OpenBazaar Saved, For Now, Sizable Donation Still Needed for Next Year

Decentralized marketplace OpenBazaar was saved over the weekend from becoming a ClosedBazaar when an anonymous donor agreed to “cover the costs to run OpenBazaar infrastructure through at least the end of the year.”

But 2021 will come soon enough, so the platform wants people to donate while it works to “find ways to lower costs and decentralize more of the infrastructure.”

It first announced its shutdown on Friday unless reportedly a sizable donation of $100k is made to the platform that provides seed nodes, API wallet, and exchange rate API. The marketplace has been reportedly seeing a lack of adoption and user growth.

Some crypto community members took a jab at the employees of the project for attacking bitcoin and supporting SegWit2X – they were one of the signatories of the 2017 New York Agreement.

Call for Help

OpenBazaar launched in 2014 at a hackathon in Toronto as “Dark Market,” it allows people to buy and sell goods online in a peer-to-peer network, without a single entity to oversee or control the process.

Its app Haven will also be removed from the iOS App Store, and Google Play Store on October 1st as such, users are recommended to immediately remove funds from their wallet.

“We wanted to bring the full power of decentralized marketplaces to a global audience,” but failed to achieve the level of user growth and adoption that is required to sustain their business.

Now, to maintain support costs and execute the next phase of the protocol that they “believe can unlock explosive user adoption,” community support, aka funds are needed.

At the time of writing, OpenBazaar has received less than $15k in Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Zcash combined.

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Author: AnTy

Indian Government Looks to Ban Cryptocurrency Trading With New Law

India is not new when it comes to harsh and unfriendly cryptocurrency laws. Now, Bloomberg reports that the country is set to introduce a new law which will ban cryptocurrency trading within its borders.

Citing anonymous sources, the report states that India’s federal cabinet is set to discuss the bill prior to being sent to the parliament.

The report states that the Indian government will continue encouraging and supporting the growth of blockchain technology but will discourage crypto trading.

In 2018, Indian central bank instituted a ban on all crypto transactions following numerous cases of frauds prior to the sudden decision to ban about 80% of the country’s currency by Prime Minister Narendra Modi. However, the decision was rescinded in March this year after a successful filing of a suit in the Supreme Court by various crypto-based firms operating in the country.

The lifting of the ban saw almost a 450% increase in crypto trading in just two months from March. Paxful, a Bitcoin marketplace, registered a staggering 883% growth from January to May this year representing a growth from $2.2 million to about $22.1 million in revenues. Similarly, India’s largest crypto exchange WazirX registered a growth of 400% and 270% in March and April respectively.

The renewed effort to ban crypto trading comes at a time when the Indian Parliament has reopened following a prolonged break due to COVID-19 pandemic. The bill is likely to be introduced to parliament in this monsoon session which kicked off yesterday and is set to affect over 1.7 million Indians who actively trade in digital assets as well as institutions coming up with platforms to ease crypto trading.

Today’s report appears to be in tandem with June’s news where the nation’s finance ministry was reportedly urging for inter-ministerial consultations on how to ban crypto.

In the recent past, India’s federal government has been exploring possible ways of using blockchain technology to enhance service delivery in different sectors like management of land records, enhancement of pharmaceutical drugs supply chains, management of educational certificates, among others but remains adamant against crypto trading.

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Author: Joseph Kibe

SushiSwap Creator Makes a U-Turn; Returns $14 Million Worth of Ether

In the latest turn of events, just when you think the drama is coming to an end, comes a tweet from Chef Nomi.

It was on the last weekend that the anonymous creator of DEX SushiSwap cashed out his share of the development fund; now, just before this weekend, Chef Nomi apologized to the crypto community for their greed.

The creator also returned all of their $14 million worth of Ether to the treasury and “will let the community decide how much I deserve as the original creator of SushiSwap.”

Now, Adam Cochran, a co-signer of the multi-sig, is proposing to use some of these returned funds to re-buy SUSHI token, which is trading at $2.33.

Currently, the SushiSwap community is working on bringing the policy changes they have voted for to the protocol, including reducing its token reward schedule and introducing fee staking and a lock-up period for newly minted SUSHI.

The Apologies Round

This week, the control of the Uniswap clone was handed over to FTX CEO Sam Bankman-Fried, and the subsequent successful migration of SushiSwap happened. Already it is recording $200 million in daily volume and $1.54 billion of liquidity. The community also voted for ten people as the multi-sig signers for the treasury.

