A new shady DeFi coin named HotDog has lost more than 99.99% of its value after boasting unreal returns in its initial pledge. The coin promised more than 1 million new APY coin returns to be public dropped from $5,000 in the start to just $0.032 within a few hours from the launch. Much of the blame of the price tank is being put at the scam-like nature of the coin and it being just another rip-off of the successful Uniswap project.
Anticipation Around New Coins
Normally, when a new coin is launched in the cryptosphere there is a lot of anticipation around the project and the price index is likely to show positive results despite facing a turbulent future. Different projects like EOS, Ethereum and even smaller ones like KAVA have rode to new heights because of the initial attention and FOMO (Fear Of Missing Out). However, HotDog couldn’t sustain a successful initial launch and tanked out in spectacular fashion.
Here is how a Twitter user named Lowstrife showcased this insane move in the crypto market:
$4000 to $1 in 5 minutes.
ok can you guys stop trading pic.twitter.com/cZRTBfyJj3
— lowstrife (@lowstrife) September 2, 2020
The BitConnect Connection
People were also quick to point out that the cryptocurrency followed the price movement of the infamous mega crypto scam BitConnect. Here is how trader Edward Mora put it:
Man, I swear this state of the market is worse than Bitconnect. These just happened today, dozens more examples out there over the last month pic.twitter.com/tG9Yl0RhZT
— Edward Morra (@edwardmorra_btc) September 2, 2020
Introspection into the DeFi Craze
The move follows the latest craze around a sector that the cryptocurrency industry is currently focusing on. Following Uniswap’s success, dozens other clones have mushroomed around its existence including projects like Kimchi, Sushi and others. None of them however have been successful in proving their worth or holding their worth as well as Uniswap has. The new tokens are themselves being listed on Uniswap as there is no requirement for listing a coin there in the first place.
Hotdog in particular was a disaster waiting to happen because of its scam footprint and of its poor attempt at creating a project. One must look to benefit from the DeFi craze but in a sensible, responsible manner. Scams like Hotdog may continue to happen and that is why crypto users and investors need to be very careful around their investments.
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