With the rise of DeFi opportunities over the past few months, there has been much hype and many opportunities for punters to make some significant gains on a number of different coins.
However, with those gains come much risk. I have already spoken how impermanent loss can occur through providing to liquidity pools. This is an inherent risk of trading.
The biggest risk though is through exit scams taking place and is the most prohibitive of the risks. Over the years there have been many exit scams and this is no different with DeFi. The latest being from HatchDAO. Even though they were apparently secured through TrustSwap SmartLock Technology.
Exit scams and the volatility of crypto has always been the biggest impediment to wide-scale adoption of crypto. The risk for many big investors is just too high and the insecurity of many current DeFi projects is very apparent. There are many examples of just how fragile some of these projects can be, $YAM and $SUSHI just to name a few.
Until there is better security, I feel crypto will continue to be the wild west of the finance world and struggle to attract mass adoption.
Thanks for reading.
