Sirwin
Sirwin
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Watch Out For Crypto Scammers and Shillers Pushing Defunct DeFi Projects via Blogs

By DeFi Demon - CryptoX0 | Defi Demon | 19 May 2023


Medium is a gold mine for finding new crypto projects. 99% of these projects end up failing or being rugged within months of release. Others (Drip, Fufi, Ark) are slowly bleeding to death.

I've lost count of how many people have claimed that I could be a millionaire with only $1000. It’s not the author's fault though, they are just excited about these projects and the prospect of earning from referrals. Greed makes us do stupid things.

After all, everyone wants a little extra pocket money.

And no, this isn’t an article hating on DeFi or dApps. I am invested in many projects, I've been rugged, I invested in projects that slowly died, I’ve since changed my mind on the subject after investing and even getting scammed. I learn the hard way, but that doesn’t have to be the same for you.

Disclaimer: I am not a financial advisor. I have investments across many DeFi platforms. This article pulls my experience together, and it is not financial advice.

BNB miners, Money Printers, dApps = Money Makers $$$$

In the past I’ve written about DRIP being a scam, after receiving heaps of hate, I took the dive and invested. The first DRIP was fantastic, many others have followed. 

It’s a shame the project has such a crappy dev. It could have been a great project.

I quickly became addicted and searched for more DeFI apps. Alongside my new obsession my Medium newsfeed filled with BNB miner-type stories. I read, I digest, I invested.

These articles always told of new miners. Ones that generally offer incredible returns. They can make you rich quick. You know the saying, high risk, high reward.

Some well-established DeFi sites will offer 1%, i.e. DRIP network. Others will offer 8% per day, i.e. Oil.Club, Baked Beans V.2. 

Oil.Club was a rug pull. And I was one of the suckers that got scammed.

So if you’ve seen some DeFi names floating around and getting curious. Hold off for two minutes and learn how to avoid getting scammed.

Warnings: Red flags

Let me start by being extremely clear, do not invest in this project.

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Usually, when researching a project, you’ll look into the project’s creators, the contract, the APY, the utility, and the audit. I did these things when I discovered Oil.Club. I’d been previously writing about DRIP and therefore discovered the benefits of investing in a DeFi project. DRIP got me hooked, Oil.Club almost ruined it for me.

When I found Oil.Club I dissected the white paper, the audit, and the multiple “support” articles from legit Cryptocurrency news websites.

When researching, I found:

Oil.Club was created as a faceless project- the first red flag.

They set the APY at 8% per day- the second red flag.

The contract was healthy and full- a green flag.

It had no utility other than paying money daily — a third red flag.

But there was an “audit” completed — a green flag.

This was my main qualm, the audit; I wouldn’t have invested if this project wasn’t audited. That was my first mistake. I thought an audit made it bulletproof, or scam proof. I had read the audit, but didn’t fully understand the content. The audit made it safe for me. My second mistake.

Plus, the community was ablaze with testimonials. So I started small with an investment of 0.01 BNB. I waited a few days and withdrew my profits to make sure I could actually withdraw. Once this was confirmed, I threw more money into the well. My returns were piling up daily, and the contract was staying relatively stable. I started dreaming of what I’d do with my money. I was obsessed. I was greedy.

Weeks went by, and my returns kept piling up; I earned bonuses for consecutive days of compounding. I was so close to withdrawing my returns when it happened.

The rug was pulled from beneath me

As I do every morning, I logged online to compound my earnings from the day before when I noticed something strange. The contract was almost empty, with only 0.08 BNB remaining. This had to be a mistake; an audited project wouldn’t be a rug pull. The Telegram admins reassured the disgruntled investors everything would be fine; it was just an error.

The conversation went back and forth for almost a week. The scammers were teasing us, and they were enjoying playing innocent. They claimed the funds would be returned. They said it was a problem with the website and kept us hopeful.

Eventually got bored and left the group, leaving us investors annoyed, sad, and poor.

Now there’s no happy ending to this story. Yet you can learn from my experience. I hope you take care. It’s the wild west out here in DeFi land.

99% of the new DeFi projects, coins, websites etc., are set up to extract money from your wallet. Be careful and do your due diligence before investing. Don’t just scratch the surface. Really investigate, look for reviews, YouTube videos, check the TG group, look at the contract and proof the interactions, make sure people have withdrawn as well as invested. 

Don’t invest in projects with brand new contracts. Yes, early is better. But being first then rugged is terrible.

Dive deep into the project. Look for the ones that have survived the storm, those that have been around for a long time — those where the communities have lots of testimonials.

It’s the wild west in the crypto sphere. Plenty of people are looking to scam you. Be careful where you put your money. Some websites are trustworthy, and they are few and far between.

 

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For now I’m sticking to Elephant Money. I believe this is the most sustainable DeFi project created to date. It’s far from perfect, yes it got hacked. But, now it has come back stronger, created more products & more utility. I must admit it seems to have the best system for sustainabilty. 

 

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Time will only tell how sustainable the project truly is. Check out the white paper and the Telegram group. You won't be dissapointed.

I’ll be DCA’ing once a month and watching my tiny nest grow. I'm a small fish in a huge pond.

Join my herd and come along for the ride:   https://elephant.money/partner.html?ref=0xe5E95651B256308853d6D1fa27BAB13FA2De45ce   After following the link add my address as your partner.    0xe5E95651B256308853d6D1fa27BAB13FA2De45ce   We shall ride into the sunset together! 

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Defi Demon
Defi Demon

Defi Demon is a blog that covers all things related to decentralized finance (DeFi). DeFi has rapidly emerged as a transformative force in the world of finance, offering a wide range of decentralized financial applications and services that aim to disrupt traditional finance systems. In Defi Demon, you'll find a wealth of information on various DeFi protocols, including lending and borrowing platforms, decentralized exchanges, stablecoins, and yield farming.

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