Connect with us

Blockchain

Binance listing SUSHI was no big deal

Published

on



Binance’s Changpeng Zhao has received more than his fair share of criticism since Binance’s 2017 launch. As a high-profile crypto figure and the CEO of one of the sector’s largest companies, that is to be expected. But the denunciation leveled at him after the anonymous Chef Nomi’s SushiSwap sell-off scandal has been unwarranted.

Few things are more antithetical to the ethos of decentralized finance than having a single figure being the arbiter of the quality or viability of a project. If crypto and decentralized finance are borne of the desire to democratize financial markets and liberate the public from the centralized banking sector, the responsibility for determining the value of a project must be placed in the hands of the community. Anything less runs entirely counter to the crypto imperative.

We wouldn’t want CZ to determine those projects that capture the hearts and minds of the public just like we don’t want the same from institutions like central banks or legislators.

To trade or not to trade, that is the question

At its core, Binance is an exchange that lists tokens to trade. Its users are free to do their own research and decide whether or not to trade on the platform. The question is not: to list or not to list, but to trade or not to trade. And that can only be answered by crypto traders for themselves.

Binance’s listing rules have always been opaque. As CZ has expressly stated, the exchange does not have fixed rules lest applications are engineered to meet them.

Community enthusiasm is surely one of the key determinants in Binance’s decision to list a token. CZ’s job as a businessperson is to respond to that enthusiasm by offering traders a platform to trade on. Just as shovel merchants are not responsible for compensating luckless gold prospectors, exchanges cannot be blamed for poorly performing tokens.

Related: To list or not to list, Part 1: Binance should not have listed SUSHI

Rightly avoiding jeopardy

Binance offers trading in coins whose issuers have been subjected to the U.S. Securities and Exchange Commission enforcement action. Others have settled class-action lawsuits. The exchange lists privacy-centric coins when many exchanges bound more tightly by regulatory pressure will not.

If CZ were to play a more active role in anointing projects worth supporting, he would face scorn for picking winners and losers and may well subject himself to unwanted legal jeopardy. Amid the swirling uncertainty of the crypto-regulatory landscape, Binance’s light editorial touch on SUSHI was understandable.

While the SushiSwap situation was unedifying, there remain questions as to how egregious it was. It is not unhealthy for founders to allocate a portion of the tokens to a development fund wallet. Although there is a social contract that those funds nominally align the founders’ incentives with those of the community and won’t be market dumped, all that was exercised here was an execution of the code as it was written. Analysts had warned of that possibility in advance.

Chef Nomi’s rug-pull — as David Hoffman phrased it — was deeply cynical. But CZ is not an accomplice merely for providing the floor space.

This is Part 2 of a two-part debate series exploring the question of whether or not Binance made the right decision in listing the token SUSHI on its exchange. Part 2 presents the supporting side, arguing that Binance was justified in listing the token. Read Part 1 of the debate series challenging Binance’s decision to list the token here.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Paul de Havilland is a fan of disruptive technology and an active investor in startups. He has experience covering both traditional and emerging asset classes and also pens columns on politics and the development sector. His passions include the violin and opera.



Source link

Blockchain

How DeFi will kill the retail bank

Published

on

By



The world runs on consumer spending and consumer saving. It is everyday people who actually power the most important parts of the global economy and the global financial system. 

For consumers, this system runs through their retail bank. It is where most people save, spend and pay their taxes. This is the battleground for the coming fight: the battle for global consumer deposits.

Make no mistake, this will be the fight of the century. It will change the shape of the world more fundamentally than the internet has already. The internet was about information. DeFi is about capital — and as we all know, money is power.

Today, most people either hate or are indifferent to their bank. That is probably because they fine you for tiny mistakes, keep you on the phone for hours, give you the worst interest rates imaginable, and provide you with a user experience that borders on hostile.

That is not always the fault of the bank. Consumer regulation and controls have been mounting to the point that compliance is often one of the biggest cost centers for all retail banks. Such institutions cannot innovate because they are built to resist change, not to embrace it.

