Skip to main content

Kraken CEO: ‘Defi Scams’ Must Take Their Losses as Way to ‘Enlightenment’

Kraken CEO: 'Defi Scams' Must Take Their Losses as Way to 'Enlightenment'

Jesse Powell, chief executive officer of the world’s fourth-largest crypto exchange Kraken, has criticized decentralized finance (defi) projects, accusing them of being “scams” that enter the market too quickly, unprepared.

In a charged Oct. 26 tweet, Powell said the “scams” should not expect crypto exchanges to bail them out once things go wrong. Preferring to let the defi projects fail in order that they get “enlightened”, he thundered:

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.

Powell’s comments come after a series of hacks this year forced several defi protocols to plead for help from crypto exchanges to block the attackers from accessing the stolen money.

According to ICO Analytics, six decentralized finance protocols have been exploited nine times since February, with the attackers plundering a total of $82 million in multiple cryptocurrencies.

Lending platform Bzx has had the ignominy of being exploited repeatedly, at least on three separate occasions, losing a combined $9 million. In the hack of Sept. 14, which was Bzx’s third, the platform lost $8.1 million but it later recovered all the funds.

Some $25 million was looted from Dforce on April 19, though the attacker returned the money to the protocol. Andre Cronje’s Eminence lost $15 million on Sept. 29 while it was still work-in-progress – rather absurd that investors poured millions of dollars into an untested protocol.

Major defi projects Uniswap, Maker, and Balancer have all lost money to hackers. The latest exploit involves that of Harvest Finance, a $24 million heist. A common thread runs through the hack aftermath – defi protocols asking crypto exchanges to intervene and stop the cyber-criminals from accessing the stolen money.

Interestingly though, Kraken has listed several decentralized finance tokens despite Powell’s harsh criticism. Projects such as Compound (COMP), Yearn Finance (YFI), and Kyber Network (KNC) are quoted on the exchange, which had $477 million in traded volume over the past 24 hours.

What do you think about Jesse Powell’s defi comments? Share your thoughts in the comments section below.

The post Kraken CEO: ‘Defi Scams’ Must Take Their Losses as Way to ‘Enlightenment’ appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/3myt4gC
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more