The crypto analyst and the host of Coin Bureau may be changing his mind about the Dogecoin (DOGE) copycat, Shiba Inu (SHIB).
In a new strategy session dedicated only to Shiba Inu, the Coin Bureau host known as the Guy says that since Coinbase decided to list SHIB, he’s started to pay closer attention to the asset.
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“Shiba Inu is one of the cryptos in this category, and it’s one that I’ve only ever mentioned in a negative context. But when I heard that Coinbase will be listing SHIB, however, I began to consider the possibility that there might be more to Shiba Inu than meets the eye.”
Shiba Inu, in part thanks to the tweets of Tesla CEO Elon Musk, has skyrocketed by 47,387,400% after trading at $0.00000000008 on January 1st to an all-time high of $0.00003791 on May 10th before crashing back down, according to CoinGecko.
The analyst suggests that SHIB may have close ties to the Ethereum ecosystem. Unlike Dogecoin, Shiba Inu could have a serious development team, and its creator Ryoshi is a big name in the crypto space.
“Where Shiba Inu and Dogecoin differ are the connections they have to the crypto community. DOGE is really just a meme and nothing more… By contrast, SHIB is close to becoming a big player in Ethereum’s ecosystem by overcoming the shortcomings of Dogecoin. As community-driven as Shiba Inu is, there definitely seem to be some seriously prolific people behind the project.“
The Coin Bureau host says that while he is not fully sold on the project, he does admire that the meme currency is attempting to benefit all holders, not just those that got into the project early.
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Featured Image: Shutterstock/Quardia/Alexander_Evgenyevich
Coinbase executives continue to move among the big names in the financial landscape. This month, it was the turn of none other than U.S. Federal Reserve Chairman Jerome Powell.
According to Powell’s working schedule for May, the head of the Fed had a face-to-face meeting with the head of the cryptocurrency exchange Coinbase Global Inc. on May 11.
Paul Ryan, a former Speaker of the U.S. House of Representatives, was also invited to the event.
The meeting lasted half an hour, and no further details about what topics were discussed, nor who led the discussion, are being disclosed. Bloomberg attempted to contact the Fed and Coinbase, but neither party would comment.
Coinbase and the American Crypto Scene
Coinbase has been playing in the political big leagues for some time. In fact, its former Chief Legal Officer, Brian Brooks, was appointed by former U.S. President Donald Trump’s administration as Comptroller of the currency. After Joe Biden came to power, Brooks left his position and became CEO of Binance US.
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During Brooks’ tenure, great strides were made to facilitate business for several cryptocurrency companies, especially licensing.
Likewise, a more welcoming eye from the authorities and the recent cryptocurrency boom have led Coinbase to expand, increasing the number of tokens supported as well as the services offered to individual and institutional customers.
Coinbase’s direct listing has also given the industry quite a bit of legitimacy, even though Coinbase was already a benchmark for what a cryptocurrency business should be in the United States.
The Road To a Digital Dollar
Jerome Powell is not exactly what you would call a pro-cryptocurrency character. In fact, he has criticized their volatile nature on several occasions and the fact that their technology detracts from the state’s ability to exercise supervisory control.
In a recent webinar sponsored by the Bank of International Settlements, Powell bashed on Bitcoin and denied that it could compete against the dollar despite the blows to the U.S. economy.
“Crypto assets are highly volatile – see Bitcoin – and therefore not really useful as a store of value. They’re not backed by anything. They’re more of an asset for speculation … It is essentially a substitute for gold rather than the dollar.”
But despite his aversion to cryptocurrencies, Powell recognizes the potential a digital dollar could have for the U.S. economy. The US CBDC is still in its infancy. Still, the U.S. wants to pick up the pace to avoid a potential loss of geopolitical power in the wake of China’s advances.
And just a day after he met with Coinbase, Powell had a video conference with Chris Giancarlo of the Digital Dollar Project to likely discuss issues related to the US CBDC. The meeting continued the next day.
