The DeFi space is seeing more scams as another protocol, Yfdexf.Finance, exited with $20 million. Following the exit, all of its social media accounts were deleted.
According to a Zycrypto report, Yfdexf conducted an advertising campaign across different platforms including Twitter and Telegram. During the two-day advertisement, the new liquidity mining pool promised giveaways to Twitter users for retweets and hashtags.
Yfdexf’s official website, Medium story, as well as Twitter and Telegram accounts have been deleted, following the exit. All these platforms were used to lure investors to leverage their money. Despite the increasing number of scam exits, many responded and invested their funds in the new yield farming protocol.
Some financial advisers have sent out warnings to caution investors against these fraudulent platforms.
On the 9th of September, China’s SlowMist Technology released a warning that an EOS DeFi mining project Emerald Mine (EMD) is “suspected to run.” According to the warning, the project has moved users’ locked tokens to an account labeled “sji111111111.” The transferred assets include 780,000 USDT, 490,000 EOS, and more. In total, the assets are worth nearly $2.5 million.
SlowMist further warned investors to stop sending funds to EMD. In addition, the general public have been advised to only invest in audited projects.
Despite recent scams, the DeFi space has been increasing massively in 2020. Earlier this year, Cointelegraph reported that Uniswap became the first decentralized exchange (DEX) to exceed $1 billion in daily volume.
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