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The Elephant in the Room: How This Project Addresses Human Reliance in Token Economy Models

Republished by Plato

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Blockchain and DeFi protocols are only as strong as their weakest link

With today’s ever-growing blockchain landscape, token economies are bigger and more active than ever. When it comes to DeFi (decentralized finance) in particular, there is nearly $44 billion locked in decentralized finance protocols, with users around the globe forming part of various innovative decentralized economies that are disrupting traditional finance.

The countless thousands of ecosystem participants that support these protocols and platforms, although kept safe by blockchain’s inherently secure infrastructure, also rely on what are mostly very capable project teams and treasury managers to efficiently manage token unlocks and distributions that take place after token sales, airdrops and other events. But this highlights an important issue, one that is often not spoken about alongside blockchain’s otherwise decentralized mechanics: human reliance within token economies is often a bomb waiting to go off and, as long as this human component exists within cryptocurrency and DeFi ecosystems, the space will not be fully decentralized.

Polkalokr, a new and highly customisable escrow platform built on the Polkadot blockchain, looks to offer a solution to this problem with governance-as-a-service and a model that takes token distribution out of the hands of projects teams. The team behind the protocol recently announced the closing of a successful private sale round, one that included prominent funds such as Moonrock Capital, AU21 Capital and LD Capital.

Bad actors and human error: Current token economies

The rapid evolution of blockchain technology and DeFi has seen some truly amazing solutions emerge in recent years that can tackle and replace wholly outdated frameworks across a plethora of industries in a decentralized manner. This being said, the complex token economies that underpin these projects can still arguably be viewed as centralized; project teams are more often than not the responsible party when it comes to token management and, with millions of dollars pouring into token sales at the height of crypto mania, this can lead to some troubling results.

Simply searching for the keywords “crypto scam” will net plenty of results that serve to illustrate the pitfalls accompanying centralized token holding models. Almost $2 billion in user funds from across the cryptocurrency landscape was reportedly stolen in 2020 alone, with incidents ranging from poor private key management by project teams, to full-on exit scams by the founders themselves. These incidents all highlight the change in approach and overall token economy redesign that is required if blockchain’s promise of true decentralization is to be fulfilled.

Even when taking bad actors out of the equation, token treasuries are still not fully safe in the hands of project teams, as poor security practices or simply a lapse in judgment can result in millions of dollars of user funds being lost, locked or burned forever. The processes that run within smart contracts are complicated and unforgiving, with even the smartest of minds able to make a costly mistake at the touch of a button.

Putting the power back into participation

Headed up by a UK-based team with a strong background in computer programming and infrastructure project management, Polkalokr offers project developers a suite of modular building blocks enabling them to create trustless escrow payout options for a wide variety of use cases. The protocol’s versatile, multi-chain solution suits any token locking requirement and presents both projects and users with a myriad of new opportunities, including fully-customizable event-based token unlocks and monetization of locked tokens.

Polkalokr consists of Lokr and Swapr, with the latter product offering users cross-chain atomic swaps of any tokenized digital asset with privacy & multi-sig options. Functionality and useability is at the forefront of the protocol’s design and implementation; Polkalokr aims to give both projects and their participants access to a one-stop-shop with comprehensive locking, distribution, monetization, swapping and even insuring of the tokens that glue today’s blockchain ecosystems together.

Building natively on Polkadot, the Polkalokr team boasts a dedicated Rust developer that will deliver beyond the promises of many Polkadot-based projects, many of which have had to rely on Ethereum bridges alone so far due to a lack of qualified Rust and Solidity programmers in the blockchain space. Plans for a public token sale are to be announced in the coming weeks.

Image by Buffik from Pixabay

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/news/company/the-elephant-in-the-room-how-this-project-addresses-human-reliance-in-token-economy-models/

Blockchain

Bitcoin Cash Price Analysis: 10 April

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The correlation between Bitcoin and Bitcoin Cash stood strong at 0.729, showing a positive correlation between the prices of the two (denominated in USD). Bitcoin Cash saw some bullish news in recent weeks when it was announced that merchants that have integrated PayPal will be able to accept payments in BCH.

Bitcoin Cash 12-hour chart

Bitcoin Cash Price Analysis: 10 April

Source: BCH/USDT on TradingView

Bitcoin Cash was once again near the $670 resistance level. Further on lies the $750 resistance level, while support is at the $600-$610 area.

A leg upwards could be exactly the thing that has been brewing in the markets over the past month. Bitcoin and Ethereum have been unable to break past the stubborn resistance at $60k and $2000 respectively, suffering a sharp pullback before recovering. The positive sentiment around the market has been building for a few weeks now and could propel prices higher in the weeks to come.

The technical indicators showed that BCH has shifted back toward bullish momentum over the past two weeks, after dropping to test the $480 support level.

Rationale

Using the Elliot Wave Theory, the move from $220 (October) to $500 (January) appears to be the third wave in a series of five waves for BCH – and that wave also saw BCH register larger gains than the other two motive waves.

The move from $750 to $480 would then be Wave A of the corrective phase – and the recovery from $480 being Wave B. If this is indeed so, then BCH is unlikely to push past $750 once again.

The OBV showed that although buying volume was present, it has not yet made up for the selling volume seen since the drop from $750. This has to change if the bulls are to drive prices toward $800.

The RSI climbed back above neutral 50 to denote bullish sentiment.

