Recently, there is hardly any talk related to the crypto market that does not mention decentralized finance. Rather, it has become a fashion towards which many crypto projects seek by adding some of its characteristics in their projects to take advantage of the momentum around them.

Recently, two projects in decentralized finance were subjected to a process of pumping and emptying, which led to their free fall.

The two projects we’re talking about are Hotdog and Pizza, and as these names suggest, the trend of decentralized finance projects being named after famous foods seems to be going on.

But it appears to be just a name change for the food, while the protocols are completely reproduced from previous projects.

Read:The intensification of competition between decentralized trading platforms … and the digital currency “UNI” reaches a new record

The Hotdog project is a clone of the SushiSwap project as it promises higher returns and offers a digital currency for governance.

Investors have flocked to this project in hopes of achieving similar gains as SushiSwap.

Pumping and Unloading Operations in the Decentralized Finance Market:

The “HOTDOG” coin rose to $ 6000 in a few hours, according to the charts shown on Uniswap.info.

But apparently the early adopters quickly sold out as the dump began, causing an epic dump that crashed into a dollar in an hour.

The “HOTDOG” coin collapsed within 5 minutes, from $4,000 to $1.

At the time of writing this article, the HOTDOG coin is trading at $0.017.

The scams are made possible due to the nature of Uniswap’s decentralized exchange that allows anyone to create and list any digital currency.

Once a little liquidity is provided with some of the Ethereum coins, the owners can artificially inflate the price of the coin by controlling Ethereum, and after enough gullible investors pour into the platform and deposit the liquidity, the new coins that were created in the first place to serve that purpose are dumped.

Read:US authorities seize $28 million in ransomware-related cryptocurrency

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this is Hot dog $ The thing it’s all about shows that you shouldn’t waste money on projects without researching just because immutable coins are the trend. I’m happy to trade the old fashioned way # Money .
My thoughts go to anyone who took a hit on this pic.twitter.com/C24B7OsHd1

– Simon Hayes (@Hayess5178) September 2, 2020

Pizza financing project:

Pizza Finance is the latest venture into the DeFi arena and is also a clone of the existing Uniswap protocol.

However, this project promised to provide very high returns to the liquidity providers.

But the Pizza Finance project came to a tragic end like other fraudulent projects, and the tragedy here does not fall on the project management, which is often fraudulent, but rather the victims who offer their money to watch it evaporate before their eyes.

The PIZZA coin collapsed after its price reached $370 in just two hours.

Read:Cardano adds 5% to its value and returns to seventh place, and Bitcoin is still stable above $46,000

The lesson that can be learned from the collapse of the digital currencies referred to in this article is that not every project bearing the label of decentralized finance means achieving imaginary returns, but rather caution and caution must be exercised and not to invest in new projects around which there are no reviews and have not been audited and whose codes are unknown and who is behind them .

Read also:

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