DeFi - The Scam Engine?

[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

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[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.