What do you say about this investment plan

[pgbit]

Investing in DeFi projects with stablecoins carries risks, requiring careful evaluation of potential rewards. Stablecoins can stabilize platform tokens and increase their usefulness, but smart contract bugs, liquidity issues, regulatory uncertainty, and market volatility pose risks. Different stablecoins have varying risk profiles based on collateralization and underlying mechanisms, with some backed by fiat currency and others algorithmically stabilized. Conduct due diligence before investing.

[michellee]

Even though the Defi project is safe to invest in, it still carries risks and we must be prepared for all the risks. If you feel the project is unsafe, you better not try to avoid the risk of fraud in the future.

Such projects can always tempt investors to try to join their projects with the promise of getting big rewards. But we as investors must be wise in reacting and better find out more about the project. If necessary, we can talk to the developer or his team to get a definite answer about the clarity of the project before we invest.

[Tony116]

If necessary, we can talk to the developer or his team to get a definite answer about the clarity of the project before we invest.

That's not possible, no developer or project team will ever tell you they're going to scam you. They will say what you want to hear, the project will run for a long time, and profit up to hundreds of percent...You are so naive, they create the project also with the purpose of making profits and profits from investors like us. If they said they would scam you, would you still invest? Financial markets are where we take each other's money, so no one can tell you when they will take yours.

Do your own research with your own experience and knowledge, and don't listen to anyone, especially the project creators, because they want you to invest in their project.

[DOH!]

Is it safe to invest in Defi projects that has it's own Stablecoin?

Yes, but it's decentralized stablecoin. Maybe it's another niche to eliminate the reliance on traditional stablecoins being controlled for regulation. We can't be reckless with continuing to believe in tether, the experience of BUSD could be a clear proof of its risky situation. I'm also learning about a project that builds defi finance, and has its own stablecoin backed by bitcoin.

[Questat]

Is it safe to invest in Defi projects that has it's own Stablecoin?

Yes, but it's decentralized stablecoin. Maybe it's another niche to eliminate the reliance on traditional stablecoins being controlled for regulation. We can't be reckless with continuing to believe in tether, the experience of BUSD could be a clear proof of its risky situation. I'm also learning about a project that builds defi finance, and has its own stablecoin backed by bitcoin.

Well, choosing stablecoins for investment is not a great choice. It was not because of being centralized and controlled price but due to the previous history of Luna bringing something unclear situation. I do admit I was still using BUSD but never I use to hold them long, it was just for some transactions. It was not the worrying part I see about stablecoins because it still usable in the market. Nor do I think defi is a threat to the market cause I know they have been created for some reason and so people give trust and invest in them.

[goaldigger]

Is it safe to invest in Defi projects that has it's own Stablecoin?

Yes, but it's decentralized stablecoin. Maybe it's another niche to eliminate the reliance on traditional stablecoins being controlled for regulation. We can't be reckless with continuing to believe in tether, the experience of BUSD could be a clear proof of its risky situation. I'm also learning about a project that builds defi finance, and has its own stablecoin backed by bitcoin.

Creating your own stablecoin even if its a decentralized might need a lot of work and a lot of money, so better to focus first on the core products or services that you are going to offer, you can just have this in the future as part of your development. Decentralized stablecoin might be a good idea, just like DAI as one of the good stablecoins to date, but still there's no assurance for its safety that's why many are hesitant to buy as well. For me, there's no need to create your own stablecoin, many investors still prefer the top coins for this.

[Silberman]

Investing in DeFi projects with stablecoins carries risks, requiring careful evaluation of potential rewards. Stablecoins can stabilize platform tokens and increase their usefulness, but smart contract bugs, liquidity issues, regulatory uncertainty, and market volatility pose risks. Different stablecoins have varying risk profiles based on collateralization and underlying mechanisms, with some backed by fiat currency and others algorithmically stabilized. Conduct due diligence before investing.

Creating a stable coin is not as easy as some claim and we have many examples of this, if there is a bug on the code then hackers can use it to steal a great deal of money, the trust on the coin is lost and then it collapses, this could also happen if the developers are found to be lying about their reserves and the ratio at which their stable coin is backed by fiat, and if the difference is too big this alone could cause the stable coin and the whole project to collapse.

[btc_angela]

Investing in DeFi projects with stablecoins carries risks, requiring careful evaluation of potential rewards. Stablecoins can stabilize platform tokens and increase their usefulness, but smart contract bugs, liquidity issues, regulatory uncertainty, and market volatility pose risks. Different stablecoins have varying risk profiles based on collateralization and underlying mechanisms, with some backed by fiat currency and others algorithmically stabilized. Conduct due diligence before investing.

Creating a stable coin is not as easy as some claim and we have many examples of this, if there is a bug on the code then hackers can use it to steal a great deal of money, the trust on the coin is lost and then it collapses, this could also happen if the developers are found to be lying about their reserves and the ratio at which their stable coin is backed by fiat, and if the difference is too big this alone could cause the stable coin and the whole project to collapse.

Hmm, Defi + stable coins in one sentence? doesn't sounds right to me. So I will agree that there are a huge risk, or shall we shall red flag seeing this kind of marriage. Defi alone for me has huge risk already, it might be one the latest hype, but still though, I'm not that comfortable and I will say that this hype might die sound. And we all know that there are a lot of pressures too, from regulatory body about stable coins, so it's going to be a double whammy for the developers and the people behind the project on how to get a balance between the two, in my opinion.

