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<p>The post <a href="https://coinpedia.org/news/ethereums-vitalik-slams-defi-why-crypto-leaders-are-outraged/">Vitalik Buterin’s DeFi Criticism Sparks Debate; Leaders Outraged!</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Is Ethereum co-founder Vitalik Buterin questioning <a href="https://coinpedia.org/glossary/defi/">DeFi’s</a> long-term potential? His recent remarks on X have ignited strong reactions from the crypto community, including prominent figures like DeFinance Capital founder and CIO Arthur and Frax Finance founder Sam Kazemian. </p> 
<p>Let’s dive into this heated debate.</p> 
<h2 class="wp-block-heading" id="h-vitalik-buterin-s-concerns-about-defi">Vitalik Buterin’s Concerns About DeFi</h2> 
<p>Ethereum’s Vitalik Buterin has expressed doubts about DeFi’s ability to drive the growth of the cryptocurrency sector. He seems skeptical about DeFi’s role in advancing the broader crypto market, particularly criticizing its heavy dependence on crypto trading.</p> 
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   <p lang="en" dir="ltr">&gt; the yield comes from borrowers, trading fees, etc<br><br>Right, so this worries me. Because it feels like an ouroboros: the value of crypto tokens is that you can use them to earn yield which is paid for by… people trading crypto tokens.<br><br>Even if the answer is something clear like…</p>— vitalik.eth (@VitalikButerin) <a href="https://twitter.com/VitalikButerin/status/1827642283560144916?ref_src=twsrc%5Etfw">August 25, 2024</a>
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<h2 class="wp-block-heading" id="h-defi-community-s-backlash">DeFi Community’s Backlash </h2> 
<p>The DeFi community has strongly criticized Buterin’s views. Leaders like Arthur and Sam Kazemian have publicly challenged his stance on X. Arthur has urged Buterin to reconsider how DeFi contributes to Ethereum’s value, highlighting its significance to Ethereum’s market worth.</p> 
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   <p lang="en" dir="ltr">Terrible take, founder of the largest smart contract L1 doesn't really understand the usecase and sector that drive value to ETH and make it worth $330b.<br><br>See you at 0.03. <a href="https://t.co/K04DxWu6Ue">https://t.co/K04DxWu6Ue</a></p>— Arthur (@Arthur_0x) <a href="https://twitter.com/Arthur_0x/status/1827904252846707037?ref_src=twsrc%5Etfw">August 26, 2024</a>
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<p>Sam Kazemian’s critique, while less direct, contrasts Buterin’s views with those of staunch <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/">Bitcoin </a>supporters. His comments suggest that Buterin’s skepticism mirrors the position of Bitcoin loyalists who overlook DeFi’s potential, calling on the DeFi community to recognize this common misunderstanding.</p> 
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   <p lang="en" dir="ltr">BTC maxis don’t like DeFi. <br><br>EF &amp; Vitalik don’t like DeFi.<br><br>Pretty surreal that’s the one thing they both seem to agree on. DeFi people take note.</p>— Sam Kazemian (¤, ¤) (@samkazemian) <a href="https://twitter.com/samkazemian/status/1827919564925198423?ref_src=twsrc%5Etfw">August 26, 2024</a>
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<p>The debate between Buterin and these crypto leaders has sparked a lively discussion about DeFi’s future across various crypto forums. If not handled well, this conversation could become counterproductive.</p> 
<p>Also Check Out : <a href="https://coinpedia.org/news/vitalik-buterin-other-top-leaders-demand-release-of-telegrams-pavel-durov-after-arrest/" target="_blank" rel="noreferrer noopener">Vitalik Buterin &amp; Other Top Leaders Demand Release of Telegram’s Pavel Durov After Arrest!</a></p> 
<p><strong>What do you think? Is Vitalik Buterin right or wrong about DeFi’s future?</strong></p>

Vitalik Buterin’s DeFi Criticism Sparks Debate; Leaders Outraged!

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