Waves founder Sasha Ivanov warns that decentralized finance's surge might have negative consequences.
Decentralized finance’s (DeFi) surging popularity might backfire and hurt the forward-looking sector, Waves cryptocurrency platform founder and CEO Sasha Ivanov told Cointelegraph in a recent interview.
Ivanov compared DeFi to the 2017 ICO craze in a tweet earlier today, saying, “Please let's not make a new ICO bubble out of #DeFI.”
When asked to elaborate on his statement, the Waves CEO noted that he strongly believes in DeFi, but is worried about the hype surrounding it:
“DeFi is the future, but it's going to be coming through a bubble part of the cycle now, which can harm its long-term development.”
In Ivanov’s opinion, DeFi networks tokens “are clearly utility tokens, and do have a mechanics that gives them valuation”.