The DeFi Conundrum: Why Crypto Exchanges Like Uniswap Are Struggling to Reach Critical Mass - cyptoranking.com

2024-05-03

Popular crypto exchanges(2023 Update) 2024-05-03
Image: cyptoranking.com

Robert Zagotta. Source: a video screenshot, CCData / YouTubeThe world’s longest-running crypto exchange Bitstamp is in talks with three large European banks about offering crypto services.The 12-year-old exchange is in talks to help the banks begin offering these services possibly in the first quarter of 2024.Cryptonews has reached out to Bitstamp for comment. In a comment to CoinDesk, Robert Zagotta, the company’s global chief commercial officer and CEO of the US division, stated that, over the past 6-9 months, Bitstamp has seen "quite an increase in inbound inquiries" from big European banks about Bitstamp-as-a-service offering, its white-label licensing and technology service enabling banks and fintech firms to offer buying and selling of cryptocurrencies."We are in advanced conversations with three such banks, household name banks in Europe. I think first quarter-ish we will be able to announce," Zaggotta said, without naming the banks.This development has emphasized the massive difference in the regulatory approach to the novel industry between the EU and the US. While one seems to be becoming increasingly more welcoming, the other is pushing the crypto companies away from its own and into other jurisdictions. Specifically, the European Union made a major step for the cryptokind with the passing of its Markets in Crypto Assets (MiCA) regulations. The groundbreaking regulatory framework was signed into law by the EU officials earlier this year. The US paints a very different picture: the regulators there have moved to crack down on the industry, with the companies complaining for years about the lack of clear regulations - if the rule is unclear, how is one to follow it? This is why many companies are looking into relocating - or have already done so - to more crypto-friendly jurisdictions with clearer regulations, mostly in Asia and Europe. Singapore and Hong Kong have been often recently named among popular destinations.In early August, the oldest cryptocurrency exchange said it would "permanently" halt trading of seven altcoins for its users based in the United States.The move could have been related to the US Securities and Exchange Commission's (SEC) actions, as the regulator had classified all seven tokens as unregistered securities in its complaints against exchanges Binance and Coinbase. In late August, Bitstamp announced it would terminate the ETH staking service for US users, citing the "current regulatory dynamics in the US."Meanwhile, that same month, there were reports that Bitstamp was in talks to raise fresh funding for operations, including launching derivatives trading in Europe next year and expanding the number of markets it serves in Asia, as well as its operations in the UK. It reportedly started the fundraising process in late June, with Galaxy Digital Holdings acting as an adviser.____Learn more: - Bobby Zagotta, US CEO of Bitstamp, on US Crypto Regulation, The Banking Crisis, and Web3 Innovation- Bitstamp, Interactive Brokers Receive FCA Nod for UK Crypto Operations- Ripple Purchases Bitstamp Shares as it Ponders Further M&A- US Crypto Firms Migrate to Bermuda Amid Regulatory ConcernsFTX CEO Sam Bankman-Fried's Legal Battle Expands to Lawyers' Involvement Street vendors abound in downtown Manhattan’s Financial District. But weeks ago, on Sept. 14, an especially unconventional seller set up shop in front of the United States Securities and Exchange Commission (SEC), transforming a patch of Maiden Lane into a colorful quilt of doormats, each spray painted with the straightforward instruction to “pull.” The DeFi Conundrum: Why Crypto Exchanges Like Uniswap Are Struggling to Reach Critical MassThe MACD line at 0.018 and the signal line at 0.014 are below the zero line. Both lines crossed each other displaying a bearish crossover in the MACD oscillator, where the histogram width is lean and narrow, showing NEAR price consolidation or bearish trend continuation. 2022 was a challenging year for Improbable as the British firm reportedly reduced its headcount by more than 10% to cut losses.

