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Crypto lender Solend community votes to reverse ‘whale account’ takeover decision

Solend, a Solana-based borrowing and lending protocol, has overturned the controversial DAO decision that was reached yesterday allowing Solana to take control of the platform’s largest user account.

It all started yesterday, June 19, when the Solend team staged a governance vote on whether to take over the account of a whale account belonging to one of its users to prevent the occurrence of an on-chain liquidation event since the unknown user held a $108 million stablacoins loan that was collateralized by 5.7 million Solana tokens ($170 million).

Solend risk mitigation proposal

According to the proposal that was voted on, there was a need to mitigate the risks from the whale that held 95% of the SOL in the Solend main pool. With the ongoing market meltdown, this could be a great threat to Solend since the whale account will have to be liquidated if the price of SOL drops to $22.30.

The team claimed that the liquidation of this size can pose a great threat to their lending protocol due to thin liquidity. In addition, the team noted that in case an on-chain liquidation happens, then Solend will be on the verge of acquiring bad debts as the SOL value continues to cascade.

However, the team suggested that the loan should be winded up through an over-the-counter (OTC) contract rather than protocol liquidation. With this kind of suggestion, the team got full support and power from the Solend governance system that quickly passed a vote for them to confiscate the user’s position, 88% of voting power coming from a single address.

Social media criticism

Following the governance system decision, there was a lot of criticism on social media claiming that the team has undermined the decentralization ethos. However, the team responded today, June 20, saying that they have taken note of their criticism and they are putting up a second proposal to invalidate the previous decision.

Today, the DAO voted in the favor of invalidating the previous proposal with 99% votes. The team wrote:

“We’ve been listening to your criticisms about SLND1 and the way in which it was conducted. The price of SOL has been steadily increasing, buying us some time to gather more feedback and consider alternatives.” 

The post Crypto lender Solend community votes to reverse ‘whale account’ takeover decision appeared first on CoinJournal.

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Dogecoin price shoots up following Elon Musk’s tweet

Dogecoin (DOGE) has surged to a high of $0.06247 today following a tweet by Elon Musk. At the time of writing, the meme coin had slightly pulled back to trade at $0.058 and it was still green.

Dogecoin had found itself at the mercies of the unforgiving plummeting crypto market over the past weeks and Elon Musk’s tweet seems to have come at the hour of need. Musk tweeted yesterday that he will keep supporting Dogecoin.

Elon’s tweet came a day after a Dogecoin investor sued Elon Musk and his companies SpaceX and Tesla Inc for an astonishing $258 billion in damages for being “engaged in a crypto pyramid scheme” involving Dogecoin.

While the announcement of the legal battle did not have an immediate impact on Dogecoin price, investors were scared that the staunch DOGE supporter (Elon Musk) would pull back from supporting the meme coin following the suit.

However, yesterday’s tweet affirms to many that the billionaire is still a believer in the meme coin.

Elon Musk’s love for Dogecoin

Last year, Elon Musk revealed that he personally owns Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). And in 2020 and 2021, the price of Dogecoin shoot through the roof whenever Musk tweeted about the coin.

While the prices of ETH and BTC jumped to new all-time highs in 2021, Musk kept on encouraging Dogecoin developers to upgrade the meme-coin so that it could beat the likes of Bitcoin.

In 2019, after being voted “Dogecoin CEO’ in a mock tweet survey, Elon went ahead and claimed he was “The Dogefather.”

Recently, Elon Musk’s Tesla Company started accepting Dogecoin as a mode of payment for its merchandise while SpaceX has also announced that it will start accepting the meme coin as payment for its merchandise. There are also speculations that Dogecoin shall be used for rewards on Twitter following Elon Musk’s bid to purchase Twitter.

The post Dogecoin price shoots up following Elon Musk’s tweet appeared first on CoinJournal.

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Bitcoin Cash to trend below $100 as weakness in crypto bites

For the past two weeks, Bitcoin Cash has followed in the steps of major coins in decline. The coin now looks significantly bearish even though it has managed to recover a few of this week’s losses. However, downward pressure will likely continue over the weeks ahead as sentiment in the broader market struggles to find momentum. Below are the major BCH highlights:

  • Bitcoin Cash has stopped the downward decline with a modest gain today.

  • But there is no real chance of a sustained bullish run

  • BCH will likely trend lower and eventually lose the $100 support 

Data Source: TradingView 

Why holding a $100 is key?

BCH has faced a lot of pressure in 2022. But the coin has still managed to stay above $100 all year round. This is an important psychological barrier. It shows the resilience of BCH in the face of market-wide pressures. But for the first time in 2022, there is a real risk that BCH could finally fail to keep the $100 mark.

In fact, at the time of writing, the coin was trading at around $120. This was after a modest 24-hour gain of around 3%. BCH is dangerously close to the $100. It only needs a 20% decline to fall to double digits.

For a coin that has already dropped 22% over the last 7 days, another 20% decline is more probable than you think. Nonetheless, once $100 is breached, expect BCH to fall further towards $80 before it finds support.

Why is BCH falling?

The downtrend that BCH has seen is not isolated to the coin alone. In fact, we have not seen any major changes in the coin’s fundamentals here. The fall is largely caused by economic and monetary factors in the global economy.

Sadly, these tough economic conditions will not ease anytime soon. As such, BCH investors must be ready for a consistent bear season.

The post Bitcoin Cash to trend below $100 as weakness in crypto bites appeared first on CoinJournal.