As an investor, you may have heard of or been tricked into scam DeFi projects. However, you don’t need to worry, here are the characteristics of a scam DeFi project.
Decentralized Finance (DeFi) is a new ecosystem in the blockchain and crypto ecosystem. Understandably, the price of Bitcoin and altcoins continues to rise, because it is driven by the many enthusiasts of the DeFi project.
However, in the crypto world, cases of fraud or scams are common. Naturally, because the mode of the fraudsters or scammers can enter any sector. Of course, DeFi is no exception.
In this article, we will discuss some of the characteristics of the DeFi project scam. The goal, so that you are not deceived.
1. Hacking or Hacking
Often a DeFi project does not have strong and capable security. So it is often an attack by hackers or hackers. As a result, the crypto that you invest in just disappears.
To avoid this, choose a DeFi wallet or wallet from secure DApps. Not a few DApps that provide wallets with high security.
2. Exit Scam or Escape
Exit scams are common in the world of finance or investing, not just DeFi. We often hear how fraudulent investments deceive the public. Escape millions of Rupiah to billions of Rupiah.
In DeFi, it is possible with such a mode. So, you need to look at the platform or DApps developer. So, later, your money is not taken away.
How to check it? First you need to look at profiles about the platform on the Internet and on social media. Pay close attention to whether the project can really be trusted. You have to put aside the tempting offer.
If you have already invested in a less convincing project. Immediately withdraw your money. Don’t wait until they take your money.
3. Check Team
You also need to see who their team is. Because one form of trust in crypto and DeFi projects is who the founders are and who are the teams.
Don’t invest in DApps that don’t have a team at all. If they don’t introduce the team, it’s very likely for them to be scamming.
4. Check Public Smart Contract
Every DeFi-based project comes with a smart contract. You should see if the team has published their smart contract. This allows you (or an expert) to verify its authenticity.
Now, there is a point to be made that a team will not publish their smart contract due to forked considerations where someone else might pick it up and monetize it more quickly.
However, a general rule of thumb is that it’s a good idea to only invest in projects with private smart contracts, as long as the team behind them are fully verified, reputable and reliable with a proven track record.
Well, those were the characteristics of a DeFi scam or deception on DeFi. Make sure you invest in secure DeFi DApps, like Coinomo.
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