Despite the fact that 2020 would go down as the worst year in history, the star of the crypto show is undoubtedly Decentralized Finance [DeFi]. Unfettered by the pandemic, the DeFi space unraveled itself into a promising alternative of investment for many. However, just like in any market, with good comes the bad. After its conspicuous performance, the DeFi space was swarmed by fraudsters looking to pocket some easy money. This abject manipulation of the market has enraged many, Kraken‘s CEO is the latest to express his infuriation about the same.
“Taking Your Losses Is The Only Way To Enlightenment”
Loss is difficult to deal with, in whatever form it may come in. However, dragging everyone else with you seems like a rather distressing option. Enraged by the same, Jesse Powell, the Co-Founder and the CEO of the prominent US-based crypto exchange Kraken went ballistic on Twitter.
Powell called out fraudulent DeFi projects for seeking aid from exchanges during times of trouble. He outrightly suggested that these scammy projects were to stop self-sabotaging and then count on exchanges to bail them out. His tweet further read,
“I will not accept your attempt at externalizing the cost of your hasty, reckless rollout. Invest in audits, insurance and please DYOR. Taking your losses is the only way to enlightenment.”
Kraken hoards several DeFi tokens and even went on to onboard several new coins including Filecoin [FIL], Yearn Finance [YFI] as well as Uniswap [UNI]. However, he was adamant about following the motto where scammy DeFi projects would be illuminated following their own losses.
Regardless of the invasion of deceitful projects, the DeFi space continued to flourish. By recording a new all-time high almost every other day, the DeFi industry recently pushed beyond $12 billion for the first time.
At the time of writing, the DeFi market had stacked about $11.3 billion with Uniswap asserting its dominance by 24.16%. The decentralized exchange, Uniswap stood first in the DeFi ladder after locking $2.73 billion. Maker is no longer the face of DeFi as several other projects have evidently outshined the former over the past months.
While the DeFi industry did bring in a lot of value to the crypto-verse, scammy projects continue to put the whole industry in the wrong light. The last few months have particularly opened the gates for untold calamities in the DeFi space.