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What Raghib Khan Has To Say About Online DeFi Scams

About Online DeFi Scams

By Raghib KhanPublished 2 years ago 2 min read
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About Online DeFi Scams

DeFi is one of the fastest-growing financial management platforms that run on smart contracts, which means on a public blockchain without intermediaries like banks or insurance brokers. That kind of open access allows the user to sell or buy coins without providing personal information or creating an account.

As they offer a direct peer-to-peer exchange outside the legal and financial regulators arena, it's becoming a matter of interest for the scammers. We have prepared a guide based on our interview with Raghib Khan, Co-founder of RNF Technologies. This guide will help you know about the internet world's prevailing and popular DeFi scams.

Rug Pulls Scam

These are the most common crypto scams. In this, one or few investors take hold of the majority of the token and then start exaggerating its value by making false statements or promoting it on social platforms. This continues unless it attracts new buyers and investors so that the token can reach a specific value. Once it happens, the creator dumps all the holdings and leaves the investors with almost nothing.

So, it's not always a good idea to invest in less known or unknown projects. Sometimes investing in a reliable and known project is safer and more thoughtful. Do your research if you’re willing to take risks!

Honeypot Scam

These are the alluring scams that try to gain the attention of investors with incredible hype, colossal marketing, and heavy projections. Once the investors buy these coins, they are stuck with them until the scammers decide to sell them. Yes, then the intelligent contracts of these tokens are controlled by scammers, and they have the power to sell the holdings anytime.

This is an example of how going with the majority isn't always wise, and it's not always the case as it appears to be. So, before going with the most valuable coins, make sure you're not putting your hand in the honeypot!

Phishing Scams

Phishing scams are concerned with your usernames, passwords, or other information that can help them get into your crypto account. The most common phishing style is sending convincing emails with links that will direct you to fake websites that can collect the receiver's personal information. Sometimes, the scammers may use phony celebrity names and figure out a way to ask for personal or crypto information.

It's advisable to think more than twice when you are about to share your personal or crypto information with someone else. It's better to stop something terrible from happening than to figure out a way to deal with it.

Social Media Scams

The next time you receive an email from a crypto advisor or investor offering you how to gain more money from right crypto investments, spam is the word! Yes, fraudsters are using social media as the medium to contact and scam people. Every word they say will sound convincing and alluring to you, but not falling for it is the most brilliant move.

It's better to think in this way, if anyone is asking for money, crypto, or personal keys, then it's time to miss their offered deal.

Think Before You Agree

Investing your money is a big deal. So, make sure you do your research well before putting your money on any coin. Sometimes, it's wise to take time and decide rather than rush into something that you will regret later!

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About the Creator

Raghib Khan

Raghib Khan is the Co-Founder and Director of RNF Technologies, a leading IT services and product development company. He has also co-founded several successful companies, including Phonato Studios, FNR Technologies.

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