The upcoming millionaire caste has more in common with the ‘degenerates’ from WallStreetBets heading for GME, XRP or Doge than with Wall Street gurus like Warren Buffett. Most of them funnel their retirement savings into cryptocurrencies such as Bitcoin, Ethereum or DeFiChain and are taunting the financial superstar investors for lacking so-called “diamond hands” and panic selling their stocks at the beginning of the pandemic.
The Ordinary Joe Gets a Tesla Per Month For Free
A fair bunch of them gather in Telegram chat rooms, vividly exchanging trading tips and mobilizing their peers to support and buy digital assets of all kinds. However, you can find them also in Telegram channels like the one of DeFiChain, where just recently someone wrote, “if I am not getting a Tesla from liquidity mining every month, then I am doing something wrong”.
Decentralized finance (DeFi) is one of the hottest topics in the crypto world right now and DeFiChain is right in the middle and is playing in the same league with such prominent projects as Uniswap, Pancake Swap or Sushi Swap. Even though DeFi is still in the Wild West, blockbuster projects are already putting out their feelers to onboard big institutional investors. However, the space as a whole is still lacking a common standard to easily plug into the gazillion of Dollars sidelined in various financial channels of the traditional financial infrastructure.
“We know there are some obstacles to overcome, predominantly on the interoperability front, but nothing we aren’t able to overcome to become one of the leading DeFi projects”, U-Zyn Chua, core contributor of DeFiChain, mentioned in a recent report, where the project announced that adoption rates are increasing and millions of US dollars of fresh liquidity is being pumped into the ecosystem. Such horrendous numbers are almost certainly driving more of the established financial companies into the DeFi space with takeovers and buy-ins looming in the not too distant future, funnelling yet more fresh capital into the space.
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What we are currently witnessing in the DeFi space is nothing less than a modern gold rush, where a new class of brash capitalists are chasing the quick bucks. It’s the American love story of capitalism, being exported into every corner of the world, playing out in semi private chat groups rather than on oil fields, free trade centres and major financial hubs. It very much feels like the early days in Las Vegas, before the big institutional players arrived and turned the picturesque town into a corporate Disneyland.
A lot of money is currently being funnelled into DeFi projects of all kinds. DeFiChain, for example, has just amassed a market cap of US$ 1.5 bil with US$ 340 mil in total value locked — a metric used by decentralized platforms as a means of liquidity being locked on their protocols. Just recently JP Morgan Chase concluded that DeFi is here to stay and will pose a threat to traditional financial institutions, while Bank of America sees DeFi ‘potentially more disruptive than Bitcoin’.
Most founders of these DeFi projects govern like gods with their deep pockets. In the long run, though, it will be the corporations who will inevitably have the saying in the DeFi space and who will rule it with an iron fist very much as they do it in Las Vegas. In the meantime, DeFi will remain a slot machine, especially for those with little or no knowledge, blindly following the WallStreetBets of this world. Most of them will lose their money, their house and their cars, because they bet on the wrong projects. Others, the ones who bet their money on solid projects like DeFiChain will gain financial freedom. Who do you like to be?
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