DeFi Boom Doesn’t Repeat ICO Fever – Winklevoss Opinion


DeFi (Pre 2021) Is A ‘Once In A DECADE Investment Opportunity’ | The “DEFI Dip” Is Being Bought!

DeFi Boom Doesn't Repeat ICO Fever - Winklevoss Opinion

DeFi Boom Doesn’t Repeat ICO Fever – Winklevoss Opinion

  • The DeFi boom has been compared to the 2017 ICO rush.

  • Crypto enthusiast Cameron Winklevoss contested this by defending DeFi.

  • Messari analysts write that the share of DeFi in the crypto market is still very small.

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The famous Bitcoin billionaire Cameron Winklevoss has defended the DeFi industry, saying that it is not now repeating the madness of 2017 unfolding in the ICO segment..

DeFi Boom Doesn't Repeat ICO Fever - Winklevoss Opinion

Decentralized finance segment (DeFiDecentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More) is now the hottest in the crypto industry. The idea of ​​making money by providing liquidity to the market seemed extremely attractive to investors..

However, every coin has a downside. This market turned out to be characterized not only by dizzying growth, but also by sudden collapses. Just yesterday, BeInCrypto’s editors talked about a massive double-digit drop in DeFi tokens. According to Messari expert Ryan Watkins, the average value of a DeFi asset has dropped 40 +% over the past 30 days.

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Now is not then for you

The DeFi hype is often compared to the 2017-2018 ICO rush. In addition to the madness that has gripped investors, there is another similarity between the two stories. Ethereum is in the spotlight now as then, and the ICO bubble burst, and many are predicting the same fate for DeFi..

Even the aforementioned Watkins was not without this analogy. Commenting on the current plunge in the DeFi segment, he was quite optimistic, recalling that “a bull market never moves in a straight line.” However, he cited the 2017 ICO boom as an example, when the ETH rate rolled back 20 +% seven times, but then soared to historic highs in January 2018..

The last couple weeks in DeFi have been an absolute bloodbath.

But keep in mind bull markets never go up in a straight line.

In the 2017 ICO boom ETH pulled back 20% + seven times before it peaked in January 2018.

DeFi Boom Doesn't Repeat ICO Fever - Winklevoss Opinion

So far in this bull market we’ve only experienced one.

1 /

– Ryan Watkins (@RyanWatkins_) September 22, 2020

Meanwhile, Gemini co-founder Cameron Winklevoss is even more positive. In his tweet, he chose to focus not on the similarities, but on the differences between DeFi and ICO.

“Then money was made at the expense of Shitcoins, white papers for which were invented in a hurry“ on the knee ”. DeFi, on the other hand, is an already launched and working industry. Billions of dollars invested in it work and make a profit. This is not a theoretical product, it is reality. “.

Source: Twitter

DeFi – hype or not hyip

However, institutional investors mostly continue to stay away from this segment, leaving it at the mercy of retail investors. This was the case during the ICO rush, and these analogies continue to cause concern for many..

The current hype may even give the impression that the DeFi market has grown to the size of the Bitcoin market. However, this is not the case. According to Messari, the total size of the DeFi sector is $ 6 billion. This figure does not even reach the capitalization of XRP, which is only 4th in the cryptocurrency rating. In addition, DeFi’s share of the non-Bitcoin cryptocurrency market is only 4%..

DeFi Boom Doesn't Repeat ICO Fever - Winklevoss Opinion

Source: Twitter

In other words, they summarize in Messari, despite the hype around DeFi, this segment is not large enough to shatter the entire crypto asset market..


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