The 2nd US Circuit Court of Appeals has upheld a ruling that compels blockchain startup Terraform Labs, and its co-founder Do Kwon into complying with a September 2021 Subpoena served him at a New York Conference.
Against initial perception, the subpoena is unrelated to the collapse of the startups’ tokens, including the UST algorithmic stablecoin and Luna Classic (LUNC) tokens. It is, however, related to one of Kwon’s early projects, the Mirror Protocol, which lets users mint synthetic asset that tracks the price of US Securities like Tesla and Apple stock amongst others.
Do Kwon and his lawyers had argued at the time that the Securities and Exchange Commission (SEC) has no jurisdiction over it. Still, the latest ruling by a US Federal Judge affirmed that the regulator has the authority to serve the subpoena, thus invalidating Terraform Labs’ arguments.
“Appellants’ reading of the Rules is contrary to the text and would produce absurd results by allowing a party to insist on service through counsel, but allow the party to block said service by not authorizing their counsel to receive any filings,” the appeals court wrote in its decision.
Part of its basis for declaring that the SEC has the proper jurisdiction is centred on the fact that Kwon’s Mirror protocol which is now unable to function properly with the collapse of UST, is often offered to US investors. The court also highlighted facts in which Terraform Labs paid a US-based exchange platform the sum of $200,000 in order to list the synthetic tokens for trading.
The order to comply with the SEC’s subpoena comes off asone of the many legal woes Do Kwon and his Terraform Labs team are facing at the moment. The collapse of the platform’s associated tokens showed how vulnerable the startup is, and things are not looking better, even though the startup has launched Terra 2.0 after receiving majority backing from the community.
The SEC was rumored to have served a speaker at Messari’s Mainnet conference with a subpoena last month. Now, it’s been confirmed that Terra’s Do Kwon was the recipient.
The SEC has primarily taken issue with Terraform Labs’ Mirror Protocol, a DeFi platform for minting synthetic assets on Terra.
Kwon and Terraform Labs are now suing the SEC over the subpoenas.
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Do Kwon is suing the Securities and Exchange Commission over the subpoenas.
Do Kwon Hits Back at SEC Over Subpoenas
Terraform Labs CEO and founder Do Kwon is suing the Securities and Exchange Commission.
Court filings show that Kwon and Terraform Labs are fighting back at the U.S. regulator after Kwon was served with two subpoenas last month. The lawsuit challenges two subpoenas that were “improperly issued and served by the SEC and the SEC’s failure to keep confidential an investigation into the “Mirror Protocol.””
The lawsuit references an incident at Messari’s Mainnet conference, which took place in New York in September. During the conference, rumors began circulating that the SEC had served a speaker with a subpoena after Indiegogo founder Slava Rubin posted a tweet appearing to confirm that he had witnessed the event. Messari founder Ryan Selkis later posted a similar tweet corroborating the story.
If you’re wondering when I actually decided to run for Senate, it was when these fuckers came to my event, didn’t buy a ticket, and served one of the speakers a subpoena.
Enough talk.
More war on our out of control regulatory state.
— Ryan Selkis (@twobitidiot) September 20, 2021
Though Kwon was rumored to be the recipient, he later denied he’d been approached at the event in an interview with The Defiant.
Kwon and Terraform Labs are best known for creating Terra, the stablecoin-focused blockchain powered by the LUNA token. LUNA has a market cap of $17.1 billion, making Terra the eleventh-largest cryptocurrency project. Although stablecoins have been a point of focus for many regulators in recent months, the SEC appears to be more interested in Terraform Labs’ Mirror Protocol, a DeFi project that lets users mint synthetic versions of stocks like Tesla and Apple. As U.S. users can mint Mirror’s synthetics, they could technically be classed as securities, the SEC claims. Terraform Labs has not yet registered any assets with the SEC.
The lawsuit filed Friday notes that the SEC contacted Kwon over Mirror Protocol back in May 2021, before Kwon was interviewed for five hours the following month. The filings note that the SEC attorneys then advised Terraform Labs that “enforcement action was warranted” on Sep. 15, 2021. Kwon was served with the subpoenas at Mainnet five days later.