Chef Nomi apologized to all the people involved in the project and “for bringing a bad reputation to the DeFi movement.” At the time of selling his SUSHI tokens, the pseudo-anonymous creator said they deserved the funds for doing all the work.

Synthetix founder is in favor of “powerful incentives” to “attract all the amazing founders languishing in Fintech building shitty TradFi overlays” in crypto, much like Chef Nomi.

But yEarn founder Andre Cronje argued that incentives should be aligned and “earning a casual $1.5m for < 2 weeks worth of work, off of cloning someone else’s work, hardly seems aligned.”

The creator also directed their apologies towards Uniswap creator Hayden Adams, of which it is a copycat.

“I hope that SushiSwap continues to evolve. Don’t let my mistake deter it from being a 100% community-run AMM. The success of SushiSwap will set a precedent for many more community-run projects,” said Chef Nomi. “It has a lot of potential, don’t let my action alone fuck it up.”

Chaos has a way of sorting itself

While those who lost their money during the SUSHI’s 80% price dump following Chef Nomi’s “exit scam” berated him still in the comments section of Twitter, some speculated this move was because he was doxxed.

Others complimented the creator for owning up to their mistakes and correcting them. Cronje said,

“Less apology, more coding. Sushiswap needs you. Get back to work and build something that leaves a legacy. You chose Sushiswap over yourself, now just keep building.”

Amidst this, popular trader Loomdart shared his two bits on the Sushi saga, saying the project is not a conspiracy because “$14m is pennies when you attribute the stress/fear that comes with “doing” what ChefNomi did.” He said,

“Crypto is chaos. chaos just has a way of managing to sort itself out when peoples incentives align.”

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Author: AnTy

Band Protocol Says its CTO Only Reviewed SushiSwap’s Code for ‘Safe’ Deployment

Over the weekend, Uniswap clone SushiSwap became the center of attention when its anonymous creator Chef Nomi converted his SUSHI tokens for $13 million worth of Ether.

Unlike Uniswap, SushiSwap has its own token SUSHI through which people can earn a portion of the automated money market’s (AMM) revenue by providing liquidity.

Just a week and a half old project that still has $1.26 billion in total value locked (TVL) got a new masterchef on Sunday, FTX CEO Sam Banman-Fried.

Besides all this, there have also been rumors that Chef Nomi is actually the CTO of another DeFi project, Band Protocol.

The 65th largest cryptocurrency by market cap for nearly $175 million is down 11% today. Overall, BAND has lost 50% of its value since last week’s high of $16.8.

At the time of writing, the BAND token of the popular oracle provider has been trading at $8.45.

The community, however, is expecting more losses on the back of these rumors. As such, the team of Band Protocol issued a statement where it said, “Band Protocol CTO and Co-Founder, Sorawit Suriyakarn, is NOT NomiChef, the creator of Sushi Swap.”

They argued that the Hearthstone-related code that is being used to make Suriyakarn’s connection to SushiSwap is not the only one he contributed to; Suriyakarn also starred in other 90+ repositories.

As for sharing the same IP hosting service, it has been “used by some of the largest tech companies.” Also, since then, they changed the hosting service to Netlify to avoid confusion.

The team clarified that they are not involved in the operation of SushiSwap in any capacity.

However, Suriyakarn did review the initial code deployment of SushiSwap, which he often does for other projects as well, to make sure the DEX was “safe for public use.” The statement reads,

“We value our partnerships and want to assure our investors, partners, and community that our initial interest in Sushiswap was straight forward — if it became successful, Band token, as a ‘farmable’ asset, would gain more visibility and therefore would boost its usage.”

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Author: AnTy

Bitcoin for Beginners: Explaining Crypto and DeFi Coins During the Next Bull Run

Crypto experts believe the next bull run is coming. When it comes, you’ll need to once again explain crypto to your friends and family.

How do you explain the power of blockchain to someone? What’s a good elevator pitch to get someone to invest in bitcoin? How do you explain the power of crypto in a few sentences?

Preston Pysh (@PrestonPysh) just answered these questions on Twitter. Preston published several paragraphs on Twitter explaining how to explain the potential of crypto to friends, family, and anyone else you talk to – when they inevitably ask during the next bull run.

Before bitcoin hits $20,000 by the end of 2020, we’re here to help explain Bitcoin to your friends and family.

What Problems Does Bitcoin Attempt to Solve?

For technology to change the world, it needs to solve a problem. The iPod solved the problem of transporting 1,000 songs in your pocket. The internet solved the problem of global communication. The wheel solved the problem of moving big things around.

