• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news

Economist On DeFi: Crypto Insiders Aware Tokens Are Worthless, Speculate Anyway

Tony Spilotro by Tony Spilotro
8 months ago
in Cryptocurrency news, Ethereum
Reading Time: 3min read
defi crypto speculator

Wooden Shiny Roulette Details in a Casino with Blurry People and Croupier in Background

Advertisement

The crypto market has taken a strange turn in recent weeks. What started out as a perfectly sustainable trend of rapidly growing DeFi projects, has turned into a weird world of worthless assets.

Rather than new money coming in, as one economist points out, it is crypto insiders who know better that are buying these worthless tokens, ready to gamble and speculate anyway. Is decentralized finance turning into a mini-bubble that’s ready to pop, or is this free-market experimentation at its finest?

Growing DeFi Trend Reaches Experimental Phase, Free Market Testing Innovative Investing

The fact that the crypto market remains highly unregulated is together the good, bad, and the ugliest part of it all at once. The positive is that it gives devs and other innovators plenty of wiggle room to launch new experimental projects in the world’s freest market.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The bad is that this means that some experiments can go wrong, and investors are left getting the wrong end of the stick. The ugly is that manipulation and bad actors remain, but crypto insiders at this point should know better at what to avoid.

Oddly enough, however, it lately is crypto insiders that are gambling the most, adding fuel to a blazing hot fire that’s bound to burn someone eventually.

Related Reading | Be Fearful: Crypto Market Greed Reaches Second Highest Point In History

Recently, decentralized finance has taken off as an industry in and of itself. It is as if DeFi has detached itself from the rest of the crypto market, and is in its own miniature bubble, reminiscent of the ICO boom.

Just like then, Ethereum is soaring in value due to the projects being built and launched on the smart contract platform as ERC20 tokens. Projects are popping up left and right, and investors are getting rich overnight.

Uniswap, a decentralized exchange and “automated liquidity pool” where devs can launch new tokens of any type, has birthed a subset of cryptocurrency rejects designed to have no value whatsoever. Some of the descriptions of these projects outright claim to have no use case, yet liquidity is being pumped into these coins.

Some have pumped thousands of a percent in days, prompting even more money to flow into these coins.

Crypto DeFi 2020 has been a story of drastic repricing driven by profit-seeking crypto insiders, without much newcomer participation. Even in the cases where tokens are entirely worthless, this time most investors know they are speculating on worthless tokens.

— Alex Krüger (@krugermacro) August 14, 2020

Why Are Experienced Crypto Insiders Risking It All On Worthless Tokens?

The main difference between now and the ICO boom is that this isn’t new money getting duped into buying the next big thing. According to Alex Kruger, economist and crypto market spectator, this is crypto insiders who know the ropes, still willing to take a gamble on these nothing but speculative assets.

These same crypto insiders saw the rise and fall of ICOs, the bubble burst, and assets come tumbling down. But the allure of quick and easy money is often worth the risk for many. Further highlighting the issue, is the fact that several crypto investors are sitting in huge profit from an over 60% YTD rally in Bitcoin, and several hundred percent gains in many altcoins.

Related Reading | Ethereum Beats Bitcoin, Gold, and Stocks In Stimulus Check Investment

The DeFi boom has reignited interest in crypto, and already a bubble may be forming. But this bubble appears to be contained to just DeFi only, and while it is having a positive impact on all of crypto, the biggest downside is in gambling on coins with zero value – yet that’s exactly what crypto insiders are doing.

Further hinting that a bubble is forming, is the fact that the crypto market fear and greed index has reached a level not seen since the 2019 top, and marks one of the highest readings in the index history.

Tags: altcoinscryptodecentralized financeDeFiethereumUniswap
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a global remote work leader with a decade of award-winning content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

Related Posts

Brandt: You’re Doing it Wrong if You Accumulate Dollars Over Bitcoin

Brandt: You’re Doing it Wrong if You Accumulate Dollars Over Bitcoin

5 hours ago
Mimo DeFi

Filling a Market Gap: Heart of TenX Journey to Mimo DeFi

9 hours ago
Bitcoin BTC BTCUSD

How An Ex-CIA Director Proved Bitcoin Use in Crime is Declining

19 hours ago
Ripple XRP XRPUSDT

XRP Above $2? Why DeFi Integration Could Be Game Changer

21 hours ago
Binance Coin Coinbase IPO

Coinbase Listing Sends Binance Coin (BNB), Exchange Tokens Soaring

21 hours ago
Bitcoin BTC BTCUSD

Bitcoin Funding Flips Bullish, But Are Liquidations Imminent?

22 hours ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

Crypto Exchange Platform AAX Reveals HKD, SDG, and GBP as the Top Three Fiat Currencies Deposited In April

April 14, 2021

Polkadex IDO Launches On Polkastarter on the 16th of April

April 13, 2021

Fast-Growing Exchange Bityard to Launch Its First Contest for Global Traders

April 13, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.