Hello my fellow bloggers! De-Fi is the hottest part of crypto market right now. We are in the middle of a new ICO boom like it is 2017 all over again. I want to tell an old story you’d better to keep in mind. Let’s dive in.
Source
Once upon a time, there was a distant village, located in a green valley covered by jungles. Hard-working people lived there. Agriculture was the main source of their income. One day a trader came to the village. He told locals he would pay them $10 for each monkey they can sell. There were many monkeys near the village and this was a good deal for villagers. They abandoned their farms and started hunting monkeys. After some time all monkeys that lived near the village were sold. It became harder to catch a monkey. The farms left by villagers required more and more attention to feed the village. People stopped hunting monkey and got back to farms. The trader than raised the price to $20. Villagers started hunting monkey again, abandoning their farms.
After some time, the trader left the village for few days, promising to return in a week. As monkeys were now deep in jungles, he promised to buy them for $60 upon his return. All monkeys were left in cages near the village. The traders’ secretary, who stayed in the village to watch for the monkeys suggested a new deal. He promised to sell the monkeys back to villagers for just $30 so they can sell them back to the trader for $60. Villagers agreed. They had to sell their food reserves to pay this price and took some loans. As you already understand, they have never seen the trader or his secretary again.
Investing in most of new crypto projects on ICO nowadays is like buying monkeys at $30. Too many people lost their money during ICO boom back in 2017. Don’t make the same mistake. De-Fi projects are everywhere. How many of them a legit? It’s hard to say, but definitely, more projects will become ghost chains than succeed. Even if the team is good and is working hard, it doesn’t mean this De-Fi project is safe. We hear about hackers stealing money from De-Fi protocol on weekly basis. Stay safe and protect your hard earn money.
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Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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