like Bitcoin.

even though it has the same concept but not necessarily the same fate. all investments in crypto have risks, especially if you invest in new projects. My advice is to find out more about the project to increase your confidence, if you find any suspicions in the project you don't need to invest in the project. the crypto world is very difficult to predict, sometimes projects that you doubt can become big projects and vice versa.

Decentralized finance (DeFi) projects have gained popularity in recent years, and many of them have their own stablecoins. Stablecoins are cryptocurrencies designed to maintain a stable value, usually pegged to fiat currencies such as the US dollar. They can be useful for investors looking to avoid the volatility of other cryptocurrencies.

DeFi projects with stablecoins, have inherent risks. DeFi projects are still a relatively new and rapidly growing area of the cryptocurrency market, and there are always risks of market volatility, liquidity issues and potential security vulnerabilities. I believe you may want to consider investing only within your means because Investing in the Cryptocurrency world is unpredictable, and it is important to be prepared for possible losses, as happened to Luna and FTX in the past.

And this is what is killing the interest on altcoins, there are some coins out there which are obvious scams and yet they make it very high in terms of their market cap, and then the people that invested in those coins think they have become great investors when in truth they were just lucky that a mediocre project made it that high, and since it is impossible to predict which coin will do well and which coin wont then many people are giving up on altcoins as they cannot make use of their knowledge to increase their chances of picking the right project.

it is difficult to predict which altcoins will succeed or fail, therefore I never recommend novice investors to invest in new projects because the risk is very high. if you invest in big altcoins like ETH and BNB you don't need to do complicated analysis like investing in new projects, all you need to do is buy and hold until the bull market arrives.

Investing in recognized coins like bitcoin or ethereum not only has the advantage that it is way easier, as it does not requires a genius to know that if bitcoin has grown so much since its creation then most likely it will not disappear overnight, however there are many other benefits, the chances of making profits with new altcoins are very low, while the chances of making money with bitcoin are really high as long as you can hold your coins for long enough, plus bitcoin is accepted everywhere where cryptocurrencies are an accepted payment option, and in many cases it is the only available option as many businesses even refuse to accept ethereum as a payment option.

actually no crypto project is 100% safe, where the rate of loss is certain but not certain and we know how much we will lose
like you invested in Luna before you didn't think it wouldn't be the case
now you have to be better and follow what you think is right and if you have seen some red flags then stop being interested anymore. What's even better is to put your attention on the established ones.

Of a truth, I have not really given my time to Defi projects even though I know how important they are in the web3 virtual i-gaming industry which has made the hype about Defi so high but yet there have been serious loopholes in the security systems because millions of dollars have been stolen by scammers from some of the Defi projects so you all need to be careful while using their network.
The hype about defi is high and at the moment most new projects have so. many challenges that will affect the future outcome negatively, so you need to do a good research before choosing any one of those projects to invest in.

True, to be honest, there are many people who decide to invest in something, and are still hesitant, but still insist. In the end, if something happens or doesn't meet expectations, this will cause a lot of regret. Therefore, it would be better if you really go deep into it first, gathering various information. And even if the results are not as good as expected, at least we have tried to do research on these assets.

but here responding to Defi, I think Defi might still be there, but it's not certain whether it will be as hype as before. Because at this time, projects that are on the rise are related to AI. Maybe you need to do a little research on AI projects.

various types of crypto projects must have different risks but still there, even though the Defi project, I also feel the same way as you when remembering how Luna and stable coins could be destroyed to zero, must be very traumatized and don't want to invest in the wrong coin Again

I reckon, if you as an investor already have some doubts about a project then you should hear yourself about the signs on that project.
And also, learn from the past because it's going to teach us a lot of things that we should never be confident about within the market. Whether those projects are DeFi or not, whether they've got stable coins or none but just be too curious about everything about them for you to analyze each project that becomes your prospect to invest.

