DeFi - The Scam Engine?

[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.

[1714873513]

1714873513

[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.