Maybe the U.S. doesn’t want to compete with El Salvador to become a pro-bitcoin country, but it could be warming up to be the first global power with a CBDC.
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The co-founder of the crypto derivatives exchange Hxro says he’s accumulating several crypto assets during the market downturn.
In a new episode of Delta-Fi, Rob Levy says he’s not concerned about nailing the exact bottom of the crypto correction.
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As the markets search for direction, Levy says he’s accumulating Bitcoin, Ethereum, the relatively new smart contract network Solana (SOL), as well as FTX Token (FTT), the native token of the crypto exchange FTX.
“I want to own the stuff that’s going to best perform. And I’m going to keep adding to it…
I was happy to add to Bitcoin at $45,000… It’s such a longer game to me. You don’t want to get washed out by the noise. What do I think is going to be around? I think Ethereum, people are just getting hip to it…
We’re still at that stage where people are getting in… I’m adding to my key positions. Bitcoin Ethereum, Solana, FTT I think is an absolute no brainer.”
Levy says FTT, in particular, may scare some people since its price remains 20 times higher than it was during the last bear market, even after the large dip.
“Let’s talk about FTT. Let’s say it’s $27, so it’s 20 times higher than where you were buying it. What has their user number done? What has their volume done? Their burns have grown by 100x. If all of that is up more, then it makes me feel better. It’s a different product.”
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The crypto derivatives exchange executive cautions that Bitcoin and the market as a whole could still move much lower.
“We could easily go down to $20,000 again. You can protect yourself. You don’t have to be all in all the time. Being all in in spot coin, that technically shouldn’t hurt you unless you have to sell for liquidity.
One Bitcoin is one Bitcoin. If you think it’s going to be way higher in the future and you don’t have to sell it, there’s no problem there.”
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The financial specialist and professor at the New York University – Aswath Damodaran – criticized bitcoin in a recent speech. In his opinion, the primary digital asset “failed miserably” and did not prove itself as a good currency.
Gold and BTC Are Not The Same
The prominent Indian professor – Aswath Damodaran – shared his point of view on bitcoin in the most recent episode of Moneycontrol Masterclass. He asserted that the largest cryptocurrency has failed to classify as a good currency because people disregard it as a payment method for daily and household purchases:
“A good currency, in my view, is one that [is] used to buy coffee, buy your house, buy a car, and on that count, bitcoin has failed, and not just failed, it’s failed miserably.”
Damodaran, also known as “the Dean of Valuation,” believes that crypto enthusiasts ignore bitcoin’s disadvantages only because they have made a lot of money from it.
Speaking about the correlation between gold and the digital asset, the Indian opined that the yellow metal is the true store of value because it holds its price during financial catastrophes. He reminded that this is not the case with bitcoin, whose volatile nature makes it a highly risky investment tool:
“Gold’s biggest claim to fame is that when stocks collapse, gold holds its value. If I use the same test on bitcoin and I look at 2020, bitcoin didn’t behave like a collectible. It behaved like a very risky stock. Put simply, if I add bitcoin to a portfolio of stocks, I’m just adding something that makes my portfolio even more volatile.”
Aswath Damodaran. Source: Acuity Magazine
Did BTC Really Disappoint That Much?
And while many critics questioned bitcoin’s merit due to its volatile fiat currency price, MicroStrategy’s CEO – Michael Saylor – asserted that it is a better hedge than gold during these uncertain economic times of increasing inflation. He went further, stating that it outperforms the yellow metal by 50 times:
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“I think in the past 12 months, we have all been waiting for inflation, and I think we are seeing it now. I think investors are seeing that bitcoin is up by 330% and gold is up 7% in that period. So, bitcoin is outperforming gold as an inflation hedge by a factor of 50.”
Known as one of the biggest BTC maximalists, Saylor highlighted the cryptocurrency’s merit not only over gold but over all other investment instruments.
