DeFi: Crypto’s ‘Wild West’ of Finance | WSJ

Many are calling decentralized finance, or DeFi, the “Wild West of finance.” This fast-growing industry aims to provide automated banking services for cryptocurrencies to everyone, with no middle men. But DeFi is still in its early stages, which means there are risks. WSJ explains. Photo illustration: Tammy Lian/WSJ
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#DeFi #DecentralizedFinance #WSJ

[@abdou4alg]

You're talking about regulation which is something against the core philosophy of decentralisation... crypto is the anarchist's dreamland

[@maxmccord9883]

It will be really interesting to see how it plays out. The US gov already regulates on conversions to/from USD, and effectively requires you to link your wallet addresses to your social security number if you use any major exchange. I can see a future where you're legally obligated to disclose all wallet addresses, and where some central agency automates fraud detection and tax collection. In many ways it actually makes their job more efficient, as long as they can enforce by keeping things non-anonymous

[@h.c4898]

I wouldnt call it ananchist. The blockchain is at its origin an open source project. There are smart people in it that rather stay under the limelight. It's a collaborative effort for the beneift of the community. non profit. People in it are more honest than the people holding your wallets in the financial system you live in today.

[@frankwang8611]

Paul says DeFi is recreating the financial system in a digital format. That's BS. DeFi is going to be completely different format of finance, NOT A RECREATE, with no centralized party that controls assets and central clearinghouses for verification and consolidation; it's about making everyone a stakeholder where every transaction can be verified by anyone.

[@TheRollupCo]

A great way for newcomers to start out and get a feel for DeFi. Thank you for making a vid

[@ev.c6]

Wait until regulation stops people from drawing their “shady” currency.

[@nemanjatatalovic6123]

The most interesting thing about DeFi is banks will use it too. Basically, some crypto projects bridging a gap between CeFi and DeFi, and banks are joining in the crypto space. It seems banks don't want to miss the chance to make more profits.

[@transforgoku]

Of course, as long as it is done through *OTHER PEOPLE'S MONEY,* they (banks) won't be missing from any opportunity...

[@hfredydl]

Thank you… I really didn’t understand the definition of the term until now!!!

[@TamTam-fw8kb]

It's a pretty horrible video explaining blockchain. Blockchain was created to completely decentralize the financial system, so ANY form of regulation basically kills the entire idea.

[@TamTam-fw8kb]

or any centralized authority

[@ja_aq.ov_]

@@TamTam-fw8kb if regulation destroys a decentralized system, it's not decentralized.

[@lillianmurphy3937]

Great video!

[@andrewgreen5067]

Great video

[@IamColt13]

It’s governed by code, governed by math.

[@xuimod]

Not rugpulls. Rugpulls aren't governed by math or code.

[@giovannip8600]

If he followed crypto from 2013 he should be quite wealthy lol

[@GubeTube19]

Congrats..... You can read a chart

[@giovannip8600]

@@GubeTube19 I wish I could read more of them

[@peanutboy123]

If you bought Bitcoin at $100, you would've sold at $200, $1,000 if not.

[@mister369]

Wouldn't be surprised if he shitted on it for the entire decade. Trying to make himself feel better now

[@ariels8538]

They’re making it sounds as if traditional banks or exchanges don’t rely on computer programming to execute transactions

[@h.c4898]

it's a crypted automated protocol. It runs by itself. It's 100% correct without the human factor at the speed of light. People dont understand these protocols replace banks, insurances and only understand for what it is programmed for.

[@israel_Ethp]

@@h.c4898 I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@giovannip8600]

Enough with the government controlling how much value the money has, enough with inflation to cover risky moves by multibillion corporations

[@cocoamelon227]

Lol ok kid praise your crypto

[@zhin4362]

@sidney xin if you don't use the youtube dark theme

[@PG-tc6os]

If something does not make sense, I rather invest somewhere else.

[@PG-tc6os]

@Lou+❶❺⓿❶❸⓿⓿❸❼❽❹ 😂🖕

[@PG-tc6os]

@Lou+❶❺⓿❶❸⓿⓿❸❼❽❹ no thank you 😂🖕

[@Zov631]

Period

[@GP-bd9xq]

Have you taken a serious analysis and research to try to understand?

