When investigating whether a new cryptocurrency is a scam or not, we need to look at a few different factors. But even when all these factors check out as valid, we always need to be cautious about what we invest our money into. The same goes for when a project doesn't pass a certain factor. It doesn't necessarily mean that it's a scam.
We'll be looking at some aspects of the Goose Finance's Yield Farming project to conclude whether this is a scam or not.
Goose Finance has no public mention of the team members, but this is actually normal in Decentralized exchanges. Uniswap, you must have heard of it, it's only the biggest crypto exchange in the world, has no public mention of the team as well.
Goose Finance has a unique burning mechanism that, expectedly, will increase the token price constantly. Almost every staking and farming option have a deposit fee. The team will use that deposit fee to buy back tokens. They confirm this very frequently on their Twitter, where they show proof of these buy-back transactions.
Goose Finance already had two very successful audits by Certik and Hacken. This is always an excellent sign since a team of experts analyzes their code to look for potential malicious code. The team has also removed a rug pull migrator code that was inherited from Pancakeswap. Many Pancakeswap copies use this code to rug pull investors. Be very careful with these new copy-paste Yield farming projects. You'll most likely lose all your money quickly. Fortunately, that does not seem to be the case with Goose Finance.
The only Partnership we found was with Autofarm. They made the Autofarm token available on some farming and staking options, and Autofarm started supporting Goose Finance on their website, which can be very helpful for those of you who forget to keep compounding your earnings.
We have analyzed what's been happening with the new Layered farming option. Goose Finance is luring everyone to lock up and burn their EGG to earn the new layer tokens with crazy APR's like 15,000%. Initially, these layered tokens (GG1, GG2, and so on) are worth values from 300$ to 500$, and this will make you think that you'll earn a lot of money, but after a few days, these tokens decrease to values under 10$, which means you didn't earn any money at all, in fact, you probably lost some.
Is Goose Finance a Scam?
Goose Finance is a scam *, and you should stay away from Layered staking and farming.
You can make a great investment if you Buy EGG low enough, and don't use it on layered farming, since EGG shoots up to double it's value almost every week. For a swing trade you can make some money, but don't even consider it as a long-term investment. Goose Finance won't stay around for long.
* Like we mentioned before, these factors are not enough to say with all confidence that Goose Finance is or isn't a scam. Any cryptocurrency can dump on you, especially on low market cap coins like EGG. Make sure you never invest more than you are willing to lose.