Decentralized Finance (DeFi) has been one of the most explosive narratives in the Web3 space. From yield farming to lending protocols and decentralized exchanges, DeFi promises a world where anyone with an internet connection can access borderless, permissionless financial tools. But with great promise comes intense scrutiny. Skeptics argue that DeFi is inherently risky. They point to smart contract hacks, rug pulls, unstable protocols, and unregulated platforms. They ask: “Isn’t this just a digital casino with no rules?” The concern is valid—but also incomplete. This article unpacks the risks of DeFi, examines the philosophical and technical foundations behind it, and explores why, despite early turbulence, DeFi remains one of the most important experiments in financial empowerment. Why Is DeFi Considered Risky? Let’s begin by acknowledging what critics often highlight: Smart Contract Exploits: Vulnerabilities in code can be exploited, resulting in millions lost in seconds. Lack of Regulation: With no central oversight, users have little legal recourse in case of loss. Volatility: Many DeFi platforms rely on tokens whose value can fluctuate wildly. Anonymous Teams: Some DeFi projects are launched by pseudonymous developers, raising accountability concerns. Complex User Experience: High learning curves and wallet management friction make DeFi inaccessible to many. These risks are real, and ignoring them would be irresponsible. However, risk alone does not invalidate innovation. It signals where growth and maturity are needed. As Web3 visionary and an entrepreneur Alessio Vinassa puts it: “Early internet banking was called unsafe. Today, it’s the norm internationally. DeFi is going through the same journey—but faster and more publicly.” The Principles Behind DeFi DeFi is more than high-yield protocols or speculative tokens. At its core, DeFi is about: 1. Permissionless Access Anyone can use a DeFi application—no bank account, government ID, or credit score required. 2. Transparency All transactions and smart contract code are visible on the blockchain. Unlike traditional finance, there are no hidden ledgers or closed-door decisions. 3. Composability DeFi apps are built like LEGO blocks—interoperable and stackable. You can use one protocol’s lending tool with another’s exchange, creating powerful financial strategies. 4. User Sovereignty You hold your own keys and control your own assets. You’re not asking a bank for permission—you are the bank. 5. Global Accessibility DeFi is not bound by borders or business hours. It operates 24/7 and can reach people in unbanked or underbanked regions. These principles reflect a shift from institution-centric finance to user-centric finance—an evolution that is both disruptive and empowering. Addressing the Risk: What’s Being Done The DeFi ecosystem is far from passive in the face of its challenges. Builders, auditors, and communities are addressing risk in multiple ways: Formal Audits: Top DeFi projects undergo rigorous code audits and community testing before launch. Bug Bounties: Incentivizing hackers to report bugs ethically before they’re exploited. Decentralized Insurance: Protocols like Nexus Mutual provide on-chain coverage against smart contract failures. Governance Participation: Token holders in DAOs vote on changes, helping decentralize decision-making and risk management. Risk Assessment Tools: Platforms like DeFiSafety rate protocols for transparency and security. These measures, while still developing, are signs of a maturing financial ecosystem—not one in decline. Alessio Vinassa emphasizes this point clearly: “DeFi doesn’t eliminate risk—it redistributes it. The challenge isn’t to remove risk entirely, but to make it transparent and accountable.” DeFi as a Mirror of Traditional Finance Ironically, many DeFi “risks” are mirrored in traditional finance: Lehman Brothers collapsed due to opaque risk exposure. 2008’s housing crisis revealed systemic failures in the banking sector. Bank runs still happen, despite regulation. What makes DeFi different is that everything is on-chain and auditable in real-time. Users can see where liquidity is, how protocols behave, and make informed choices—if they take the time to learn. A New Kind of Financial Education DeFi demands a shift in mindset. It invites users to be more informed, more responsible, and more empowered. It also offers an opportunity for communities—especially in regions excluded from traditional banking—to take financial inclusion into their own hands. This is why leaders like Alessio Vinassa support responsible DeFi education, tool-building, and ethical onboarding. He views DeFi not as a trend, but as “a long-term reset in how we think about financial access and autonomy.” Key Takeaways DeFi is risky—but so was early internet banking, e-commerce, and cloud storage. The core principles of DeFi (permissionless access, transparency, composability) offer unique advantages over traditional finance. Risk management is improving through audits, insurance, and on-chain governance. Leaders like Alessio Vinassa advocate for ethical DeFi innovation and user education. DeFi is not perfect—but its potential impact on global financial inclusion is too significant to ignore. Conclusion Yes, DeFi is risky. But risk is not inherently bad—it’s a signal that something new is being tried. DeFi is redefining financial systems from the ground up. It puts tools in the hands of users and invites a more transparent, programmable, and inclusive future. The road is bumpy, but the destination is worth the journey. To know more about Alessio Vinassa and how he grow his business philosophies, visit his website at alessiovinassa.io .You can also find and follow him on the following social platforms: Instagram – Facebook – X (Twitter) Next in Series:The Metaverse is a Gimmick: Real Use Cases for Digital Immersive WorldsWe’ll examine how the metaverse is evolving beyond hype into a serious tool for education, virtual collaboration, and immersive commerce—and what decentralization has to do with it. Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
