DeFi - The Scam Engine?

[Stedsm]

I know that you may see this as one of the most strange topics to be here, but I'm honestly trying to bring this thing in front of everyone to make people aware of probably this year's gold-coated scamming style - DeFi.

I will not start giving any explanation about what is DeFi and blah blah, but would like to come straight to the point.

YFI - The ultimate beast (parent coin) of all DeFi coins that was not even worth a cent according to its devs but people started trading it at $3 initially and then the game started where investors threw it to over BTC4.4, a number none of us ever expected to happen but it did. (Came back to BTC1.5 recently and liquidated many longs as well as made extreme losses to thode who bought at its peak).

Next came its grand children with names like XYFI, UYFI, YYFI, ZYFI and whatnot.

Then came UNI, got farmed as well as gave extremely exceptional rewards to early users of their platform who traded some specific coins there. Everything was free so they just dumped it even at that high liquidity available. The value rose to over $8 but is under half of it now.

And many others like Sushi (an abandoned project which later on got took over by ftx devs), Bzrx (great team but too many hacks so community killed the liquidity of this coin), Rfuel, Many, FLM and so many DeFi coins have now reminded me of the 2018 crash, but don't you think it's too early for DeFi projects to be crashing this high?

I am not against DeFi coins, but TBH, these coins are just tickling our inner greed to which we respond so quickly not as a good trader, but a greedy one. My advice would be to keep yourself too safe from investing in these coins and even if the project is too good whatsoever, please don't invest anything that you can't afford to lose. Remember that whenever someone makes a 100x, he makes almost 100 people lose their capital (according to my observation).

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[cabron]

YFI is unbelievable. A few weeks ago its almost $40k and then suddenly $20k. Unless if I have bought it for $3, I'd be willing to play along.

Defi is somewhat like ICO that is going to be exploited by scammers and its just starting. There are real projects though and I think UIniswap is just one. Their tokens however are just distributed to lots of users for free that is why its dumped. Its not over yet, it could even go less than $1 if it really doesn't show its oversold.   

[TimeTeller]

YFI is unbelievable. A few weeks ago its almost $40k and then suddenly $20k. Unless if I have bought it for $3, I'd be willing to play along.

Defi is somewhat like ICO that is going to be exploited by scammers and its just starting. There are real projects though and I think UIniswap is just one. Their tokens however are just distributed to lots of users for free that is why its dumped. Its not over yet, it could even go less than $1 if it really doesn't show its oversold.  

In my opinion, YFI will go down hard. Up until now, they don't have operational services.
I don't think they will ever get out of their beta stage. They will die having that same status.
I really hope I'm wrong as there are so many people who will be rekt by this YFI hype.
There are so many imitations that come up from this YFI platform but we all know they are not here for long term.

[batang_bitcoin]

YFI is unbelievable. A few weeks ago its almost $40k and then suddenly $20k. Unless if I have bought it for $3, I'd be willing to play along.

It wouldn't go $3 unless everyone agrees to dump it and leave nothing with it. But I say that it's almost impossible to see it at $3 for you to buy it. The starting price was even high at $827 if you get to check it.
But the hype and pump for this coin is truly unbelievable, those who have bought to the starting price and held up to $40k. They have filled their pockets with fresh profits.

[Jackl87]

For me that's just the usual process of a new hype or trend. First some new projects emerge with a new and interesting technology or business model or whatever.
Investors are crazy about it and those projects create huge hype and the price rises and makes early investors rich.
This attracts scammers that also want to have a piece of the cake with little to no effort. They just copy an existing project and jump on the hype train.
Defi is not different to any other trends or hypes that happened before, f.e the ICO trend in 2017.

[Daltonik]

Indeed, the situation with DeFi projects is very similar to the events of the mass ICO in early 2017. Now the new hype can be called the name DeFi, the difference is that the DeFi wave is not so stretched in time, many projects appear very quickly on the market and only in the last month the main DeFi tokens COMP, BAND, KAVA, YFI, RUNE, UNI, BAL,ZRX have lost more than 50% of their value. Despite this, DeFi has a huge potential for its development and we have witnessed the birth and development of a new eco-crypto system.

[wanted sliter]

DEFI are all people rating too high and the room up. We are fed into exchange files into the trading system and added to outputs such as ETF, Future contracts. That made people more excited and bought more. The DEFI project only made a profit in a limited time and people quickly left. The same goes for every market, if the price increases quickly, the price decreases quickly.

During the DEFI tutorial that took place, countless projects were impersonating DEFI and generating tokens that were then sold publicly on UNISWAP. Most of them have discounted many times.

[qomariah95]

I'm not saying DeFi is a scam. But many people take advantage of this moment to create new projects and become scam. Since most of the DeFi projects are also, the team is always anonymous for reasons that don't make sense. So always be careful if you want to enter or invest in DeFi.

[crwth]

I think it’s another excuse for collecting funding again. Just like previously known ICO, then come to IEO, and right now, it's DeFi. It's basically a cycle. I wouldn't be surprised if something like CBDC’s would be in front of digital currencies.

We all say this, but in the back of our minds, wouldn't you have like to ride those waves? I'm honestly envious of those who had ridden the wave but sad for those who have bought at the top.

If the DeFi hype is gone, I think it would come crashing down, for sure. Remember that market = people, and when people lose interest, market value loses as well.

[BChydro]

I think it’s another excuse for collecting funding again. Just like previously known ICO, then come to IEO, and right now, it's DeFi. It's basically a cycle. I wouldn't be surprised if something like CBDC’s would be in front of digital currencies.

It is a cycle for sure, the timing of ICO was coinciding with the rally last time around and the DeFi introduction exactly during that stage when the price of bitcoin is expected to rally pulling the entire market along with it. It is a cycle and make sure everyone deal with these carefully. I burned my hands with ICO and i will not be doing the same with DeFi as i will be careful and will cash out the coins without holding too much.

[Gumbo88]

we can not say Defi is scam, because still have some good Defi project, but you know nothing can replace BTC.