Conclusion

A surging Bitcoin often sees market participants exchange altcoins for the king of crypto. This scenario would likely see coins such as BCH stagnate while Bitcoin soars. The $660 and $750 remain key levels of resistance and a move above them will invalidate the corrective phase scenario laid out in this analysis.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/bitcoin-cash-price-analysis-10-april

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

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The bulls ride again on XRP’s side, as the token breaks about $1. On the legal subject, things seem to be going well for Ripple’s corner as rumors of an SEC settlement grow louder.

Back in December, the Commission hit Ripple Labs, executive Brad Garlinghouse, and Chris Larsen with a lawsuit for the alleged illegal sales of an unregistered security. In the coming month’s XRP’s price plummeted, exchanges delisted it, some investors lose faith.

As reported by lawyer Stephen Palley, Garlinghouse and Larsen scored a victory yesterday when Magistrate Judge Sarah Netburn rule that “discovery seeking 8 years of financial records along w/ subpoenas to 3d parties seeking same were too broad”.

Palley classified the decision as a “nice early win” by the defendants but is still skeptical about it being an indication for a resolution on the case. Palley added the following:

Winning a motion for a protective order on discovery doesn’t usually portend victory on the merits of the case itself. It depends. And the Court left open the possibility some of this could revisit later, if there are reasons to check veracity.

On the other hand, Galaxy Digital CEO Mike Novogratz said Ripple’s “equity is trading” at up to $3 billion in valuations on a secondary market. Novogratz speculated on the possibility XRP is rallying due to rumors of a possible settlement in the lawsuit.

Last February, the parties ruled out a settlement in a joint letter. However, the negotiations took place under the Commission’s previous directive. Gary Gensler is expected to be confirmed by the Senate and his more pro-crypto stance to have a positive influence on the legal process. Novogratz said:

Ripple equity is ‘trading’ in secondary market at $2-3bn valuation.  The $XRP on their balance sheet is worth approx $70bn. One price seems wrong. If XRP price is saying settlement coming, the equity is crazy cheap.   If not, the token seems expensive.   Thoughts?

Commenting on Novogratz’s statements Palley said there is no “public” indication a resolution is coming soon. The lawyer classified this subject as “inside” information and claimed a settlement will come after summary judgment practice. Palley added:

I don’t know how one can correlate price itself to settlement unless someone has inside information about potential SEC settlement/resolution and ability for exchanges to re-list for trading. Ripple has done better than I expected so far in preliminary motion practice and discovery fights, but there’s a long way from that to case resolution.

XRP in moon mode

Those who hold on to their tokens have been rewarded. XRP is trading at $1,32 with 29% profits in the past 24 hours and the biggest weekly rally in the crypto top ten with 113%.

Ripple XRP XRPUSDT
XRP on a bullish run in the 24-hour chart. Source: XRPUSDT Tradingview

Trader Kaleo said XRP is yet to reach its top and seems bullish on current price action. Comparing it to the 2017 bull-fun, the trader said XRP’s price quickly reach $2.45 when it broke the $1 mark. In the current rally, there is “way more capital” and fuel for the price to extend the bullish momentum.

In the last 24 hours, investors in South Korea are increasing XRP buying pressure as shown by the high trading volume in Upbit and Bithumb, two major exchanges in that country.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/news/how-ripples-big-win-in-court-correlates-with-xrps-113-rally/

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Chainlink, Aave, Decred Price Analysis: 10 April

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Chainlink moved within an ascending channel but a breakdown did not seem likely at least in the short term. Aave remained below its 200-SMA, while Decred was expected to break south from its ascending channel after touching $200.

Chainlink [LINK]

Source: LINK/USD, TradingView

Chainlink’s current price was at a crossroads on the 4-hour chart. On one end, a climb above $35-resistance on the back of a bullish broader market would likely boost LINK above its ATH of $36.9. The other end would see LINK move below the bottom trendline of its ascending channel.

A bearish divergence on the MACD did lead to a pullback, but the price was still within the confines of an ascending channel. If the fast-moving line does cross above the signal line, a breakdown can be avoided over the coming sessions. The RSI pointed north from 54 but was expected to fall towards the oversold zone after forming another peak in the upper territory. A breakdown would highlight $28.6-support, but the same could go as low as $24.4.

Aave [AAVE]

Source: AAVE/USD, TradingView

While Aave has attempted a recovery after the late February pullback, gains have been largely capped by a strong resistance line of $422.7. Another stubborn form of resistance came from the 200-SMA, a line that has subdued Aave’s attempt at a bullish comeback. At the time of writing, the candlesticks were below the 200-SMA and the bulls faced an uphill task to take control of the market.

The OBV moved flat over the last few sessions. On a whole, selling volume has outmatched buying volume since mid-February. The ADX pointed south from 26 as the price approached its long-term moving average. Even if the price does move north, failure to flip $422.7 to a line of support could lead to a breakdown once again. Support at $300 could cushion any losses seen during the mid-long term.

Decred [DCR]

Source: DCR/USD, TradingView

On the 4-hour timeframe, Decred moved within an ascending channel after a pickup from $175.7-support. Since the last two weeks, this has become a recurring theme for DCR. Ascending channels have led to a minor pullback but the bulls have swiftly negotiated them and maintained an upwards trajectory. Going by the same logic, a minor pullback was expected if the channel peaks at a psychological level of $200.

The $195 region could offer some support but a fall towards $175.7 was also likely in case of a sharper sell-off. For now, the RSI was in the process of forming its third peak in the overbought region and a reversal can be expected soon after. Meanwhile, bullish momentum was gathering according to the Awesome Oscillator.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/chainlink-aave-decred-price-analysis-10-april

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