ICO scams vs DeFi scams

[joseyphil82]

After scammers ruin ICO in 2018 and onecoin and bitconnet became the biggest ICO fraud cases I thought things will atleast adjust for the better, things looked more promising when IEO took over and became more popular thanks to binance and other top exchanges performance but 2020 is very different, DeFi became a thing and once again scammers have the freedom to operate, something very identical to ICO freedom. All in the name of Decentralized and DEX, Uniswap for example, scammers are now roaming free...

1. They find uniswap as better haven to sell clone tokens
2. Even hacks are happening around DeFi projects almost every month now.

why is DeFi platforms more easier to hack? Or are developers the real culprits hacking their platforms themselves? DeFi failure will forever be a stain in crypto history

[1713872592]

1713872592

[1713872592]

1713872592

[Altcoinsintel]

I won't use DeFi services as I don't see a reason to do that.

If this is what they plan to do then it is a scam by itself. What is DeFi doing is asking us to stake as collateral some useless tokens and earn passive income as others will borrow these coins. First of all why would someone borrow any token? They give back some tokens to borrowers like Comp, UNI and they sell for profit.
Really this is how DeFi creates value?

DeFi is Bitconnect 2.0.

The hacks or better call them exploits of the code and exit scams are just taking this to another level of scam.

[jessyj48]

If we talk about new projects i think as far as DeFi projects are concerned if we pay good attention we can figure out the low quality or fake scammy projects but among ico projects it was not easy to identify fake projects.
Regarding hacking and stealing i agree that most of these events look suspicious and may be done by some insider or employee if the team itself is not involved.

How can you identify a fake DeFi projects compared to ICO projects? ICO projects have fake teams and DeFi projects have the same thing, some ICO projects have real team members and they still scam investors, isn't the same thing happening around DeFi projects? Even if you have some good experience you should know that everyone won't be like you, newbies are the most ones falling for scams in crypto space

[benthach]

i used to blame the scammers but now i realized it's the the dumb greedy morons that are buying into these scams which should be blame, they're making crypto look bad. when they lost they start to cry and complaining like a little baby then the media and the masses start to pick it up in a bad ways

[Stanlo]

It looks like most DeFi hacks that are happening presently are staged, yes there is a hack but from who? I don't believe that hackers are the only ones in play here, DeFi projects that want to exit scams can easily put blame on hackers and exit there projects without having to worry that they will be tracked down, the hacks are just growing higher that's why I feel that there is more to this hacks

[target]

There is no easy way to spot a scam Defi project, some that we thought are scams has been on exchanges already and some got high value. If for some reason we see their project fail and tokens price dumped, that's when we can see they are really scam. Any of the projects today can fail though, even the ones that are not Defi.

[Greatchu]

Either DEFI, ICO or IEO, Crypto projects are crypto projects, some will scam you and some will dump and never recovers and some will unexpectedly be unique, this is why we have to play safe when investing in any crypto project, sometimes doing research isn't enough, you can still get scammed, the only red flag with DeFi projects is the continues hacks, hacking on DeFi is getting more popular

[plvbob0070]

With the easy listing process of tokens in Uniswap, it will probably serve as their paradise. As they could easily develop a token and released it. It has a major contribution to the different scam issues; however, it is not the only problem. As some investors fail to conduct an analysis and carelessly buy a token which usually turns out worthless.
For instance:
[1] FLM On Uniswap FAKE!

These are the list of Defi scams, it seems to be continuously increasing which is unsurprising to see, as Defi is open finance.
[1] LIST DeFi-Scams - Big All-In-One-Thread - LAST UPDATE: 26/11/2020

Thus, we should be watchful and learn to conduct proper research. Do not just rely on the token list in exchanges, especially in unknown exchanges. But instead, explore the official website and do the purchase. Nevertheless, any platform can be hacked, greedy developers exist and the issues in Defi can definitely affect cryptocurrency’s honor.

[pedrillo0]

Like the ICO, DeFi's are not immune from scammers.
Even DeFi is easier to steal, tokens can be cloned, and people fall for its joke.

But if you want to know about a more secure system, I recommend IEOs: https://www.cryptoknowmics.com/news/would-defi-turn-out-to-be-another-ico-like-scam/

Since the IEO are regulated and in addition to belonging to large exchanges such as Binance...

[cytpoway121]

Scams are scams; you don't have to classify them into ico, ieo, or defi scams. The truth is the fraudulent patterns are the same every where in the crypto currency space. Create a token; do some marketing and token promotion; lists on an exchange, lure in investors; dump on traders; and exitscam. This is just how it has been, using uniswap, forkdelta, or even centralized exchanges has never been a problem.

This is why investors has to ensure that the investment is safe before participating. Always do your own research.

[Zeehaxan]

After scammers ruin ICO in 2018 and onecoin and bitconnet became the biggest ICO fraud cases I thought things will atleast adjust for the better, things looked more promising when IEO took over and became more popular thanks to binance and other top exchanges performance but 2020 is very different, DeFi became a thing and once again scammers have the freedom to operate, something very identical to ICO freedom. All in the name of Decentralized and DEX, Uniswap for example, scammers are now roaming free...