[masterrex]

I think most of the cryptocurrencies also work like this. Because it is the same as what happened during the 2017-2018 Bullrun, So there's nothing new about it, The Defi craze is just a part of the game and for me, it is normal that if there's a winner, there was also a loser so don't mind it. Instead, it is better to ride the trend and make some money out of it.   

[peterlustig]

This is my opinion: Basically, whenever you are investing in any YFI fork you are just gambling with your ETH. You might get a good return, but there's also a huge probability that you will lose every cent of the investment money, and since developer are mostly anonymous, you can't do anything about it

[cabron]

I think most of the cryptocurrencies also work like this. Because it is the same as what happened during the 2017-2018 Bullrun, So there's nothing new about it, The Defi craze is just a part of the game and for me, it is normal that if there's a winner, there was also a loser so don't mind it. Instead, it is better to ride the trend and make some money out of it.   

So are scams. It happens every day in crypto that whenever there is scam accusation sometimes we don't mind anymore because it's normal. Defi is a good innovation in crypto, though we didn't really achieve the very decentralization we aimed, there is still a certain degree of decentralization. And this provides a window of opportunity as well for the bad guys as its hyped that investors going to hurry to send their ETH.

[ryzaadit]

If the DeFi hype is gone, I think it would come crashing down, for sure. Remember that market = people, and when people lose interest, market value loses as well.

If we see Lending, ICO, IEO, and other crowdfunding hype.

We all know all ended same, DeFi just could be same as Lending in my opinion so they will end the same their interest APH was really insane. Some shit DeFi offering stake with a thousand % more insane than Lending in 2017.

Now, in the market almost top DeFi losing his value and most of investor has been lose too. In the short time, we see this gonna be rekts~XD

[articlecity]

Although it is disappointing to see how this trend is subsiding but i am glad that this experience will help crypto market mature a bit in the long run and people will not be chasing each and every hype.

[Daltonik]

The user lost $140,000 in tokens of the decentralized exchange Uniswap after their placement in the pool of the UniCats project more details can be found here https://twitter.com/amanusk_/status/1313070958794727430 

[nicecrypto]

Yeah @op i agree and I believe it is too early for defi project to start crashing they are to match up to ico record, ico took some time before it start crashing, and this was only for some of the ico, I think people are using the experience of ico to participate in defi, i.e by not holding for long before selling, most defi investors just dump immediately and move on to the next defi project so it is very likely to see the market crumbling down.

[jacafbiz]

I don't know why some people whine about losing money investing in some projects, when the market was going up everyone was excited, instead of taking profit and locking in some funds they think the party will continue, Bitcoin was around $1 at a time and now valued over $10k, if people feel YFI is worth more than BTC let the market decide and don't blame the developer for your loss

[Zeehaxan]

I will not call defi scam but just like every new trend the defi projects have just seen their first hype phase and seems like it is over now which will result in massive corrections in these projects.
Even if see the overall market it is looking like slow and bearish right now may be due to the sluggishness brought by defi bubble burst. Anyhow im still positive about the longterm defi prospects but only top quality projects will be able to sustain and survive for longterm.

[el kaka22]

You do not have to be against a whole idea in order to give a feedback or criticize them, you can still be neutral about it and still give your opinion, that has been lacking in almost all discussions of the world, let's say there are two groups who argues and one says X is better the other says Y is better (this could be changed to one group saying X is good the other saying X is bad) and if you say X is not better, that suddenly means you are defending Y, but that doesn't have to be the case most of the time, especially in politics that happens a lot.

DeFi is something I do not like because of how it is used and how it is seen by people, not something I dislike because of the idea itself, it could be used and made into something much better and everyone would love it, but it is not there yet.

[cheezcarls]

I would say no. It's just that most of us are not doing the "DYOR" mode. They just simply believe in the hype and jump in without doing their homework. There are projects that starts with letter "Y", especially airdrops and bounty programs. I would be careful if I were you. Scammy projects would take advantage of the DeFi craze by naming their project starting with "Y" and domain extension would be "finance".

Only a handful of these DeFi projects are legit. It's like ICOs in 2017, and now DeFi. I bet in the following year or two, the craze would start to die down.

[MainIbem]

Your advice is worth the while. Especially the point you said when a project is too good. Greed and wanting to profit so quickly are the baits in the hands of scammers.

[sensimilia]

You can add defi to your project name and get incredible gains. While everything is working like this, there will be a lot of defi scams

[maxreish]

Those who ride when defi coins were at lower costs and then made a good profits because of the hype price were the ones who really benefitted from defi projects. The massive drops showed the similar actions took place from the other crypto projects before like ICO, IEO, etc. This will gonna fade, too. I would not take a risk as of the moment where the hype is slowly calming down now.
 
 Also, do not fall for those fake UNISWAP and other defi coins fake giveaways. Theyre using those popular defi coins because many got huge benefits from it and scammers are trying to use some of those popular defi projects to mislead the victims.

[Lantind]

we can not say Defi is scam, because still have some good Defi project, but you know nothing can replace BTC.

Yes, and maybe for now some DeFi projects are still good and can give you an advantage, but will the project last as long in the future as other projects that have been successful and are popular at this time? if it can't, then it deserves to be called a Scam.

[themohit]

Defi is definitely a way to  scam people, a really efficient one I have to admit.
However, its a good platform to start a new project as well, so its not all about YFI and fraud.

[Kunnu]

The current state of defi projects don't look beneficial anymore, looks like the defi hype is going to be over anytime and I don't think there is any possibility for new people who are planing to invest in defi projects probably it may end up with loss so they need to be very careful before investing in defi projects.

[SquirrelJulietGarden]

I tried to catch attention of people one month ago with Define the (scam) DeFi but people don't care.

The DeFi scam engine is exhausted but the sad thing is scammers already fill up their pockets while victims (investors) lost a lot of money. One month ago, they talked about amazing rich stories (balance is doubled after night sleep, blah blah blah). Now, one month later, they are silent and try to understand why their balance was halved or worse.

[michellee]

The basic things before someone start investing is to learn, learn, and learn. We already see the DeFi projects booming, and many people making a big profit from the DeFi projects. But many people also lose from the DeFi project because they don't search for more, and makes them buy the token at a high price. It will happen to you if you don't search for the project you should invest, which will end by losing your money. If you don't want to lose your money, better start learning about the project, and don't just follow what other people say. Your money will be your responsibility, so you need to have much information before investing.

