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Bitcoin Supply on Exchanges Falls To Lowest Point in 4 Years, Further Reducing Massive Selloff Risk

Albert Brown
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Bitcoin Supply on Exchanges Falls To Lowest Point in 4 Years, Further Reducing Massive Selloff Risk

 

The percentage of Bitcoin (BTC) supply on exchanges is currently less than 9% for the first time since 2018.


Despite the market turbulence, Bitcoin (BTC) has retained its crown as the top crypto-asset. In tandem with other cryptocurrencies, the asset has been caught in a bearish pattern for most of this cycle.

Notwithstanding this unfavorable climate, it appears BTC holders are gearing for a takeoff, as the BTC supply ratio on exchanges falls below 9% for the first time since 2018. Investors usually send their assets to spot exchanges with the intent to sell. Conversely, when they are determined to retain their assets, they take them off exchanges, often to cold or private wallets.

Crypto behavior analytics platform Santiment recently highlighted the metric. 

“Bitcoin continues to see its supply moving away from exchanges as traders show further signs of being content with their current holdings. With less than 9% of BTC on exchanges for the first time since 2018, it is a good bode of confidence for bulls,” Santiment noted in a tweet Tuesday, revealing a chart to support the claim.

Santiment highlights that such a low supply on exchanges diminishes the chances of a sharp BTC fall.

From the Santiment chart, a sudden dip in the supply ratio of Bitcoin on exchanges is observable. Since reaching a peak of over 14% in June of last year, the ratio of BTC on crypto exchanges has steadily declined. This pattern indicates investors’ growing intention to keep their Bitcoin holdings despite the inauspicious weather.

Nonetheless, BTC exchange inflows saw an uptick sometime between late April and May. This spike can be attributed to the Terra collapse, which pumped a massive wave of FUD into the community, precipitating a contagion of capitulation and deleveraging.

As the dust settled, investors can be seen taking their BTC off exchanges. A sharp dip is observed as we reach late September, taking the ratio to 8.98%. The current ratio was last seen in November of 2018, when BTC was trading between $4k and $6k following a fall from the lofty $19k.

The fact that BTC investors are looking to HODL their assets at this point indicates the generally bullish outlook on the asset despite its recent shortcomings. To corroborate this pattern, the CryptoQuant BTC Exchange Reserve indicator shows an encouraging decrease in BTC reserve on exchanges. The BTC accumulation level reached a high last witnessed in 2015 when the asset was getting more mainstream attention. Ki Young Ju, CEO of CryptoQuant revealed the bullish metric on Twitter in the late hours of Monday.

“BTC accumulation level reached a 7-year high. Over 6-month-old Bitcoins now take 74% of the realized cap. It was 70% and 77% at the last bottoms in 2019 and 2015, respectively,” he said.

 

He highlighted the extreme difficulty in keeping one’s BTC unmoved in 6 months despite the current market turbulence. Most BTC investors have a strong will to achieve this, bespeaks bullish sentiments. In addition, the BTC Binary CDD metric reveals a low long-term holders’ movement.

As on-chain metrics reach massively bullish levels, BTC has solidified its position above the $19k support. The asset is changing hands at $19,845 as of press time, up 3.39% in the past 24 hours.

Despite seeing a dip on the second day of the month, BTC has managed to stand its ground above the support at $19k in October. As the asset reaches $20k, it aims to conquer the $ 19k zone comfortably. October has historically been one of the most bullish months for Bitcoin, so the community expects some relief rallies to regain the losses of previous months.

Former US Congressional Candidate Says “The More You Hate XRP, The Bigger The Army Grows”

Lele Jima
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0
Former US Congressional Candidate Says “The More You Hate XRP, The Bigger The Army Grows”

Gokhshtein Media Founder Slams XRP Trolls, Says Ripple Army Will Continue to Grow.



The leading media outlet founder is confident of Ripple’s growth despite criticisms.

David Gokhshtein, the founder of cryptocurrency company Gokhshtein Media and Former US Congressional Candidate, is confident about the growth of the Ripple (XRP) community regardless of critics’ hatred for the project.

