Autor Cointelegraph By Sam Bourgi

WEF 2022: Most DeFi protocols aren’t really decentralized, says European Parliament VP

WEF 2022: Most DeFi protocols aren’t really decentralized, says European Parliament VP

Uverejnil používateľ | máj 23, 2022 |

Most decentralized finance (DeFi) protocols aren’t truly decentralized, which means we need proper regulations in place to understand the inner workings of this emerging technology, according to European Parliament vice president Eva Kaili. In an exclusive interview with Cointelegraph at the World Economic Forum Annual Meeting in Davos, Switzerland, Kaili was asked to outline her definition of DeFi. By definition, DeFi is “completely decentralized,” she said, which means that “nobody can control or […] manipulate a blockchain.” Our news reporter @JoeNakamoto interviewed Eva Kaili, VP of the European Parliament.Subscribe to our YouTube video to watch it when it drops: https://t.co/l1uL54PAD1 pic.twitter.com/kMrZj55vI7— Cointelegraph (@Cointelegraph) May 23, 2022Achieving decentralization is no easy feat. “Most of them are […] saying they are, but they are not, Kaili said, referring to existing DeFi protocols. She further explained the need to define ecosystem players as part of a broader regulatory framework:“We need to have safeguards to understand who is a developer, who controls that, what are the keys, if somebody can change the code or not, where is the jurisdiction. We have to make sure we understand how it works. It’s not an easy exercise. This is what disruption is. It’s out of the box challenges that we need to see what are the benefits and ensure we work around that with smart regulation.” Kaili, who has been a Member of the European Parliament since 2014, has been a vocal supporter of Bitcoin (BTC) and blockchain technology for some time. In a previous interview with Cointelegraph Magazine, the Greek national said blockchain technology gives us the tools to strengthen and improve existing systems through trust and stability. Related: WEF 2022: Crypto remittances must have allure of cash without regulatory constraints — Jeremy AllaireConcerns about DeFi’s governance structures are nothing new, with many ardent Bitcoin supporters arguing that the industry lacks a true monetary alternative to BTC. As former Blockstream CEO Samson Mow explained, most DeFi projects are governed by organizations that can modify their protocol at will. Although Kaili raised concerns about whether DeFi protocols can truly be regarded as decentralized, European regulators appear to have broadened their understanding of the industry. An April report by the European Commission defined DeFi as a “newly emerging form of autonomous financial intermediation” that’s outside the traditional finance industry. The report also recognized the need to rethink Europe’s regulatory approach on the matter.

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Crypto remittances must have allure of cash without regulatory constraints — Jeremy Allaire

Crypto remittances must have allure of cash without regulatory constraints — Jeremy Allaire

Uverejnil používateľ | máj 23, 2022 |

Digital cash systems built on the blockchain must retain the qualities of physical money in order to attract more users in developing countries — and must be able to do so without regulatory constraints — according to Circle CEO Jeremy Allaire. In a panel discussion at the World Economic Forum’s Annual Meeting, titled “Remittances for Recovery: A New Era of Digital Money,” Allaire discussed all the features that make physical cash an ideal medium for exchange. There’s a reason why “cash is king,” he said, referring to physical money’s portability, privacy and role in securing individual sovereignty. “Cash is a really great product […] People like cash. It’s private, it’s secure, it’s a bearer instrument, it provides final settlement between you and a counterparty,” he said, adding:“There’s so much energy in the world aimed at taking away the features that make cash so powerful. There’s a reason why people in countries around the world actually would prefer cash over mobile money because it gives them more self-sovereignty, it gives them more economic freedom.”Allaire’s comments were in response to Asif Saleh’s observation that remittances via mobile wallets are limited by the destination country’s lack of adoption of digital technologies. Saleh is the executive director of BRAC Bangladesh, a nonprofit organization aimed at tackling poverty.At #WEF22, @Ripple CEO Brad Garlinghouse reveals the length he went to ensure SEC compliance, but added that “when the rules of the road aren’t clear, it’s very difficult to manage within that.” (Reporting via @tomfarrencrypto) https://t.co/ycTiFfsyki— Cointelegraph (@Cointelegraph) May 23, 2022“A lot of the policy and regulatory issues that limit the power of moving money have to do with stripping people of their economic freedoms,” Allaire said. “We have to think about solving for these problems by building models that actually provide for forms of digital cash that have the features that make cash attractive to people.”Something as simple as a SIM card allows people all over the world to participate in the global internet. That mobile identity, Allaire said, should also allow people to incorporate digital wallets where they can send and receive cryptocurrencies such as USD Coin (USDC).“There are models that can make this work […] Policymakers and regulators have to adapt to that as opposed to trying to get everyone to adapt to their constraints.” Related: WEF 2022: Ripple CEO reveals he visited SEC several times before lawsuit struckRemittances provide low-income countries with relatively stable capital flows as migrants send money back home to their families. It’s estimated that remittances account for roughly 4% of the gross domestic product of low-income countries and approximately 1.5% of the GDP of middle-income countries. Proponents of decentralized finance (DeFi) say it could reduce remittance fees by billions of dollars annually.

