{"id":431498,"date":"2020-07-21T01:00:56","date_gmt":"2020-07-21T01:00:56","guid":{"rendered":"https:\/\/ktsl888.com\/?p=431498"},"modified":"2020-07-20T18:07:31","modified_gmt":"2020-07-20T18:07:31","slug":"next-defi-star-warns-crypto-advisor","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/next-defi-star-warns-crypto-advisor\/","title":{"rendered":"Be Wary Searching For The Next DeFi Star Warns Crypto Advisor"},"content":{"rendered":"

Each week, it feels as if another DeFi project becomes the talk of the crypto market<\/a> with buzz surrounding the astronomical gains these assets keep bringing investors. It’s got investors on the hunt for the next big breakout star in the hot to trot world of decentralized finance.<\/p>\n

However, one hedge fund manager and crypto advisor is warning that it may be dangerous to dive in headfirst to new DeFi projects in hopes of discovering the next big thing.<\/p>\n

Decentralized Finance Bandwagon Keeps On Trucking Along<\/h2>\n
At the tail end of 2019 and into early 2020, the decentralized finance (DeFi) craze caused Ethereum to rally by over 125%. The asset’s best new use case went parabolic in user growth<\/a>, as well as the amount of ETH locked up in related applications.<\/p>\n
Soon, that interest and booming trend made its way into several Ethereum-based ERC20 tokens each with different benefits related to DeFi.<\/p>\n
Related Reading | Fund Manager: DeFi Will Propel Ethereum To $1 Trillion Market Cap<\/a><\/strong><\/em><\/p>\n
Some assets allow for another big new crypto buzzword called yield farming. This let’s crypto holders put other assets up for borrowing, earning an interest yield on any asset lent out.<\/p>\n
Being able to make an additional return on investment on top of asset valuation growth has prompted these assets to skyrocket. The trend is showing no signs of slowing, and each week another DeFi-centric token steals the limelight.<\/p>\n
Weeks ago, it was Compound<\/a>, and this week, it was LEND<\/a>. Now, its got investors on the hunt for what could be next. But it could prove to be dangerous hunting grounds, according to one crypto fund manager.<\/p>\n
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0\/ As the major DeFi tokens continue to surge in value, it is tempting to try and find the next undiscovered DeFi gem.
There is a reason the DeFi majors are the prime beneficiaries. They are battle-tested and are positioned to capture much of the liquidity flowing into DeFi.<\/p>\n
— Kelvin Koh (@SpartanBlack_1) July 20, 2020<\/a><\/p><\/blockquote>\n