Kvalentine (OP)
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Here are reasons why DEFI is a high risk investment
1. A glitch in the system can lead to loss of funds or blocking of all assets
2. Developers boost that their codes are impenetrable but they can't oversee how users interacts with applications and platforms, meaning human errors are inevitable.
3. Market is very unpredictable and there is no any form of insurance available for investors, they risks of losing fund is very high
4. YIELD FARMING
Yield farming means the creation of tokens to reward users who provide liquidity to a project, meaning it's a must for users to invest their tokens on the project, you won't be able to trade or sell.
Today many projects are going into DeFi because high yields are offered and investors want quick profits too .
With DeFi the risks are insanely bigger compared to ICO.
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"The nature of Bitcoin is such that once version 0.1 was released, the
core design was set in stone for the rest of its lifetime." -- Satoshi
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ryzaadit
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October 30, 2020, 01:22:07 PM |
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Simple, a ponzi offering 1-3% daily still risky and some shit DeFi offering 30-300% APY how that's work? This kind of defi was more insane than the Lending Project on 2017 when they only offering maybe around 30-50%/month.
I'm just saying DeFi just a Ponzi/Lending 2.0 with more insane interest than old Lending.
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tsaroz
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★Bitvest.io★ Play Plinko or Invest!
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October 30, 2020, 01:26:01 PM |
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Defi itself is not a high risk investment but scams and ponzi under the cover of Defi are risk.
There is risk of some loopholes or exploit on code in Defi but such issues occurs with every financial projects be it centralized exchange or decentralized one. But if they go through internal and external audit as well encourage white hat hackers to penetrate test it, Defi would be a much more secure option than any centralized finance.
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Rodeo02
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October 30, 2020, 01:53:03 PM |
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Simple, a ponzi offering 1-3% daily still risky and some shit DeFi offering 30-300% APY how that's work? This kind of defi was more insane than the Lending Project on 2017 when they only offering maybe around 30-50%/month.
I'm just saying DeFi just a Ponzi/Lending 2.0 with more insane interest than old Lending.
And that's the reason why most of them will failed give a high interest to it's investors will not gonna work if you are looking for long term. That 30-50 % interest monthly c'mon who does not want to have that? But the real question is how they can really sustain that investment for long?the answer is they can't so why risking your money to program that you know will turn your money down one of the day. |
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Greatchu
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October 30, 2020, 02:07:21 PM |
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Out of all the DeFi projects I did research on I only prefer Chainlink, the data Oracle thing makes more sense to me than anything and that's why Chainlink was successful even before DeFi hype started this year, another new project that works with Oracle is dia, these are more than just mere yield farming, goodluck to all those who are into yield farming, I hope it favours them in the end.
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big kid
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October 30, 2020, 02:29:00 PM |
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I see the current passion of DeFi & Yield Farming as the heyday of ICOs, the same high risk of taking advantage of the current hype so that many DeFi scam projects have sprung up
High risk was always a big part of crypto investments, scams as well. Yeild farming is a very sketchy thing, I'd call it a scam, but thats debatable. Defi projects do differ from each other a lot - some ICOs are scam, some of them are good opportunities for small projects to grow |
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Balladtony77
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October 30, 2020, 04:51:12 PM |
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If you are smart you can make money or profits out of any scam project, as you guys can see many are making huge money from these so called scam DeFi projects, I think DeFi investment is only for the smart investors, anyways, I personally make sure that the DeFi projects I keep are old projects like chainlink and ferrum, I have nothing to do with new DeFi projects that are released after the DeFi hype begins
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peterpanda
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October 30, 2020, 05:09:05 PM |
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Actually a lot of fake, ponzi and scam projects are running under defi. We should more care about these kind of projects. People are over reacting on defi projects.
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istiak2277
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October 30, 2020, 05:18:21 PM |
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All the DeFi project is very high risk. Most of the DeFi project price dropped over 60% from its ATH. There is still some project that has a real use case and they are still holding their price. But DeFi concepts have real use cases so we can join a good project and it can give us a good return on investments in time and the whole crypto space is a high risk for investments.
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Kupid002
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October 30, 2020, 05:33:44 PM |
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Actually a lot of fake, ponzi and scam projects are running under defi. We should more care about these kind of projects. People are over reacting on defi projects.
And they know that there many people willing to risk thier money just to invest in a project so they will not left behind the trend . Over reacting for a reason that there are hype project that really give a high gain in short period time in investing in defi project . Since many people is greedy to earn in easy way they take that risk . |
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cobonadu
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October 30, 2020, 05:44:55 PM |
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DEFI = HYIP under the cover of blockchain!
HYIP is just a ponzi scam which you invest a project(nothing) with dollars and make money by referring
Defi is the same!
