A well-known Bitcoin (BTC) whale, known to have large assets on the cryptocurrency exchange Bitfinex, says that retail traders have fallen victim to the deception of a new move in the crypto space.
The trader named Joe007 said he believes that decentralized finance (DeFi), a new ecosystem that offers a variety of financial products using Blockchain technology, is the latest version of a Ponzi scheme.
“Altcoins Grow With FOMO”
The Bitcoin maximalist says that altcoins grow only because of their ability to produce FOMO, which ultimately creates concentrated wealth for several “traders” and huge losses for everyone. Joe007 said that investors should understand that all crypto assets are actually money and that they don’t buy a share in the future of the new company.
As for projects in the field of DeFi, Joe actually thinks it might be more dangerous than a typical Ponzi scheme.
“DeFi projects are more risky than Ponzi programs. In addition to the fraud expected by the project founders, they may be unexpectedly attacked by external players. ”
Joe said that any technical breakthrough that could be discovered by altcoin developers would still benefit BTC at the end of the day.
“Some altcoins even have interesting innovations. The development of these innovations is covered by crypto owners, but will ultimately benefit Bitcoin. “