DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders survey “State of Crypto 2020.”

The sector has seen immense growth in 2020 and continues to hit new highs; just today, a new record was set of $12.5 billion TVL.

The founders surveyed said notwithstanding the price of DeFi tokens, which have been tanking hard until very recently, “the protocol development and business growth of 2020 bodes well for the industry’s future.”

What has been the most bullish crypto industry development this year?
DCG Survey: What has been the most bullish crypto industry development this year?

DeFi is followed by “BTC resilience” and “Stablecoin surge,” which makes sense given that the market cap of fiat-backed crypto has shot up past $12 billion this year.

​“The growing demand for stablecoins in Latin America, and Argentina specifically, is due to the fact that buying dollars as a form of savings is a regular monthly habit for middle-class Argentinians, due to cyclical devaluations and loss of trust and credibility in the Argentinian peso,” said Sebastian Serrano, CEO of Ripio, an Argentinian digital asset exchange, and payments company.

​Still, respondents were split on whether Ethereum, which is the center of it, will remain the dominant transaction-based blockchain. 51% still believe the second largest network will find scalability faster than new blockchains develop a community.

Adoption Drivers & Greatest Risks

What macro development will have the greatest impact on digital currency adoption?
DCG Survey: What macro development will have the greatest impact on digital currency adoption?

Other findings of the survey revealed “global recession” (24%), “inflation” (19%), and “hunt for yield” (18%) as the main macro crypto adoption drivers. However, the smart money adoption won’t be bringing new highs for BTC price in the next 6-12 months as per the majority.

Only 20% think during this period, BTC will surpass $20,000.

Where do you think the BTC price will be in 6-12 months?
DCG Survey: Where do you think the BTC price will be in 6-12 months?

Meanwhile, nearly six in ten respondents expect industry consolidation, resulting from big players buying smaller ones to limit competition to accelerate, particularly in the exchange and wallets & custody spaces.

However, the industry’s greatest risk remains the same; compliance and regulation as per 51% of the respondents.

“It’s really important that we start to see some consistency and coordination across regions,” said Simone Maini, CEO of Elliptic, a blockchain forensics, and analysis company, “there are still plenty of opportunities for regulatory arbitrage at the moment, where businesses are trying to operate in jurisdictions with looser regulations.”

Other factors that impede sustainable growth involve theft/hacks/scams (22%), investment crunch (12%), and technical obstacles (8%).

Overall, in 2020, four in five rated their company’s performance against expectations as “outperformed” or “neutral” while having COVID/remote work, third party delays, and fundraising as the main business challenge.

Read Original/a>
Author: AnTy

Anchorage & Tokensoft Collab to Bring Wrapped Coins to Ethereum; Zcash (ZEC) Is Up First

The growing popularity of decentralized finance (DeFi) has attracted many other digital assets to Ethereum, including Bitcoin, in a wrapped layer one solution. The latest to join the league is the privacy-centric coin Zcash (ZEC). The Wrapped Zcash is brought into the Decentralized ecosystem by Anchorage in association with Tokensoft.

Wrapped ZCash (wZEC) is the first asset launched by the “wrapped” project in association with Ethereum tokenizers Tokensoft and the qualified custodian Anchorage. The liquidity for the wrapped project would be offered by over-the-counter (OTC) liquidity provided by CMS Holdings.

However, Wrapped Zcash is not the first wrapped digital asset on Ethereum. Wrapped Bitcoin has been quite popular as the DeFi market continues to explode. A wrapped digital asset transfers the value of that particular digital asset onto the Ethereum blockchain by creating an ERC-20 token with a 1:1 value representation against the asset. Thus one Wrapped bitcoin would be equivalent in value to that of 1 bitcoin.

This allows for other digital asset holders to access the DeFi space and collateralize that asset instead of buying Ether and then collateralizing it. This also helps in increasing the liquidity of the DEX ecosystem.

Zooko Wilcox-O’Hearn, Zcash founder and Electric Coin Company CEO, commented on their recent association with Anchorage and Tokensoft and said,

“I’m thrilled that there is such interest, and that people can, and do, innovate and deploy extensions on top of Zcash without the Electric Coin Company’s knowledge or approval.”

“I also agree that it’s great for people to have more alternatives to centralized exchanges (CEXs), and the way that CEX’s have to comply with arbitrary demands from their banks.”

Read Original/a>
Author: James W

Interest in DeFi Falls to Pre-Mania Level, Uniswap Volume on a Decline Despite CEX’s Issue

The DeFi market continues to see strong growth, with the total value locked (TVL) in the sector above $11 billion. While a record of almost 160k BTC is locked in DeFi, the locked Ether is also approaching the peak at 8.7 million ETH.

