Binance Bitcoin Futures Skyrockets to $48,000 in a Monster Wick

OI on Binance BTC futures is currently at 78.89k BTC, down from 101.37k BTC from last week, while being the only exchange to have a negative change in ETH futures’ OI in the past 24 hours but still sitting at the highest 627k ETH.

The textbook short squeeze that took place this weekend saw the price of bitcoin going as high as $48,000 on the leading cryptocurrency exchange.

On other crypto exchanges, this short squeeze sent the price of bitcoin to nearly $40,000 and Ether to almost $2,400, with Binance an anomaly.

On Binance itself, while Bitcoin wicked to about $39,800 on spot and on futures, it went as high as $48,168. In response, Binance has reportedly said that “API user place wrong orders, the liquidation price is the marked price, the extreme price will be automatically removed, and the user will not be affected.”

In the past 24 hours, more than 100,000 traders were liquidated for about $1.14 billion, with nearly $950 million being the short positions.

Bybit accounted for a majority of these liquidations at about $440 million, followed by OKEx and Huobi for just under $220 million, according to Bybt.

Binance, meanwhile, is accounting for a mere 11.4% of these liquidations at $129.5 million. However, the leading crypto exchange has stopped showing accurate liquidation for some time now, and these figures are expected to be much higher. Previously, Binance used to lead the market in liquidations.

This can be seen in the second-biggest drop of over 12% in OI on Binance’s Bitcoin futures in the past 24 hours.

Currently, at 78.89k BTC, it is down from 101.37k BTC on June 20, which was an increase of 78% in nearly a month as new short positions were opened. Still, it is the highest OI, accounting for 22.7% of the total BTC futures open interest.

“Binance straight up under-reports liq data, but OI down by ~12k BTC following that move and net buying on that 1m candle was ~12k BTC. Good ol cascade,” commented trader Hsaka. “Around ~$600m of forced buying in under 60 seconds.”

When it comes to Ether futures, only Binance has a negative change of 4.45% in the past 24 hours, now sitting at the highest 627k ETH while others had an increase in OI.

Amidst all this, Binance CEO Changpeng Zhao announced that they have started limiting new users to a maximum of 20x leverage a week ago on Monday.

“In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks,” he added.

Meanwhile, several hedge funds have curbed their trading on Binance as the regulatory crackdown on it intensifies, the Financial Times reported.

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Author: AnTy

BUNNY Down Over 97% from its April Peak, Project Enhances Security Protocol After the 2nd Exploit

BUNNY Down Over 97% from its April Peak, Project Enhances Security Protocol After the 2nd Exploit

PancakeBunny, BSC-based decentralized finance (DeFi) yield farming aggregator and optimizer, has been hacked yet again.

Two months ago, PancakeBunny got rekt on Binance Smart Chain, and this time, the same happened on Ethereum sidechain Polygon. In May’s flash loan attack, $45 million was lost; this time, only $2.5 million was lost.

There has been growing speculation that it could be an inside job while the team assures a plan to compensate the victims.

For now, the total value locked (TVL) in the project is at $602 million, up from $593.65 million last week after the hack.

According to Defi Llama, in early May, the project boasted a whopping $7.54 billion in TVL.

The “economic exploit” occurred on July 16, resulting in the minting of 2.1 million polyBUNNY leading to a drop in its price.

As of writing, BUNNY is trading $14.64, down 21% in the past week and more than 97% from its all-time high of $512.75 three months back, as per CoinGecko.

According to the post-mortem, the attacker made a small deposit in one of the Bunny Vaults and, at the same time, made a considerable deposit directly to MiniChefV2 (SushiSwap). They then called for the function “withdrawAll” to execute the attack with the amount deposited in the MiniChefV2 as interest.

The same week, the same exploit occurred on PancakeBuny fork, ApeRocketFi, which lost $260k on BSC and $1 million on Polygon.

Now, the PancakeBunny team has ensured that they are “directly compensating everyone who possessed polyBUNNY at the time of the exploit in the amount of $2.4M.”

Those who held polyBUNNY, including polyBUNNY-ETH and polyBUNNY-QUICK at the time of the exploit, are eligible for compensation in the form of MND tokens from the Team’s share of MND.

