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As bitcoin rises, CZ believes that the DeFi industry is here to stay

As bitcoin rises, CZ believes that the DeFi industry is here to stay

Quick take

1 minute read

  • Despite showing signs of a bubble, CZ believes DeFi is here to stay.
  • The industry has seemingly been growing significantly despite its coin taking over the headlines.

The chief executive officer of one of the biggest platforms in the industry, CZ has recently said that decentralised finance, otherwise known as DeFi, is here to stay despite many projects in the industry showing signs of being a bubble.

Speaking in an interview earlier this week on the 17th of November with the Russian news agency RBC, the CEO argued: “a lot of DeFi projects are already in a bubble, and I also believe that there are some signs of a bubble in the DeFi industry, but this does not mean that DeFi will eventually disappear entirely.”

Furthermore, CZ went on to highlight that the industry for DeFi is seeing a lot of potential when it comes to growth as he mentioned that it is still a popular entity even during the spike in the bitcoin price following the United States presidential election earlier this month. On top of this, CZ added that initial coin offerings were seen as a bubble back in 2017 but a number of projects within this so-called “bubble“ are still going on today including his platform Binance. 

He further said:

“Companies create new tokens, issue them as a reward. This is not a long-running story. But I think DeFi is here to stay. Even now, with Bitcoin’s popularity rising again, DeFi is still popular. We think there is a lot of growth potential in DeFi.”

Despite this, he also did mention that some projects for DeFi may not last as long as people hope despite a number of incentives being provided by the industry through yield farming and liquidity for DeFi.

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