[@israel_Ethp]

@@GP-bd9xq I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@robertbl7500]

Thank you! ! ! I finally understand crypto and blockchain a little better! ! !

[@LePepo]

4:07 Soooo…… just like any other system?

[@deshpardeshkochautari8910]

big supporter 💪💪✋💖💓

[@suhdude7100]

DEFI is here to stay!

[@israel_Ethp]

I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@AliKhan-fs3rm]

What happens if borrower defaults or disappears?

[@deniaberson7708]

Provide type fast handle early , w.a

[@TheFluffyFix]

Terra anchor was an amazing idea

[@user-vx3mu9ec9d]

Wow! Such a great video sir, this video has put me through on how to make money on DEFI and I appreciate that. I have actually been getting along with reef chain and this video has made me know much about defi. Reef Chain is an EVM compatible blockchain for DeFi, NFTs and Gaming.. Thanks ones again for the great video sir

[@aranyabhattacharyya3436]

I have a question regarding the security of the Blockchain technology. From a video that i recently watched, it said that each block is assigned an unique identification number. If a hacker breaks into the network and attempts to tamper with the unique identification number, the blockchain becomes redundant. Shouldn't this feature itself actually reduce the risks of hacking?

[@philippebolduc4057]

The hackers doesnt change the block of the blockchain. They use vulnerability in the code (smart contract, website, computer of the companie) written by human developers to find a loophole to get the money out. So what hackers do is simply use the code in a way the developer didnt think it could be used. Here’s an other debate: if the code is suppose to tell me what i can do and cant do (a premise of defi),and i find a way to use it to take millions of dollars, is it illegal to use it? So this is not a technology problem but a human error problem. And this is pretty much an impossible problem to solve as long as code are written by human. That’s why these project will be very hard to secure for real.

[@michael2275]

No understanding of why DeFi is unstoppable and cannot be subject to regulation. Amateur hour over here.

[@pictzone]

It's not unstoppable.. If they regulate the inflow of money into crypto (exchanges) they basically regulate everything else

[@Theprofessor1212]

@@pictzone you must be talking about centralized exchanges like coin base and Binance. If they were able to stop the money flowing from A to B, money laundering wouldn’t exist.

[@zerotwo7319]

Defi is completely stoppable because it runs on Amazon web servers. No one individual run a ethereum node. Bitcoin and Bitcoin Finance is unstoppable.

[@pictzone]

@@Theprofessor1212 I'm actually talking about the exchange of fiat into the crypto space. How would you use defi or dex if you can't convert your salary to crypto? Use the black market? If they make it illegal, the majority of people wouldn't risk that.

[@michael2275]

@@pictzone Peer 2 peer or dark web. You are very naive. Bitcoin will always be available if you want it.

[@munzmedia2917]

Question for the masses: Is the smarter money then on cryptocurrency or blockchain technology as a whole?

[@YoungDen]

Those are one in the same btw. Each currency whether coin or token are part of a Blockchain.

[@GP-bd9xq]

The protocols that have the better technology than it's competitors is where the smarter money goes into. Each has their pros and cons and varies depending on the user's situation and finances.

[@jaymarx]

Much better competition to build, than previous competition of invade and destroy

[@Mr.BobsDog]

Not wrong. Blink and you get rug pulled, devs abandon project, get dumped on. Lots of crooks and inexperienced cowards. Experienced make the money, newbies pay the OGs for the lessons.

[@irvingr7538]

Quit bullshitin DYOR LIKE stocks or any company can vanish.

[@TheSpartan3669]

@@irvingr7538 stocks are more heavily regulated. If directors attempt a "rug pull" they'd be liable for fraud.

[@kevinmartinez8267]

ethereum fees are going to kill defi... no better than a traditional bank on that aspect.

[@cocoamelon227]

That's the reason why crypto won't replace fiat

[@h.c4898]

There are many forks to the Etherum network now with almost no fees. Polygon, fantom there are many more. Ethereum 2.0 is about to release.

