Cryptocurrency expert Omid Malekan has leveled significant criticism against prevailing industry practices, highlighting concerns about excessive fundraising rounds and market manipulation tactics.
Malekan contends that projects securing massive capital raises frequently fail to achieve meaningful innovation or adoption. He contrasts this with foundational successes like Bitcoin and Ethereum, which achieved transformative impact with minimal initial funding.
The expert identifies several threats to ecosystem credibility, including orchestrated market manipulation schemes, artificially inflated total value locked figures, and questionable staking mechanisms. Malekan expressed particular skepticism about the proliferation of new Layer 1 and Layer 2 blockchain networks, suggesting existing platforms could accommodate most proposed innovations.
Malekan also questioned the decentralization claims of permissioned blockchain projects and characterized some industry operations as engaging in ‘shady’ practices. These critiques have ignited intense debate within the crypto community, with some industry leaders acknowledging the need for sensible regulatory frameworks to address fraudulent activities and unethical behavior.