- WSJ considers crypto yield farming a risky investment.
- DeFi space TVL amounts to over $55 billion.
The crypto world continues to provide solutions to maximize the profit potential of its users using its various technologies. Specifically, the DeFi staking, yield farming and lending is one of the most popular ways to earn money in the crypto world. However, due to its decentralized and unregulated nature, some consider this an unsafe investment.
This made The Wall Street Journal (WSJ) react in a tweet post:
Yield farmers chase double-digit interest rates on crypto holdings, but it’s risky: “It’s the virtual equivalent of handing your money to a stranger.” https://t.co/xWShOhoPcm
— The Wall Street Journal (@WSJ) July 18, 2021
WSJ added that investors are risking a lot when they are investing their wealth in crypto yield farming. To be exact, these staking technologies of the crypto space are not regulated and protected by the Federal Deposit Insurance Corp. Therefore, since it is not covered by the insurance, the investors can do nothing when the crypto staking fails.
On the other hand, Mark Cuban, the owner of Dallas Mavericks and an active crypto yield farmer speak out his thoughts regarding yield farming transparency and high APY returns, when he said:
Yield farming is not much different than buying high-dividend paying stocks or high-yield unsecured debt or bonds. There is a reason they have to pay more than other companies. They are at greater risk.
Today, the DeFi space continues to shine in the crypto world. In fact, the DeFi space total value locked (TVL) amounts to over $55 billion. With this, we can say that the DeFi world continues to win the trust of many investors around the world.