The Currency Analytics
By Ayobami Abiola
The Trends
DeFi Market and the Vicious Cycle
The Story of Jhon
Decentralized Finance is here to stay, it has been a booming market since the beginning of the year. The Total Locked Value in DeFi protocols is now at a surprising 10.
1983 to 1985 which is known as the Video Game Crash of 1983 happened because a lot of low-quality video games saturated the market to the extent that households lost interest.
Fast forward 2017, Initial Coin Offerings came to life with more than 2000 offerings to attract investors.
ICO transformed into Initial Exchange Offerings (IEO) in 2019 as trusted exchanges started assisting start-ups to collect funds but with a fee.
Can you begin to see a trend in all of these?
DeFis are here promising a lot of goodies to investors. At the heart of many great DeFi protocols is a genuine mission to give to people what banks are not giving them.
“So I’m up to 63 review #crypto projects. Next up - http://Poo.Finance... I give up. #DeFi”
Many of the DeFis that are springing up recently are only copies of the smart contracts of great ones that we all know and appreciate.
Alex Manuskin (@amanusk_) warned investors on twitter not to approve infinite tokens for any random smart contract.
“If you are not yet convinced that you should NOT be approving infinite tokens to some random smart contract/Dapp, here’s a story of how Jhon Doe lost $140K worth of UNI in their…
He stated that Jhon only wanted to be the first beneficiary of a new fancy DeFi protocol. He made the mistake of approving that the smart contract should be able to withdraw an…
“What Jhon doesn’t know, is that once you approved the contract to use ∞ tokens, the contract can take their tokens at any time.