Lately, #Defi has been the new exciting thing in the crypto space.
With that new movement comes a great number of projects and others that honestly makes me a bit skeptical.
A great example of such projects is FARM or Harvest Finance that promises great gains and saw a massive adoption and money poured into it without too many questions asked.
At the beginning of this week (26 October 2020), this just happened...
So... that is not just very interesting but also strange.
— That kind of gut feeling that tells you there is something more in here and you end up scratching your head trying to understand what to do with this information.
Should you continue to pour money into the project and collect a lot of gains or... get out while you still have time and some money?
To answer that it's important to start from the beginning.
What is Harvest Finance (FARM) after all?
Harvest Finance is a DeFi yield aggregator similar to yEarn Finance. It finds automatically the best yield for yield farming and like others, it also has its governance token called FARM. Is important to underline that all these yield projects are all still highly experimental.
In the specific case of Harvest Finance if you hold their FARM token you also receive cashflow from the platform's revenue. This revenue is currently set at 30% of profit. With all these great offers people were very excited to start gaining these profits.
FARM is a very recent project that at one point more precisely when it launched it was over $4,000.00 and after that, the token is going down and now on the last weeks are trading on average around $230.
Everyone should know by now that such projects that promise a lot of gains are big red flags especially if they have an anonymous team.
Many people pointed out the problem from the beginning such us independent DeFi researcher, Chris Blec
Harvest Finance has one admin key for making changes to the smart contract. Essentially, the owner of this key can perform a variety of changes, from strategies to orchestrating a rug pull.
Harvest Finance went to Twitter to confirm that they didn't have anything to do with the attack and even offer a bounty of $100,00 to catch the hacker. Also, they posted to the supposedly 'hacker' a message saying it would be nice of them to return the stolen funds to the community.
What do you think happened next?
How can such nice 'hackers' exist? or do they like the Harvest Finance project so much that they had a big heart for the community?
It didn't took too long on Twitter for more people to find strange this episode.
I am not a financial adviser and will not tell you how to manage your funds. But at least you are updated on the latest if you are currently on the Harvest Finance.
Be part of crypto projects but always be extra careful and do your own research before putting your money into it.
The more value people see in this crypto world the more scams and shady projects will appear promising you amazing gains and profits.