Defi increase: understanding of cryptocurrencies, Rugpulled fraud and the importance of basic valuation
The world of cryptocurrency has exploded in recent years, and new and innovative projects appear every day. However, one of the trends that brought significant attention is the development of decentralized finances (DEFI), which revolutionized the way people think about investing and managing their assets.
Crypto: increase in meaning
Cryptocurrencies, such as Bitcoin and Ethereum, have gained immense popularity in recent years due to their limited supply, security and decentralization. These digital currencies operate on a decentralized book called blockchain, which records transactions without the need for intermediaries such as banks or governments. This transparency and immutability make cryptocurrencies an attractive option for investors looking for safe and efficient ways of managing their assets.
Rugpulled fraud: threat in DEFI
One of the most important challenges facing DEFI is the risk of Rugpull fraud, which requires the collapse of a cryptocurrency project due to their own false or misleading information. These frauds often go to the first people who have invested firmly in a specific project, leaving their significant losses.
Rugpulled fraud is particularly common on platforms such as Binance and Kraken, which act as decentralized exchanges (DEX). On these exchanges, users can buy, sell and trade various cryptocurrencies, including those mentioned on the Altcoin market. However, when Rugpull occurs, it is manipulated by the platform’s agreement code to cause a project failure.
Decentralized exchange (DEX): New Era in trade
Decentralized exchanges appeared as the main player in the space of cryptocurrencies, offering a number of benefits and risk. DEXS allows users to trade cryptocurrencies without the need for intermediaries such as brokers or guardians. This decentralized model enables Peer-to-Peer trade, eliminating the need for central authorities.
Dexs offers several advantages, including:
* Decentralized : decentralized exchanges work independently of traditional financial systems, enabling greater security and transparency.
* Peer-to-Peer : DEXS enables users to trade cryptocurrencies directly with each other without the need for intermediaries.
* Automatized
: Automated trade algorithms can perform real -time transactions, eliminating the need for manual intervention.
Basic valuation: the key to successful investing
When it comes to investing in DEFI or cryptocurrency projects, the basic valuation is crucial. This includes the analysis of the basic foundations of the project, such as the business model, revenue streams and potential growth prospects.
The basic valuation ensures a more detailed understanding of the project value than superficial indicators, such as market capitalization. When examining factors such as:
* Revenue : The amount of money generated by the project through its basic operations.
* User base : The number of users actively participating in the project.
* growth rate : the rate with which the project grows or develops.
Examples of successful basic valuations
Some significant examples of successful basic valuations include:
* Cardano (ADA) : Cardano has strong achievements of generating revenues via a decentralized Oracle network, which provides real -time data for various applications.
* Stellar (XLM) : Decentralized Stellar exchange and loan model based on Stablecoin generated significant revenues from the project.
Application
The DEFI world is developing rapidly, and new projects appear every day. However, it is necessary to approach investing in DEFI with caution and deep understanding of the basic valuation.