Ethereum’s Vitalik repeats Yield Farming warning

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Last Updated on 8 September 2020 by CryptoTips.eu

Jeroen Kok

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The aftermath of the Sushi debacle continues to create ripples in the crypto sphere. This time round it was Ethereum founder Vitalik Buterin who once again (first time was on August 14th already) sounded the alarm on all things DeFi, Yield Farming and food coins.

As a reminder, Sushi, the now infamous DeFi coin, rose to $10 in only days, dropped back to $5 upon which the developer sold 27 million coins he held for himself and was accused of an exit scam. The whole Sushi project was in the end sold to crypto exchange FTX.

Advertentie.

August alert

Vitalik Buterin, reacting to a thread on the mercenary nature of yield farming replied in response that crypto enthusiasts should:

Look up and remember who did and said what during the last week of SUSHI’s rise, and adjust your estimates of their credibility accordingly.

With that he points to many of his peers in the crypto scene who went along with the stratospheric valuations of the many food coins (remember HotDog and Yam) that were listed on Uniswap.

(This site warned about possible bubbles in DeFi around the same time as Vitalik did).

Justin Sun, CEO of the Tron Foundation, also claimed yesterday that the Sushi debacle did not really help the crypto world very much.

Gas Fees and Ethereum 2.0

The response from Vitalik, who warned about possible bubbles in DeFi around mid-august already, fell largely on deaf ears, as most replies he got referred to the high gas fees people are paying on his blockchain and the resetting of his release date for Ethereum 2.0.

Still, the best reply came from Scottish crypto commenter Adam T, who stated that:

The moment people will see a more steady green candle, they will be balls deep in that shitcoin again! FOMO is the biggest factor of the crypto ecosystem!

Ain’t that the truth.