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Jay Hao: "many will lose their money in DeFi projects»

Jay Hao: “many will lose their money in DeFi projects»

CEO of OKEx cryptocurrency exchange Jay Hao believes that when the boom in popularity of decentralized financing (DeFi) projects ends, many will lose their money.

Hao said that his company has been monitoring and supporting the development of the DeFi industry almost from the very beginning. The OKEx team believes that decentralized financing projects will be able to provide financial services to billions of people who do not have access to banks. However, regarding the current DeFi bubble, Hao noted that, as with any altcoin season, someone will win and someone will lose their money:

“If the DeFi bubble temporarily bursts, it will be good for bitcoin and ether, as they will pour significant funds. But even if the popularity of DeFi projects decreases, this will only be a temporary phenomenon, since the potential and prospects of the industry are too great to ignore.”

Hao expects that within five years, the sphere of blockchain and cryptocurrencies will significantly increase and a lot of more innovative products and solutions will appear in it. In the future, people will use blockchain solutions without even knowing about it. Separately, he noted protocols like Polkadot, which will make it possible for various networks to interact seamlessly, which will greatly simplify the creation of large-scale decentralized applications.

Also, the CEO of OKEx believes that bitcoin will reach new historical peaks in 12-18 months. According to him, there is a possibility of a deterioration in the global economic situation, which may lead to a fall in the bitcoin exchange rate, as it was in March. However, even if this happens, the first cryptocurrency will quickly win back losses and will grow at least to the levels of the end of 2017.

Recall that, as Hao said in June, the measures taken by the US government to stimulate the economy will lead to an increase in the bitcoin exchange rate. Since then, the first cryptocurrency has really risen significantly in price.