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DeFi Is Still Experimental and Chaotic, Says Blockchain Expert Bohdan Prylepa

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crypto killer apps DeFi

Bohdan Prylepa, CTO and co-founder of Prof-it Blockchain Ltd, stated in an interview that more work needs to be done to establish DeFi as a global phenomenon. For now, it is nothing more than an experimental terrain for retail investors to earn decent money by the side.

There is no doubt that the DeFi market has outdone itself in the last 12 months. However, the bone of contention is whether these achievements are compelling enough to establish DeFi as a viable alternative to the conventional financial order. While lending his voice to this conversation, Bohdan Prylepa, CTO and co-founder of Prof-it Blockchain Ltd and also COO of Bitcoin Ultimatum, a Bitcoin hard fork, argued that DeFi is not yet mature enough to play an anchoring role for the global financial system. According to the blockchain expert, there are still several areas that stakeholders need to improve. He stated:

“DeFi is still experimental. With crazy APRs and heists sending chills down investors, it may be years before this happens. Even so, DeFi is interesting but we shouldn’t get ahead of ourselves. It is still the Wild West, and more work—structural, legislation, and infrastructure, needs to be done before DeFi plays a crucial part in steadying the global economy.”

Qries

When asked if the over $14 billion locked in the market is indicative of its promising status, Prylepa explained that the buoyancy of the DeFi economy does not eliminate the fact that the landscape is still experimental. A majority of participants are retail investors who are not averse to making decent profits while experimenting with DeFi. Prylepa added:

“Look, even with $14 billion TVL—and more, established crypto funds like Grayscale provide institutional exposure to ETH, the base currency, and not DeFi governance tokens. The $14 billion is mostly from retail investments, who while experimenting are making decent money in the process. However, I’m not being dismissive. The rise of decentralized exchanges like Uniswap could take away some of the centralized exchange’s market share.”

Speaking of exchanges and market share, Prylepa concurred that although the rise of DEXes would shrink the dominance of centralized alternatives, the flexibility and user-friendliness of the latter still puts them ahead of decentralized token swapping protocols. The architecture of DEXes makes them more appealing to experienced traders and DeFi participants, which is why the trading volumes of Unsiwap has trailed the success of the DeFi market as a whole and even surpassed that of Coinbase Pro in September. However, for new investors and traders, centralized exchanges remain the ideal choice because Coinbase and the likes support fiat payment gateways, comply with regulations, and are easy to use. Although the exchange technology is also only in its infancy and will be repeatedly attacked and hacked, until a perfect and most fundamental safe solution is realized.

Bitcoin Ultimatum Creates Advanced and Programmable Version of Bitcoin

There have been many attempts by developers and cryptopreneurs to create improved versions of the Bitcoin network. The narrative that many of these offerings have identified as their propelling factor is the need for more scalable and innovative infrastructures. Like many of the past and current Bitcoin-inspired cryptocurrency, Bitcoin Ultimatum looks to enable high bandwidth solution, albeit with smart contract functionalities. Prylepa and his team hope to achieve this by forking the Bitcoin source code, implementing a hybrid consensus mechanism, and providing smart contracts services for a modern look:

“Together with my team, we noted that Bitcoin had a problem. A transparency problem is most important. It is its strength and weakness. There are monitors sponsored by corporates and governments to watch and track every transaction. This won’t end. It is just the beginning. We reckon that we could fork the Bitcoin code and launch a better high bandwidth network with smart contracting—to keep up with times, and with privacy features to keep financial transactions as meant, private.”

While comparing Bitcoin Ultimatum with the original Bitcoin network and other successful spinoffs, Prylepa stated that the project is adopting a combination of scalable consensus architecture rather than sticking with the Proof-of-Work mechanism. According to him, “LPoS mining in conjunction with Proof-of-Authority (PoA). Notably, the network shall provide for only 20 validators. 10 to be selected by the team, the other half by the community. The number of validators will be expanded to 50 from the community for decentralization. With this, the network will have a higher bandwidth, automatically resolve scalability challenges, and we hope smart contracting is what is needed in any modern blockchain.” UPoS algorithm will combine leasing, smart contracts, private transactions and other leading blockchain solutions. 

Image(s): Shutterstock.com

Source: https://nulltx.com/defi-is-still-experimental-and-chaotic-says-blockchain-expert-bohdan-prylepa/

Blockchain

CoinShares Launches a $75 Million Physically-Backed Ethereum (ETH) ETP

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A month after launching a Bitcoin ETP on Switzerland’s SIX Exchange, CoinShares has released a physically-backed exchange-traded product following the performance of the second-largest cryptocurrency – Ethereum. 

  • Describing itself as “Europe’s largest digital asset investment house,” CoinShares is a cryptocurrency-oriented manager with over $4 billion in AUM. The company, headquartered in London, announced the launch of its latest crypto product – a new physically-backed ETP tracking the performance of Ethereum. 
  • Called CoinShares Physical Ethereum, the product is already listed on the regulated SIX Swiss Exchange under the ticker ETHE and has a base fee of 1.25%. According to the company, the cost is “lower than the industry standard” of 2%. 
  • The statement explained that each unit of ETHE is backed with 0.03 Ether tokens at launch. Thus, it provides investors with “passive exposure to Ethereum’s native asset with the convenience of an ETP.” 
  • “In the early days of 2021, we have seen a continuation of last year’s demand in digital assets from institutions. We have also seen an increase in investor interest in Ethereum. We are encouraged by our client’s trust in our team to guide them in their journey through the digital asset ecosystem, and for many, Ethereum is an important part of that journey.” – commented Chief Revenue Officer Frank Spiteri. 

