Vitalik Buterin’s criticism of DeFi projects earns praise from Mike Novogratz
In a praise-filled tweet, Mike Novogratz, the CEO of cryptocurrency merchant bank Galaxy Digital, says that he’s ‘constantly impressed’ with Vitalik Buterin, the Russian-Canadian programmer who co-founded Ethereum.
Buterin, according to Novogratz, is trying to build something of ‘immense value’ while applying his long-term vision. image by @novogratzR
DeFi projects may pose systematic risks
Novogratz showed his admiration for Buterin after the latter picked holes in decentralized finance (DeFi) projects that represent a new frontier for Ethereum.
In Buterin’s opinion, there is too much emphasis on ‘flashy DeFi things’ that offer significantly higher interest rates than a traditional bank.
He further claims that they either offer short-term opportunities for arbitrage or fail to disclose some systemic risks.image by @novogratz