'FAANG of DeFi Assembling,' Seasoned Crypto VC Says

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Vladislav Sopov

Vance Spencer, co-founder of Framework Ventures, shares superb mentation of differences betwixt DeFis successful 2020 and 2023

The conception of decentralized concern (DeFi) protocols has matured since the bull tally of 2020-2021 ended. Here's what it means for users, VCs, token holders and retail investors.

"Blue-chip DeFi (or anything) was meme past cycle"

During the latest bullish rally successful crypto (Q1, 2020 - Q4, 2021), each "blue-chip" altcoin was thing but a meme. None of them managed to commencement generating a sustainable currency travel for their investors and token holders. Every palmy protocol was surrounded by dozens of VC-fueled forks, Framework Ventures' Vance Spencer recalls.

Important to internalize. Blue spot DeFi (or anything) was a meme past cycle. Nobody was generating sustainable currency travel and tbh the manufacture was a shitshow. Launch a palmy protocol and 15 VC funded forks would travel successful with tokens and vampire onslaught you.

This rhythm is…

— Vance Spencer (@pythianism) July 28, 2023

This imbalance betwixt mediocre worth travel and tremendous hype astir "blue-chip DeFis" made "vampire attacks" possible. As covered by U.Today previously, the archetypal specified onslaught happened successful September 2020, erstwhile then-new DeFi SushiSwap (SUSHI) siphoned $1.4 cardinal of Uniswap (UNI) liquidity overnight.

Amid the 2020 DeFi tokens euphoria, the mysterious SushiSwap (SUSHI) creator Chef Nomi announced amended conditions for "yield farming," i.e., much generous liquidity supplier rewards. As a result, LPs started dropping Uniswap (UNI) en masse.

Such tricks by marketers volition not enactment successful the upcoming cryptocurrency cycle, Spencer foresees. Today, the cryptocurrency conception is astir existent currency flows and ample markets.

Who volition articulation FAANG of DeFi successful 2023-2024?

As galore "queens for a day" are simply not determination immoderate longer, VCs volition not beryllium funny successful backing arrays of "new-gen" blue-chip DeFis. This volition effect successful consolidation: Only the strongest players volition beryllium capable to pull liquidity and execute well-balanced tokenomics.

In immoderate regards, this consolidation tin pb to the emergence of the "FAANG of DeFi." Top DeFis volition execute the dominance Facebook, Amazon, Apple, Netflix and Google created successful the Web2 integer world.

As covered by U.Today previously, Vance Spencer predicts the support of Bitcoin ETFs by the extremity of 2023.

This announcement volition besides unlock monolithic opportunities for different large cryptocurrencies, the adept says.

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