For those who discovered the cryptocurrency universe this year, DeFi may have been the word that caught their attention the most. The main reasons for this are the media coverage of the impressive records recorded by the various DeFi protocols and the frantic speculation that has ensued. However, behind all this hype, there are several DeFi projects having emerged for the sole purpose of seeking profit by moving away from the original spirit of decentralized finance. This is basically what Kosala Hemachandra, the CEO and founder of MyEtherWallet or MEW, thinks.
DeFi: the new over-mortgaged concept in Ethereum
For me. Hemachandra, the current craze for decentralized finance is not healthy and would be borderline toxic. In an interview with Cointelegraph, the interested party will even go so far as to qualify DeFi as ” new over-mortgaged concept in Ethereum “. The media hype generated by this phenomenon was so important that it favored a sometimes thoughtless investment. ” The noise is too loud so everyone is running around trying to find the next big opportunity and then there save a ton of money without doing enough research »Declared the founder of MyEtherWallet.
Initially, decentralized finance was born in order to provide its users with a means of borrowing, lending and storing funds based on their cryptocurrency holdings. Seen like this, it must be recognized that the concept is quite different from the one that became popular this year. Indeed, by asserting itself more in the finance sector, DeFi ended up becoming the target of speculators. The latter thus began by placing their funds there. seeking the best profit with token price speculation. Although he recognizes the merits of decentralized finance, Mr. Hemachandra cannot help but regret this state of affairs. This is all the more worrying as the successful earners among these investors have also helped to amplify this movement.
The main cause of the problem, the price of Ethereum gas
From the first hours of glory of DeFi on Ethereum (ETH), many voices were thus raised for complaining about the increase in transaction fees. These have continued to explode in recent weeks, sometimes costing between $ 40 and $ 80 per transaction to users. A situation that makes Mr. Hemachandra than the hype around DeFi is “the main cause of the Ethereum gas price problem right now “. However, he believes that the positive could be drawn from this situation. He explained that this pressure is likely to stimulate the growth of Ethereum in particular by speeding up the search for sustainable solutions on the network.
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This release from the founder of MyEtherWallet should delight DeFi critics who are impatient to see the bubble burst around the sector. However, Mr. Hemachandra’s statements are much more in line with a spirit of consolidation within the various existing protocols.