MND is the fixed-volume utility token associated with the Mound (MND) Vault to which the Bunny Community has contributed nearly 2 million BUNNY. The Team has/will contribute(d) 1 million BUNNY, 1 million polyBUNNY, 100 million QBT, a portion of all future project tokens, and a share of all future fees from fee-based products. It said,

“The final price of MND will be set at the close of the Community commitment period in a little over 1 week and will be determined by the total value of the assets committed to the Mound (MND) Vault.”

In light of the recent exploit, the team has also revised its protocols to maximize security for the launch of new products with lending platform Qubit to be the first product to launch under this enhanced security protocol.

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Author: AnTy

Bitcoin Mining Difficulty Sees 4th Downward Adjustment in a Row; Also Occured At the End 2018 Bear Market

After the latest negative adjustment, the difficulty is now down 45.6% from ATH, and the market is getting the “same vibes” as of December 2018. Meanwhile, the record downward adjustment of 11 times in a row was in 2011, which was a 51.4% drop.

This past weekend, Bitcoin mining difficulty had yet another downward adjustment of just under 5% to 13.673 trillion, last seen in early January 2020, following the most significant drop in Bitcoin’s history two weeks ago.

At the end of May, the mining difficulty was at its all-time high of just above 25 trillion. Since then, four downward adjustments have been recorded in a row, representing a drop of 45.6% due to a decline in hash rate caused by China’s crackdown on cryptocurrency mining.

These downward adjustments in difficulty are helping the hash rate recover from its 68 Th/s low at the end of June to now around 100 Th/s, with Viabtc, Antpool, Poolin, F2pool, and Btc.com being the top mining pools accounting for 59.4% of global hash rate followed by Binance, Foundry, and Slushpool which has captured nearly 22% hash power.

Bitcoin hash rate surged to its peak at 197.6 TH/s in mid-May after miners increased the overall hash power to capitalize on the booming market. Though orders for the new ASIC machines soared at the time, the total capacity was not installed due to supply chain disruption and semiconductor shortage.

“The hash rate about doubled in the past year. But if all the machines on order had been installed, it would have gone up a lot more,” said Alex de Vries of Digiconomist, which tracks Bitcoin’s energy usage.

“Same vibes” as of December 2018

The downward adjustment in difficulty made a record drop in 2011 between August to November when it dropped 11 times in a row. At the time, the fall was 51.4%.

Back in 2018, at the end of the bear market, we recorded four consecutive difficulty drops between October and December; during this time, the BTC price found its bottom. At the time, the drop was only 31% to a six-month low.

Price-wise, trader Loomdart of eGirl Capital is also getting the “same vibes” as of December 2018.

BitcoinMiningDifficulty

The drop in difficulty means mining Bitcoin has become much more manageable. Mining Bitcoin has already been profitable and became more of a windfall for miners in the US, Canada, and Russia after China’s crackdown.

These Chinese are now moving to other parts of the world where production is more active such as Kazakhstan, Russia, Malaysia, and Texas, and Tennessee in the US.

“At $28,000 per coin, electrical usage could rise by 30% above the level before China shut down, and the miners would still make good money,” said de Vries. “If it goes back to $65,000, the miners would double their power usage from before China unplugged.”

Bitcoin mining operations like Bitfarms in Quebec are particularly enjoying the abrupt shutdown in Chinese mining operations. The BTC price above $31k and hash rate needed to capture/mine new coins down by 51% from two months back.

According to Bitfarms’ public disclosures, its “mining costs” per BTC in Q1 2021, consisting of the cost of supplies, labor, and electricity, was $8,500. It mined 598 BTC in Q1, amassing $28 million with the production cost of just $6 million.

“On July 3, the Bitcoin network experienced the largest difficulty drop in history due to recent macro developments in China. This has resulted in Bitfarms producing significantly higher quantities of Bitcoin at a lower cost per Bitcoin.” founder and CEO Emiliano Grodzki explained in the company’s production-update report. “Bitfarms has nearly doubled its market share,” he added.

