Changpeng Zhao, the CEO of the world’s largest crypto exchange, Binance, He said decentralized funding will stay here, although many DeFi projects are showing signs that they are in a bubble.
In an interview with the Russian news agency RBC on November 17th Zhao argued that “a lot of DeFi projects are already in a bubble, and I also think there are some signs of a bubble in the DeFi industry, but that doesn’t mean DeFi will go away completely at some point.”
Zhao went on to say that the DeFi industry has great growth potential and that DeFi continues to be popular in the face of an ongoing Bitcoin rally (BTC). The executive also underlined that the first coin offerings (ICOs) of 2017 were labeled a bubble, but a number of ICO projects – including Binance – are still doing great things:
“Companies create new tokens, they give them out as rewards. This is not a long-term story. But I think DeFi is here to stay. Even now that Bitcoin’s popularity is rising again, DeFi remains popular. We believe DeFi has a lot of growth potential. “
But still, Zhao said some DeFi projects “may not take very long,” although the industry offers a number of incentives through DeFi income farming and DeFi liquidity.
Zhao also claimed that cryptocurrencies like Bitcoin are the best form of money, calling it the “freedom money for millions of people around the world”. The CEO predicted that the cryptocurrency market has the potential to grow up to 100,000% as digital assets are said to be more widespread than fiat money.
Though he sees a future for DeFi, Zhao has pointed out that the industry locks have achieved mass appeal. In August, he claimed that the centralized exchange would remain popular until the decentralized exchange became easier to use.
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