The decentralized financial sector (DeFi) of the crypto industry has been characterized by exuberance, innovation and speculation in recent months. However, according to Richard Byworth, CEO of digital finance firm Diginex, the field is still in its infancy.
“I believe DeFi is the future that may be ahead of us,” Byworth said in an interview with Anthony Pompliano, co-founder of Morgan Creek Digital, Posted September 18. “But it’s too early” added, elaborating:
“It’s like trying to fly to the moon in a cardboard box. I mean you’ll get in trouble along the way and you know things are going to fall apart and burn, as we’ve seen before.”
Such dramatic attempts, attempts and failures They don’t make the industry look very good compared to mainstream companies that keep an eye on the cryptosphere and its nascent DeFi field.
“I’m definitely looking back on 2017 and this DeFi thing is probably not what we need right now.” Byworth added. “We have MicroStrategy, we have Paul Tudor Jones, we have some really serious hitters who are starting to pay attention to this industry, and I just hope DeFi doesn’t turn into another weirdo like ICOs where people say,” You know what, everyone in crypto is freaking out, ‘and staying out of the industry for a few more years. “
T.The entire cryptocurrency industry reached bubble status in 2017 due to the upward trend in the initial coin offering (ICO), a fad that was later stopped by regulations. In the past few weeks, DeFi has been giving off similar swings, with many random assets exploding in prices.
Byworth isn’t the first to compare the 2017 DeFi ecosystem to ICOs. Digital asset data site founder Ryan Selkis recently expressed similar views.
Also, as Byworth mentioned, Several major mainstream financial giants recently turned to Bitcoin. This may position the industry at the crucial moment in its life so far.