In 2018, it’s a little more difficult to see what was the factor that caused the decline, because DeFi was not as big as it is today and there were no problems with stablecoins. I think there has been a media hype around bitcoin, that it has been overhyped. Home of bitcoins [l’ancien nom de Coinhouse, NDLR], I remember there were up to 400 people queuing outside to come and buy cryptocurrencies. It was very retail driven and there were people who could wait two hours to go buy ripple and other cryptocurrencies that were more exotic and much less attractive than bitcoin and ethereum.
At the time, retail was pretending that it understood cryptocurrencies and betting on them in casino mode, when it was absolutely wrong to think that way. The sector saw it as a source of interest, without really understanding what it was, and people were saying they wanted to buy different cryptocurrencies, as if they were making their market on a Saturday morning in Saint-Paul-de-Vence to buy some courgettes. Honestly, he lacked intelligence and education.
Right now it’s not the same. This time it was innovation that caused the downfall. The excess of innovation, the excess of trust, especially in DeFi, in certain forms of technology, the youth of certain people who carry out projects, especially around the Luna foundation and other protocols, has sharpened the appetite of very intelligent people , but especially Machiavellian people in this industry or in traditional finance, who believed there was money to be made.
What happened on the moon is not a Ponzi scheme or a technological crash at all, it is a real attack by Soros, which consists, like when there was the attack on the pound, of exploiting an unbalanced protocol and a bear market with a declining bitcoin, borrow a lot of money and thus sell a large amount of Moon to derail the protocol.
The attack was carried out masterfully and the protocol, which was lopsided, did not hold up. I think we have experienced a phenomenon very close to Lehman Brothers in the cryptocurrency world. Behind it, there was a chain reaction. We saw it in 2008 with the phenomenon of subprime unfortunately on a much more dramatic scale. But in cryptofinance, which is less developed than global finance, the phenomenon is limited.
The impact was very violent, because it is still a very young sector. If one of the stablecoins had been shaken, the phenomenon would have been much more massive. But in this case, the industry is strong and healthy enough to solve its problems. Finally, we cleared the area of people who were too far away greedy [avide en anglais, NDLR].
It should also be remembered that people interested in cryptocurrencies are not just geeks driven by the spirit of innovation. There are also speculators who somehow forget the rules. When Celsius [plateforme qui s’est déclarée en faillite à la mi-juillet, NDLR] offers crazy returns compared to other players in the sector, no one wonders how it is possible. It’s very good that it cleans up the market a little bit, pushing people away greedy who have a lack of knowledge and who want to break free from the rules. Now we will be able to work on a much healthier basis.