Kwon’s lawsuit contests the SEC’s request for him to provide testimony to U.S. regulators, arguing that he is a resident of South Korea. It also takes issue with the way the subpoenas were served: SEC rules state that investigations should be confidential, but the agency hired a group called the Cavalier Courier & Process Service to serve him the subpoenas at the event. A note in the lawsuit reads:
“Hiring a “Cavalier” process to approach Mr. Kwon in public, and announce the purpose of his approach, at a summit attended by more than 2,000 people was, at worst, an intentionally brazen display meant to publicly intimidate and embarrass, and at best reckless, creating social media and press speculation about the incident within minutes of the attempted service of process.”
Do Kwon did not immediately respond to Crypto Briefing’s request for comment.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Uniswap (UNI) was among the best performers among the top cryptocurrency tokens by market capitalization in the previous 24 hours, logging better gains than other top cryptocurrencies, namely Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB).
On Wednesday, the UNI/USD exchange rate jumped 13.26% to hit a seven-day high of $25.68. Traders continued to bid higher on the pair entering Wednesday, pushing its value higher to $26.07 at one point, up more than 15% from the previous session’s open of $22.66.
Market-wide recovery behind UNI gains?
The majority of UNI’s gains in the previous 24 hours seems to have surfaced in the wake of a market-wide recovery.
For instance, the said timeframe witnessed Bitcoin, the benchmark cryptocurrency that enjoys heavy influence on the rest of the crypto tokens, climbed above $47,000 following a 4.85% upside move on Tuesday. Meanwhile, Ethereum saw its native asset, ETH, rallying toward $3,500 in a 4.57% price jump.
Elsewhere in the crypto market, BNB, XRP, Dogecoin (DOGE), Terra (LUNA) and Chainlink’s LINK also rose. In contrast, smart contracts platform Solana’s native asset, SOL, fell 6.47% following a denial-of-service disruption on its network.
At the same time, Cardano (ADA), one of Solana’s top rivals, dropped by more than 1%.
The performance of the top 15 cryptocurrencies in the past 24 hours. Source: TradingView
At first, the gains among the top tokens, including Uniswap, looked to have been helped by capital rotations out of SOL and ADA markets.
In detail, Solana’s market cap surged by more than 400% quarter-to-date following its foray into the booming nonfungible token (NFT) sector, providing traders a decent opportunity to lock interim profits. Additionally, the network outage accelerated the profit-taking scenario.
Solana mainnet-beta is experiencing intermittent instability. This began approximately 45 minutes ago, and engineers are investigating the issue.
— Solana Status (@SolanaStatus) September 14, 2021
On the other hand, Cardano attracted speculation because of its Alonzo upgrade, which made it a smart contracts platform for the first time since its launch. In addition, ADA’s 2,500% year-to-date performance gave traders adequate opportunities to “sell the news” and secure gains.
UNI holders are masters of 9.15 million MIR tokens
Uniswap’s superior performance in the previous 24 hours also took cues from speculation that holding UNI could grant them access to airdrop tokens.
In a recent note, Brendan Murray, content marketing manager at Boston-based blockchain analysis firm Flipside Crypto, cited Twitter user Jr3225’s research. The study cited many UNI holders failed to realize that they could claim 9.15 million of the synthetic asset platform Mirror Protocol’s MIR tokens via a December 2020 airdrop.
In comparison, LUNA stakers could claim more free MIR tokens than UNI ones — MIR/USD has surged 200% this year.
Total MIR claimed on the y-axis, airdrop-type on the x-axis. Source: Twitter user Jr3225
The report, published Tuesday, coincided with the UNI price pump.
Uniswap technical outlook
Uniswap’s latest rally had it test a support confluence made up of falling trendline resistance and the 38.2% Fib line (~$26.093) of a Fibonacci retracement graph (drawn from a $42.89 swing high to $15.70 swing low).
UNI/USD daily price chart. Source: TradingView
Sellers took control near the confluence, prompting UNI/USD to correct by 4.59% to an intraday low of $24.50. Its next support target is — again — a confluence of 23.6% Fib line ($22.12) and the ascending trendline that overall constitutes a rising channel.
