DeFi Bubble Grows Larger with Replicas Launching on Tron

Justin Sun and his team marketing ideas have been simple – follow Ethereum. What began as a joke in 2019 at crypto conferences, now extends to Tron 4.0 to replicate Ethereum 2.0. As Tron was feeling left out from the DeFi pump in the last few weeks, it seems to have quickly drafted a clone of the Sythetix Network.

The resemblance is uncanny. Even the description on their respective websites is the same. Except that OIKOS runs on Tron, as SNX runs on Ethereum.

Rob Paone, the founder at Proof of Hiring tweeted,

Tron is so shameless in their blatant plagiarism you almost have to respect it

Oikos offers similar DApps (Decentralized Applications) like in the Synthetix Network for trading, staking and analysis. Suspicions around the creators of the DeFi application was also raised as they have sketchy profiles on the website. Alexandre Dreyfus, the CEO and founder of Socios and Chilliz token tweeted,

Not sure about the team. There is Corona and Holder. Not sure real names, but no LinkedIn.

It is no secret that Tron under Justin Sun grabs onto any and all marketing opportunities that present may or may not itself. Copying and competing with Ethereum and Vitalik Buterin is one of their primary tactics. Nevertheless, after DApps copying DeFi could represent a deeper problem in the crypto industry.

The Bubble Expands

The apprehensions of bubble characteristics have been prevalent for a while now. And despite that, the value of DeFi tokens continues to rise. Udi Wertheimer, leading Bitcoin contributor tweeted,

According to a new report by Consensys, the number of “DeFi” users with at least 100 “DeFi” transactions within 3 months, is in the low 1000s. This is what crypto twitter is raving about. Why? Because everyone invested in these projects but no one uses them.

This is clearly reminiscent of 2016-2017 ICO bubble, where promising projects raked in millions of dollars. However, there were practically no users on these platforms, some of them were only whitepapers. Moreover, if many more of these replicas begin to launch in the market, the total market capitalization of these tokens could easily be inflated.

Furthermore, the might also dupe investors into mirroring the gains on COMP, AAVE or LEND.

How do you that crypto investors must look at the DeFi scenario? Please share your views with us.