Next one will be NFT scams. The ground for scammers is open as long as money is pouring in.
First they inflate volumes which is a common tactic in DeFi and also in some ICO that were creating fake presales. The same happened at a time with NFT and the result in all was a huge scam. I hope that at least with NFT when the interest appears it will not create same havoc as it did in ICO and DeFi.
Topic: ICO scams vs DeFi scams (Read 883 times)
Majority of people only came to know defi vary recently - including me, and the defi hype only became very high within a very short period compare to ico that last for few years, in this case, I think the ico scam was more severe than the defi, during the ico period many people where ignorant of a lot of things.
defi had shocked crypto with a fairly sharp move and a lot of tokens that were quite large, but on the way it finally came back like with others be it ICO, IEO.many re-growing fraudulent projects and it seems inevitable, to always exist in every new system.
If you want to compare, it is clear that ICO is still the best until now because it can last a long time and many people are lucky from the ICO project, even though in the end it is the same.
Defi is still considered new and there is a possibility that there will be improvements if there is the right intention to make changes.
Majority of people only came to know defi vary recently - including me, and the defi hype only became very high within a very short period compare to ico that last for few years, in this case, I think the ico scam was more severe than the defi, during the ico period many people where ignorant of a lot of things.
Most ICO projects are centralized projects and they still scam investors and now DeFi is fully decentralized but they are very easy to hack, Its very hard to believe that hackers are involved here, there is nothing to clear the fact that teams might be hacking their own platforms themselves too just to exit scam conveniently, I don't trust any new DeFi projects again, it's same with ICO scams
From the start I saw Defi was just Fomo for a moment and in the end there would be a scam project that would emerge, I am not surprised because since a long time ago the cryptocurrency trend was formed with Fomo, ICO is an example of the first Fomo trend and just like ICO there will be many investors who are disappointed with Defi. The fact that the Defi projects are decentralized means that the scam risk is high but that does not mean that we can not spot them and avoid getting tricked by them but its same with ico's and conventional investment methods you have to check where you are investing and to get rid of this problem every team project must pass kyc so the community will know who they are dealing with.
defi is the same as ico because both are decentralized but conventional investments can be non crypto or they can be and they can decentralize or centralized .there are pointers that we can go thru if we want a more succesful investment but if we still fail maybe we are destined for it but theres always more than second chances . like i mention earlier defi is decentralized thats why the kyc that you think as a solution wont fit here and kyc can infact be used as an advantage by wrong people .
Most ICO projects are centralized projects and they still scam investors and now DeFi is fully decentralized but they are very easy to hack, Its very hard to believe that hackers are involved here, there is nothing to clear the fact that teams might be hacking their own platforms themselves too just to exit scam conveniently, I don't trust any new DeFi projects again, it's same with ICO scams
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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
since the introduction of YFI, YFII and many more hackers have been using this medium to easily scammer people with DeFi project since those are the project that really did well though there are many DeFi project. all we have to do is to be very careful about any upcoming DeFi project as they have been using this period to fraud.
The fact that the Defi projects are decentralized means that the scam risk is high but that does not mean that we can not spot them and avoid getting tricked by them but its same with ico's and conventional investment methods you have to check where you are investing and to get rid of this problem every team project must pass kyc so the community will know who they are dealing with.
defi is the same as ico because both are decentralized but conventional investments can be non crypto or they can be and they can decentralize or centralized .there are pointers that we can go thru if we want a more succesful investment but if we still fail maybe we are destined for it but theres always more than second chances . like i mention earlier defi is decentralized thats why the kyc that you think as a solution wont fit here and kyc can infact be used as an advantage by wrong people .
The fact that the Defi projects are decentralized means that the scam risk is high but that does not mean that we can not spot them and avoid getting tricked by them but its same with ico's and conventional investment methods you have to check where you are investing and to get rid of this problem every team project must pass kyc so the community will know who they are dealing with.
In my opinion, there is not much difference between the negative processes of scams and everyone tends to keep all the resources acquired throughout the collection. The only difference is the marketing process and the technological process. So there is a pattern that can be observed with great promises and annual extension of a simple project.
We must keep an eye on and despise projects with these characteristics.
We must keep an eye on and despise projects with these characteristics.
