Changpeng Zhao, CEO of Binance cryptocurrency exchange, made an important statement about decentralized finance (DeFi) applications, one of the popular rumors of recent days. CZ emphasized that many DeFi projects will soon “experience the same fate that YAM Finance did”.
YAM Finance had literally taken the market by storm in recent weeks. YAM, which broke a bullish record on the day it was released and gained 400 million dollars of liquidity within hours, threw the towel the same day due to a single code error. Although it was stated that the second version of YAM Finance will be released, the project, which saw the bottom of the day it was launched, created fear in the minds of many investors.
Binance CEO Warns: Don’t Follow The Herd
CZ emphasized that “the herd should not be followed” and that research should be done before making a selection. Calling on investors to take responsibility for their actions, CZ also received support from its followers on Twitter.
There will be many #DeFi projects like this one.
And there *may* be a few that survive, and thrive. Don't "follow the herd". You need to RESEARCH then choose.
Be responsible for your own actions. pic.twitter.com/5awF0drep9
— CZ Binance (@cz_binance) August 24, 2020
Experts think the DeFi projects may still not be over. The ICO boom of 2017 went through similar processes, but there were legal situations that ended it. The fact that the US financial regulator SEC and similar institutions got results from the lawsuits brought about the end of the ICOs.
It is wondered when a similar process will begin for DeFi projects.