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Author: AnTy

Bitcoin’s the Way to Go As Inflation Records Its Highest Jump in 13 Years

The USD is getting a boost from high inflation concerns, with traders now looking forward to the Fed Chair’s testimony this week. Blackrock CEO is also concerned about inflation which he says “is going to be more systematically,” noting asset owners are the biggest beneficiaries of monetary policy.”

The US dollar continues to be perched above 90 since early last month, now aiming for 93 after data showed that US inflation for June is coming in hotter than expected. Just like the greenback, US Treasury yields also responded to the inflation data with a sharp rise.

US consumer prices rose by the most in 13 years last month as the economic recovery continues its momentum.

The rate of inflation in the 12 months ended in June jumped to 5.4% from 5%.

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However, this is to be expected as up until recently, there was a tight lockdown in the country, and still, not everything is open or operating at a standard rate. The rapid recovery of the economy is having an unwanted side-effect, higher inflation.

Transitory or Not?

In June, the cost of living jumped by the most significant amount, 0.9%, more than expected, since 2008 as inflation spread more broadly through the US economy, raising questions whether this spike in prices will subside as quickly as the central bank is predicting.

While the cost of used cars accounted for over one-third of this increase, prices for food, energy, clothing, hotels, and plane tickets also rose sharply, which also fell sharply in the early stages of the coronavirus pandemic last year.

Another measure of inflation that omits volatile food and energy also surged 0.9% in June, with the 12-month rate increasing to 4.5% to stand at a 29-year high.

While the component not associated with the used car market being twice as large, used car prices should also “probably be seen as some sort of bellwether in this case, instead of something to be ignored,” wrote analyst Mati Greenspan in his daily newsletter Quantum Economics.

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Blackrock CEO Larry Fink is also concerned about inflation. “It is my view that inflation is going to be more systematical. I believe it is a fundamental, foundational change in how we navigate economic policy,” he said in an interview with CNBC.

He further noted that with interest rates low, savers are getting slammed while “asset owners are the biggest beneficiaries of monetary policy.”

Market Reaction

Traders are now looking forward to Federal Reserve Chairman Jerome Powell’s testimony before Congress on Wednesday and Thursday for any signals on potential tapering. Fed officials first made a surprise shift in tone last month about the possibility of US stimulus withdrawal that boosted the dollar in recent weeks.

Powell, however, has repeatedly been stating that high inflation will be transitory as supply chains normalize and adapt.

The stock market waved off these latest figures, with the S&P 500 seeing a slight drop after roaring to new all-time highs on Monday. Greenspan said,

“The stocks really are in a euphoric mode right now, and investors will accept any reason to continue buying the rally.”

Cryptocurrencies meanwhile remain on the back foot since late May when they first started selling-off with the total crypto market cap now at $1.34 trillion.

This week, the crypto market is experiencing losses across the board, with Bitcoin doing its thing and trading above $32,500, recovering some from its fall to $31,565 in the last 24 hours and Ether at just above $1,900 after falling to $1,860.

While down in the past two months, in the past year, when commodity prices rose between 20% to 107%, Bitcoin rallied 250%.

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Author: AnTy

Former Cryptopia Employee, Admits to Stealing $175k Worth of Crypto from the Defunct Exchange

Former Cryptopia Employee, Admits to Stealing $175k Worth of Crypto from the Defunct Exchange

  • Former Cryptopia Ltd. employee pleads guilty to stealing NZD 250,000 worth of Bitcoin (BTC) and other cryptocurrencies from the exchange.
  • The employee returned the funds and will not face any charges.

A former employee of the now-defunct New Zealand-based cryptocurrency exchange, Cryptopia pleaded guilty to stealing almost NZD 250,000 worth of cryptocurrency and customer data while working at the firm, New Zealand media station, Stuff, reported. The employee, who asked for an interim name suspension, has since returned the digital assets and is asking for the charges to be dropped.

In a hearing before the Christchurch District Court Judge Gerard Lynch, the former Cryptopia employee admitted to two charges and is awaiting his sentencing in October. The employee is remanded on bail on account of theft by a person in a special relationship and theft of assets of more than NZD 1,000.

