Jesse Powell Says DeFi Scams Should Not Expect to Get Bail-Out
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Jesse Powell Says DeFi Scams Should Not Expect to Get Bail-Out

October 27, 2020      Vandana Malik

Jesse Powell, CEO of Kraken, took over his Twitter on October 26, criticizing the “DeFi scams.” He stated that in no way these scams should expect the exchanges to get a bailout for them. According to him, all these scams should now stop looking upon exchanges to incur their losses. 

Powell mentioned that these scams fail to invest in insurance and audits and in order to be aware of all the complexities, they need to take their losses themselves only. He stated, “I will not accept your attempt at externalizing the cost of your hasty, reckless rollout. Invest in audits, insurance, and please DYOR. Taking your losses is the only way to enlightenment.”

Majority of DeFi Experiments Failed

Despite being in trend, it has been seen that the majority of DeFi experiments have come out to be either a scam or they failed. Back in August, most of the yield farmers deposited more than $400 million to a project named Yam Finance, which failed terribly. This DeFi project has failed within the two days of the launch and the market cap of the project crashed by 90% in very little time. 

The latest DeFi project that became the victim of a huge scam is Harvest Finance. It is reported that the project has been exploited by the attackers and faces a loss of around $35 million. 

Kraken Itself Listed Many Such Tokens

Even though Jesse Powell criticized the DeFi scams very badly, it is seen that Kraken has also listed many of them on its exchange. Those tokens include Compound (COMP), Kava (KAVA) Kyber Network (KNC), Filecoin (FIL), Yearn Finance (YFI), and Uniswap (UNI). Powell was also asked whether Kraken will move back to the Bitcoin-exchange to which he answered that it will be possible if the people will only want a BTC/BTC trading pair. When this will happen, the exchange will definitely move back to the Bitcoin-only exchange.

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#DeFi #DeFi scams #Harvest Finance #Kraken #Powell #Yam Finance
Vandana Malik
Vandana Malik

Vandana has received Master of Arts degree in English from GEU Dehradun. She is currently working as a content writer with Agio Support Solutions and earlier worked as a sub-news editor at Business News and Information Services Private Limited. She is an enthusiastic content writer and aims to bring a compelling yet informative content to the audience. Meanwhile, enhancing her own knowledge in the cryptocurrency and blockchain industry.