“The more you toxic f’s hate on XRP, the bigger the army grows,” Gokhshtein said. 

Ethereum Supporters Troll Ripple Project

Contrary to what many expect, Ripple has not received much support from the cryptocurrency community in its ongoing lawsuit against the SEC.  

Some supporters of Ripple rivals, especially Ethereum, believe the Silicon Valley tech company should be left alone to face its legal battle against the SEC.

Vitalik Buterin, the co-founder of Ethereum, made this known in a recent tweet, saying that Ethereum enthusiasts have no obligation to back Ripple in the lawsuit.

For Buterin, Ripple lost its right to protection when it named Ethereum as Chinese-controlled in its legal battle with the SEC.

 

While the Ethereum community applauded Buterin’s comment, Ripple enthusiasts took to different social media platforms to slam him for making such a comment. 

Attorney John Deaton, the founder of Crypto Law, was among the Ripple enthusiasts who frowned at Buterin’s comment.  

“The more I think about the shameful and disgusting comment and considering you haven’t deleted or clarified it; I realize you didn’t misspeak. This was an immature, hateful comment directed at a community of innocent digital asset holders and NOT Ripple,” Deaton said.

Since 2017, Ripple and Ethereum have been close rivals, and the rivalry has continued even after the former was charged by the SEC for offering unregistered security in the U.S.

Despite all this, recently, Ripple got two companies, I-Remit and TapJets, support against SEC after Judge Analisa Torres overruled the SEC’s objection to a ruling by Judge Sarah Netburn requesting that the agency hand over documents related to the drafting of the controversial William Hinman speech in 2018.

Ripple also received chamber of digital commerce support, favoring the blockchain company standing firm in front of the SEC.

Shiba Inu Reveals “Canyon” Concept Artwork For SHIB Metaverse

Mark Brennan
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Shiba Inu Reveals “Canyon” Concept Artwork For SHIB Metaverse

Shiba Inu has shared the first concept of another hub in its metaverse project.


Shiba Inu has continued to release beautiful visuals of different sections of its metaverse. After releasing the concept artwork for Rocket Pond and WAGMI Temple, the canine-themed project has shared the first concept art for Canyon.

 

According to a blog post today, Shiba Inu sees concept art as an initiative that provides the strongest reference points that align the creative outlook and the hub being introduced.

Similar to the Rock Pond and WAGMI Temple artworks, the first concept of Canyon is depicted in black and white, communicating suggestions and feedback to express the hub’s role in the metaverse. 

“Black and white sketches and concept artwork include a strong, physical, and powerful potential, especially in abstract artwork. Amongst the architectural inspiration designs taken from many locations,” The teams behind Shiba Inu metaverse noted.

 

The early sketch of the Canyon got its inspiration from many locations in the United States, including Badlands in New Mexico, Grand Canyon in Arizona, Moab in Utah, Mesa Verde in Colorado, Lake Tahoe in Nevada, and Salt Flats in Utah. 

Additionally, the flora inspiration for the hub was gotten from Desert Wildflowers, Thick Leaf Penstemon, Indian Paintbrush, Desert Phlox, Arizona Thistle, etc.

Furthermore, the teams said they got the fauna inspiration depicted in the artwork from Roadrunner, Giant Centipedes, Wren, Raven, Tarantulas, Lizards, hawks, etc.

“The Canyon elevates the essence of earthy rivers, adventure, and breathtaking Scenery,” the announcement added. 

Meanwhile, the Shiba Inu team scheduled a fireside chat on the official Shibtoken Discord group on October 6, 2022, from 5 PM to 8 PM PST. 

Shiba Inu Committed to the Success of SHIB: The Metaverse

The development suggests that the team behind the development of SHIB: The Metaverse, Shiba Inu, and The Third Floor (TTF) are working relentlessly toward the project’s success. 

Aside from the release of the concept artworks of some hubs of the metaverse, the team has added professionals who will join in the mission of taking the project to greater heights.

Ripple Announced As Founding Partner Of First Ever Web 3 Carbon Credit Marketplace

Mark Brennan
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Ripple Announced As Founding Partner Of First Ever Web 3 Carbon Credit Marketplace

Ripple continues to see adoption, tapped as a founding partner of a blockchain-based carbon credit marketplace.