So what problems does bitcoin solve?

Bitcoin was created as the most secure, stable digital currency. It’s designed as a global, digital peg on fiat currency.

Some had seen fiat currency as a problem since the 1930s when the United States government seized gold from U.S. citizens and made it illegal to hoard gold. Others pointed to 1971 when global economies agreed to remove their fiat currencies from the gold standard, which is why today’s currencies are no longer pegged to…anything.

The lack of a fiat currency peg has led to…issues. Governments around the world are overusing inflationary monetary policies with no monetary peg. The $100 USD you owned 50 years ago only buys a fraction of the amount of stuff it did back then – due to inflation.

Bitcoin is deflationary. It has a fixed supply. There will never be more than 21 million bitcoins in existence. Out of the 17 million bitcoins in circulation, a significant portion (most experts guess around 4 million, but it could be higher) have already been permanently lost. If the demand for bitcoin continues to rise, and supply remains fixed, then bitcoin’s price can only go one direction: up.

But Bitcoin’s Price Is So Volatile!

“Why would I buy a bitcoin for $10,000 today when it could be worth $100 tomorrow? The price changes all the time, and I can’t trust a significant amount of money to crypto!”

It’s true that bitcoin’s price is volatile. Ten years ago, you could buy a bitcoin for a few pennies. Today, bitcoin is priced around $12,000. A few years ago, one bitcoin was worth $20,000.

Over time, bitcoin’s volatility should flatten. Bitcoin is a new asset, and investors are still trying to price that asset. Markets for uncertain assets fluctuate, and bitcoin is no different. The market is trying to find the actual value of bitcoin.

Of course, grizzled bitcoin fans will tell you that the price of bitcoin only fluctuates when comparing it to USD: 1 BTC has always been equal to 1 BTC. It’s only the BTC/USD (and BTC/any other fiat currency) ratio that fluctuates.

How Does Bitcoin Have a Fixed Supply? Can’t Someone Raise the Supply?

Bitcoin’s supply is fixed. There can only ever be 21 million bitcoins in existence. Nobody can copy their bitcoin to duplicate it. That’s one of the key technological innovations of bitcoin: unlike other digital files, one bitcoin cannot be spent twice or copied in two places. Bitcoin’s blockchain innovatively solved the “double-spend” problem.

There are 21 million bitcoins, but you can still break down bitcoin into smaller units. Each bitcoin can be broken down to 8 decimal places, which means there are 2,100,000,000,000,000 total bitcoin units (people call these ‘Satoshis’). There will never be more than this supply because of blockchain.

There Are Thousands of Cryptocurrencies – Why Would I Buy Bitcoin?

Bitcoin isn’t the fastest cryptocurrency. It’s not even the most secure or private cryptocurrency. In fact, from a technical standpoint, bitcoin has few advantages over many of its competitors. However, bitcoin has one significant advantage: first-mover advantage. Bitcoin was the world’s first cryptocurrency, and it’s the coin most people think about when they hear “crypto.”

Preston Pysh recommends thinking of it like another open-source project everyone knows about – Wikipedia:

  • Wikipedia is an open-source website that anyone can legally copy and duplicate.
  • Anyone could copy the open-source code for Wikipedia, change the name, and try to adopt new users and overtake Wikipedia as the world’s best repository of knowledge.
  • This doesn’t happen because of “network effects,” explains Preston: bitcoin has the most substantial protocol network effect for pegged money.
  • Yes, bitcoin has its issues – but despite the fact, anyone can copy bitcoin, people don’t. And bitcoin has remained the world’s largest and most valuable cryptocurrency since launching in January 2009.

Won’t Governments Just Ban Bitcoin?

It’s true that governments have banned bitcoin in the past. The Chinese government banned crypto exchanges in September 2017, for example.

During the early years of bitcoin, it was a credible threat that governments could ban it. Today, it’s less of a risk. Countries around the world have already passed laws that legitimize bitcoin and protect bitcoin hodlers. Germany, Australia, South Korea, and other countries have laws protecting bitcoin ownership – just like they have laws protecting any non-digital property for citizens.

The government has the power to ban virtually anything – from free speech to guns to methods of payment. As long as the majority of people want bitcoin, and as long as you live in an open democracy, you should have nothing to worry about.

How Much Will One Bitcoin Be Worth Ten Years from Now?

Inevitably, bitcoin conversations turn to price – and how much money you can make by investing in bitcoin.

Of course, nobody can predict where bitcoin will go next. It could sharply fall before it rises again. It could skyrocket to $20,000 by the end of the year – and $100,000 next year.

