𝐏𝐑𝐎𝐓𝐄𝐂𝐓 𝐘𝐎𝐔𝐑 𝐏𝐀𝐓𝐇

About DeFi Scams: Decentralized Finance transforms the traditional method of banking and trading. DeFi platforms allow its users to stake their cryptocurrencies and earn regular interest on their holding to ensure maximum profit. Although, the concept sounds very intriguing and beneficial, there are some platforms out there who lure investors into staking their cryptocurrencies by promising heavy profits and then pocket the money for themselves.

How to protect yourself against DeFi Scams:
Before staking your coins on any platform, one should do a background check to ensure the credibility of the platform. Always check what value the platform is adding to the DeFi space or if it’s just another scam launched using a simple code (if possible, study the code in depth to analyse the platform).

Example: TRUAMPL (TMPL) token, a coin that mimics Ampleforth (AMPL). The token was recently shilled on Twitter and mentioned on CoinMarketCap in the article titled Dark Side of DeFi. CipherTrace reports that DeFi rug pulls and exit scams formed 99% of all crypto frauds in 2020. DeFi-related hacks now make up more than 60% of the total hack and theft volume in 2021, a large increase from only 25% in 2020.