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DeFi is too ‘noisy,’ MyEtherWallet CEO says

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The crypto space’s decentralized finance niche has reached frenzied status within the crypto industry, signaled by exuberant price highs and rampant speculation.

“DeFi is the new overhyped concept in Ethereum,” MyEtherWallet, or MEW, CEO and founder Kosala Hemachandra told Cointelegraph in an interview. “The noise is too much, so everyone is just like running around trying to figure out what the next big thing is and then putting a ton of money inside without doing enough research,” he said. 

Back in 2019, DeFi likely brought to mind different concepts than what we see today. DeFi, at its core, existed as a way for people to borrow, loan and store funds based on their crypto holdings. Over the course of 2020, however, DeFi has ballooned, spurring projects created out of nowhere, gaining significant attention while speculators move their funds around in search of the best profit on coin price speculation and interest-bearing vehicles. Hemachandra’s comments refer to this newer hype movement. 

The MEW founder explained that DeFi boasts losers and winners, with the winners adding further hype to the movement. As a byproduct of the hype, Ethereum network transaction fees have skyrocketed in recent weeks, at times costing users between $40 and $80 per transaction. 

“That’s the main cause of the Ethereum gas price issue, as of right now,” said Hemachandra. He noted, however, that the present situation is an opportunity for the industry to scale up to the challenge and improve solutions around Ethereum, explaining that tension can spur growth. 

Others have noted that another potential problem with DeFi stems from Ethereum’s low transaction-per-second numbers.  



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Ethereum

Germany commemorates Euro 2020 soccer team with NFTs

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The German Football Association (DFB) has officially announced the debut of national soccer team nonfungbile tokens (NFTs) in partnership with a major blockchain-based fantasy soccer game provider Sorare.

As part of an official license agreement, the DFB will create digital collectible cards on the Ethereum blockchain of 18 players on the German national team through Sorare’s platform. According to an announcement from Sorare, the cards will be available for use in Sorare’s Global Fantasy Football game for the Euro 2020 soccer championship.

By issuing player NFT cards on Sorare’s platform, the DFB aims to find new revenue streams as well as provide more fan engagement opportunities, particularly as COVID-19-related restrictions have resulted in limited game attendance in recent months. 

Related: Crypto fan tokens a mixed bag for game-deprived soccer fans

“Especially in the Corona pandemic, digital offers were and are the only way to enter into direct exchange with our fans. But even though the Corona crisis will hopefully soon be over, we want to continue to use the possibilities of digitalization much more intensively, also with our partners, and offer our fans new interactive opportunities,”  said Holger Blask, the DFB’s managing director of marketing and sales.

Founded in 2018, Sorare is a global fantasy football game that allows users to play with officially licensed digital cards featuring 140 football clubs including Liverpool, Real Madrid, Bayern Munich, Juventus and PSG. Last week, the French Football Federation launched its own series of player NFTs prior to the team’s match against Germany.