Crypto community members invest in a suspicious project, despite the warnings about a possible scam.
Crypto farmers have a new favorite – the KIMCHI project, which is the SUSHI fork. A few hours after the launch of the protocol, almost $500 thousand was blocked for its needs.
The rate of a new token peaked at $ 12.26. At the time of this writing, the cryptocurrency is trading at $ 5.61.
Members of the crypto community drew attention to the fact that KIMCHI doesn’t actually differ from other DeFi projects. The developers did not audit smart contracts – just like YAM and SUSHI. Many investors believe that a new startup has signs of a scam.
At the same time, users noted that despite the suspicious technical structure of the project at the moment, crypto farmers can really make money with it.
Against the background of interest in KIMCHI, the SUSHI protocol was again criticized: analysts found that the main developer of the project holds a significant part of the governance tokens, which are worth approximately $ 27 million.
Earlier, one of the co-founders of Ethereum, Vitalik Buterin, shared his opinion on profitable farming with members of the crypto community. The developer believes that the flooding of the market with new tokens has a lot in common with Ponzi schemes – projects are forced to issue new batches of cryptocurrency in order to pay off liquidity providers. Not so long ago, Messari analysts also spoke about their vision of what is happening in the DeFi market.
Despite criticism of DeFi projects that resonate with crypto farmers, the movement continues to grow. In particular, the amount of funds blocked for the needs of DeFi projects is increasing.
Yesterday, the DeFi market changed its leader: the Uniswap protocol was able to bypass the Maker landing service and the Aave project, which was recently licensed in the UK. The market capitalization of decentralized finance, meanwhile, exceeded $ 17.6 billion. For comparison, a couple of months ago, the figure was at the level of $ 2 billion.
We will remind, earlier the developers shared their opinion, according to which the explosive growth of DeFi could lead to a new economic bubble.