Max Keizer is one of the most famous faces in the crypto universe and known as Bitcoin maximalist. Accordingly, he is critical of alternative currencies. He is also far from convinced of the current hype about projects in the area of decentralized finance and compares this with one of the largest Ponzi schemes of all time.
DeFi from the methodology like BitConnect
The hype and the price increases around tokens in the field of DeFi applications are reminiscent of the big ICO boom in 2017. As we know everything, however, this did not end well and mostly caused investors price losses of up to 90%. Almost all cryptocurrencies are still a long way from the exchange rates at that time.
The journalist Max Keizer, known as a Bitcoin fan, is therefore not convinced by the hysteria of the community. He compares the applications in the area of decentralized finance in principle with the best-known Ponzi scheme on the crypto market BitConnect:
The current wave of DeFi Coins are nothing more than Bitconnect in terms of substance and method.
The current wave of 'DeFi' coins are mostly no different in substance and methodology than BitConnect. pic.twitter.com/FCCbYFD1bg
- Max Keizer (@maxkeiser) June 24, 2020
However, Keizer does not provide a reason. DeFi applications have not been around for just a few weeks, but especially with the advent of the corona pandemic and declining confidence in financial systems around the world, many investors seem to want to look for alternatives. With the current hype, many fear a massive overvaluation of the tokens, including the agency Crypto Weiss Ratings.
Price gains like in ICO times
The rating agency assumes a small bubble that will burst sooner or later. However, this should not harm the ecosystem. Because the ICO hype not only created scams, but also many long-term projects:
Mini bubble we're seeing in #DeFi atm is not going to hurt the ecosystem just like the #ICO mania did not hurt the industry back in 2017. In fact, a lot of great projects came out of that bubble. The only thing bubbles do is make inexperienced traders lose their shirt.
- Weiss Crypto Ratings (@WeissCrypto) June 24, 2020
But investors around the world are unlikely to care how the situation turns out. They are happy about long-unprecedented price increases and correspondingly high profits. The currently most hyped token is COMP of the compound network. The price of the 24th largest cryptocurrency rose by 25% in less than 200 hours. Price gains that are otherwise only known from ICO times:
Markus from Kryptokumpel.de
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