People have all types of bitcoin predictions – they’re all over the board with predictions.

One thing to consider is that fiat currencies like the US Dollar may lose their value while bitcoin rises in value. With central banks around the world implementing inflationary policies and pumping new money into the economy, it’s possible fiat currencies will slowly become a thing of the past – while digital currencies become more popular for their fixed supply.

This is all conjecture – but this is the type of speculation that could get friends, family, and others interested in cryptocurrency.

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Author: Andrew Tuts

SushiSwap Creator Pulls a Charlie Lee, Sells 2.55M SUSHI Tokens Because He ‘Deserves’ The ETH

SushiSwap got Sushi dumped.

Today, the token was trading at $4.91 when it started slumping and didn’t stop until it lost about 60% of its value.

At the time of writing, SUSHI was trading at $2.27, as per CoinGecko.

The losses came after Chef Nomi, anonymous creator of SushiSwap, the clone of DEX Uniswap, sold part of the SUSHI tokens allocated for the development of the ecosystem.

Approximately 2.56 million SUSHI, for 17,970 Ether (worth over $6 million), has been sold by him within ten days of the launch of the project. The new dev shares are now under the SushiSwap multisig contract for which the signers are being chosen.

The reason for this, “I stop caring about price and I will focus on the technicality of the migration,” shared Chef Nomi on Twitter while clarifying about his recent move for which he has received “blaming and FUDing” when he is “taking IL for you.”

The anonymous creator says he did not exit scam as he will “continue to participate in the discussion. I will help with the technical part.”

Does this remind you of someone, maybe Litecoin creator Charlie Lee? This is because Chef Nomi did pull a Charlie Lee. “I am still here…@SatoshiLite did that and Litecoin had no problem surviving,” he said.

Lee is infamous for selling all his LTC at the top of the market. And if the community thinks he didn’t deserve the ETH, you better think again and think hard because

“I think my contributions justified that. I wrote the migration code. I did all the audits. I coordinated the largest LP pools ever. I created a large community. I sprung up 100s of LP scam projects. All in 1 week.”

That’s right, he created the idea and the community when the price wasn’t under pressure. And given that it’s an open experiment if you don’t believe in the idea or community, “you are free to leave,” there are “no strings attached.”

“All I can say is if this experimentation goes on to success, you guys know the upside. But if people don’t believe in the project, it will fail and we return everything back to the original creator @UniswapProtocol. I am happy with either result,” concludes Chef Nomi.

The project has been going strong, it even surpassed lending platform Aave in terms of TVL, which has now dropped from $1.6 million to $1.1 million.

The community is divided on whether it is a good move or bad. “Sushi exit scam. Incredible. And trying to pretend to be nice. When dealing with magic internet money, the good projects have strong founders or strong early adopters. May sell some at the top, never cash out,” said trader and economist Alex Kruger.

Some even called out exchanges for listing these tokens while others argue that Binance-like exchanges actually give the opportunity to long or short.

Amidst this DeFi mania, from FTX, Binance, Gate.io, to Coinbase, Huobi, and OKEx, everyone has been listing the latest hot DeFi token within days of their launch.

“I don’t know what is worse…An ICO company taking 20,000 Ether and not making anything for 3 years and watching their token go down -99%…Or SUSHI founder selling all his holdings for 20,000 Ether to crash the price -99% only two weeks after it was created,” said trader Jacon Canfield.

Also Read: FTX CEO Proposes Deploying SushiSwap to Solana, Votes in Favor

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Author: AnTy

Crypto Exchanges Contribute to Curve Finance’s Front-Run & Premined CRV Token Launch Insanity

  • Things continue to get more and more bizarre in the DeFi world.
  • The crazy is to be expected when “you give people a permissionless uncensorable platform.”
  • This time, the center of attention was one of the most popular DEX Curve Finance and its highly anticipated token launch.

Within hours of the surprising launch of the CRV token, the leading spot exchange Binance announced the listing of the token with deposits now opened but said due to the token’s limited circulating supply, trading won’t start until a “sufficient enough” levels of CRV deposits are reached.

The trading for the pairs CRV/BNB, CRV/BTC, CRV/BUSD, CRV/USDT, will be opened on Saturday, August 15th, at 4:00 AM (UTC).

As expected, the listings pushed the price of CRV to as high as $54, as per CoinGecko, before going back to $14.12. On Uniswap, at one point, 1 CRV got about 124 ETH. As a result, its market cap “briefly surpassed” even that of Bitcoin on a fully diluted basis.

