PayPal PYPL -0.8% officially announced its plans to allow its ~350 million users to buy and sell Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. This news came amid a steady run-up in the crypto markets, with Bitcoin up ~80% YTD and 3% since its low in March.
Asset prices in the DeFi space have plummeted since their recent highs. The DeFi Index Perpetual Futures instrument on FTX, which tracks a basket of DeFi assets, is down almost 50% from its high on September 1st:
On June 23 of this year I reported on the rumors regarding PayPal and Venmo to enable Bitcoin buying/selling:
It has been one crazy event after another in the Decentralized Finance (DeFi) world. This incident involves a spectacular pump, a catastrophic bug, and one lucky individual. Further, it highlights the importance of understanding the financial risk associated with DeFi applications.
Crypto Twitter, like many Twitter-spheres, is as full of self-affirmation and choir preaching as it is of internal holy-wars (not too unlike those described on this post). We can characterize two camps within the crypto/digital asset space. This is a gross oversimplification to be sure, but paints a picture of the space where there are a spectrum of competing ideas.