Featured Image Courtesy of EconomicTimes
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The financial specialist and professor at the New York University – Aswath Damodaran – criticized bitcoin in a recent speech. In his opinion, the primary digital asset “failed miserably” and did not prove itself as a good currency.
Gold and BTC Are Not The Same
The prominent Indian professor – Aswath Damodaran – shared his point of view on bitcoin in the most recent episode of Moneycontrol Masterclass. He asserted that the largest cryptocurrency has failed to classify as a good currency because people disregard it as a payment method for daily and household purchases:
“A good currency, in my view, is one that [is] used to buy coffee, buy your house, buy a car, and on that count, bitcoin has failed, and not just failed, it’s failed miserably.”
Damodaran, also known as “the Dean of Valuation,” believes that crypto enthusiasts ignore bitcoin’s disadvantages only because they have made a lot of money from it.
Speaking about the correlation between gold and the digital asset, the Indian opined that the yellow metal is the true store of value because it holds its price during financial catastrophes. He reminded that this is not the case with bitcoin, whose volatile nature makes it a highly risky investment tool:
“Gold’s biggest claim to fame is that when stocks collapse, gold holds its value. If I use the same test on bitcoin and I look at 2020, bitcoin didn’t behave like a collectible. It behaved like a very risky stock. Put simply, if I add bitcoin to a portfolio of stocks, I’m just adding something that makes my portfolio even more volatile.”
Aswath Damodaran. Source: Acuity Magazine
Did BTC Really Disappoint That Much?
And while many critics questioned bitcoin’s merit due to its volatile fiat currency price, MicroStrategy’s CEO – Michael Saylor – asserted that it is a better hedge than gold during these uncertain economic times of increasing inflation. He went further, stating that it outperforms the yellow metal by 50 times:
ADVERTISEMENT
“I think in the past 12 months, we have all been waiting for inflation, and I think we are seeing it now. I think investors are seeing that bitcoin is up by 330% and gold is up 7% in that period. So, bitcoin is outperforming gold as an inflation hedge by a factor of 50.”
Known as one of the biggest BTC maximalists, Saylor highlighted the cryptocurrency’s merit not only over gold but over all other investment instruments.
Featured Image Courtesy of EconomicTimes
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Binance says its crypto crowdfunding platforms have earned crypto holders significant gains since their inception.
The exchange says Binance Launchpad and Binance Launchpool initially distributed a total of $143 million worth of tokens to crypto holders.
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All told, those crypto assets are now worth a total of $934 million, marking 553% worth of gains.
Since 2019, Binance Launchpad, the crypto exchange’s token launch platform, distributed $57.80 million worth of crypto assets from 23 projects, which are now worth $725.20 million, representing 1,154% returns.
Looking at Binance Launchpool, the crypto exchange’s staking protocol which was introduced in September 2020, the platform distributed $85.30 million worth of crypto assets across 17 projects.
According to Binance, those tokens now have a collective valuation of $209.80 million, marking an increase of 145% in less than a year.
Binance also reports that as of June 25th, the best performing Launchpad tokens have been layer 2 scaling solution Polygon (MATIC), scalable blockchain Elrond (EGLD), crypto exchange WazirX (WRX), Axie Infinity game token AXS and decentralized derivatives protocol Injective (INJ).
Source: Binance
As for Launchpool tokens, the highest performing coins as of June 25th are virtual reality game My Neighbor Alice (ALICE), cross-chain decentralized finance (DeFi) platform Alpha Finance (ALPHA), cross-chain liquidity protocol Reef Finance (REEF), decentralized verification protocol Litentry (LIT) and DeFi tool suite Unifi Protocol DAO (UNFI).
Source: Binance
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/REDPIXEL.PL/Thanapipat Kulmuangdoan
A UK-based charity has received more than $130,000 worth of crypto donations in the last 12 months alone.
Using Crypto for a Noble Cause
Newcastle, UK-based charity, the Children’s Heart Unit Fund (CHUF) recently stated it had received north of $130,000 in crypto donations since it launched the initiative almost a year ago.