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Crypto Biz: Amid crypto carnage, Goldman and Barclays fill their bags, May 12-18, 2022

Crypto Biz: Amid crypto carnage, Goldman and Barclays fill their bags, May 12-18, 2022

Uverejnil používateľ | máj 20, 2022 |

Has there ever been a worse time to be in crypto? It depends on how you look at it. Amid Terra’s death spiral, Bitcoin (BTC) recording seven-consecutive weekly red candles, over $1 trillion in lost market cap across the ecosystem and an aggressive Federal Reserve hell-bent on reversing the chaos it created, major banks are quietly increasing their exposure to the sector. You’re going to love this: Goldman Sachs — once the most passionate Bitcoin detractors — and Barclays are doing some strategic buying as they prepare for the future of crypto trading. Early polling from Terra vote indicates 91% are in favor of ‘rebirth’The Terra saga took an interesting turn on Wednesday after Terra co-founder Do Kwon managed to convince network validators to accept a proposal that would salvage the blockchain without the algorithmic stablecoin, TerraUSD (UST). More than 91% of community votes were in favor of “rebirthing” the Terra network and doing away with UST entirely. The “old” blockchain would continue to support so-called “residual UST” holders and operate under the name — wait for it — Terra Classic. All is not well for the Terra ecosystem, however. Kwon has been summoned for a parliamentary hearing regarding his failed project, while three members of Terraform Labs’ legal team resigned this week. 1/ Terra governance prop #1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live. Vote here: https://t.co/ZlGxNCUTMa https://t.co/plj0guJwao— Do Kwon (@stablekwon) May 18, 2022Goldman Sachs and Barclays invest in UK crypto trading platform ElwoodGoldman Sachs and Barclays made headlines this week after they revealed a strategic investment in United Kingdom-based crypto trading platform Elwood. Why is this important? Aside from the fact that I like to dunk on Goldman every chance I get for its past anti-Bitcoin propaganda, the investment further cements the fact that major banks view crypto as a new asset class with a strong institutional appeal. That’s basically what Goldman’s global head of digital assets said. You can read about Elwood’s $500 million funding round below. Bitcoin investment giant Grayscale debuts ETF in EuropeGrayscale has finally launched an exchange-traded fund (ETF). Okay, not the one we’re all waiting for, but it’s still a notable achievement nonetheless. Grayscale Future of Finance UCITS ETF is the digital asset manager’s first European ETF and will track the performance of the Bloomberg Grayscale Future of Finance Index. The fund doesn’t invest in crypto outright but provides exposure to companies directly involved in the digital asset ecosystem — miners and trading apps especially. An exciting milestone: Announcing our first European ETF, Grayscale Future of Finance UCITS ETF — listing on London Stock Exchange (LSE), Borsa Italiana, and Deutsche Börse Xetra. https://t.co/kwmWSxvOiV— Grayscale (@Grayscale) May 16, 2022

BitMEX launches spot crypto exchange following $30M penaltyCrypto derivatives exchange BitMEX — home of the now-infamous liquidation cascades — is moving beyond offering just derivatives by launching a spot trading platform. BitMEX Spot Exchange gives investors the ability to trade seven crypto pairs, including Bitcoin, Ether (ETH), Chainlink (LINK) and Tether (USDT) — without the ability to get absolutely wrecked in the process. BitMEX recently cleared $30 million in civil penalties after the company’s cofounders, including Arthur Hayes, pleaded guilty to violating the Bank Secrecy Act. How will you survive the bear market?I’ll be honest: Crypto’s implosion over the past few months has been unlike anything I’ve ever seen. A lot of investors are in extreme pain right now. Trust me, I’ve been there. I’m not going to sugarcoat your losses or fill this page with cliches, but as famed value investor Benjamin Graham once observed: “Abnormally good or abnormally bad conditions do not last forever.” This week’s edition of The Market Report dissects the current bear market and gives you a few survival tips to come out the other side stronger than ever. [embedded content]Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

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Crypto Biz: Luna’s meltdown will live on in infamy, May 5-11, 2022