According to a statement from the hearing, the former employee is said to have raised complaints previously on the security of private keys but to no solution. This prompted the employee to make an unauthorized copy of private keys during his time at the firm and store them on a USB drive.

With a vast number of private keys, the employee had access to close to $100 million worth of cryptocurrencies in users’ wallets, the statement further reads.

However, once the exchange went bankrupt and closed its doors, there was no way for Cryptopia to know whether users’ accounts were compromised and any theft could go under the radar. In September 2020, Grant Thornton, who is in charge of the exchange, noticed 13 unauthorized transactions on Cryptopia’s wallets leading to an investigation.

Nonetheless, a week later, the employee turned himself in and admitted to stealing NZD 250,000. The culprit returned six Bitcoins stolen from the exchange – returning the remaining amount a few days later.

“The defendant admitted that he was frustrated with Cryptopia but also motivated by the belief that he could get away with the theft as he thought nobody would ever check the old deposit wallets,” the court summary reads.

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Author: Lujan Odera

Bitcoin Block Time Soars to Highest Level Since 2010 After Hash Rate Crashes to 2-Year Low

Bitcoin hash rate has taken a drop and is now down about 70% from its all-time high in mid-May. With this latest drop, the hash rate has fallen to a two-year low last seen in July 2019.

However, it’s just a short-term block-interval inferred hash rate, and the actual drop is about 47%.

Still, this drop resulted in an average block time of more than 23 minutes, up from the regular 10 minutes, to mine a single bitcoin block, “the largest daily mean block interval since the very early Bitcoin days,” in 2010, noted Glassnode.

Only 58 Bitcoin blocks were mined throughout Sunday, representing a drop of 60% from the baseline of 144 blocks per day.

This, of course, led to daily bitcoin miner revenue falling 80% from $70 million in May to about $12.8 million yesterday. Miners were earning the same level of revenue in early November when the price of bitcoin was around $13,000.

The largest drop in hash rate is causing a significant decline in Bitcoin network activity, with the number of active addresses also falling off a cliff, reaching levels not seen since early 2019.

Even fee is extremely low, with average fees now 0.00021 BTC ($7.12), down from over $62 in late April, and able to keep stable during this whole ordeal.

As a result, the difficulty is expected to have a negative adjustment, which reached an all-time high on May 13 and has seen two downward adjustments since.

While one wants a quick difficulty adjustment after such a harsh drop in hash rate, the fact is when the hash rate drops a lot, blocks take longer to mine, so difficulty adjustment takes longer to come.

Adjustments are supposed to happen every 14 days, but the last adjustment was 16 days ago, and there are still 453 blocks to go. The difficulty adjustment is expected to be the largest downward ever, which should lower the block times.

This drop follows China’s crackdown on cryptocurrency mining. Such a big drop means China might have gone “almost entirely off grid already.” As we reported, Chinese miners are moving overseas, but this definitely provides a great opportunity for those with access to cheap energy.

Even JPMorgan strategies can feel the bullishness of it, saying, “the crackdown on mining operations in China should be considered as positive for bitcoin over the medium term as it accelerates a shift away from China’s high share in bitcoin’s hash rate, reducing concentration.”

While a real annoyance, 60-80% drop is “not fatal,” said Balaji S. Srinivasan, former Coinbase CTO, and General Partner at Andreessen Horowitz.

“In general, the global decentralization of Bitcoin mining shows a way to robustify against the famous Thanksgiving Turkey Chart. Even the Chinese state going after mining (not really a surprise) is only causing a temporary rise in block times. So far, pretty antifragile!”

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Author: AnTy

Bitcoin Market ‘Getting to Peak Market Apathy’ With Traders Now Paying As Much As 120% To Short

Bitcoin is back on the slide on the weekend.

After recovering to $35,500 from the sell-off that took us under $28,000 earlier in the week, the price of Bitcoin dropped on Saturday to about $30,100.

In tandem with Bitcoin, Ether went to about $1,717. Other altcoins also crashed, sending the total cryptocurrency market cap to $1.3 trillion.

