Education is Key to Prevent DeFi Crypto Scams Promising High APY: Raj Chowdhury
Scammers are luring investors by promising insane APY returns through DeFi crypto projects. Sound knowledge and awareness can prevent being a victim, says Paybito Chief Raj Chowdhury.
PALO ALTO, Calif., June 11, 2022 /PRNewswire-PRWeb/ — Experienced crypto investors remain wary of projects with false assurance of unbelievable yearly returns, and rightly so. Proof-of-stake(PoS) DeFi protocols often present astronomical APY projections enticing investors into staking their native governance tokens. PayBito chief Raj Chowdhury stresses how sound investor research can prevent potential losses.
Crypto analysts acknowledge the fact that a majority of current crypto DeFi offerings exist solely to grab investor funds. The scammers may propose projects with annual percentage yields(APY) exceeding well over 1000%. Expert investors will check the yield’s source and verify its potential in terms of scalability and sustainability. Revenue sources such as the interest for trading capital borrowing are more legitimate than random token emission.
The PayBito CEO, also a noted blockchain pioneer, asserts, “DeFi economics rooted in actual revenue systems is always more reliable than tokenomics derived from deceptive means. What sounds too good to be true- rarely happens to be true.”
Token inflation is often used to source funding for protocol reward incentives. They are mostly unsustainable and anoint investors as stakers, lenders, or liquidity providers. It is thus essential to know the point of the yield’s emanation. Legitimate sources may include transaction fees as a substitute for computability. It may also offer to replace liquidity with trading fees.
“Scams worth billions of dollars occur each year, deceiving crypto investors with unrealistic APY. Associated risks and loopholes are often overlooked as investors neglect the potential reality of volatile crypto, which may decrease in value over time,” mentioned Chowdhury, who has previously spoken on the importance of prioritizing security, balance, and active association across crypto ventures.
The Chowdhury-led PayBito is a US-based digital assets exchange with worldwide operations. A frontrunner in integrated crypto-forex technology, the exchange features multiple trading options with cutting-edge blockchain architecture, security, and regular updates. PayBito recently announced discounts on all its white label crypto exchange solutions offering a chance for institutional investors to venture into crypto trading services. The company has made contributions across the global crypto landscape, offering its services across the USA, UAE, UK, Canada, and more.
The rapid growth of the crypto DeFi sector gained mainstream recognition with several investors placing their wealth across projects promising high annual returns. Validating the yield source is an absolute must to prevent making bad investments in potential crypto scams.
- About Raj Chowdhury:
Raj Chowdhury is the Managing Director of HashCash Consultants and Paybito. Raj pioneered the first interbank Trade Finance and Remittance implementation of Blockchain Technology between two of the largest global banks. Raj is an eminent voice in the Blockchain and Cryptocurrency space and actively engages with policymakers in this area. He is a contributor to Economic Times, Business World, CNNMoney and advises industry leaders in the adoption of Blockchain. He is a member of Asha Silicon Valley, a nonprofit committed to education for children in emerging countries. Author of the book ‘The Dark Secret of the Silicon Valley’, Raj is an investor in blockchain and cryptocurrency companies and an active member of the philanthropic community.
COLEEN F, Hashcash Digest, +14159662907, [email protected]
SOURCE Raj Chowdhury
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