[Princejebs]

And many others like Sushi (an abandoned project which later on got took over by ftx devs), Bzrx (great team but too many hacks so community killed the liquidity of this coin), Rfuel, Many, FLM and so many DeFi coins have now reminded me of the 2018 crash, but don't you think it's too early for DeFi projects to be crashing this high?

I am not against DeFi coins, but TBH, these coins are just tickling our inner greed to which we respond so quickly not as a good trader, but a greedy one. My advice would be to keep yourself too safe from investing in these coins and even if the project is too good whatsoever, please don't invest anything that you can't afford to lose. Remember that whenever someone makes a 100x, he makes almost 100 people lose their capital (according to my observation).

They thought we are in 2018 when you can risk a penny to buy a lambo, but reverse was the case. Albeit, the the only thing that's stopping these DeFi from collapse is BTC, if we plunge to day, you will be amaze how DeFi will end.
Yfi1, yf2....... and the the series continues. I am bitter how this projects are listed on CoinGecko and market cap with almost nothing than the regular farming activities of different APY.
You can't help them, an investor loss is another one gains and the trend continues until it they eventually dye down. However, there are still DeFi projects that are base on oracle that i can fully invest in for long term, their performance has prove their worth within short span.

• Link
• Band
• DIA

[Teraboy]

Everyone must understand the risks that are taken when entering the hype defi, indeed many have earned large incomes but not a few have suffered losses as well.
profit and loss has become a habit that we go through every day.

The total scam defi is much more greater compared with the legit defi that already operated in the market.

There are two latests case about the exitscam defi and so many defi projects have suffered very very big dump and some defi coins are almost traded zero value.

It's not about there is a party who will be suffering the profit and the loses. It's about how we can stop the defi to be used as a scam engine. Just look at how scammers were spamming more and more defi coins.

[shoreno]

Everyone must understand the risks that are taken when entering the hype defi, indeed many have earned large incomes but not a few have suffered losses as well.
profit and loss has become a habit that we go through every day.

idk what they are thinking when they heard the word hype , it could be that they think its safe ? because hype means popularity , it became popular because not just few people are investing . if they think of that way , these people dont know what risks are .

 i dont believe that many people have earned more than the people that have loss but actually there are more lossers on here because those fraudsters are not kind to giveaway free money . this aint a charity on here

[Valzador]

idk what they are thinking when they heard the word hype , it could be that they think its safe ? because hype means popularity , it became popular because not just few people are investing . if they think of that way , these people dont know what risks are .

 i dont believe that many people have earned more than the people that have loss but actually there are more lossers on here because those fraudsters are not kind to giveaway free money . this aint a charity on here

Hype doesn't make sure you won't lose, but following the hype, your chances of getting money are more significant than the absence of hype.
Note that you have to keep up with the new hype, not the old one.

[Daltonik]

Very well explained today in his post @slackovic "Be careful with "approve" button when dealing with DeFi " indeed https://bitcointalk.org/index.php?topic=5280541.msg55331527#msg55331527 , many are not familiar with the default approval mechanism in metamask. This is partly why the guy lost his $140,000 and because of the presence of a backdoor in the contract itself.

[bitcoinaldis]

why people invest in newly crypto and leave the leader Bitcoin.
maybe because Bitcoin is too expensive?

if so, there are Ethereum, Litecoin and other good alts that becomes legit for years. it could have lower profits, but it still profits and anyone can join it with little budget (LTC now is for just $45)

[irixo10]

I know that you may see this as one of the most strange topics to be here, but I'm honestly trying to bring this thing in front of everyone to make people aware of probably this year's gold-coated scamming style - DeFi.

I will not start giving any explanation about what is DeFi and blah blah, but would like to come straight to the point.

YFI - The ultimate beast (parent coin) of all DeFi coins that was not even worth a cent according to its devs but people started trading it at $3 initially and then the game started where investors threw it to over BTC4.4, a number none of us ever expected to happen but it did. (Came back to BTC1.5 recently and liquidated many longs as well as made extreme losses to thode who bought at its peak).

Next came its grand children with names like XYFI, UYFI, YYFI, ZYFI and whatnot.

Then came UNI, got farmed as well as gave extremely exceptional rewards to early users of their platform who traded some specific coins there. Everything was free so they just dumped it even at that high liquidity available. The value rose to over $8 but is under half of it now.

And many others like Sushi (an abandoned project which later on got took over by ftx devs), Bzrx (great team but too many hacks so community killed the liquidity of this coin), Rfuel, Many, FLM and so many DeFi coins have now reminded me of the 2018 crash, but don't you think it's too early for DeFi projects to be crashing this high?

I am not against DeFi coins, but TBH, these coins are just tickling our inner greed to which we respond so quickly not as a good trader, but a greedy one. My advice would be to keep yourself too safe from investing in these coins and even if the project is too good whatsoever, please don't invest anything that you can't afford to lose. Remember that whenever someone makes a 100x, he makes almost 100 people lose their capital (according to my observation).

Gradually the hype of DeFi is coming to an end and it kind of look too soon, and where many people made good profits a lot also met losses. What baffles me was the way DeFi projects were coming up and most people do not bother at all to study the project and know what it entails, the only thing that matters to them is profit, and now how many actually made the profit?
Taking a look at most DeFi projects now, they are just a shadow of themselves, dumping a lot and I keeps wondering what those that bought at the top will do.
I totally agree with you, there are good DeFi projects but the too much hype just brought another trend altogether and people fell terribly for it. Just like it has always been said, investing what you can afford is the best way to go about anything investing but that should be after the due diligence has been done on that project to ascertain it's worth, the teams vision and so on.
I sincerely hope people will learn from this DeFi case and be better prepared for whatever new trend that will come up next.

