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Defi Scams – Most Common Scams in the DeFi Space

Published

3 years ago

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In the world of Defi, scams are unfortunately all too common. This article looks at popular Defi scams, how they operate, and how to protect yourself.

We’ll also provide tips on what to do if somebody scammed you and how to report a scammer. Finally, we’ll discuss the implications of DeFi scamming and present examples of successful prosecutions.

What Are DeFi Scams, and How Do They Work? 

Decentralized Finance (DeFi) is a term that has gained enormous popularity over the years. DeFi is the shift from centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain.

DeFi promises a more equal and accessible financial system, but it’s still largely unregulated. Lack of regulation has made DeFi a haven for fraudsters, who have plundered millions from unwary consumers.

We can summarize a typical scam in three steps:

  1. The scammer creates a fake project or impersonates an existing one.
  2. The scammer promotes the fake project or impersonates the existing one to generate interest and attract users.
  3. The scammer exits the scam, leaving users with worthless tokens or no access to their funds.

The Most Common Types of DeFi Scams 

There are many types of scams in the DeFi sector, but some are more common than others. Let us look into a few of this industry’s most frequent criminal schemes.

Phishing scams

DeFi is not immune to phishing scams. Due to the intricacy of several DeFi protocols, fraudsters have managed to successful target newcomers. 

The most common type of phishing scam in the DeFi space is impersonation. This is when a scammer creates a fake website or social media account that looks identical to a legitimate one. 

They will then use this fake account to try and trick users into sending them money or personal information. Another common type of DeFi scam is the Ponzi scheme. Instead of investing the money, the fraudster pays out previous investors. 

This scam is widespread in the DeFi space, as there are often high returns from investing in new protocols.

Scams Involving Fake or Stolen Identities

One of the most common scams in the Defi space is identity theft. Someone uses your personal information to register a new account or access an existing one. 

They may also use your information to apply for credit cards or loans or to make purchases in your name.

Another way that identity theft can occur is when someone steals your private key or recovery phrase. This gives them access to your accounts and allows them to make changes or send funds without your permission.

Pump and Dump Schemes

If you are not new to the field of financial investments, then you must have probably heard about pump-and-dump schemes. 

A group conspires to acquire a cryptocurrency at the same moment to drive up its price. Afterward, it sells it when at the peak price after promising a group of traders that this would not happen.

Pumpers make a profit, whereas dumpers lose. Sadly, it’s as simple as that. Pump and dump schemes are not new and have been around for quite some time. They are so common that the U.S. Securities and Exchange Commission has issued an investor alert about them.

Forgery and Counterfeiting of Digital Assets

Unfortunately, not every project in the DeFi world is legitimate and original. Forgery and counterfeiting are rampant, with scammers selling digital assets that don’t exist or aim to look like something else.

This scam generally happens when someone creates a website or social media account that looks identical to a legitimate project. However, the page has slight changes that allow the scammer to redirect funds to their wallet. 

For example, a scam on Twitter happened when someone created a fake version of the popular Defi project Uniswap. The account looked identical to the official one, except that it had one letter changed in the URL. 

This small change allowed the scammer to siphon over $150,000 worth of Ether (ETH) from unsuspecting users.

Fraudulent Activities Associated with Initial Coin Offerings (ICOs) 

Last but not least, ICOs tend to have an association with fraudulent activities. In an ICO, a company offers digital tokens for investors’ fiat currency or cryptocurrency. However, many ICOs are scams, with companies using the funds raised to enrich themselves instead of developing the project.

A severe fraud associated with ICOs is when the team behind the project absconds with the funds. This type of fraud is, technically, an “exit scam.” 

In an exit scam, the team often creates a fake project website and whitepaper, promising huge returns to investors. They will then raise money from unsuspecting investors and make off the cash, leaving investors high and dry.

How to Protect Yourself from DeFi Scams 

At this point, you will probably be wondering how you can protect yourself from falling into one of these scams. Below are a few tips.