Their are many scams this year so it's better to invest in the top coins
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qazgroup
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RiveMont
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October 30, 2020, 06:01:19 PM |
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Every new tech is high risk especially defi has proven to be a bloated trend full of contract errors and loopholes and then there were so many rug pulls that the reputation crashed and even the good projects are facing downtrend but i am hopeful with time good defi projects will make good standing in the market.
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desticy
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October 30, 2020, 06:40:12 PM |
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Defi itself is not a high risk investment but scams and ponzi under the cover of Defi are risk.
There is risk of some loopholes or exploit on code in Defi but such issues occurs with every financial projects be it centralized exchange or decentralized one. But if they go through internal and external audit as well encourage white hat hackers to penetrate test it, Defi would be a much more secure option than any centralized finance.
It is difficult to say whether it will be as you say. DeFi are not stablecoins, whose price rate is dictated by external factors. It looks good financially, but from a security point of view, I don't think that people are ready to keep their assets in such an unstable state. Until the cryptocurrency becomes stable like stable coins, it cannot be said that it will replace centralized financial systems. |
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irixo10
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October 30, 2020, 07:13:18 PM |
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You are right about your observations or post. The first point about glitch in the system leading to loss of funds is becoming rampant, the team calls it bug or glitch while some people might call it hack, whatever be the case, the thing is, it is not a good thing most especially for DeFi owing to the features or benefits it is assumed to offer to investors. With this glitch becoming the order of the day will only lead to one thing which is lack of interest in Defi projects.
About high yield, that might be the only reason investors are rushing many Defi projects, now if you look closely you will realise that, because of this high yield many Defi projects are now everywhere both the ones whose developers knows what they are doing and so on, and because investors cares only about profits they don't bother studying them to know how solid they are, hence the reason for insane pump and insane dump of some of them.
Lastly, I agree with you, looking at the risks, scams, glitch and so on, it is clear the risks in Defi is higher than that of ICO.
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yeamin.rsl
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October 30, 2020, 07:29:09 PM |
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Defi is really a risky investment .If you look at biggest gainers and losers chart now in Coinmarketcap/Coingecko you will find defi coins both in gainers & losers table . You can profit very fast in Defi and also you can loose
everything very fastly.
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DatKing
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October 30, 2020, 07:42:40 PM |
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3. Market is very unpredictable and there is no any form of insurance available for investors, they risks of losing fund is very high
This is really a big risk to take. Of course, I know that there are risks when investing in any other cryptocurrencies too. But the price of DeFi coins are changing at a high rate too often. Because there is no insurance for investors, it is a big problem for DeFi projects I think. |
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tycsols
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October 30, 2020, 08:22:32 PM |
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Most of the defi projects even the working ones are full of bugs and coding errors and this is exactly what makes them highly risky. So i would suggest everyone to use only the top platforms of required, like uniswap, compound, synthetix, aave only at the moment. If more projects prove themselves in coming months they can be added to this list as well.
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Krislaw
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October 30, 2020, 08:48:39 PM |
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No team, no whitepaper, no roadmap, no professionalism, just bunches of anonymous members in tg groups with little or no idea about smart. You risk losing your funds if you invest with such group of people. They are just like lending coins.
So risky. It's better to avoid
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Oilacris
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October 30, 2020, 08:54:48 PM |
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Simple, a ponzi offering 1-3% daily still risky and some shit DeFi offering 30-300% APY how that's work? This kind of defi was more insane than the Lending Project on 2017 when they only offering maybe around 30-50%/month.
I'm just saying DeFi just a Ponzi/Lending 2.0 with more insane interest than old Lending.
And we would expect for some Ponzi/Lending 3.0 in next years to come when this trend had been bust up or doesnt have any more fuel to fool out people and this cycle will continue. Why people dont ever learn into their past experiences? Or trying to check out on whats happening when it comes to investment. Everything that sounds too good then theres always accompanied high risk with it but people do tend to be blind about the reality until they do burn out all of their investment. ICO, DEFI ? these are just in common as high risk investment even putting on a top rank altcoin wont give out any guarantees. |
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tvplus006
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To the Moon
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October 30, 2020, 09:07:37 PM |
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Defi itself is not a high risk investment but scams and ponzi under the cover of Defi are risk.
There is risk of some loopholes or exploit on code in Defi but such issues occurs with every financial projects be it centralized exchange or decentralized one. But if they go through internal and external audit as well encourage white hat hackers to penetrate test it, Defi would be a much more secure option than any centralized finance.
We saw earlier how the error in the DeFi Yam smart contract turned out. As a result of this error, investors lost all their funds. Vitalik Buterin warned investors that they underestimate the risks of smart contracts and recommended not to invest all their money in the DeFi sector. |
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