The DeFi market has received yet another asset named after food, this time a meme coin called HotDogSwap, which was released on September 2. The asset experienced tremendous volatility in a matter of minutes, highlighting the increasing number of unvetted tokens being released on the DeFi market.
- HotDogSwap pumped to $5000 levels in minutes, and then crashed to $0 a few hours later
- Token claims to offer an absurd return rate of 1 million percent APY
- The token has poor liquidity, and critics have called this yet another pump and dump scheme
- HotDogSwap follows other unaudited protocols, like $PASTA and $KIMCHI, both of which have seen staggering amounts of capital poured in
- While the DeFi market has proven capabilities, numerous bogus tokens have entered the market; some analysts also believe that the market is overvalued
- The DeFi market has been criticized by the likes of Binance’s Changpeng Zhao, Vitalik Buterin and Aave (LEND) co-founder and CEO Stani Kulechov
- Uniswap is warning users that anyone can create ERC-20 tokens, including fake versions of existing tokens