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Banks Should be Scared of DeFi Warns Mark Cuban

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Billionaire entrepreneur Mark Cuban has been extremely bullish on decentralized finance (DeFi) and crypto protocols with a stark warning to the banking sector.

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Referring to the rise of DeFi, the Dallas Mavericks owner and legendary investor stated that “there are a lot of financial institutions that should be concerned.”

The comments came in a lengthy post on his personal blog at the weekend extolling the virtues of decentralization and the “brilliance of yield farming.”

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Cuban wrote that “banks should be scared,” of these decentralized protocols that could become a real competitor to the traditional banking industry, as reported by CNBC.

Decentralization is fairer for everyone

Cuban highlighted the projects that he is personally invested in, namely Polygon and Aave. He compared the latter to a bank but with a number of clear advantages:

“Aave is 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.”

He also stated that centralized technology firms operate solely to generate profits, which is not the case for decentralized crypto companies. The capital is provided by the users, not the shareholders and owners:

“Rather than the owners of the business, investors and their creditors putting up capital for all the transactions to take place, liquidity providers (LPs) do it for them.”

He revealed that he provides liquidity himself for the QuickSwap exchange in DAI and TITAN tokens. QuickSwap is an Ethereum-based DEX powered by Polygon’s Layer 2 scalability infrastructure. Cuban also provides liquidity for Bancor.

U.S. banks and regulators vow DeFi crackdown

Central banks, along with politicians and old school investors that made their millions through centralized companies are very wary of change. Crypto and DeFi represent that change and the alarm bells are already ringing in regulatory circles in the U.S.

Banks are already scared it seems, and the financial regulators are calling to their cries for regulation or an outright ban on DeFi.

Earlier this month, CFTC Commissioner Dan Berkovitz called for a crackdown on what he deemed ‘illegal’ DeFi platforms. In a speech on June 8, he said “We should not permit DeFi to become an unregulated shadow financial market in direct competition with regulated markets.”

U.S. Democratic Senator Elizabeth Warren has also been ranting about the evils of decentralized digital assets labeling them as “bogus” and a “lousy investment” at a banking committee meeting earlier this month.

Meanwhile, DeFi continues to grow with as much as a quarter of all Ethereum now locked into decentralized smart contracts.

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Martin has been covering the latest developments on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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Source: https://beincrypto.com/banks-scared-defi-warns-mark-cuban/

Blockchain

S H O C K T O B E R

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After a predictably underwhelming September in the crypto markets, history was made in October as BTC hit new all-time highs. 

As foreshadowed in last month’s Crypto On-Chain Digest, End of Summer Sale, data indicates that a supply shock (driven by long-term holders) contributed to BTC’s rise to record levels.

In Kraken Intelligence’s latest Crypto On-Chain Digest, S H O C K T O B E R, the team further analyzes the impact of BTC’s supply shock, how whales and long-term holders are leading the charge and why on-chain metrics suggest that the bull run still has significant upside.

HODLer’s Paradise

BTC’s HODL Waves, an indicator that provides insight into holding and spending behaviors, paints a picture of a market that isn’t ready to sell yet. Long-term holders have failed to react to September’s weakness or October’s strength — and instead continue to accumulate.

Since late May, ‘young coins’ (those moved within six months) have been maturing as they’re increasingly being held for the long-term. The percentage of young coins has dropped by 11.8 points to lows that haven’t been seen since November 2018, when BTC was trading at ~$5,700.

Diamond-Handed Miners

It may come as a surprise that miners, too, appear to be holding for the long-term. 0-hop supply is a simple metric to determine mining pool behavior, as it tells us whether the validators of the Bitcoin network are holding the coins they’ve mined. It assumes that coins that have not moved (or ‘hopped’) at least once have not been sold or paid out to miners.

The 0-hop supply has risen by almost 50% since September, and the leading North American pools have publicly reported holdings of more than ₿20.4k ($1.3B). On the other hand, 1-hop supply (generally attributed to small miners who mine using a pool) shows that small miners took some profits. However, now that this trend appears to be reversing, this supply shock could be exacerbated as these players stop selling, too.

Bulls on Parade

A supply shock, spurred on by long-term holders, whales, miners and increased network demand put BTC in a strong position to trend higher. But we need to turn to quantitative indicators to get a better feel for its place in the current bull run. 

The SOPR (Spent Output Profit Ratio) attempts to give us an answer by approximating whether market participants are selling at a profit or loss. Given a recent bounce, and going off historic movements from September 2020, it would appear that strong support is established at the ~$42,000 level. It also confirms that the recent pullback was a healthy retracement, and not a full-blown reversal.

The MVRV (Market-Value-To-Realized-Value) Z-Score estimates whether BTC is in oversold or overbought territory. It currently sits below the halfway point between these two thresholds, suggesting that there’s still room for BTC to run.

