DeFi - the niche within a niche and incredibly small community

[Ucy]

I am not too worried about tokens/coins getting concentrated in few hands, assuming the token getting dumped in the future is why people are worried. I think you can put some kind of mechanisms in places to prevent the prices from "dumping" as a result of massive sell-off by whales.

What I worry mostly about is Consensus/Governance limited to such big holders. That is very wrong and dangerous.

[Ucy]

I am not too worried about tokens/coins getting concentrated in few hands, assuming the token getting dumped in the future is why people are worried. I think you can put some kind of mechanisms in places to prevent the prices from "dumping" as a result of massive sell-off by whales.

What I worry mostly about is Consensus/Governance limited to such big holders. That is very wrong and dangerous.

By the way, if you could encourage/incentivize users to create and spend on thriving self-sustaining markets/ecosystem, a token/coin will be dumped less. I think this should be one of the most important part of many of such mechanisms to be put in place to prevent people from selling their coins

[beerlover]

Defi really doesn't make any sense to me, because most of the time owners take a huge cut as well and there is too much power within few people and I am not fine with that. If a project is destroyable by few people that means I should not get involved with it, same reason why I haven't gotten into ripple ever because I know creators have that power and I am not fine with it neither.

Defi is not something you should get in if you want to stay long and want to see how it works out in the end, it is something you should get in and get out very quickly with the hopes of making a quick profit, if you can do that it did its purpose but if you can't do that then it failed. That is all there is to defi, a quick profit to be made from it and nothing more.

[jrrsparkles]

If the total supply is just concentrated into the small community then it is not really worth to hold it even the investors itself knew it that is why they always wait for the right time to exit from the market so only small investors are going to get trapped by these lucrative idea.

[Wapfika]

If the total supply is just concentrated into the small community then it is not really worth to hold it even the investors itself knew it that is why they always wait for the right time to exit from the market so only small investors are going to get trapped by these lucrative idea.

Mostly those who join can also be a influence of the others who join, when it comes in these scheme we should set only a short term plan or better watch the market 24/7, do charting set points were to possibly sell little by little until able to exit all. When it comes to a small community there's a need to be sensitive in exiting as it will be noticed too much in the market, so before it noticed better do it earlier slowly that can still able to earn,

[AmoreJaz]

Defi really doesn't make any sense to me, because most of the time owners take a huge cut as well and there is too much power within few people and I am not fine with that. If a project is destroyable by few people that means I should not get involved with it, same reason why I haven't gotten into ripple ever because I know creators have that power and I am not fine with it neither.

Defi is not something you should get in if you want to stay long and want to see how it works out in the end, it is something you should get in and get out very quickly with the hopes of making a quick profit, if you can do that it did its purpose but if you can't do that then it failed. That is all there is to defi, a quick profit to be made from it and nothing more.

we will see their downfall in the next coming months once this hype is over. there may be few projects that can survive but most of them will be wiped out because they have no foundation to begin with. almost all of them are just here for quick money and people are patronising them. this is because they are thinking that they can get profit out of this.
 but if you will not exit early, the likelihood that you will be holding crap defi tokens is very high. so if you think you already got your targets, exit and never look back.

[maxreish]

There's always probably a glitch in every new projects and deFi project is not an exemption. If small community continues, how can we say that it will be successful in the long run? Unless more and more investors will gonna join the mainstream and support this project.

Also, we can't say that it will also survived in the future. The hype is there now, but just like previous projects it will also fade. However, this new defi project are still working on since financial innovations are the main purpose of this project.

[kingzpro]

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?

Yes it has been a problem but i think a lot of work has been ongoing to develop different products that will help ordinary and common people or we can say small investors to also make use of defi and their saving products.
I have seen few good teams working on such products where the user will buy their token and with that money they will invest in best no risk defi tokens, liquidity provision, yield mining and token farming to get the best returns which they will pay forward to all investors directly to the wallets where they are holding the tokens.
Such platforms will rill out the technicalitiies and a common investor will be able to take advantage of this defi revolution.

[optimisticcm]

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?

The future of defi and all allied services seem bright to me and it will have the potential to compete with traditional financial system but at the moment the userbase is really small and i agree to the fact that only a small number of users are there mostly big whales but i am sure with more ease and compliance with new platforms and products everyone will be onboard in couple of years.

[chikator]

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?

If what youre saying is true then yes it would be a problem in the long run. With so few big holders they could manipulate these coins to their whims in the future but then again, dont all coins? Even on coins that we have frequently nursed in our wallets, big holders still manipulate those markets. Just dont mind it i guess if you really believe on your project.

[abel1337]

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?

If what youre saying is true then yes it would be a problem in the long run. With so few big holders they could manipulate these coins to their whims in the future but then again, dont all coins? Even on coins that we have frequently nursed in our wallets, big holders still manipulate those markets. Just dont mind it i guess if you really believe on your project.

