Binance CEO Drops Series of ‘Unpopular Opinions’ on DeFi, Bitcoin, Ethereum, and Future of Crypto

Binance’s founder and CEO says he is giving crypto traders an unfiltered dose of truth about the state of the crypto markets.

In a series of tweets, Changpeng Zhao warns investors across the booming DeFi market.

“(Un) popular opinion: I now see a lot of bubbles in DeFi. I believe that the core concept of “putting out coins to provide liquidity and generate returns” will remain.

But these super high returns subsidized by new tokens will not. Super high risk. Be careful! “

Zhao expanded his DeFi views in a recent interview with Box mining, saying that most projects in the DeFi space will fail in the long run.

“At first, when people talk about DeFi, they think of borrowing so you can lend your coins … but now you borrow the coins to provide liquidity. When liquidity is good, people trade more and more easily. I think automatic market makers are an interesting invention. They are a very simple concept …

At the same time… most projects in the DeFi space will fail. It doesn’t mean DeFi isn’t good, it’s just that only a few will succeed. The few that succeed will succeed hugely, but if you’re investing in the DeFi space, be very careful. It’s a new field. (A) most projects fail in any new area. “

In another “unpopular” tweetZhao says Bitcoin and Ethereum will not be the only long-term survivors in the crypto market.

He points to the speed of the top two cryptocurrencies based on market capitalization as a bottleneck that other blockchains will outpace.

“Unpopular Opinion:” One Blockchain To Rule Them All “is unlikely due to capacity limits. We need more and faster blockchains.

I consider BTC and ETH huge successes as their use already far exceeds their designed capacity. But we need more. “

Binance recently launched Binance Smart Chain (BSC), which is designed to enable developers to create smart contracts for tokens on the network that powers Binance Coin (BNB).

Featured Image: Shutterstock / PLRANG ART Artur Furmanek

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