[@israel_Ethp]

@@h.c4898 I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@KylePapili]

What this video fails to address is the feasible "enforceability" of whatever so-called regulations are yet to come... This is what governments should concern themselves with, definitely warrants a committee

[@rayleeaustralia]

This would contradict defi in the first place

[@KylePapili]

@@rayleeaustralia and DeFi contradicts centralized government

[@israel_Ethp]

@@rayleeaustralia I 1,000 % agree with you on this

[@JoseGonzalez-yw5iz]

Wasn't bitcoin supposed to be the opposite of tradition banking it seems like is following the same steps.

[@peterisawesomeplease]

No it never was supposed to be the opposite. It was supposed to be a replacement.

[@h.c4898]

just digital money. Defi came with Ethereum. It's layer absent from bitcoin invented later.

[@davidwalsh9807]

This video is brought to you buy big banks 🏦 and while we are scaring people that difi is bad the same big banks are buying it

[@user-xf5kf4ho3p]

Hilarious

[@israel_Ethp]

I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@noctis2149]

"you don't know who wrote the code" That shouldn't matter if the code works "You don't know how safe the code is" That's what an audit is for

[@samuellee2394]

MDB is releasing a new token, Infinity. It has a low buy/sell tax but is designed to be hyper deflationary and volatile, making swing trading possible. I have not heard of any tokens like this before. Also, Infinity will support other tokens in the MDB ecosystem due to increased buy pressure on MDB and more volume on Phoenix +. Might be worth looking into

[@kamsebong3473]

Even though DeFi is still in the early stages it would surprise anyone the level of innovation going on there. Some projects are really heading towards the right direction, since the major problem with anyone going into DeFi is always security and privacy , when you invest in projects like Unilend Finance you will not just enjoy this but with the lending and borrowing services you get to earn alot.

[@faisalabdulrazzaq8570]

Love it

[@TomNook.]

Defi and especially the NFT marketplace has to be regulated fast. Every day more and more scams are occurring.

[@algebruh_m8652]

No because it then ruins the point of Defi, keep it as it is. Just like with real cash, you can get scammed too, it’s not a crypto only thing…

[@TomNook.]

The nature of the scams are most definitely defi only.

[@h.c4898]

@@TomNook. there are idiots everywhere not just in defi. Defi is similar to registering with a broker. You enter the trade world' it comes with financial instruments. Thats exactly what defi is but in an automated way. It's a high risk activity. People think it's an entry to PS5. lol

[@israel_Ethp]

@@h.c4898 I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@Y2KMillenniumBug]

Replacing one fiat with another fiat generally means they can run off so much faster and get away with it...🙄☝️👎

[@faren6503]

The “sheriff” here has no ammo

[@khez_]

👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼👏🏼

[@ougawougajr.4983]

No really.78% of DeFi is done in one coin standard.

[@HomeSecurityandSolor]

Do you know who wrote the banks program? No

[@mkanwar21]

yup! at the end of the day, it all comes back to the R word. Regulation.

[@xuimod]

I would never put my money in unregulated Defi. Wait until Defi is properly regulated. Regulation needs to start with stablecoins.

[@sadeepweerasinghe]

lol

[@johnv5156]

ok chief.

[@oswac.v5442]

No

[@h.c4898]

People dont understand everything thats recorded in the blockchain cant be altered, changed or deleted. It's in the blockchain forever. I wonder how govs gonna regulate that.

[@jebremocampo9194]

You won't be able to regulate DEFI, that is the whole point of it.

[@brincX]

The Defi 2.0 project on Ethereum layer 2

[@cocoamelon227]

People who say crypto will flip traditional banks I laughed into them - government

[@yurinator9613]

There are tools out there for scannig contracts for free, It saved me so much money

[@mikeoxlong403]

What tools? I used to use Rugscreen, but they charge 4.25 now for a single scan and the service isn't even all that good.

[@911dogy]

Hey guys..yeah id like to know these tools too, been searching but cant find anything legit..

[@yurinator9613]

Market move ai

[@911dogy]

@@yurinator9613 thanks, will deffinetly check check 👀

[@mikeoxlong403]

@@yurinator9613 looks pretty and seems to have a decent overview of the contract. Any plans for LP checker?

[@Mr.X.Cosmos]

Do some more research.

[@Y2KMillenniumBug]

When they start trumpeting the advantages and explaining with conviction how well planned and good it is, make sure you don't jump in to make purchase. Haha.. insiders always run off with the money before you can sell..