In a tweet on Monday, Ripple confirmed that it is one of the founding partners of Thallo, a Web 3 carbon credit marketplace based on the XRP Ledger.

It bears mentioning that Thallo is the first of its kind. As stated in the platform’s press release on Monday, Thallo will solve problems with liquidity and lack of transparency in pricing faced in the carbon credit marketplace. 

“As the demand for carbon credits intensifies, blockchain and crypto technology is uniquely positioned to help support market growth by solving persistent challenges around transparency, traceability, and verification,” said Senior Vice President, Social Impact and Sustainability at Ripple, Ken Weber. The Ripple executive asserted that by building on the XRP Ledger, Thallo would offer carbon credit access to institutional and retail investors.

The startup has 23 initial partners split into three groups; founding partners, integrity partners, and innovation partners.

It is worth noting that the voluntary carbon market was valued at about $2 billion in 2021. Experts expect this figure to rise to about $150 billion in the next eight years as companies of different sizes continue to set ambitious climate goals.

Layer 1 Adoption:

It bears mentioning that Ripple continues to see increased adoption as a Layer 1 and enterprise blockchain despite its legal woes in the US. The latest announcement comes less than a week after The Crypto Basic reported that French fashion house Balmain was launching an NFT membership platform on the network.

Ripple Vs. SEC:

Notably, the firm remains locked in a legal battle with the US Securities and Exchange Commission (SEC). However, many believe the end is near as both parties have filed motions for summary judgment. In addition, crypto enthusiasts remain hopeful for a Ripple victory. Less than a week ago, Judge Analisa Torres overruled the SEC’s objection to a ruling by Judge Sarah Netburn requesting that the agency hand over documents related to the drafting of the controversial William Hinman speech in 2018.

Meanwhile, two firms have decided to throw their weight behind Ripple, requesting an amicus brief supporting the payment-focused enterprise blockchain.

XRP Trading Volume:

Consequently, the demand for XRP, the network’s native token, has continued to rise. Notably, XRP’s 24-hour trading volume surged by an astounding 542% at the beginning of the month, according to CoinMarketCap data.

The token is currently trading at the $0.4574 price point, up 4.04% in the last 24 hours.

Kim Kardashian Hit With $1.2M Fine From the SEC for Promoting Shady Crypto

Albert Brown
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Kim Kardashian Hit With $1.2M Fine From the SEC for Promoting Shady Crypto

 

Kim Kardashian is witnessing a charge from the SEC to the tune of $1.2M for promoting Ether MAX tokens.


The United States Securities and Exchange Commission has remained persistent in its regulation by enforcement exercises. The American financial regulator has again diverted its attention to a prominent figure. American socialite Kim Kardashian is the latest to get caught in the watchdog’s net.

The SEC revealed its charge on the prominent businesswoman and Popular television personality through an official press release. Kardashian promoted EthereumMax tokens on Instagram via her official handle in June last year.

According to the press release, Kardashian’s act of promotion violated its securities laws in the area of anti-touting provisions, as she failed to disclose the amount she received as remuneration for the act. She is alleged to have received up to $250k for the promotional message.

Kardashian has already agreed to comply with the SEC’s demands without refuting the claims or conceding. These demands include cooperation with the agency as its investigation on the matter progresses and a fine of $1.26M. The fine involves the $260k received by Kardashian for the promotion and gains accrued and a $1M penalty for violating the securities law.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn’t mean that those investment products are right for all investors,” SEC Chair Gary Gensler said, speaking on the matter.

Gensler further noted that personalities attempting to promote these tokens should consider the investment risks involved and duly notify the public of the nature of the promotion. Gensler pointed out that securities laws demand that influencers disclose if they were paid for a promotion and how much they received.

Furthermore, Gurbir Grewal, Director of the Division of Enforcement at the SEC, sought to buttress Gensler’s point on the matter. “The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” he noted.

Grewal highlighted that investors witnessing any call for investments ought to be in the know regarding a critical point – whether the publicity is biased or not. According to Grewal, Kardashian omitted this information despite indicating that the post was an ad.

