What is Defi Coin (Defi Coin and FIL)

08/10/2023 13:16 • Blockchain Buzz • 67 views

What is Defi Coin? According to official sources, Defi Coin is a type of cryptocurrency. Defi Coin primarily serves two purposes: liquidity mining and transaction fees. In DeFi, users can deposit tokens to earn interest, obtain rewards through trading, and use it as collateral to borrow other cryptocurrencies. Decentralized finance is an permissionless digital banking model.

Defi is a smart contract used in trustless networks. This technology applies blockchain to the decentralized financial sector, making it a bridge connecting various financial markets.

Defi Coin and FIL

Editor’s note: This article is from Xiaozha Chit-chat (ID: xiaonazha88) and is authorized by Odaily Star Daily for reposting.

This morning, the market opened with a slight decline, but it rebounded again from $1 to around $3 yesterday. The decline was due to the significant rise in the prices of Defi Coin and FIL.

I have seen many friends asking why everyone is buying these things. Because I think they are too unstable! For example, I saw a friend trading Filecoin and felt it was expensive, so he bought FIL tokens. He said he wanted to sell his mining machines and mine some FIL, and he has already made a lot of money now. So I have been sharing my thoughts with everyone, and at that time, it felt good, but it didn’t have much investment value. So what should you buy? Actually, I don’t know either, but I want to mention that we are currently most concerned about the prices of DeFi and FIL. Bitcoin and Ethereum have both risen a lot in the past two years, but they are not rising as fast as they used to. Instead, they are constantly increasing, which is a big negative for investors.

The sharp decline in FIL prices has disappointed many people, and many believe it is the only cryptocurrency that can stand firm this year. So in my article, I mentioned that if we look at the current market situation, these numbers will increase more and gradually approach the level of 2017. On the other hand, this is also true for some project parties. Personally, I prefer their assets to be decentralized market makers. Therefore, they need to value their assets in order to truly enter the market. This point is crucial in my opinion. There is also another question: when people cannot determine the authenticity of a project, can they judge its authenticity? Without this information support, even if you really believe in its prospects, it is difficult to believe that it will definitely become a viable financial product or technology, otherwise it will be easily seized by other companies.

On the other hand, some projects themselves have certain flaws – the code is extremely complex and unable to be fully executed. This has caused many teams to postpone the launch of new projects in order to solve certain pain points, and ultimately they can only choose to give up the launch.

These are the reasons why so many projects have not issued coins:

1) The project itself is not transparent, and the user experience is poor.2) The project itself is not mature enough, with high liquidity and funding thresholds. So either a black swan event occurs, causing psychological damage to investors, or they simply cannot afford the risk.3) The project’s ecological construction is not particularly complete, and there is no mechanism to prevent the occurrence of project bankruptcy.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/22964.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

What is Defi Coin (Defi Coin and FIL)

Defi Coin and FIL

Related recommendations

Th…

Paxos Treasury destroyed 129756185 BUSD