Ethereum’s Vitalik Slams DeFi: Why Crypto Leaders Are Outraged
coinpedia.org 26 August 2024 07:58, UTC Is the Ethereum co-founder doubtful about the long-term potential of DeFi? Well, one of his latest statements about DeFi in X sounds so. Unsurprisingly, the controversial statement has received strong criticism from the crypto community, even from a few top crypto business leaders like DeFinance Capital founder and CIO Arthur and Frax Finance founder Sam Kazemian. The core of this fierce debate is what you are going to present to you below. Interested? Then, Dive in!
Ethereum Co-Founders’ Concerns about DeFi Unveiled
From the statement by Vitalik Buterin, it can be assumed that the Ethereum leader is of the opinion that the DeFi sector is incapable of supporting the growth process of the cryptocurrency sector.
> the yield comes from borrowers, trading fees, etc
Right, so this worries me. Because it feels like an ouroboros: the value of crypto tokens is that you can use them to earn yield which is paid for by… people trading crypto tokens.
Even if the answer is something clear like…
— vitalik.eth (@VitalikButerin) August 25, 2024
He is less likely to accept the DeFi sector’s role in the growth process of the crypto sector, unless it finds value outside the crypto ecosystem. It seems that he is extremely concerned about the present statement of the DeFi ecosystem – particularly its over reliance on crypto trading.
What Crypto Business Leaders Think About Ethereum Co-Founder’s Latest Take on DeFi’s Future
The DeFi community has strongly criticised Vitalik’s opinion. Crypto business leaders like Arthur and Sam Kazemain have made public statements in X, criticising the Ethereum leader.
Arthur’s statement demands Vitalik to do an introspection on how DeFi adds value to Ethereum.
Terrible take, founder of the largest smart contract L1 doesn’t really understand the usecase and sector that drive value to ETH and make it worth $330b.
See you at 0.03. https://t.co/K04DxWu6Ue
— Arthur (@Arthur_0x) August 26, 2024
The statement conveys clearly that Arthur is of the opinion that it is important for the Ethereum founder to recognise the importance of DeFi to the market value of Ethereum.
Meanwhile, Sam Kazemain’s statement sounds less aggressive in nature, but definitely attacks Vitalik. It likens the Ethereum co-founder’s opinion with the stand of the blind supporters of Bitcoin.
BTC maxis don’t like DeFi.
EF & Vitalik don’t like DeFi.
Pretty surreal that’s the one thing they both seem to agree on. DeFi people take note.
— Sam Kazemian (¤, ¤) (@samkazemian) August 26, 2024
The statement attempts to create an impression among the DeFi enthusiasts that both the blind BTC supporters and Vitalik are on the same page when it comes to what they think about the DeFi sector. It directly appeals to the DeFi community to take a note of this shared confusion.
The debate between the Ethereum founder and the crypto business leaders have triggered a strong conversation about the future of DeFi in various crypto forums. If this conversation is not taken in the right direction, it will be counterproductive.
What do you think?
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