ICO scams vs DeFi scams

[maartenhaha]

We have to be wary of new defi projects, they can do anything and may engineer hackers case for other means of stealing investor funds, please be careful with defi and guard your investment for legit projects.

[sulis sudibyo]

actually DeFi is very promising, but unfortunately many scammers use this concept to commit fraud. just like an ICO, Defi is a very easy way to raise money. The hacking case that attacked Defi seems like it's all just an alibi to run away from their investors' money. how could there always be hacks every time a Defi project got popular. it's very strange isn't it ?. So I thought the hack was just an excuse so that the developer wouldn't be declared a scammer, so they could go away innocently.

[coin-investor]

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

People are pinning their hopes on DeFi this will soon become a multi billion industry if there are to much hacking and scamming going on, it will become even worse than ICO scamming, because DeFi should be safe as it is smart contract based, the biggest problem is the cloning of tokens via fake smart contract and loopholes on the smart contract, people should fully understand how DeFi works before getting involved on it.

[flyer88]

I am also sad to see Defi today who continues destroy the Crypto world, Many Scammers hide behind DEX or decentralization, even though their token is just a junk token, then they found Uniswap as a suitable place, this is very risky for investors. It's better to stay away from the current Defi project, because it only wastes your money and time.

[Strongkored]

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

Will not fully know about this because it could be, that the developer did it on behalf of the hacker, but certainly investors can hardly hold developers accountable when that happens.

I am also sad to see Defi today who continues destroy the Crypto world, Many Scammers hide behind DEX or decentralization, even though their token is just a junk token, then they found Uniswap as a suitable place, this is very risky for investors. It's better to stay away from the current Defi project, because it only wastes your money and time.

That's why as investors we have to research before choosing DeFi projects to invest, or as you said it would be better if just stay away because it is difficult to specify which is a legit or a fake project.

[WalkerIVIV]

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

There are still vulnerable code that's not yet discovered and some features are still having backdoor. The defi platforms are not a perfect platform and i believe it's still experimental platform that needs a lot of upgrade.
that's why there are lots of defi platforms were getting hacked these days. They lack of regular audit. BTW even audit will not solve this problem.

[rodskee]

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.

You are not in crypto world if never seen Scammers and hackers because they are part of the community and actually they are always finding new ways to take a bite in every cakes offered here in this market.

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

It's hard to Point finger but sounds like the second question is applicable here,because they seems to be un aware of the capacity of hackers and scammers for their project to become a victim.they knew that bad element are roaming around yet security is too weak still.

[gabbie2010]

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

There are still vulnerable code that's not yet discovered and some features are still having backdoor. The defi platforms are not a perfect platform and i believe it's still experimental platform that needs a lot of upgrade.
that's why there are lots of defi platforms were getting hacked these days. They lack of regular audit. BTW even audit will not solve this problem.

Then after the upgrading of the vulnerable codes and fixing of loop holes that warranted hacking the system how will they bring back trust to the project? the ugly experience of investors must have dented the image of those Defi projects invariably many investors will shun them just like the days of ICOs later IEOs its will be difficult to redeem their images and reputations
having flooded the cryptos market with hackable and scam projects.

[Maxstl007]

Everyone should be careful with DeFi projects, with the way I'm seeing things right now I believe that DeFi scams will surpass ICO scams, millions of million dollars will be lost, I don't see anything new from DeFi projects, they are repeating same old use case that isn't that good( lending and staking), nothing is been solved in crypto space by DeFi , DeFi projects are onecoin 2.0 and bitconnet 2.0

[maxreish]

Remember that all new "hype" in crypto industry has been attacked by scammers. ICO's reputation werr taken down because it was actually ruined by those fraudsters and most of them now were just created for scam purposes. Same with defi projects today. Hype were too fast and they are targetting the defi loan projects where in those tokens will  be created to be offered as a loan not knowing that the coin were fake and can not be traded with crypto exchanges.

Saw this latest news about defi projects were exposed via telegram screenshots and how they manipulate the price. And how they make a plot.