The charity, one of the few in the UK that receives donations in the form of digital assets such as bitcoin (BTC), ether (ETH), and others, recently received a donation of more than $95,000 which is considered to be the largest single crypto donation made to a UK charity ever.
Commenting on the high in-flow of crypto donations, Charlotte Campbell, Head of Fundraising, CHUF, said:
“As a small charity you have to be brave when it comes to fundraising, now more than ever. After a lot of research we decided to partner with The Giving Block, a platform which allows us to accept cryptocurrency donations safely and easily.”
Adding:
“Its been quite a journey since we first started the process to seeing donations of £10,000, £20,000 even £70,000 come through – as a fundraiser that will always be incredibly exciting. We are beyond grateful to the generous donors who have made it possible for CHUF to continue to bring smiles to the faces of Heart Heroes across the UK.”
Notably, the significant crypto donations were made via The Giving Block, a popular platform that is committed to bridging the gap between crypto donations and humanitarian causes. At present, CHUF is one of the only two charities in the UK that accepts donations in cryptocurrencies.
Cryptocurrencies’ Role in Raising Donations
Digital assets are well-suited for donations courtesy of their instant transactions, traceability, and immutability. Blockchain technology’s characteristics make digital currencies an ideal fit for donations as is evident from several recent real-world examples.
One of the most talked-about examples is the recent mammoth donation made by Ethereum co-founder Vitalik Buterin.
On May 13, BTCManager reported that Buterin had donated more than $1 billion worth of SHIB tokens to India Covid Relief Fund started by Polygon (MATIC) co-founder Sandeep Nailwal.
A popular crypto trader and analyst says he plans to scale out of Bitcoin once BTC hits a certain level.
Kaleo, a trader who has amassed a large following in the current market cycle, tells his 329,900 Twitter followers that Bitcoin will likely surge more than 520% from its current value of $34,658 by the end of the year.
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“Still think it tops out w/ a nice wick around $185,000 – $215,000, but my goal isn’t to snipe the top.”
Amid his mega bullish outlook for the leading cryptocurrency, Kaleo says he will start selling once Bitcoin breaks below his price target.
“Basically, my game plan is to be uber bullish until Bitcoin breaks above $150,000. I’ll start exiting there and flip uber bearish when it breaks back below $150,000.”
Although Bitcoin continues to trade sideways between $30,000 and $40,000 while sentiment remains largely bearish, the crypto strategist posits that BTC is correlated with the tech industry. By comparing the price of Bitcoin to the NASDAQ 100, he predicts that the king crypto will eventually catch up to the tech industry’s rapid expansion in the last two months.
“Bitcoin vs. Tech.
Most of you will be too lazy to read this, but for those who aren’t I think you’ll find some useful data.
Pay attention to the two red boxes.
Bitcoin will catch up and close the gap to the growth we’ve seen in tech, and when it does, it’ll happen rapidly.”
Source: Kaleo/Twitter
According to Kaleo’s chart, the tech industry has been a reliable indicator of Bitcoin’s future price action since the coronavirus-induced sell-off in March 2020. He also predicted that the leading cryptocurrency will significantly outpace the tech industry once the next leg of the bull market resumes.
“When they realize the market is bubbling out of control (aka tech bubble 2.0 narrative). Bitcoin will catch up to tech, and once again will outpace it at the peak of the madness.”
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Ether’s (ETH) $230 million options expiry on Friday appears to have shifted market sentiment in favor of the bulls, at least momentarily, as investors remain cautiously optimistic about the upcoming London hard fork and the prospect that Bitcoin (BTC) has established a firm bottom.
ETH price update
ETH rose more than 6.5% to $2,370 on Sunday, the highest in over two weeks, according to Cointelegraph Markets Pro. Weekend trade volumes remained characteristically low at just over $18 billion.
