Fatal mistake: SFC regulatory guidance on DeFi protocols and FTX collapse destroyed retail DeFi confidence in Colombia; TVL collapsed 95% in 60 days eliminating all protocol revenue
Evaluating only DeFiCO’s profile at its peak — without knowing the outcome — the model ranked Regulation as the #1 likely cause. Documented cause: Macro / political.
Key Events Timeline
FOUNDING
FUNDING
MILESTONE
SHUTDOWN
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Documented cause
DeFiCO built DeFi lending for Colombian users. The FTX collapse devastated retail crypto confidence globally. Colombian retail DeFi TVL collapsed. SFC regulatory guidance created additional licensing uncertainty. The company exited.
Lesson
“DeFi protocols in Colombia must build institutional client bases that are less correlated with retail crypto confidence cycles — protocol revenue from institutional users survives retail confidence collapses.”
Failure anatomy
Collapse type
Market Exit
📉 MEDIUM
Hype cycle
Peak
Moat type
Technology
Fatal mistake
SFC regulatory guidance on DeFi protocols and FTX collapse destroyed retail DeFi confidence in Colombia; TVL collapsed 95% in 60 days eliminating all protocol revenue
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