Is DEFI really Safe?

Decentralized Finance (DeFi) coins have surged in popularity, but they come with significant risks. Past events underscore these dangers.

The 2020 "rug pull" incidents, where DeFi projects collapsed, causing investors to lose millions, serve as a cautionary tale. Additionally, smart contract vulnerabilities have led to exploits, resulting in substantial losses for users.

The Yam Finance incident, where a coding error caused a loss of funds, is a prime example. Moreover, regulatory uncertainties surrounding DeFi pose legal and compliance risks, potentially leading to abrupt shutdowns or restrictions. Investors must exercise caution and conduct thorough due diligence before investing in DeFi coins to avoid falling victim to these inherent dangers.