Ether’s price sees renewed upside on Sunday. Source: Cointelegraph Markets Pro
At current values, Ether has a total market capitalization of $274.8 billion.
The DeFi market, which is largely built on top of Ethereum, saw cumulative gains of 9% on Sunday. The total market value of DeFi coins is $67.3 billion, according to Coingecko data.
Meanwhile, Bitcoin’s price crossed $35,600, having gained 2.6%.
The battle between the bulls and the bears was on display in the options market last month, with both camps expecting extreme price fluctuations for Ether leading into the options expiry on Friday. As Cointelegraph reported, the $2,200 price level is where the bulls start to increase their lead, as evidenced by the ratio of call options to put options.
London hard fork looms
Ethereum’s London hard fork, which contains the highly anticipated EIP 1559, launched on the Ropsten testnet on June 24, setting the stage for full mainnet implementation later in July.
The hard fork is anticipated to have a positive impact on Ether’s value thanks to several proposal upgrades, including the transition to the eco-friendly proof-of-stake consensus and a new “scarcity” feature that will reduce the number of tokens in circulation.
Related:A London tour guide: What the EIP-1559 hard fork promises for Ethereum
Analysts expect investors to increase their exposure to ETH leading into the hard fork. On-chain data suggests this is already happening as Ethereum registered over 750,000 active addresses last week, exceeding Bitcoin by a considerable margin.
Analytics firm Santiment, which provided the data, described the active-address flippening as “historic.”
On a day that saw history be made with #Ethereum surpassing #Bitcoin in daily active addresses for the first time, #altcoins came to play. $KSM, $COMP, and $ZIL were among many projects to make an imprint on the markets, while $BTC ranged around $34.5k. https://t.co/cwjGvrLLeX pic.twitter.com/3AFQ0MHbcT
Balancer is one of the pioneers in the DeFi space and a core building block of its infrastructure. The protocol allows for efficient trading by pooling crowdsourced liquidity from investor portfolios while also identifying the best available price.
Data from Token Terminal reveals the growth of the platform in terms of total value locked over the past year.
Balancer Chart. Source: Token Terminal
Before the most recent market-wide slump, which took place in May, Balancer had peaked at over $360 billion in TVL, a 450% increase in just 5 months, since January 2021.
This also came as a result of massively increased user participation in the broader DeFi market, where a lot of protocols experienced a surge in their user base and other metrics.
During Bitcoin 2021 in Miami, CryptoPotato had the chance to speak with Jeremy Musighi – the Head of Growth at Balancer. We discussed the past, present, and the future of DeFi and Balancer, as well as other interesting and important topics for the industry.
2021 Bull Run: Bitcoin Has Always Led the Crypto Markets
DeFi saw massive growth in 2021. At one point, the total value locked in various protocols across the industry peaked at over $80 billion – up 4 times from January alone.
We asked Musighi whether he thinks the overall bull market was the primary reason behind it or if it was kind of an organic transition.
“I think that markets recognize how impactful DeFi is going to be and that it’s here to stay and I think it brought further awareness and education about how DeFi is prime to replace a lot of traditional financial services and products that we have.”
Musighi thinks that the above is part of the reason behind the bull, rather than the opposite. However, Musighi also recognizes it as a cycle.
“Investors recognize the opportunity here (in DeFi) and pour a lot of capital into it because they know how much it’s going to grow. That is one of the things propelling the bull market.
At the same time, the bull market and prices increase, bringing in more attention from other outsiders and other people who have not been involved and they get involved as well.”
Yet, he believes that Bitcoin has always led the crypto markets and that it “always behaves in a way where investors tend to rotate their investments from one vertical into another.”
Balancer’s head of growth also said that “Bitcoin is still used as the primary reserve asset in crypto.”
Jeremy Musighi, Balancer’s Head of Growth
Balancer: ‘The Most Customizable AMM’
Another thing that we were curious about is the reason for which Balancer lags behind other protocols such as Uniswap in terms of TVL.