The mid of June was the “turning point” for DeFi finance, as per LunarCRUSH’s report confirmed by Google Trends when a steady upward trend in the US searches for the term DeFi was seen, which peaked in August only to fall sharply in September.

image2
Interest in term DeFi over time, Source: GoogleTrends

But the current scenario could further accelerate this growth.

The ongoing investigation into popular crypto derivatives platform BitMEX, and now issues at OKEx is likely to spur on further flow out of CEX and into DEX venues.

Already, as we reported, the trading volume on decentralized exchanges has rushed to new high thanks to DeFi and yield farming hype in Q3.

Monthly trading volumes for top 10 DEX increased 700% from July to $30.4 billion in Sept. while CEXs recorded $300 billion, the same as the previous month. The market share of DEXs that continues to increase is expected to grow further, that too, at the expense of CEXs.

The most popular DEX, which accounts for more than 60% of the volume, is Uniswap. The hottest trading platform was launched less than two years back and raised millions from venture capitalists, including Paradigm, Andreessen Horowitz, and Union Square Ventures LLC.

In the overall crypto space, it is the fourth-biggest exchange after Binance, OKEx, and Huobi. Paul Veradittakit, a partner at California-based Pantera Capital Management LP, which is considering investing in Uniswap’s governance tokens UNI said,

”It’s just phenomenal. We can really see decentralized exchanges make a huge dent in the market and potentially overtake centralized exchanges.”

Since dropping to half a billion dollars after its clone SushiSwap sucked the liquidity, the liquidity on Uniswap has been surging, surpassing $3 billion on Thursday. However, it is currently averaging a daily trading volume of $220 million, on a constant decline from Sept. 1st’s ATH of nearly a billion dollars.

Uniswap Volume
Source: Uniswap Info

It is rather a blessing for crypto projects as Uniswap, which generates revenue through transaction fees, doesn’t charge the issuers to list new tokens. Users don’t have to provide documents for KYC or AML measures as required by traditional crypto exchanges because of regulatory pressure.

Trading on Uniswap also means a bigger market to trade as it currently has 845 tokens listed while the leading spot exchange Binance only has 820 coins.

However, while Binance had over 15 million users at the end of last year, Uniswap is used by only 50k to 100k people, Kyle Samani, co-founder of crypto hedge fund Austin, Texas-based Multicoin Capital Management told Bloomberg. He said,

“This competition is just getting started. We are in the first inning.”

Read Original/a>
Author: AnTy

Coinbase Custody Exploring 39 Crypto’s Including DeFi Tokens for Listing

Coinbase continues to take its altcoins and DeFi listing spree one step further every other day. Today, the San Francisco-based exchange announced a slew of other tokens its exploring to add support for.

After adding FTX (FTT) and Serum (SRM), Coinbase Custody that offers features such as staking, governance, and decentralized finance (DeFi) and serves institutional clients across the Asia-Pacific region, announced a total of 39 new digital assets that are up for listing.

Coinbase’s crypto custodian has released the latest list of all the digital assets that it is exploring for listing, including some known DeFi tokens and some unknown ones that are heard for the time here only.

Aave (AAVE), Amp (AMP), Ampleforth (AMPL), Ankr (ANKR), ArCoin (ArCoin), Audius (AUDS), Barnbridge (BOND), BitTorrent Token (BTT), Centrifuge (RAD), Conflux Network (CFX), Curve (CRV), DFI.Money (YFII), Elrond Gold (EGLD), JUST (JST), JUST Stablecoin (USDJ), Meta (MTA), MovieBloc (MBL), mStable (MUSD), Neo (NEO), Nervos (CKB), Nexus Mutual (NXM), NKN (NKN), NuCypher (NU), Ontology (ONT), Paxos Gold (PAXG), Paxos Standard (PAX), Reserve (RSV), Reserve Rights (RSR), Request Network (REQ), Skale (SKL), SUN Token (SUN), tBTC (TBTC), Terra (LUNA), The Graph (GRT), Tron (TRX), VeChain (VET), WING (WING), WINK (WIN), and Wrapped Bitcoin (WBTC).

Some of these tokens like WBTC have already been supported on Coinbase’s other platform Coinbase Pro.

According to Coinbase, support for any digital asset is subject to its “significant technical and compliance review,” which in some cases may also be subject to regulatory approval in some jurisdictions.

Read Original/a>
Author: AnTy

Coinbase Adds Wrapped Bitcoin (WBTC) & Custody Service to Support Filecoin (FIL)

In its DeFi listing spree, Coinbase Pro has added the popular and fast-growing Wrapped Bitcoin (WBTC).

