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Cardano founder claims poorly designed DeFi projects have seen more than $ 10 billion worth of crypto lost in hacks and scams.
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The vulnerabilities, he noted, will see a lot of disappearance over the next decade..
Charles Hoskinson believes that many projects in the decentralized finance (DeFi) space will collapse and disappear over the next five to ten years.
According to the founder of Cardano, the industry is teeming with projects the quality and level of engineering of which simply means they will not be able to “stand the test of time.”
Hoskinson said this in a YouTube session, in which he pointed out that while building projects that last for time, many in the DeFi space do not have this advantage.
As a result, he estimated, the industry has suffered hacks, scams and thefts amounting to tens of billions of dollars in 2021 alone. He believes the ecosystem can benefit from a process of standards certification, which, in his opinion, will help eliminate the outrageous and ill-conceived projects that come with all the vulnerabilities.
For now, the IOHK boss is bearish on most DeFi projects,
“Unfortunately, many projects in this space will not stand the test of time. It’s just a real fact because we’ll see a big extinction happening in the next five to 10 years,He said, explaining why Cardano was taking the development of the network step by step.
Hoskinson says it’s not just incredible costs, a lack of transparency, and shoddy decentralized financial applications that are clogging up the space. Many projects, he says, are built in a rush as creators scramble to extract value from users.
In his opinion, doing things right is important in this industry and that is why some projects will survive extinction while many fall and go. According to him, many consumers within the crypto ecosystem are here because they want something different, a platform “who can really evolve. “
Speaking about Cardano and its future developments, Hoskinson said the team of developers know what the ecosystem is all about. He underscored the scientific approach to building the network and said headwinds such as the many delays only served to make the team resilient. This, he added, shows the quality of Cardano.
Cardano has patiently followed a roadmap since launching in 2017 and only recently upgraded to enable smart contract functionality. The native ADA coin is currently trading around $ 1.53 and is around 50% below its all-time high of $ 3.09 reached on September 2.
