Vitalik Buterin criticized crypto-farming

The specialist shared his opinion with the readers of the microblog.

The co-founder of Ethereum – the second largest cryptocurrency by capitalization – Vitalik Buterin warned members of the crypto community against investing in tokens of DeFi projects. In his opinion, the active flooding of the market with the assets of such startups is similar to the inflation of the US dollars.

The specialist drew attention to the fact that such a strategy for DeFi projects has become a necessary step, which allows them to settle accounts with users – liquidity providers. Otherwise, startups will not be able to provide investors with access to large annual percentages of income.

Crypto farmers play a special role in the development of the DeFi space. Their task is to earn as much as possible by investing in the protocols of projects of the decentralized finance market. Learn more about movement from our material. According to Vitalik Buterin, against the background of the flooding of the DeFi market with project tokens, even the quantitative easing policy of the central banks appears in a more favorable light.

Vitalik Buterin also decided to hold a discussion on his microblog. He invited users who are skeptical about DeFi to talk about the most attractive project in the decentralized finance market from their point of view. The opinions of the survey participants were divided. Some called HEX, others REN and other startups.

Also, the developer decided to find out the opinion of users who consider themselves DeFi enthusiasts about the best project, in their opinion. The answers also diverged. Some users agreed with the opinion that the best DeFi protocol is Synthetix, others paid attention to Yam and Sushi.

Many members of the crypto community supported Vitalik Buterin’s skeptical attitude towards the decentralized finance market and the active flooding of the crypto space with its tokens. In particular, some users drew attention to the fact that at the moment DeFi and crypto-farming resemble an ordinary pyramid (Ponzi scheme).

Notably, Ethereum was recently accused of using an illegal scheme. According to the famous cryptographer Adam Beck, who is considered by many to be the creator of bitcoin, Vitalik Buterin’s project is like a pyramid.

Recall that earlier the co-founder of Ethereum has already criticized the decentralized finance market. In his opinion, potential investors should be wary of smart contracts presented in the DeFi space.

Be the first to comment

Leave a Reply

Your email address will not be published.