Cameron Winklevoss, one of the famous Winklevoss Twins believes that the Decentralized Finance (DeFI) market revolution is not the same as the 2017 Initial Coin Offering (ICO) craze. Nowadays, several projects have been released to the market and are helping users to get access to financial solutions without relying on a centralized authority.
DeFi is not the Same as the 2017 ICO Craze
In recent months, a large number of projects have been releasing their solutions to the market and offering users the possibility to get access to innovative financial solutions without depending on a centralized third party.
One of the most popular projects in recent times is Uniswap with its UNI cryptocurrency. The entire market has been enthusiastic about it due to an airdrop they did for users that used the platform and due to the services, it is currently offering.
Users can exchange their coins for other ERC-20 digital assets in just a few seconds. Developers do not even need to ask for permission to register their tokens on Uniswap and everyone can start purchasing them. This has pushed the price of different Ethereum-based digital assets to new highs.
Although there were some projects such as SUSHI that didn’t fulfil users’ expectations, the DeFi market seems to be much more mature than what it was the ICO craze in 2017 and early 2018. The community immediately punished SUSHI due to a mismanagement of the project. This was certainly something difficult to see during the ICO period where everyone wanted to invest in “the next Bitcoin.”
Cameron Winklevoss, the co-founder of the cryptocurrency exchange Gemini, stated on Twitter that DeFi’s revolution is real.
“DeFi is not the same as the 2017 ICO craze,” he said. “Back then, money was raised on shitcoin white papers written in a coffee shops. DeFi is already live and working in the wild. Billions of dollars are at work earning positive yield. This isn’t hypothetical vaporware, this is real.”
DeFi is not the same as the 2017 ICO craze. Back then, money was raised on shitcoin white papers written in a coffee shops. DeFi is already live and working in the wild. Billions of dollars are at work earning positive yield. This isn’t hypothetical vaporware, this is real.
— Cameron Winklevoss (@cameron) September 22, 2020
It is worth pointing out that not everyone is supporting the DeFi market. Some people believe that this is similar to the ICO craze and that this could have negative effects in the crypto industry.
According to data provided by DeFi Pulse, there is almost $10 billion worth of USD locked in DeFi projects. That means that almost the entire XRP crypto market cap is currently locked in DeFi projects and platforms offering services to users.