- https://news.bitcoin.com/defi-token-exposed-as-pump-and-dump-scam-in-leaked-telegram-chat/

[Pom_bensin]

This is the importance there must be a supervisor to spot a scam project. A lot of projects go by the name "deFI" but are in fact a scam and a disadvantage. this is clearly unsettling, so I thought maybe I should be aware after ICO scam now there is a deFI this scam might be detrimental but this is the reality in crypto

[iv4n]

Scam is a scam, and scam to be good one it has to follow a current trend! Before that was ICO, now it's DeFi! But don't let that trick you, we had good ICO projects that are still around and making progress! There are good DeFi projects, and some of them are here to stay for sure!
Bottom line is that you need to know how to recognize good from bad, trends are changing, and there were scams long before crypto, there are scams in crypto, and be sure there will be scams in the future. It's good to analyze some big scams (big scams are a good example of how professionals do that) so you can learn how to recognize them in the future and stay away from them!

[thesmallgod]

Before, more attention are giving to protecting any project platforms especially some of the exchange platforms there were created earlier. The security is like foundation to any project development. To convince, try and find some of the project whitepaper created during the early stage of ICO and compare to the many projects that are being held now. Much attention are being given to providing in depth security. Today, hardly will you see any project that one to invest their money for a project startups. All they want is to take advantage of trending topics and get funds which might not be utilized fully. Since the advent of successful DeFI such as YFI, many projects have adopted the same means and today we have so many projects that are worthless derivative of YFI. No matter how hard you try, you will find it difficult to understand the reason why dev team jump on trending topics and make it a projects. even though they have consistently failed in previous projects they are involved in.

[culuuton]

This is the importance there must be a supervisor to spot a scam project. A lot of projects go by the name "deFI" but are in fact a scam and a disadvantage. this is clearly unsettling, so I thought maybe I should be aware after ICO scam now there is a deFI this scam might be detrimental but this is the reality in crypto

No one can supervise all the projects, the scammers themselves are also very cunning when changing the method to be more suitable for each stage. There are also many scam defi projects discovered on the forum recently, they have copied white papers, roadmaps, ... look at all projects with the highest suspicion.

[LogitechMouse]

DeFi in general isn't a scam but the problem is it has been hyped for quite some time and because of this, scammers swarmed it creating new DeFi projects and some of them are scamming people.

Quite unfortunate but that is the truth . As long as there are money and some ignorant investors in the space, scammers will always be there. Not only DeFi will be used as a way to scam people but many other will be used in the future. What you can do as a wise investor is that, invest into other coins and not into DeFi but if you really want to invest then I will suggest ChainLink as for me it is the most trusted DeFi project as of now. Another option in order for you not to get scammed is just not to invest on it all.

[joseyphil82]

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.

Trying to avoid scam projects is like saying you won't invest on any new projects anymore because it's more complicated to avoid scam projects today, the most effective way is relying on top exchanges IEO launchpads only but trying to choose projects randomly from other crowdfunding strategy like ICO, IDO and others are high risks because there is no one to take the blame If anything goes wrong, this is why top exchanges are different, they provide trust and assurance

[Kelvinid]

ICO scams vs DeFi scams, they are both scamming.
There is no need to show whos gonna have more scam projects because that it seems useless, it is much better to talk about which one has given a more reliable and potential project (which could also hard to determine).

Well, when it comes to crypto investment either be from ICO or DeFi, definitely you will get find it hard to choose the best one and that seems to get lucky if you have got one. Not all that looks promising project means worthy because some of them have a good start but it only ends shortly.

[masterrex]

why are 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
[/quote]

I think you have a point, and it might have been an inside job. By the way, I have no issues with the Defi projects as long as they are transparent and legitimate. for example, like DIAdata the team is known to the public and they are not hiding, with that move, the trust was restored and the project received huge support from investors. But till today the Defi space was packed with projects that have an anonymous team, which is likely become an exit scam. so be careful and always observe due diligence when dealing with such kinds of projects.

[mersal]

Scam is scam no matter of what, and it evolves depending on the current market status so its user's responsibility to take care of their funds. Yes it is true that Many scammers are free to list the clone and scam projects whereas in ICO there are no restrictions too.

[Atang Sulaeman]

As long as there are gaps and opportunities for fraudsters of any kind, there will definitely be a lot of fraud,
and there will definitely be new people, they are old bankers whose job is only to cheat and take advantage
of the weaknesses of the existing system. , we are left alone to be careful in every action or even in every infestation