DeFi projects or not, any of which can be scammed despite how authentic they serve to be if a any projects does not register and well known can run a scam people using Defi or CeFi.
NFTs, Metaverse, Web3 and many more, how do you know if any projects building and presenting these qualities would scam people? Yes it true, they will try their best to bringing all brightness of the project and go viral list in tie 5 or 4 exchanger but only targeting for dip. I have had about many projects that came with lot of qualities which went down and never came up again and that was just the ends.
In such project we can call it scammed so it can be presented in many ways.
My intake about newly launched projects is; after buying at preliminary stage wait for listing maybe they had plan list in 2 exchange or more after completing the listing you can quickly take your profit and exit from the project.
Topic: Defi is not dead, this is only the beginning (Read 83 times)
My dear, it will be tougher for DeFi projects to progress starting from now on, the new crypto law is out and it's not going easy on any decentralised platforms or even defi projects, the law says all crypto projects must register their team members and CEO in the U.S, how will DEX and DeFi projects maintain their decentralisation from now on? Even if they don't comply investors won't trust them anymore and move their funds to registered crypto projects.
The cryptolaw is not yet a law hehehe. It is only a proposed bill that would need to pass 2 legislative bodies for discussion and a voting process for approval before it can go to the president's desk to be signed into law or veto. Also, if this passes into law, it will only make Defi development move out of America. It will never stop Defi. It is also those types of laws that makes Defi much more needed.
The growth of Defi is only beginning and it might be possible that it can be the more dominant type of method for buying and selling coins and tokens for trading speculation. A growing number of users are presently using Defi more than CEX.
Over the past five years, decentralized exchanges (DEXs) have emerged as a self-custodial, programmatic way for cryptocurrency investors to trade. DEXs allow users to swap between hundreds of trading pairs without an intermediary. And fifteen months ago, these DEXs first eclipsed centralized exchanges (CEXs) in on-chain transaction volume.
While most CEX transactions happen off-chain on centralized databases and captured on their order books to save on transaction fees, every DEX transaction occurs via smart contracts on-chain. For this reason, as well as the rapid growth of DeFi generally, DEXs now have a confident lead in on-chain transaction volume. From April 2021 to April 2022, $175 billion was sent on-chain to CEXs, well below the $224 billion sent to DEXs.
Source https://blog.chainalysis.com/reports/defi-dexs-web3/
My dear, it will be tougher for DeFi projects to progress starting from now on, the new crypto law is out and it's not going easy on any decentralised platforms or even defi projects, the law says all crypto projects must register their team members and CEO in the U.S, how will DEX and DeFi projects maintain their decentralisation from now on? Even if they don't comply investors won't trust them anymore and move their funds to registered crypto projects.
There are many people who are starting to speculate or have already declared that Defi is dying or it is only a useless medium for transferring scam tokens.
I am quite aware if the limitations and the bad implementations of Defi which make those projects a target for hackers and being used for rugpulls as published in this website.
https://rekt.news/leaderboard/
However, in my opinion these are only part of the difficulties in creating the future of the cryptospace and developing the infrastructure for cryptonative assets.
Presently, everything in Defi is created around speculation and yield farming. But this will not be forever, I reckon. In the future, Defi will be built around protocols on privacy, stablecoins, NFTs, gaming and many others.
To give an example, a token holder can deposit his tokens in a lending protocol similar to Vesta and borrow some stablecoins, covert them to ETH and buy Axies and join play to earn to generate revenue.
I am quite aware if the limitations and the bad implementations of Defi which make those projects a target for hackers and being used for rugpulls as published in this website.
https://rekt.news/leaderboard/
However, in my opinion these are only part of the difficulties in creating the future of the cryptospace and developing the infrastructure for cryptonative assets.
Presently, everything in Defi is created around speculation and yield farming. But this will not be forever, I reckon. In the future, Defi will be built around protocols on privacy, stablecoins, NFTs, gaming and many others.
To give an example, a token holder can deposit his tokens in a lending protocol similar to Vesta and borrow some stablecoins, covert them to ETH and buy Axies and join play to earn to generate revenue.
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