"i am going to retire in 5 years. have you heard of prove-your-steaks? its gonna change crypto. you can get 20% back, just lock up your starving kids Earned Income Tax Credit for a year, and you'll make $500!"
"have you heard of this new shitcoin? probably not - i know you retired from crypto! haha...anyway, it exposes you to upside leveraged of @PISSCOIN and is tethered to the stable-genius coin. its basically free Unisex-swapped tokens."
"hey. some guy on discord was helping me install a chrome plugin to manage my coins and now my $400 in life savings is gone...are you still good with computers?"
"Turns out my pension fund was investing in BBB- CDOs, now they've gone BBBust"
The argument that you can't (or don't) get burned in non-crypto markets is made in bad faith.
Pension funds don't deserve to go bust, but shouldn't be bailed out if they fail to diversify their portfolio.
There are a lot more safe-gaurds in investing, because all these games have been played before.
But those require consent too - with crypto, someone can, and will, irrevocably steal your funds without possible recourse.
> Rug pulls have emerged as the go-to scam of the DeFi ecosystem, accounting for 37% of all cryptocurrency scam revenue in 2021
So 37% of $7.7 billion is $2.849 billion.
> All in all, rug pulls took in more than $2.8 billion worth of cryptocurrency from victims in 2021.
> It’s important to remember that not all rug pulls start as DeFi projects. In fact, the biggest rug pull of the year centered on Thodex... In all, users lost over $2 billion worth of cryptocurrency, which represents nearly 90% of all value stolen in rug pulls. However, all the other rug pulls in 2021 began as DeFi projects.
The graph shows $2.6 billion was lost with Thodex. So that leaves $0.249 billion that was lost in projects that were rug pulls that began as DeFi projects.
[1] https://www.treasurydirect.gov/indiv/products/prod_ibonds_gl...
https://www.cnbc.com/2021/12/10/consumer-price-index-novembe...
Even now they’re rationalizing - US banks offer 0% interest and took $12B in overdraft! See how much worse that is? Well except the $12B is out of $18T in assets so DeFi hacks cost 1400X as much per user.
In fact 10% of all TVL in DeFi was stolen this year. That means if you’re not making a 7% return for inflation and a 10% return for risk loss, you’re losing money in real risk adjusted dollar terms invested in DeFi. 17% APR in DeFi is equal to 0% in real dollar terms.