Love it or Hate it, UNI Token Stands to Benefit from Uniswap’s Evolution

After releasing the UNI token as part of Uniswap V3, the first update for Uniswap V3 has been made on Github. It might say “trigger a new major release,” but for now, it just seems to be a tease with an IPFS deployment release.

Amidst the growing hype around Uniswap V3, such teases only push the market sentiments towards excitement, which in the DeFi world doesn’t take much to turn into euphoria.

For now, the UNI token is trading at $5.17, still in the green by 6.14%, slowly uptrending towards its ATH of over $8.

Today, with Ethereum Layer 2 solution Ethereum Optimism entering the first phase of its testament launch, Uniswap has announced itself as the early adopter, along with Synthetix and Chainlink.

Additionally, Mask Network rolled out a widget that lets users trade tokens on the biggest decentralized exchange (DEX) by volume, through its Twitter extension. The aim is to make it easier for Web 2 users to migrate to Web 3 apps.

The Question of Decentralization

The top DeFi project, with nearly $2 billion in deposits, is gaining a lot of attention these days thanks to its governance token, which was airdropped to its early adopters.

But not all of its is good; as we reported, there have been questions on the regulatory nature of the UNI token, which is also allocated to team members, advisors, and investors — Uniswap raised $11 million in a Series A round led by Andreessen Horowitz along with USV, Paradigm, Version One, Variant, Parafi Capital, SV Angel, and A.Capital.

At the time, it has been said the resources will be used to build Uniswap V3, which will “dramatically increase the flexibility and capital efficiency of the protocol.”

Besides the legal nature, the latest report from Glassnode also took a stab at the decentralized nature of the token launch, which raised a few questions.

“With the launch of its UNI token, Uniswap has branded itself as “decentralized,” but it still has a long way to go to reach this point. By giving itself a skeleton key to the protocol, Uniswap has (at least in the near term) sacrificed decentralization for the sake of control,” noted Glassnode.

But the crypto data provider also noted that the decision was “almost certainly” made with the protocol’s best interests at heart. Moreover, the control will gradually transition to the community.

“Despite the team’s lack of transparency and somewhat deceptive marketing, the UNI token remains a strong and likely extremely valuable asset,” combined with Uniswap’s impressive growth, V3 deployment in the pipeline, and activation of fee switch that will enable UNI holders to earn a portion of trading fees.

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Author: AnTy

Mnuchin Tells Congress Tougher Laws Will Be Introduced On Cryptocurrency Payments Soon

  • US Financial Crimes Enforcement Network (FinCEN) is on track to releasing new requirements for the dynamic cryptocurrency space, Steve Mnuchin assured Congress.
  • Authorities need to follow funds to ensure they don’t end up for Money Laundering purposes

During a recent Senate Finance Committee hearing, Steve Mnuchin the U.S. Treasury Secretary called on the FinCEN, a U.S financial regulatory authority, to put in place new cryptocurrencies regulations and guidelines in a bid to reduce the money laundering, illicit trades and activities that cryptocurrencies purportedly enhance.

Mnuchin was in Congress answering Senator Maggie Hassan (D-N.H.), on how the budget increases Treasury plans to bolster monitoring and prosecution of terrorists and criminal rings that funnel funds using crypto. He didn’t give much details but he stated that they had zeroed in on cryptocurrencies, a topic they had given much thought after lengthy discussions with other agencies and watchdogs.

They would want technology to progress with caution by ensuring that digital assets aren’t simply being stashed for criminal enterprises. This would be made possible only if the authorities would be able to follow a trail ensuring that the funds weren’t for money laundering purposes.

“We want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts.”

In a previous White House briefing Mnuchin has argued that the cryptocurrencies in place have been breached by criminal fronts to facilitate illegal dealings such as ransomware, extortion and even in extreme cases Human and Narco trafficking. He added that the regulators wouldn’t stand by as crypto firms facilitate such with mentions of BTC and Libra.

“To be clear: FinCEN will hold any entity that transacts in Bitcoin, Libra, or any other cryptocurrency to its highest standards.”

FinCEN Tough Stance

FinCEN’s top brass has constantly reiterated their position on Crypto regulations. Previously Kenneth Blanco, director FinCEN has offered stern warning to crypto firms and start-ups that don’t follow BSA and AML regulations of dire consequences. The Securities and Exchange Commission(SEC), Commodity Futures Trading Commission (CTFC) and FinCEN recently released a joint press statement where they reminded actors in the crypto space to follow BSA and AML regulations set aside by regulatory authorities.

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Author: Lujan Odera

This Could Lead to a Bitcoin (BTC) Price War

China started the decline in BTC price and miners releasing additional supply into the market further put pressure

S9-Antminer rigs no longer profitable, so the old machines need to get a shakeout. Miners are easy to regulate and provides tax revenue benefit unlike crypto exchanges that helped fuel speculation and capital flight in China

What is behind the 15% drop in Bitcoin price?

According to several commentators, it is China. CNBC’s Brian Kelley claimed China cracking down on crypto trading is what got this bloodbath started and then some miners getting capitulated did the job further.

Economists and trader Alex Kruger also tweeted.

However, analyst Mati Greenspan believes we are just looking for a “scapegoat.” This is because even though it has been promoting blockchain technology, China hasn’t reversed its stance on crypto trading.

PBoC’s latest move against crypto trading has people “downright scared”. This can be seen in the Crypto Fear and Greed Index that is signaling “extreme greed” for the past few days as BTC price today fell to $6,515 level.

Miners Releasing Additional Supply into the Market

Greenspan in his newsletter on Monday said China news is only half the story. He pointed out that much of the crypto community on social media are long term BTC hodlers who “won’t necessarily be knocked off their positions by FUD.”

The other half of the story is the miners releasing additional supply of their BTC stash, stored during the bull run in the market. Just this morning, Dovey Wan, founding partner of Primitive Crypto in an interview with BlockTV shared that 50% of the current hash rate is contributed by S9-Antminer rigs and they are no longer profitable.

This year, the hash rate of the Bitcoin network has also increased significantly, making an all-time high in late October. This “unprecedented growth” Greenspan says is for the most part because of advances in ASIC technology. As new rigs come online, the hash rate has grown, Greenspan continued,

“what we’ve yet to see, or may be seeing at this moment, is a shakeout of the old machines. Let’s just hope it doesn’t lead to a price war,”

Bitcoin mining profitability calculator, Source: CryptoCompare

Bitcoin Mining Works in Regulators’ Favor

When it comes to mining, China dominates with 70% of global bitcoin mining operations. And in late October, in a surprising move, China’s economic planning agency removed crypto mining from its list of activities set for being banned or eliminated.

This decision reportedly left many miners confused about the central government’s stance on cryptocurrency. However, it doesn’t mean there would be “a wild growth of mining farms,” said Wang Hongyi, who manages mining machines in the provinces of Sichuan, Shaanxi, Xinjiang, and Inner Mongolia. Miners he said think:

“very far ahead in the future and [believe] this type of business will come under regulation.”

They are actually expecting the electricity fees to rise because

“once the government regulates it, they will want the fee to cover construction and fire services, etc.”

But while it will increase the cost of operation, it will make it easier for miners to work with governments, Wang said.

Taking a look from the regulators’ side, cryptocurrency exchanges have been bad for them because they helped fuel speculation and capital flight whereas mining can provide tax revenue benefits, Martin Chorzempa, a research fellow from Peterson Institute for International Economics shared his views with the South China Morning Post. He said,

“My sense was always that they [miners] are easier to regulate because they run on physical hardware in China and you know who won each block and how much that is worth because that is all public information.”

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Author: Carl T