Topic: How do new projects know about this situation some years ago? - page 3. (Read 509 times)

Collateralization rate could be taken advantage by the scam team who rides this defi hype which means any team involve in a defi project can also crash their market if they intend to.Noting yet has emerge as scam but there could be one day. This hype will one day end but first it has to pump up the market to make more money out of it. Many have learned their lesson in the past I think if yo uare just cautious enough, you can liquidate before its too late.

Some Defi projects are growing very well this year.  Defi project ratings beat the popularity of the exchange project.  fundamentally a definite defi project is pretty good like chainlink.  I believe the Defi trend will last a long time.  legitimate defi projects are certainly defi projects that already have partners in the real world where their networks can already be accessed by millions of people in transactions, investments, and as a very fast payment.  The Defi project that was born during the Hype Defi now, there is a possibility that their goal is only to make money from investors. Well, there is always an impression / experience / loss caused by every trend that is currently popular.  Every investment needs analysis and research first, don't be tempted by every developing issue.

We need to be careful with the sprouting projects that are DeFi related as I am certain most of them are just riding the hype and the truth is, they just want to grab money from naive users. You will know if they are really serious with the project if they have good foundation and their plans are well laid out and they know what they are doing. I am guessing a lot of these will turn out to be disaster and many investors will be ruined if they are not too careful on these projects.

Maybe we are really in the start of a bull run isn't it? This is the trend way back in 2017, early on that year we have seen ICO's and then making a noise that lasted up to the last quarter of 2017 and pushing alt coins to it's ATH, almost all projects are successful, airdrops alone cost $100. But at the same time there are frauds and scams projects as well. There is a saying "history repeats itself", so I will be very cautious.

You already knew it, they are riding the hype and wants to make some money, defi has been making a noise and we notice new defi projects popping out of nowhere. It is like some years ago. ICO is making a noise and then bunch of ICO has been launched and ended up ruining the system cause by scammers and fraud. I hope it will not happen this time, it is not on top yet this defi hype is still minor compared to ICO hype in previous years.

Decentralized finance is a new buzzword and unfortunately, DeFi is not really decentralized. Look at MakerDAO for example, there is a thing, that should prevent disaster and this thing is called a master key. But, who decides what is the disaster and secondly, who would prevent the disaster and how? For me it seems like this guy who owns this master key can also cause a disaster. 

You should look at each project seperatelly. If someone name them defi that does not mean anything about being legit.

I'm so sure that many projects will try as much as possible to deceive investors using DeFi to create fake Hypes, the little advice I can give to those newbies who aren't that good with research is to go for old DeFi projects like Synthetix or Just

Can we justify these projects, those that were invented after these DeFi trends? After reading everything, can I assume that these DeFi projects can't real. Suppose I am interested in launching a project but now is the time DeFi trend, so my project should be DeFi related. Actually these could be valueless points.

When a new trend comes in the market, everyone wants to follow that trend. DeFi's hype has been created in the market at recent time. And using this hype, many scammers are also planning to escape with huge funds. Since it is a free market, any project can come to the market. The project team will always want to convince you to invest easily. So your biggest job here is to thoroughly verify that project and then invest.

It's like a trend, once most developers whether legit or not sees a trend that is moving with much hype they will start developing their own projects which in most cases might not have anything good to offer. The Defi hype has grow up so much that most already developed projects are now putting in a thing or two features to tap into the hype; there was a time it was all about exchanges tokens and now it is all about Defi projects, tomorrow we might meet another. Nevertheless, in this trend, the first projects to bring up the idea always tends to be the most legit ones; hence only few Defi projects are worth it while others are out to grab investors money.

It can be developed even in few days or week if everyone knows what they are doing, but the idea of the project made from the old project with slight chances which means most of them were created for money making not to bring any benefits for the investors.So as a investor just avoid getting into this Hype of DeFi FOMO if you want to save yourself from complete loss if the projects goes complete failure.

This is a free market, no one really knows if this project are legit or not. They could be running ponzi schemes like hiding in those Defi, or they are truly the next big hype around crypto. But if we are going to compare them to the boom that what ICO in 2017, there are a lot of similarities, just a boom and bust cycle. So until the next  hype comes along, Defi will be here to stay to grab investors money or could be a scam.

Well there have been amazing projects and great teams that have delivered more than what they promised, prime examples can be synthetix and ethlend both have set the trend and now these DeFi based products in high demand.
As with all type of businesses whether online or offline when there is a big trend we will have to face scammers as well so if there are 10 genuine projects do prepare yourself about 1 or 2 scam projects as well so be careful and try to analyse each project critically before investing to stay safe from scammers.

There's a lot of DeFi projects that cropped-up at the beginning of this year and are now coming to fruition. There are many more who've been around for more than a year, some even 2 years or more. This is not necessarily unusual as many crypto projects often linger for years before their initial concepts and development are ready to be deployed or pushed outwards. DeFi is not new, it's been around since the ICO boom and prior to that conceptually. What is new is renewed vigor in the ability to execute on these sophisticated projects, maturity of blockchain as a whole and a greater fundamental understanding/awareness of cryptocurrency as a whole to institutionalized investors.  

Some primary reasons you're seeing the current explosion:

1) The market was proven by Compound in an extraordinary fashion, leading many teams to expedite the release of their cryptos
2) The market is/has been demanding DeFi since it's the latest trend
3) Many team's recognized the trend and demand, therefore executing on a sale or release of their tokens to take advantage of the situation. - Essentially good timing and overall thought out
4) Coincidence that several backlogged DeFi projects all hit a critical-mass point in launching at this time
5) A lot of newer DeFi projects cropped-up over night to take advantage of the situation, with no inherent legacy or proven track record - Similar to ICO boom.
6) General consensus that we're no longer in a bear-market for crypto-currencies. No bear market means more investors, users, community members and overall awareness, boiling over to heightened awareness of such projects. The "Crypto-Winter" put many projects into a(n) deep-freeze state where they could not solidfy any funding or generate any awareness.
7) Uniswap DEX.


In essence, various of environmental factors and a proven market all correlated into an explosion of DeFi hype and excitement. There are a few external factors outside of crypto that attributed to this, but that's more speculative

No need for the new projects to determine as if this is the time for DeFi.

They are aware of it for which is the trend that we have. They are pushy if they won't be going with the DeFi and they are believing that their projects are going to do good despite that most projects lately are DeFi.

We are the same era with ico.

We are in the DeFi projects session, right? I'm very curious to know how new projects realize that this is the time for DeFi projects. One legit project can build a coin in a few days. So many projects have focused on the DeFi system. My question is, are these projects legit or is it just a plan to grab the investors' money on this DeFi hype?