DeFi - the niche within a niche and incredibly small community

[DoubleEdgeEX]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

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[dondonk]

If in the long run it is unlikely that there will be a problem, the day the campaign on deFi increases, allowing for the addition of a number of new holders. It's not a short time to make it all happen.

[kindbtc]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

I do not think that will be a problem i still remember Basic attention Token and their ico that was sold within seconds to a handful of investors but see today the project and its token is a success so number of holders do not matter actually it is the number of users of the platform or service that matters.

[minairia3]

DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Many possibly thinking that defi hunt is only played by couple of players, maybe for big time chunk holders it is. But you can still share some part of it. Many thought that defi is an easy money as long as you invest on defi you will not lose. This is not true there are a lot of people losing on the process. Its a matter of timing, analysis and strategy. You must study which coin has a good standing in terms of concept, tokenomics and its potential and use cases. Im not sure about defi hype would last long but one thing is for sure, while its hot grab some of it.

[Jating]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

I don't think it will be a problem in the long run, on the contrary we may barely scratch the surface of this niche. And I'm sure as time goes by, this market will be huge, just like we have seen already, billion dollars flowing inside the market.

So we may just see the beginning, as I have said this is the beginning and we might see a big growth at the end of the year and there will be a lot of holders for sure. Although we may seeing what the future holds, similar to IEO of 2017, it is forming a big bubble now.

[sayulita]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

DeFi is right now in that stage through which Ethereum and Bitcoin have already passed through, new platform and new tokens, give DeFi coins a little while and they will show their true potential. We already have seen many DeFi tokens giving more than 100x to the initial investors and now everyone id going crazy about investing in DeFi coins and even the Investors are also liking the Idea of DeFi and in future a lot of development is going to be on DeFi especially in the cryptocurrency community.

[shata]

Holders are important. What if team holds largest bag and dump it on investors and run away?
Defi is the actual concept of crypto. My money, my wish. We only have decentralization for money issuing and security cause we used centralized exchanges for trading. Now we have dex and now we have full control over our property. Defi, the trustless financial ecosystem is the ultimate necessity of current world

Although DeFi has been considered as a new trend in the market, still overall investors in the space were lesser than previous ICO craze. Further, I agree with your thought of having trustless financial ecosystem, with established protocols and consensus in the space; it will be a new revolution in our current monetary system. However, Defi hasn`t yet make the best of its best right now, so technically, adoption is observably low. And this will be manifested on DeFi`s current market capitalization.

On the other hand, Ethereum has accelerated in riding the tide of Defi craze along with its upcoming ETH 2.0 version launching. As ETH is imitating the nature of traditional financial system, DeFi will exactly become the next option of an acceptable protocols as solution for current economic and financial problem.

[coin-investor]

They are a small community now but with all the attention they are getting it's only a matter of time before we notice that it's become a bigger industry just like the IEO and ICO and those who get in early are lucky that they are part of this early, DeFi will continue to be a trending topic and niche in the years to come.

[OcTradism]

It is only a short term trend so it won't last too long. Overview on DeFi. People are who experienced the bull run and collapse in 2017-2018, the trends of ICOs, IEOs do know what they must do.

Be greedy at the right time, try to react fast, take profit fastly and accept loses to avoid losing all capital. Cash out with some sort of losses at right time when the trend is going away.

[50 Cent]

Crypto never die...
I think it applies equally to defi.
the most important point is innovation, so that it can attract a lot of people, when many people are interested, automatically the community will be bigger.

[tabas]

The problem that will come out lately is like the ICO and that is when scammers dominated the DeFis. We're about to see them soon so for those who will like to get into Defi.
There could also be a bubble with Defi but you think if they're like that this time. But IMO, we're seeing a natural growth of the crypto market.

[foxy]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

I think DeFi is still fairly new inside crypto-space and as time passes it will get into more and more wallets but, till then DeFi market would be a little bit volatile and we should be careful while trading. I always use SL on my DeFi trades.

[nicecrypto]

I don't that will pose a big problem if not most of the Defi project mooning right now won't have that chance at because the whale are in control, for now people are happy to invest on Defi to earn good profit, look how link, band, Dia have been performing incredibly since few days now, it feels like 2017 all over again, this is new trend and investors will want to have a piece of the pie.

[Yaunfitda]

It is only a short term trend so it won't last too long. Overview on DeFi. People are who experienced the bull run and collapse in 2017-2018, the trends of ICOs, IEOs do know what they must do.

I agree, and nothing is wrong with that, specially that crypto market has evolved.

Be greedy at the right time, try to react fast, take profit fastly and accept loses to avoid losing all capital. Cash out with some sort of losses at right time when the trend is going away.

That is the secret here, you should enter at the right time and exited before the bust. I'm sure many have learn from their past mistakes in the ICO craze of 2017. And with DeFi just starting to create it's hype, maybe it's just the right time to get in, hehehe.

[judeafante]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

I liked to look at it in a positive way they are pioneers on this niche and since Defi is going to be huge because of the features they are bringing to the community, these pioneers are going to make a lot from being the early supporters and investors of this new industry.

[jacafbiz]

I agree wit you this is a serious problem in the DEFI space and most of them are not offering any value yet to project they are likely to gain more users and strong community in future, if this DEFI boom is not well managed it could be a zero sum game and a lot of people would end up losing money. Once most of these locked tokens are released and the demand side is not strong the dump on the market would bring the card down

[fauxLes]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

That might be yes, but that was the same when satoshi mined the genesis block. Ultimitaly it will be redistributed. There are some projects like yearn, uniswap and fiscus.fyi that have managed to get the tokens in user's hands. Other thing to consider is the first to show up will mine a lot relatively speaking with only a small amount of funds and then probably keep that till the price is right. They end up with a real gem getting in early.

[Bitstar_coin]

Because of this there is a huge possibility of manipulation and control, although since the hype of Defi is increasingly daily then soon the number of holders will also increase in number,  but still it is equally important to apply caution while investing in DeFi projects.

[OcTradism]

Most DeFi tokens are concentrated in hands of Top 500 Holders!   https://cointelegraph.com/news/analysis-most-defi-tokens-are-concentrated-in-hands-of-top-500-holders

If that is true, DeFi is like a sandbox game, with a very limited amount of players actually playing. Observing this from outside the crypto bubble it´s concerning that DeFi, while a good idea and worth investing, has such a small holders community.

Could that be a problem in the long run?

Those DeFi tokens will be called as CeFi tokens later. People are misleading with the DeFi term. They are greed and ignore the centralization of those projects and tokens. In the past, they were greed when Ripple (a centralized cryptocurrency) hit its all time high.

The bloody lesson in the past won't help them nowadays when they again think that they can double their capital in few hours with new DeFi tokens. Centralization is never good in cryptocurrency. The lesson of greed developer from SUSHI project is not enough to wake them up.

https://news.bitcoin.com/sushiswap-founder-reportedly-exit-scams-as-sushi-token-price-tanks/

[TastyChillySauce00]

That's actually true, the market of defi is too niche and actually too small. but if defi projects keep stealing the spotlight then it's not impossible for it to have bigger market in the future. but it could also be a trends that already happened in crypto and is a trend cycle where it will eventually fade away. but honestly the effort to change the traditional finance to a more trustless system which some of the defi project brought is kinda promising.