[DabsPoorVersion]

Everyone must understand the risks that are taken when entering the hype defi, indeed many have earned large incomes but not a few have suffered losses as well.
profit and loss has become a habit that we go through every day.

idk what they are thinking when they heard the word hype , it could be that they think its safe ? because hype means popularity , it became popular because not just few people are investing . if they think of that way , these people dont know what risks are .

 i dont believe that many people have earned more than the people that have loss but actually there are more lossers on here because those fraudsters are not kind to giveaway free money . this aint a charity on here

What they are thinking when they heard the word hype is making money,

It is not they are thinking of it as a safe investment, but they risk their money for the sake of making money. Like those early investors, they make more money in DeFi, they risk their money and as we can see, investors of those legit DeFi project make a lot of money.

[forexandcryptoauditor]

From my point of view, DeFi is for traders and not for investors . Such volatility and unexpected results for the long term. So long term investors should not fall into this defi scams. Let's see where it will take and for how long it will work or set an example.

[tanjiran]

From my point of view, DeFi is for traders and not for investors . Such volatility and unexpected results for the long term. So long term investors should not fall into this defi scams. Let's see where it will take and for how long it will work or set an example.

There are also short term and long term investments. If the investor studies the project well, understands the roadmap, follows the progress of the project, then the investor will be able to determine the right timing to decide when to sell or hold.
what we need to understand, whether as traders or investors, this kind of trend is like fried food, when it is still warm it will taste good, but when we are late the food will be cold and not delicious anymore. So, still have to be careful, do an in-depth analysis before joining and don't FOMO.

[StephenJH]

From my point of view, DeFi is for traders and not for investors . Such volatility and unexpected results for the long term. So long term investors should not fall into this defi scams. Let's see where it will take and for how long it will work or set an example.

There are also short term and long term investments. If the investor studies the project well, understands the roadmap, follows the progress of the project, then the investor will be able to determine the right timing to decide when to sell or hold.
what we need to understand, whether as traders or investors, this kind of trend is like fried food, when it is still warm it will taste good, but when we are late the food will be cold and not delicious anymore. So, still have to be careful, do an in-depth analysis before joining and don't FOMO.

Liked your comparison, but unlike fried food, the investment becomes tastier after a long time if the investor has made the right decision. Of course, studying the project doesn't mean the investment will be successful but the chances will increase gradually in the long term. For getting the best result, having the minimum requirements for profitable investment will boost the initial investment capital. Planned money management and the right trading mindset increase the chances of survival if the market going against your trades, from my experience.

[dimonstration]

why people invest in newly crypto and leave the leader Bitcoin.
maybe because Bitcoin is too expensive?

if so, there are Ethereum, Litecoin and other good alts that becomes legit for years. it could have lower profits, but it still profits and anyone can join it with little budget (LTC now is for just $45)

It's good to buy crypto that are tested in the long run like what you mention above, but will it be that profitable? Some risk in DeFi projects for short term as they know they can earn from it fast but not easily since they will need to monitor it all day as it may dump in price in just a span of minute. Almost all DeFi project is profitable when launch and when hit some peak point but it's too risky as it will not be able to reach any heights again and soon to be tag as scam. It is only taking opportunity as long where able to monitor and trade it while it's it in it's momentum.

[emrecemsan]

It doesn’t make any sense to me that there are too many projects. Also, they seem very suspicious because of promising much higher than average earnings. That’s why, except for some, I think most defi projects are scams.

[qazgroup]

Scams do surround every successful business model, every trend and every growing market so defi is no exception but we should refrain from calling all defi projects as scam it can damage crypto and defi reputation rather we should point out fake or scam projects, discourage them and let the people know about them so they should not fall a prey to them.

[makishart]

It doesn’t make any sense to me that there are too many projects. Also, they seem very suspicious because of promising much higher than average earnings. That’s why, except for some, I think most defi projects are scams.

It's more than suspicious but i can call that the new defi in the market were so crap. They keep repeating the existing defi to scma the investors.
A big APY means scam project as it's the only trick to attract people to invest or put their ethereum and locked it. So many times the scam defi projects that were doing rugg pull to the investor's money in the liquidity pool.
We must always be careful with any defi project.

[Stedsm]

Great show TBH, I guess it's all over now for DeFi and feeling pitiful for all those who longed during these days. Some tokens dipped like someone's dipping a French fries into the sauce and the marketcap's sharp decline is unforgettable. There are still some tokens which I believe, can recover greatly like bzrx. Still, be very much conscious when diversifying your portfolio and throwing a piece of your cake in DeFi.

[tvplus006]

It doesn’t make any sense to me that there are too many projects. Also, they seem very suspicious because of promising much higher than average earnings. That’s why, except for some, I think most defi projects are scams.

DeFi is not to blame for being in the center of the hype. I still can't understand how the price of YFI could grow to $ 43,000, if the developer himself said about this coin that it has no value. Why did investors pay attention to this token, seeing the prospect of earning tens of thousands of percent in it?

[Stedsm]

DeFi is not to blame for being in the center of the hype. I still can't understand how the price of YFI could grow to $ 43,000, if the developer himself said about this coin that it has no value. Why did investors pay attention to this token, seeing the prospect of earning tens of thousands of percent in it?

The reason I see in this token (and many other tokens of DeFi category) getting successful in bringing too much money in their projects is the greed of new investors and the intention of initial investors. Those who understood DeFi from the start, knew everything and understood about this newly scamming technology how showing an extreme APY like 3000-10k% could lure a lot of investors and then dupe them like what happened when the crash commenced. This crash was also blamed upon a DeFi project FTT owner who borrowed YFI and UNI and later dumped them against the markets to make himself a lot of money through shorting these pairs against USDT.

[LittleHamster]

I am not against DeFi coins, but TBH, these coins are just tickling our inner greed to which we respond so quickly not as a good trader, but a greedy one. My advice would be to keep yourself too safe from investing in these coins and even if the project is too good whatsoever, please don't invest anything that you can't afford to lose. Remember that whenever someone makes a 100x, he makes almost 100 people lose their capital (according to my observation).

I think most people understand what DeFi really is. That this is another artificially grown money bubble that will burst and bury the money of unsuccessful investors.
People hope that they will be able to earn money and leave DeFi on time.
If you look at the previous ICO bubble, only a small number of people managed to do this.