  1. Do your research: This is the most important thing you can do. When you are looking at a project, make sure to read up on it as much as possible. Look at the team’s backgrounds and the project’s roadmap, and try to find as much information as possible.
  2. Don’t invest more than you can afford to lose: This general rule applies to all investments, but it is essential in the DeFi space. These projects are still very new, and there is a lot of uncertainty surrounding them. As such, you should only invest an amount you are comfortable losing.
  3. Beware of social media scams: Social media is a great way to stay up-to-date on all the latest news in the crypto world. However, it is also an excellent way for scammers to reach many people. Be careful about the links you click on and the information you trust.
  4. Look for projects with KYC and audit certifications: If a project has undergone a KYC (know-your-customer) or audit process, it passed a vetting procedure. This adds an extra security layer and gives you peace of mind. SolidProof, PeckShield, Hacken, and Solidity Finance are popular companies taking care of this aspect.

What to Do If Somebody Scammed You

If you think someone scammed you, there are a few things you can do:

  1. First, try to resolve the issue with the person or company you believe scammed you. This may be difficult, but it’s always worth a shot.
  2. Contact your local consumer protection agency if you can’t resolve the issue.
  3. You can also file a complaint with the Federal Trade Commission (FTC) or the Better Business Bureau (BBB).
  4. Finally, you can contact a lawyer to discuss your legal options.

How to Report a DeFi Scam 

If you think you’ve been the victim of a DeFi scam, consider taking a few actions to report the criminals.

First, report it to the project team or protocol developers if possible. They may help you recover your lost funds or take action to prevent others from being scammed in the future.

You can also report the scam to a crypto exchange or wallet provider. Obviously, this is applicable if you used any of these channels to access the DeFi project. Many of them have fraud departments that can help you get your money back or prevent future scams.

Finally, you can report the scam to law enforcement. This is often a long shot, but it’s worth doing if you’ve lost a significant amount of money.

The Consequences of DeFi Scamming 

Besides losing your money, scamming in the DeFi sector has several adverse effects on the industry. For instance, it undermines the trust in decentralized finance protocols and gives scammers free marketing.

When a user falls into a scam, it’s not only the investor who loses money. The whole DeFi industry is negatively affected by it. 

Scammed users will likely be more cautious in the future, leading to a decrease in trust in decentralized finance protocols. Using popular DeFi protocols and services, they can reach a larger audience and scam more people. In addition, it gives scammers free marketing. 

Examples of Successful DeFi Scam Prosecutions 

In recent years, there have been several successful DeFi scam prosecutions. Here are some notable examples:

In 2019, the US Securities and Exchange Commission (SEC) charged a company called EtherDelta with operating an unregistered securities exchange. The Ethereum blockchain-based decentralized exchange EtherDelta enables users to swap ETH and ERC20 tokens.

The SEC alleged that EtherDelta’s founder had illegally profited from the exchange by operating it as an unregistered broker-dealer. Coburn agreed to pay $300,000 in penalties and disgorge nearly $13 million in ill-gotten gains.

In 2020, the CFTC accused My Big Coin Pay, Inc. of running a fraudulent virtual currency operation.

My Big Coin Pay promised investors they could use virtual currency to buy and sell goods and services. However, the CFTC alleged that the company used investor funds to pay for personal expenses, including travel and luxury goods.

The CFTC ordered My Big Coin Pay to pay $6 million and disgorge nearly $360,000 in ill-gotten gains.

These are just a few examples of the many successful DeFi scam prosecutions that have taken place in recent years. These cases show that law enforcement is taking action against DeFi scams. If you have been a victim of a DeFi scam, you should contact a lawyer to discuss your legal options.

The Importance of Verifying Senders and Receivers Before Transferring Funds 

One last thing you should consider before transferring funds is verifying both the sender’s and receiver’s addresses. Too many people have fallen victim to scams because they didn’t confirm the address before sending funds. 

If you’re not sure how to verify an address, here are a few tips: 

  • Check if the address is valid on Ethereum’s leading network. You can do this by pasting the address into a block explorer like EtherScan. 
  • Make sure the address has a balance. If it doesn’t, that could be a sign that it’s not a valid address. 
  • If you’re sending funds to an exchange, check if the exchange has a page on EtherScan. If it does, compare the addresses to make sure they match. 

These are just a few of the many ways you can verify an address. By taking these extra steps, you can help protect yourself from scams.

Bottom Line – Protecting Yourself from DeFi Scams Takes Education and Awareness

The best way to protect yourself from DeFi scams is to educate yourself and stay aware of the latest scams. Understanding how these scams work can help protect yourself and your hard-earned money.

