Categories: Market Overview

DeFi is here to stay despite signs of a bubble, says Binance CEO

Changpeng Zhao, the CEO of the world’s largest cryptocurrency exchange Binance, said that decentralized finance is here to stay despite many DeFi projects showing signs of being in a bubble. In a Nov. 17 interview with Russia’s news agency RBC, Zhao argued that “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.”

Zhao went on to say that the DeFi industry has a lot of potential for growth, noting that DeFi still remains popular amid an ongoing Bitcoin (BTC) rally. The executive also stressed that initial coin offerings, or ICOs, were referred to as a bubble back in 2017, but a number of ICO-born projects — including Binance — are still doing great:

“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.”

However, Zhao said that some DeFi projects “may not last too long” despite the industry providing a number of incentives through DeFi yield farming and DeFi liquidity.

DeFi is here to stay despite signs of a bubble, says Binance CEO, CoinTelegraph, Nov 17

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

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Tags: DeFi

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