Charles Hoskinson: DeFi Bubble

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The decentralized finance (DeFi) and non-fungible token (NFT) sectors are at a stage of development where it is difficult for the market to assess their fair value. Charles Hoskinson, the head of the IOHK company behind the Cardano cryptocurrency, said this in an interview with Forkast News.

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“I think there is a bubble in the DeFi market. It’s common – NFT and DeFi are just the latest, ”he said.

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Hoskinson compared the situation in the decentralized finance segment with the ICO market in 2017. He stressed that bubble formation is not necessarily a bad thing. DeFi is the “logical next step” for cryptocurrency investors, he said.

According to the head of IOHK, the emergence of “decentralized app stores” and the introduction of cross-chain solutions will contribute to widespread adoption of DeFi. Under the shops dapps Hoskinson understands platforms like Google Play and the App Store.

In August, the head SEC Gary Gensler warned of the strengthening of DeFi regulation and said that the decentralized model of projects in this area does not give them immunity from the Commission’s oversight. Hoskinson sees the agency’s attention as evidence of the sector’s rapid development. He also said that bureaucratic difficulties would only benefit the industry.

Previously, the IOHK team activated the Alonzo update on the Cardano mainnet. After the hard fork, developers have the opportunity to deploy smart contracts on the blockchain of cryptocurrencies and create daaps based on them.

Note that 99% of smart contracts deployed in Cardano remain inactive – they have a temporary block status.

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