[@valveclearance8699]

I invest in BTC, ETH, BNB, ADA, CARDANO and SHIB. Crypto is the future.

[@Zov631]

Have u ever bought something with these “coins “ lol .

[@cocoamelon227]

Ok kid buy me some chocolate with ur VIRTUAL COINS

[@RickDaddyTV]

#Cardano #ADA invest now ... or later.. BUT either way you will invest in Cardano.. just better to be early than late! Mark these words.. this blockchain will innovate the world of finance 10fold.. 🤝

[@egonwong7958]

This is a video of those in power talking about those who are trying to decentralize power. Where's the bias?

[@dchen1010]

Defi is the wild wild west of finance... a place where 10% APY is considered very low haha!! Wonderland is paying you 80,000%+ APY lol!!

[@israel_Ethp]

I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@Xassets]

This is a horrible representation of DeFi and history will prove that in time.

[@Jupiter_9911]

But why was the Sheriff Black? Why not an indigenous woman?

[@dickmurray3488]

Hi noin

[@Dracleon]

Best early DeFi right now is Nemesis DAO on the BSC network, its gonna be the Olympus DAO of BSC

[@varunnaik7015]

it's really not. it's just a bunch of apes chasing apy

[@danjohnston9037]

When the cowboy hats show up watch out

[@franciscojosecarasocoronad5265]

So many years ago, remember the 1929 economic shutdown . TAKE CARE WITH THIS MIRAGE. It’s so speculative market.

[@staminadaddy]

Do you know what is it, boomer?

[@lawofparsimony]

and nothing was learned from this video

[@rayleeaustralia]

If decentralized then the transaction fee should be minimum. But from what I understand Bitcoin transaction fee is quite high

[@h.c4898]

BItcoin and ethreum mining and gas fees are quite high. However, Etheurem is about to release 2.0. Meanwhile there are better networks and platforms that sprouted since with better scalibity and perfomeances, low gas fees we're talking pennies now. The space has quite come a long way and is still evolving.

[@GP-bd9xq]

Solana is good example of cheap transaction fees! Totally not biased lol

[@abuferasabdullah]

It’s to launder Money 😉

[@Thebreakdownshow1]

Definitely defi is quite the hype right now.

[@watchdealer11]

APY of 120,000%...🤨 Gonna risk a small amount anyway 😂

[@zainshamim343]

Going from 10 billion to 100 billion is huge. Going from 100billion to 1000billion is a much bigger jump. Both are 10x but ones way easier

[@MusicGameFinatic999]

@@zainshamim343 math checks out

[@israel_Ethp]

@@zainshamim343 I totally agree with you on this !!! A lot of this people don’t understand the power of smart contract & Decentralization !!! Take a look at the Total value locked in DeFi last two years ago was about $20 billion, just at the first 9 months & as of today TVL in DeFi is off to $210 Billion & it will only keep skyrocketing, DeX Exchanges like Uniswap are life changing !!! A lot of new crypto Billionaires will be made this decade no doubt !!!

[@danielceja3729]

Attempting? Lol Defi isn't BANKING . this propaganda cracks me up. Not even the same leage. It's already made banking obsolete. It don't need to attempt lol

[@truongngo4786]

marks the end of the world. Freaking scamm

[@_vilepenguin]

"Once a week" a security issue or fraud. Try hourly.

[@PFULMTL]

Maybe they mean rugpull?

[@ChristopherNicholasWoodsJones]

Smart contracts are literally open source; you can audit the code before you invest, counter to the complete lack of transparency in other asset classes… but, feel free to continue to let me know what side you’re actually taking in this argument without telling me what side you’re taking in this argument… in this complete farce of objective take on the mechanics, innovation and technology that are moving future markets.

[@SuthesanSA89]

You are making it easier for criminals and terror groups? Without Rules and Law we are animals.

[@luke8838]

Subtle Ali Baba buy signal haha

[@irvingr7538]

Comp

[@auro1986]

this means all can see who has how much money in their accounts?what is next? no personal wealth?

[@muskduh]

if the central banks can launder trillions of dollars, so can we

[@deepanas5597]

lollll

[@wildpants9347]

Defi? more like Cefi.

