‘Mr. Wonderful’ Kevin O’Leary Believes DeFi Is the Next Big Thing
The decentralized finance (DeFi) space has picked the attention of Kevin O'Leary of Shark Tank fame.
O’Leary Floats DeFi Startup
Bitcoin may be the prime dog, but DeFi is the next big thing. According to Canadian businessman and television personality Kelvin O’Leary who was once a crypto critic like his colleague Mark Cuban a few months ago.
In a podcast show with Anthony Pompliano of Morgan Creek Digital fame, O’Leary said he believes DeFi would become a major sector in the financial space in the future. According to the billionaire investor, DeFi is one to look out for, given the massive returns it was giving to investors.
According to him, DeFi enables him to wrap up crypto assets on Ethereum chains and profit from his trade of which traditional crypto investments do not support. He also said that he has a perfect solution to make this possible as he is currently working with a DeFi startup on commercializing DeFi investing.
The startup named DeFi Ventures has not gone public yet but has been able to gain O'Leary's attention as he said he had invested $20 million in bringing the product to market.
Speaking on the company's mission, Mr. Wonderful, as he is popularly called, said that they would enable users to wrap crypto assets and automatically leverage DeFi’s inherent capabilities according to laid down rules.
He also said he would be renaming the startup as WonderFi in homage to his sobriquet.
O'Leary has only recently shown open support for the nascent industry. Before coming on board the crypto wagon, Mr. Wonderful said that Bitcoin’s volatility could not see it become a medium of exchange. According to him, a currency that can lose 20% of its valuation in a few hours is not safe.
BTC Crash May Be Good News For DeFi
The crypto market has been turbulent in the past week, following searing criticism by long-time crypto stalwart Elon Musk. Musk, whose EV company bought $1.5 billion worth of BTC, tweeted that Bitcoin’s environmentally damaging mining protocol was forcing him to delist the premier digital asset from Tesla's payment system.
He would only work with a crypto project with less than 1% of BTC’s energy demands.
O’Leary has noted that the twin events of China’s crypto payment ban and Musk’s criticism on BTC price action could be good news for DeFi.
According to him, the environmental, social, and governance (ESG) concerns surrounding Bitcoin could force investors to look at less energy-guzzling in the DeFi space.
The DeFi sub-sector has been growing since the beginning of the year. According to DeFi data aggregator DeFi Pulse, the sub-sector dominates as much as 15% of the crypto market with a $63.2 billion total value locked (TVL).