Kategorie: Crypto Markets

Three months ago, MEXC Global initiated a LUNC recovery plan that included burning and buying back LUNC and since then LUNC has hit its highest gains since the TerraUSD stablecoin debacle that led to the Terra Luna hard fork.

MEXC has once again committed to supporting Terra Luna Classic by supporting the 1.2% burn proposal from the Terra Luna Classic community. To that extent, MEXC has launched a time-limited burning event for spot trading fees for LUNC/USDC and LUNC/USDT from September 3, 10:00 to September 17, 10:00 UTC when the 1.2% tax burn proposal is expected to be released.

This makes MEXC the first centralized exchange (CEX) to support LUNC’s upgrade and burning proposal. Currently, MEXC ranks second when it comes to LUNC burning.

In the initiative, the trading fees received by MEXC will be used for secondary market buybacks on a daily basis. MEXC will then make arrangements to send the LUNC tokens bought in the buyback to the official burn address provided by Terra.

MEXC’s global initiatives

As a leading cryptocurrency exchange, MEXC offers cryptocurrency trading services for spot trading, ETF, crypto futures, staking and NFTs among other crypto-related services. It serves over 7 million people across the world and supports more than 1,400 cryptocurrencies.

MEXC Global offers zero fees for all spot trading during the current bear market. It has also committed to supporting Ethereum upgrade together with any possible hard forks once Ethereum migrates to a Proof-of-Stake model.

The crypto exchange also introduced Grid Trading and Trade Mining among other incentive products for its users.

The post MEXC the first CEX to support LUNC upgrade and burning proposal appeared first on CoinJournal.

Decentralized exchange aggregator 1inch has announced that it will conduct a 300,000 OP token airdrop to 1inch wallet users on the Optimism Network, which is an Ethereum Layer 2 scaling solution.

The OP tokens will be equally distributed between all wallets that have made swaps through the 1inch wallet on Optimism Network. However, wallets involved in a Sybil attack, where an attacker uses multiple wallet addresses for malicious activities, will not be included in the distribution.

The Airdrop is scheduled for September 1.

1inch expansion on Optimism

1inch became integrated on Optimism in August 2021 with the aim of reducing transaction fees and improving throughput for its users. Optimism has the potential of processing up to 2,000 transactions per second (TPS), which is far more than what Ethereum can handle.

1inch co-founder Sergej Kunz in a statement said:

“Optimism is one of the most efficient and popular L2 solutions. Since 1inch expanded to Optimism, we have seen substantial activity on that network, and this reward will come as an extra incentive for them to use 1inch on Optimism.”

According to 1inch, more than 45,000 wallets have used 1inch on Optimism with 28,600 performing most of their transactions on the Optimism network.

Optimism’s layer 2 Optimistic Rollup scaling solution leverages the security of Ethereum while reducing the latency and costs of transactions. It currently has a locked value of over $900 million and has seen a steady rise in transactions for the first half of the year.

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The crypto division of the popular trading app Robinhood has been fined $30 million by the New York State Department of Finance Services for allegedly violating cybersecurity regulations and anti-money laundering laws.

The New York State Department of Financial Services accused the trading app company of failing to use proper resources to stop illicit trading activities on the platform.

A press release on this matter notes:

“All of these deficiencies resulted from what the department found were significant shortcomings in the management and oversight of RHC’s compliance programs, including a failure to foster and maintain an adequate culture of compliance. The department also discovered that adequate resources were not devoted to RHC’s compliance programs, particularly as it grew, which exacerbated these issues.”

Robinhood is now being investigated further and will be required by the department to hire the services of an independent monetary consultant who will regularly evaluate its compliance efforts and enforce remedies when necessary.

Failing to hire and train staff

In addition to failing to prevent anti-money laundering activities, Robinhood was also accused of failing to hire and train its staff to prevent illicit financial behaviour. The department said that Robinhood did not take note of the apparent trading risks and therefore didn’t take the necessary actions to prevent illicit behaviour.

In its defence, Robinhood through its associate general counsel, Chery Crumpton said in an interview:

“We have made significant progress building industry-leading legal, compliance, and cybersecurity programs. We will continue to prioritize this work to best serve our customers. We remain proud to offer a more accessible, lower-cost platform to buy and sell crypto and are excited to continue to grow our business in a responsible manner with new products and services that our customers want.”

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Babylon Finance, the protocol for DeFi asset management, has issued a statement saying that it shall shut down its services on November 15.

This comes after the firm failed to recover from the $80 million Rari/FEI hack that took place in April this year.

Babylon Finance is shutting down

– Details on the claim process will be shared by the end of this week
– Withdraw your funds before Nov 15thhttps://t.co/dICvgxpDUF

— Babylon Finance (@BabylonFinance) August 31, 2022

The Rari/FEI hack

Prior to the Rari/FEI hack, Babylon Finance was operating perfectly and it had established a top 10 lending pool on Rari, a protocol that allows users to supply and borrow any asset from its Fuse pools to generate yield.

Rari users can create pools with a selection of Ethereum-based digital assets, like Babylon Finance’s native token, BABL, and other users can contribute money to those pools to receive rewards. At its peak, Babylon Finance held $30 million worth of different cryptocurrencies on Rari and was one of the top lending pools on Rari. $10 million worth of the assets were supplied by users.

The Rari/FEI hack caused the protocol $3.4 million and in the following two days, customers had withdrawn 75% of the TVL.

Following the exploit, Babylon’s $10 million loan market on Rari, Fuse, was suspended because BABL could no longer be used as security in borrowing funds on Rari.

The Babylon Finance token, BABL

Following the news, the price of the BABL token has dropped by over 91% in the last 24 hours and it is currently trading at $0.4563 according to Coinnmarketcap.

According to a press release by Babylon Finance:

“Since the token supply is finite, non-inflationary, and only 10% remains in the treasury, the fall has eliminated any chance of further fundraising initiatives.”

The Babylon Finance team has said that starting on September 6, the firm would combine all its treasury holdings and distribute them to BABL holders. In addition members of Babylon Finance must withdraw their money before November 15.

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• 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.”

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