🚀 Rocky Road
Binance has 99 problems, and governments are all of them...
Happy Tuesday. The billionaire space race has been heating up lately, but if you’re just tuning in, it has its own Wikipedia article so you can get caught up. Who are you betting on?
Price Check 🏷 1 day change
📉 Bitcoin: $34,072 (-0%)
📉 Ethereum: $2,332 (+3.7%)
📉 Dogecoin: $0.23 (-2.4%)
🚀 Aave: $321.68 (+17.2%)
🚀 Sushiswap: $8.67 (+12.9%)
🚀 Synthetix: $10.56 (+25.3%)
Prices as of 6 AM PST 7/6, data from Coingecko
Markets: Major bond sell-offs spooked the market into making its first pullback of its historic week long rally. Investors turned to mega-cap stocks like Apple and Facebook that continue to run higher.
Covid: Areas with low vaccination rates like Arkansas, Missouri and Wyoming are becoming breeding grounds for new variants such as the soon-to-be dominant Delta-5 variant. Vaccinated people are still protected, but that may change in the face of newer, more dangerous variants.
A Bumpy Road for Binance 🪨
The world’s biggest crypto exchange has been under fire lately, starring in just about every bad news headline over the past two weeks. Binance Exchange is a leading cryptocurrency exchange founded in 2017 in Hong Kong. Binance offers crypto-to-crypto trading in more than 500 cryptocurrencies and virtual tokens. The exchange also offers crypto derivatives and margin trading, which has been a topic of controversy as of late.
Read about the difference between spot and margin trading.
Banks are Shunning Binance
London-based bank Barclays has stopped transferring the funds of its U.K. customers to Binance.
Last month, the Financial Conduct Authority(FCA), the regulator for nearly 60K financial services firms and financial markets in the UK, issued a consumer warning about Binance. It also banned Binance from regulated financial activities, like arranging conventional investment deals. The regulator said that the exchange did not have the authorization to conduct crypto operations in the UK.
The FCA warning led Barclays to burn the fiat-to-crypto bridge for its UK customers, meaning that those customers could no longer exchange their cash for crypto.
The decision has been taken following the FCA warning to consumers.
A group of Italian and international investors have filed a class-action suit against Binance, alleging the firm violated its own rules on futures trading, and the platform did not function properly at certain peak trading times.
The investors in the class action suit allege they lost "tens of millions" of dollars due to not being able to manage their positions and view their balances during peak trading hours.
Binance will more than likely recover, but in the short term its strategy of asking for forgiveness instead of permission didn’t pay off.
History in Wyoming 🦬
The equality state has approved legal status for a decentralized autonomous organization (DAO), the American CryptoFed DAO, according to an announcement on Sunday. The organization, which has a mission to introduce a new monetary system, now becomes the first legally recognized DAO in the U.S.
The Future of Organizations
Why is this a big deal, and wtf is a DAO?
A DAO is an organization created by a group of crypto wallets controlled by individuals and other organizations that executes all its movements through code (usually via smart contracts), making it possible to manage assets and votes safely without the need for underlying legal or traditional banking setups. Membership in a DAO can be more efficient to what traditional organizations can achieve, and DAOs have been used to manage assets, build DeFi protocols, vote on community matters, and create organized clubs for things like digital art collecting.
Some predict that DAOs are the future of all organizations.
DAOs empower internet communities to now build out things like serious grant ecosystems for public goods, provide benefits for users of their ecosystem, decentralized philanthropy, and much more.
The Rise of DeFi 🔥
Decentralized Finance tokens have picked up steam this week, with traditional finance cozening up to the idea of DeFi. Despite the beginning of the year slump, DeFi saw massive growth in 2021. The total value locked across all DeFi protocols hit a peak of $88 Billion in May(according to DeFi Pulse), which is over a 4x increase since January. To put things into perspective, the average bank holds around $3 Billion in assets.
In an interview with CryptoPotato, DeFi protocol Balancer’s Head of Growth, Jeremy Musighi gives his thoughts on why DeFi is so hot right now.
“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.”
Institutions Warming up to DeFi
Some of the two largest DeFi Protocols, Aave(AAVE) and Compound(COMP), are enticing the big dogs to join the decentralized finance revolution by rolling out institutional DeFi products, and its sent their token prices flying.
Compound Treasury: A new service that seeks to offer institutions the chance to participate DeFi-based gains without having to set up a ledger and use MetaMask themselves. The Treasury also allows third parties to use fiat dollars to enter the space. The COMP token is up roughly 57% this week.
Aave Pro: A permissioned version of its platform geared towards institutional investors, was first revealed during a webinar last week. Aave and Fireblocks are launching the first permissioned decentralized liquidity protocol “Aave Pro” in July.”
SMALL BITEZ 🗞
NFT sales volume hit $2.5 Billion for the first half of 2021
Coinbase has signed a sponsorship deal with ESL Gaming
Ukraine’s Largest Mobile-Payment Platform Monobank To Launch BTC Trading
BlockFi Releases Visa Rewards Credit Card to US Clients
Swiss Bank Sygnum Becomes First Bank to Offer ETH 2.0 Staking