Why do every projects that have their stable coins always end up a scam? This question is enough for anyone to think twice before investing in any project g that has their stable coin that is not backed by anything, especially if they are defi projects, they can easily lie about what is backing their stablecoin, the risk here is freakily high, most of them are scam projects.

is it safe or not, it depends on the project itself, we have to be careful with the project so we don't get scammed or join the coin bubble project, do research before joining the project, don't follow what people on the internet say, stay safe.
this is my personal advice

Even if the project does not begin as a scam it can easily turn into one, because even if they were to back their stable coin with fiat the ratio they promised their investors which will be maintained can always be altered over the life of the project, this means that people are taking a huge risk by investing in those projects, and what is worse is that those coins offer a sense of security to investors and they may not realize that instead they are taking the biggest risk on their short careers.

In my opinion, investing in DeFi projects that have their own stablecoin can be both safe and risky. It ultimately depends on the specific project and its track record.

So, some stablecoins have been successful, there have also been instances of issues with their peg to the dollar. I personally believe that having a stablecoin can be a positive aspect for a DeFi project, as it provides stability and predictability for investors.

why don't you just decide to invest in big coins like eth and bnb coins which are definitely safe why do you have to take risks by investing in others?

Maybe he wants to hear other's opinions about that project so he won't miss another gem in crypto. Investing is a risk that we should take because if we are afraid of money lose then we're not moving forward and also investing in high risk projects makes our analysis of new projects better.

it is certain that investment activities have risks that are not far away. at least before investing or buying altcoins, try to prioritize research. at least we know a little whether the project will last long or vice versa or just follow the hype trend. don't be too rash or easily attracted from a project that looks great it could be a scammer

The fact that the project has its own stablecoin does not mean that this is a 100% guarantee of success. That's not the point at all. A positive factor is that the team that presents the project has extensive experience in business development, in particular, here it is an investment.

I think you should be careful not to throw the baby out with the bath water, MakerDao has its own stablecoin and the project is one of the solid projects in the space. The problem with Luna is wrong design and greed, if Luna team had listened to people's concerns and tried to improve things, maybe the project would still be up and running

But you don't take into account how many such projects have actually lost their investors money. Which major stablecoins have collapsed recently and lost their tie-up completely? UST? Which others? There haven't been any more such high-profile failures. Yes, stablecoins can instill a false sense of stability and bankrupt their customer, but how many such cases have there been among the big stablecoins? Few. That's why stablecoins are still a less risky investment because they go bankrupt very rarely.

Even if a project is not a scam, it could also fail very very easily which must be the saddest thing. I mean let's be honest here, there are too many people trying to make their own projects happen and because of that most of them fail. Not everyone has the talent or skills to build their own project. First of all, if you are not a developer yourself, you shouldn't try it.

I cannot explain this better, if you didn't write the code, you are responsible for it, and that means you are going to fail. And there are thousands who did that unfortunately. Took money from people and got someone else coded, someone else designed and someone else marketed it, and they just took the profits.

Find another Defi finance project that has no stablecoin, it's that simple, not all stablecoins will survive because no one will want to use them for storing US dollars, there are too many stable coins that collapse and people are now wiser to avoid such projects, they are a waste of money and time.

There’s still risk even if without their own stablecoin so analyze properly and know where to put your money. If you saw a promising project but offers their own stablecoin, you have to think again because issues with stablecoin are rising and many are at risk. Anyway, it you can’t decide yet better to invest on a project that is already out in the market, at least this can be a lesser risk.

These defi that climed to issue stable token has no real money to back it. They were using algorithmic stable token which is very very risky at this moment. i see no reason for people to use it anymore. Most of stable token created by the defi will always be dead. People shall never touch it even though the dev claimed it to be stable token while the fact that if it's a scam stable token created by the developers who have no money to backed it with the real dollar value.

Stablecoin has been collapsing lately so I'll say you stay away from any project that has a stablecoin and that might even include Binance because the federal government has been going after them too.

Avoiding stablecoin related project isn't a bad plan at the moment, we can never know which one is next to go down, USSC drops from $1 trading price few weeks back and its future is uncertain.

BUSD has also recieved some heat and the fed won't be backing down any sooner, they'll fight Binance with all they got just to make sure the hope of cryptocurrency dies but they won't succeed.