Recall that back in 2021; The Crypto Basic noted that Kardashian took to her Instagram page to promote a shady crypto project dubbed EthereumMax last year. Kardashian’s promotion of the token reached hundreds of millions of followers at the time despite its shady nature of not having sufficient background information. Furthermore, it was discovered that 30% of crypto owners were exposed to Kardashian’s ad – that translates to 3 out of 10 crypto proponents in 2021.

Kardashian was not the first to receive these charges from the SEC. Last month, the SEC filed a lawsuit against prominent crypto influencer Ian Balina for promoting failed crypto token SPRK in 2018.

Messari Founder Says SEC Should Focus On Bitcoin Spot ETF Rather Than Suing Investors

Mark Brennan
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Messari Founder Says SEC Should Focus On Bitcoin Spot ETF Rather Than Suing Investors

 

Selkis has taken shots at the SEC again.


Ryan Selkis, Co-founder and CEO of cryptocurrency market intelligence provider Messari, has blasted the Securities and Exchange Commission again for its refusal to approve a spot Bitcoin Exchange-Traded Fund (ETF). 

Selkis’ recent criticism comes after Gary Gensler, Chairman of the SEC, announced that the agency has charged famous American socialite Kim Kardashian for unlawfully “touting a cryptocurrency security.”

“Today, SECGov, we charged Kim Kardashian for unlawfully touting a crypto security. This case is a reminder that, when celebrities/influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors,” Gensler said.

Messari Founder Puts SEC on Blast

The development did not go well for the Messari founder, who asked the SEC boss when he would stop “stealing billions of dollars from investors and approve a spot Bitcoin ETF.”

This is not the first time Selkis has accused the SEC of being responsible for the losses investors have suffered due to the agency’s refusal to approve a spot Bitcoin ETF.

In August 2022, Selkis called out the Securities and Exchange Commission a fraud for not approving BTC spot ETF, causing investors losses worth $7 billion.

“$7B has been lost to the SEC’s fraud in failing to approve a spot ETF at the expense of Grayscale investors,” Selkis said.

SEC Rejecting Spot Bitcoin ETF Applications

It is common knowledge that the SEC has failed to approve a spot Bitcoin ETF in the United States despite the numerous applications the agency has received over the years. 

Grayscale Investments, a leading digital asset manager, is one of the companies that has made significant efforts toward launching the investment product. However, all efforts to get a spot Bitcoin ETF approved by the SEC have ended in futility for Grayscale and other companies.

The digital asset manager’s recent shot at a spot Bitcoin ETF was also turned down by the top U.S. security regulator, prompting the company to file a class action against the SEC.

Empowa to Use Cardano Stablecoin Djed As A Payment Option for Real Estate Development

Mark Brennan
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Empowa to Use Cardano Stablecoin Djed As A Payment Option for Real Estate Development

COTI announces another partnership to drive Cardano stablecoin adoption.



COTI, a DAG-based Layer 1 protocol specifically designed for enterprises, has announced another new partnership for Djed, the official stablecoin of Cardano.

 

According to a blog post today, Empowa, a RealFi blockchain project built on the Cardano network, is the latest firm to indicate interest in the stablecoin.

Following Empowa’s partnership with COTI, the company will add Djed as a payment method to facilitate funds transfer to local building partners.

Commenting on the development, Glen Jordan, Empowa CEO and Co-Founder, said:

“As a proud Cardano project, we are excited to see the ecosystem reach this significant milestone, the launch of a native stablecoin. We are eager to play our role in supporting broader adoption of the Djed stablecoin, especially across the African continent.” 

Empowa Offerings

It is noteworthy that Empowa makes it possible for local African developers to provide affordable lease-to-own alternatives for eco-homes to their clients. 

Through this system, tenants can own homes at the end of their lease periods, an initiative that will make quality housing affordable for everyone. Empowa is one of the companies pushing for the widespread adoption of blockchain in Africa, emphasizing Cardano-related offerings.

