Overview on DeFi.

[TheUltraElite]

DeFi is the next "rebranding" of scam ICOs and failed projects which have been unable to raise any money or even if they did they ran away leaving the investors hanging.

Every year we have some buzzwords and this year it is next to the pandemic I guess, some people just like to steal money from investors or those who are enthusiastic about investing. Just like ICO was renamed to STO and then ITO and so on Initial Blah blah more phrases similarly it is DeFi now. The scammers moved on from initial to completely using the word "decentralized" to poke more interest.

Put your money in bitcoin, this one is not different from the million other money wasters out there.

[elda34b]

DeFi is the next "rebranding" of scam ICOs and failed projects which have been unable to raise any money or even if they did they ran away leaving the investors hanging.

Really true. All dead projects are resurrecting offering some defi shit when their original goal never got achieved. Any sane person can tell that they're just trying to grab more cash and then exit scam by saying "competition is too fierce" later on.

[noormcs5]

DeFi is the next "rebranding" of scam ICOs and failed projects which have been unable to raise any money or even if they did they ran away leaving the investors hanging.

Really true. All dead projects are resurrecting offering some defi shit when their original goal never got achieved. Any sane person can tell that they're just trying to grab more cash and then exit scam by saying "competition is too fierce" later on.

So now every new and old shit project will use the name defi with their project and try to grab the attention. There may be some real defi projects but most of these good ones will be lost among hundreds of fake projects.

[slaman29]

DeFi is the next "rebranding" of scam ICOs and failed projects which have been unable to raise any money or even if they did they ran away leaving the investors hanging.

Really true. All dead projects are resurrecting offering some defi shit when their original goal never got achieved. Any sane person can tell that they're just trying to grab more cash and then exit scam by saying "competition is too fierce" later on.

I guess it's too late now to tell people to stay away from Defi, god knows I tried to warn my friends but nope, none of it's working. For not even 10% a year they're just dumping all their crypto in.

Now the only thing to do is to try and tell them to please at least choose legit decentralized ones using non custodial smart contract.

[mexite]

DeFi is the new buzz word in blockchain world and it's not just beginning now but the hype just attained crescendo. While it's true many wanna bees DeFi projects will creep in to profit from the hype but there are few projects which are truly creating innovative solutions and products which were hitherto unavailable to investors and traders in blockchain space except traditional finance sector.

[Shef198911]

hacks of this " excellent ", according to many opinions, DEFI for numerous millions of USD are already beginning, but unfortunately, when many realize that this is just another collection of money for scammers, it will be too late. Yes, as in ICO, there are worthy projects, but they are just as difficult to consider

[shoreno]

hacks of this " excellent ", according to many opinions, DEFI for numerous millions of USD are already beginning, but unfortunately, when many realize that this is just another collection of money for mosheynikov, it will be too late.  

who is mosheynikov ? inventor of defi ? i thought defi is just a term and not owned by someone else but its the defi project that can be created/owned  by someone else  . whether they are scammers or legit devs both can earn money thru it , especially now that defi is fresh and still on fire  .

Yes, as in ICO, there are worthy projects, but they are just as difficult to consider

but for defi ? i think its the same because its also hard to tell if the defi project can become succesful or not .

[Shef198911]

hacks of this " excellent ", according to many opinions, DEFI for numerous millions of USD are already beginning, but unfortunately, when many realize that this is just another collection of money for mosheynikov, it will be too late.  

who is mosheynikov ? inventor of defi ?

 
I'm sorry there was a mistake.

Yes, as in ICO, there are worthy projects, but they are just as difficult to consider

but for defi ? i think its the same because its also hard to tell if the defi project can become succesful or not .

Yes, I mean that it's the same thing, but with different names just for the sake of attracting investors

[seven.71]

DEFI is the hype in this year, which before the ICO in early 2018 and now in 2020 DEFI is basically in crypto it used to trigger price increases in trading even though the impact of DEFI itself is still vague.

[gentlemand]

https://www.coindesk.com/defi-meme-coin-yam-succumbs-to-fatal-rebase-bug

And this will happen lord knows how many more times before this particular trend burns out. ICOs attracted morons with a one page website and white paper but at least there wasn't much that could go wrong other than them raping you. This introduces an extra world of pain.

I have zero doubt a ton of money will be made. Anybody into this should make sure they secure that and then exit with a smile.

[anu1908]

^
there's a lot of case like that. iirc there has been at least 3 projects having fatal bug that makes them lose all the money on the pool or print new tokens out of thin air continuously. this is why defi is still not reliable to get passive income. zero day bug can make you rekt instantly.

[OcTradism]

https://www.coindesk.com/defi-meme-coin-yam-succumbs-to-fatal-rebase-bug

And this will happen lord knows how many more times before this particular trend burns out. ICOs attracted morons with a one page website and white paper but at least there wasn't much that could go wrong other than them raping you. This introduces an extra world of pain.

