[whatisweb3]

> So the hustlers are always going to be one step ahead from regular folk.

I don’t disagree. This is always going to be the case in any global market with information asymmetries - grandma’s investments are not going to do as well as a hedge fund with a team of 50.*

The difference is: the people entering CeFi are having access to their funds revoked, and a counterparty failing to repay debts while fleeing to Dubai. while the people entering DeFi have not had access to their funds affected, and are not worrying about counterparty risk.

This is why it is a shift in power - the users retain control of their funds and leveraged positions, as opposed to placing that power entirely in the hands of tradfi and CeFi companies.

* ironically a lot of big players like 3AC are getting wiped out too, so it isn’t always true

[wpietri]

There is good reason to think that hedge funds in general do worse than grandma's investments. That has long been Warren Buffett's belief, one he demonstrated in a 10-year bet with a hedge fund advocate: https://longnow.org/ideas/02018/02/09/warren-buffett-wins-mi...