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Ethereum's Vitalik Buterin Criticizes DeFi: 'Exciting Stuff But Short Term'

News
Thu, 07/02/2020 - 10:59
Vladislav Sopov
The ongoing insane run of DeFi assets has already generated solid hype around this segment. It appears that not all Ethereans are happy about it
Ethereum's Vitalik Buterin Criticizes DeFi: 'Exciting Stuff But Short Term'
Cover image via vk.com
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The father of Ethereum (ETH) claims that the euphoria around DeFi may deflect attention from building valuable instruments for the long run.

'Yield farming' instead of a new social organization

Vitalik ironically commented on the 'yield farming' motto of DeFi users, which means earning a high profit on various decentralized lending and borrowing schemes. He claims that this unsophisticated concept is much more attractive for the majority of people than ground-breaking smart contracts use-cases.

Vitalik Buterin mocks 'yield farming'
Image via Twitter

Moreover, he denies the idea that decentralized financial applications may guarantee more profitable annual yield rates than classic financial instruments. However, he appreciates the most boring parts of DeFi constructions, i.e. worldwide access to a strong crypto-dollar that isn't subject to deflation due to the yield mechanism.

Vitalik Buterin also mentioned the areas of the decentralized system that look attractive to him. He admitted that he still appreciates DAOs, DAICOs and prediction markets.

The most valuable real-world use-cases for decentralized instruments are smart contract wallets, privacy technologies and public goods funding schemes, according to Mr. Buterin.

Community disagrees

Some 'yield farmers' started defending their segment from the Ethereum (ETH) co-founder's criticism. Eric Conner, a podcaster and Ethereum (ETH) core developer claimed that this new scheme isn't so different from familiar investment mechanisms, while its motto is nothing but a memetic label.

Anthony Sassano, an EthHub co-founder, outlined that this euphoria could get people interested in other valuable things on Ethereum (ETH).

Analyst Adam Cochran highlighted the role of early DeFis as a sandbox environment for future products:

Flashy short-term things help us test long term features, but also attract new thinkers, builders, users and explorers to the space.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

News
Fri, 10/23/2020 - 09:24
Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
Cover image via stock.adobe.com
Contents

Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)