Autor: dot-traders

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USD isn’t Maker’s only problem: DAOs are broken

  • Laguna Labs CEO Stefan Rust says MakerDAO’s quest to free float DAI is a great move.
  • However, he says the whole idea of DAOs isn’t the utopian democracy people think they are.

Stefan Rust, CEO of blockchain innovation hub Laguna Labs, says proposals to have Maker DAO’s native token fully depegged from the US dollar might not be the only problem out there for the crypto platform.

According to Rust, even more pressing could be the structure of decentralised autonomous organisations (DAOs). He says this is what Maker and the broader crypto industry needs to focus on even as events elsewhere inform the desire to depeg Dai.

The Laguna Labs CEO’s comments, shared with CoinJournal on Wednesday, come a few days after MakerDAO co-founder Rune Christensen discussed why depegging the native token DAI from USD Coin (USDC) might be Maker’s way forward.

The Maker co-founder’s advice to the community was tempered with what he summed as concerns over a “physical crackdown against crypto” by an authoritarian system. The views followed the US Treasury’s sanctions on crypto mixing service Tornado Cash.

Rust says DAOs are broken

According to Rune, and in reference to Maker’s DAI plans, the whole DAO ecosystem is “broken” and needs fixing if the crypto industry is to see even more growth.

“This is a great idea and one I’m excited to watch Maker DAO explore,” Rust said referring to the DAI depeg discussion. “[But] the US dollar is not, however, Maker’s only problem: the governance model of all decentralised autonomous organisations (DAOs), needs serious attention if the cryptocurrency industry is to thrive,” he added.

The problems bedevilling the decentralised finance (DeFi) ecosystem as seen over the past few years, with hacks and Ponzi scheme-like projects seeing many people lose huge amounts of money adds to the whole outlook of the DAO ecosystem being broken.

Not the utopian democracy you think

Rust also notes that, even though most users find DeFi an “intimidating space,” the DAOs governing many of the protocols within the industry simply do not work. 

He believes DAOs do not run on the kind of utopian democracy that most within the crypto space would like to think they are.

“Indeed, as we saw recently with Maker DAO and its “community” vote to allow US banks to borrow DAI while adding US Treasuries to the portfolio, like all democracies, DAOs are open to outsized influence from those with the largest share of tokens, or the ability to sway opinion.”

In his opinion, Rust sees the best path forward for crypto following the recent booms and busts would be for the sector to pivot to its original mission of a “decentralised, censorship-resistant financial ecosystem.”

The post USD isn’t Maker’s only problem: DAOs are broken appeared first on CoinJournal.

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Russia says crypto is “safe alternative” for cross border payments

While on one level it feels silly to talk about cryptocurrencies in Russia when there is a literal war going on, this is a crypto site.

In that context, some very interesting developments have come out of Russia over the last day. Russian Prime Minister Mikhail Mishustin declared cryptocurrencies could be a “safe alternative” for cross-border payments.

“We need to intensively develop innovative areas, including the adoption of digital assets. This is a safe alternative for all parties that can guarantee uninterrupted payment for the supply of goods from abroad and for export.”

It is also worth mentioning that this announcement comes on the back of Iran’s trade ministry approving crypto as a means of payments for imports. Iran has essentially been cut off from the global banking system as a result of its nuclear programme, which has led to countries placing sanctions on the nation.

Russia, of course, is no stranger to sanctions themselves. Following their invasion of Ukraine in February, the Western World pushed back by instilling a bevvy of economic sanctions, hoping to suffocate the Russian economy and tear the value of its ruble currency down.

This brought up what can at times be a polarising subject – the use of crypto as a potential medium to evade such sanctions. These comments by Mishustin referring to crypto as a “safe alternative” will do nothing to dampen that debate.

But it does demonstrate the power of crypto. I saw this first hand in my trip to El Salvador last month, where people spoke of the advantages Bitcoin offered regarding remittances. El Salvador is in the top 10 countries in the world for remittances as a portion of GDP, and the average fee on such remittances is a crazy 6.5%.

Cutting these fees out through using Bitcoin can be a huge plus to those receiving money from loved ones abroad. In Russia and Iran’s case, while remittances will be aided too, they are not as big a factor as they are for El Salvador. In their cases, the massive boon is the enhanced ability to evade sanctions.

So while this story shows some of the pluses of crypto, it also highlights the moral grey area.

The post Russia says crypto is “safe alternative” for cross border payments appeared first on CoinJournal.

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1xBit Welcomes COSMOS to the Family

Touted as one of the fastest growing crypto betting platforms in this era, 1xBit stays consistent in its resolve to diversify payment options and make gambling operations easier for bettors.

With Cosmos getting added to the over 40 payment methods already available on the platform, existing and new users are regaled with one extra crypto-payment method to explore.

What is COSMOS?

COSMOS (ATOM), popularly called the “Internet of blockchains” is a cryptocurrency whose major aim is to bridge the gap between an ecosystem of blockchains.

