Scammers are luring investors by promising insane APY returns through DeFi crypto projects. Sound knowledge and awareness can prevent being a victim, says Paybito Chief Raj Chowdhury.
PALO ALTO, Calif., June 11, 2022 /PRNewswire-PRWeb/ — Experienced crypto investors remain wary of projects with false assurance of unbelievable yearly returns, and rightly so. Proof-of-stake(PoS) DeFi protocols often present astronomical APY projections enticing investors into staking their native governance tokens. PayBito chief Raj Chowdhury stresses how sound investor research can prevent potential losses.
Crypto analysts acknowledge the fact that a majority of current crypto DeFi offerings exist solely to grab investor funds. The scammers may propose projects with annual percentage yields(APY) exceeding well over 1000%. Expert investors will check the yield’s source and verify its potential in terms of scalability and sustainability. Revenue sources such as the interest for trading capital borrowing are more legitimate than random token emission.
The PayBito CEO, also a noted blockchain pioneer, asserts, “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.”
Token inflation is often used to source funding for protocol reward incentives. They are mostly unsustainable and anoint investors as stakers, lenders, or liquidity providers. It is thus essential to know the…