Get the full story in Kraken Intelligence’s report, S H O C K T O B E R:

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Source: https://blog.kraken.com/post/11714/s-h-o-c-k-t-o-b-e-r/

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Blockchain

Shiba Inu: The Big Explosion, The Drop & The Future Impacts

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Shiba Inu, the mysterious meme coin, has gained serious attention this past weekend after a 45% surge. Created by anonymous dogecoin-ally Ryshoi Shiba, Shiba has slowly gained momentum since the beginning of the summer.

What’s Next For Shiba Inu?

With Robinhood approving more then 250,000 applications for Shiba Inu access, it will definitely serve as a point of potential for the token. Shiba gained strong upside momentum after it managed to get above the key resistance level at $0.000040 – during which it almost hit the $0.000041 mark, before dropping back down to 0.000038. This is the highest peak the coin has seen in its short, but graceful climb, until it’s continued surge over the past several days. For early holders, this is a great sign of the future for Shiba, as it close the market cap gap on rival dogecoin. According to CoinMarketCap, Dogecoin’s current market cap is $33.6 billion, while Shiba Inu’s market cap has now surpassed the $15 billion level. Doge, meanwhile, also saw some gains this past weekend with a mild jump.

Related Reading | Elon Musk Reveals How Much He Owns Of Dogecoin Rival, Shiba Inu

SHIB: Shiba Inu has currently hit a high and continues to be on a rapid tear. | SHIB-USD on TradingView.com

The aforementioned onboarding of potential Shiba Inu holders onto Robinhood will likely add new crypto consumers into the ecosystem. Robinhood aims to allow everyday people to invest monies big and small into Wall Street stocks, and now crypto. Rumors have been surfacing about the team and increased support across platforms and exchanges, all while Shiba Inu is already support across digital wallets offered by the likes of Coinbase and Voyager – both top dogs in mainstream crypto investment apps.

The Attention-Grabber

Shiba Inu even gained attention of Telsa CEO and Dogecoin godfather Elon Musk recently, when he tweeted a response about not owning any of the coin himself. People would say Musk is often a troll online when it comes to talking about certain topics and tokens, and how the value of these coins can fluctuate after his tweets. Others may suggest that the implications of his tweets are temporary when it comes to the long-term price movements of these tokens. 

Can Shiba Inu break out and have an end of the quarter rally like the bulls hope, or will it peak and stay steady as the year caps out? This token will be one to keep an eye out for if you are watching to see what will catch on next. With substantial media attention and spotlight, Shiba looks to take advantage and find a listing on Robinhood and other platforms. Rumors have been bubbling that updates regarding Robinhood’s status with Shiba Inu could come as early as the end of this week. 

Related Reading | Why Citi Is “Slowly” Building A Crypto Infrastructure, CEO Says

 

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Source: https://bitcoinist.com/shiba-inu-the-big-explosion-the-drop-the-future-impacts/?utm_source=rss&utm_medium=rss&utm_campaign=shiba-inu-the-big-explosion-the-drop-the-future-impacts

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Blockchain

Tether Partners with Notabene to Battle Crime and Money Laundering

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Tether, the company behind the largest stablecoin by market capitalization, USDT, has announced that it will be using Notabene to ensure compliance with anti-money laundering laws. The blockchain will be used to develop an end-to-end solution that will bring compliance with crypto Travel Rules.

Tether has announced that it will start testing the applications of Notabene to curb money laundering and criminal activities facilitated by cross-border transactions by VASP platforms.

Test Crypto Use Cases

The report also stated that Notabene would enable Tether to test the use cases of crypto in a collaborative but low-risk environment. Through Notabene, Tether will assess solutions provided by Notabene to understand how it can communicate client information to VASPs safely and securely.

The CCO of Tether, Leonardo Real, commented on this development saying,” As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them. Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels to create better services for customers globally.”

Virtual asset service providers have now been classified under the same category as regulated financial institutions. Therefore, these providers are required to comply with the “travel rule” that requires them to exchange customer information with each other for a specific timeframe.

Through the travel rule, countries and VASPs can curb the use of crypto assets for money laundering and terrorism financing. It will also ensure that clients on the platform can abide by the set sanctions.

Protect Clients through Transparency

Real further stated that Tether was proud to be the stablecoin leader in creating a positive impact and helping to protect clients. The report further noted that Tether had established a strong presence in the global crypto sector.

The CEO of Notabene, Pelle Braendgaard, also noted that the platform was eager to help Tether work with VASPs to bring compliance. This would bring a safe and regulated framework to the cryptocurrency space. Through Notabene’s solution, Tether will better manage counterparty risk and bring the best experience to its clients.

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Source: https://insidebitcoins.com/news/tether-partners-with-notabene-to-battle-crime-and-money-laundering

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