Before the latest drop in price, a massive Bitcoin margin short filled on Bitfinex on Friday. “Last two times large shorts built up on Finex a major price drop followed within 2-10 days. The execution method and time of the day are different this time,” noted trader and economist Alex Kruger.

With trading extremely low on weekends and gas prices on Ethereum and decentralized exchanges also in low single digits, the market seems to be “getting to peak market apathy.”

“But soon people will realize BTC won’t nuke out of this range and BTC will lead rally if anything imo, most of downside risk is on alts, but I think we can sideways range low and just nothing happens cus its not like theres big longs to liq,” said trader CL of eGirl Capital.

Even after the recent deep rout and significant price volatility over the week, Bitcoin prices remain range-bound ever since the mid-May crash.

In the futures market, funding rates have fallen significantly and gone negative. What it says is, it is now hard for prices to drop in a straight line, bad time to sell if looking to time entries or exits, and it’s cheaper to use futures to short than perpetual contracts, said Kruger.

Looking at OKEx futures data, the long/short ratio, indicative of general market sentiment, has not recovered since the cryptocurrency started crashing last week.

With the low premium for the quarterly contract which continues to shrink, testing 1% this week after running in the 3%-2% range in the last two weeks, the willingness to pay high premium shows loss of confidence in near-term price appreciation — though “very mild optimism,” it just reflects an uncertain market.

“Futures data shows lack of market conviction, but most indicators are near recent bottoms,” noted OKEx.

The declining margin lending ratio also shows retail is not buying to hold. Meanwhile, open interest remains muted; this recent stagnation is indicative of the market’s lack of interest in opening new positions.

“We need to see this market stabilize and, more important, cease to be a news story,” Nicholas Colas, co-founder of DataTrek Research, wrote in a note this week.

“The good news is that time will come, and with it will be another great investment opportunity. Until then we’re cautious as the proverbial long-tailed cat in a room full of rocking chairs.”

Amidst all this, Tesla CEO Elon Musk has agreed to discuss bitcoin with Twitter co-founder and CEO Jack Dorsey at an event in July.

Dorsey suggested, “Let’s you and I have a conversation at the event. You can share all your curiosities…,” and Musk agreed with “For the Bitcurious? Very well then, let’s do it.”

The event is scheduled to take place on July 21, according to its website, “offering a live experience and a library of content to the investor community, enabling a more informed discussion about the role Bitcoin can serve for institutions across the globe.”

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Author: AnTy

Jack Ma’s Ant Group Sells NFTs on Alipay, Clarifies They’re Different from Cryptocurrencies

Jack Ma’s Ant Group Sells NFTs on Alipay, Clarifies They’re Different from Cryptocurrencies

China’s Ant Group, the Jack Ma-controlled fintech group, put non-fungible tokens (NFTs) on sale via its payment platform Alipay. The items sold out quickly on Wednesday amidst the ongoing crackdown from the authorities.

Based on the Dunhuang theme, about 16,000 NFTs were issued by AntChain, the Ant unit that develops blockchain-based technology solutions.

AntChain provided technical services for the issuance of digital works and their virtual certificates. The purchase requirement for each was ten Alipay points plus 9.9 RMB (~$1.53), and users need to purchase the NFTs through a mini-program on Alipay called Fensili.

According to Sino Global Capital, this launch had two key takeaways; first, it involved Alipay users directly using RMB to purchase NFTs, and second while NFTs, AntChain based digital assets are more like JPGs and not what we see in the crypto market.

Ant Group, which is undergoing a government-ordered revamp restructuring after the collapse of its mega-IPO last year, drew a distinction between NFTs and cryptocurrencies following the concerns on social media regarding whether they are even allowed to be involved in NFTs while China is cracking down on crypto trading and mining.

“NFT is not interchangeable, nor divisible, making it different by nature from cryptocurrencies such as bitcoin,” said a spokesperson at AntChain.

NFT digital artworks are also auctioned on Alibaba’s platform that can be accessed by the Alipay app. According to AntChain’s product agreements, it provides blockchain technologies to NFT products. Sino Global Capital said,

“There has been much excitement about these NFTs in China with some people wondering, if the NFTs prove a hit, will the combination of Alipay’s hundreds of millions of users, the convenience of its direct payments and integration with other Alipay products, make Alipay one of the world’s largest “NFT” marketplaces in the future?”

