Connect with us

Blockchain

Driving DeFi Adoption Through Innovation

As with the advent of Bitcoin and the proliferation of cryptocurrencies, multiple DeFi projects have hit the marketplace, each promising to decentralize the traditional financial industry.

Republished by Plato

Published

on

The Decentralized Finance (DeFi) marketplace has witnessed exponential growth in recent times. Fueled by the need to tackle current inefficiencies in the global financial system, this growth cannot be ignored or undervalued. Whilst this rather nascent niche of the blockchain industry may not be as popular as the general Bitcoin or cryptocurrency marketplace, data suggests that the DeFi marketplace is hitting new all-time highs in both the total number of users and the total amount of digital assets locked.

According to Ethereum analytics platform, Dune Analytics, the number of DeFi assets increased by almost 10 times between May 2019 and May 2020. As at May 2020, the DeFi market space was valued at over $2 billion, with the total number of DeFi users reaching 193k and new assets exceeding 1,000 for the first time. 

C:UsersOwnerAppDataLocalMicrosoftWindowsINetCacheContent.WordScreenshot_2020-07-14 DeFi Records ‘Exponential’ Growth in Assets.png

Interestingly, the sector has almost tripled in valuation in less than two months, confirming claims of its exponential growth. Data on DeFi Market Cap reveals that the market cap of all decentralized finance projects is closing in on $8 billion, with the total number of users nearing 250k.

At the core of its innovation, DeFi is attempting to open traditional financial services to everyone by using public distributed ledgers to provide a permissionless financial service ecosystem. Broadly speaking, several traditional financial services such as trading, margin trading, lending, wealth management, investment, and insurance will be able to run on blockchain.

As with the advent of Bitcoin and the proliferation of cryptocurrencies, multiple DeFi projects have hit the marketplace, each promising to decentralize the traditional financial industry. The nascency around the space makes it a honeypot for investors, new protocol tokens and innovations.

One of such project that is pushing the frontiers of innovation in the DeFi space is PlutusDeFi, a microcap full-stack DeFi Aggregator. PlutusDeFi integrates a number of products and DeFi applications on a single platform. 

According to its website,

Every other DEFI projects or startups are a half-step towards truly taking control away from corruptible centralized bankers and financial institutions. We are the solution to achieve a total decoupling and true sovereign wealth for everyone with our strong focus on anonymized privacy at the protocol level.

It is not unusual for blockchain projects to make claims. However, the odds seem to be in favor of PlutusDeFi. Recently, the project reached its $1 million hard cap milestone in a private sale round and has since received a lot of interest from renowned venture capitalists, DeFi projects, and the media. In its latest round, PlutusDeFi welcomed new investors like Blockchange Capital, Ethereal Capital, Danish Choudhury, CEO of Bitcoin.com exchange, Eric Benz, CEO of Changelly, Sean Klingosum, Managing Partner at Torchlight Ventures, and Thibaut Denonain, the Head of Trading at Goldbaum & Partners, just to mention a few.

More recently, NGC Ventures became the first VC to double its investment in PlutusDeFi. Speaking on the development, Roger Lim, an NGC Venture Partner who was part of the seed round investment said: “DeFI has the potential to be an integral part of our financial system. Being so requires privacy to protect your finances from the public eye. PlutusDefi introduces privacy to DeFi and will help push greater adoption for DeFi.

With over 4,000 projects in the blockchain space, it is not uncommon to see projects exit the market as quickly as they come in. PlutusDeFi has indicated its intention to stay in the space for a long time. To this effect, the microcap project introduced a utility token as a value capture. Users can stake into the network by holding a small amount of PLT tokens in order to access certain features.

The zero-fee model has been shown to be a largely unsustainable model. Instead of trying to reduce network fees to the barest minimum, PlutusDeFi reverts all fees back to tokens which are split into 3 pools – re-audit fund, buyback and burn, and a staking pool. This model is expected to increase the company’s staked tokens while boosting its valuation over time.

Data from the World Bank reveals that about 1.7 billion adults remain unbanked; without an account at a financial institution or through a mobile money provider. On the flip side, the level of phone penetration has continued to increase with some stats suggesting that the number of mobile devices now exceeds the current population of the world.

PlutusDeFi aims to reach the unbanked through telecom companies, providing an aggregate of decentralized financial products through telecom providers. Through partnerships and integrations with M-Pesa, Vodacom, and Lipisha, the company will be able to accept Mobile Money Credit from Mobile Money Business Accounts. Users in Africa will be able to participate in DeFi lending opportunities with a simple command such as sending a text message.

