DeFi tokens - do they have a real value?

[r32godzilla]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

[kindbtc]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

You are right and most people are taking DeFi as a bubble too but i do support the concept because i think it will have more and more applications, use cases and products in the furure.
People should be careful about not throwing everything into defi, still diversification seems to be the right strategy.

[serjent05]

I also have the same thought here.  But I think we need to look much deeper on the application of DeFi before jumping into conclusion.  What we saw is just the outer layer of the currently functioning DeFI system but I think there is more than just loans and selling tokens.  AS far as I know DeFi aims to be an alternative to the global finance system.  We can learn more about DeFi on this article titled: Decentralized Finance: An Emerging Alternative to the Global Financial System

Here is the quoted part of that article:

The Potential Impact of Decentralized Finance
Here are five ways that decentralized finance will have an impact on the world:

1. Wider Global Access to Financial Services

With decentralized finance, anyone with an internet connection and a smartphone could access financial services. There are a variety of barriers that prevent access in the current system:

Status: Lack of citizenship, documentation, credentials, etc.
Wealth: High entry-level funds required to access financial services
Location: Vast distance from functioning economies and financial service providers
In a decentralized financial system, a top trader at a financial firm would have the same level of access as a farmer in a remote region of India.

2. Affordable Cross-Border Payments

Decentralized finance removes costly intermediaries to make remittance services more affordable for the global population.

In the current system, it’s prohibitively expensive for people to send money across borders: the average global remittance fee is 7%. Through decentralized financial services, remittance fees could be below 3%.

3. Improved Privacy and Security

In decentralized finance, users have custody of their wealth and can transact securely without validation from a central party. Meanwhile, in the current system, custodial institutions put people’s wealth and information at risk if they fail to secure it.

4. Censorship-Resistant Transactions

In a decentralized financial system, transactions are immutable and blockchains can’t be shut off by central institutions like governments, central banks, or big corporations.

In places with poor governance and authoritarianism, users can divest to the decentralized financial system to protect their wealth. For example, Venezuelans are already adopting Bitcoin to protect their wealth from government manipulation and hyperinflation.

5. Simple Use

Plug and play apps will allow people to intuitively use decentralized financial services without the complexity of the centralized system.

With a decentralized system, a woman in the Philippines could receive a loan from the U.S., invest in a business in Colombia, and then pay off her debt and purchase a home – all through interoperable apps.

The Potential Blue Sky
Unless governments and central banks suddenly cease to exist, it’s difficult to imagine a world where decentralized finance completely replaces their centralized counterparts.

But what if they can co-exist?

Public blockchains can interact with the traditional financial system to create a new hybrid model:

Users could conduct economic activity on public blockchains and exchange their new wealth into the centralized system.
Users could hedge against systemic risk by diversifying their wealth holdings in both the central and decentralized system.
Like the internet with knowledge, decentralized finance could help democratize the financial system.

[masterrex]

Same as before mate, people are just speculating about the real value of Defi tokens, and because the market is improving this time many investors are willing to gamble especially with those Defi projects, the hype is pretty much alive in Defi tokens today thats why its good to know that most of the cryptocurrencies are also experiencing price increase. overall its good for us but the question is how long it will sustain.

[Mulann2]

for now I think it is more of speculation and hype is pumping the price, the actual value is yet to be determined because I don't think anyone have already start to use the platform, people are just interested in riding the market trend and make money while they can, I think there maybe few genuine defi project like Dia but it is still too early to know if people will request their service.

[AbuBhakar]

I also have the same thought here.  But I think we need to look much deeper on the application of DeFi before jumping into conclusion.  What we saw is just the outer layer of the currently functioning DeFI system but I think there is more than just loans and selling tokens.  AS far as I know DeFi aims to be an alternative to the global finance system.  We can learn more about DeFi on this article titled: Decentralized Finance: An Emerging Alternative to the Global Financial System

The article explains it all, people now maybe were just joining the hype without studying it since its a sure profit in a short time if they will be able to buy and sell now because some DeFi projects Sets record now or if they will sell before the hype ends, the question will be is for a long term investment and it's usefulness in the community. The article enumerates it advantages and importance but some people still fears it might be like in ICO before. There were only few projects from 2017 or before 2017 that is still active now some even do rebranding of their token or product to keep the business, will DeFi projects will still be active after Pandemic or 5 years from now?Their real value will only be known in the future.

[Rodeo02]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

in case that things happen they need to have backup plan to use their tokens to other ways not only for loans. I agree its better to have a platform that use popular crypto currency as collateral for loans or loan interest in that case investors will not be much worried about the money they invested in a project and use their tokens to other things or remove it since there is no way they can have the demand they need always.

[OcTradism]

Like YFI, it reminds me the days when Ethereum and DASH was trade above $1000. Crazy days I have ever seen. The value of YFI is even higher because back in those days, Ethereum was traded around 0.15 BTC/ ETH. Now YFI has been traded more than 0.6 BTC for each YFI. It was launched and skyrocketed to Moon. Is life easy as this? I will look at it next 3 to 6 months guys. Good luck to anyone who invest in and believe in tech revolution from YFI.

[Zeehaxan]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

I will not comment on real value as of yet because majority of these defi projects have yet to prove themselves as sustainable business models but the thing that has been proven is that defi is the big new trend and it is already driving the bull market and seems like it is just the start and bulls will be massive this time.