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Author: AnTy

Open Interest On Binance Bitcoin Futures Soaring While New Money Is On Its Way

Cryptocurrency prices recovered sharply from Tuesday’s losses; however, the market hasn’t come out of the woods yet.

Currently, around $33,000, Bitcoin remains trapped within the range of the mid-$30,000s while Eth is trading near $1,900.

While “The Big Short” investor Michael Burry continues to call for the mother of all crashes for crypto with his latest tweet reading, “Trapped bulls often fall for the latest support,” there is still a lot of dry powder sitting on the sidelines and tons of new money flowing in the private crypto market.

Following the latest sell-off this week, open interest in BTC terms has also increased on the leading exchange.

“We’re seeing unprecedented pace of open interest growth on Binance,” noted trader CL of eGirl Capital. At the time, on Tuesday, CL reported OI at 57,000 BTC “at an all time high,” which has now surged to 81,200 BTC, an increase of 42% in just two days.

According to trader and economist Alex Kruger, the scenario presented by Burry can happen and is one of the reasons why holders and funds have been selling so much lately and stablecoin balances on the sidelines are so large.

“Look at the market, it is rather dead. Yesterday ended up as a simple short squeeze,” he said.

But for Bitcoin to break down hard, “it would likely need to first get bulled up, let longs lever up,” he said, pointing to the breakdowns of support in September 2019 and November 2018. In both those cases, funding prior to the break was very positive while currently is negative.

Funding has been consistently negative since May 19, when the first breakdown occurred with bulls scared & hedged.

According to trader CL, however, it is likely if we pump, we will continue to see negative funding because “current positioning ppl are just gana fomo more.”

“Fundamentals are healthy, and there is too much negativity priced in,” said Felix Dian, who runs a crypto-focused fund at MVPQ Capital in London. “Derivatives data, including backwardation in futures, tell us that there is a strong short base at the moment, making any leg lower unlikely to be durable as shorts get squeezed.”

A major string of negative headlines — ESG concerns, China FUD, and Federal Reserve discussing tapering — meanwhile “would bypass the need of positioning tilted to the long side.”

While China’s FUD is expected to subside after the politically sensitive 100th anniversary of the ruling communist party on July 1, Grayscale Bitcoin Trust (GBTC) discount has been shrinking, with the unlocks coming to an end next month as well.

A lot of cash is also now sitting on the sidelines, with stablecoin balances continuing to go up. Total stablecoin supply has gone past $100 bln, adding nearly $50 billion in just the last three months.

Unlike the last cycles, this time, traders and investors can simply make a shift to stablecoins, which could help the bear market be a shorter one. Fiskantes noted,

“Money don’t have a reason to leave if they can stay in stables -> compressed yields -> higher yield seekers increase risk appetite -> buy pressure for “productive assets.”

However, it is also possible institutions are going for yield directly instead of buying cryptos.

While crypto natives have been hedging while having considerable ammunition to buy the dip, Kruger noted that there’s also new money on its way.

He pointed to PWC’s May 2021 survey, which found that 21% of hedge funds are investing in crypto, over 85% of those funds intend to deploy more capital by EOY, and 26% of funds not yet investing in crypto are in late-stage planning to invest or looking to.

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Author: AnTy

Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban

Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban

Billionaire Mark Cuban is talking about yield farming now, which is a core feature of most decentralized finance (DeFi) projects.

He explains how instead of starting a business and then hoping to make enough revenue like in the traditional world, in the crypto/DeFi space, they sell tokens to raise capital, reward Liquidity Providers and validators, and build communities that replace layers of bureaucracy.

This makes it “a model for future technology businesses and possibly all businesses,” he said.

When it comes to the valuation of these projects, Cuban shares he looks for current revenues, growth rates, defensibility, the strength of the community, and if they can continue to grow as fast or faster than the crypto industry as a whole.