[@Rinzorinz]

Can i take a piece of paper write it with my pen $5 and convince people that its worth 5$… sounds like new idea tho 😊

[@mindgamewords]

There are companies that will insure your defi assets

[@AlgoNudger]

a sheriff (Bank for International Settlement) will eventually show up to make DeFi centralized! 🤣🤣🤣

[@xuimod]

RUG PULLS..... Regulations are needed to protect against rugpulls in Defi.

[@user-wc4ct6hw7e]

kzbin.info/www/bejne/nmfQZatjeNOAjJo chainrunnerQ!!!!

[@teamtryxgg281]

My son lost 1,000 dollars last night in crypto currency investment

[@PavlosViscacha]

You can’t quite “lose money overnight” unless the currency or the company you invest in goes totally bust. I think what you mean is your investment value went down overnight. Value fluctuation is normal and it doesn’t mean you sustain any losses unless you actually sell your investment. Just wait, and eventually it will go back up.

[@teamtryxgg281]

@@PavlosViscacha you are exactly right. That's exactly what happened.

[@mindgamewords]

We had a little dip. That's natural. Your son entered at the all time high (ATH) for most crypto. Keep adding to it. Crypto is growing at 113% a year.

[@wikileaks8252]

Because he was trading with leverage. And he is new to crypto. Every one lose in trading in 1st 6 to 10 months.

[@moonie1056]

Lol the banking system is a joke

[@memphisginger2751]

As the economic crisis keep rising, one needs to have different streams of income, a well detailed diversified investment portfolio in the financial markets is needed to survive, as well as secure a profitable investment future, Thanks to Desiree Madsen for improving my portfolio,

[@harryrichards4226]

Mrs Desiree changed my life because of the huge profits I got from investing with her.

[@clintonmichaelson697]

You trade with Mrs Desiree too? wow that woman has been a blessing to me and my family.

[@timothyandrews3443]

I’m new at this, how can I reach your broker?

[@christabelbillings3836]

I was skeptical at first until I decided to try. It’s huge returns is awesome! I can’t say much.

[@memphisginger2751]

@@timothyandrews3443 You can add and communicate with her on TELEGRAME, with the Number below.

[@9Risky]

“Congrats to everyone who is early and who found this comment”

[@zainshamim343]

Incoming “fake mister beast” comments

[@theWebmasterify]

Ah yes another botted checkmark account (for context: kzbin.info/www/bejne/i5OoimOlrJWtjM0 )

[@staminadaddy]

@@zainshamim343 ahem, FAKE MR BEAST

[@chubbyBunny94]

#loser

[@TheFluffyFix]

Luna to the MOON

[@jjb-bros9951]

Radix

[@kimcastro2398]

If only I had one BTC for every final dip before pump. #Bitcoin RSI is currently using previous resistance as new support again

[@kimcastro2398]

tele williamsmansion alright to discuss more about the market and the dip too

[@SketchyOnReviews]

XRP

[@lighttheoryllc4337]

It is me, or does the voice of the male presenter sound very fake feminine gay sound??

[@stanley4318]

I

[@williamsjones2375]

I have been part of his profit for a long time, I can boast highly about him. I made about 8BTC from 2.1BTC after two weeks of trade with Kevin.

[@joycegeorge4755]

I have tried 5 programs and pattern before reaching out to Kevin, I can swear his program is the best for Now

[@stanley4318]

@steph monik Jhnkuria

[@stanley4318]

@steph monik Jhnkuria ..Te le gr am,.📧📧📧

[@IkaikaArnado]

Pssst, I got 903 Bitcoin in three weeks by talking to Kev. It's safe to say my cocaine and hooker fund is sufficiently padded. Thanks Kev!

[@silentcrypto8983]

####DogeZilla#### buy the dip before it explodes!!!!!

[@nufrepusgnirbi]

government intervention is the risk

[@h.c4898]

yup.

[@bayboy1982]

BUY XRP RIPPLE NOW

[@susanmaria3139]

I'm so happy, I have been earning $18,000 returns from my $6,000 investment every 13 days

[@leowilliama9740]

After watching so many KZbin tutorial videos about trading . I was still making losses until Mrs Graham Stephan Cassidy started managing my investments now I make $10,567 weekly. God bless Mrs Graham Stephan Cassidy she’s been a blessing to my family.