Anonymous messaging platform 4chan, known for its involvement in crypto, has this weird infatuation with decentralized finance (DeFi).
As reported by CryptoSlate, an Ethereum-based token rallied literally 10,000 percent in two hours.
The move was caused by individuals on 4chan calling the token the “next big thing,” with one likening the coin to Tellor.
The token in question was Opyn y.curve Insurance (OCRV), which allows its holders to obtain insurance on their deposits into DeFi protocol Curve.fi. The issue is: the insurance that OCRV provides expired — expired more than two months ago.
As a trader recently observed, 4chan’s love of this growing segment of the Ethereum ecosystem is back. And it’s back with a vengeance.
4chan is obsessed with Ethereum DeFi yet again
As pointed out by a pseudonymous Bitcoin trader, 4chan’s “biz” forum is once again obsessed with all things decentralized finance.
The trader shared the image below of a page search of the term “DeFi” on the “biz” home page. The search returned 28 results — on one page alone.
CryptoSlate looked at some of the posts on the forum and observed many posts referencing Chainlink or other projects that these users think will “moon” and “pump.”
4chan’s recent uptick in DeFi interest comes as this segment of the Ethereum ecosystem has seen parabolic growth.
Ex-Bloomberg journalist Camila Russo observed on Jun. 19 that the value of tokens locked in DeFi contracts has shot up by 40 percent last week.
This metric has grown even more over the past few days, with there now being nearly one percent of all Ethereum locked up in Compound alone.
There’s real value this time around
4chan’s obsessive stints with DeFi in May were predicated on accidents or trolls gaslighting their fellow “4channers.”
Look no further than the comment that sent OCRV skyrocketing by 100 times:
“Strap in. Market cap is only like $8k and this s**t is going to explode, already is shilled on Telegram. Opyn could be like TRB months ago… only that… [but] 100 times cheaper.”
This time around, though, it can be argued that there’s actually value in the Ethereum projects 4chan is keeping tabs on.
Much of the hype on 4chan regarding Ethereum DeFi is related to the launch of two coins: Compound’s native governance token COMP and Balancer’s native governance token BAL.
Although the two protocols are different and serve different users, the premise of the two tokens is the same: after building a solid user base, these protocols want to further decentralize themselves and incentivize adoption by implementing a native token.
Both of the Ethereum-based altcoins have multi-hundred-million-dollar valuations as investors want to wield influence over DeFi and want to capture on the upside in this segment of crypto.