There are unresolved issues in the DeFi market
Decentralized finance raises a number of questions
Not everyone sees the future of finance in DeFi
International consortium of news organizations developing transparency standards.
The market for decentralized finance (DeFi) Decentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to open, efficient and … More. While some use its opportunities to earn money, others are looking for pitfalls. BeInCrypto editorial team has collected opinions of well-known representatives of the crypto community about DeFi.
for instance, CEO of the popular crypto project with Russian roots Waves Adeksander Ivanov believes DeFi startups are like typical pyramids (Ponzi schemes). He is confident that the segment of decentralized finance, in its current form, is far from user expectations. At the same time, Alexander Ivanov suggested that in the future, truly effective tools and solutions for the transition to the financial market version 2.0 will be created..
Now #Defi is Ponzi 2.0, not #Finance 2.0. But Finance 2.0 will come anyways.
– Sasha Ivanov (@ sasha35625) September 13, 2020
Doesn’t believe in DeFi either founder of one of the oldest cryptocurrencies – Litecoin – Charlie lee. In his opinion, the decentralized finance market, as it appeared to the participants of the crypto community in 2020, does not correspond to the declared characteristics. He thinks DeFi projects are too centralized.
“Theater of Decentralization” – this is how Charlie Lee sees the modern DeFi space.
UNISTAKE in Plain English (in 2021) DeFi liquidity + staking rewards
This is why I don’t believe in DeFi. It’s the worst of both worlds. Most DeFi can be shut down by a centralized party, so it’s just decentralization theater. And yet no one can undo a hack or exploit unless we add more centralization.
So how is this better than what we have now? https://t.co/F1HMSeqb6q
– Charlie Lee [LTC] (@SatoshiLite) February 16, 2020
One of the co-founders Ethereum – cryptocurrency, on the blockchain of which most DeFi projects are built – Vitalik Buterin also did not pass by the discussion of the topic. The developer shared his attitude to the decentralized finance market during an interview for the Unchained podcast. He considers DeFi startups to be high-risk. Vitalik Buterin noted that even the most popular projects in the decentralized finance sector, in his opinion, do not look safe.
Later, Vitaly Buterin compared DeFi to the Fed’s “printing press.” The developer does not consider attempts by representatives of startups to satisfy the requests of participants in the crypto community by flooding the market with tokens as an effective approach to project management. Learn more about the attitude of the Ethereum co-founder towards the decentralized finance sector from our material.
Many popular digital asset exchanges, not wanting to miss out on the opportunity to earn commissions from operations with popular DeFi tokens, are happy to list them. At the same time, the safety of cryptocurrencies that appear on trading platforms is not always proven. As a result, the decisions of popular exchanges to list DeFi tokens caused scandals. Binance turned out to be a defendant in one of them.
In the meantime, members of the crypto community drew attention to the fact that the development cycles of many DeFi projects are very similar. The path of most tokens consists of a sharp rise, after which a period of profit-taking begins, with a slow reverse transition into a positive movement. The behavior curve of DeFi coins presented by members of the crypto community is similar to a graph that reflects the psychology of market cycles.
DeFi Token Behavior Cycles Presented by Crypto Community Members Compared to a Chart of Market Cycle Psychology Proposed by Wall Street Analysts
As a reminder, last week the DeFi market became one of the most popular joke topics in the crypto community. Find out what made traders laugh from our material.
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
CONTENT The DeFi Industry Remains the Main Joke of the Cryptocurrency Community Traders don’t give up hope for bitcoin’s rise to new heights Bulls and…
CONTENT Many members of the crypto community see investment risks in DeFi Decentralized finance market compared to bubble DeFi investor profitability…
CONTENT New Popular Project Appears in DeFi Industry BNSD Token Jumps 3000% In Less Than 24 Hours, But Correction Has Already Begun Users troll Binance…
CONTENT American presidential election years coincide with Bitcoin halvings Investors have developed a special attitude towards candidates The history of…
CONTENTS Waves.Exchage has created a new market for decentralized FOREX 6 new stablecoins are available for users, backed by the US dollar New …
Is the European Union Worth It Or Should We End It?