On-chain sleuth ZachXBT is advising investors to exercise caution regarding the ongoing token sale for De.Fi 2.0 and its native DEFI token. In a recent tweet, he pointed out several issues that raise red flags about the project.
De.Fi 2.0 operates in the decentralized finance space and conducted an initial DEX offering (IDO) for its token back in February 2022. However, contributors from that sale have reportedly not received their DEFI tokens over a year and a half later, according to ZachXBT.
Meanwhile, the public sale portion of DEFI has seen its maximum raise limit increase multiple times in a non-transparent fashion.
- Originally set at $1 million, the cap has quietly moved to $1.5 million, then $2.5 million, and now $3 million.
ZachXBT warns about De.Fi. 2.0 paid advertising
There are also numerous promotional posts from influencers portraying DEFI as poised for massive 10-100X gains once it lists publicly. This appears to be enthusiastic speculation rather than objective analysis.
- The increased raise cap and delayed IDO delivery raise concerns about the team’s motives and reliability.
- Unsubstantiated predictions of meteoric gains are additional red flags.
ZachXBT therefore advises investors to carefully scrutinize the facts around DeFi 2.0 and its DEFI sale rather than relying on hype. Caution is warranted until there is more transparency and certainty from the project developers.
ZachXBT had recently uncovered the details of a scammer who was involved in $4.5 million worth over 17 SIM swaps. The on-chain sleuth also recently alerted the community to the rise in phishing email scams targeting Trezor users.
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.
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