Sunday, September 20, 2020
No menu items!
  • News
  • Blockchain
  • Cryptocurrency
  • Contact Us
More

    LItecoin (LTC) Creator Charlie Lee Reveals Why He Does Not Trust DeFi

    Must Read

    Jed McCaleb Effects about $3 Million Selloff, As XRP Liquidity Indexes Stay Low

    Going by the recent data released by Bithomp, Jed McCaleb, who co-founded the cross-border payment giant, Ripple, has initiated...

    Analyst Says XRP Price Has Potential to Surge By 30% Once It Breaks This Resistance

    A cryptocurrency analyst identified as TiborVrbovsky has opined (using an illustrative chart on Tradingview) that the fourth largest digital...

    Kraken Exchange to Return to Japan with XRP, ETH, LTC, BCH, XBT Spot Trading

    As recently announced, the top cryptocurrency that just became a United States Bank after winning bank charter approval, will...
    Avatar
    Solomon Odunayo
    Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.




    The creator of Litecoin (LTC) Charlie Lee has recently revealed the reason why he does not trust Decentralized Finance (DeFi). This comment was in response to a thread shared by DeFi Pulse about the Fulcrum situation in bZx, a financial primitive that enables shorting and lending.

    DeFi Pulse reported the development regarding the action taken by bZx in taking down Fulcrum for maintenance, which likely played out about two days ago after an exploit that ended in the loss of a portion of Fulcrum’s ETH.

    DeFi Pulse Shared this, “bZx took Fulcrum down for maintenance late last night – Shortly after, team member Kyle Kistner disclosed that an exploit caused the loss of a portion of Fulcrum’s ETH – Fulcrum contract is frozen, remaining funds are safe.”

    Afterward, the Creator of Litecoin (LTC) Charlie responded with a revelation about the reason why he does not trust DeFi. In the tweet, he wrote that DeFi is the “worst of both worlds”.

    He pointed out that most DeFi are controlled by centralized third parties, believing it’s only decentralized in context but not in reality.

    Charlie Lee shared, “This is why I don’t believe in DeFi. It’s the worst of both worlds. Most DeFi can be shut down by a centralized party, so it’s just a decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization. So how is this better than what we have now?”

    What Does DeFi Mean?

    Decentralized Finance (DeFi) is a conventional financial tool built on a blockchain such as Ethereum. It’s founded on open-source protocols or modular frameworks.

    DeFi is used for creating and issuing digital assets. They are also designed to confer significant advantages of functioning on a public blockchain like censorship-resistance and improved access to financial services.




    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest News

    Jed McCaleb Effects about $3 Million Selloff, As XRP Liquidity Indexes Stay Low

    Going by the recent data released by Bithomp, Jed McCaleb, who co-founded the cross-border payment giant, Ripple, has initiated...

    Analyst Says XRP Price Has Potential to Surge By 30% Once It Breaks This Resistance

    A cryptocurrency analyst identified as TiborVrbovsky has opined (using an illustrative chart on Tradingview) that the fourth largest digital currency by market capitalization, XRP,...

    Kraken Exchange to Return to Japan with XRP, ETH, LTC, BCH, XBT Spot Trading

    As recently announced, the top cryptocurrency that just became a United States Bank after winning bank charter approval, will soon reopen in Japan with...

    Galaxy Digital CEO Mike Novogratz Reveals Percentage of BTC and ETH in His Portfolio

    The CEO of Galaxy Digital, Michael Novogratz, has revealed the percentage of Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies in his portfolio. The veteran cryptocurrency...

    Ripple Enhances Its Partnership with Bill & Melinda Gates Foundation

    As a report has it, Ripple, the US-based cross-border payment firm has become a sponsor member of Mojaloop Foundation, which implies that the payment...

    More Articles Like This