In general, the DeFi space is still quite nascent. The next few years will reveal what this niche has to offer.

Source: https://themerkle.com/driving-defi-adoption-through-innovation/

Blockchain

$420M in leveraged long traders liquidated after XRP rallies to $1.96

Republished by Plato

Published

on

XRP holders couldn’t have asked for a better year as the cryptocurrency rallied almost 800% and flirted with a $2 level in the early hours of April 14. 

In addition to achieving its highest level since January 2018, this robust price increase signals that investors are not worried about the ongoing SEC “unregistered securities offering” dispute.

However, just 6 hours after rallying to $1.96, XRP price crashed by more than 20%. During an interview, DCG Group CEO Barry Silbert said it would be risky for exchanges and companies in the United States to relist XRP ahead of receiving the SEC’s blessing. These remarks may have contributed to the unprecedented $420 million long liquidations on derivatives exchanges today.

XRP price in USDT at Binance. Source: TradingView

Over the past couple of weeks, the primary catalysts for XRP’s rally have been victories in Ripple’s legal battles. Lawyers representing Ripple were granted access to internal SEC discussions regarding cryptocurrencies, and more recently, a court denied the disclosure of two Ripple executives’ financial records, including CEO Brad Garlinghouse.

Considering the recent rally, pinpointing a single reason for the price correction will likely be inaccurate. Nevertheless, the impressive $420 million long liquidations past 24-hours exceed those of Feb. 1 when XRP price crashed by 46% in two hours.

XRP futures aggregate liquidations. Source: Bybt

The only logical reason behind this staggering liquidation is excessive leverage used by buyers. To confirm such a thesis, one must analyze the perpetual contracts funding rate. To balance their risks, exchanges will charge either longs or shorts depending on how much leverage each side is demanding.

XRP perpetual futures 8-hour funding rate. Source: Bybt

The chart above shows that the 8-hour funding rate is surpassing 0.25%, which is equivalent to 5.4% per week. Although this is excessive, buyers will withstand these fees during strong price rallies. For example, the current upward price move lasted for almost three weeks, and prior to that another took place in early February.

Blaming the liquidations exclusively on leverage seems a bit extreme, although it certainly played its part in amplifying today’s correction.

Moreover, the record growth in XRP futures open interest was accompanied by a hike in the volume at spot exchanges. As a result, the eventual impact from more significant liquidations should have been absorbed by the increased liquidity.

Cascading liquidations will always take place in volatile markets. Thus investors should focus on how long it takes until the price recovers from it.

Fundamentally, a 10% or 20% intraday drop should not be interpreted differently. The correction depends on how many bids were previously stacked at exchange orderbooks and is not directly related to investors’ bullish or bearish sentiment.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/420m-in-leveraged-long-traders-liquidated-after-xrp-rallies-to-1-96

Continue Reading

Blockchain

Garry Tan’s 2013 investment of $300K in Coinbase is now worth $2.4B

Republished by Plato

Published

on

Garry Tan, a prominent angel investor and the founder of Initialized Capital, was one of the first investors to provide seed funding to Coinbase eight years ago. 

Less than a decade later, and after today’s highly anticipated Nasdaq listing for Coinbase’s COIN stock, Tan’s 2013 investment of $300,000 into Coinbase is now worth $2.4 billion.

Coinbase debuted on the Nasdaq on April 14 at $381 per share, making it one of the most hyped listings in the U.S. stock market of the year.

How did $300,000 become $2.4 billion?

In 2013, when Tan invested in Coinbase, it was unclear whether Bitcoin would be recognized as a global asset and an established store of value.

At the time, there were not many reputable exchanges, and the few that existed were often hacked. Tan’s investment took place before the monumental Mt. Gox hack that saw billions of dollars worth of BTC stolen.

Even after launch, Coinbase was not always in an uptrend. According to Coinbase co-founder Fred Ehrsam, from 2014 to 2017 the company faced numerous hardships. 

Ehrsam said:

“Over time, crypto grew, and so did the company. A simple #Bitcoin wallet evolved into individual and institutional products to support a blossoming cryptoeconomy. 2 nerds who met on the internet (yes, @brian_armstrong and I met on @reddit ) turned into a company of 1000+. There was serious hardship. In the 3 years between 2014 and 2017, the outside world thought crypto was dead. Over a third of employees left. Yet crypto kept building. @ethereum came on the scene and showed that crypto native applications were possible, opening up a whole new world of possibilities.”