Notably, adding Cardano’s Djed as a means of payment to transfer funds to local building partners will take Empowa a step further toward actualizing this goal.

“This partnership, along with some of the previous ones we have announced, will ensure the proper utilization of Djed across the entire Cardano ecosystem and create an increased use-case for it across multiple platforms,” COTI said in a statement.

Djed Edges Closer to Mainnet Launch

Cardano’s official stablecoin has been making significant progress since the project was announced last year. COTI has inked several partnerships with top Cardano projects for Djed’s adoption. The teams building Djed – COTI and Input Output Global (IOG) – have completed the hard task of the algorithmic stablecoin’s development and have pushed it for audit.

Currently, the team is waiting for the audit report to see if the stablecoin has any technical glitches. As stated last week, Djed will be launched on the Cardano mainnet soon if everything runs smoothly.

Binance Burns 5.5 Billion Terra Classic In Its First Ever LUNC Burn

Albert Brown
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Binance Burns 5.5 Billion Terra Classic In Its First Ever LUNC Burn

Binance Burns 5.5B LUNC At Once.


 

Binance keeps its promise to the Terra community as it burns 5.5B terra classic (LUNC) tokens instantly.

Binance, the world’s largest exchange by trade volume, keeps to its decision to burn fees collected from LUNC spot and margin trades. Binance’s decision to effect the off-chain burn mechanism came amidst the community’s seemingly incessant agitation.

Due to its decision, Binance just Burns 5.5 billion Terra Classic tokens worth approximately $1.8M. The development was disclosed by a Twitter handle dedicated to tracking LUNC burn transactions.

“Burn alert! 5,595,907,838 LUNC ($1,899,923) burned to Luna Burn Wallet,” the handle noted, sharing a link to the transaction on the blockchain.

 

Since the identity of the entity behind the burn was not explicitly stated, the general consensus is that Binance initiated it due to the sheer nature of the transaction. Additionally, the burn coincides with when Binance noted that it would be burning all its LUNC trading fees.

Furthermore, a crypto pundit dedicated to updating the community on developments surrounding LUNC asserted that the transaction was from Binance.

“BREAKING NEWS : 5.5 BILLION LUNC has just been burned, We strongly believe this is the Binance   burn.“ he noted.

LUNC DAO writes:

Binance Confirmation:

After the community learned about the Terra classic burn, Binance officially confirmed that they had Burned 5.5B LUNC.

Critics:

Despite Binance’s commitment to ensuring it keeps to its promise, complaints have already surfaced. Some Terra proponents are not particularly satisfied with the amount of LUNC Binance burning in a week.

A particular pseudonymous crypto trader and the engineer took to Twitter to analyze the burn rate. According to him, Binance’s weekly burn rate is not quite encouraging, as it represents only 0.09% of LUNC’s current market capitalization.

“The binance burn the LUNC community was waiting for just happened. One week’s worth of fees collected by Binance burned. The value? A meager $1.8m, 0.09% of market cap,” Tree of Alpha remarked.

Fatman wrote:

“At the behest of the “LUNC army,” Binance just threw $1.8 million dollars into the burn address. This will have a 0.09% impact on supply reduction. Just think of how absurd this is. With that money, you could hire a dev team to build a suite of useful products/tools instead…”

The transaction represents the first batch of LUNC burn Binance is carrying out since it agreed to implement the off-chain tax burn by using trading fees.

As previously reported by The Crypto Basic, recall that Binance succumbed to the Terra community’s demands for the LUNC off-chain burns. The exchange disclosed its decision to burn trading fees from LUNC spot and margin trades in an official announcement on September 26.

According to the announcement, Binance will burn all fees gotten from LUNC spot and margin trades from the previous week on Monday at midnight (UTC) every week. The exchange also promised to update the community on the amount burned each week. Weekly burns official updates from Binance will come on Tuesday every week.

Innovative Solutions Boost DeFi Prospects As Frustrated Users Ditch Centralization

Andrew MacGill
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Innovative Solutions Boost DeFi Prospects As Frustrated Users Ditch Centralization

DeFi, standing for decentralized finance, is a market sector that arises from the intersection of blockchain and financial services. While this industry is fairly new, its total value has been growing consistently over the past several years. After hitting the impressive $1 billion mark in 2019, this value has soared to reach over $72 billion by February 2021. 

