"Leek-cutting" in DeFi projects, where developers or insiders manipulate markets or exit scams to profit at investors' expense, severely erodes trust in the ecosystem. Such actions, like rug pulls or pump-and-dump schemes, lead to financial losses and skepticism toward legitimate projects. Investors become wary, reducing participation and liquidity, which stifles innovation and growth. High-profile cases amplify negative perceptions, deterring new entrants and mainstream adoption. Transparent governance, audited smart contracts, and regulatory oversight can mitigate these risks, rebuilding confidence. However, repeated incidents without accountability perpetuate a cycle of distrust, hindering DeFi’s potential as a decentralized financial alternative.