Musighi told us that there are multiple factors that go into a product-market fit and traction for a DeFi protocol.
“One thing that’s clear about Balancer is that it has some of the best tech in the space and it’s also the most flexible and customizable Automated Market Maker (AMM) that there is. Balancer is DeFi-primitive in that it’s so flexible that it can be used in so many ways that it’s almost like a general purpose technology.”
However, there’s also a flip side to that – marketing. In its short history, the protocol has been run almost exclusively by “brilliant technical talent,” but Balancer didn’t have a lot of marketing people – “in fact, for a long time, we didn’t have any.”
This is where the project has a lot of room to grow and where the team is putting a lot of their focus now. According to Musighi, this is one of the factors that will help Balancer grow.
But there’s even more: Musighi asserted that both Balancer Labs and the community had learned a lot from Balancer V1 being used “in the wild and growing as much as it did.”
According to him, this has led to the successful release of V2, which brings major improvements on areas such as gas efficiency, UX, and features that solve important needs in the market and stand out as an ideal solution for a lot of the reasons why you would use an AMM both as a liquidity provider, as a trader, and as a developer.
Meanwhile, he also pointed out that, for security reasons, the liquidity from Balancer V1 to V2 is being transitioned gradually and will take between 6 to 8 weeks to complete.
Binance Smart Chain (BSC) or Ethereum
Many of the decentralized AMMs like Balancer and greatest competitors Uniswap and Sushiswap are somewhat reliant on the blockchain they’re built on.
Ethereum, being the one that is most commonly used, was seen suffering from network congestion which had the fees skyrocket and the transactions slow down. A proposed solution that’s currently being worked on is Ethereum 2.0, when we will potentially see the transition from a PoW-based consensus algorithm to a PoS one.
“I’m very optimistic about it – it’s really important. We have high confidence that Ethereum 2.0 will deliver. In the meantime, we always want to cater to the best interests of our users right now, not only in the future.”
In other words, Musighi said that there are other scaling options – like layer two solutions, Ethereum side-chains, and even other layer ones and even adopting a more cross-chain compatible strategy. It’s also worth noting that Balancer has also launched on Polygon (a layer two solution) in aims of reducing the high gas fees.
“Those are the things that we’re thinking deeply about right now and very thoughtfully because we want to understand where we feel the future might go and how we can cater to the needs of the market in the best way possible.”
Elsewhere, we also discussed one of the hottest trends of 2021 – Binance Smart Chain (BSC). Musighi doesn’t see it as a competitor to Ethereum – on the contrary, “it has actually helped reduce congestion on Ethereum by offloading some transaction volume from the main chain.”
He said that the future and the long run would favor “the most open and decentralized solutions,” hence why other more centralized blockchains can’t compete with the bigger picture.
“If they did, they would see a massive migration of users, projects, liquidity, and volume off of Ethereum that hasn’t been happening. And that should tell you that even with its flaws and even with the areas that it needs to grow, it’s still offering so much value.”
A Crunch for Talent in DeFi
Jeremy believes that DeFi absolutely is the future of finance.
“I think there’s less and less doubt about that idea in society in general today, which is of course, one of the reasons why we’ve been seeing these big bull runs.”
When asked about its biggest challenge, though, he said that one of them is “bringing different diversification of talent into the industry, making DeFi products more holistically accessible, and more holistically sound.”
“I think one of the challenges that DeFi faces today is that there’s a crunch for talent because there are not enough people out there who are deeply familiar with crypto, but also have non-technical skills or even technical skills, all skills, from engineering to design, to marketing and branding and so on.”
He also talked about the competition between DeFi and CeFi (centralized finance), admitting that CeFi “players have a lot of customers – they own those customer relationships.” Another is the front end touch-point with users who use digital financial services.
However, this presents a huge opportunity for DeFi protocols, which can be seamlessly integrated in the back-end as they clearly have the technical advantage, but “the disadvantage of user experience design, user acquisition, and mass market adoption.”
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