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Author Topic: Are DeFi projects trustless?  (Read 805 times)
erikoy
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October 11, 2020, 03:46:40 AM
 #101

This is why now they introduce the NFT projects. This after some news regarding Defi that takes toll on every investor that had trusted it and later on it found out that DEFI projects are not reallt decentralized because it could be manipulated.

How I wish that the next project especially NFT projects will be more reliable and trusted projects. This is what we are looking now because we need more projects that could be funded by the crowd to get back cryptocurrency market at its best with new projects.
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Even if you use Bitcoin through Tor, the way transactions are handled by the network makes anonymity difficult to achieve. Do not expect your transactions to be anonymous unless you really know what you're doing.
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October 11, 2020, 05:33:06 AM
 #102

for me, yes, but I am confused by my friend, if you realize that DEFI is actually a new tool to get short-term profits in 2020. if you only rely on bounty results it is not enough. although greedy but you need to try to enjoy Hype DEFI. I don't care what people say, as long as the DEFI project is profitable for me, then I do. I know that Defi is Hype, so when you've made a profit, then leave immediately before getting stuck on FOMO.
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October 11, 2020, 10:59:03 AM
 #103

It's only a matter of time until some DeFi developers will start abusing their admin keys privilege to scam people, this field is ripe for that - tons of investors blindly throwing their money in anything "DeFi", just like it was with ICO and blockchain in 2017. Anyone who is playing on this market right now needs to understand that sooner or later the hype will be gone, and when that happens, a crash will come.
Some DeFi projects have already abused the word 'decentralized' , remember the Kucoin hack? Several DeFi projects were affected and many of these projects went ahead to change their smart contract to another, that is no decentralized Finance to me, it shows that such projects are just using decentralized name sake

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October 11, 2020, 02:59:56 PM
 #104

98% of them are scam and useless, have witnessed alot of them vanished away few days ago my  colleague sold about $6000 worth of $BLZ and use the fund to buy a Presale it wasn't upto 34 hrs the project vanished oh my God I feel sorry for him anyway.
That's why you should avoid investing in defis. Since they are very hot right now, it is no wonder that there will be people who will abuse it. Some of them don't even include the developers' real names on the whitepaper. I think you should definitely check this one before investing in them.  If they want to remain anonymous you should probably not invest in them.

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October 18, 2020, 08:31:06 PM
 #105

That's why you should avoid investing in defis. Since they are very hot right now, it is no wonder that there will be people who will abuse it. Some of them don't even include the developers' real names on the whitepaper. I think you should definitely check this one before investing in them.  If they want to remain anonymous you should probably not invest in them.

Well, developer's anonymity is not a reason to avoid investing in a "De-Fi" project. They can choose to remain anonymous in order to protect their project against government interference. Consider Bitcoin's founder which is anonymous. No one knows who Satoshi is, yet people trust Bitcoin by investing on it for the long term. To be able to differentiate between a good "De-Fi" project and a bad one, you'd need to do your own research. Analyzing the code is the first thing you'll do when deciding to invest into a "De-Fi" project of your choice. If the smart contract's code involves a level of trust (where the developers can freeze your tokens or gain access to them at anytime), then you should avoid the "De-Fi" platform as much as possible. The only downside to this approach is that you'd need to have some basic programming knowledge to be able to understand the code. Most people are not tech-savvy enough to do this, leading towards many undesired losses in the long run.

Nonetheless, "De-Fi" is all about being trustless. When trust is part of the system, you get nothing more than "Banking 2.0". There's nothing we can do about it, as crypto/Blockchain tech is open source. With heavy-handed regulations from the government, centralized "De-Fi" platforms might become a thing of the past. Just my opinion Smiley

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