DeFi Growth is Similar to ICOs Craze in 2017, says Diginex CEO

DeFi Growth is Similar to ICOs Craze in 2017, says Diginex CEO

Decentralized finance or DeFi has been attracted to investors, which skyrocket the DeFi sector. In recent months, decentralized finance has jumped exponentially in the market cap.

Exponential Growth of Decentralized Finance

The sector is in its early phase, and it has to cover a long distance to have a bright future. All DeFi projects are shining as their token prices are touching the sky in just a period of few months.

“I do believe that DeFi is the future potentially down the road,” Richard Byworth, CEO of digital finance company Diginex, said in an interview with Anthony Pompliano, the co-founder of Morgan Creek Digital. “It’s like trying to fly to the moon in a cardboard box — I mean, you’re going to get yourself into trouble along the way, and, you know, things are going to break and burn up, as we’ve already started to see.”

Byworth reminds of the ICO craze when everyone got into it and then regulatory authorities stepped in. Many giant companies have also started to invest in cryptocurrency. For instance, MicroStrategy is the latest big intelligence business platform that bought Bitcoin worth $400 million.

“We’ve got MicroStrategy coming in, we’ve got Paul Tudor Jones coming in, we’ve got some really serious hitters starting to pay attention to this industry and I just hope that DeFi doesn’t become another ICO craze that people go, ‘you know what, everyone’s crazy in crypto,’ and stay away from it for another few years,” Byworth added.

DeFi Comparison with ICOs

In 2017, an unlimited number of people got attracted to cryptocurrency due to the rising fashion of initial coin offerings or ICOs. But the rising trend of ICOs evaporated with strict rules and regulations. “I definitely look back to 2017, and this DeFi thing is probably not what we need right now,” Byworth said.

Byworth compares the rising bubble of DeFi with the ICOs in 2017. However, he is not the first one to draw this comparison as Messari Ryan Selkis also expressed similar views.

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