DeFi “Is Real” Unlike the 2017 ICO Craze, Says Cameron Winklevoss
Gemini co-founder Cameron Winklevoss has voiced his support for Decentralized Finance protocols, stating that DeFi platforms are “real” and have real value.
DeFi has taken over the trend in the blockchain and cryptocurrency space, with many schools of thought referring to 2020 as the year of DeFi. According to a previous BTC Manager report, DeFi protocols held an estimated $8 billion worth of crypto assets, with protocols like UniSwap, Aave, Augur, and Balancer setting the pace in the DeFi sphere.
DeFi More Real Than ICOs
Despite its huge achievements in the last two years, the DeFi space still continues to attract a lot of scrutiny and criticism. Many critics have likened its surge to the ICO exuberance of 2017.
Cameron Winklevoss, the other half of the Winklevoss twins, however, has a different opinion of the crypto subsector. In a recent tweet, he pointed out that the current increase in DeFi is nothing like the 2017 ICO craze.
Supporting his position he specified that the old ICO projects were built on mere ideas, theories, and shitcoin whitepapers. And that DeFi, on the other hand, is bringing real-life solutions to genuine finance-related issues. According to Cameron, the DeFi surge is real, and not some “hypothetical vaporware” and definitely not the same as the ICO boom of 2017.
And DeFi protocols they stand today, are not mere projects waiting to be launched. They are already actively carrying out functions like lending, borrowing, gaming, etc.
About 2017 ICO Craze
ICOs were a popular fundraising method for startups in the crypto and blockchain space back in 2017. Unlike IPOs, they were largely unregulated and although some of them resulted in massive returns for investors, many turned out to be largely unprofitable if not complete scams.
The concept of an ICO was first propounded in 2014 by Ethereum. It, however, did not gain prominence until 2017 when interest in the fundraising method soared and brought it to the mainstream stage. Over $3.5 billion was made from ICOs in 2017 alone, with projects like Bancor, Polkadot, TenX, WAX, Tezos, Sirin Labs, Status, etc. leading the ICO craze.
However, this increase was only short-lived. The year 2018 brought in a slow but steady decline in ICOs and by 2019 most of them became history. Fortunately, the projects that brought real utilities survived and have seen massive success.