1. They find uniswap as better haven to sell clone tokens
2. Even hacks are happening around DeFi projects almost every month now.

why is DeFi platforms more easier to hack? Or are developers the real culprits hacking their platforms themselves? DeFi failure will forever be a stain in crypto history

Defi based scams are popping up in dozens perhaps because they are easy to create with no real product, no whitepaper and no team just a website with fundraising on uniswap. I still think they can be stopped if platforms like uniswap and other decentralized exchanges block the scammers.

[jacafbiz]

The difference between ICO and DEFI now is that then with ICO, project don't have the luxury of using Twitter and other social engagement to attract users, most of their focus is here in BCT and again they need to convince exchanges to list their scam tokens, but now you can pay some social media influencers to shill their project to their followers and they do not need to pay for exchange listings, all they need is to use Uniswap and pull their rug under their tokens holders

[hatshepsut93]

IEO wasn't free of scams either, and I'd say it wasn't much of improvement over ICO. Maybe it forced scammers to not be so blatant, but they still created useless tokens without any real intentions of developing the platform, and people still bought them, because they drank the "good project" kool-aid.

I believe altcoins will forever be a scammers paradise, because you can completely anonymously create and asset, sell it to other people anonymously through other coins like Bitcoin or Ethereum, and now even do it on decentralized platform that can't be regulated or taken down. This is just a scammers dream - so little chances to get caught, so little effort for creating a scam. The only reason why bitcoinnect or onecoin people got caught is because they did it on such scale that it attracted a ton of attention from law enforcement. If they just stole a few millions and called it a day, no one would have cared.

[Kopetunto]

both of them make us frustrated, be it ICO or DeFi,
you have to make a decision to stay away from all this, if you want to survive then you have to avoid it!

[24Kt]

both of them make us frustrated, be it ICO or DeFi,
you have to make a decision to stay away from all this, if you want to survive then you have to avoid it!

And I believe some of the DeFi hacks are inside job. Definitely, they will not admit it, but I have the feeling that such hacks have had help from inside. But yes, it is better to stay away from these defis, also these y-related defis. Even the yearn.finance itself, as I checked their platform, still in beta??? Guess, they will never develop their network up until there is no more value in the market. Really wondering how they manage to have a price more expensive than btc, without any use case???

[arufox]

why is DeFi platforms more easier to hack? Or are developers the real culprits hacking their platforms themselves? DeFi failure will forever be a stain in crypto history

I think all related about crypto, doesn't matter it Defi, ICO, or anything actually is safe. So hard to hacked, except the problem is a human error, so not about the platform but about people itself, sometimes because the hacking from a team of the project, they make it like an incident but actually they do it.
ICO and Defi are high risks because so easy to become scam, so don't join if you are not ready for the risk

[mexite]

As long as there are still no clear regulations on crypto industry, scammers would always have a field day. DeFi scams are getting bigger than ICO scams, especially with the ease of rug pull. The fact that most DeFi projects are experimental rather than well tested and audited makes it easy for dev to defraud investors. I personally don't understand why some people will entrust their hard-earned money into a crypto project with an unaudited smart contract, if not for greed. Some dev intentionally insert back doors such as unlimited mint function into their code.

[chanler]

Actually, the scheme of scams in ICO and DeFi may be the same. And we don't know whether the scammers are also the same or not. However, whatever the crypto fundraising or era, the scammers will be always there. they will probably still use the old ways to scam, with similar schemes or even using new schemes of scams. but in the end, the result is the same. they scam people by offering very legit projects, rewards, easiness on technology ad industries, and also many other scam work. This is interesting. But at least, we know them and we can avoid them for sure.

[steampunkz]

With the easy listing process of tokens in Uniswap, it will probably serve as their paradise. As they could easily develop a token and released it. It has a major contribution to the different scam issues; however, it is not the only problem. As some investors fail to conduct an analysis and carelessly buy a token which usually turns out worthless.
For instance:
[1] FLM On Uniswap FAKE!

These are the list of Defi scams, it seems to be continuously increasing which is unsurprising to see, as Defi is open finance.
[1] LIST DeFi-Scams - Big All-In-One-Thread - LAST UPDATE: 26/11/2020

Thus, we should be watchful and learn to conduct proper research. Do not just rely on the token list in exchanges, especially in unknown exchanges. But instead, explore the official website and do the purchase. Nevertheless, any platform can be hacked, greedy developers exist and the issues in Defi can definitely affect cryptocurrency’s honor.

Thanks for this share Brother! And I didn't know that there are already many Defi Scams that's popping right now and all the airdrops, social media minings, and some are them are in the bounty sections hidden,

[Baimovic]

as we all know that scamers always have a thousand ways to fool their victims, be it via ICO, ITO, IEO, or even DEFI. Moreover, DEFI is one of the booming project trends in 2020 and most of the Defi projects are listed on the DEX (Uniswap) platform with expensive withdrawal fees and this platform is a place of entry and exit for scamers in 2020 at this time.