  • It’s worth noting that this is the company’s second similar product tracking the performance of a crypto asset launched this year. Somewhat expectedly, the first one, released in mid-January, follows the largest digital asset by market cap – Bitcoin. 
  • CryptoPotato reported upon its launch that it started with AUM of $200 million, and each unit is backed by 0.001 BTC. 
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Source: https://cryptopotato.com/coinshares-launches-a-75-million-physically-backed-ethereum-etp/

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Blockchain

Chainlink Price Analysis: 27 February

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

Bearish sentiment has been the norm over the past few days, with the same being the case at press time for altcoins such as Chainlink. LINK has seen its price hike by around 164 percent since the start of the year. Over the last 7 days, however, with sellers dominating the market, LINK lost close to 28 percent of its value. While there have been some signs of recovery on the price charts, traders cannot discount the possibility of a further dip soon.

At the time of writing, LINK was trading at $25.5 with a market cap of close to $10.5 billion, making it the ninth-largest cryptocurrency according to CoinMarketCap’s list.

Chainlink 1-day Chart

Source: LINK/USD, TradingView

Chainlink’s price surged within an ascending channel formation over the last two months and as expected, the breakout was bearish for the coin. Additionally, Bitcoin also fell over the past week, adding to LINK’s price woes.

At press time, while LINK had strong resistance around the $35.1-price range, it was testing the support at $23.9, just like it has over the past few days. If this support level fails, it is quite likely that LINK will head towards the next support at $19, creating an opportunity for traders to open short positions.

Rationale

The technical indicators for LINK were quite bearish at press time and one can expect a further price drop for the coin in the coming days. At the time, the RSI indicator was quite far away from the overbought zone and was close to the oversold zone, indicating the absence of a buyer-dominated market.

If the RSI drops even further, LINK’s downtrend will continue. The MACD indicator also painted a similar picture after having seen the Signal line go past the MACD line, resulting in a bearish crossover.

Important levels to watch out for 

Resistance: $35.1

Support: $23.9, $19

Entry: $24.7

Take Profit: $19.4

Stop Loss: $34.4

Risk/Reward: 0.56

Conclusion

Chainlink saw its price surge on the charts over the past two months. However, the sentiment has since changed quite significantly and the coin seemed to be firmly in the grip of the bears. The altcoin may see a further price drop in the coming week if the press time support level fails. Such a scenario will result in LINK’s price going below the $20-mark, presenting an opportunity for short positions in the market.


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Source: https://ambcrypto.com/chainlink-price-analysis-27-february

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Blockchain

Bitcoin Cash, Huobi Token, Zcash Price Analysis: 27 February

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Bitcoin Cash retained the 10th spot on the crypto-rankings, despite being severely impacted by the recent correction in the broader market. Huobi Token flashed bullish signals, but a break above its press time resistance was unlikely. Finally, Zcash was projected to trade within a fixed channel since volatility was low in the market.

Bitcoin Cash [BCH]

Source: BCH/USD, TradingView

Weekly losses on Bitcoin Cash‘s charts amounted to 34% as a correction in the broader market had a negative effect on the crypto-asset. This period also saw $3 billion erode from BCH’s total value as it held on to the number 10th spot in the crypto-rankings by a bare margin, with a market cap of $9.18 billion. At the time of writing, BCH’s price was floating just above its $464-support, while the indicators gave mixed signals on BCH’s future trajectory.

The RSI pointed lower from under the 40-mark and reflected the weakness in price. On the other hand, the MACD moved above the Signal line while the histogram registered rising bullish momentum. With the crypto-market awaiting strong cues, we can expect BCH to remain above its press time support level. If the aforementioned level fails, the next line of defense would be at $421.5.

Huobi Token [HT]

Source: HT/USD, TradingView

The ADX indicator showed that Huobi Token’s uptrend was weakening after the price snapped an all-time high exactly a week ago. In fact, the losses amounted to over 30% following the broader sell-off in the crypto-market. At the time of writing, the altcoin’s price had bounced back from the $15.4-support after the bulls stepped in.

The MACD closed in on a bullish crossover, while the red bars on the histogram moved towards the half-line on the histogram. Either way, its gains would be capped at the immediate resistance and a hike to record levels seemed unlikely over the coming trading sessions.

Zcash [ZEC]

Source: ZEC/USD, TradingView

The Bollinger Bands on Zcash’s hourly charts were compressed as volatility remained low after the price bounced back from its $114.7-support. Weak trading volumes and buying pressure worked against a bullish outcome even though the price looked to breach the $124.75-resistance.

The Awesome Oscillator switched to red from green as momentum moved back and forth over the last few sessions. Moving forward, expect Zcash to remain within its current channel as it awaits stronger signals from the broader market for a definitive move on the charts.


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Source: https://ambcrypto.com/bitcoin-cash-huobi-token-zcash-price-analysis-27-february

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