Cronje Quitting Causes DeFi Drop While Russian Visa And Mastercard Block Could Create Crypto Rally

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Last Updated on 7 March 2022 by CryptoTips.eu

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Andre Cronje, the famed developer of many DeFi coins and projects of which YFI (Yearn Finance) became the most famous, has decided to step away from crypto for the time being. Many coins on which he cooperated fell in response. Cronje was widely regarded as the “Godfather of DeFi” for his various contributions and developments.

At the demand of the US White house, the management boards of Visa and Mastercard have decided this weekend that they would shut down services in Russia later this week, in order to pile the economic pressure on the Kremlin ever higher. According to cryptofans, this could possibly mean that even more Russian funds will be transferred into Bitcoin, creating a short term rally.

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Mirror system

Only a week after Russia was kicked off the world’s main international payments network SWIFT, Visa and Mastercard agreed that they would follow suit as well. It comes as the Russian stock market has remained closed for a week and investors are anxious to find out how energy companies will be noted when it finally does open again.

On top of Visa and Mastercard, fintech company PayPal also agreed to shut down its services in Russia.

PayPal supports the Ukrainian people and stands with the international community in condemning Russia’s violent military aggression in Ukraine.

Explained PayPal chief executive Dan Schulman. As PayPal is mostly used by the generation of younger Russians, it is clear that the White House hopes that the combination of a shutdown of PayPal, Visa and Mastercard will make sure that Russians across all age groups will feel the economic pain.

Because of this, trading between Russia’s ruble and cryptocurrencies has soared, according to data from Chainalysis.

Tech lawyer Preston Byrne explained:

The Visa and Mastercard shutdown is a bigger earthquake than SWIFT. Trillions of dollars are going to be made building a mirror system that doesn’t respond to American pressure.

There is of course only one system that is decentralized which everyone knows, and that’s crypto.

Balaji Srinivasan, tech investor, predicted that because of the West’s current response to the Ukraine-Russia crisis:

Every cultural sphere that isn’t the U.S. or China will build national stacks for social media, shopping, and the like as part of its digital defense strategy. But they won’t have the scale to be globally competitive on their own. They’ll need to hook into bitcoin/web3 for that.