I have been trying to stay away from the DEFI craze machine for a while but I guess unless you stay under a rock, it's not easy to ignore all the hype around DEFI. So in this article I am going to compare the DEFI craze to the 2017 ICO craze. What I feel are very similar types of projects and all the red flags that I as a crypto newbie was unable to see back then.
So I have been reading a lot of articles about staking, pooling, providing liquidity, yield farming and many more terms that I am completely oblivious to. All these articles are generally fairly low level content from content producers that are probably bottom tiered and are either hyped themselves or been influenced to hype specific projects. Projects that generally promise untold riches, lambos, the moon and everything else in the universe. Projects that declare without an ounce of doubt that they are the pioneers in whatever problem they have found and will resolve using their native tokens. Then come the influencers on various social media platforms with large swarms of gullible crypto newbies that could be swayed to pump and dump tokens at will.
I know there are always some genuine projects that are attempting to really bank the unbanked or give people a permissionless way to bank, trade, earn, swap, lend, borrow and innovate. But the vast majority that I have noticed have uncanny similarities to the glitzy ICO websites that promise the world but probably not really deliver. Sadly there will be a lot of crypto newbies that will fall for the same tactics get rektd and call it day never to be seen again!
So people ignore the hype, unless you are a savvy trader with your ear to the ground and know exactly what you are doing, I would generally stay away from the DEFI tokens if you can't afford to lose everything that you invest.
On the other hand, like I said above if you are a savvy investor/trader and know the game, been there done that in the ICO 2017 market, then I think there are some really big gains to be made as well!
Would be interested to hear from the community especially those who have been around since or before 2017 as to what they feel about DEFI. Is it a similar sense of FOMO that the ICOs created? What do you think will happen to this DEFI market?? Let me know your thoughts on the comments. Like always all banter welcome!!
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