Pantera Capital representative believes that the DeFi industry will be the basis for the growth of the main crypto coin
The development of decentralized finance projects could be the driver for the next bull cycle. This opinion was expressed by the investment director of Pantera Capital Joey Krug. According to him, despite the difficult last year for the crypto industry, the DeFi direction continues its development.
“DeFi protocols that typically work with anonymous counterparties have continued to work. There are several reasons for this, including the use of aggressive risk control measures. The irony is that centralized organizations call such measures “harsh and inefficient.” At the same time, the centralized creditors themselves give users too favorable conditions, which results in the bankruptcy of such organizations,” Joey Krug emphasized.
The top manager of Pantera Capital also noted that the algorithms on which DeFi was created turned out to be more reliable and better than “trust relationships”, with the help of which centralized lenders convince users to take out a loan or invest funds.
“DeFi projects just can’t claim to be trustworthy, which is why they went to MIT and generally stand for all that is good. On the contrary, their approach is that you should not trust anyone just like that. In addition, they usually work on the basis of open source, and anyone can check the algorithms,” Krug recalled.
For wider adoption of DeFi, it is necessary to solve the main problems in this area, says the investment director of Pantera Capital. This is not the most comfortable software for working with crypto wallets, high commissions, especially on the Ethereum network, and the lack of a convenient method for converting fiat to digital currencies.
Krug believes it will take up to three years to resolve these issues. And then, the development of DeFi projects will become a prerequisite for a new bullish cycle.
And Visa CEO Al Kelly recently said that his company has a positive attitude towards blockchain. The company allowed the integration of distributed registry technology into the service.
It can become the foundation for a new generation payment platform. Kelly also noted that stablecoins will be an important part of the financial industry in the future.
“It is too early to say, development is at the very beginning. But we continue to believe that stablecoins and state digital currencies have the potential to play an important role in the payments industry. We have many initiatives in this direction,” said Visa’s top manager.