Reports of hacking in the crypto world keep appearing at regular intervals. Some founders of crypto applications have themselves disappeared with all the cryptocurrencies investors made in their apps. Sometimes losses occur due to a software glitch that leads to a person or company losing the crypto asset. All such fraud and loss instances cause massive losses every year running into millions of dollars. Charles Hoskinson, the founder of Cardona, predicts that many established DeFi applications will see disruptions in the future because of these incidents.
Hoskinson’s Thoughts on Current DeFi Landscape
Hoskinson in a recent live broadcast expressed his opinions on the current DeFi scenario and the role Cardona will play in its future. According to him, several DeFi applications continue to rely on prayers and hopes. If the situation continues this way, the established applications cannot withstand the demands of time. Many of these applications will disappear in 5-10 years. They are unable to fix issues like high cost, lack of openness, and application quality. Cardona wants to fix these issues. It plans to do so by developing reliable certification standards.
Scammers Making Billions
These statements of Hoskinson are based on the real events of the crypto world. In 2021 alone, fraudsters made over $7.7 billion using the back-end withdrawal method. It is a common scamming technique. Frauds of this nature accounted for almost 37% of crypto crimes. It shows an increase in such incidents by a massive 81% when compared to 2020. The only positive development is that the scammer turnover in 2021 has been lower than the previous year