Even if the listing fails to impress, Coinbase has alluring financials

Coinbase is the first publicly listed major cryptocurrency exchange in the U.S. stock market and its availability on Nasdaq now provides mainstream investors with exposure to the crypto sector. Even if the listing fails to impress on day one, the company still has strong financials and user metrics.

Coinbase made $1 billion in the last quarter and has more users than every financial institution in the U.S. apart from JPMorgan, making it a highly compelling trade for investors in the traditional financial market.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/garry-tan-s-2013-investment-of-300k-in-coinbase-is-now-worth-2-4b

Continue Reading

Blockchain

German software developer donated $1.2M in ‘undeserved’ Bitcoin to political party

Republished by Plato

Published

on

A German national who reportedly sees his Bitcoin profits as “undeserved wealth” has donated more than $1 million to the country’s green political party.

According to Hamburg-based news outlet Die Zeit, Moritz Schmidt, a software developer from the northeastern town of Greifswald, has sent one million euro — roughly $1.2 million — to Germany’s green party, known as The Greens or Alliance 90. A party spokesperson said Schmidt had made significant gains during the Bitcoin (BTC) bull run but wanted to contribute to causes related to environmental and climate protection rather than HODLing his crypto.

“The donor has made it clear to us that he sees these profits as undeserved wealth that he does not claim for himself, but wants to use socially, for something that corresponds to his convictions,” said the Greens spokesperson. “In the meantime he sees the Bitcoin system critically, among other things against the background that the necessary arithmetic operations consume huge amounts of electricity.”

Records for the Greens show that Schmidt’s donation is the biggest the party has received this year, with the next highest contribution at 500,000 euro, or roughly $600,000. The funds will reportedly be used for the party’s federal election campaign and the state election campaigns in 2021.

The software developer is not alone in seemingly hoping the crypto industry will become greener. Many have criticized Bitcoin mining for its impact on the environment, with some estimates indicating the network consumes more energy than the entire country of Argentina. However, Mike Colyer, CEO of crypto mining firm Foundry Digital, said this week that he believes mining Bitcoin could eventually help the transition to a “world where 100% of our energy is produced from renewables.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/german-software-developer-donated-1-2m-in-undeserved-bitcoin-to-political-party

Continue Reading
Blockchain4 days ago

How NFTs, DeFi and Web 3.0 are intertwined

Blockchain5 days ago

11% Of Business In Spain Use Blockchain Technology, Report

Blockchain4 days ago

XRP Price Analysis: 10 April

Blockchain4 days ago

Has the rally ended for altcoins like LINK, ADA, and NPXS?

Blockchain2 days ago

By The Numbers: The Rate Bitcoin Must Climb To Reach $100K By July

Blockchain2 days ago

NYSE celebrates historic ‘first trades’ with NFT series

Blockchain2 days ago

Whole Earth Coin (WEC) Set for IEO to Inject New Life Into Aging Infrastructure

Blockchain2 days ago

Bitcoin’s time has come: TIME magazine to hold BTC on balance sheet

Blockchain4 days ago

Kraken Daily Market Report for April 09 2021

Blockchain4 days ago

Watch these key technical levels as Bitcoin price nears $61,800 all-time high

Blockchain5 days ago

Uniswap, Monero, Ethereum Classic Price Analysis: 10 April

Blockchain2 days ago

USDT, USDC, and BUSD represent 93% of stablecoin market cap

Blockchain4 days ago

Oasis Foundation announces implementation of Tidal DeFi insurance platform

Blockchain2 days ago

Binance launches zero-commission tradable stock tokens

Blockchain2 days ago

NYSE Joins NFT Mania With Special First Trade Collection

Blockchain5 days ago

Real Estate Giant Teams up with Gemini to Buy Bitcoin and Allow BTC Rent Payments

Blockchain2 days ago

German digital stock exchange will list physical Litecoin ETP

Blockchain4 days ago

Bitcoin Bull Mike Novogratz Predicts Existential Crisis Unless the US Creates a Digital Dollar

Blockchain2 days ago

Boson Protocol concludes $25.8M public sale, token listed on exchanges

Blockchain4 days ago

How Ripple’s big win in court correlates with XRP’s 113% rally

Trending