Cryptocurrencies are facing increasing pressure from regulators in the US and many regions, posing a serious risk. While no one believes that crypto will be banned altogether, strict regulations could negatively impact token price performance for years to come by weakening demand. And yes, almost everyone in this field is more interested in making money than the technology and the benefits it brings.
Kain Warwick, the founder of Synthetix, confirms the negative approach by stating that some US regulators are ignoring the benefits of a transparent and open infrastructure that empowers financial markets. However, according to him, disputes will be resolved through the courts because regulators are not doing their job and displaying a negative attitude.
“In my opinion, US regulatory agencies have completely missed their duties and now they are taking all these issues to court. The attitude of regulators in the US is completely contradictory to their duties. DeFi is built on a technology that enhances market transparency and efficiency. Yes, it is not perfect, but it is very new and should be given an opportunity to prove itself in the market.”
“Certainly, it has more potential than the current system, which consists of a group of black boxes built on 50-year-old outdated code, barely kept in line with millions of pages of rules and regulations.”
With the decision of Uniswap, there is an expectation in the crypto community that the ongoing disputes with regulators can be resolved in favor of crypto through the courts.
Warwick says he founded Infinex because he noticed an inefficiency in the Synthetix ecosystem. This reflects the global collaboration that revolves around cryptocurrencies in our lives. You develop a smart contract and publish it publicly. A developer on the other side of the world makes improvements to it and contributes to it.
“The best part is that no one can stop me. The same goes for other protocols, if you don’t like Aave’s UX (user interface), go and fix it, and if you are right, you can charge a fee to solve this inefficiency. This is the power of DeFi. It is impossible in TradFi (traditional finance) and innovation suffers because of it.”
The cumulative market value of altcoins in the DeFi sector has dropped to $42 billion as of today. Many projects are facing extinction due to low trading volume. These are the consequences of the bear market’s impact on the DeFi world, despite its benefits and potential.