DeFi architect Andre Cronje has called for additional regulations on the cryptocurrency industry so investors don’t get burned.
Cronje Advocates For More Crypto Regulations
Today, Andre Cronje published a Medium post entitled “The rise and fall of crypto culture” where he explained why crypto regulation is important as a means not to prevent fraudulence, but rather to protect investors.
Cronje compared crypto to the early days of monetary policy where progress was achieved through repeated trials and improvements. Instead of doing it better, he believes the crypto community is repeating the previous mistakes.
The Yearn Finance founder and Fantom Foundation technical adviser noted that he has long been a fan of crypto ethos which entails self-sovereign rights, self custody, and self-empowerment. At the other end of the spectrum is crypto culture, which is all about wealth, enrichment, and ego. Cronje is certain that crypto culture is what is rampant presently in the crypto and blockchain sector. “Crypto culture has strangled crypto ethos,” he quipped.
Cronje then stressed that regulation is particularly vital for the “bad times” and not for “the good times when it’s all honeymoon and champagne”. The prolific DeFi developer drew an analogy between the regulation process and a child trying to poke their finger into an electric socket. In this instance, you stop them even before they can comprehend why they shouldn’t be doing that, as they will eventually understand one day.
The Rise Of A New Blockchain Economy
In Cronje’s view, “Crypto is dead, long live crypto.”
Cronje, who quit DeFi in early March this year, maintains he has no intentions of returning to the crypto sector in its present form, describing it as “badlands”. But he’s optimistic that a new blockchain economy driven by trust instead of greed will emerge in the future. And he’s very excited about that.
Cronje’s comments on crypto oversight come as the crypto market experiences a significant sell-off amid bearish macroeconomic sentiment and growing fears of a recession in the US. Bitcoin plunged below pivotal support of $40,000 earlier today, hitting its lowest level in almost a month.
The industry has also faced a series of rug pulls and security breaches in recent months, the latest being the Sunday flash loan attack on Ethereum-based stablecoin protocol Beanstalk.