A warm welcome to another Let’s Simplify Things! post!
Today let us have a look at the DeFi space and try to simplify if you should invest in it or not!
The DeFi space is for the past few months the new “trendy”, must know about it and invest in it space.
And yes, it has rightfully earned this title because of the huge returns people have had and continue to have.
Does it make sense to give such high returns?
Up to a point yes it does.
But definitely what it does not, are the crazy returns it keeps continuously giving.
It certainly looks like a bubble about to burst in my humble opinion!
On top of that, as expected with any space that attracts these amounts of investment and interest, you see a big number of projects popping out like mushrooms trying to capture a slice of the pie.
A few of them are serious, a lot are not and some are simply scams!
And when the non-serious will start to be noticed ( and of course the scams coming to light )and start their journey to value 0, they will for certain also have a negative effect to the serious ones!
And do expect to see a lot of scams coming to light soon!
I’m certain that a lot of people are buying in these projects, knowing about the quality issues but choose to do so either because of fear of missing out or because they are willing to take the risk and try to get out before… and excuse me for the language! The shit hit the fan!
You also notice that some of the very successful ones in terms of return have connections to the market makers such as Coinbase or Binance.
For example, UMA where Coinbase Ventures is one of their investors.
I’m sure they are having a party in Coinbase with an at least 20X return so far ( probably much more ).
To be clear nothing against UMA or Coinbase!
We all know the effect a listing to one of those two exchanges has to the price of a coin.
And don’t get me wrong, if I was Coinbase, I would also try to maximise my profits and why not monetise this effect I have managed to build.
Nothing wrong in my opinion, as first they don’t hide the investments they have made and secondly, they are not a Non-Profit Organisation.
It is also a bit more complicated space compared to straightforward cryptocurrencies and their related projects.
Thus, making it easier for scams to appear.
That said I have to also say there are plenty of very interesting projects out there that do offer a solution to a genuine problem or offer a great service and etc., that do deserve to have great returns!
Great returns yes but not crazy returns!
To simplify it, all I’m trying to say is be very careful as there are multiple things that personally I don’t like!
From the market being controlled by a few big players such as BINANCE and Coinbase, to the complexity of those projects, to the space being an attraction to scammers, to the overflow of investment towards the space and the bubble effect this helps to be created very fast, to say a few.
Can you make a great profit from investing in the space?
You can definitely still make great or even crazy profits no questioned asked there!
But does it worth the risk?
Is the risk/value index good enough for you?
And can you spot the good projects from the bad ones?
These questions you will have to answer!
Finally before saying goodbye I want to let everyone know that I have no sponsors, this post is not sponsored by Coinbase or any other website.
You will only find my personal referral link, that I highly appreciate if you use to access Coinbase!
The above reflect my personal views and by no means should be taken as a recommendation to make or not make any investment, use or not use any service or equipment whatsoever!
Please feel free to make any suggestions or comments!
Especially on what you would like to see next being simplified!
Until the next post....
Thank you all from the bottom of my heart!
Coinbase referral link: https://www.coinbase.com/join/tzoann_q
Ps: By using my referral link you will also get 10USD! Thank you!
Ps2: Have a look at my post on Coinbase and how you can make more than 100 USD for free here