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
Its not that easier to hack but rather anonymous devs or scammers do really make use of this thing since its totally involving decentralization unlike on ICO's where some of devs can really
sued out due for they have known.Not completely but at least have the chance.Comparing out security then i can say that theres no much difference between the two.
IEO is much better among those kind of sales or trends in the market where it did really lessen out the chances of scam in minimal manner
since we know that sales do happen internally on an exchange but this is only good for those exchange which are known and legitimate and the rest are
just jumping with the trend.
There are some people who say that Defi is not a scam, yes it is true,
because Defi is just a category or feature of a project, DEFI and DEX become a good mix in the project, and grow the cryptocurrency market,
but ICO, ICO is just making a market just like bubbles.
because Defi is just a category or feature of a project, DEFI and DEX become a good mix in the project, and grow the cryptocurrency market,
but ICO, ICO is just making a market just like bubbles.
Scam projects are sure to remain because they always have loopholes and opportunities. People are too eager to make quick profits and they resort to investing in hype projects without thinking about the risks.
Nowadays not only investment scams like ICO, but many DeFi projects are also hacking user wallets. Many airdrop hunters are victims of this.
Nowadays not only investment scams like ICO, but many DeFi projects are also hacking user wallets. Many airdrop hunters are victims of this.
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
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
For every circle of life, the boom and bust cycle, you'll always find scammers, they are part of the society, they would never be in short supply, in fact they are here to stay. It's the responsibility of investors to check the authenticity of any project they are investing in but greed won't allow many to see things for what they really are. A simple research would save quite a number. It's pretty basic thing for me, check the project before aping in.
Earnbet isn't your typical type of DeFi but years of my research shows it's one of those few projects that could stand the test of time same with the Oropocket protocol, in fact I find their saving features quite handy to use. If investors take their time, they won't be caught in rug pulls and scams. It's that simple.
currently the scamers are focused on the Defi program, there have been many cases of fraud on the Defi project and of course this will continue. I think scamers are all around us so be careful in making decisions whether it's joining the bounty program or investing in Defi. always consider and do thorough research.
The reason why scammers are focusing on Defi programs because it is trending at this moment. People's attention are into Defi project since YFI had been successful and lots of investors profited from the market surge of YFI project. Though honestly, there is no difference between the two since if an investor meets either of these scams, investors will definitely lose their money.
currently the scamers are focused on the Defi program, there have been many cases of fraud on the Defi project and of course this will continue. I think scamers are all around us so be careful in making decisions whether it's joining the bounty program or investing in Defi. always consider and do thorough research.
Defi is not a complete scam like ico. The concept of defi project is very good but many defi name scam project market is coming. Example, sushi project. ico and ieo run at $10 but there is no price in the market at $2. In fact, defi projects trade on a hype. So it is not right to hold defi project for long time.
There is no difference between scam ICO and scam DeFi projects, probably still the same old scammers at work here, very possible, the work of scammers is to find something new that has enough FOMO and hype and use that to their own advantages, I knew that DeFi will see lots of scam once it started becoming successful few months ago, if another new hype begins tomorrow expect scammers to invade it
looks like an old scammer who created a scam definition. This is a classic thing where the scam system is the same as ICO where there is a scam after the public sale and there is also no update on social media groups or from the team. So this is an old problem that is repeating itself 
There is no difference between scam ICO and scam DeFi projects, probably still the same old scammers at work here, very possible, the work of scammers is to find something new that has enough FOMO and hype and use that to their own advantages, I knew that DeFi will see lots of scam once it started becoming successful few months ago, if another new hype begins tomorrow expect scammers to invade it
Totally agree, ICO scams and DeFi scams are almost the same, they are just take advantages of the greed of human nature, besides, i think IEOs are not less scammer, maybe it is still these people, but IEO was started by the exchange, when we invest in we just need to buy big exchanges' IEO, it is easy to distinguish. 
That's definitely the case because scammers have been starting to take advantage of the phases of ICO, IEO, and now Defi, they always somehow have managed to scammed people by using such events bubble where people had to get easily caught up.
this time people are being even smarter than before and less scam defi appeared in the market.
We must always DYOR. Never try to deal with the suspicious defi.
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