Towards the end of 2021, this value reached upwards of $170 billion dollars, demonstrating the boosted interest that this field is currently seeing. At its core, this industry is related to any financial system or application that relies on blockchain and, by extension, cryptocurrency.

The ‘Decentralized’ part of this phrase means that these systems do not have a connection to centralized systems, like banks or governments. Instead, they provide their own space where peer-to-peer transferring is much more common, not needing to be routed through a central space.

With this different approach to finance, DeFi instills a further level of anonymity and accessibility, as this system is open to absolutely everyone. While DeFi started with routes in cryptocurrencies like Ethereum, this system has expanded to encompass whole ecosystems, with cryptocurrency being only the beginning.

In this article, we’ll be taking a look at some of the main innovations that are currently at the forefront of DeFi, demonstrating how continual progression is pushing the bounds of this ecosystem further than what was ever thought possible.

What Innovations Are Pushing the Growth of DeFi?

DeFi is continually experiencing a wave of growth, with the total value of all assets increasing and the number of users that utilize one or more dApps skyrocketing. While one could consider the rising popularity of DeFi as aligning with the development of Web3.0, with more users seeking user-forward systems, there is actually more to the story.

There are several factors that are playing into the boom that DeFi is currently experiencing:

  • High Accessibility
  • The Development of Yield Farming
  • Infrastructural Developments

While each of these has a certain impact, Infrastructural innovations are contributing most to the rapid growth of DeFi. Let’s break these ideas down further.

High Accessibility

One of the factors, perhaps even the most important one, that is playing into the success of DeFi is the fact that it is accessible to absolutely everyone. As this factor continues to become integral to the operation of DeFi, more and more users are turning to DeFi solutions to house their regular finance.

While centralized financial systems often require a range of documents to access (a permanent address, for example), DeFi systems are accessible to absolutely anyone with a smartphone. Considering that 83.72% of the world’s population own a smartphone, the extent of this access is moving to a never-before-seen level. 

As anyone can start using DeFi systems, no matter who they are or where they are in the world, this blockchain technology ensures that accessibility will never become a barrier to entry like it often is within centralized systems. Especially in countries like Venezuela where accessing banking institutions and exchanging money is difficult, DeFi has become incredibly popular.

The Development of Yield Farming

Within dApps and blockchain systems, users can add any proof-of-stake cryptocurrency that they own into staking pools. For those that aren’t familiar, proof-of-stake is a consensus mechanism where every single transaction is verified and processed into a data block on the blockchain.

By providing cryptocurrency to these liquidity pools, users are actively providing the power behind this proof-of-stake mechanism. Due to their helping hand, DeFi systems reward the user with an annual yield, with high percentages offered when users keep their funds in the pool for 30, 60, 90, 180, or 360 days. 

Especially considering that the U.K. just hit the highest inflation rate in 30 years at 6.2%, and the U.S. has already eclipsed this at 7.9%, people are looking for inventive ways that they can start to save money. As they’re losing money at a historically unparalleled rate when money just sits in their banks, users are seeking new methods of gaining interest on their funds.

With incredibly high yields for staking in liquidity pools, DeFi has positioned itself as the answer to these problems. As financial crises around the world continue to rage on, DeFi acts as a soothing solution that helps people take back control of their money.

What’s more, considering that yield farming is a passive pursuit, people are able to convert their cryptocurrency into a stream of passive income. 

Infrastructural Developments

Alongside fundamental mechanisms which continually demonstrate the value of DeFi to the general investor, these systems are continually innovating and reinventing themselves in order to provide new benefits.

One of these said systems, DeFiChain, which is a decentralized proof-of-stake blockchain, is seeking to take what DeFi can do one step further. One common pitfall of DeFi that investors looking for diverse investment options encounter is an inability to easily invest in stocks.