I have zero doubt a ton of money will be made. Anybody into this should make sure they secure that and then exit with a smile.

It is the first big scam accusation and was released after the crazy rise of SRM (almost reaches 20 times of increase from their IEO price). In OP, there are warnings at very early sentences and I wish people want to invest in any DeFi projects have to bear it in their minds.

pooya87 made an excellent warning and a summary on famous scam trends in crypto.

As a basic rule, a new trend brings both opportunities and risks to investors. Only investors who are knowledgeable and readily to learn as well as have ability to control their investing activities can win and earn profits from their capital. Most of them end with losses, indeed.

if you compare the times when tether growth peaked with the altcoin market pump and dump periods you can see that the major rises were:
1. 2017 mass altcoin pump when every single altcoin even the long dead ones worth less than 1 satoshi got pumped
2. 2017 ICO mania where thousands of ICO were being created every month or so
3. 2018-2019 mass altcoin dump which was the reverse of #1
4. 2018 mass ICO death which was reverse of #2
interestingly enough tether was added to ethereum network to exactly be used for pump and dumping ICO tokens during the ICO mania by the end of 2017 and grow a lot during the ICO death spiral next 2 years.

[Jocuserious]

Very well list.
I encourage myself to trade in the defi project. if I have good trading skills then i don't have to worry about investing because trading is enough to make a profits every day. Anyway thanks for your list and I've been enjoying the last few months in the defi project, besides we can see some of its better.

[leea-1334]

And this will happen lord knows how many more times before this particular trend burns out. ICOs attracted morons with a one page website and white paper but at least there wasn't much that could go wrong other than them raping you. This introduces an extra world of pain.

I have zero doubt a ton of money will be made. Anybody into this should make sure they secure that and then exit with a smile.

And it does not help at all when you have news media like Coindesk covering it. YAM was not even a big project and I never heard about it until all the news put it out. Like so what, right? YAM died and people laughed and just said lol,,, let us make Yam 2.0 and all the guys will go right back into it. So silly!

[abel1337]

Very well list.
I encourage myself to trade in the defi project. if I have good trading skills then i don't have to worry about investing because trading is enough to make a profits every day. Anyway thanks for your list and I've been enjoying the last few months in the defi project, besides we can see some of its better.

If you are confident with your trading skills, Don't bother to try it since DeFi projects today are so hot and the hype is great, Surfing on waves for some profit is not bad. I just don't think DeFi projects will last long but it's really profitable today. This might be the trend that replaced ICO hype on way back 2017 which people got fair amount of profit from each project compared to what ICO became after the trend. I believe this can also happen in the DeFi trend.

[hoop]

I agree that the DeFi idea is the next generation of the ICO. but there are unique ideas of projects in the DeFi sector. I believe that some of the DeFi projects will become the next era of blockchain tech.

[anu1908]

but there are unique ideas of projects in the DeFi sector. I believe that some of the DeFi projects will become the next era of blockchain tech.

how many projects are create unique ideas? i bet you can count them on fingers. most defi are just lending pools and stable coin creation, so out of 10 projects that currently exist, i won't be surprised if 8 of them fails. let's see how long people can be this hyped buying the same thing over and over again.

[TheUltraElite]

I agree that the DeFi idea is the next generation of the ICO.

And were ICOs very profitable for the investors? 
Yes they were profitable for the teams who owned the project and the advisors, under-the-table private investors and so on. They managed to dump their shitcoin on the investors and silently exit the scene without saying a word and thus running a very nasty scam. It was a bubble and many people good fooled into investing in a number of ICOs, some used to say that they invest 100$ in every upcoming ICO - essentially a gamble.

Same is happening with DeFi. There were projects like BitRefill which are legit but not these hundreds of lending and stablecoins.

but there are unique ideas of projects in the DeFi sector. I believe that some of the DeFi projects will become the next era of blockchain tech.

Yeah same as what the ICO buzz made people think. Keep dreaming before the reality is visible.

[Dinda mayasi]

Today, the crypto world did have an interesting history. from before 2017 until now changes in various conditions adapted to the experience in the activities of the crypto world itself.  Since ICO, IEO, Launchpad and paradefi network.
So I believe the innovation of DeFi system is very good I think to be used in this era. I am sure that all people everywhere in the future will know all about this Decentralization Finance system.

[OcTradism]

Are they really decentralized exchanges and are they really decentralized entities?

You only talk about advantages, benefits from DeFi but you don't talk about disadvantages or flaws of them. Nowadays, you can not find a real decentralized project because team members are known publicly and governments can shut down those DeFi projects if they want.

They have power, laws and they can do it.