Cardano Founder Expects Many DeFi Applications to Die Out » Crypto Insiders

Every now and then you come across it crypto news against, a hack or rug pull at a decentralized finance (DeFi) application. Sometimes it is the founders who surreptitiously run off with all the crypto in such an application, sometimes it is a bug in the code that allows a person to steal a lot. As a result, millions of euros in crypto are lost. The founder of Cardano (ADA), Charles Hoskinson, expects many of today’s well-known DeFi applications to crash in the coming years because of this.

DeFi and the Test of Time

In a livestream yesterday, Hoskinson shared his thoughts on the current DeFi space and Cardano’s future role in it. He states, among other things, that many DeFi applications still rely mainly on “hopes and prayers.” But that will ultimately ensure that the now-familiar application will not stand the test of time:

“Unfortunately, many of the projects in this space will not stand the test of time. We will see a major extinction in the next five to ten years.”

Hoskinson adds:

“Many of you are tired of the incredible cost, lack of clarity, and low production quality of applications in the DeFi space,”

The aim is for Cardano to improve the weaknesses of DeFi developments. The project aims to do this, among other things, by developing certification standards.

Scammers are taking off with billions

Hoskinson’s statements are not without foundation. Like this according to previous research from Chainalysis that scammers managed to make more than $7.7 billion in 2021 through back pulls.

Back pulls were a very popular scam. That type of scam made up 37% of the total scams looted in the crypto space. That marks an increase of no less than 81% compared to last year. However, the turnover of scammers in 2021 was considerably lower than in 2019, which is a positive development.

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