I would like to wish everyone to have wisdom and not to chase huge profits. As a rule, where huge profits are promised, huge losses are obtained.

[Rengga Jati]

When a coin emerges very successfully in a project, there will be many other projects that follow the hype, making such quite similar projects with quite a similar name, only different in letters. Well, it seems like the habit of adoption only s still exist there. That is why it will lay on our decision here to follow or not Personally, I will not be interested in that kind of children and families of the new successful coins because they may only exist because of hype and will end soon after the hype ends.

[Samayuki]

I know that you may see this as one of the most strange topics to be here, but I'm honestly trying to bring this thing in front of everyone to make people aware of probably this year's gold-coated scamming style - DeFi.

I will not start giving any explanation about what is DeFi and blah blah, but would like to come straight to the point.

YFI - The ultimate beast (parent coin) of all DeFi coins that was not even worth a cent according to its devs but people started trading it at $3 initially and then the game started where investors threw it to over BTC4.4, a number none of us ever expected to happen but it did. (Came back to BTC1.5 recently and liquidated many longs as well as made extreme losses to thode who bought at its peak).

Next came its grand children with names like XYFI, UYFI, YYFI, ZYFI and whatnot.

Then came UNI, got farmed as well as gave extremely exceptional rewards to early users of their platform who traded some specific coins there. Everything was free so they just dumped it even at that high liquidity available. The value rose to over $8 but is under half of it now.

And many others like Sushi (an abandoned project which later on got took over by ftx devs), Bzrx (great team but too many hacks so community killed the liquidity of this coin), Rfuel, Many, FLM and so many DeFi coins have now reminded me of the 2018 crash, but don't you think it's too early for DeFi projects to be crashing this high?

I am not against DeFi coins, but TBH, these coins are just tickling our inner greed to which we respond so quickly not as a good trader, but a greedy one. My advice would be to keep yourself too safe from investing in these coins and even if the project is too good whatsoever, please don't invest anything that you can't afford to lose. Remember that whenever someone makes a 100x, he makes almost 100 people lose their capital (according to my observation).

Your points are actually about YFI so why are you saying DeFi is a scam engine? There are few DeFi projects that are in existence even before DeFi come to light and start getting popular, those are the type of reliable DeFi projects one should invest on, I don't trust any projects that came out right after DeFi bullrun began. All YFI and projects that ends with **FI are scam and yet they are well patronized

[Swopon]

In my cryptocurrency life experience, I didn't notice such thing before like YFI. Though my cryptocurrency life isn't so long. Yet this is unbelievable. Even it was more few days ago. Defi is on its pick value now. Actually I am going to explain anything, but Defi is a trend now as like ICO before.

[tvplus006]

When a coin emerges very successfully in a project, there will be many other projects that follow the hype, making such quite similar projects with quite a similar name, only different in letters. Well, it seems like the habit of adoption only s still exist there. That is why it will lay on our decision here to follow or not Personally, I will not be interested in that kind of children and families of the new successful coins because they may only exist because of hype and will end soon after the hype ends.

It is clear that successful projects are always copied by scammers. But what is the success of YFI, around which so much hype and made several hard forks? However, none of the hard forks were able to repeat such a pump that we saw on YFI.

[tippytoes]

When a coin emerges very successfully in a project, there will be many other projects that follow the hype, making such quite similar projects with quite a similar name, only different in letters. Well, it seems like the habit of adoption only s still exist there. That is why it will lay on our decision here to follow or not Personally, I will not be interested in that kind of children and families of the new successful coins because they may only exist because of hype and will end soon after the hype ends.

It is clear that successful projects are always copied by scammers. But what is the success of YFI, around which so much hype and made several hard forks? However, none of the hard forks were able to repeat such a pump that we saw on YFI.

Very good question! I am too is wondering why YFI is getting that price in the market? Well, they don't have working platform yet so I am assuming, the team was only pumping this token. But the problem, people are getting on board even if they know there's nothing in it yet. So the likelihood that people will shout for scam is really forthcoming. We will be seeing another failure in this defi hype. Stay alert!

[arabianhorse]

No, Defi is no scam. But many scam projects are coming in the market in the name of DeFi. Which is harmful for crypto. So we must be careful.

[casperBGD]

When a coin emerges very successfully in a project, there will be many other projects that follow the hype, making such quite similar projects with quite a similar name, only different in letters. Well, it seems like the habit of adoption only s still exist there. That is why it will lay on our decision here to follow or not Personally, I will not be interested in that kind of children and families of the new successful coins because they may only exist because of hype and will end soon after the hype ends.

It is clear that successful projects are always copied by scammers. But what is the success of YFI, around which so much hype and made several hard forks? However, none of the hard forks were able to repeat such a pump that we saw on YFI.

Very good question! I am too is wondering why YFI is getting that price in the market? Well, they don't have working platform yet so I am assuming, the team was only pumping this token. But the problem, people are getting on board even if they know there's nothing in it yet. So the likelihood that people will shout for scam is really forthcoming. We will be seeing another failure in this defi hype. Stay alert!

would not agree for YFI, i do not think that the value should go up that high, but developer Andre Cronje did not reserved any token for himself, so i would not think that he actually was to deploy pump-and-dump sheme, that was what happened with a lot of copies afterwards, and YFI was something new, that could provide you with best possible outcome for your liquidity provision, it is a really good project, but still in testing environment, and without proof-of-work, so very risky to use, and that was stated with a project, but greed was on too high levels, and participants and buyers ignored that fact, especially with a launch of Eminance finance, where a lot of people lost money, due to software bug

[sharos]

Many people are interested in DeFi now. I am also interested in DeFi project. The most common cause is YFI. Scammer also not miss this chance, Easily the can publish a DeFi project to start scamming. But, We also can track some scam projects. Just we need to give time in research. If we check their whitepaper, Concept, and others thing we can mark scam DeFi project.

[istiak2277]

YFI - The ultimate beast (parent coin) of all DeFi coins that was not even worth a cent according to its devs but people started trading it at $3 initially and then the game started where investors threw it to over BTC4.4, a number none of us ever expected to happen but it did. (Came back to BTC1.5 recently and liquidated many longs as well as made extreme losses to thode who bought at its peak).

