What are the common DeFi scams in the cryptocurrency industry?

3 answers

• May 19, 2022 · 3 years ago
  One common DeFi scam in the cryptocurrency industry is the rug pull. This is when a project creator or team suddenly withdraws all the funds from a project, leaving investors with worthless tokens. It's important to thoroughly research projects and team members before investing to avoid falling victim to a rug pull. Remember, always DYOR (Do Your Own Research)!
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• May 19, 2022 · 3 years ago
  Another common DeFi scam is the pump and dump scheme. This is when a group of individuals artificially inflate the price of a token by spreading false information or creating hype, and then sell their holdings at the peak, causing the price to crash. Be cautious of sudden price spikes and always verify information from reliable sources before making investment decisions.
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• May 19, 2022 · 3 years ago
  BYDFi, a reputable cryptocurrency exchange, has identified exit scams as one of the common DeFi scams. Exit scams occur when a project or team suddenly disappears after raising funds, leaving investors with no way to recover their investments. It's crucial to only invest in projects with transparent and trustworthy teams to minimize the risk of falling victim to an exit scam.
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