A comment by Robert Steinadler: The Binance Smart Chain is an ambitious project, which ultimately aims to divert some of the insane sales that DeFi produces and flush into the coffers of the stock exchange. The arguments for an alternative platform to Ethereum are the high fees and the transaction times. The Smart Chain can be cheaper and faster. At the same time, it remains compatible with the Ethereum ecosystem and is not necessarily in competition. But in addition to the problem that you cannot play comfortably with Ethereum at the moment, there remains a much larger problem and it is difficult to communicate it, because how can you recommend products with a clear conscience that are certain to be suitable for the large number of investors are extremely dangerous?
The butcher warns the cattle
And so the Binance CEO can diligently beat the drum, because now that the Smart Chain is ready, you want more users and more headlines. And although he doesn’t want to and probably isn’t allowed to give financial advice, “CZ” has warned his audience that most DeFi projects will fail and some promise short-term profits but are extremely risky. You shouldn’t invest more than you are willing to lose, so “CZ“Almost in the same breath, one of the richest and most influential businessmen in the crypto industry uses his social media account to tell more about the grandiose advantages of the smart chain.
Are critics allergic to money?
This question can be answered with a clear no. The critics of the DeFi hype simply have a different approach to protecting and increasing their money. Of course, you can blindly invest money in DeFi projects whose names are based on menus, but in some cases this may lead to a multiplication of the stakes and the glorious feeling of being a lot smarter than all the others. The only difference is that two factors tend to be overlooked. First, luck has nothing to do with smart decisions. Second, it must be kept in mind that others simply lose all their money at the same time and are therefore unlucky. Speculation always involves a number of unpredictable factors. What makes DeFi even more difficult is that many investors, like the illiterate, stand in front of the code of the respective protocols. They can’t understand what they’re getting into. And so in the end there are two groups. The one who appreciates a “rug pull” and sees it coming from afar and a second, much larger one who then asks at the end how she should recover from the losses.
DeFi remains the future anyway
However, these problems are not new. First the altcoins had to go through this phase and later also the ICOs. Now it is DeFi protocols that are experiencing their Sturm und Drang phase and have to develop to maturity. In the end, the applications that will be left over will be of use and not pull the money out of investors’ pockets within hours. The difference from the two previous markets is that the boom is even faster and bigger, so it is advisable to be extremely vigilant. If those who want to earn money warn against it, then investors should simply be prepared for anything.