Crypto is also decentralized in its governance where no one owns majority control, not only because of the ethos of DAOs but also because it doesn’t involve the

“ABSOLUTE STUPIDITY of our regulators forcing some of the most impactful and innovative entrepreneurs of this generation to foreign countries to run their businesses.”

The Brilliance of Crypto/DeFi

In a blog post on Sunday on the Dallas Mavericks site, Cuban talked about the DeFi project Polygon (MATIC) in which he recently invested.

An Ethereum layer 2 solution, Polygon basically provides tools that enable transactions using their Ethereum/Solidity smart contracts to take place as quickly and inexpensively as possible while still being able to bring in more money than they spend noted the Shark Tank investor. MATIC 4.62% Polygon / USD MATICUSD $ 1.55
$0.074.62%
Volume 1.62 b Change $0.07 Open $1.55 Circulating 6.29 b Market Cap 9.75 b
10 h Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban 3 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers 6 d Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum
ETH 2.65% Ethereum / USD ETHUSD $ 2,581.97
$68.422.65%
Volume 27.78 b Change $68.42 Open $2,581.97 Circulating 116.29 m Market Cap 300.26 b
5 h Ethereum (ETH) Price Trading Analysis June 14; Market Outlook Is Slightly Bearish, Here’s Why 9 h ETH/BTC Continues its Descent as Fees Drops Under $3, ConsenSys Launching MetaMask Institutional 10 h Long-Term Chart Clearly Shows Bitcoin Still in an ‘Uptrend’ But Biggest Macro Headwinds Looms Over Price

However, blockchain-based businesses diverge quickly from traditional software, and instead of building their businesses exclusively on a cloud computing platform, their businesses are decentralized.

Cuban finds it “brilliant” that here third parties like validators or miners put up their own capital to provide resources to support the network platform in exchange for rewards in the token of that network, which are created at “a near zero cost,” unlike centralized businesses in the traditional world where they would have had to raise millions and more.

“Where a crypto based business competes with a traditional business, the crypto business may have a significant cost of capital and cost of operations advantage. There are a lot of financial institutions that should be concerned.”

DeFi businesses like Polygon build their transaction volumes and fees by having enough widely and heavily used applications. And one-way projects like Polygon try to create a network effect is via DeFi based businesses.

Regulators Need to be Supportive

Here, Cuban talks about decentralized exchanges (DEX) whose “brilliant” part is liquidity providers (LPs) that put up the capital.

He has been actually testing out Polygon’s DEX QuickSwap, where he is a small LP where he is earning a percentage of the transaction volume for a particular pool. Cuban also provides liquidity on Bancor Network, where he gets rewards in the native BNT token. QUICK -4.01% QuickSwap / USD QUICKUSD $ 486.06
-$19.49-4.01%
Volume 5.29 m Change -$19.49 Open $486.06 Circulating 159.75 K Market Cap 77.65 m
BNT 2.70% Bancor / USD BNTUSD $ 4.06
$0.112.70%
Volume 61.97 m Change $0.11 Open $4.06 Circulating 210.11 m Market Cap 853.86 m
10 h Financial Institutions ‘Should be Concerned’ of Competition from Crypto/DeFi Businesses: Mark Cuban 3 w Cryptocurrency Exchange ShapeShift Reveals Gas Fee Mitigation Functionality With FOX Token Rewards 3 w DEX’s Record A New ATH in Volume; Decentralized Exchanges Hit First $100 Billion in May

“Have enough LPs and the exchange is far more capital efficient than a similar traditional exchange business and I get to make some money.”

Cuban also covered AAVE, which “looks like a bank” but is nowhere even close to it; rather, he described it as

“a completely automated, permissionless platform where there are no bankers, no buildings, no toasters, no vaults, no cash, no holding your money, no forms to fill out, no credit ratings involved.”

While all of these features make crypto the future, not every crypto blockchain or DeFi project will work. Not to mention, “crypto is brutally competitive,” still Cuban says he will choose crypto over traditional businesses.

But Cuban has issues with the regulators with “politicians shitting on the innovations crypto is fostering,” unlike the early days of the internet when innovation and entrepreneurs were supported.

“Hopefully this changes quickly or we will lose the next great growth engine that this country needs.”

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Author: AnTy