The so-called DeFi protocol called Yfdexf.Finance, which was promoted on Twitter and Telegram for just two days, was closed with about $ 20 million it collected from investors.
The popularity of the DeFi domain has also whetted the appetite of fraudsters. The current DeFi boom is often compared to the ICO boom seen in 2017 and 2018. There is a similarity between the two periods in terms of fake projects and the resurgence of exit fraud.
The last example on the subject is the disappearance of the founders of Defi liquidity mining pool Yfdexf.Finance with an investor fund of approximately $ 20 million… The platform introduced its project on Twitter and Telegram for only two days and disappeared by collecting a very serious amount. This has shown to everyone how easily projects without any seriousness and approval can raise money.
All social media accounts and sites have been deleted
All social media accounts, websites and blogs related to the project were deleted. The rewards for any of the promotions advertised were also not distributed to their owners. In 2018, the ICO period had come to an end and investors had serious fund losses. Just like then, people seem ready to distribute their money to decentralized finance without researching projects, and a new wave of investors is ahead of us.
One of the possible side effects in such situations is that serious and legitimate ICO projects struggle to recover even after years, that DeFi projects may also happen.
DeFi is fine but has time
Decentralized finance is undoubtedly a well thought-out industry that will begin to bear fruit someday, but no investor who doesn’t want to take risks at the moment would think to put money here.
He left bitcoin behind
On the other hand, with the use of DeFi applications more than ever, the use of Ethereum, where the vast majority of these applications are installed, also broke new records.
According to the report released yesterday by blockchain network analysis company CoinMetrics, the 7-day average transfer value of Ethereum reached $ 3 billion 80 million and surpassed Bitcoin’s $ 3 billion 10 million. Much of this growth comes from investors engaged in yield farming through Defi protocols such as yEarn (YFI) and Aave (LEND).
It is not the first time that Ethereum’s weekly usage value increase has experienced a serious increase. A similar jump was also experienced in the ICO boom in 2017, as will be remembered. As it was then, interest in Ethereum’s tokens based on the ERC-20 protocol began to fuel this rally. The only difference from that period is that there are DeFi tokens around, but the result is the same …