Whenever the crypto market is on the rise there is a tendency of increase in crypto related cyber crimes, crypto scams. Investors and traders mostly lose their hard earned money to these culprits behind the scam projects.
How Does this happen?
These scammer know very well how to lure investors into their trap and they give them some time promising heaven on earth saying their project is the first of its own kind or they might say that their project is the future and is better than the rest. What they know is whenever there is a problem, solution has to be provided.
So they come as sheep in wolf skin pretending to be the saints who has the solution to the current problems, e.g a project with less transaction fees. They know very well that investors are crying over higher fees on Ethereum, Bitcoin e.t.c so they take this as an opportunity. They might also use the trick of saying we are a crypto lending platform like harvest finance, Venus, Aave and the likes and since DeFi is the major topic these days they use it as their strategy.
We have a fresh and recent scam which took place and it is being claimed that the guys behind the project dumped the project and varnished into thin air with over $32,000,000 of investors and this was the note left on their website:
They later on tweeted saying that it wasn't them and they are claiming that their website was hacked. But who knows whether its the truth or lies, the fact will still remain, "Its risky investing in these DeFi projects". Whether its new or old, some scammers might take long before they varnish, they make sure they have as many preys on the board as possible so that their loot will be huge.
Conclusion
There are other Yield Farming projects which are legit, but do not put all you trust in them remember they are not your father's sons and daughters they don't even care how you struggled to raise money so that you invest. They just care about themselves as long they become rich, So beware guys when you invest in these DeFi Lending Platforms and Yield Farming
