The CEO of ARK Invest, Catherine Wood, has been an outspoken advocate of decentralized finance (DeFi) and cryptocurrencies. In a recent interview, she shed light on the reasons behind her bullishness on DeFi, and why she believes that decentralized and transparent networks are the future of financial services.
We believe that DeFi will get a boost from the crisis, because now it is obvious that investors will choose a decentralized and transparent path.said Catherine Wood
According to Wood, the ex-CEO of FTX, Sam Bankman-Fried, was opposed to Bitcoin because of its decentralized nature. Bankman-Fried disliked the fact that he could not control Bitcoin due to its transparent and decentralized design. This stands in stark contrast to Wood's beliefs, who sees the transparency and decentralization of DeFi as a positive development for the financial industry.
When centralized crypto companies went bankrupt, investors who invested money in transparent distributed networks were able to withdraw their assets in time. They saw what was happening. Even those who used a large margin leverage were able to survive," said the head of ARK Invest.said Catherine Wood
Wood believes that the recent crisis in large companies has provided a boost to the DeFi market. Investors now understand the importance of fully transparent decentralized networks for the future of financial services. Unlike closed opaque networks such as Celsius and 3AC, DeFi publishes its indicators, demonstrating effective development.
Investors who chose to invest in transparent distributed networks were able to withdraw their assets in time during the crisis, even those who used a large margin leverage were able to survive. In contrast, investors in centralized crypto companies that went bankrupt could not see what was happening to their assets.
Wood's optimism in DeFi is reflected in ARK Invest's recent purchase of Bitcoin Trust shares, demonstrating positive expectations for the portfolio investor. ARK Invest bought $2.8 million worth of Bitcoin Trust shares in November, indicating that the company is bullish on the future of cryptocurrencies and DeFi.
In conclusion, the recent crisis has highlighted the importance of transparency and decentralization in financial services. Investors now understand the benefits of investing in fully transparent decentralized networks, which provide greater control and visibility over their assets. As the industry continues to develop, it is likely that we will see a growing shift towards DeFi and cryptocurrencies, as advocated by Catherine Wood and ARK Invest.