November 15, 2024
The Lie of DeFi (Decentralized Finance)
 #Finance

The Lie of DeFi (Decentralized Finance) #Finance


this is matthew cratter from trader university and today i want to talk about the lie of d5 or decentralized Finance now the promise of d5 is actually very exciting

the idea of having a protocol and an open system where no one is in charge it’s completely decentralized it’s permissionless it cannot be shut down or censored now of course bitcoin was the first protocol to do this in a truly decentralized manner and as such it contains all the promise

of d5 but when i hear about other altcoins trying to do this or tokens that are built on top of the ethereum blockchain all i can think of is children playing dress up now it’s very cute when children do it but it’s not as cute when altcoin promoters try to do it in order to dump their

bags on you and the entire ecosystem the entire d5 ecosystem that’s built on top of ethereum and that is called defy is really defy is really decentralized only in name not in reality now we all know and i’ve covered many times all the different hacks and the ways you can get wrecked in

d5 this is a great website to follow the details and it turns out this happens even to very large protocols like dao maker but that’s not what i want to talk about today i want to talk about another d5 protocol that was founded on the promise of trying to stop uh trying to help people when

they experienced a defy rug pull it was basically an Insurance protocol and it received a lot of hype about a year ago in september of 2020. the idea behind this the protocol was called cover it was an Insurance protocol built on top of ethereum and the basic idea

was that you would be able to ensure uh ensure people who were who were owned d5 tokens and it seemed like a good idea especially because there’d been so many hacks in this space so many bugs so many uh so many bag holders now this is what the project looked like a year ago it was being

pumped by some people over at urine and this is what the project looks like today they just shut down the protocol the token has plummeted in value but the really interesting thing about this is that there’s a lot of larping going on here a lot of pretending that this protocol and all the d5

protocols are decentralized when in fact they’re highly centralized and the way we can see this if we just go to the medium page for this protocol we see defy ted posting a post saying that it is with conflicted emotions that i i announced the end of ruler and cover protocol the decision to

do this did not come easy blah blah blah here’s basically one guy who shut down the cover protocol and people still pretend that this space is decentralized it looks like he had to shut it down when all of his developers walked off the project but again this just goes to show how centralized

the project was and it’s ironic because this was actually meant to be an Insurance protocol to help ensure you against all the bad things happening in the d5 space as a result the the cover token has really crashed it’s gone nowhere over the past year and i’m not

even sure this price is correct i’m not sure whether you can actually trade it it’s very uh very liquid at the moment so this is the problem with defy this is these are protocols that steal the bitcoin promise and pretend to try to recreate its decentralized nature but they end up being

very scammy they’re very centralized and they can be turned off just by a single person who goes by the name of defy ted now the sec is slowly waking up to this reality they just announced last week that they’re investigating uniswap labs which is the company behind the uniswap protocol

which is a decentralized exchange where you can trade all these different pairs this is uh this again shows the fakeness of of d5 protocols again these are new protocols that are looking at their their older brother or their parent who wears a suit and is six feet tall and they’re putting on

the adult’s clothing and trying to pretend to be like bitcoin but it’s very transparent if you if you have a headquarters if you have a ceo if you have a legal team if your protocol can just be turned off overnight this shows that you’re not decentralized at all there is a

centralized leader in charge i’ll give you two headlines that you’re never going to see with bitcoin sec raids bitcoin headquarters of course there is no bitcoin headquarters there’s no center to bitcoin or bitcoin ceo has been detained for questioning these are things that can

never happen because there is no bitcoin headquarters there is no bitcoin ceo you can have an entire country like china expel all the bitcoin miners and forbid the use of bitcoin it doesn’t matter everything just moves and there’s no there’s no center to the bitcoin protocol by

contrast we have all these d5 protocols that can be investigated by the sec or can just be turned off overnight if something happens with the dev team this is again another blog post that you would never see is with conflicted emotions that i announced the end of the bitcoin protocol the really

unique thing about bitcoin is it’s something that can only happen once you can only create true digital scarcity the first time after that everything is an additional knockoff you can only create the mona lisa once everything after that is just a copy and it doesn’t have the same

long-term enduring value and one of the very special things about bitcoin is it was launched by an unknown founder who disappeared very early on in the project satoshi nakamoto it’s a real gift he gave the world because he cannot be detained now he is not a a single point of failure for the

protocol and bitcoin also had the unique advantage that it grew very slowly under the radar of governments and central banks it’s now reached the point it’s like a virus it’s spread everywhere and it cannot be stopped all these d5 protocols all these d5 tokens including ethereum