The San Francisco-based exchange has taken to list all the hot and happening DeFi products, and WBTC, which has grown to become the third-largest DeFi project with nearly $1.2 billion in total value locked (TVL), is the latest one.

An Ethereum token, WBTC represents Bitcoin on the Ethereum blockchain, where 1 BTC can be converted to 1 WBTC and vice-versa. This protocol allows bitcoin holders to participate in the popular DeFi space.

WBTC listing is announced with two trading pairs, USD and BTC.

Starting Monday, Oct. 19, WBTC will be available in all Coinbase’s supported jurisdictions except New York state.

Recently, Coinbase has added support for the likes of Yearn.Finance (YFI), Balancer (BAL), Uniswap (UNI), UMA, REN, Loopring (LRC) BAND, Compound (COMP), Celo (CGLD), Numeraire, and OmiseGo (OMG) along with supporting additional European and UK order books.

Amidst this, the same day, Coinbase Custody also announced at-launch support for Filecoin (FIL), which after years of first coming into the market, finally launched its mainnet.

“We’re thrilled that Coinbase Custody is providing secure custody for FIL. Coinbase has a great track record of building new, innovative tools for its users,” said Juan Benet, Filecoin founder.

Filecoin is a decentralized storage network and marketplace where miners earn FIL tokens by renting open hard drive space, and clients pay them to store and retrieve their data.

Its testnet took off in China, and already “roughly $100M of storage hardware is humming on the testnet.”

“Buying hardware and converting it directly to crypto is key here,” said Muneeb Ali, co-founder of Blockstack.

Yesterday, the mainnet of the Filecoin network was launched at block 148,888, a number the team said signifies “prosperity for life” in Chinese, chosen “to honor the epic contribution by our Chinese mining community to Filecoin’s long-term success.”

Read Original/a>
Author: AnTy

“I Don’t Build For Speculators, I Build For Developers,” Says YFI Creator Andre Cronje

DeFi darling YFI’s creator Andre Cronje clarifies that he doesn’t “build for speculators.”

“I do not build to make a number go up. I build for developers,” said Cronje in a post on Thursday.

YFI, the governance token of Yearn.Finance is known as the fairest launch of the DeFi world, which was launched as a zero valueless, 0 supply token with no allocation to the project team members.

The token surged to its all-time high of $43,680 in just two months of its launch and is currently trading around $14,200.

Thrice, there have been reports of Cronje quitting the project only to backtrack. According to him, this project isn’t about him anymore, it’s a big ecosystem with a team, and he is just a contributor.

“Test in prod.”

While token investors seek to gain from their token investments, Cronje said having tokens means “you want to be a contributor, not a bystander,” and they shouldn’t be treated as stocks.

He further explained his famous statement “test in prod,” which he has “come to regret” as it was used so that people use the protocol with caution —

“It exists to deter people from just using systems without investigation.”

It also doesn’t mean he doesn’t test. While explaining his development cycle, Cronje said it involved various stages; the first involved making sure everything is functional, the second is interaction testing followed by composite testing.

Stage four is fake prod, which replicates ETH mainnet and integration testing. Deploying to mainnet happens in stage 5. The last stage is prod deployments that coincide with UI’s and information sharing through medium articles.

“Testing is an iterative process. I have discovered issues on mainnet I never encountered locally, I have failed to replicate mainnet systems locally, and I have encountered errors locally that I can’t replicate on mainnet.”

“Continue building.”

Talking about EMN, which rug pulled on $15 million, he said its “code functioned as designed and at stage 5, 2 different versions were deployed.

As for LBI, which he explicitly asked not to use as they were valueless, unlike YFI, it is “working as intended,” and he’s using it to create real-world examples of how such templates function.

Overall, his focus is on building, which he will continue to, and he doesn’t foresee ETH disappearing or other builders stopping.

Despite Cronje’s explanation, YFI is not showing strength yet and continues to drop with the rest of the market.

“This post should make many people support Cronje while making many others wonder if he is a hypocrite or lives in a bubble. Either way, the Cronje premium had turned into a discount,” said trader and economist Alex Kruger.

While some traders see YFI as “finished” until it brings something new, others are still bullish given that it is still 64% away from its highs, high vol capitulation at $12k, very low supply, and an army of devs building stuff on it that will inevitably get hyped. In the meantime, Cronje said,

“I wish to develop, deploy, and share what I build with fellow developers so that we may collaborate and build more.”

