MetaMask Co-Founders Say It’s Hard To Stop Ponzis On Blockchain, And Putting Money in Cryptocurrencies Is Gambling

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MetaMask founders share their side of the story regarding the challenges facing the expanding blockchain industry.

While the crypto and blockchain industry has grown exponentially over the last few years, the industry is not without its challenges. One big issue among these is the increased rate at which people are getting scammed in Ponzi schemes and phishing attacks. MetaMask, a digital/crypto wallet, has been a major focus as it hosts tens of millions of people operating their digital wallets on the web-based platform.

During a recent interview, MetaMask founders delved into a number of issues facing the industry and rendered their perspectives with MetaMask in mind. MetaMask was founded by Dan Finlay and Aaron Davis back in 2016.

Lack Of Creativity In NFTs

MetaMask has supported the rise of the DeFi and NFT industries, especially due to its smooth connection to Ethereum-based networks. DeFi and NFTs saw the number of MetaMask users jump from 1 million to over 30 million within a few years.

However, according to Finlay, the NFT industry lacks proper creativity. He backed up his claim by pointing out how some NFT creators mint exact copies of the same art and put them up for sale. In his view, NFTs are supposed to be unique pieces of digital art/property.

Crypto Is Gambling

According to MetaMask Executives crypto is like gambling as no one knows what the future of crypto will be and to many people are promoting it:

“It feels too little too late, but putting your money in cryptocurrencies is gambling, I’m not saying what we have right now is the future of finance, and [you should] move your life savings over. A lot of people are advocating crypto and I think that is extremely dangerous behavior.”

Bad Actors Causing Crashes

On his part, Finlay thinks that a lot of the chaos, especially that witnessed in the last 6 months, stems from the actions of bad actors.

“There are so many different kinds of failure that are happening all the time.”

Just recently, firms like Celsius and Voyager went under, along with millions in investor funds. Their owes came as a result of the collapse of Terra and UST.

Finlay thinks that such incidents are caused by industry players that aren’t honest or transparent in their operations and end up misleading investors.

He said,

“A lot of the collapses that happened during this last round were things that were branding themselves as DeFi but then were actually kind of operating as shadow banks with massive leverage. And those aren’t transparent. And so there’s no way anyone investing in those was ensuring transparency.”

How MetaMask Deals With Ponzis

According to the founders, MetaMask has made efforts to do its part to curb scams and Ponzi schemes on its platform. Finlay said that while the platform may not entirely ban Ponzis, it can do its best to deprive them of the resources and access points that make them potent.

“We can’t stop people from making Ponzis on blockchains, It’s by definition impossible for us to wrap the whole thing into one unified bow and enforce it in a direction.”

This is by enhancing user consent features and making it hard for unreputable projects to gain traction.

“We can’t ban the Ponzis, but we can deprive them of the precious oxygen of exposure.”

However, users should play their part in enhancing defense. They should be careful not to invest in over-ambitious projects that promise too much. Greed is the single-most trap that makes a lot of people put their money in Ponzi.

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Source: https://thecryptobasic.com/2022/07/15/metamask-co-founders-say-its-hard-to-stop-ponzis-on-blockchain-and-putting-money-in-cryptocurrencies-is-gambling/?utm_source=rss&utm_medium=rss&utm_campaign=metamask-co-founders-say-its-hard-to-stop-ponzis-on-blockchain-and-putting-money-in-cryptocurrencies-is-gambling