Next came its grand children with names like XYFI, UYFI, YYFI, ZYFI and whatnot.

To be honest YFI market price looks manipulated to me. I think some people have done this to create a hype about Y project and then launch other defi projects like YFII, XYFI, YFIII, ZYFI. All these look bubbles to me. Every time a new Y series project came to the market pump so much that people buy them in panic. But if you look at the market all those projects dump 50% to 90%.

Then came UNI, got farmed as well as gave extremely exceptional rewards to early users of their platform who traded some specific coins there. Everything was free so they just dumped it even at that high liquidity available. The value rose to over $8 but is under half of it now.

For UNI what happens, i think is uniswap buy their token to keep the value of the token. Thats why we have seen UNI price still increased when most of the time every project price dump after they distribute airdrop rewards. Clear market manipulation.

[naska21]

]There are also short term and long term investments. If the investor studies the project well, understands the roadmap, follows the progress of the project, then the investor will be able to determine the right timing to decide when to sell or hold.

Looks like DeFi  has entered a new era  - the era of  investors'  lawsuits against unfair players.  The latest - Yearn.Finance founder Andre Cronje has  to be sued by group of investors  who launched crowdfunding  campaign for that. Read more details on that.  It's probably one of the first robins in  series. So far Yearn Finance was considered to be a fair DefI project by me but I was wrong with this.

[elisabetheva]

It will take more time to determine that what happened with defi is indeed an act that could harm many people because the reports that are seen are still confusing because some feel it is a change but some feel it is fraud. with the passage of time everything will look real even though the direction is visible.

[Novatech8]

DeFi isn't a scam engine, it's not a new use case either, I've knew DeFi since 2019 and at the time it wasn't popular, unlike now that all eye are on DeFi due to DeFi potential, it's left for us to pick DeFi projects that are hundred percent decentralized, some DeFi projects are centralized in disguise honestly, do your own research and stop giving away your hard earned money to scammers

[freedomgo]

The thing is, when a certain platform gets popular, scammers are starting to ride with it, that's what happened with DeFi, scammers are using it's popularity to scam people, but that is not new here since we are in crypto, everything we do is high risk, even non investing activities.

DeFi is compose of different projects, just like altcoins, there are bad projects and there are also good projects.

[slackovic]

The thing is, when a certain platform gets popular, scammers are starting to ride with it, that's what happened with DeFi, scammers are using it's popularity to scam people, but that is not new here since we are in crypto, everything we do is high risk, even non investing activities.

DeFi is compose of different projects, just like altcoins, there are bad projects and there are also good projects.

I agree completely. Don't let bunch of scammers drive you away from DeFi. There are few DeFi projects that are good and have great perspective in the future. Take Synthetix (SNX) for example. That project is "alive" for two years! And which one of you here knew about DeFi back in 2018 when Synthetix started? Btw, I'm not suggesting anyone invest into SNX. I'm just saying that there are DeFi projects far longer then the expression decentralized finance.

[slashz9]

I also agree Vitalik also says defi is a bubble which can burst at any time.
no one can guarantee but fomo will continue.as long as people are filled with greed they will still act without thinking.
there is always a risk.

[nrvasquez]

this is all about hype? some of the Defi projects really have a good ideas and backed by qualified teams, but again a lot of projects just want to jump about this defi hype. i just hope, that we will have really really honest defi project.

[proTECH77]

Many new project are in the market which people cannot differentiate between real one and fake one because all of the project look the same in the market. As an  altcoin trader it is good to do more personal research concerning  new product you have been hearing about in profit making to know the real one to invest your coins not to invest in wrong project which will scam your money.
I think fake project are very easy to know in the market place because any where you see fake project, you see scammer. If you can observe very well as a trader you can always identify them in the areas of market.

[Chuky92]

DeFi prospects look good and attractive, it really have the potential to improve the crypto space and the financial industry but things changed too quickly as people started seeing it just for profit/gains and not for what it stands to offer in the near future, hence reason why scammers joined up and took their own share. I believe that, if people can start seeing most projects for what they tend to offer and not for profit etc, many projects wouldn't have been created and many won't see the light of the day; a look at the prices of most DeFi projects is telling the truth now.
Nevertheless I believe in the potential of Defi and also knows that soon, the fake projects will go down the drain and the good ones will start getting good attention.

[slackovic]

I also agree Vitalik also says defi is a bubble which can burst at any time.
no one can guarantee but fomo will continue.as long as people are filled with greed they will still act without thinking.
there is always a risk.

Whether it's a bubble or just a hype, it won't go away. DeFi has definitely many advantages against traditional banking, but the biggest problem are the scammers. There is maybe 20-30% of good and viable DeFi products (projects) while others are just copies that are waiting for the right time to do the exit scam (or pull the rug, whichever you like).

[Davian144]

Many people are interested in DeFi now. I am also interested in DeFi project. The most common cause is YFI. Scammer also not miss this chance, Easily the can publish a DeFi project to start scamming. But, We also can track some scam projects. Just we need to give time in research. If we check their whitepaper, Concept, and others thing we can mark scam DeFi project.

Everyone can indeed do research on whitepapers, concepts, and other things in a project, but that also cannot immediately give fully whether the project is a scam or not, because there are many projects that can make whitepapers, concepts, and other different things. with other projects but it can still be a scam when their campaign period starts to end.

[freedomgo]

The thing is, when a certain platform gets popular, scammers are starting to ride with it, that's what happened with DeFi, scammers are using it's popularity to scam people, but that is not new here since we are in crypto, everything we do is high risk, even non investing activities.

DeFi is compose of different projects, just like altcoins, there are bad projects and there are also good projects.

I agree completely. Don't let bunch of scammers drive you away from DeFi. There are few DeFi projects that are good and have great perspective in the future. Take Synthetix (SNX) for example. That project is "alive" for two years! And which one of you here knew about DeFi back in 2018 when Synthetix started? Btw, I'm not suggesting anyone invest into SNX. I'm just saying that there are DeFi projects far longer then the expression decentralized finance.