[cabron]

Taking a load is always good. I don't think it will ever stop actually, margin trading had been around even before cryptocurrency trading it already is in the concept in forex market.

Fortunately for the holders, they will really shill for whichever defi project they hold.  Defi seems to be hyped so much but its really becoming a good project if you can just get into the project at the right price.

[Phoenix_PROG]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

There is no motivation to buy Chainlink ?, there is no motivation to buy Compound and DIA ? don't categorize all DeFi projects as one, the difference is significant, you should be advising people to invest in DeFi projects that are more than the hypes, do research on these projects I mentioned and see how useful their utilities are and judge later

[Josefjix]

You just outlined only the surfaces of Defi projects/tokens loans won't be stopped as far as people need money for different reasons and it is a matter of urgency when you don't have the needed money at hand; you will definitely opt for the available money( lender who is ready to loan you).

@Phoenix_PROG, Just highlighted some of the great Defi projects out there, it isn't just about the hype some of these Defi tokens have a significant contribution to make to their various long-term investors.

[bttmember]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

Most of the value that all these defi tokens are getting is due to massive hype and fomo in the market because most people are panic buying in huge amounts because they do not want to miss out on massive gains but all this situation can be risky and prices may go down when the demand slows down.

[@baoli]

I want to see it a bit different from you. For example Govt always need money. Govt sales their bond every month to raise money to fund projects. So Defi will always be there people will always look for money to run their project.

[kingzpro]

I have seen people already making life changing profits that too in short span of time via defi tokens, all they did was jumped in as early as possible, prime example is paraswap who sold their tokens called swap for upto 1 cent and now you can check the price there are other fascinating examples as well but i have personally seen swap very closely and was about to enter at 5 cents but missed out.
Only time will tell if this value was real or just out of the blues.

[Gunday_07]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

Stop complaining, get in the game and make some nice ROI in a very short time before it's over, where I'm more confused is why you wearing OIKOS project signature and yet you talking against DeFi projects in general, few DeFi projects have very good use case

[Claudio99]

OP you need to DYOR on these DeFi projects, ICO ruined many investors trust after 2017 bullrun and don't expect DeFi to get investors this crazy if DeFi is nothing but another unless Hype, as a matter of fact DeFi is much more, take time and do some research on the top rated DeFi projects like COMP, Synthetix, DIA, Oikos, Chainlink and try to see their use cases

[Skinny48]

Hi guys,

I would like to share with you my idea about all DeFi tokens. I am little bit confused what is the real value of all DeFi tokens. If I think about it, their are now valuable because there is a hype around all DeFi protocols, a lot of buyers, less sellers. But, one day people stop taking loans and the tokens become less interesting, that would mean that price of tokens will start falling down and people will be pushed to repay loans and that will cause that they start selling their tokens and this will lead into further crash. The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

That's why I rather see DeFi protocols that use native coins like Ethereum or Tron (Tron already has working solution) because these coins are not just good for one thing(DeFi), people will buy them for various reasons.

I hope you understand what I am talking about.  

I'm kind surprised that this is coming from a hero member on btt, research should be very important to high ranking members like yourself, why throwing around this doubtful thoughts about DeFi projects when you can just do some research? I'm confused

[milewilda]

Like YFI, it reminds me the days when Ethereum and DASH was trade above $1000. Crazy days I have ever seen. The value of YFI is even higher because back in those days, Ethereum was traded around 0.15 BTC/ ETH. Now YFI has been traded more than 0.6 BTC for each YFI. It was launched and skyrocketed to Moon. Is life easy as this? I will look at it next 3 to 6 months guys. Good luck to anyone who invest in and believe in tech revolution from YFI.

No, but people who do just recently able to join up this crypto space will definitely say that line on where they do believe that making money would really be easy specially if they have seen that
price had skyrocket 7x in a short span of time which is the thing that do happen with YFI. Not to be bitter but this is just being hyped and for those who do able to purchase or enter when its price
is still 1k then its better to sell it out on the current price because that would already be the sweetest spot to do so.If price increase or hype is already over then expect that
the correction or dump would really be much more worst.

[nelson4lov]

~
The worst thing is that there is no other motivation for buyers to buy these tokens and that could cause that you can loose all of your invested money, right?

I have no doubt that the technology behind decentralized financial products is innovative and will play a wider role in ensuring that mass adoption gets to the crypto space. But the way people are going crazy about it makes me remember the good old ICOs days when we thought the ICO boom and good time will continue forever. Right now, not all DeFi projects are worth their current valuation and a couple of them would fail, take YAM for example. The project valuation went from $60M to literally zero and people who fomo in lost a great deal.

What's my thoughts on this?
- Despite the fact that DeFi all the rage these days, it doesn't mean we should skip doing our research or allowing our greed to be in control.

- DeFi products are actually the next big thing in crypto.

- like ICOs, not all DeFi projects will succeed.

I'm kind surprised that this is coming from a hero member on btt, research should be very important to high ranking members like yourself, why throwing around this doubtful thoughts about DeFi projects when you can just do some research? I'm confused

Being a high ranked member doesn't mean he knows everything. He just asked a question on a subject matter he couldn't wrap his head about.