Contact a lawyer to discuss your options if you think you may have been a victim of a DeFi scam. There were case

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Best Crypto For 2025: A Closer Look at Web3 ai, Cosmos, Chainlink, & Avalanche

Published

2 days ago

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June 25, 2025

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The crypto space is constantly evolving, and choosing where to invest can feel like navigating a maze. But when you’re looking ahead to the best crypto for 2025, a few projects are already turning heads with their tech, purpose, and staying power.

In this article, we highlight four standout cryptocurrencies: Web3 ai, Cosmos, Chainlink, and Avalanche. These aren’t just speculative plays. They’re platforms offering real utility, innovative features, and long-term potential. Whether you’re a newcomer or a seasoned trader, these are worth a closer look. Let’s see why they’re gaining attention as the best crypto for 2025.

1. Web3 ai: Using AI to Make Smarter Crypto Moves

Web3 ai is changing the way people approach crypto investing. It’s built around advanced AI tools that aim to make trading simpler and more effective. With real-time insights, portfolio tracking, and smart risk analysis, Web3 ai gives users an edge in a fast-moving market. The platform combines machine learning and natural language processing to help users act faster and with more confidence.

At the heart of it all is the $WAI token presale. It powers access to premium tools, allows staking, and gives holders a say in platform governance. Right now, $WAI is available at $0.000443 in Stage 9 of its presale, with the next price increase set for $0.000465. So far, $8.5 million has been raised.

What makes Web3 ai even more appealing is how easily it integrates with major wallets, DEXs, and multiple blockchains. For investors eyeing the best crypto for 2025, this is one project that combines accessibility with real functionality, making it a strong pick for the long term.

2. Chainlink: The Bridge Between Blockchain & Real-World Data

If you’ve been around crypto long enough, you’ve probably heard of Chainlink. It’s known for providing secure data feeds to smart contracts, which basically means it connects blockchains to real-world information. This is essential for DeFi applications, insurance protocols, and any project that relies on live data like pricing or weather conditions.

Right now, LINK is trading at $12.82. Despite some market fluctuations, the project keeps moving forward. New partnerships and integrations continue to expand Chainlink’s role in the growing DeFi ecosystem. Some experts expect LINK to reach $23.46 by 2026.

Chainlink remains a cornerstone for smart contract development. If you’re building a portfolio around the best crypto for 2025, LINK makes a strong case for inclusion.

3. Cosmos: Making Blockchains Talk to Each Other

Cosmos (ATOM) has been quietly solving a big problem in crypto: interoperability. In simple terms, Cosmos makes it easier for different blockchains to communicate and work together. That’s a huge deal in a landscape filled with siloed networks. Thanks to its design, Cosmos has become a critical player for developers building decentralized apps that need to operate across multiple ecosystems.

At the time of writing, Cosmos is trading at around $3.97. While the price dipped recently, long-term forecasts remain optimistic. Analysts see the token potentially climbing to $6.95 by 2026. ATOM holders also play an active role in network governance, helping shape the future of the protocol.

If cross-chain compatibility continues to rise in importance, Cosmos is well-positioned to meet that demand. It’s definitely one to watch if you’re thinking about the best crypto for 2025.

4. Avalanche: Built for Speed & Efficiency

Avalanche, or AVAX, has quickly gained recognition for its high-speed transactions and scalable infrastructure. Unlike many networks that slow down as activity increases, Avalanche is built to handle thousands of transactions per second. That efficiency makes it attractive to developers building dApps and financial platforms.

Currently priced at $18.34, AVAX has held steady with some expected market swings. But the real story is in its adoption. Avalanche is being used for everything from DeFi platforms to enterprise blockchain solutions. Analysts forecast the price could reach $22.29 by the end of 2025 and possibly hit $36.06 by 2026.

With fast finality, low fees, and a growing ecosystem, Avalanche stands out as one of the best crypto for 2025, especially for investors looking for performance and reliability.

Which Projects Deserve a Spot in Your Portfolio?

When looking at the best crypto for 2025, it’s smart to focus on fundamentals and real use cases. Web3 ai, Cosmos, Chainlink, and Avalanche each bring something unique to the table, from AI automation and cross-chain communication to real-world data delivery and lightning-fast transactions.

These aren’t just hyped coins, they’re foundational projects supporting the future of blockchain. Whether you’re drawn to Web3 ai’s AI engine, Cosmos’ interoperability, Chainlink’s oracles, or Avalanche’s performance, these picks have the potential to play a big role in the next wave of crypto growth.