An irresistible opportunity

Decentralized finance has flipped the model on its head, delivering a new world of financial products, built using smart contracts that allow consumers to switch between providers in a matter of seconds, all at the click of a mouse.

Related: DeFi will bring global revolution to the traditional finance space

It is not that the DeFi model is just better — it’s simply fundamentally different. In the old world of retail banking, we had to trust the people that run banks. This trust is expensive. In the new world of decentralized finance, we trust the code that provides our financial services.

Protocols such as Aave, Uniswap and MakerDAO have the ability to directly control assets like USD Coin (USDC), Ether (ETH) and Wrapped Bitcoin (wBTC), enabling the rise of financial products that can operate 24/7, 365 days a year, with 100% uptime and no staff. It removes the cost of checks and balances. It takes handcrafted financial processes and turns them into automated programs.

Decentralized finance gives entrepreneurs an irresistible opportunity to truly compete in the world of global finance — a place that was once the exclusive realm of multinational corporations with eight-figure legal teams on retainer. Not only this, DeFi lowers the switching costs for a consumer to almost zero: I can move my capital from Aave to Compound to Uniswap in a matter of minutes, with precisely zero paperwork.

Related: DeFi-ing the odds: Why DeFi could rebuild trust in financial services

On DeFi, capital can flow almost instantly to the best value opportunities, and it provides the thing that global finance truly needs: real competition and real innovation. This competition is why DeFi will kill the retail bank. If I can get 15% APR in my favorite DeFi savings decentralized application, why would I ever keep my money in a bank?

With opportunities come threats

But right now, all is not well in DeFi. To date, DeFi on Ethereum has seen over $285 million in hacks, rewards are unfairly shared, and Ethereum continues to be congested and expensive to use.

The trust model of DeFi is code, not humans. The community is essential to the success of any ecosystem. To win, a platform must never get congested — no matter how many people are using it.

Related: Smart contract exploits are more ethical than hacking… or not?

We need a decentralized network where developers can build quickly without the constant threat of exploits and hacks, where every improvement will get rewarded, and where scale will never be a bottleneck. Because only then can the retail banks be slain and we get to see what great consumer finance truly looks like.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Piers Ridyard is the CEO of Radix DLT, a secure decentralized network. Piers also founded and exited Surematics, a YCombinator company, and was mining on the genesis block of Ethereum in July 2015. Piers graduated from the University of Manchester and the University of Law and has a CFA level 1.



Source link

Continue Reading

Blockchain

Colombian capital supports blockchain and emerging tech with $2.3M fund

Published

on

By



Colombia’s capital of Bogotá is funding blockchain development as part of the city’s broader investment in innovative technologies.

According to a Monday announcement on the city of Bogotá’s official website, the municipal government will provide 8.8 billion Colombian pesos ($2.3 million) to local companies as part of four new programs in the city’s Innovation, Technology and Creative Industries Fund, or FITIC.

The new funding includes a contribution of of 2.8 billion pesos, ($739,000) to the development of local blockchain startups through a program called “Hub Blockchain Bogotá.” The project aims to support 100 blockchain-focused companies in order to boost their competitiveness on the global market and provide tech advice for implementing blockchain within participating companies.

The new innovation funding campaign is organized with support from the Superior Mayor of Bogotá, the District Secretariat for Economic Development, Jorge Tadeo Lozano University, state entrepreneurship body Innpulsa, and Singapore-based blockchain accelerator Tribe Accelerator.

Related: Colombia’s oldest commercial bank pilots crypto services

Bogotá Mayor Claudia Lopez took to Twitter on Monday to invite local businesses to apply for the program starting on June 25. “Each company will be able to receive from the FITIC from 10 to 50 million pesos in capital to be able to take their idea forward,” the mayor said.

Colombia has been actively exploring blockchain technology. Last August, the Colombian Ministry of Information Technology and Communications called on the public sector to adopt blockchain technology in payments, land registration, voting, data management, supply chain and others areas. Previously, Bogotá launched a series of free online courses on a broad spectrum of new technologies including blockchain.