Bitcoin’s early miners, known as the ‘Satoshi era’ cohort, have exhibited remarkable restraint by selling only a minimal amount of BTC amid 2025’s bullish market surge. This conservative selling behavior
Citibank is facing legal action from a man who says he lost $20 million in a cryptocurrency romance scam , accusing the banking giant of turning a blind eye to suspicious activity. In a lawsuit filed Tuesday in a Manhattan federal court, plaintiff Michael Zidell alleged that Citibank failed in its duty to detect and stop red flags as he unknowingly wired millions of dollars to scammers, including nearly $4 million through Citibank accounts. Victim Claims Citibank Overlooked Scam Warnings According to the complaint, Zidell fell victim to a sophisticated scheme known as “pig butchering,” in which fraudsters create fake romantic connections to lure victims into fraudulent crypto investments. Zidell said he was contacted in early 2023 via Facebook by a woman calling herself Carolyn Parker, who claimed to be a successful business owner. As their online relationship deepened, she encouraged him to invest in non-fungible tokens (NFTs), claiming she had made millions through a specific trading platform. Trusting the scheme, Zidell transferred funds to accounts provided by the platform. Over several months, he made 43 transactions totaling over $20 million to various banks. By April, the platform’s website had vanished — along with his funds. Bank Negligence at the Heart of Lawsuit The lawsuit highlights 12 specific transfers totaling $4 million that Zidell says Citibank processed to a company named Guju Inc. He claims the bank ignored multiple red flags in Guju’s accounts, including large, repetitive fund movements involving trusts and individual accounts, which should have triggered anti-money laundering checks. “Citibank failed to implement sufficient security protocols and allowed clearly suspicious transactions to proceed,” the complaint reads. Zidell accuses the bank of aiding and abetting fraud, and claims it breached its legal duty to monitor and investigate such activity. The case brings renewed attention to the scale of romance-based crypto scams . In 2023 alone, such scams reportedly siphoned over $5.5 billion from victims. Analytics firm Chainalysis has projected that total crypto-related scams may reach $12.4 billion in 2024. Earlier this month, U.S. authorities seized $225 million linked to pig butchering scams — the largest crypto seizure in Secret Service history. The post Citibank Sued Over Alleged Role in $20 Million Crypto Romance Scam appeared first on TheCoinrise.com .
Guotai Junan International has become the first Chinese brokerage to secure a cryptocurrency trading license from Hong Kong’s Securities and Futures Commission (SFC), signaling a pivotal moment for traditional financial
ResupplyFi suffered a significant security breach, resulting in a $9.6 million loss due to a price manipulation exploit targeting its wstUSR market. The attack exploited a vulnerability in the ResupplyPair
BitcoinWorld Ethereum Stablecoins Witness Record-Breaking Surge in Weekly User Activity The cryptocurrency world is abuzz with exciting news: Ethereum stablecoins are seeing unprecedented levels of engagement. A significant milestone has been reached, highlighting the growing utility and adoption of digital assets within the broader financial landscape. This surge in activity underscores the pivotal role stablecoins play in the evolving crypto economy. The Astonishing Rise in ETH Stablecoin Activity Recent data from The Block reveals a remarkable achievement for the Ethereum network. Weekly users transacting with Ethereum-based stablecoins have officially surpassed a staggering 750,000 unique addresses. This figure represents a new record high, showcasing a robust and expanding user base for these crucial digital assets. This isn’t just a number; it’s a testament to the increasing reliance on stablecoins for various financial operations. The reported activity encompasses a range of prominent stablecoins, including: USDT (Tether): The largest stablecoin by market capitalization, widely used for trading and remittances. USDC (USD Coin): A fully reserved stablecoin, popular in the decentralized finance (DeFi) space due to its regulatory compliance and transparency. BUSD (Binance USD): Binance’s stablecoin, deeply integrated into its ecosystem. DAI (Dai): A decentralized, collateral-backed stablecoin managed by the MakerDAO protocol. This diverse range of stablecoins contributing to the record indicates a broad adoption across different use cases and user preferences. The collective strength of these assets is propelling the Ethereum network forward, solidifying its position as a foundational layer for digital finance. Why Are Stablecoin Users Flocking to Ethereum? The question naturally arises: what drives this massive influx of unique stablecoin users onto the Ethereum blockchain? Several factors contribute to this phenomenon, illustrating the intrinsic value and versatility of stablecoins in the current crypto climate. 