The founder of the DeFi project yEarn Finance, Andre Cronje, announced the need to regulate the crypto industry and ran into criticism from the community.
In early March, Cronje retired from the crypto industry along with Fantom Foundation senior architect Anton Nell. The latter announced their withdrawal from the approximately 25 projects they worked on.
On April 18, Cronje published article titled The Rise and Fall of Cryptoculture.
In it, he suggested that the current generation of project developers in the industry are repeating the mistakes of the creators of the existing monetary system in an attempt to “make something better.”
Cronje contrasted the concepts of cryptoethos and cryptoculture. In the first he included the ideas of sovereign rights, self-sacrifice and self-perfection. With the second he connected property rights, enrichment and ego.
According to him, the crypto culture “strangled the idea of cryptocurrency.”
“Now more than ever I see the need or even the urgency of regulation not as a prevention mechanism, but as a remedy,” Cronje said.
He expressed confidence that in the future “we will see the rise of a new blockchain economy, driven not by greed, but by trust, but not by gullibility.” At the same time, Cronje made it clear that he was not going to return to the industry.
The article caused a strong reaction in the community.
“The man who made tens of millions. Created many shitcoins and projects thanks to the lack of regulation. Retired from the industry and now advocates for investor protection and regulation. Welcome to the world of clowns,” wrote a popular trader on Twitter under the nickname Tree of Alpha.
-man who made 9 to 10 figs
-building multitudes of shitcoins and projects
-thanks to crypto’s lack of regulation
-quits the space
-now advocates for the biggest meme of all, investor protection and regulation
— Tree of Alpha (@Tree_of_Alpha) April 18, 2022
“We can only hope that some regulators put legal mega pressure on the guy, and this is just a psychological operation. Although, I’m not sure,” commented Larry Cermak, vice president of research at The Block.
Here is to hoping some regulators are putting mega legal pressure on the guy and it’s just psyops. Not sure though
— Larry Cermak (@lawmaster) April 18, 2022
DeFi YouTube host Chris Black wrote:
“Now that he has your money, Andre says DeFi needs government intervention. Because you are a child and don’t know how to keep your fingers away from the toaster. What he misses is that he is the guy who intentionally made and sold faulty toasters.”
Now that he’s got your money, Andre says DeFi needs govt intervention because you’re a child that doesn’t know how to keep your finger out of a toaster.
— Chris Blec (@ChrisBlec) April 18, 2022
“Testing in the product,” one user hinted at a controversial hack in one of Cronje’s projects.
“Test in production”
— Eric Lutzen 🐙 🌔 (@Eric20Token) April 18, 2022
In September 2020, an unknown person withdrew $15 million worth of user funds from the unfinished Eminence DeFi protocol. The victims noticed that the team was actively promoting the project, despite the fact that it had not yet been officially launched.
In October of the same year, crypto investors suffered after the implementation of a pump and dump scheme with the token of Cronje’s new DeFi experiment.
Recall that in January 2021, an expert discovered a critical vulnerability in the newly launched yCredit DeFi protocol from the creator of yEarn Finance. The bug allowed withdrawing all user funds.
In February, a hacker stole $2.8 million from the pool of yEarn Finance itself.
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