188
PancakeSwap is used for a variety of different things. From farming, swapping, entering lotteries, you can pretty much use PancakeSwap for most of your crypto needs. It's a great DApp to utilize, and I go more in-depth about it here. This article is not about PancakeSwap though, but rather the dark side of DeFi going on within it's platform.
Decentralized finance, or DeFi, is a blockchain-based form of finance that does not rely on central financial intermediaries like brokerages, exchanges, or banks to offer traditional financial instruments. Instead, it utilizes smart contracts on blockchains, most commonly being Ethereum and Binance Smart Chain. There's always been abuse with DeFi tokens and rug-pulls, but it's became rampant amongst the crypto community. The never-ending wave of new tokens are popping up left and right promising huge returns in a short amount of time. But can you actually make money? Let's take a closer look at the dark side of DeFi and how it's damaging the crypto markets as a whole.
I am not sponsored by anyone or anything mentioned in this article.
This is not financial advice. I am not a financial advisor.
Please do your own research before making any decisions before investing.
This article is meant for educational purposes only.
10x PROFITS! LAUNCHING SOON! TO THE MOON! FILL YOUR BAGS!
Sound too good to be true? That's because it probably is and, if you threw your money into these "projects", then you're probably not going to have a good time either. If you're looking into new DeFi either on Twitter, Reddit, or Telegram, you're in for one hell of a ride. There is a vast ocean full of these "new tokens" that will "increase 100x in value" and "make you rich". Which ones do you even choose? Well, honestly, none of them... unless you want to bankrupt yourself.
I took the time last week to venture into the world of new DeFi tokens being advertised on the market (might as well be called the black market). Telegram groups are constantly being shilled with bots trying to promote whatever token they are looking to boost. You see it constantly between Telegram shill groups across the globe and even normal crypto groups as well that do not focus on shilling. They are everywhere! The promise of multiplying your value, rug-pull free, developers owning no tokens, ownership renounced, blah blah blah. It's almost like they follow a script for every single scam token out there and, most of the time, they lock their "official" Telegram groups prior to launch so no one can even speak some truth into these poor investors that are about to lose everything.
You'll be directed to a Twitter page most likely that promote the token even further. The page will have very few followers, few posts, and little-to-no engagement from any community members or the "development" team. The Twitter will then redirect you to an "official" website with elementary-grade graphic design and UI with links directing you to buy the token plastered all over it. There will be the same basic information spread out across all of these social platforms with no real information actually being presented.
Seems legit!
The main problem with these scam DeFi tokens is that they mainly promote their contract. Rug-pull safe, owner renounced, LP locked/burned, other crap. Here's the issue - these tokens are praying on new investors that have no idea what investing in crypto is all about and no idea how to read any of the contract to verify the authenticity. All they will see is the flashy false advertisements and cool chart-rising and rocket emojis and get excited.
The unsuspecting new crypto investor dives deep in the token hoping for massive returns, as everyone is promising with this new project. Sadly, the only project the "developer" is working on is scamming the community by cashing out their own tokens when the price peaks and leaving the rest of the investors with nothing. The classic rug-pull. People are already not as well-off as they were prior to the pandemic to begin with, so this hits a lot of homes hard. This is why it's always so important to do your own research on anything you invest in. Do not end up like the thousands of people every day becoming a victim to the ever-growing DeFi crypto scam market. Figure out what the contract terminology actually means if you want to play it safe and make sure the developers and owner of the token are not being malicious.
If you truly want to protect yourself from losing your investment entirely, don't invest in them. This article is not meant to instill FUD to anyone reading this, but it's always good to get this information out there. If you read this article and are experiencing FUD about your new DeFi token, then you've probably been having this FUD for awhile now and it's probably time to make the right decision, whatever that may be to you. Any investment will run the risk of a loss, but these seem to be taking over the market lately unfortunately. Be diligent, do that research, and, if you're investing, only invest in projects that you truly believe in!
Don't get caught up in the hype with these tokens. If it sounds way too good to be true and will make you rich quick, you'll probably be broke before you know it!
Have you fallen victim to a new scam DeFi token?
Let us know in the comments down below!
Thanks so much for reading!
Please feel free to follow my page for daily blog posts about crypto news, updates, and research!
Have a wonderful day!
