Popular crypto figure Changpeng Zhao (CZ) reminded users and investors on the Binance exchange platform about the risks involved in DeFi and other crypto investment opportunities aftermath of the Squid Game Token scam.
“Because these scams are becoming more commonplace as the DeFi space grows, I’d like to take this opportunity to remind users that DeFi is not without its risks, and we hate to see anyone lose their funds due to scams and other cybercrimes,” Zhao said in an article published on Binance.
The Binance CEO lamented the failure of investors to yield the warnings regarding the Squid Game Token, which later turned out to be a fraudulent scheme.
“Despite the warning signs, speculators continued to buy the token, pushing prices up exponentially before the project founders drained the liquidity pool in minutes, taking off with investors’ funds in the process,” CZ said.
Furthermore, Changpeng Zhao emphasized the most common acronym (DYOR) tossed around within the crypto space, as he charged users to conduct due diligence before investing in crypto.
“DYOR, or do your own research, is a concept I think every investor should know about. It’s as close to a golden rule as anything in the world of crypto, but it applies more even broadly to anything you’re planning to invest in, from Bitcoin and bonds to stablecoins and stocks.”