As such, Binance CEO Changpeng Zhao wants people to “use your judgment. Be responsible for your actions.”

But the community isn’t thrilled with Binance’s decision. One trader criticized CZ for “contributing to this “insanity’” saying, “you listed a CRV without consulting with the team after it had already been premined” and that Binance’s FOMO led other crypto exchanges, OKEx and Poloniex, to FOMO list CRV as well.

Does it get any more decentralized than this?

The launch of the CRV token itself has been nothing short of peculiar. Instead of Curve Finance, the token was launched by an anonymous developer.

An exchange liquidity pool on Ethereum, Curve, is designed for stablecoin trading. A popular DEX in the DeFi space, Curve accounts for more than 20% of all DEX volume for the past two months.

Just launched CRV is its native governance token, which is also used as a reward for liquidity providers. A portion of the trading fees collected on the platform will be used for burning CRV tokens.

The token came in the market at 6.25 PM EST yesterday, sooner than its scheduled launch after an anonymous user deployed the open-source CRV token and CurveDAO contracts on the Ethereum mainnet.

Initially seen as a scam, the Curve team later confirmed that the contract is authentic, and they have adopted it after it gained traction.

Users subsequently found that wallets have been staking Curve assets and earning CRV assets before the official launch, which led to unfair “premine” allegations.

About 20,000 CRV tokens were also awarded to early stakers, as is the design of this protocol, and one or more of the wallets presumably belong to the developer, dubbed “Chad” who prematurely launched the token.

Interestingly it only cost 19.9 ETH, worth about $8,400 to deploy the contract.

Before the community got heated up about the “pre-mining” of tokens, Curve’s project lead Charlie commented, “I think it’s kinda cool personally” on the Discord channel.

As for the CRV token distribution, out of the initial 1.3 billion tokens, 5% of tokens with a one year vesting period will provide liquidity to the platform along with another 57% of all CRV tokens that will also be distributed to LPs from the 3.03 billion total supply. Employees and shareholders will get 3% and 30%, respectively, with a vesting period between two to four years while the remaining 5% will go to community reserve.

But this isn’t deterring the DeFi users given the new record $5.22 billion of total value got locked in the sector today

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Author: AnTy

Something New & Better will Replace Bitcoin In Coming Decades: Binance CEO CZ

Bitcoin dominance has dropped 8.5% since May 7 when Paul Tudor Jones announced that his company is investing in BTC.

Since early 2016 when bitcoin’s dominance was at 98.98%, it has fallen more than 38%. And according to Binance co-founder and CEO Changpeng Zhao, it will continue to fall.

“I think bitcoin’s dominance over time will decrease,” though it may increase in the short term, said CZ in a recent interview.

This is because although there’s a lot of innovations people can bring back on bitcoin such as the second layer of solutions when technology is out already and is adopted for 10 years, there’s relatively more limited scope for an update, he said.

He explained how we saw it with almost every technology such as software and programming languages. Whether it’s the internet, browsers, search engines, or social networks, no one is using the original ones.

Also, “nothing lasts forever,” as the companies like IBM and Microsoft, that were once strong, are no longer the biggest and most valuable firms. Although they are still big.

“If you look at 10, 20, 50 years later I think it’s totally conceivable that something new will replace bitcoin,” said CZ.

He doesn’t think we will lose bitcoin as it has already passed the “limited test” or move back into fiat but “something better than bitcoin” will come along and “people always invest in things that are new and better.”

Well, the crypto market has found its new shiny toy in the form of DeFi (decentralized finance) which CZ is a “very strong proponent,” along with staking. These latest things he believes will “increase adoption of crypto” but at the same time warns that this new stuff will have “very inherent high risk.”

Also, according to him, an “overwhelmingly large proportion” of the DeFi projects will fail and only a handful will survive.

During his interview, CZ also touched upon the bitcoin Segwit addresses implementation on the exchange which Binance “definitely” wants to add Segwit.

They are working on it, but segwit support requires a lot of customizations — “pretty much have to rewrite the wallet ourselves” as such, it will take time.

“I don’t know exactly when but we’ll get there sooner or later but it won’t be too soon,” he said.

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Author: AnTy

Analyst Reveals Four Charts That Show Anything is Possible in 2020

“The market does what it wants, when it wants to do it,” wrote Charlie Bilello, founder, and CEO of Compound Capital Advisors.

Bilello recently shared how in 2020, we have seen a “lifetime supply of material,” the things that the market hasn’t been expecting.