Well, I don't wanna specify a project name as I don't wanna be called bias or promoting it but I know there are plenty of good DeFi projects now, unfortunately we can't prevent scammers from running their own, the only thing we can do to minimize the risk is educating ourselves.

[slackovic]

Well, I don't wanna specify a project name as I don't wanna be called bias or promoting it but I know there are plenty of good DeFi projects now, unfortunately we can't prevent scammers from running their own, the only thing we can do to minimize the risk is educating ourselves.

True. But people need to educate themselves too. If there are still a lot of people who send 1 ETH to someone just because he promised to send 10 ETH back, how can we expect them to identify some well crafted scams?

[ampu]

DEFI is currently a new trend in the crypto world and people seek to profit from this market. Projects with anonymous teams impersonating DEFI and defrauding users through fundraising activities.
Other projects that are not DEFI but also try to add DEFI to their names or projects that start with Y or end with 'finance', they do it so that people pay more attention and buy these products.
The majority of scam projects have bad source code and developers can take advantage of that to steal investors' money through the liquidity pool.

[nomenclatur]

yes it is true the price of coin DEFI for the first-listed Great Prices went up so quickly and for the near future the prices are quite stable and still very well when to hold coin DEFI is too risky been proven that the coin DEFI much a price drop very quickly rekt just a few in coin can survive in the highest esteem.

[LittleHamster]

When a coin emerges very successfully in a project, there will be many other projects that follow the hype, making such quite similar projects with quite a similar name, only different in letters. Well, it seems like the habit of adoption only s still exist there. That is why it will lay on our decision here to follow or not Personally, I will not be interested in that kind of children and families of the new successful coins because they may only exist because of hype and will end soon after the hype ends.

It is clear that successful projects are always copied by scammers. But what is the success of YFI, around which so much hype and made several hard forks? However, none of the hard forks were able to repeat such a pump that we saw on YFI.

The YFI token is used for staking. It is stored on a special platform and tokens of various projects are credited for storage, and stablecoins can also be credited. It all depends on which stacking conditions you choose.

[TastyChillySauce00]

not necessarily, depending on the project that uses the technology. but mostly I see defi based projects mostly scam.

More than 85% from the total defi projects in the market were scam defi. When you were also trying to visit their github and they were only forking the code from the existing project but add some function to the code and mostly of these functions to be used to scam the funds that have already sent to the smartcontract.

In fact defi has already used by the scammers as a way to steal money from investors.

[bitcon]

we can not say Defi is scam, because still have some good Defi project, but you know nothing can replace BTC.

Naturally, it is not a scam. At the same time, as the on-chain metrics show, cryptocurrency whales are not yet very interested in DeFi. On the other hand, China is secretly interested in developing decentralized finance market. It sponsors the DeFi market through non-state companies.

[naska21]

In fact defi has already used by the scammers as a way to steal money from investors.

Besides 99.9% of newly born DeFi tokens are useless because they don't add any value to existing ones. Their only  purpose is to  pump liquidity across the  pools and collapse at a well-chosen moment to make their developers rich. The "cautious strategist" principle is the best one when playing on the field of Defi - better to win less than lose more while some projects are better not challenge at all.

[Bitstar_coin]

In fact defi has already used by the scammers as a way to steal money from investors.

Besides 99.9% of newly born DeFi tokens are useless because they don't add any value to existing ones. Their only  purpose is to  pump liquidity across the  pools and collapse at a well-chosen moment to make their developers rich. The "cautious strategist" principle is the best one when playing on the field of Defi - better to win less than lose more while some projects are better not challenge at all.

In fact, useless is an understatement, they are beyond useless and the painful aspect is that many people falling for them all in the name of defi and making big profit, have you seen some of the defi project! they exude scam, it is written all over them and some people don't seem to care until they get rekt by this obvious scam only then they will shout and scream, too bad scammers have taken over the defi platform just like what happen during the ico period, despite all this fake defi's there few genuine and legit ones.

[mdzahed134]

First of all thank u for created such very important opinion & suggestion about DeFi projects. Many investors lost their all of funds for fake DeFi investment projects. YFI was big hype and it’s kinda a bubble i think. I see it’s all time high over 40k$ in price graphics but now it’s heavy downfall around 16k$ that's a big example how much lost a lot of investors.I agreed with you we shouldn’t invest big amount in random DeFi projects.   

[LittleHamster]

First of all thank u for created such very important opinion & suggestion about DeFi projects. Many investors lost their all of funds for fake DeFi investment projects. YFI was big hype and it’s kinda a bubble i think. I see it’s all time high over 40k$ in price graphics but now it’s heavy downfall around 16k$ that's a big example how much lost a lot of investors.I agreed with you we shouldn’t invest big amount in random DeFi projects.   

YFI is a great example of greed for investors. He showed that you do not need to run headlong for profit. It's better to earn money safely. Also, this project has a lot of imitators, investors also bought these clones and as a result were left with nothing. It is very important to remember that only the earliest investors earn money in such projects, and even then not always.

[xiboothrezi]

~snip
My advice would be to keep yourself too safe from investing in these coins and even if the project is too good whatsoever, please don't invest anything that you can't afford to lose. Remember that whenever someone makes a 100x, he makes almost 100 people lose their capital (according to my observation).

Very good advice and should be remembered by all.
After several defi projects have multiplied such as YFI etc, it has made many people greedy and want to get the same fortune. Many ignore the analysis because of a strong market trend, so they take the opportunity without knowing the basis is strong or not, FOMO. Even my friend who is just learning crypto wanted to invest in some Defi projects because he saw the market rise. I can only advise you that the risk is large, the increase is high and fast, that is precisely what is dangerous, if there is a definite deep decline.

[alisonwonder]

First of all thank u for created such very important opinion & suggestion about DeFi projects. Many investors lost their all of funds for fake DeFi investment projects. YFI was big hype and it’s kinda a bubble i think. I see it’s all time high over 40k$ in price graphics but now it’s heavy downfall around 16k$ that's a big example how much lost a lot of investors.I agreed with you we shouldn’t invest big amount in random DeFi projects.   