We can't really expect that DeFi will have a long run. We know that this market trend is just hyped and sooner or later this hype will be extinguished. Big players are enjoying the every profit they can get as much as possible because I'm sure they know that this is temporary and they won't hodl trash tokens that has no foundation.

For now, I think there's some manipulation happening due to extensive pumps and dumps by some DeFi tokens, I'm not pertaining to all but there are some that is just for profit only.

[tyz]

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?

For me, DeFi is nothing else than ICO 2.0. So it is possible to learn from the experience of the ICO hypes of 2017 and 2018 and transfer this to DeFi to a large extent. At that time it was also the case that the very largest part of the ICO project was in the hands of only a few. Only a small part was really sold to small investors and given as bounties. This pushed up the price and kept it high for a while. After the peak of the ICO hype had been reached and it was clear to most that this would no longer work well, the few then dumped their shares, which then led to the enormous losses in value and for many such projects virtually the downfall. The same will happen when the DeFi bubble will burst sooner or later. Maybe not as blatant as three years ago, but similar.

[Arkann]

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?

For me, DeFi is nothing else than ICO 2.0. So it is possible to learn from the experience of the ICO hypes of 2017 and 2018 and transfer this to DeFi to a large extent. At that time it was also the case that the very largest part of the ICO project was in the hands of only a few. Only a small part was really sold to small investors and given as bounties. This pushed up the price and kept it high for a while. After the peak of the ICO hype had been reached and it was clear to most that this would no longer work well, the few then dumped their shares, which then led to the enormous losses in value and for many such projects virtually the downfall. The same will happen when the DeFi bubble will burst sooner or later. Maybe not as blatant as three years ago, but similar.

You are absolutely right and I also believe that there is a certain similarity between the ICO and the current DeFi project, especially their main similarity is that in a short period you can earn very big money if you invest your funds correctly. Some DeFi projects have already managed to show almost 1000 percent growth in price to date, and you need to be careful, because the trend can change very much.

[jostorres]

The reason why the prices go up so much is the fact that there are owners and friends of owners and so forth that holds so much, so there is very little amount left to distribute and the owners and so forth make it high price enough that they could sell and rebuy and make it stay high, so that the price would look big but the reality is the liquidity is very very low.

Pick any coin you want, any defi coin out there in the whole world, and check how much is there for liquidation, if you wanted to sell all you have how much would it take to sell to everyone to make the price go up or down? And check any other traditional coin, like eth for example. You will realize that it is not even close, for few million dollars you can buy it as a whole in defi whereas it takes billions of traditional ones.

[electronicash]

defi tokens are already in the market that anyone who has interest can invest to it to join the number of investors who enjoys its benefit. i don't think it will be problem for you if you just join at the right time. while every tokens right now dips including btc, it must be a heaven's sign for you to jump into the project if you plan to profit in the long run.  if there is something to gain, it should just be taken advantage than just ignoring the possibilities.

the community is not going to stay as small as it was after the dip. the people in the DEX community are often just small but after defi protocols had been developed, the daily volume of the market reaches up to billions of USD. uniswap is an example of this.

[bitbollo]

the hype is the same as ICO in 2017. This is good for the whole community since new users are attracted to crypto coins.
I think there is an important difference between ICO and DeFi. Since behind an Initial Coin Offer there is just a new way to launch a cryptocurrency.
Some project "DeFi" have implemented new idea/new protocols, probably isn't just an hype, and probably we can wait for evolution of the concept with more sophisticated project in the upcoming years.

[tyz]

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?

For me, DeFi is nothing else than ICO 2.0. So it is possible to learn from the experience of the ICO hypes of 2017 and 2018 and transfer this to DeFi to a large extent. At that time it was also the case that the very largest part of the ICO project was in the hands of only a few. Only a small part was really sold to small investors and given as bounties. This pushed up the price and kept it high for a while. After the peak of the ICO hype had been reached and it was clear to most that this would no longer work well, the few then dumped their shares, which then led to the enormous losses in value and for many such projects virtually the downfall. The same will happen when the DeFi bubble will burst sooner or later. Maybe not as blatant as three years ago, but similar.

You are absolutely right and I also believe that there is a certain similarity between the ICO and the current DeFi project, especially their main similarity is that in a short period you can earn very big money if you invest your funds correctly. Some DeFi projects have already managed to show almost 1000 percent growth in price to date, and you need to be careful, because the trend can change very much.

Not only that, there are also examples of Scam-DeFi projects which suddenly showed up in Telegram channels without having a whitepaper, a PoC and roadmap promising an airdop which could only be conducted when a certain amount of money is collected before, and after the money was collected (I still wondering who sends money to such scammy projects) the project disappeared.