OKEx CEO: Many People Will Lose Money in DeFi

OKEx CEO warns that DeFi investments carry risk of losses.

OKEx chief executive Jay Hao spoke about the prospects for the decentralized finance market, but warned investors about the risk of losing money.

In an interview CryptoPotato, he noted that the exchange has been monitoring the DeFi sector for a long time and fully supports the innovations associated with it. The market could provide access to financial services to billions of people who lack access to traditional banks.

Hao did not rule out that the current “bubble” in the sector could burst. This would lead to the loss of money for most investors, while others would profit. He noted that such a scenario would have a positive impact on the fundamentals of Bitcoin and Ethereum.

“If the DeFi bubble bursts temporarily, it will benefit BTC and ETH, as they will receive a large influx of capital. The hype may subside, but only in the short term, because the advantages and potential of DeFi are too obvious to ignore,” Hao said.

The DeFi market continues to grow. At the time of writing, the total value of assets locked in the sector stands at $7.76 billion, according to DeFiPulse. The top trio remains Aave, Maker, and Curve Finance.

In July, Ethereum co-founder Vitalik Buterin stated that many users of DeFi products underestimate the risks of smart contracts.

Later he admitted that he was not interested in yield farming in the sector.

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