Coinbase Pro, a platform that is aimed specifically at experienced traders, has announced its intention to accept Year Finance in their own negotiations. A decision that follows the one in favor of other tokens for the DeFi like Universal Market Access (UMA), Band protocol (BAND) e Compound (COMP), demonstrating the platform's great attention to this kind of financial products.
Coinbase Pro in the footsteps of Binance
Coinbase Pro's decision was also anticipated by Binance, which opened its trading at Yearn Finance about a month ago.
A rather controversial decision, if you consider the problems highlighted by the token. The reference is of course to bugs, found by experts, whose announcement had caused YFI to lose about 90% of its market value. Which is still extremely remarkable, settling at $ 33, making it the most rampant cryptocurrency of the moment.
What will happen now
Yearn Finance is a pioneer when it comes to the distribution of tokens in an alternative way. A protocol inaugurated by Compound and which has been imitated by others, often with considerable success.
Precisely for this reason Coinbase Pro has decided not to ignore the phenomenon. The opening of YFI trading is expected from next September 14th, or when liquidity levels have been reached such as to allow it.
Ryan Selkis' warning
Anyone wishing to participate in what many envision as a party, should however pay extreme attention to the words released by Ryan Selkis. The founder of Messaria, in fact, he did not mince words in addressing the discourse on decentralized finance. Practically marking it as a bubble.
According to Selkis, DeFi will soon face the same fate as previously Initial Coin Offering (ICO), in 2018. It therefore increased the dose, equating the projects in question as real Ponzi schemes and stating that the commissions of Ethereum you will eat the profits of users who are not "whales". We mean small users, whose dimensions do not recommend their presence in DeFi.
The phenomenon of rug pull
Selkis' accusation refers in particular to the phenomenon of Rug Pull. Which manifests itself with the appearance of projects which promise interest and loans that have no logical basis. Once they have magnetized many users, the next step is their disappearance, leaving them with the lit match in hand.
A confirmation in this sense was recently that of Sushiwap. The story triggered by the project leader, Chef Nomi, caused quite a stir, in fact, highlighting the dangers of the system. The latter, in fact, after attracting many users, in practice fled with part of the funds destined for the development of the project. Leaving the CEO of the crypto exchange FTX, a crypto exchange, the burden of recovering as much as possible.
Is DeFi going to be wrecked?
A story, that of Sushiswap, which prompted Ryan Selkis to state in no uncertain terms that decentralized finance is simply a scam. Implemented by a small circle of insiders who they will soon have no more victims to plunder.
His opinion is shared by other cryptographic experts, who wonder where the money circulating in the sector comes from. The excessive amount of which cannot be sustained in the long term.