Co-Founder of Ethereum Vitalik Buterin Attacks the Defi Sector as ‘Flashy Stuff’

Co-Founder of Ethereum Vitalik Buterin Attacks the Defi Sector as ‘Flashy Stuff’

Vitalik Buterin, the co-founder of Ethereum, attacked the fast-growing decentralized finance (DeFi) market as a short-term upset.

Through a series of tweets, the Russian-Canadian programmer went on Twitter to share his view on DeFi. Referring to the “Productivity” DeFi slogan, Buterin shared his disapproval. In a separate tweet, he added:

“A lot of the flashy stuff is very exciting, but it’s short term; the reality is that there’s no way that DeFi will have interest rates more than a percentage point above the best of traditional finance in the long run.”

Users get high profits in the DeFi network by supplying traders with their crypto-assets for a fee. All operations with DeFi are focused on decentralized loans and mining.

Buterin regards the idea as mediocre and chaotic. Nevertheless, he cited some things he admires of the decentralized structures. They include Decentralized Autonomous Organizations (DAO) and Decentralized Primary Autonomous Coin Offering (DAICO), which he labels as “exciting and important.”

He also likened the Ethereum savings game, PoolTogether, to the lottery. While he acknowledges that “this is a very innovative psychological tool which can boost the ability of people to make savings.”

On the other hand, the DeFi community disapproves of Buterin’s criticism. The Ethereum developer, for example, stated that yield farming is like conventional venture investment.

The DeFi optimism is fine on all accounts for potential innovations.
Ethereum (ETH) as Seen in the Market
Ethereum (ETH), the second-largest digital currency by market capitalization, said goodbye to the price range of sub-$200 a couple of weeks ago after the price movement, which can be called parabolic.

However, almost all the leading cryptocurrencies on the market are currently experiencing a decline in prices, including Ethereum (ETH), but, likely, the digital currency will not fall below the support level of $200 with the current price recovery.

At the time of this report, ETH is trading at $223.95 with a downtrend of 2.36% over the past 24 hours.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.