The typical pathway for someone to invest in stocks from DeFi would be:

  • Transfer cryptocurrency from your DeFi wallet to a global exchange.
  • Exchange this cryptocurrency into a fiat currency.
  • Withdraw the fiat currency from the exchange and into your bank account.
  • Send the money from your bank account to a stock brokerage platform.
  • Invest in your stocks of choice.

Not only is this process arduous, but it can easily take two or three whole days before you’re able to invest in a stock. At that point, the price you were tempted by will have long been lost. 

To fill in this point of frustration within DeFi systems, DeFiChain has created a system where users are able to buy tokens that mimic the value of stocks using cryptocurrency directly from their platform.

Instead of having to move money about and get wallets involved, all you have to do is select a stock and buy it directly with a cryptocurrency conversion, making this a one-step process instead of a multi-step ordeal. By buying decentralized tokens that mirror the price of commodities, stocks, and indices, DeFiChain has successfully made investment opportunities that were once beyond the reach of DeFi a working reality of their blockchain platform.

With DeFiChain, users are able to create a diverse investment portfolio from one location, creating a financial investing system that suits the needs of every investor. What’s more, any dTokens that the user has associated with their account can then also be put towards liquidity mining, allowing them to get even more rewards on their investments. 

Innovations like these further demonstrate that DeFi is not just a trend; it’s an established system that millions of people around the globe are turning to. As more features are added to the DeFi ecosystem, the appeal will only grow stronger.

Final Thoughts

Growing continuously since 2017, DeFi is an impressive system that’s set to radically change how the financial world operates. Moving away from web 2.0 financial systems that often hinder the user, DeFi represents a step into web 3.0, where users have more power over their own finances.

Due to the advanced infrastructure of the blockchain, DeFi is seeing millions of users around the globe flocking to its platforms. As further innovations, like DeFiChain, are established and the possible utility of DeFi increases, we’ll only see further growth of this system.

Only time will tell if DeFi is effective enough to completely topple the commercial hold that centralized systems have on modern banking. But, with current progress, things are looking positive for DeFi.

SEC Chair Gensler Says Law For Crypto Is Clear, Most Tokens are Securities

Albert Brown
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0
SEC Chair Gensler Says Law For Crypto Is Clear, Most Tokens are Securities

SEC Chair Gary Gensler believes most crypto tokens promoted in the investment space are securities.


The U.S. Securities and Exchange Commission is well-known for its practice of enforcement regulation actions in the cryptocurrency industry. These actions persist because the American Congress has difficulty categorically classifying crypto tokens as either securities or commodities.

Certain renowned media personalities have been contacted by crypto projects to promote their newly-launched assets in the past. SEC Chair Gensler noted that most of these tokens are, in fact, securities, implying that they can be regulated using securities laws.

“The law is clear on this. I believe, based on the facts and circumstances, most of these tokens are securities. When a group of entrepreneurs is raising money from the public, and they’re anticipating a profit, they need disclosure.” Gensler said.

 

Gensler made these comments while speaking on a Squawk Box episode Monday. The SEC recently charged prominent media personality Kim Kardashian for promoting EthereumMax tokens (EMAX). According to the charge, the regulatory watchdog highlighted Kardashian’s omission of the remuneration she received from the EthereumMax team for the promotion.

Kardashian received $250k for the promotional message. Consequently, the SEC has demanded $1.26M, which she has agreed to pay. The $1.26M charge includes the $260k the American businesswoman received for promoting EMAX and $1M in penalties.

As reported by The Crypto Basic, Kim Kardashian started Promoting Ethereum MAX in June 2021. On September 7, 2021, the Chairman Of The UK Financial Conduct Authority (FCA) Criticized Kim Kardashian For Promoting Anonymous Crypto Tokens.

Gensler’s remarks also answer top crypto personalities like Ripple CEO and others, who consistently say that the US is behind in crypto from other countries as there are no clear digital-ass laws.

Recall that Gensler previously agreed to allow the CFTC to assume oversight of cryptocurrency tokens. Notwithstanding, the SEC Chair noted that his support would only come if his agency is allowed to regulate crypto tokens it classifies as securities.

CFTC, on the other hand, said that the US has 70 Year Old Case-law to Determine What’s Security or a Commodity.

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