Read Original/a>
Author: AnTy

OFF BLUE NFT Project Returns Customer Funds After Rarible Suspension

As the craziness in the DeFi market wanes, especially the mania around high APYs and yield farming cooling down, market participants have shifted their focus to non-fungible tokens (NFTs).

With the DeFi tokens down 80% to 90% in the past two months, people have to find excitement in something else.

And it was NFT, which has been seeing a lot of limelight lately. Even Christie’s sold its first NFT with Block21 at 7x the estimated price.

Ethereum’s ERC-721 standard made for DeFi degens, the fact that these digital collectibles can be used for yield farming is just cherry on the top, satisfying their appetite following the absence of food tokens every other day.

Dapper Labs has also taken advantage of the NFT trend and closed an $18 million token sale on CoinList on the back of its collectibles game, NBA Top Shot. The funds were raised with participation from 13,000 people between Sept. to Oct. 2.

Shutting Down

Amidst this, the popular marketplace to create and sell the NFTs Rarible, which launched the first governance token RARI in this space, suspended the OFF BLUE team account over the weekend.

“We have suspended the OFF BLUE team account until further examination due to potential violations of our terms of service. Rarible is not intended to facilitate capital-raising transactions.”

The project has been accused of rug pulling millions of dollars, which has now been refunded, 1 ETH for 1 NFT, as it closes.

Going with doxxing, threaten, and cancel, FTX CEO Sam Bankman-Fried says, the internet overreacted by not going with the path of “ask questions, give feedback, wait for responses, don’t buy unless/until you’re comfortable.”

A few days back, Twitter user @CL, who works at Yearn.Finance, shared his conversation with Blue Kirby — who was the communications manager at the project, and later made an exit after he promoted YFI creator Andre Cronje’s Eminence.Finance, which was exploited for $16 Million — which reflects on the shadiness of the project.

Still Building

OFF BLUE’s idea was to use the proceeds from their several art sales to fund a “custom platform further.” They planned to acquire some epic art, Banksy, KAWS, Warhols, to auction on OFF BLUE but didn’t communicate the game plan over the concern of someone else beating them to it. The official closure statement reads,

“This would have created unimaginable hype for OFF BLUE and positioned the decentralized Sotheby’s for long-term success.”

The team is now returning the Ether, a claim process that will go on for the next 14 days. In case one does not claim the refund, it will go towards the development of the OFF BLUE, which the team continues to build.

Read Original/a>
Author: AnTy

Lending Protocol, Aave, Raises $25M From Investors; Plans to Bring DeFi Closer to Institutions

Aave, one of the leading DeFi protocols for lending and borrowing, announced today that it had received a $25 million investment from prominent investors, including Blockchain.com Ventures, Standard Crypto, and Blockchain Capital. The newly injected funds boost Aave’s capital base; the firm had already raised $24 million since 2017 in three token sales.

According to Aave’s CEO, Stani Kulechov, they are now looking to expand their footprint in the Asian market and bring DeFi closer to institutions;

“Aave raised funds from strategic investors to bring DeFi closer to institutional use and to expand the team size to serve the growth in Asian markets.”

Kulechov also noted that the strategic investors would be included in Aave’s governance and get an opportunity to stake on this DeFi protocol. This development coincides with the ongoing migration to ‘Aavenomics’ as earlier reported by BEG.

Aave has been upgrading its native token ‘LEND’ to a more effective governance token ‘AAVE’; the initiative rolled out earlier this month but had been in the works since the beginning of 2020. Kulechov said,

“Aave is now moving towards the AaveDAO, which means that after the migration from LEND to AAVE, anyone can build new functionality into the protocol along with the Aave team, effectively decentralizing development and governance.”

Aave’s DeFi protocol has been thriving; its current TVL stands at $1.15 billion according to metrics from DeFi Pulse. This makes it the third-largest DeFi protocol as of press time; the platform touts close to $500 million worth of flash loans since its debut about nine months ago. Its prospectus native token ‘AAVE’ was recently listed on Gemini exchange and featured in custodial services.

Read Original/a>
Author: Edwin Munyui

FTX CEO Sam Bankman-Fried’s Almeda Continues to Short YFI, Now Adds ETH & LINK Too

Almeda’s Quant trading firm is now onto shorting the center of DeFi Ethereum, DeFi darling YFI, and the top DeFi cryptocurrency LINK.

The platform has investments in some of the top DeFi tokens, including WBTC, REN, BAL, COMP, SNX, NXM, and others.

But for now, they are short on ETH, LINK, and YFI.

