Traditional Systems are always nibbling at the controversial aspect of crypto and this is because of the validation that crypto is not flawless. Crypto is however not trying to prove flawlessness, after all, it's also a human system that's prone to greed and exploitation as well.
In this video I talked about how defi and NFT gained aggrandizing attention in the bull market of 2021 and without much of an impact, it became an aspect of crypto that was prone to hacks and exploitation.
However, we've seen countless criticism of crypto due to people who bought into scams and dangerous NFT projects without considering the utility and thinking they'll get back a resale value.
In this video, I thoroughly defined why NFT is never meant to achieve resale value just like other traditional crypto, but scam projects took advantage of the fact that it was one of the latest innovations in crypto to scam others. Defi experienced the same thing and I analyzed whether tnr crypto space was truly ready for this.
I talked about how the next bull market might experience another saturation and how people need to deal with it.
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▶️ 3Speak
I feel like the government doesn’t have a clear definition of what they consider a security or not. I’ve seen several cases where certain assets have been called securities and later called assets.
I agree that NFTs have intrinsic value. Similar to art. You pay the price you think the art (or in this case, the NFT) is worth. It’s really about how you feel about the NFT or piece of art. But I feel like crypto is the same. Even though in the case of crypto, you buy and sell at market value, things like hodling and limit orders exist for intrinsic assessment. If you feel that a certain project is worth more than it is currently selling on the market, you wait until others can appreciate the value you see in it and are willing to buy at that price.
In the aspect of conventional crypto, I think community and project is what gives value to a Crypto project. In reality, I do believe that it's totally different from NFT and Defi that do not have some certain value to make it a mainstay. I do believe it'll be an integral part of crypto in the future, but we're probably not ready for it at the moment I guess.
Yeah it’s use case and adoption is slow at the moment. Hopefully as crypto gains more grounds in the future, it’ll throw some more light on NFTs and Defi and help it’s growth and adoption.
DeFi is a niche that performs exceptionally well during bull markets. Greed drives the frenzy as high APR rewards generally appreciate, as opposed to remaining stagnant or depreciating. However, it's a sector that ultimately needs to be exited during bearish times... kind of like an ice-cream shop at the beach shuts down during winter. It just becomes a money pit. NFTs tend to fall into the same categorization.
Hahah nice depiction: An ice cream shop during winter. I think you're right, it's a niche that's basically driven by the hype of the APR it's why almost every defi scheme suffers during the bear market. Plus, I also talked about the hacks. They're prone to a lot of hacks and people tend to lose a lot of money because of this.
Yeah, the exploits and hacks are pretty bad. Fortunately, many protocol victims found ways to compensate users, at least to some extent during 2021 and 2022.
That's true. However, I believe that the greed will continue in the next bull market and the cycle will probably continue.
For sure... no doubts!
My internet sucks at the moment, will be back to watch this but I had a critic view of NFTs in its early days as well, I just felt it a lot is being paid for it without usecase until Splinterlands helped me change that perspective, so it boils down to getting to know projects and the same can be said for DeFi.
Splinterlands changed a lot of narratives when it comes to NFT because the type we use have use cases over here and as for Defi, that's a huge whole new world of hype.
The internet here is also shitty.. uploading it was very challenging for me.
I think it is definitely the human factor. The FOMO into NFTs/Defi were something that appealed to people who wanted money. Unfortunately, the hacks or crash destroyed the dreams of a lot of people. Investing into bad projects doesn't help and they lost a lot of money. Along with all the hacks/rugpulls, people just lost hope from it being overhyped.
The human factor is always the issue. I think without the greed and rugpull as well as hacks, we might have a functional aspect of crypto, but the bear market opens up on the fact that these projects do not have longevity
I think for many people what gave them that perception was how DeFi and NFTs went from overperforming to underperforming in a relatively short amount of time. Both of them were new and that was they're first cycle. I believe they both have great potential when more utility and more robust systems are built in place to prevent hacks and exploits.
I think I agree with you. They were new and were grossly affected by bad players. There was a lot of hype during the bull market in 2021, but with the inception of the bear market a lot of people saw that their defi projects were all hype and nothing sustainable at all.
Indeed! There was nothing sustainable about them. Sustainability is what DeFi projects have to focus on before the bull market comes again. It has to be more than just hype next time around.
I think we might get to see the influx of NFT and defi again during the bull market, it's inevitable.
awesome
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very greatful
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