According to Reynolds, the huge difference between the market capitalization of DeFi protocols and second-generation blockchains is the result of manipulation.
The Google Payment engineer is of the opinion that it’s irrational that the Ripple’s digital token XRP, Bitcoin Cash (BCH), EOS, Cardano (ADA), Bitcoin (BSV), and Stellar Lumens (XLM) amassed market valuations more than double of Yearn.Finance (YFI)’s valuation.
Going by the opinion of Reynolds and others with a similar point of view, especially those in the DeFi ecosystem, these blockchains have no future due to relatively slow adoption. They believe that the digital tokens of the aforementioned blockchains are overvalued in terms of market capitalization.
The Google developer further mentioned what could have made the aforementioned digital currencies amass huge valuations. In the tweet, he said a restricted circulating supply, market manipulation, and extensive marketing to vulnerability have contributed to the attainment of the overvalued market cap.
Tyler Reynolds tweeted, “Projects with no future worth more than double Yearn.Finance ($0.67B). XRP – $10B BCH – $4.2B BSV – $3.2B EOS – $2.6B ADA – $2.4B XLM – $1.6B How do they have these valuations? 1) Restricted circulating supply 2) Market manipulation 3) Extensive marketing to vulnerable.”
How do they have these valuations?
1) Restricted circulating supply
2) Market manipulation
3) Extensive marketing to vulnerable
— Tyler Reynolds (@tbr90) September 8, 2020
Reactions of Many Crypto Community Members to Reynolds’ Assertion
As expected, Reynolds’ assertion received lots of mixed reactions from several cryptocurrency community members.
A crypto enthusiast identified on Twitter as Allen Hena dismissed the factors that included Cardano (ADA) and EOS, stating that “ADA and EOS should be taken off that list. I own none of either but they are legitimate projects with an active community.”
ADA and EOS should be taken off that list.
I own none of either but they are legitimate projects with an active community.
— Allen Hena (@RealAllenHena) September 8, 2020
Another crypto user who is supposedly an XRP enthusiast made a case in favor of the fourth-largest cryptocurrency, XRP, contrary to Reynolds’ point of view:
“I see XRP with more than 1 trillion $ market cap by end of 2021 and $50B market cap for ADA. Do your own research before spreading FUD. If you have not invested in at least those 2 coins, well then sorry for you.”
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