Shorting YFI makes the most sense out of the three here, given all that is going around it. After what looked like a bottom last week, this popular DeFi token is back to sliding south. Recently, rumors were floating around of its creator Andre Cronje quitting the project, as even conveyed by the founder to a media publication himself only to deny it all on Twitter. He wrote,

“Still here. Still building. Nothing has changed. Anyone that says otherwise fuck off. I’m just done tweeting and being on social media.”

So, for right now, it just means Almeda sees YFI price declining, as Sam said YFI “have great builders — and might come roaring back if/when Andre builds cool shit that’s less yield farming related.”

The second-largest cryptocurrency, Ethereum, meanwhile, is currently trading at around $385, down nearly 1.25% in the past month but still holding onto a 192% return YTD.

LINK has moved back above $11.25 after experiencing huge losses -62.5% since hitting its peak in mid-August. The 7th largest crypto seems to have found its bottom around $7.5 in late Sept.

“Alameda is short ETH, LINK, and YFI in size. Let’s blow them up,” said trader and economist Alex Kruger.

As we reported last week, when the crypto twitter came to know that FTX CEO Sam Bankman-Fried’s Almeda is short on YFI, CRV, and UNI, some weren’t happy to see the company not feeling bullish around their favorite tokens.

Meanwhile, some think of it as a catalyst to the DeFi bottom, a move that will accelerate the downward momentum and get the winter down and over with so that the tokens can start its journey upwards again.

Among the tokens shorted by the trading company previously, CRV has lost 99% of its value while UNI and YFI are down 60% and 63% % from their ATH, respectively.

At that time, over the community’s vocal disappointment of Almeda – “a team of traders,” shorting the DeFi tokens, Sam took to Twitter to clarify that his focus is FTX and Serum, and not Almeda. However, he is “involved in larger investments,” there. He said,

“We naturally get long crypto: from FTT, and SRM, and all of our investments,” and “short the things that are less exciting.”

According to him, yield farming is a “bubble,” and “as is much of DeFi, and most of NFTs right now.”

“I’m not bullish on ETH-based DeFi as it exists: it just doesn’t scale, and that’s fatal. But that doesn’t mean future DeFi won’t be huge!”

Read Original/a>
Author: AnTy

What the Painful DeFi Correction Did, Actually Good For the Market?

The DeFi ecosystem started to recover this week thanks to Bitcoin’s positive momentum that drove the crypto market upwards.

While the likes of YFI, SUSHI, UNI, CRV, RUNE, BAL, and KNC are experiencing mild losses today, less than -5%, considerable gains are recorded by UMA (+32%), AST (-28%), MFT (+27%), and AKRO (+24%) with less than 10% gains seen by YFII, LRC, KAVA, LEND, MKR, COMP, SNX, ZRX, and others.

As a result, the total value locked (TVL) in the sector also saw an uptick, approaching $11 billion yet again.

With this, the DeFi tokens look to be finding the bottom, after all, following the deep correction that went on for a few weeks, that came after a wild rally, resulting in many popular tokens to lose 80% to 90% of their value.

Still, some are glad the pullback happened because “as painful as it was, it accomplished a few things: 1. Washed out the weak hands 2. Gave us a sense of where value for DeFi assets are in a big drawdown 3. Hopefully killed off random food coins offering 10000% APY farming,” noted a former partner at Goldman Sachs who is now part of the crypto fund, The Spartan Group.

According to him, even some of the family offices and high net worth individuals (HNWI) are now “starting to get curious, and they will get into the action via funds as it is too hard for them to do it themselves.”

The Macro Trend

The overall crypto market is currently experiencing the greens, with Bitcoin and altcoins seemingly belonging to the same asset class and being correlated to each other.

However, according to the quant trader and entrepreneur Qiao Wang, “Reality is BTC is increasingly behaving like a macro asset whereas alts are still very much venture bets.”

In the macro world, the markets are eagerly waiting for the US presidential election, coming in November, to end the uncertainty prevalent in the market currently. Moreover, the stimulus package isn’t expected to be approved until then, either.

According to Bloomberg’s latest crypto newsletter, while Joe Biden’s win as the president would be good for Bitcoin, in contrast with Donald Trump’s “hands-off policy,” it would hamper DeFi’s growth.

“The world has morphed into one big macro trade. Asset prices are increasingly driven by global policy expectations rather than underlying fundamentals. Deflation + insolvency risk is rising,” noted Kevin Kelly, co-founder Delphi Digital.

The current environment outlines the bull case for Bitcoin and crypto, “the backdrop has never been more conducive for this industry to thrive,” with historical Q4 performance suggesting we could push to new highs.

But the “risk of deflation, insolvencies, and upside dollar risk are of paramount concern for markets,” including bitcoin and crypto alike, added Kelly.

Read Original/a>
Author: AnTy