Will DeFi Sushi saga scare off new crypto Normies?

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Last Updated on 14 September 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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I was introduced to the term “Normies” four years ago and see that it’s since gone mainstream. At the time, an US reader of a politically inspired blog complained that he had unwillingly accepted our “notifications” and didn’t know how to turn these off. The editor in chief, an American, responded: “Don’t be such a normie”.

By now, every website that you surf to will start by asking whether you would like to accept these “notifications” and the term has gone global.

As such, we now know that a Normie (also called newbie) refers to a new entrant in an existing culture or market.

In crypto, there are Normies every day, certainly now that trading tools on smartphones like Robinhood (US based) and Bux-Zero (Europe based) make it much easier for youngsters to trade and invest.

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The Great Devaluation

Furthermore, as renowned Wall Street Journalist Adam Baratta noted in his latest book called The Great Devaluation:

Millennials today are investing in crypto currencies and other things that offer the opportunity to get rich quick.

Adam was in his opening chapters trying to convince readers that the stock market is overvalued and young investors will prefer crypto and (what he was really trying to push) gold. Considering all that is true, and drawing a comparison with the 2017-2018 ICO bubble that the crypto world experienced, one has to wonder whether the whole Sushi saga will leave a lasting scar and really scare new entrants away.

Earlier, a known crypto investor lured into another fake DeFi coin already sounded the warning, stating that some 99% of DeFi tokens are scams.

Preferred coins

Just as the Financial Times tried to recently link QAnon to Bitcoin (and failed to do so), Bloomberg is warning classic investors that the DeFi Sushi saga (a developer kept preferred coins for himself, sinking the value of the coin when he sold these) should serve as an omen to banks wondering about offering normal crypto products to their customers.

In their article, crypto investor Aaron Brown in fact summarized the whole Sushi debacle quite well, stating that:

It’s an evolving situation and as more information comes out things could turn out to be fine, or this could be another scandal that undermines trust in DeFi and crypto in general, but anyone who expected crypto to become a major part of the financial system without growing pains and lessons was foolishly optimistic.

As DeFi projects move on and the crypto market matures, the next few weeks and months will show whether or not he’s right.