itself which is highly highly centralized they had a very large pre mine there are a lot of insider holders that control the path of development they have a very prominent co-founder who’s still around vitalik buter and obviously these things can be shut down or co-opted they can be taken

over by the government and i wouldn’t be surprised if this is what’s happening with ethereum they’re pushing the esg narrative very hard and they’re cozying up to the dominant narratives that are used to sell things on wall street by contrast bitcoin began as we said under

the radar and spread all around the world in a truly decentralized manner it’s not like cover it’s not like the dow maker maker dao or uniswap or even ethereum itself it’s truly decentralized and at this point it cannot be stopped this is why bitcoin is such an important asset to

own in my opinion if you found this CashNews.co helpful be sure to hit the subscribe and like button if you want to be notified when i publish my next CashNews.co and let me know your questions and comments in the comment section below thanks a lot for watching and i’ll see in the next

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42 thoughts on “The Lie of DeFi (Decentralized Finance) #Finance

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  5. Decentralization is almost impossible to achieve without mass adoption. With crypto so many scams exist and there are plenty of very reputable projects that have huge potential but are not Decentralized

  6. My question is how is Bitcoin ever going to be any kind of usable decentralized asset, in terms of servicing everyday transactions, when it is still too slow and costly to resolve without some kind of nostro /vostro -style, or layered -on solution? I believe this will always be the Achilles heel of the POW based coins. Yes, there is a lot of DEFI jive out there. But I don't see how a truly usable, exchangeable asset can be anything but some kind of POS coin, like XRP, or any of the other ISO 20022 coins. Bitcoin just can't (and never will) be able to compete with what something like xrp, or xlm can provide, in terms of ODL.

  7. as much as i agree on most of defi is not decenterlized. and dao is just a new form of company and not decenterlized or adminless.

    i believe sec controlling everything is wrong, everybody can see what a protocol is, or a contract is and can make decisions. if they lose money it's their fault. and not because somebody didn't follow the contract or the protocol. sec is suppose to enforce human trust, and human promises. not these.

  8. You can make always make a case there are inherent flaws in defi but don't try to convince me bitcoin is any better. Bitcoin doesn't do anything. It's essentially useless computer code.

  9. You are the man!!!! I’ve been listening to you YouTube videos for a year or more and find your channel a great value and always helpful. I’m also glad you’re out
    there watching out for us Lehman. I also loved how you put DeFi Ted scam on blast. You are the real deal. Thank you. Pete

  10. I LOVE the fact that the victims were able to leave that message to the assistance team. They were able to tell that guy, they are no longer victims! you are such an awesome force GlobalTraceAssets be reckoned and that is why I watch you!! Keep up the good work❤

  11. I LOVE the fact that the victims were able to leave that message to the assistance team. They were able to tell that guy, they are no longer victims! you are such an awesome force GlobalTraceAssets be reckoned and that is why I watch you!! Keep up the good work

  12. Guys coins can be made everyday study supply and demand it means zero value . Also fed Janet yelled is against coins because black money criminals so the future of coin is control and not up. It’s over don’t be a dumb ass buy real estate this is all a scam I am a PhD economics and financial advisor Merrill lynch save your money. Coin has no real value except criminal and political demand which will be blocked. The more high tech jibberish they talk the more it sounds like tulips in holland in 16th century. Suckers born everyday. Any investment without income is not an investment it’s a gamble

  13. I love the content! It was very insightful and I also had a surge of emotions while learning. I always found the De-Fi space corny. Especially when they spoke about trading. They never created any real value. Only were about selling high and buying low.

    Your take indeed adds to the disclosure of current problems of the De-Fi networks. I will be certain in using this knowledge in my research.

    You have indeed pumped me up!🔥Looking forward to seeing more of your content!🤩

  14. XRP ledger destroys Bitcoin in every technology aspect including decentralization. This is facts. The “maker” of crypto currency aka satoshi asks David Schwartz stated this. You will all soon learn.

  15. lol what promise of decentralized finance does Bitcoin bring? You can send your Bitcoin and you can receive your Bitcoin. You can’t write composable contracts or deploy anything.

  16. DeFi is not competing with BTC. It's competing with the the current financial system. Both BTC and an unlimited number of other crypto assets/chains/tokens can coexist harmoniously. BTC is competing with gold. DeFi is going to replace banks and all of finance because they benefit the investor/holder instead of the centralized banks. Also, to say Ethereum is not decentralized is just false. They have OVER 200,000 VALIDATOR NODES on ETH 2.0, which comes out later this year.

    Extremist ideology, such as the narrator's, clouds your judgement about reality because you gain tunnel vision. Bitcoin maximalism has become a toxic religion of fear induced liars.

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