If you’re building a well-rounded portfolio, keeping an eye on these four could pay off in the long run. They’ve got the tech, the teams, and the traction, and that’s exactly what makes them contenders for the best crypto for 2025.

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Unstaked Secures Over $10.5M in Presale Funding! Ethereum Holds Uncertainty & Chainlink Eyes Breakout

Published

3 days ago

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June 24, 2025

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Crypto watchers eyeing Ethereum and Chainlink are spotting clear market signals, but they may be missing what’s truly ahead. Ethereum sits near the $2,900 mark as $3.5 billion worth of options near expiry, with rising volatility and unclear direction. While some suggest possible buy zones, price movement depends on how traders respond in the short term.

In contrast, Chainlink has caught attention by breaking out of a bullish pennant pattern, with some projecting it could reach $35 if buying strength continues. However, both remain vulnerable to broader market trends and trader speculation.

Unstaked is making waves not through noise, but real development. Now in Stage 21 of its presale, $UNSD is priced at $0.011739 with more than $10.5 million raised and over 1.2 billion coins sold. It’s setting up the backend of a utility-driven platform that may redefine how Web3 tools operate. Those looking for new crypto coins in 2025 with real substance may find Unstaked to be a game-changer.

Ethereum Braces for $3.5 Billion Expiry: Will It Move Big?

A major options expiry looms over Ethereum as over 1.5 million ETH, valued at around $3.5 billion, is set to close. How the price reacts will depend on trading shifts around this expiry.

The coin has hovered around $2,900, and experts suggest volatility could increase. Some view the $2,800 zone as a critical support if prices pull back. Despite price swings, Ethereum continues to show healthy on-chain activity and draws attention from institutions. It remains a focus for traders expecting short-term momentum.

Chainlink Builds Momentum: Can It Reach $35?

Chainlink (LINK) recently moved past its long-term downtrend, creating bullish sentiment. Trading near $17.50, it formed a higher low that points to increasing strength. With steady buying and improved sentiment in the crypto space, LINK may aim for the $35 zone if this trend holds.

Support has stayed firm around $15.60, boosting technical confidence. Growing traction in Chainlink’s oracle services and renewed engagement from large holders has also stirred interest. If momentum keeps up, Chainlink might outperform in the near term.

Unstaked Presale Grows Bigger with Rising Demand for AI Tools

Momentum is building around Unstaked, and delaying action may result in missed chances. The presale crypto 2025 has reached Stage 21, pricing $UNSD at just $0.011739. So far, over $10.5 million has been collected, and more than 1.2 billion coins have been sold. This isn’t about hype, it’s about providing the framework for decentralized automation in Web3.

After the presale ends and the platform goes live, all core features like AI agents, campaign tools, and customer automation systems will rely on $UNSD for operation. This ties usage directly to demand, making it a practical asset, not just a concept. Businesses will be turning to AI agents for tasks currently handled by staff, reducing costs while boosting speed.

As usage increases, so will pressure on the limited supply of $UNSD. And since each stage brings a price hike, current buyers have the best entry point now. This is the final phase before launch, momentum, and marketing start. If you’re looking for a crypto with actual features, strong use cases, and clear growth potential, Unstaked fits that profile. Timing is key, and early access puts holders well ahead of the crowd when listings and platform demand begin.

Summing Up!

Short-term market behavior will largely shape Ethereum’s next move, especially with the options expiry causing uncertainty. Chainlink’s recent technical setup is solid, with an upward path toward $35 if the momentum holds. Yet, both rely heavily on external market factors.

Unstaked offers something more concrete. Its AI-powered tools are already built and will go live following the presale. Every company that uses these tools must utilize $UNSD, ensuring actual use leads to rising demand.

Currently priced at $0.011739 in Stage 21, and with a planned launch price of $0.1819, the project may offer a return as high as 2,700%. That growth isn’t driven by excitement alone; it stems from direct usage and practical design.

Among the various new crypto coins emerging for 2025, Unstaked stands apart due to its measurable real-world application. Those still watching Ethereum or analyzing Chainlink’s breakout might want to consider what’s actually being built and move before attention shifts.

