There are one, two, or even more high-profile hacks of decentralized finance (DeFi) projects every month. Bitwise CFO Matt Hogan believes the industry is still too young.
“Whenever there is a major hack, professional investors and the cryptocurrency industry mark them up to constantly remind themselves that the industry is still extremely young and risky,” said Matt Hougan.
He noted that hacks happen all the time, and not only in the cryptocurrency industry, but the frequency of such incidents in the field of digital assets and, in particular, the DeFi industry, is too high. Especially when compared with the total capitalization of the industry.
“I think it’s these risks that lead to institutional investors trying to work with big, proven brands,” says Hogan.
A Bitwise senior executive also said that clear regulation of the industry could kickstart a new bull market. He acknowledged that cryptocurrencies were originally created as anti-regulatory assets, and many market participants still believe that platforms do not need regulation. But for the development of the industry, quality regulation is necessary.
Earlier, the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler said that his department may well regulate projects of decentralized finance.
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