Related: Institutional investors dominated the DeFi scene in Q2: Chainalysis report
An interim bullish outlook entails UNI/USD breaking above $26.09 and stepping toward the next Fib levels ($29.30, $32.51, and so on) unless the pair reaches the rising channel’s upper trendline near $42.89.
Meanwhile, a bearish setup could see UNI/USD break below the $22.12 Fib line and the channel support to target $15.70.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Mirror Protocol (MIR) emerged as one of the best performing tokens in the cryptocurrency market on May 17, even as its top trading rivals Bitcoin (BTC) and Ether (ETH) struggled to find direction after a depressive previous daily session.
The MIR/USD exchange rate surged by up to 26.71% to reclaim its two-week high of $4.974. The pair’s move uphill came as a part of a broader upside correction that started on Wednesday after the Federal Reserve revealed its intention to hike benchmark interest rates by the end of 2023.
Bids for MIR/USD were as low as $3.971 ahead of the Fed announcement. The pair trended near the weekly low even hours after the US central bank’s hawkish signal. Meanwhile, Bitcoin (BTC), Ether (ETH), XRP, and other high-cap tokens fell against the U.S. dollar.
MIR started rallying in the late U.S. session on Wednesday, shortly after Gemini announced support for a new set of decentralized finance (DeFi) projects, including Mirror Protocol. As of 1102 New York time Thursday, MIR was up 31.82% from its previous session’s low of $3.971.
Mirror Protocol rallies after Gemini announces support for its MIR token. Source: TradingView.com
The dramatic jump in MIR prices accompanied higher volumes, indicating the vitality of the token’s uptrend in the short term. Meanwhile, MIR also spiked wildly against Bitcoin —more than 27% on a 24-hour adjusted timeframe — hinting that traders decided to park their BTC proceeds in the Mirror Protocol market as the flagship cryptocurrency reacted negatively to the Fed’s rate hike plans.
Mirror Protocol V2
Traders also picked their bullish cues for MIR from the Mirror Protocol testnet launch on Tuesday.
the testnet for the imminent launch of V2 @mirror_protocol is not affecting the price of $MIR at all
THIS IS NOT ALPHA
The 30% increase in a few hours is probably nothing pic.twitter.com/QhCYMbd3sl
— Peter The Terran (@in_Kauto) June 17, 2021
In detail, Mirror Protocol is a Terra-blockchain-based protocol to create synthetic assets called Mirrored Assets (or mAssets). These fungible tokens mimic the price behavior of traditional and digital financial assets. Therefore, traders can use Mirror to gain exposure in conventional markets without holding the actual stocks, commodities, and whatnot.
Messari, in its February analysis, compared the vision of Mirror Protocol to that of Robinhood, a popular retail stock brokerage app that intends to democratize finance for people across the globe. But Mirror Protocol, with its advantage of being a DeFi project, can eliminate several inefficiencies related to centralized services like Robinhood.
“By tokenizing assets on a blockchain, the information for all historical transactions of an asset become public and immutable, removing the need for trust between parties located in the same physical area,” Messari researcher Ty Young wrote.
The early enthusiasm helped Mirror Protocol become one of the trendiest DeFi projects after its launch in December 2020. In May 2021, the project had accumulated more than $2 billion in total value locked. It currently holds about $1.79 billion.
Mirror Protocol statistics. Source: DeFi Llama
V2, first introduced in April 2021 for a governance vote, expects to bring a new set of features to Mirror’s emerging protocol. They include governance participation incentives, new MIR-enabled collateral options, and the whitelisting of pre-IPO assets.
1/ The Mirror V2 Testnet is live! https://t.co/7u4UGR6yBY
Mirror V2 builds on the best of V1, incorporating invaluable community feedback to deliver a number of innovative key features. pic.twitter.com/pnSgdeeYBs
— Mirror Protocol (@mirror_protocol) June 15, 2021
The next level of resistance for MIR lurks near its May 24-June 6 price ceiling of $5.2.
Mirror Protocol users can now access a synthetic token, mSPY, which is tied to the performance of the S&P 500.
Users can stake or mint mSPY, or contribute to a liquidity pool.
