The Florida Office of Financial Regulation (OFR) has issued a warning about decentralized finance (DeFi), providing lending, banking and investment services
OFR warns the public that Before using any DeFi-based service, it’s important to verify it. And analyze the necessary state and understand what DeFi is to avoid falling victim to scams.
State regulators warn that the DeFi investment market is still a new market. It is highly volatile and is mostly driven by psychological factors rather than fundamentals in investing.
DeFi is one of the fastest growing sectors of the Crypto industry by value assets. 92 billion dollarsCurrently locked in protocol which is an increase of 196% from last year.
which deception , rug pull , exploit code error It is one of the biggest risks associated with using the DeFi platform.
OFR defines DeFi as an algorithmically powered financial service on the blockchain. without the involvement of traditional financial services companies.
“Before engaging a company or product in the DeFi market, you need to understand the risks of emerging blockchain technologies and markets,” OFR Commissioner Russell Weigel said in a statement.
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