DeFi - The Scam Engine?

[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.

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[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.