Other platforms such as Injective Protocol and Synthetix offer similar synethetic investments.
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Mirror Protocol has added an S&P 500 synthetic asset to its platform, giving investors access to a crypto token that is tied to the performance of the stock market.
Mirror Protocol Adds Index Fund
The S&P 500 is a commonly-followed index of the 500 largest publicly traded companies in the United States. It includes many blue chip technology equities including Apple, Microsoft, Google, Amazon, Tesla, and several others. At press time, the index had a one-year return of 63.27%, according to S&P Global.
Mirror Protocol’s mSPY token represents a synthetic version of the S&P 500, meaning that it is a cryptocurrency token with a value that follows the performance of the stock market.
Users can stake, mint, or trade mSPY. To mint, users must have either TerraUSD (UST) or other Mirror Protocol assets in their wallet. Currently, the collateral ratio is set at 130%. To avoid liquidation, the protocol suggests users to set the collateral ratio at 180%.
Users can also opt to provide liquidity to the mSPY-UST pool and earn a 150% APY return on their investment. At press time, this pool had assets worth 2.95 million UST staked.
Additionally, users can buy or sell mSPY for UST on the platform.
The Rise of Synthetic Assets
Synthetic assets—crypto tokens tied to the performance other assets—have been rapidly growing in popularity.
Two protocols are particularly notable. On Jan. 6, Injective Protocol added support for Facebook, Amazon, Netflix, and Google stocks. Elsewhere, on Feb. 11, the Synthetix community voted in favor of adding synthetic variants of Tesla stock to its platform.
Mirror Protocol itself offers synthetic variants of Tesla, Facebook, Apple, Amazon, Netflix, Google, and more.
The author did not hold any cryptocurrencies mentioned in this article at the time of press.
This news was brought to you by ANKR, our preferred DeFi Partner.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Retail masses are entering crypto thanks to Elon Musk and easy-to-use applications.
Bitcoin and Ethereum crashed hard on Monday, but both tokens have since recuperated nearly all losses on their way to local highs.
Learn how to buy synthetic American stocks and stake them for up to 200% APY.
The DeFi news category was brought to you by Ampleforth, our preferred DeFi partner
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This week’swNewscolumn explores the various ways to measure retail’s entry into cryptocurrency, as well as why the world’s richest man is so obsessed with Dogecoin.
Besides DOGE’s 367% rise over the past month, Bitcoin and Ethereum have also seen heady and volatile times. Following a brutal crash on Monday, both tokens looked primed to breach new all-time highs. Friday’s market activity had different plans, however.
Finally, readers will learn how to earn up to 200% APY by purchasing and staking popular equities like Google, Netflix, and Alibaba.
All that and more below.
Why Retail and Elon Musk Love Dogecoin
If last year’s narrative was the arrival of larger institutional investors to crypto, then this year looks to be marked by retail FOMO.Twitter threadsand commentary already abound, discussing the “frothy” crypto ecosystem.
For the purposes of this article, Investopedia provides a sound definition of “froth.” Theywrite:
“A frothy market is one where investors begin to ignore market fundamentals and bid up an asset’s price beyond what the asset is objectively worth. Froth in the marketplace is often characterized by overconfident investors and is a sign thatinvestor behaviorand investment decisions are being driven by emotions.”
Thus, as the market approaches levels unrelated to the underlying fundamentals, one can say that it has entered rather frothy territory.
For example, despite its pending SEC lawsuit and wave after wave of exchange delisting, XRP has yet to crumble to zero. The token has even found a floor of sorts,suggestingthat investors continue to buy the Hertz stock equivalent of cryptocurrencies.
There are other ways to measure froth, too.
A prevalent metric is using Google Trends for terms like “Bitcoin,” “Ethereum,” and a few popular companies like “Coinbase.” This tool analyzes search volume for Google searches. Higher volumes indicate that more people are typing the term into Google in one form or another.
Comparing this to the heady times of 2017 helps contextualize how far along the market is.
Google Trends for “Bitcoin” (Blue), “Ethereum” (Red), and “Coinbase” (Yellow) from Jan. 1, 2017, to present. Source:Google Trends
So far, the market has a long way to go before it hits 2017-levels. But, one should keep in mind that the above is a rather crude metric for determining a market’s froth. There are a hundred different ways to measure this phenomenon.