1. Stability in Volatile Markets: In an often-volatile crypto market, stablecoins offer a haven. Pegged to fiat currencies like the US dollar, they provide a predictable store of value, making them ideal for: Trading: Traders use stablecoins to lock in profits or mitigate losses without cashing out to traditional fiat. Remittances: Sending value across borders quickly and cheaply, avoiding traditional banking fees and delays. Payments: Facilitating everyday transactions with a stable medium of exchange. 2. Gateway to Decentralized Finance (DeFi): Ethereum is the undisputed home of DeFi. Stablecoins are the lifeblood of this ecosystem, enabling users to engage in a myriad of activities: Lending and Borrowing: Users can lend stablecoins to earn interest or borrow them against collateral. Yield Farming: Providing liquidity to decentralized exchanges (DEXs) or lending protocols to earn rewards. Decentralized Exchanges (DEXs): Trading various cryptocurrencies without relying on centralized intermediaries. 3. Accessibility and Global Reach: Stablecoins on Ethereum are permissionless, meaning anyone with an internet connection and an Ethereum wallet can access them. This global accessibility breaks down traditional financial barriers, offering financial services to the unbanked and underbanked populations worldwide. The Broader Implications for Crypto Market Growth This significant increase in stablecoin activity is a strong indicator of broader crypto market growth and maturation. It suggests a shift from purely speculative trading towards more practical and utility-driven use cases for cryptocurrencies. When more users are actively transacting with stablecoins, it implies: Increased On-Ramps and Off-Ramps: More people are moving in and out of the crypto ecosystem, using stablecoins as their primary bridge. Growing Institutional Interest: Institutions often prefer stablecoins for large-volume transactions due to their predictability and liquidity. While the data specifically mentions unique addresses, the underlying volume could include institutional activity. Development of Robust Infrastructure: The demand for stablecoin transactions drives innovation in wallet technology, payment processors, and DeFi protocols, further strengthening the overall crypto infrastructure. The sustained growth in unique users for Ethereum stablecoins points to a resilient and expanding digital economy that is increasingly integrating with mainstream finance. Navigating the Evolving DeFi Ecosystem with Stablecoins The record ETH stablecoin activity is inextricably linked to the dynamism of the DeFi ecosystem. Stablecoins provide the necessary liquidity and stability for DeFi protocols to function effectively. As more users engage with stablecoins, the DeFi space benefits from: Enhanced Liquidity: Greater stablecoin pools mean more efficient trading and less slippage on DEXs. Lower Volatility for DeFi Strategies: Users can deploy capital into DeFi protocols using stablecoins, reducing exposure to the inherent volatility of other cryptocurrencies. This encourages more long-term participation. Innovation and Development: The demand fuels continued innovation in new DeFi products and services, from advanced lending platforms to novel derivatives and insurance protocols. However, challenges remain. Scalability concerns on Ethereum, though addressed by Layer 2 solutions, can still impact transaction costs (gas fees) during peak demand. Regulatory clarity also continues to be a crucial factor for the long-term sustainable growth of stablecoins and the broader DeFi ecosystem. Despite these hurdles, the current trajectory suggests a powerful and ongoing expansion. Conclusion: A New Era of Digital Finance Powered by Stablecoins The milestone of over 750,000 unique weekly users for Ethereum-based stablecoins is more than just a statistic; it’s a powerful affirmation of the growing utility, adoption, and indispensable role of stablecoins in the digital economy. This surge in ETH stablecoin activity reflects a maturing crypto market, where stability and practical application are increasingly valued alongside innovation and speculative potential. As the DeFi ecosystem continues to evolve, stablecoins will undoubtedly remain at its core, driving further growth, enabling new financial paradigms, and onboarding millions more into the future of finance. This record-breaking achievement signals a confident step forward into a more accessible and efficient global financial system. To learn more about the latest crypto market trends, explore our article on key developments shaping Ethereum institutional adoption. This post Ethereum Stablecoins Witness Record-Breaking Surge in Weekly User Activity first appeared on BitcoinWorld and is written by Editorial Team
A flaw in ResupplyFi’s contract allowed an attacker to manipulate token prices and drain $9.6 million from its wstUSR market.
