Infofi ecosystem faces significant security concerns. Cysic, a protocol within the network, has reportedly executed a rug pull, leaving investors with substantial losses. This incident underscores the ongoing risks in early-stage DeFi projects where smart contract vulnerabilities, inadequate audits, and misaligned incentives can lead to catastrophic outcomes.

For traders and liquidity providers, this serves as a critical reminder: due diligence on project fundamentals, team background verification, and security audit transparency are non-negotiable. Before committing capital to emerging protocols, verify contract audits, check community sentiment, and assess tokenomics sustainability. Market participants should remain vigilant as opportunistic actors continue exploiting gaps in DeFi infrastructure.