To find out more about these other metrics, Crypto Briefing spoke with the co-founder and COO of the data analytics platform,CoinGecko.
Besides high traffic on crypto-specific websites,Bobby Ongsaid:
“There are also other metrics that have also increased in the past few months such as unique wallets created and exchanges’ trading volume. Mainstream fintech companies such as Square have recently reported that almost 80% of its Q3 Cash App revenue came from Bitcoin, indicating that retail users are actively buying Bitcoin through these easily accessible products.”
In a nutshell, keep an eye on volumes for easy-to-use fiat on-ramps like Cash App and Coinbase. This is where retail is cropping up.
After that, there are specific tokens that also signal the entry of non-professional investors.
Ripple’s XRP token served this purpose in the past, but the recent lawsuit has dampened this narrative. In its place, Dogecoin appears to be filling this gap.
Alongside the token’s meteoric rise in the past month, Ong said that CoinGecko’sDOGEpage has “seen a 367% increase” compared to the previous 30-day period. He added:
“There are two catalysts for the increase in Dogecoin price in 2020 which we identify as Elon Musk andTikTok. Elon Musk, who was recently crowned the richest man in the world and has 42.3 million followers on Twitter, in December,tweetedabout Dogecoin and changed his Twitter profile as the ‘Former CEO of Dogecoin.’ This led to many retail investors to become aware of Dogecoin.”
What’s more, that same Dogecoin tweet is nowup for auctionas a non-fungible token (NFT). At the time of press, the tweet is worth more than $7,000.
Ong also confirmed that DOGE is a reasonable proxy for retail investors due to its use as a meme. Musk’s fascination with the token is likely similar. The Tesla founder has something of a penchant for actively posting viral memes on Twitter.
Not everything is made of cake pic.twitter.com/oMaCmYQAwx
Thanks to DOGE, now they can express this love through the purchase of a cryptocurrency. And based on recent price action, love is a powerful market force.
Market Action: Bitcoin (BTC)
7-day BTC/USD chart. Source:CoinGecko
Bitcoin crashed on Jan. 11, 2021,sheddingmore than 20% of its value in just a few hours. Various critics, including ECB President Christine Lagarde, called for the token’s imminent death.
Despite the market panic, on-chain analysisrevealedthat large holders were quietly adding cheap BTC to their wallets.
Source:Twitter
In the end, dip-buying optimists eventually prevailed. At the time of press, Bitcoin has recuperated nearly all of its losses since Monday and is currently trading hands at roughly $35,000 despite a midday crash on Friday.
“BTC has recovered strongly from the $30,000 level in recent days and the dip-buying tone should prevail while the $36,500 level is defended. I would expect a coming test towards the $41,000 level if this remains the case, with a breakout above this area placing the $46,500 and $51,000 levels as upside targets.”
Though $51,000 seems like an extremely bullish target, one need only consider the retail froth mentioned above. eToro, another popular crypto brokerage for this demographic, recentlytoldusers that they might have to suspend trading on the platform this weekend due to high demand.
For reference,eTorohas been dominating the social-networking-meets-finance market slice since 2007. They’re a popular brand with huge volumes.
And when they say that they’re running low on Bitcoin, Batchelor’s price targets may actually be too low.Previous highs were thanks to institutional investors, but now retail is joining in a big way.
Market Action: Ethereum (ETH)
7-day ETH/USD chart. Source:CoinGecko
Insofar as the crypto market is one big Bitcoin trade, Ethereum followed BTC in the crash earlier this week. But, as the above chart shows, the recovery has been V-shaped as ETH now trades a meager 21 points below its all-time high of $1,448.
All that needs to happen is a successful breach of $1,400. From there, the sky’s the limit, according to Batchelor. He said:
“Ethereum looks set to test $1,400 at the moment. A sustained move above $1,400 and I would expect a breakout towards $2,000.”
Ethereum’s DeFi niche continues to build, ship, and deploy since making headlines last summer alongside positive price action. And one particular competition that emerged during those heady times was that betweenUniswap and SushiSwap.
