Quote from: ZZ8ZZ on Today at 02:13:02 PM

Quote from: Simakura on October 25, 2020, 11:10:44 AM

What do you think of defi projects, most of them are only good for the short term.To make a big profit, we must enter at the right moment, if we are wrong we will lose very deeply.

That's the state of the crypto world right now, people create projects hoping to make an easy buck out of gullible people and then they abandon the project.

Exactly! One challenge with any DeFi projects is always the risk of liquidation. So if the project team for instance gets a high allocation of coins prior to launching a craze of quick pump and dump can happen very quickly. The team dumps all its coins and abandons the project.

That's the 'hype and dump' cycle that was born from DeFi.

While this risk is minimized, unfortunately, there are loop-wholes people can exploit like through the smart contract code and so sometime even good projects can go through a period of dump with long recovery.

Leaving this aside, there are a multitude of hype and dump DeFi out there and we must learnt to know how to avoid these trap coins.