Mike Novogratz Gives Shoutout to Ethereum Founder Vitalik Buterin, Claims He's Playing Long Game

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Sun, 06/21/2020 - 08:43
Alex Dovbnya
Vitalik Buterin's criticism of DeFi projects earns praise from Mike Novogratz
Cover image via www.facebook.com
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In a praise-filled tweet, Mike Novogratz, the CEO of cryptocurrency merchant bank Galaxy Digital, says that he’s ‘constantly impressed’ with Vitalik Buterin, the Russian-Canadian programmer who co-founded Ethereum.    

Buterin, according to Novogratz, is trying to build something of ‘immense value’ while applying his long-term vision.  

image by @novogratz

Related
Max Keiser Claims Ethereum Founder Vitalik Buterin Doesn't Understand Bitcoin

DeFi projects may pose systematic risks 

Novogratz showed his admiration for Buterin after the latter picked holes in decentralized finance (DeFi) projects that represent a new frontier for Ethereum.

In Buterin’s opinion, there is too much emphasis on ‘flashy DeFi things’ that offer significantly higher interest rates than a traditional bank.

He further claims that they either offer short-term opportunities for arbitrage or fail to disclose some systemic risks.

image by @novogratz

As reported by U.Today, Buterin also cautioned his followers against treating DeFi as a safe investment back in September when the whole space was worth around $537 million.    

Related
Vitalik Buterin Worried About 'Trust Models' of Some Bitcoin-Backed Ethereum Tokens

There is a new DeFi king  

In the meantime, the total value locked in DeFi projects is approaching $1.5 billion as they continue attracting yield-hungry investors.

Compound recently toppled Maker after starting disturbing COMP tokens to allow its users to participate in the protocol’s governance.

The price of the governance token has now skyrocketed by more than 135 percent after getting listed on Coinbase Pro on June 18. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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