For those just joining, SushiSwap is a forked version of Uniswap. It offers essentially the same product as Uniswap, but at that time, it incentivized users to join the platform with its native token, SUSHI. Uniswap hadn’t yetdistributedits UNI token.
What initially appeared to be just another meme coin amid the yield farming frenzy, SushiSwap has now emerged as quite efficient for several trading pairs. A former Crypto Briefing journalist turned Delphi analyst,Ashwath Balakrishnan, whipped up aninsightful threadon precisely this.
In sum, both platforms are thriving despite the existence of this competition. Uniswap is on thecusp of breakingan all-time high for daily volume despite dropping its token incentives, too.
Finally, Ethereum enthusiasts have been anxiously awaiting anew proposalthat would burn gas fees to reduce network congestion. Unfortunately, miners aren’t too pleased with EIP-1559, as it would bite into their profits and allegedly promote centralization.
Crypto Briefing will be monitoring this proposal closely.
Crypto To-Do List
Last week, readers wereencouragedto experiment with one of ten DeFi applications. The reason for the testing was simple: Each application isrumoredto be dropping a native token for early users.
This week, readers are encouraged to experiment in the emerging world of synthetic assets.
This sub-niche has been booming recently, with large exchanges like FTX and Bittrex launching their offerings. Other decentralized versions like Synthetix and Mirror Protocol also show promise.
These assets essentially bring the world of traditional equities to crypto, opening up the market to anyone with an internet connection. There are a few flavors of how this is precisely executed, but Kyle Samani of Multicoin CapitaltoldCrypto Briefing that:
“There’s a pretty high probability that synthetic assets overtake traditional markets. Permissionless venues will open American markets to a 7 billion global population.”
Whether one agrees with Samani or not is beside the point.Experimenting with tokenized Google stocks is an excellent educational opportunity.
And today, Crypto Briefing will unpack Mirror Protocol in particular. For anyone wondering, the author does not hold any LUNA, MIR, or UST tokens. This is strictly for educational purposes.
To get started, users must have Terra’s native stablecoin called TerraUSD (UST) and its third-party wallet, Terra Station. The wallet is not dissimilar from MetaMask, except that it’s connected to the Terra blockchain rather than Ethereum. Users can buy UST on Uniswap with ETH.
Once fully equipped, users can begin minting their UST for “mirrored” versions of 13 traditional stocks.
The list includes Apple (AAPL), Google (GOOGL), Tesla (TSLA), Netflix (NFLX), Invesco QQQ Trust (QQQ), Twitter (TWTR), Microsoft (MSFT), Amazon (AMZN), Alibaba (BABA), iShares Gold Trust (IAU), iShares Silver Trust (SLV), United States Oil Fund (USO), and the Proshares VIX (VIXY).
Users receive tokens with an “m” prefix, followed by the synthetic stock’s ticker. With that, users’ work is done. They now have price exposure to some very popular equities.
For the more ambitious user, however, there are a few other options to continue this journey.
Users can take their “mAssets” and add them to a liquidity pool akin to Uniswap and earn fees. Users receive a liquidity provider (LP) token representing how much liquidity they provided for doing this.
The final step is then adding this LP token to any number of relevant staking opportunities on Mirror.
Mirror Protocol has two cryptocurrencies, a stablecoin and a native asset calledMIR. The most lucrative staking opportunity at the time of press is 214% for staking mVIXY-UST. Source:Mirror Protocol
The returns for staking are relatively high, but users also run the risk of incurringimpermanent loss. Experimentation is all part and parcel of crypto these days, but staying safe should be a high priority for all users.
That’s why Ong of CoinGecko advises caution to any crypto-curious retail user. He concluded:
“Retail investors should be aware of the various risks involved when it comes to cryptocurrencies. They will need to focus on understanding the basics such as how blockchains and cryptocurrencies work. They should also be aware of cryptocurrencies’ highly volatile nature as this will prepare them for any high pressure situations as the market keeps gyrating.”
That’s all for this week’s edition of wNews, readers. Stay tuned for next week’s dispatch.
Disclosure: At the time of press, the author held BTC, ETH, POLS, and WBTC.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
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