Part 1: Crypto DeFi Scams!

It's a fact checked that the popularity of DeFi sector in the last 2years is frankly unquestionable. Infact there are uncountable numbers of new projects which entered crypto news headlines, but unfortunately, there are a lot of registered DeFi scams floating around the crypto market as well.

I think this is norms, when a sector become popular, more foul players start to get attracted to it. This is a general thing especially when looking at it from the angle of finance.

Are you saying you are veteran in the industry or new trader in the crypto space, nobody is above mistakes. How do we minimize chances of making this mistake or entering into the hands of this DeFi scams project is highly important.

Let's dive into the business!

Firstly, what's Crypto Scam?

A DeFi scams is not a new thing and not a surprise, but again, we have different types of Crypto Scams. The believe is, if one can discover how to spot crypto scams, one can avoid them successfully.

So, Crypto scam is simply happen when a thief (scammer) persuade you to do their bidding. E.g. They can make you to install some sort of program which can be a coin, exchange App, Wallet, even Auto-trader bot and many more which may not related to Crypto/blockchain.

Case Study There was a record of a man who was intelligently scammed when transfer was made to his friend. A set to transfer some Ethereum token (ETH). He copied his friend's wallet address and transaction was made, everything from his side was perfect until his friend said, the fiat has not been received. Investigation began and the output revealed that, he has fall for a great clever scam.

What! He has unknowingly downloaded a DeFi scan virus to this computer. This virus generates wallet address that has same beginning and end as the original receiver wallet address. **If this man glance through the wallet before transfer, he won't discover the switch because this is one of the more-advance malware act in the space at the moment.

Note: Avoiding Crypto scam begins with your mindfulness of links you click, the website you visited, and watch out for files you download.

Research is one of key note many crypto enthusiasts do talk about when comes to selection of projects to interact with, but how do one keep tract on every new projects. This required a full-time commitment!

This day, scammers have advance in their dealings by promising huge APYs, risk-free investment, automated trading bots and many more....

It is important to note, should someone invites you to a secret chat or exclusive telegram group to provide best trading signal, be careful by blocking them immediately.

Note: Don't bargain with scammer

Liquidity Pull, The Most Common DeFi Scams

We have records of different Liquidity pull/Rug Pull. This is a very simple way developer dump all their token and drain the Liquidity for the utility token of such project, which thereby crash the token price and end up at the zero level.

Do you remember Squid Game!

It's actually easy to create token, even if you are not tech-savvy, you can pay a developer and within few hours, your token is ready. This singular act creates a lot of space for scammers to penetrate and do their dirty work.

Another point! The position of market at the moment can turn a project to scam. Many of us we say, throw your fiat to any asset, it will appreciate in a long-run. This is 100% wrong!

I will stop here, watch out for part 2, where I will reveal, the rules of thumb to follow to reduce the potential of becoming a victim of crypto space.

Watch out!

Disclaimer: I'm not a financial advisor, see this article as an educational material, do your own research.

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