Avoid DeFi Crypto Scams: Educate and Protect Crypto

  • June 13, 2022
  • Jennifer Moore
Avoid DeFi Crypto Scams: Educate and Protect Crypto

Experience and knowledge help crypto investors remain safe from projects with false assurances of massive annual returns. Sometimes DeFi projects present massive APY predictions that force them to stake the governance tokens. Blockchain pioneer Raj Chowdhury strains on how educated investor research can help to avoid potential losses.

Crypto DeFi Projects To Scam Funds From Investors

According to crypto analysts, the majority of the existing crypto DeFi offers exist for their motive to gain funds from investors.  The annual percentage yields report from scammers may recommend projects over 1000%.

The professional investors check the source of the yield and verify its capacity in terms of scaling capacity and reliability. The choice of revenue sources plays an important role as the interest for trading capital borrowing is more authentic than any random token release.

CEO Speak

The PaybitoPro CEO, Raj Chowdhury, states “DeFi economics rooted in actual revenue systems is always more reliable than tokenomics derived from deceptive means. What sounds too good to be true- rarely happens to be true.” 

For protocol reward incentives, source funding is often a result of token inflation. These are most problematic and attract lenders, liquidity providers, and stakers. It is thus important to have a proper understanding of yield reports. Usually, transaction fees are an alternative against compatibility when it comes from legitimate sources.

Blockchain pioneer Raj Chowdhury, states “Scams worth billions of dollars occur each year, deceiving crypto investors with unrealistic APY. Associated risks and loopholes are often overlooked as investors neglect the potential reality of volatile crypto, which may decrease in value over time,”. He has also previously stressed the security, balance, and active association across the crypto community.

Global Crypto Exchange Platform 

The US-based digital asset exchange platform, PaybitoPro is globally available. Moreover, the trendsetting company focuses on crypto forex technology and provides multiple trading options with the brand new blockchain technology architecture.

In recent times, PaybitoPro offered a flat 50% discount on its white label crypto exchange software, providing a golden opportunity for startups and entrepreneurs to start their new crypto exchange businesses. Thereafter, the company has worked for various countries offering different products and payment processors using blockchain technology.

In Conclusion

With time, the DeFi sector has gained recognition with various investors funding several projects that promise high returns. Therefore, it is important to understand the APY function before believing in scammers. 

Source: https://finance.yahoo.com/news/education-key-prevent-defi-crypto-070000341.html

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