In 2018 it is a bit more difficult to see what was the factor that caused the drop, 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 surrounding bitcoin, which has been overestimated. To the house of bitcoins [l’ancien nom de Coinhouse, NDLR]I remember there were up to 400 people lined up outside to come and buy cryptocurrencies. It was very retail oriented and there were people who could wait two hours to go and buy Ripple and other cryptocurrencies which were more exotic and far less interesting than bitcoin and ethereum.
At the time, retail was pretending to understand cryptocurrencies and was betting on them in casino mode, when it was absolutely wrong to think that way. The industry saw it as a source of interest, not really understanding what it was, and people would come up saying they wanted to buy different cryptocurrencies, as if they were doing their market on a Saturday morning in Saint-Paul-de-Vence to buy zucchini. . Honestly, he lacked intelligence and education.
It’s not the same right now. This time it was innovation that caused the downfall. The excess of innovation, the excess of trust, especially in DeFi, in some forms of technology, the youth of some people carrying out projects, especially around the Moon foundation and other protocols, has sharpened the appetite of very intelligent people , but particularly Machiavellian people in this sector or traditional finance, who believed there was money to be made.
What happened on Luna is not at all a Ponzi scheme or a technological crash, it is a real Soros attack, which consists, as when there was the attack on the pound, exploiting an unbalanced protocol and a bear market with a falling bitcoin, borrow a lot of money and then sell a large amount of Luna to derail the protocol.
The attack was masterfully executed and the protocol, unbalanced, did not resist. I think we have experienced a very close phenomenon to Lehman Brothers in the world of cryptocurrencies. 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 contained.
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 fanatics driven by the spirit of innovation. There are also speculators who somewhat forget the rules. When Celsius [plateforme qui s’est déclarée en faillite à la mi-juillet, NDLR] it offers crazy returns compared to other players in the sector, no one wonders how this is possible. It is very good that it cleans up the market a bit, keeping people away greedy who have a lack of knowledge and who want to break free from the rules. We will now be able to work on a much healthier basis.