“Superior genes,” the motto of the illegal adoption ring depicted in “The Defects,” the new K-drama that’s got everyone glued to ENA and TVING is a chilling story of this pursuit. Kim Se Hee, the chilling mastermind behind this plan, murders any children she considers ‘unfit’. Even more than that, as I watched, something else started to gnaw at me. Might this ominous story be a depiction of the disturbing undercurrent of DeFi (Decentralized Finance) and NFTs?

Kim Se Hee's twisted ideology echoes a certain elitism I've witnessed in the crypto space. We often preach the virtues of decentralization. The irony is how decentralized is it? How many of these DeFi projects are truly democratizing access for the average user? In contrast, how many cater mostly to the whales — the early adopters and high-net-worth individuals that capture the lion's share of profit.

DeFi's Superior Genes Problem?

Think about it. High gas fees on Ethereum make smaller investors effectively locked out of participating in many DeFi protocols. NFT projects usually provide exclusive access and early access to holders of a large amount of tokens. It’s a system that, whether by design or not, usually favors the haves over the have-nots.

Isn’t this a kind of digital eugenics? It’s hard not to feel that access and opportunity are based entirely on the thickness of your wallet.

The Defects unfortunately illustrates what can happen when Kim Se Hee’s actions are allowed to wreak havoc on vulnerable children. Whether it’s DeFi or NFTs, the most exciting part of this space is the innovation. It also obscures costs that disproportionately impact the poorly advised and the poor.

Hidden Costs, Real Victims

Rug pulls. Scams. Environmental damage from proof-of-work blockchains. These are the inconvenient truths that rarely appear in the rapturous PR blitzkrieg that accompanies crypto’s every move. Who bears the brunt of these risks? It's often those with the least to lose, those who are lured in by the promise of quick riches but lack the resources and knowledge to protect themselves.

Regulatory uncertainty further exacerbates the problem. This absence of enforceable guidelines opens up loopholes and avenues for exploitation, providing a breeding ground for nefarious actors. To its detriment, it’s a Wild West scenario where similarly vulnerable people are left to dangle without direction or enforcement.

This is where things get controversial. The crypto space, as some of you may know, is heavily influenced by libertarian market fundamentalism, which puts individual liberty above everything else. Regulation is perceived as anathema, as a threat to the very nature of the decentralization.

Should Crypto Embrace Social Responsibility?

We cannot afford to ignore the risks that DeFi and NFTs pose. These nascent technologies would be ripe for malign actors seeking to launder money or engage in other illegal activities. Bigger picture, can we continue to allow this kind of incredible inequality to flourish within crypto? Just because something is called “the free market” doesn’t mean we should blindly concede.

I’m calling for a different, more socially responsible vision. We need regulations that protect consumers without stifling innovation. We need more transparency and accountability from DeFi protocols. We need more participatory and inclusive governance models that ensure the voices of smaller, less wealthy participants have weight.

I am concerned that DeFi and NFTs may become mechanisms that solely benefit the rich. This all would be great, but it would leave the rest of the country behind. A future that would uncomfortably echo the dystopian reality imagined in “The Defects.”

  • Improved Regulation: Smart and adaptive policies.
  • Greater Transparency: Open-source code and audits.
  • Inclusive Governance: DAOs that empower the community.

I’m not here to say that DeFi and NFTs are the second-tier SOA. Far from it. Finally, I want to convince you that these technologies offer opportunities to completely democratize finance and individual economic empowerment.

The Hope

We have to be straight with ourselves about the risk and challenge. We must be honest about the dangers of exploitation and widening inequality. We all have to be on the same page in order to build a more just and equitable crypto ecosystem.

Perhaps by acknowledging the unsettling parallels between a fictional drama and the real-world challenges facing the DeFi space, we can begin to build a better future for all. After all, isn’t that what decentralization is all about? Let’s not allow the promise of DeFi to be repackaged into a different type of digital eugenics. The stakes are simply too high.

Perhaps by acknowledging the unsettling parallels between a fictional drama and the real-world challenges facing the DeFi space, we can begin to build a better future for all. After all, isn't that what decentralization is supposed to be about? Let's not let the promise of DeFi be twisted into a new form of digital eugenics. The stakes are simply too high.