The CEO of top crypto trading firm says big mistakes in DeFi are putting off institutional investors – and putting retail investors most at risk – Business Insider

The CEO of top crypto trading firm says big mistakes in DeFi are putting off institutional investors – and putting retail investors most at risk – Business Insider


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There have been some high profile errors on DeFi networks recently.

  • Mistakes in DeFi are putting institutional investors off the space, the CEO of big crypto trader Genesis has said.
  • Michael Moro said the errors show DeFi is risky, and said retail investors are most at danger of losing money.
  • Two high-profile DeFi mistakes have recently led to hundreds millions of dollars being sent to the wrong place.
  • See more stories on Insider’s business page.

High-profile errors in the DeFi world are putting institutional investors off the booming sector, according to the CEO of one of the biggest crypto trading firms.

Michael Moro, CEO of crypto lending and trading specialist Genesis, said on Thursday that the mistakes highlight the risks involved with decentralized finance, or DeFi. And he said retail investors are most at risk of losing their money.

A number of DeFi companies have been left embarrassed by major errors in recent weeks. DeversiFi and crypto trading platform Bitfinex accidentally paid $24 million in transaction fees to send $100,000 worth of cryptocurrencies across the ethereum network at the end of September.

DeFi platform Compound suffered a glitch during a routine network upgrade and mistakenly started sending out millions of dollars worth of crypto to users, putting around $160 million at risk by the founder’s estimations.

“Errors and mistakes that you’ve seen certainly make [institutions] shy from doing anything in size, in
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