Exchange Rankings Crypto
Image: cyptoranking.com

ETH/USD 4-Hour Chart (Source: TradingView) The BTC price increase gained momentum two weeks ago, forming a bullish engulfing candlestick pattern. This specific candlestick pattern erases all losses from the previous period, indicating a positive outlook for future price trends. Palm oil falls on higher May supply, dip in early June exportsBitcoin needs Ethereum VM to reach its full potential — Web3 exec The rise of Ethereum staking since major network upgrades, the Merge and Shanghai, has come at the cost of higher centralization and lower staking yields, a new report by JPMorgan said.JPMorgan analysts, led by senior managing director Nikolaos Panigirtzoglou, issued a new investor note on Oct. 5, warning about the risks stemming from Ethereum’s growing centralization.Market share of top five liquid staking providers. Source: JPMorganThe top five liquid staking providers: Lido, Coinbase, Figment, Binance and Kraken, control over 50% of staking on the Ethereum network, JPMorgan analysts noted in the report, adding that Lido alone accounts for almost one-third.The analysts mentioned that the crypto community has seen the decentralized liquid staking platform Lido as a better alternative to centralized staking platforms associated with centralized exchanges like Coinbase or Binance. However, in practice, “even decentralized liquid staking platforms involve a high degree of centralization,” JPMorgan’s report said, adding that a single Lido node operator accounts for more than 7,000 validator sets or 230,000 Ether (ETH).These node operators get selected by Lido’s decentralized autonomous organization (DAO), which is controlled by a few wallet addresses, “making Lido’s platform rather centralized in its decision making,” the analysts wrote. The report mentioned a case when Lido’s DAO rejected a proposal to cap the staking share at 22% of Ethereum’s overall staking to avoid centralization.“Lido didn’t participate in the initiatives as its DAO rejected the proposal by an overwhelming majority of 99%,” JPMorgan analysts wrote, adding:“Needless to say that centralization by any entity or protocol creates risks to the Ethereum network as a concentrated number of liquidity providers or node operators could act as a single point of failure or become targets for attacks or collude to create an oligopoly [...]”Apart from higher centralization, post-Merge Ethereum is also associated with an overall staking yield decline, JPMorgan noted. The standard block rewards declined from 4.3% before the Shanghai upgrade to 3.5% currently, the analysts wrote. The total staking yield has declined from 7.3% before the Shanghai upgrade to around 5.5% currently, the report added.Related: Time to ‘pull the brakes’ on Ethereum and rotate back to Bitcoin: K33 reportJPMorgan analysts aren’t the only Ethereum observers who have noticed a significant increase in network centralization following the Merge upgrade. Executed on Sept. 15, 2022, the Merge has been seen as a major impediment to Ethereum’s decentralization and a major reason for dropping yields.you are the yield pic.twitter.com/ONJT6QmDch— Pledditor (@Pledditor) October 5, 2023

Schwartz is convinced that the move from Elon Musk aims to protect advertisers. Per his thesis, Musk wants to make it impossible to reply to or report ads placed on the timeline. He also believes the move is designed so users will not find it easy to ignore an ad, making it less effective. “We have a project called Sofamon, which is hard to describe,” he says. The app is a browser extension that acts as a wallet interface, he explains. “It’s this cute little bunny that reacts to all of your on-chain interactions. If a friend sends you tokens, if something happens in your wallet, it reacts.” Which crypto exchange can use in Singapore?Friend.tech SIM-swap scourge continues as scammer nets $385K in Ether The average daily trading volume of the surveyed exchanges was 2.9 trillion won (US$2.19 billion) in the first half, a 1.3% decrease from 2.94 trillion won (US$2.17 billion) in the latter half of 2022.

General Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.Mythical Games launches racing game on Apple and Android devices, following NFL Rivals General Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.Crypto Watchlist For The Week Ahead: FXS, BNB, APT, RDNR, & SNX Buy Bitcoin Canada-Best Cryptocurrency Exchange|Bitbuy?Bitcoin Cash’s price hit a 15-month peak when it reached $329 on June 30, 2023. But as crypto whales and strategic retail investors aped-in on the price rally, BCH miners have been offloading their block rewards behind the scenes. 'NFL Rivals' launch

Have an opinion on this story? Share it!