news

bitcoin

1 X bitcoin bitcoin =

Wednesday

02 December 2020

DeFi-ing expectations: Great opportunities in crypto can come at a price

DeFi-ing expectations: Great opportunities in crypto can come at a price


smart summary beta

The DeFi space has recorded some significant milestones in 2020, as users have clamored to make use of the yields being touted by various platforms and protocols.

As this data shows, the utility and worth of DeFi platforms are clear to see by the sheer amount of value funneling into various platforms?

While the utility of DeFi platforms has been proven by the sheer amount of value flooding into the space, this has also been an area of criticism for the ecosystem.

Goel provided a more optimistic take on the yield farming phenomenon, suggesting that the positives outweigh the projects that have ended badly for some users: “Most DeFi projects are still very young, and at this stage, it is important for them to bootstrap liquidity and kickstart an aligned and engaged community.” He further added that “users are making money on these projects, but that plays a big role in helping bring initial traction for the project if they have a legit product.

Koloskov agreed that DeFi has become somewhat synonymous with yield farming, and what started as a boon for the attraction of capital to the space began to tarnish the sector due to unsavory market practices and scams: “The execution revealed itself as little more than novel names, coding and viral marketing — centered around speculative price value with little consideration for real utility value through useful technology.” Koloskov noted that this was similar to what led to the demise of initial coin offerings and that it’s slowly happening to the DeFi space:

Goel admitted that the hype around DeFi may well be short of the actual utility that is being delivered by various platforms and projects

Meanwhile, Koloskov believes that the utility of DeFi platforms means that anything can potentially be tokenized, which could disrupt the global finance sector and various industries

Goto Full Article

bitcoin bitcoin price

$19281.19

24h

Live Average

bitcoin

News Article Sentiment

positive

Score (0)

Article Metadata

author

site

cointelegraph.com
Market data feeds provided by cryptocompare.com
bitsmart 2020