Open Now
Open Now
Watch now

MetaMask co-founders claim bitcoin isn't 'finance's future' yet, attack CeFi systems

The co-founders of MetaMask accuse Celsius and Voyager of not being upfront and mislabeling their products as DeFi.

During an interview with Vice, MetaMask co-founders Aaron Davis and Dan Finlay discussed the downturn and the pitfalls of going all in on cryptocurrency, among other things.

Davis said that purchasing cryptocurrency is similar to gambling as he commented on the development of frauds, Ponzi schemes, and hacking. He went on to say that the current condition of cryptocurrencies demonstrates that it is not yet "the future of finance," and that people who favor going all in on crypto are promoting "very risky conduct."

The current market fall has humiliated cryptocurrency investors, emphasizing the hazards of investing in digital assets. Especially those who were victims of pranks on specific CeFi systems.

CeFi is not synonymous with DeFi.

CeFi was sold on the basis of comparable gains to DeFi, but with the added benefits of being simple to use and providing customer assistance.

However, for Celsius and Voyager subscribers, that sense of security was recently dashed when both companies failed to cope with the downturn, eventually filing for bankruptcy and leaving consumers in the dark.

Finlay commented on this, criticizing the management teams for not acting transparently, which he considers to be a key pillar of bitcoin.

He went on to say that while many of these platforms called themselves DeFi, they were actually "functioning as shadow banks," utilizing high-risk techniques with customers' assets. That, according to Finlay, is not working transparently.

“A lot of the collapses that happened during this last round were things that were branding themselves as DeFi but then were actually kind of operating as shadow banks with massive leverage.”

How does MetaMask combat bad actors?

In terms of making crypto safer, Finlay stated that MetaMask is restricted in its ability to halt bad actors, adding that he is helpless to prevent individuals from creating blockchain Ponzi schemes.

Because crypto wallets, such as MetaMask, are meant to connect to several protocols, Finlay believes it is a myth that he can regulate the whole ecosystem and eradicate crooks.

“It’s by definition impossible for us to wrap the whole thing into one unified bow and enforce it in a direction.“

That isn't to imply the corporation isn't acting. The pair discussed making the wallet experience more "consensual" and making it "harder for untrustworthy things to earn reputation." The co-founders did not elaborate on the practical ramifications of this, other than not autodetecting (and showing) airdropped tokens.

A frequent airdropped token scam involves raising interest by offering a big amount of airdropped tokens in USD. When the user finds they cannot cash in the "free tokens," they are routed to a phishing site where they are persuaded to enter their recovery word in order to cash in the tokens.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Follow us on Google News

Filed under