Apocalyptic Scenario About Popular Altcoin From Ross Ulbricht. Ross Ulbricht thinks Maker may experience a sharp drop soon.
Ross Ulbricht, the founder of the famous dark web platform Silk Road, is currently serving life sentences. Ulbricht nevertheless shares his opinions and forecasts about Bitcoin and other cryptocurrencies through his lawyers from time to time and continues to be talked about a lot.
Ulbricht Warns About DeFi
Ulbricht, who previously made very sharp declines about Bitcoin, this time decentralized the decentralized finance practices. Stating that the Ethereum-based lending protocol Maker may experience a huge collapse soon, Ulbricht emphasized that this will have devastating effects:
“The next collapse can lead to systematic payment shortages and disastrous consequences. There is a lot of money in the system right now, and it is known to have much more potential than the current money. This crisis should be seen as a warning that a change and newer protocols are needed. ”
Stating that he found the DeFi concept “cool”, Ulbricht stated that the problem is that those who hold Ether to borrow DAI are exposed to a certain interest rate. Emphasizing that the whole system is not adequately secured and that there are system deficits, Silk Road founder thinks this may cause serious problems.
When Ethereum price dropped 53% on March 12, MakerDAO was on the verge of declaring an emergency closure and there was a danger of losing Ether who were kept as collateral. Maker crashes will likely produce similar results for other DeFi systems.