Oleg Rodionov is the CEO of UFANDAO, a next-generation decentralized fundraising platform aimed at fulfilling the financial needs and dreams of its members. Below, he gives insights into the potential impact of decentralization on financial markets.

Some people see the crypto market and decentralization as a kind of stronghold for the democratization of the world. Others criticize crypto for not being reliable and trustworthy.

The world remembers many cases when the crypto market provided a real opportunity to support projects with global goals. For example, you can look at the Avalanche Smart contracts, which also provide the possibility of funding for new projects in the field of crypto or Ethereum.

On the other hand, when newbies without experience join the crypto market, they may use it for speculation purposes, which is a bad idea. Once my friend lost money when investing in Dogecoin when it was still being hyped to do that. But there are plenty of examples like that with the stock market as well. One can remember the massive short squeeze with GameStop.

Warren Buffett once said, “Only when the tide goes out do you discover who’s been swimming naked.” That can be perfectly applied to crypto and stock markets.

To conclude, scams and speculation will always be a part of any financial market, whether it’s crypto or stock. However, if the project is truly decentralized and the product aims at real problem-solving, then the risks become minimal. But one should remember about high volatility, which is absolutely normal for the crypto market.

By the way, if I were asked to single out projects whose risks are minimal and that I myself believe in, I would cite decentralized fundraising as an example, including the UFANDAO platform, which currently creates its own digital currency that aims to make fundraising donations more transparent.