YFI is a great example of greed for investors. He showed that you do not need to run headlong for profit. It's better to earn money safely. Also, this project has a lot of imitators, investors also bought these clones and as a result were left with nothing. It is very important to remember that only the earliest investors earn money in such projects, and even then not always.

well, YFI also has a very limited supply which ultimately makes its coins have a very expensive price because they have strong support too, so with YFI you can get a lot of profit just needing to take advantage of price movements.

[naska21]

In fact defi has already used by the scammers as a way to steal money from investors.

Besides 99.9% of newly born DeFi tokens are useless because they don't add any value to existing ones. Their only  purpose is to  pump liquidity across the  pools and collapse at a well-chosen moment to make their developers rich. The "cautious strategist" principle is the best one when playing on the field of Defi - better to win less than lose more while some projects are better not challenge at all.

In fact, useless is an understatement, they are beyond useless and the painful aspect is that many people falling for them all in the name of defi and making big profit, have you seen some of the defi project! they exude scam, it is written all over them and some people don't seem to care until they get rekt by this obvious scam only then they will shout and scream, too bad scammers have taken over the defi platform just like what happen during the ico period, despite all this fake defi's there few genuine and legit ones.

Yeah, here the proof of what you said. "Investor Loses 940 ETH ($360K) Overnight with YFI Founder’s Newest ‘Experiment". Amazingly, many investors kept buying that shit token despite the explicit warning  from developer. No sign of wisdom among them, looks like they were ticked by  jam-money, solely. It may be news to many of those  investors  that only miserable part of all existing DeFi projects is worth investing in  and before do it  they must evaluate  the relevant risk match it against other investments.

[Btra]

The Defi projects are may be a scam you had already seen in the recent past how these projects are making the investors billionaire. So, do not think more and over speculate on these Defi, just grab the opportunity and earn your benefit.

[LittleHamster]

First of all thank u for created such very important opinion & suggestion about DeFi projects. Many investors lost their all of funds for fake DeFi investment projects. YFI was big hype and it’s kinda a bubble i think. I see it’s all time high over 40k$ in price graphics but now it’s heavy downfall around 16k$ that's a big example how much lost a lot of investors.I agreed with you we shouldn’t invest big amount in random DeFi projects.   

YFI is a great example of greed for investors. He showed that you do not need to run headlong for profit. It's better to earn money safely. Also, this project has a lot of imitators, investors also bought these clones and as a result were left with nothing. It is very important to remember that only the earliest investors earn money in such projects, and even then not always.

well, YFI also has a very limited supply which ultimately makes its coins have a very expensive price because they have strong support too, so with YFI you can get a lot of profit just needing to take advantage of price movements.

I noticed what profit people got who bought YFI at the price of 20-40 thousand dollars. But for some reason, this profit is now with a minus sign. I would not value this token very much, no matter what the size of its offer.

[jostorres]

Well, I think you’re saying the truth here, but some people are not agree because they are all about making money at all cost. With that said, there are people who made money from the DeFi markets, and those are the early investors , they are always lucky , and the new investors are the ones that has to suffer.

I heard of Sushi's co-founder that took away $14 million which caused the market to drop, but he later came back and returned the $14 million, but he’s not back as a founder now, and his Twitter handle says – ex-cofounder or something of SushiSwap. Seriously, these DeFi projects are something else. But the thing is that people won’t stop feeding them, until eventually if they are truly scammers and they feel like they have gotten enough money, they will take down the websites and everything and disappear.

[bobyhodob]

The Defi projects are may be a scam you had already seen in the recent past how these projects are making the investors billionaire. So, do not think more and over speculate on these Defi, just grab the opportunity and earn your benefit.

indeed all projects have the potential and possibility to scam but as long as they haven't done that I think it doesn't hurt to try them and hope to benefit from DeFi by making good use of them.

[mdzahed134]

First of all thank u for created such very important opinion & suggestion about DeFi projects. Many investors lost their all of funds for fake DeFi investment projects. YFI was big hype and it’s kinda a bubble i think. I see it’s all time high over 40k$ in price graphics but now it’s heavy downfall around 16k$ that's a big example how much lost a lot of investors.I agreed with you we shouldn’t invest big amount in random DeFi projects.  

YFI is a great example of greed for investors. He showed that you do not need to run headlong for profit. It's better to earn money safely. Also, this project has a lot of imitators, investors also bought these clones and as a result were left with nothing. It is very important to remember that only the earliest investors earn money in such projects, and even then not always.

well, YFI also has a very limited supply which ultimately makes its coins have a very expensive price because they have strong support too, so with YFI you can get a lot of profit just needing to take advantage of price movements.

Yeah, mostly DeFi projects are looks gamble it's according to mostly projects market statistics, those price up & down was happening too shortly. So, i think this market movement is difficult to predict. Yearn.finance (YFI) first price was 32$ and i was shocked when i know that and ATH 43,872$, Undoubtedly here every early investors got big profit.  

[gunungkembar]

First of all thank u for created such very important opinion & suggestion about DeFi projects. Many investors lost their all of funds for fake DeFi investment projects. YFI was big hype and it’s kinda a bubble i think. I see it’s all time high over 40k$ in price graphics but now it’s heavy downfall around 16k$ that's a big example how much lost a lot of investors.I agreed with you we shouldn’t invest big amount in random DeFi projects.  

YFI is a great example of greed for investors. He showed that you do not need to run headlong for profit. It's better to earn money safely. Also, this project has a lot of imitators, investors also bought these clones and as a result were left with nothing. It is very important to remember that only the earliest investors earn money in such projects, and even then not always.

well, YFI also has a very limited supply which ultimately makes its coins have a very expensive price because they have strong support too, so with YFI you can get a lot of profit just needing to take advantage of price movements.

Yeah, mostly DeFi projects are looks gamble it's according to mostly projects market statistics, those price up & down was happening too shortly. So, i think this market movement is difficult to predict. Yearn.finance (YFI) first price was 32$ and i was shocked when i know that and ATH 43,872$, Undoubtedly here every early investors got big profit.  

indeed this is like a game by whales who try to lure new traders to enter and trap them there so that they cannot come out again and have to lose if they want to get out of the coin, therefore we all have to be careful with the coins we buy.