During a bubble, does anyone ever realize it’s ready to pop? Typically, it’s only AFTER things come crashing down do you realize “Yeah, that was a bubble” or “Why didn’t I see it?” Today I want to discuss the possibility of one bloated DeFi bubble. The screenshot below is an alarming sight.
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It feels like Black Thursday was just yesterday. That event wiped out a plethora of overly leveraged noobs thinking, “The bullrun is here, no way I’ll get liquidated.” What if…. this is the ultimate ploy to suck as much Bitcoin & ETH into DeFi coins before the whales pull the plug? I like to entertain all possibilities, let’s put on our tinfoil hats, shall we?
In the last crypto bullrun, Bitcoin was the leading bull, ETH and all the subsequent ICO mania coins followed quickly thereafter. What if this time around, it’s the inverse? DeFi coins like SNX, LEND, COMP, KNC, CRV, MKR, lead the charge, that money is then siphoned & injected into Ethereum and lastly Bitcoin.
The biggest whales have to be constantly adjusting their 5D chess tactics, otherwise the plebs will catch onto their tactics. Do I like DeFi? Sure. Do I think yield / volume farming is a wonderful concept? Most definitely. Is this a honeypot set up by whales? Possibly.
My point is this: Don’t be greedy. If it’s too good to be true, it probably is. These DeFi projects promising godly overnight returns are probably too good to be true. I like ETH & DeFi just as much as the next guy, but make sure you have some Bitcoin tucked away too. Keep your mind open to all ideas.