Changpeng Zhao, CEO of Binance which is the world’s largest cryptocurrency exchange, said that while several DeFi projects showing signs of being in a bubble, decentralized finance is here to remain.
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 the DeFi industry has a lot of growth opportunities, noting that DeFi still remains popular amid an ongoing Bitcoin (BTC) rally. Zhao went on to say the DeFi industry has a lot of growth opportunities, noting that in the midst of an unprecedented Bitcoin (BTC) surge, DeFi still remains popular. The executive also emphasized that in 2017, initial coin offerings or ICOs were referred to as a bubble, but a number of ICO-born ventures are still doing well including Binance: “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.”
Zhao said, however that, despite the industry offering a range of incentives through DeFi yield farming and DeFi liquidity, some DeFi projects “may not last too long.”
According to cointelegraph.com, Zhao also believed that cryptocurrencies like Bitcoin was the greatest source of currency, calling it the “money of freedom for millions of people worldwide.” The CEO estimated that the crypto industry will have the ability to expand as much as 100,000 per cent as digital assets would potentially be more commonly accepted than fiat.Although he sees a future for DeFi, Zhao has acknowledged roadblocks to the mass-attraction industry. He reported in August that centralized trade will continue until decentralized trade became more user-friendly.