I realize we've all become desensitized to numbers these days, 1 million, 1 billion even 1 trillion, doesn't seem like much anymore. Valuations for companies, token market caps, NFTs, Bonds, even collectibles and real estate are completely broken away from any sort of reality, or rather fiat can't be a trusted measuring stick.
The DEFI space is no different, it's flush with capital. DEFI has become so cash-rich that it takes close half a billion-dollar scams and hacks to make the news these days.
To illustrate my point, there were 2 hacks in the last 2 weeks that total $31 million dollars that go under-reported, no one knows, no one cares, no one blinks an eye.
DEFI chump change
$20 million is a drop in the ocean these days for DEFI but if we put it into the perspective for the average person it's a massive amount of money. Yes to some traders throwing away $10k in a DEFI project to "see what happens" is nothing, but to others and this includes probably 90% of the world, $10 000 is your life savings.
Losing it would be devastating, and since we don't know whose funds get caught up in these scams, we have to assume that there are people in that average joe and jane bracket getting their shoes taken along with the rug pull.
Inverse Finance
The hack alert went out on 2 April by a 3rd party account on Twitter lol seriously what a way to find out you have been duped, in public, so you're either being followed because its an inside job or you're trying to limit the damage once you wake up to what's going on.
You can check out the official statement here:
Ola Finance
Fuse Lending on the Ola Finance protocol suffered a hack were with the attacker pocketing an estimated $3.6 million in various assets. Reports state that it $3 million in Ethereum and $637,000 on BNB Chain.
Gnosis chain hack
Then add to that 2 weeks prior Gnosis Chain DEFI farms Hundred Finance and Agave – lost customer funds amounting to more than $11 million in flash loan attack from reentrancy bug.
Get broke quick
DEFI is primarily rug pull technology and you can't expect the average person to understand the risks they are taking, and why they are being compensated with high yields.
They won't understand how the technology works or how they are getting shafted, these yield hogs pile in thinking only of the multiples they can earn in a short space of time due to these absurd APR calculations.
And what happens to the majority of yield hogs? Those little piggies get slaughtered at the market. I truly feel for these people, I try to warn as many as I can, very few listen.
But I still put out my opinions in case it stops at least one person from losing their shirt.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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Posted Using LeoFinance Beta
Dear @chekohler, I don't know about DEFI and Fuse Lending, rug pull technology. I must first learn the concept and usage of them. However, in order to understand the concept and usage of cryptocurrency and blockchain, I felt that I had to understand those terms first.
I have to study!
Thank you for reviews!
Lol you will learn that this space is filled with more ways to lose money than to make money, that's if you are paying attention