Join Unstaked Now:

Presale: https://presale.unstaked.com/

Website: https://unstaked.com/

Telegram: https://t.me/UnstakedTokenOfficial

X: https://x.com/unstaked_token

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Unstaked Dominates 2025 Crypto Buzz With $1M Giveaway, As Pi Struggles and Solana Climbs

Published

4 days ago

on

June 23, 2025

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As the crypto market enters mid-year momentum, the gap between rising and falling projects is widening. Solana (SOL) is making strong moves toward a potential $300 billion market cap, backed by positive technical signals and institutional interest. On the other hand, Pi Network faces ongoing price declines with little sign of recovery. Meanwhile, Unstaked (UNSD), a new AI-powered project, is grabbing attention.

It offers a unique Proof of Intelligence framework and gamified governance model. Adding to its growing buzz is a $1 million giveaway that is rapidly building a vibrant community. With sentiment shifting, Unstaked (UNSD) is becoming one of the most exciting crypto coins to watch in 2025. Its AI agents will go live once the presale ends and the project officially launches.

Solana Eyes $300B Market Cap Target

Solana (SOL) is regaining strong technical momentum after what experts call a “clean liquidity sweep” on the weekly chart, where price dipped below prior lows before sharply bouncing, a classic bullish signal. Now hovering above a key demand zone, SOL is positioned to retest its previous highs, with analysts eyeing the significant $300 psychological mark as the next target. 

Beyond technicals, Solana’s lightning-fast transaction speeds, thriving developer ecosystem, and expanding presence in decentralised applications continue to attract buyer confidence. While short-term traders pursue quick profits, long-term buyers remain focused on the broader market structure. Amid Bitcoin’s ongoing volatility, Solana emerges as a leading bullish contender for 2025.

Pi Network Nears Critical Support Zones

While Solana advances, Pi Network continues to struggle, marking its sixth consecutive day of losses. Currently trading at $0.61, down from $0.66 earlier this week, PI is nearing critical support levels at $0.58 and $0.54. The technical outlook remains bleak, with an oversold RSI at 19.59 and a deep Williams %R of -94.213, both reflecting intense selling pressure. 

Additional indicators, including the MACD and ADX, confirm the ongoing bearish trend, with 10, 50, and 100-day moving averages pointing to further downside. Pi’s delayed mainnet rollout is eroding buyer confidence, and without a clear catalyst, further declines are likely before any meaningful recovery occurs.

Unstaked’s $1M Giveaway Attracts Massive Buyer Interest

In contrast to Pi’s troubles, Unstaked is gaining strong momentum as one of the best crypto presales of 2025. Built on a unique Proof of Intelligence framework, Unstaked brings AI into its governance and protocol design. Rather than relying on fixed code, the platform adapts and evolves based on community input and real-time data. This decentralised AI system powers three standout features: intelligent governance, real-time network optimisation, and a highly participatory development cycle. The project also has no private allocations, ensuring fairness for all public buyers.

As of now, Unstaked has raised over $10.4 million in presale funds, with more than 1.1 billion coins sold. The current coin price is $0.011739 in Stage 21. The listing target is $0.1819, offering early buyers a potential 27x return. What’s driving even more buzz is Unstaked’s $1 million giveaway. Twenty winners will each receive $50,000 in $UNSD tokens. To join, participants simply complete small tasks, invite friends, share on social media, and buy at least $100. 

The giveaway runs for five months, perfectly timed with the project’s growth and launch. Unstaked’s AI agents will officially go live after the presale ends and the project launches. With new wallets growing daily, high visibility across platforms, and praise from analysts calling it a “smart sleeper,” Unstaked is quickly becoming one of 2025’s most talked-about crypto coins.

Wrap Up! 

The gap between top-performing crypto projects and those losing relevance has never been clearer. Solana (SOL), with its strong technical setup and growing institutional backing, is firmly securing its position as a leading Layer 1 blockchain. Meanwhile, Pi Network remains weighed down by stalled development and persistent bearish trends.

The real breakout of 2025, however, could be Unstaked. Built on an AI-first Proof of Intelligence model, Unstaked is redefining what a presale can deliver. With over $10.4 million raised, no private allocations, and an exciting $1 million community giveaway, Unstaked is gaining momentum. Its clear roadmap and AI-powered growth make it a standout in today’s innovation-driven market.

Join Unstaked Now:

Presale: https://presale.unstaked.com/

Website: https://unstaked.com/

Telegram: https://t.me/UnstakedTokenOfficial

X: https://x.com/unstaked_

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