Messari co-founder Ryan Selkis warns decentralized finance (DeFi) traders.
In a tweet storm, Selkis predicts that the growing DeFi bubble will burst faster than most people expect.
“We are nearing the top of the ponzi economy, carpet pulling and yield hopping, and the ETH fees will eat too much into non-whale gains.”
Messari’s CEO also highlights the similarities between the DeFi bubble and the 2017 ICO boom.
“ICOs went up for a while because everyone (laughably) thought there would be a coordinating utility token for every industry. DeFi is just one big pool of capital sloshing around a small group of insiders and mercenaries who will soon have no more victims to brighten up. “
Selkis likens space to more foolish investments – the theory that you can make money from overvalued investments by later selling them to new, gullible investors.
Still, Selkis is a fan of the innovation that DeFi represents, and he is says a better way to invest in it is to put some money into some blue chip DeFi assets and forget about them for 3-5 years.
“I love this experiment. Like ICOs, yield farming / stimulated liquidity provision is a new innovation in capital formation. Smart people kill. But I don’t recommend DeFi to most people because I don’t recommend high stakes Vegas poker for fishing. “
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