Max Keiser Compares Majority of DeFi Coins to BitConnect Scam in Substance and Methodology

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Wed, 06/24/2020 - 10:05
Yuri Molchan
Prominent cryptocurrency expert Max Keiser believes that much of the current DeFi coin wave resembles the BitConnect Ponzi scheme in substance and methodology
Cover image via www.youtube.com
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Renowned investor, trader and TV anchor Max Keiser has shared his take regarding the majority of DeFi coins, comparing them to the large BitConnect crypto Ponzi scheme.

‘The current wave of ‘DeFi’ coins are mostly no different than BitConnect’

Max Keiser has taken to Twitter to say that he believes the majority of the current DeFi coins hardly differ from the infamous BitConnect crypto scam project regarding the methodology and substance of those numerous coins.

Image via @maxkeiser

Decentralized finance (DeFi) is a movement in the fintech space that uses decentralized networks to transform traditional products into trustless and transparent protocols that work with no intermediary.

The range of DeFi apps is wide – from crypto trading and lending to analytical podcasts (and newsletters).

These apps offer Ethereum-based tokens, which are being injected into the market. Users have been locking their ETH in many financial DeFi apps.

The movement is believed to be revolutionary and is expected to help the ETH price, in particular, in the near future (along with the approaching launch of Ethereum 2.0).

Despite requests to explain his point of view on DeFi in the comments, Max Keiser did not oblige. However, some users agree with his take.

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Max Keiser, Vitalik Buterin are anti-DeFi

Max Keiser is a well-known Bitcoin maximalist whose ultra-bullish forecast goes as high as $400,000 per BTC. He believes that in the future the king crypto will play a major role in the global financial system.

Recently, he commented on the sudden forty percent fall of Compound (COMP) token, which is also DeFi. Keiser stated that the purpose of this coin and other altcoins was to take BTC out of investors’ pockets.

According to Compound founder Robert Leshner, DeFi is not ready to go mainstream yet. Ethereum co-founder Vitalik Buterin has warned crypto users that DeFi projects can hardly be considered a safe investment option.

Weiss Ratings calls DeFi a mini bubble

Major financial agency Weiss Ratings seems to be skeptical of the theory that in the future the DeFi sector will disconnect from the rest of the crypto market.

This agency expects the DeFi mania to eventually come to an end with DeFi coins trading in line with the rest of the crypto market.

Image via @WeissCrypto

The agency has also called DeFi a mini bubble. It stated that some good projects may emerge from it, as happened with the ICO boom. However, Weiss Crypto Ratings warned the community that many inexperienced traders may lose their money.

Image via @WeissCrypto

 

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at yuri.molchan@u.today.


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