The cryptocurrency network is a brainchild of Jae Kwon and Ethan Bochman which was founded in 2014. However, software for Cosmos would end up getting released in 2019.

What’s Unique about Cosmos?

Cosmos aims to achieve what has been a struggle in the crypto space, which is blockchain interoperability. With blockchain interoperability, different blockchain networks can stay in constant communication and share data which can otherwise ease the distribution of digital assets.

One tool provided by the Cosmos network that has proven effective in smooth communication of one blockchain with another in the event of transfer of assets is the Inter-Blockchain Communication (IBC).

The forward-thinking solutions this cryptocurrency provides coupled with its other applications have made it a catch in the crypto space.

It came as no surprise that the site was able to gain 370% in the last quarter of 2021. Cosmos’ progressiveness is said to be responsible for how widely it has gotten accepted in such a short time and is said to be a cryptocurrency that could stand the test of time.

Given 1xBit’s interest in ensuring that it doesn’t just provide numerous crypto-payment options, but the best of the lot, it is not out of the ordinary that the site will move to list COSMOS on its platform.

1xBit Benefits

So far, we have peeked through what you stand to gain using Cosmos on 1xBit, now let’s take it a notch higher by looking at some of the perks of betting at 1xBit.

Over 40 Cryptocurrencies

1xBit’s resolve of ensuring that there are diverse crypto payment options available is one of its selling points. Cosmos is a new addition that just made it to the list and 1xBit doesn’t seem like stopping any time soon as it aims to provide broader payment options. If you are a bettor who doesn’t like to be restricted by choices, this is one reason to come on board.

Instant Payouts

1xBit is one platform that understands the urgency of ensuring users’ withdrawals get processed as quickly as possible. Considering the betting platform capitalizes mainly on crypto as payment options, it explains how payouts get processed in just a few minutes.

Zero Fees

Another perk of using solely crypto payment methods is the fact that there are almost non-existent fees charged on transactions. This cannot be said for betting sites that use regular payment methods which require exorbitant charges, especially for bulk transactions.

Total Anonymity

Imagine a scenario where you can register with a betting platform without necessarily disclosing your personal information. When registering on 1xBit, only your Email is required of you, which is aimed at ensuring that your identity stays protected as much as you would like it.

Easy Registration

1xBit understands the sense of urgency that is mostly reminiscent of new bettors and as such, makes the registration process as simple as possible. So much so that you can get it done in just a few seconds.

Welcome Bonus Up to 7 BTC

Away from the other juicy perks you stand to gain, this one has so far garnered traction for the betting platform. This platform gives you a soft landing as a new user by offering up to 7 BTC in bonuses across the first four deposits. With this mouthwatering offer, you are given enough leverage to make the most out of your bets even as a new user.

Conclusion

Take advantage of the new cryptocurrency, COSMOS, available on 1xBit today, and enjoy seamless transactions like never before!

The post 1xBit Welcomes COSMOS to the Family appeared first on CoinJournal.

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Terra LUNA Classic price prediction for September 2022

Terra LUNA Classic price had a spectacular performance in August as speculation continued. The LUNC token jumped to a high of $0.00016, which was the highest point since June of this year. It has surged by over 240% from its lowest level this year, giving it a market cap of over $1 billion.

Why is LUNC rising?

Terra LUNA Classic is the remnant of the original LUNA that collapsed in May of this year. It is an autonomous cryptocurrency that was abandoned by the developers as they shifted to Terra 2.0. 

Terra LUNA classic and Terra Classic USD prices have performed well in the past few months as investors buy the dip. The theory is that the coins will ultimately rebound in the coming months. 

Analysts also believe that the rally is part of a short-squeeze as buyers attempt to squeeze short-sellers. Short squeezes have become popular in the market recently. For example, we saw shares of Revlon surge after the company announced that it was filing for bankruptcy. 

The same situation happened in 2020 when Hertz filed for bankruptcy. At the same time, the situation has happened regularly in the cryptocurrency industry following the collapse of Celsius and Voyager Digital. Therefore, while Terra Luna is a useless cryptocurrency, it is relatively risky for people to short it.

In the long term it is relatively difficult to make a case for both LUNA and LUNC. For one, in the past, the value of LUNA happened because of the strong market activity in its ecosystem which was also helped by Terra USD. 

Now, the ecosystem, which was made of platforms like Astroport and Anchor Protocol has disappeared. At the same time, Terra USD, which was supposed to be stable at $1 has dropped to $0.02. 

Terra LUNA Classic price prediction

The four-hour chart shows that the LUNC price has been in a strong bullish trend in the past few months. As a result, the coin has managed to move above the important resistance level at $0.0001150, which was the highest point on August 1. It has rallied above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved above the overbought level.

Therefore, Terra LUNA Classic price will likely continue rising as bulls target the next key resistance level at $0.00020.

The post Terra LUNA Classic price prediction for September 2022 appeared first on CoinJournal.