Challenges in the DeFi Sector
Date: 2023-10-07 Author: Dima Zakharov Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Challenges for the DeFi Sector: ThorSwap Closure and Max Keiser's Statements
The decentralized finance (DeFi) sector continues to face challenges, and one of the recent events highlighting the vulnerability of this space was the closure of the DeFi platform ThorSwap. This move was triggered by a series of events, starting with an attack on the FTX exchange in 2022, carried out by a hacker. Following this attack, the hacker attempted to convert their cryptocurrency assets using ThorSwap.
Although ThorSwap decided to suspend all operations on the platform, the hacker still managed to convert a significant amount of Ethereum (ETH) into tBTC through the Threshold Network. This raised concerns in the industry and raises questions about the security and reliability of DeFi platforms.
Max Keiser, a well-known economic commentator and entrepreneur, expressed his concerns about the consequences of this incident
He asserts that the closure of any DeFi platform to prevent illegal operations undermines the reputation of the entire DeFi sector. This creates two negative alternatives for DeFi platforms: either accept the risks of converting stolen funds while remaining decentralized or suspend operations with digital assets to prevent wrongdoers from profiting.
Keiser also criticized cryptocurrencies, stating that all cryptocurrencies except Bitcoin (BTC) are fraudulent and should be banned. This view calls into question many projects and tokens, including Ethereum (ETH). He also supports the actions of the U.S. Securities and Exchange Commission (SEC) against centralized cryptocurrency exchanges and shares the opinion of Gary Gensler that virtually all digital currencies, except BTC, should be considered unregistered securities.
As of October 7, 2023, the price of Bitcoin (BTC) was $27,960, and its market capitalization reached $545.43 billion. This underscores the importance and resilience of Bitcoin as the leading cryptocurrency, a fact that remains unquestioned by Keiser.
The events related to the closure of ThorSwap and Max Keiser's statements raise important questions about the security, regulation, and future of the DeFi sector. This serves as a reminder to all participants in the cryptocurrency community about the importance of combating fraud and complying with norms and regulations to ensure the long-term stability and growth of this innovative field.