[Digital_Lord]

Actually a person research about certain projects if he get positive feedback then he desires to make investment in it and if he does not get any positivity then he do not want to make investment in it. Investment in every project is risky the important thing is that you should manage that risk and you should have create idea and action according to that risks. You should know that not  single project is safe completely it up to you that how much money you put and for how much time you keep it hold so making concept about defi project is very useful before participation.

[Unbunplease]

Most of the time, early investors get good returns - regardless of whether the project is DEFi or not. The main thing is not to put your money in pools for the long term, as the interest earned may not compensate for losses due to the likely drop in price. There are many defi projects right now, and only a few will survive.

[abralzain17]

Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.

Reading from what you wrote it looks like you yourself are not sure what you want to invest there. what if I offer you a suggestion for your investment?, you should look at a project that can convince you to put your money in it, secondly you look at the prospects for the project, if the project has a clear roadmap for future use cases, and there is a good team and developers great you should invest there. I think this is a little shadow that I gave, you can find it yourself

[andriarto]

Most of the time, early investors get good returns - regardless of whether the project is DEFi or not. The main thing is not to put your money in pools for the long term, as the interest earned may not compensate for losses due to the likely drop in price. There are many defi projects right now, and only a few will survive.

as long as you can take advantage of the moments and trends that occur, you will get good profits, indeed for the long term it is not good to hold, considering that this will only happen in a momentary trend. if the trend is over and there is a decline, it will be difficult to recover, especially if we keep holding it, it might just turn into trash, therefore we must be able to analyze properly and be able to take advantage of the situation

[StarKay]

I don't think it's a good idea for a DeFi projects to still be into stablecoin so I think your decision to avoid such projects is good.

Stablecoin requires much more than other crypto because it is not supposed to be affected by market forces, and this is going to be unsustainable in the long term because eventually market forces will break in and cause it to de-peg.

[slashz9]

maybe you can do some research first but after seeing luna and the community then luna collapses, then of course it makes people doubt and it's very difficult to tell what's good and what's not.for me personally it is difficult to determine if there really was a case like the second luna or ftx a few months ago.

[cafee_orange]

Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.

Have you analyzed the Defi project ? What can convince you is that with your own analysis and not someone else's opinion, you need to look at the roadmap of the project and how big the Stablecoin use case will be in the future. if the large use cases of the defi stablecoin project are in the future and benefit the community then in my opinion you should invest there and it is safe with your assets.

[Silberman]

maybe you can do some research first but after seeing luna and the community then luna collapses, then of course it makes people doubt and it's very difficult to tell what's good and what's not.for me personally it is difficult to determine if there really was a case like the second luna or ftx a few months ago.

It seems to me that some developers out there think that this market is always on a blank state or something and that whatever happens on the market will have no effect on them, but this is not true, stable coins are proving to be extremely vulnerable to manipulation and they are nowhere near as stable as they promote themselves, and this being the case then the trust on stable coins is slowly disappearing and if they keep collapsing it may never comeback.

[topman21]

Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.

I don't invest in coins with Defi first. Because the platform is very risky. Bitcoin, Ethereum, BNB all these platforms are very safe. We saw in 2022 that the Luna platform turned into a complete scam despite its stable coin. But all other platforms are not destroyed. For example BNB is a platform whose stable coin is BUSD. So I think DEFI is too risky for any of you to invest in. And now its popularity has waned to a great extent.

[GreatArkansas]

Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.

It really depends though. Even before Luna's stablecoins a lot of people lost their money on UST Luna. UST Luna before already got a huge market cap but still ended up losing all.
For me, a lot of DeFi projects now that is still unknown of their future, even how quality the project is, there is still a lot of possibilities to be lost, like losing a lot of funds due to hacks or bug to their codes.
Just invest what you afford to lose then just incase if anything bad will happen, you know you afford what you lost.

[Silberman]

Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.

It really depends though. Even before Luna's stablecoins a lot of people lost their money on UST Luna. UST Luna before already got a huge market cap but still ended up losing all.
For me, a lot of DeFi projects now that is still unknown of their future, even how quality the project is, there is still a lot of possibilities to be lost, like losing a lot of funds due to hacks or bug to their codes.
Just invest what you afford to lose then just incase if anything bad will happen, you know you afford what you lost.

Investors need to stop asking if an asset is safe or not, the answer is always no, investing involves taking a risk and being willing to accept that if you invest in an asset then that asset could go down in value, and if you really begin to think about it everything has a risk, as even keeping your cash under your mattress involves a risk, as you are losing the purchasing value of your money every single day by keeping your money there, and until people learn this simple fact then they should not invest on anything.

[borovichok]

maybe you can do some research first but after seeing luna and the community then luna collapses, then of course it makes people doubt and it's very difficult to tell what's good and what's not.for me personally it is difficult to determine if there really was a case like the second luna or ftx a few months ago.

The market is unpredictable because we may not have a clear understanding of what it has to offer. The difficult times we have gone through have all been experiences and lessons for us to learn from. There will always be mistakes, and they must be fixed in order to prevent repetition in the future. Although Luna was a good project and everyone has a good fate in the project, its failure shocked everyone in space, especially those who held onto their coins because they lost everything in the unexpected collapse.