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DeFi

“DeFi is the Most Painful Trade of the Year” says VC Veteran Jason Choi

June 6, 2022 - Around 2 mins mins to read

Mr. Jason Choi, a member of Forbes’ 30 Under 30 list, co-founded Spartan Group, the APAC region’s most successful Web3 VC fund DeFi, and expressed his thoughts on the current “bottom” of the Crypto Winter.

DeFi is the Most Painful Trade of the Year
“DeFi is the Most Painful Trade of the Year” says VC Veteran Jason Choi

New-gen The bear market has destroyed DeFis

According to Mr. Choi’s figures, all forms of utility and governance assets related with the decentralized financial segment have been hit the hardest by the recession.

They peaked in May 2021, not November 2021, as Bitcoin (BTC) did, and their bear market lasted 400 days instead of 207 days. Even the most prestigious DEXes had their assets collapse by 90% on average.

At the same time, “new DeFis” or “DeFi 2.0” protocols, such as Redacted Cartel (BTFRLY), Olympus (OHM), and Wonderland (TIME), are hit even harder: they’ve lost an average of 98.5 percent.

When compared to the ATH, some protocols in the overhyped Solana (SOL) ecosystem, such as the AMM-powered DEX Saber Protocol (SBR) and the Step Finance (STEP) DeFi protocol, lost over 99%.

Is the ATOM ecosystem a refuge of safety?

DeFi is the Most Painful Trade of the Year
ATOM ecosystem

Layer 1 protocols (L1) have historically had lower volatility than DeFi coins. With losses of 63.5 percent and 65.4 percent, Ethereum (ETH) and Tronics (TRX) are the two most stable assets.

Coin that has been overhyped MINA, which gained news after its post-launch surge, is the only Layer 1 protocol to lose more than 90% of its value.

Mr. Choi further said that the Cosmos (ATOM) ecosystem, a complex cross-chain architecture, exhibits “defensive” price performance despite the market turmoil.

The investor is unsure of the specific origins of such a situation, which can be linked to VC funds’ lack of involvement.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

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Annie

CoinCu News

ATOM ecosystem

Bear market

Cosmos

crypto winter

defi 2.0

Forbes' 30 Under 30 list

Jason Choi

new DeFi

VC Veteran

Web3 VC fund

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
DeFi, News

“DeFi is the Most Painful Trade of the Year” says VC Veteran Jason Choi

Mr. Jason Choi, a member of Forbes’ 30 Under 30 list, co-founded Spartan Group, the APAC region’s most successful Web3 VC fund DeFi, and expressed his thoughts on the current “bottom” of the Crypto Winter.

DeFi is the Most Painful Trade of the Year
“DeFi is the Most Painful Trade of the Year” says VC Veteran Jason Choi

New-gen The bear market has destroyed DeFis

According to Mr. Choi’s figures, all forms of utility and governance assets related with the decentralized financial segment have been hit the hardest by the recession.

They peaked in May 2021, not November 2021, as Bitcoin (BTC) did, and their bear market lasted 400 days instead of 207 days. Even the most prestigious DEXes had their assets collapse by 90% on average.

At the same time, “new DeFis” or “DeFi 2.0” protocols, such as Redacted Cartel (BTFRLY), Olympus (OHM), and Wonderland (TIME), are hit even harder: they’ve lost an average of 98.5 percent.

When compared to the ATH, some protocols in the overhyped Solana (SOL) ecosystem, such as the AMM-powered DEX Saber Protocol (SBR) and the Step Finance (STEP) DeFi protocol, lost over 99%.

Is the ATOM ecosystem a refuge of safety?

DeFi is the Most Painful Trade of the Year
ATOM ecosystem

Layer 1 protocols (L1) have historically had lower volatility than DeFi coins. With losses of 63.5 percent and 65.4 percent, Ethereum (ETH) and Tronics (TRX) are the two most stable assets.

Coin that has been overhyped MINA, which gained news after its post-launch surge, is the only Layer 1 protocol to lose more than 90% of its value.

Mr. Choi further said that the Cosmos (ATOM) ecosystem, a complex cross-chain architecture, exhibits “defensive” price performance despite the market turmoil.

The investor is unsure of the specific origins of such a situation, which can be linked to VC funds’ lack of involvement.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News