Crypto Biz: Luna’s meltdown will live on in infamy, May 5-11, 2022

Uverejnil používateľ | máj 13, 2022 |

Terra’s meltdown forced cryptocurrency investors to ask a question they never thought was possible: Will TerraUSD (UST) or Terra (LUNA) reach $1.00 first? The magnitude of this question provides a sobering reminder of just how quickly things can change in crypto. While Terraform Labs co-founder Do Kwon remains defiant, many people in the industry are beginning to distance themselves from the protocol they thought was delivering real-world utility for stablecoins and Bitcoin (BTC).The threat of contagion from Terra’s apparent collapse could take months or even years to fully quantify, but it looks like the howls of crypto winter are growing louder. Luckily, blockchain projects are bootstrapped with tens of billions of dollars. They will continue to build. Can you wait a little while longer to realize your digital-asset investment thesis? Celsius Network execs deny rumors of significant losses amid market volatilityThe fallout from the UST/LUNA fiasco shined a negative spotlight on Celsius Network, a crypto-focused wealth management platform that was allegedly “wiped out” due to the events of the past 72 hours. But, nothing could be further from the truth, Celsius’ leadership team confirmed Wednesday. Rod Bolger, the company’s chief financial officer, told Cointelegraph that “we are not exposed in any significant way to market swings,” including the crypto crash sparked by LUNA. CEO Alex Mashinsky also tried to set the record straight. Notwithstanding the extreme market volatility, Celsius has not experienced any significant losses and all funds are safe.— Alex Mashinsky (@Mashinsky) May 11, 2022FCA-regulated Fasanara Capital raises $350M crypto and fintech VC fundIf you had managed to read anything other than Terra news this week, you would’ve known that a prominent United Kingdom investment firm raised $350 million for a new crypto and fintech venture capital fund. Fasanara Capital, which manages $3.5 billion in assets, has identified Web3 and crypto as a major investment opportunity — so much so that it’s planning to make bigger equity commitments to startups than traditional venture firms. Venture firms don’t care about crypto market cycles. They just want to accumulate as much equity in the sector as possible. Latin America’s largest digital bank will allocate 1% to BTC, offer crypto investment servicesA digital bank in Brazil with exposure to more than 50 million customers is investing 1% of its net assets into BTC and making it easier for people to buy, sell and store digital assets. Nubank, the largest neobank in Latin America, announced this week that it has partnered with Paxos to make its crypto ambitions a reality. Cointelegraph has been reporting for years that Latin America is an emerging crypto hub. If you’re feeling nervous about the market, check out what Nubank’s executive team has to say about crypto’s potential in the region. Michael Saylor assuages investors after market slumps hurts MSTR, BTCWith Bitcoin plunging below $30,000 — and MicroStrategy’s average BTC cost basis — CEO Michael Saylor reassured investors that his crypto-heavy business intelligence firm was at no risk of being margin called. Saylor said it would take a Bitcoin price collapse below $3,600 before the company had to post other collateral. Crypto Twitter has already accused Saylor of secretly selling a portion of his BTC stash. That’s not true and neither is the rumor that MicroStrategy is going bankrupt because of its Bitcoin reserves.MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx— Michael Saylor⚡️ (@saylor) May 10, 2022

Can you stomach more LUNA analysis? Watch this videoThe Market Report panel met outside its usual hours this week as I joined fellow analysts Jordan Finneseth, Marcel Pechman and Benton Yuan to talk about Terra Luna. We talked about what exactly went wrong with the Terra ecosystem, how UST lost its peg and what this could mean for your portfolio over the next 12 months. You can watch the full replay below.[embedded content]Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered directly to your inbox every Thursday.

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Breaking: Do Kwon proposes Terra revival, including token redistribution plan

Breaking: Do Kwon proposes Terra revival, including token redistribution plan

Uverejnil používateľ | máj 13, 2022 |

Terraform Labs co-founder Do Kwon has tabled a proposal to preserve the Terra ecosystem following the historic de-pegging of its algorithmic stablecoin, UST, and the resulting death spiral that plunged LUNA tokens to practically zero. In a Friday post on Terra’s research forum, Kwon said, “The Terra community must reconstitute the chain to preserve the community and the developer ecosystem.” His proposal, which was in response to validator groups discussing the possibility of forking the Terra chain, involves compensating UST and LUNA holders who were unable to sell their holdings during this week’s price collapse. Kwon proposed that validators should reset network ownership to 1 billion tokens distributed among LUNA and UST holders, as well as a community pool to fund future development. Specifically, 40% of the newly distributed tokens would go toward LUNA holders before the de-pegging event; 40% would go towards UST holders on a pro-rata basis at the time of the new network upgrade; 10% would be allocated to LUNA holders just before the chain halted operations and the remaining 10% would go toward the development pool.The story is still under development.

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