Technology investor and Coatue Management founder Philippe Laffont made remarkable statements on many topics from markets to artificial intelligence, from technology giants to Bitcoin in the Squawk Box program he attended on CNBC. Laffont, the manager of Coatue, which manages approximately $55 billion in assets, has openly expressed his hesitations about Bitcoin for the first time: “I wake up every morning and ask myself: Why don’t I have Bitcoin?” Stating that Bitcoin can now be evaluated “like a company” in terms of market value, Laffont said, “Today, Bitcoin’s market value is $2 trillion. This corresponds to approximately 0.5% of the world’s net wealth. So, could this rate be 1% or 2%? Why not?” He stated that he found some investors’ valuation of Bitcoin at $100 trillion “a bit aggressive,” but he still predicted that the asset could double or triple in the coming years. Related News: As Terra Founder Do Kwon Appears in Court, Terra Classic (LUNC) Receives Major Update Today - Here Are the Details Noting that Bitcoin was two to three times more volatile than Nasdaq in the past, Laffont stated that this volatility has decreased recently and has now become a more stable investment vehicle. “Bitcoin fell as much as Nasdaq in recent fluctuations, not more. This is a very interesting development,” he said. Laffont, who stated that he still has not invested in Bitcoin, left the door open to the possibility of investing by saying, “Being a good investor means sometimes changing your mind. Maybe I made a mistake and it is time to change that decision.” *This is not investment advice. Continue Reading: Billionaire Investor Philippe LaffontMakes Bitcoin Confessions: ‘I Regret It Deeply,’ He Says, Shares Expectations Including Price Prediction
World Liberty Financial, the cryptocurrency platform associated with US President Donald Trump, is preparing to publish an official audit of its dollar-pegged stablecoin. Co-founder Zak Folkman revealed the update on Wednesday during the Permissionless conference held in Brooklyn. Speaking on stage with Blockworks’ Jason Yanowitz, Folkman said the project had recently secured its first attestation report from an independent accounting firm. According to the WLFI co-founder, the document will be posted to the Web3 platform’s website “within the next few days.” The attestation could provide assurance about the reserve backing of the company’s stablecoin, known informally as USD1 . WLFI, the governance token of the World Liberty ecosystem, currently provides holders with voting rights and a say in the decentralized finance (DeFi) governance process, but is non-transferable as of now. WLFI transferability coming soon World Liberty Financial confirmed in a recent post on the social media platform X that the WLFI token may soon be made transferable. “You asked to make $WLFI transferable, we heard you,” the company wrote, promising that the team is “actively working behind the scenes” to meet community expectations. The post concluded with the promise of “big news coming soon.” “ Stablecoins are really going to be the future of transacting, whether it’s on chain or in the real world. A stablecoin is only as stable as the assets that back it. And it’s one thing to be able to see a monthly attestation report that’s published on a website from a financial auditor ,” Folkman told Yanowitz during their chat. The WLFI token has a fixed total supply of 100 billion units. So far, 25 billion tokens have been sold publicly, raising $550 million. The platform has also conducted private sales, according to token listing site ICODrops. Folkman also mentioned that several institutional investors have their sights set on WLFI as a treasury asset. He commended Strategy executive chairman Michael Saylor for starting the concept of holding digital assets as corporate reserves. “ There has been a lot of interest from several public vehicles who want to use WLFI to be held in their treasuries as well, ” he noted. The team is planning to launch a mobile application to simplify the use of cryptocurrency for day-to-day users. “ You can see that the retail application is coming. It’s something that we’ve been working on for a very long time now with some of the best partners and builders in the space, both on our team and companies that we’ve partnered with ,” the co-founder remarked. Political connections and financial disclosures WLFI was launched just two months ahead of the 2024 presidential election, and when President Trump got elected, several firms picked an interest in the platform. It has generated hundreds of millions of dollars in revenue for the Trump family’s business empire. President Trump, according to a 2025 financial disclosure filed with the Office of Government Ethics, personally earned $57.4 million from the project. He currently holds over 15 billion WLFI governance tokens, which provide him with voting rights over the network’s direction. The Trump Organization stated in January that the president’s investments and business dealings would be held in a trust managed by his children. Despite that arrangement, critics, including liberal lawmakers, say the profits Trump has yielded present a conflict of interest . They argue that Trump’s pro-crypto policies are directly adding to the success of crypto businesses with which he is affiliated with. His administration has made several changes to the regulatory enforcement of digital assets. KEY Difference Wire : the secret tool crypto projects use to get guaranteed media coverage
Bitcoin Treasury Capital, a Canadian publicly traded entity, has strategically allocated nearly $7 million (approximately 66 million Swedish Krona) to acquire 66 bitcoins. This transaction, executed at an average price