It has been the “real-time personification of collective human psychology, with fear and greed on full display,” that provided us with bizarre results. The crypto market is not new to such kind of happenings, but sometimes, even the crypto space manages to surprise.

We saw retail investors paying more than 735% premium to gain exposure to the second-largest cryptocurrency by market cap. Although the premium on Grayscale Ethereum Trust has collapsed since then, it remains particularly high with ETHE at over $70 (each share represents 0.09377463 ETH) while Ether is trading at $244.

However, things were even more bizarre in the mainstream market. If you thought “stocks can’t go up during recession,” you have been proved wrong when stocks rallied hard in Q2 of 2020.

After crashing in March, stocks jumped, Nasdaq climbed to make a new all-time high. The tech stocks were mainly responsible for this as while Apple and Amazon saw their valuation rising more than $10.5 trillion, Tesla has been up 230% YTD.

Even stocks of those companies that went bankrupt saw substantial gains. And Nicola Corp. garnered a market cap of $26 billion with zero sales or earnings.

Not only stocks rallied hard, the terms “oversold,” or ”at support” and “overbought” or “at resistance” lost their meaning.

These stocks were driven by all the free money pumped by the central banks. If you thought the Fed was “out of bullets” and won’t do anymore, the central bank proved wrong through unprecedented measures, which now has many experts warning about the inflation.

The Fed’s balance sheet entered 2020 at around $4 trillion, only to surpass $7 trillion in late May.

But 2020 didn’t only see the stocks skyrocketing but also plunging into nothingness and then continuing to go lower.

Can asset prices go below $0, this year showed us that yes they could. In April, the price of crude oil went negative for the first time. At that time, May futures for US crude oil WTI fell to minus $37.63 a barrel. (can Bitcoin fall to zero?)

The oil market saw its worst crisis in a generation where traders were willing to pay to get somebody to take crude off their hands after the lockdown to stop the spread of coronavirus pandemic wiped all the demand while the market was over-supplied.

Moreover, this year the national debt continued to rise to new highs while the interest rates on some US Treasuries also plunged into negative territory.

There are still five and a half months left in 2020, and the government is planning to put more money into the system while inflation has started to be seen in goods prices, and the recession has been declared.

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Author: AnTy

Lending and Interest Income Could Be the Path to Boost Crypto Adoption

Bitcoin and cryptocurrencies, in general, have come a long way from the early days when they were regarded as an internet bubble waiting to burst.

However, even after a decade, one constant criticism is that digital assets haven’t found a niche, and cannot be spent as easily as it has been advertised for long.

The one feather that these digital assets can borrow from the traditional financial world is lending and borrowing, which is the backbone of the majority of the financial ecosystem and banks. This interest-based income, lending and borrowing have already gripped the digital asset world which is evident from a report from Credmark.

The Credmark report suggests that the crypto lending market has already peaked $8 billion in loan amount by the end of the fourth quarter of 2020.

At present, the market size has grown to $10 billion and expected to grow exponentially as the popularity rises overtime. Not only that the global peer-to-peer lending marketplace has also registered annual transaction volumes in upwards of $85 billion.

Lending and Credit Gaining Popularity in Crypto Verse

Genesis Capital, one of the leaders in the crypto credit market, registered its best quarterly performance in the first quarter of 2020, registering $2 billion in the new loan organizations. The firm doubled on its previous quarterly performance and also registered a 20% spike in active loans from the previous quarter.

Celsius Network, the retail-focused crypto lending platform, registered similar growth and currently boasts of 100,000 retail clients and 260 institutional clients spread across 160 countries. The firm has registered $8.2 billion in coin loans to institutional clients since its inception in 2018.

Crypto lending is mostly based on the underlying assets, which makes an easier process as debt is collateralized with the crypto asset. Apart from these asset-backed crypto lending, another form of a lending ecosystem has risen in popularity over the last year in the crypto space i.e decentralized finance (defi).

Defi is an Ethereum based ecosystem which offers decentralized credit system to users based on the collateralized asset.

Users can lock their Ether, Wrapped Bitcoin and other ERC-20 based tokens in smart contracts and withdraw a loan in non-asset backed stablecoin like Dai and USDC. The defi ecosystem has gained massive popularity in the past year, and the value of assets locked as collateral has already crossed the $1 billion mark.

Thus, looking at the popularity, demand and success of lending and borrowing ecosystems in the decentralized space, it could pave the path for mass adoption of crypto in the long-term.

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Author: James W