The greediness in DeFi systems which are promising a new fintech world gets another hit and press the market down
Ever asked yourself why Bitcoin, Altcoins and DeFi Stables lost value the past 48 hours into a correction of about 10%. The answer is simple. DeFi is a bubble filled with scam artists.
Rug Pulls has been promised as a high-value DeFi ETh stealing scheme by tricking out uniswap. Investors blindly running in and screwing up millions of investments. As said so it was only a question of time the company has been overblown by money.
There’s a Defi dark side that no one is talking about as millions of USD worth of ethereum coins were lost to Uniswap rug pulls practices are we are reading more in the Ethereum news today.
The DeFi tokens are flooding the market as the developers are minting new coins and listing them on Uniswap every single day. While this could seem as an earning opportunity for some, the number of the so-called rug-pulls is on the rise. Investors have to be very careful and selective when it comes to the tokens that they put their money on.
How does Rug-Pulls work?
The original malicious liquidity provider will have to wait for people to swap their ETH coins for the newly minted coin after which the creators of the coin will drain the liquidity pool and will leave the holders with a worthless coin.
See there is no sun always shining in new models. And if so we will learn something interesting: Keeping the old world digital - the same shady business in fiat is coming here.
Read the full story here.