“Gambling” to put money on the market
- Aaron Davis, co-founder of a popular crypto wallet, says investing in crypto is “gambling”.
- This is a rare comment from a founder of a major crypto player – MetaMask has 30 million users.
- The co-founder said that it is “extremely dangerous” to say that today’s crypto is the future of finance.
A co-founder of a popular crypto wallet said that investing in digital assets is gambling.
In an interview with Vice, Aaron Davis of MetaMask – which has given cryptocurrencies a place to store their holdings for six years now – warned people against investing their savings in cryptocurrencies, especially as the industry faces months of sales showing few signs of stopping .
“It feels too late, but putting your money in cryptocurrencies is gambling,” Davis told Vice. “I’m not saying that what we have right now is the future of finance and [you should] move over your savings. “A lot of people are talking about it, and I think it’s extremely dangerous behavior.”
It is a rare admission from someone who has founded or runs a large crypto company.
Cryptocritics have long compared crypto investing to gambling, calling the market an unregulated casino. Others have called it a Ponzi scheme, claiming that it depends on recruiting new investors to repay early investors who have already raised the money.
A former employee of the now bankrupt crypto-lending platform Celsius is suing his former employer, calling it a “Ponzi scheme” in the same way. The lawsuit alleges that Celsius failed to hedge against risk, which resulted in one
liquidity
crisis and a suspension of withdrawals that captured users’ holdings.
Davis’ other MetaMask co-founder David Finlay said there may be bad actors in the crypto world, but there is only so much MetaMask can do about it.
“We can not stop people from making Ponzis on blockchains,” Finlay told Vice. “It is by definition impossible for us to wrap it all in a single arc and enforce it in one direction.”
“One of the ways we help the ecosystem keep pace with better use is to make the information they are exposed to increasingly consistent,” he continued, “so that as there are better and more credible use cases, people have an opportunity to be exposed. more exclusive to these. We can not ban ponziers, but we can deprive them of the precious oxygen by exposure. ”
Davis and Finlay also discussed with their Vice company, which turns six years old and boasts 30 million monthly active users, the ongoing storm raging in the crypto market and its many flaws, and the hope that despite this, it may have a bright future.
“We want to know that maybe we or someone else did something right, once we have tackled climate change or there is better social equality,” Finlay said. “These are my two long-term hopes for the ecosystem.”
