Dangers of DeFi Hype Surface Following One-Hour Crypto Scam

Tony "The Bull" Severino

4 years ago

2 mins read

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The DeFi craze may finally be getting out of control. The crypto community has been in support of the thriving trend, even welcoming to experimentation and accepting of outright worthless tokens. But now that the trend is turning toward scams, it may be time to more closely consider the potential pitfalls of DeFi.

A new scam popped up recently, and within one hour pulled the rug on investors and made off with funds. The situation highlights exactly why this pause in crypto market profits was needed and put an end to so many crypto investors being blinded into potential scams by greed.

DeFi Crypto Trends Turns Dangerous, Scam Pulls The Rug On Project One Hour Later

Greed is a nasty emotion, and one of the “seven deadly sins” and “capital vices.” This vice can even cost you capital if left unchecked, as several crypto investors learned the hard way.

The cryptocurrency market recently hit a level of extreme greed, according to an index designed to monitor market sentiment. The greed comes on the back of substantial gains from assets like Chainlink, a slew of decentralized finance-focused altcoins, Ethereum, and Bitcoin.

Few categories in crypto have been as hot as DeFi, to the point where new projects were being created out of thin air – much like the ICO boom – with no real use case or merit. It didn’t matter. Crypto insiders were willing to inject liquidity and experiment with worthless tokens. And they were rewarded handsomely for doing so.

It’s led to a whole new wave of tokens being made, and in the midst of it all, scams are appearing.

https://twitter.com/sniko_/status/1296233154836127746?s=21

According to one crypto community member who witnessed the hour-long event unfold live, a new scam popped up, and less than 60 minutes later pulled the project and website, running off with investors funds.

The liquidity pool Uniswap has been one of the biggest benefactors of the DeFi craze. It prompted Tron founder Justin Sun to hop on the bandwagon with a JustSwap pool of his own.

But over in the Ethereum-based waters, the liquidy pool was used to launch a project dubbed Unimoon. Investors rushed to swap Ethereum and other ERC20 tokens for UMF coins.

An hour later, a website created for the project was pulled, and so was the rug. A potential 37 addresses were created and possibly burned in the hour-long scam.

Unfortunately, this is just one of many scams crypto investors must be aware of and avoid. Here is NewsBTC’s list of the top crypto-based scams and how to protect yourself from them.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

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In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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