Bitcoin faces 'identity crisis' as DeFi devs urged to act like managers

Solstice Labs CEO Ben Nadareski says bitcoin "is going through a bit of an identity crisis right now," as core assets lose clear roles and quieter corners of DeFi expand. He warned the market’s narrative is shifting even as significant development continues away from the spotlight.

Nadareski argued that DeFi developers often overlook the responsibilities of managing capital. "They don't quite realize you're now also a financial asset manager if you're working in DeFi," he said, noting that building finance-focused technology adds new layers of risk.

The industry has seen high-profile warnings and costly breaches: OpenZeppelin co-founder Manuel Aráoz warned "DeFi is not safe anymore," while attacks on Drift Protocol and Kelp Dao drained nearly $600 million, and a February 2025 assault on Bybit totaled $1.46 billion.

bitcoin, defi, solstice labs, ben nadareski, identity crisis, defi developers, asset manager, manuel aráoz, drift protocol, bybit