This July, Luxembourg — the world’s second-largest domicile for investment funds behind the United States — submitted a draft law updating a law from March 1, 2019 that allowed for the registration and transfer of securities by custodians. With this draft law, issuance itself can be based on distributed ledger technology, thereby introducing truly dematerialized DLT or blockchain-based securities. Furthermore, a central “issuance account” keeper (transfer agent) is required to assume responsibility, and the account keeper has to be authorized by any member state of the European Economic Area, which…
Day: September 12, 2020
A by-the-minute look at Tether’s $1 billion swap from Bitfinex to Binance
On August 20, a Tether swap worth $1 billion happened — it involved Binance, Bitfinex, and a major fire dumpster on TRON (TRX) blockchain. Tether flows. Source: Flipside Crypto. From time to time, the news of Tether burning some of its supply on one blockchain and then minting it anew on another appears in the headlines. Although it sounds easy enough, in reality, it involves quite a bit of planning and more importantly — trust. Tether $1 billion swap transactions. Source: Cointelegraph. During the six-transaction swap that spanned two blockchains…
A shrinking window of opportunity
Over the years, we have seen a lot of trends such as initial coin offerings, initial exchange offerings, security token offerings, decentralized autonomous organizations and many more, but none of these have become the mainstream. The concept of decentralized finance undoubtedly has its merits, but as the factors that sank the predecessors remain, we have reason to conclude that DeFi is not for long. The window of opportunity has shrunk for several reasons: firstly, because of fraud within the space; secondly, the readiness of regulators to “save” the market from…
DeFi meme coins spark debate over their intentions
In recent weeks, talk of hotdogs, sushi and yams has infiltrated the crypto industry. Such references, however, are not as they seem and actually relate to assets in the decentralized finance sector of crypto. Over the course of 2020, DeFi has seen bubble-esque speculatory levels based on projects that may or may not hold long-term promise or stability. Opinions on the new hype surrounding food-themed tokens vary. “It’s just a fad,” Tone Vays, a YouTube content creator and derivatives trader, told Cointelegraph, adding: “They’re all literally Ponzi schemes.” Meanwhile, Philip…
Why DeFi, in its current state, is destined to fail
Decentralized finance, in a nutshell, promises transparency and offers beneficial terms for borrowers. DeFi platforms are supposed to build an alternative financial system for offering/receiving loans, exchanging currencies, making payments, etc. There are no banks, brokers or trusted third parties, governments are not involved, and finally, notorious middlemen are eliminated. There is just secure, transparent software. DeFi allows borrowers to take hassle-free loans: You don’t have to worry about bank account creation, lengthy application reviews or paperwork. For crypto holders, DeFi offers an opportunity to lend their assets to other…
‘Ethereum is where DeFi will continue to be’
Following the collapse of initial coin offerings, venture capital became the primary funding source for cryptocurrency projects. A slew of crypto-native funds opened their doors, one of them being Framework Ventures, a fund primarily investing in decentralized finance that was co-founded by Michael Anderson and Vance Spencer. Cointelegraph previously reported on Anderson’s philosophy of network capital, a change in investing mindset that is almost necessary in a space where decentralized protocols take the place of traditional companies and equity structures. Framework Ventures has made several investments, notably into Chainlink’s LINK…