DeFi

Is FTX’s Sam Bankman-Fried Right About DeFi Regulation?

Published

7 months ago

14 June, 2024

Is FTX’s Sam Bankman-Fried Right About DeFi Regulation?

Last week, while speaking to Politico, Sam Bankman-Fried, the billionaire founder of FTX and Alameda Research, said he had significantly revised his spending on political campaigns. He said his previously announced plan to spend more than $1 billion was a “stupid quote.”

Since the start of the year, SBF has spent approximately $40 million supporting Democratic and Republican election campaigns from coast to coast. So far, that spending appears to have paid off, according to CNBC report the majority of Bankman-Fried’s political candidates gained an advantage in the primary elections. But the former Wall Street quant believes there’s a limit to what money can buy in general elections.

This article is excerpted from The Node, CoinDesk’s daily digest of the most crucial stories in blockchain and crypto news. You can subscribe to receive the full newsletter here.

“At some point, when you’ve gotten your message to voters, there’s just not much more you can do,” Bankman-Fried said in the release. Political interview. “You can spend more time and more messages, more money, more other things [but] you accomplish nothing more.

Much has been written about Bankman-Fried and “effective altruism,” the political theory he subscribes to which holds that people create wealth and give it away either by making targeted donations now or by founding well-off charities. later endowed by the magic of compound interest. .

I guess he feels his money is better spent elsewhere than on a TV commercial in Scranton, Pennsylvania. But where will his money and influence go? The problem with effective altruism is that it is a way of thinking that allows people to rationalize any of their actions.

Bankman-Fried’s political pragmatism was also visible in his recently published crypto-regulatory manifesto “Possible digital asset industry standards.” The blog, what SBF calls “an industry standards playbook,” outlines the path forward for crypto industry self-regulation. Somewhat surprisingly, the sectoral requirements of the SBF have been widely criticized.

It covered seven areas where crypto could write rules for itself while waiting for clearer regulations from above. Some are very simple: more disclosures on crypto advertising, regular audits for cash-backed stablecoins, and a three-step checklist for crypto exchanges determining whether a token they want to list is a security.

Others show how crypto has rubbed off on SBF: It wants a standard where hackers are guaranteed 5% of the bounty if they mine a protocol – assuming they return the rest. (This could encourage more ethical hacking, one of the ways code enthusiasts believe the industry is literally evolving.)

But SBF ran into issues on social media when writing about decentralized finance (DeFi). He proposed a “suitability test” that would restrict access to cryptocurrencies, much like accredited investor rules based on net worth and other factors in the traditional market. This goes against the dominant open source philosophy of cryptography: equal access for all.

It also initially proposed a licensing system for websites that interact with DeFi and other crypto protocols, as well as an automatic blacklist to prevent sanctioned players from using centralized services. Adam Cochran of Synthetix and Yearn Finance called the rules “a moat that allows centralized entities to control at least part of the flow to DeFi”.

In response to the project, many noted that SBF seemed less concerned about the freedoms offered by DeFi than the centralized revenue companies that can leverage the industry. Industry gossip site Rekt, who wrote that he “positioned himself as the US government-approved guardian” of cryptography, and that he was elsewhere compared to a drug lord.

The most compelling arguments came from Erik Vorhees, founder of Bitcoin OG and ShapeShift, who noted self-enforced rules and blacklists would only serve established exchanges that could afford to pay to comply. “You can advocate effective altruism, or you can advocate barring 80 million innocent Iranians from the future of global finance,” Voorhees tweeted. “You can’t do both.”

SBF took the criticism with equanimity, reworked parts of its draft, and wrote a lengthy Twitter thread addressing the particular concerns of a number of critics. The heart of the debate cannot, however, be ironed out. The SBF is a realist who sees regulation coming and wishes to participate in its construction.

This will always offend ideologically motivated crypto advocates, who see crypto itself as a way to improve the world. For its part, SBF never fully embraced the crypto mindset – and it has gone on record to say so. For him, crypto is a means to an end: creating wealth so that those funds can be redirected. (Remember infinite DeFi Fiasco of the “box”?)

Even if criticism remains of the watered-down project, the SBF clarified that he was talking about centralized on-ramps to cryptography, not self-executing protocols. “These are not statements about what DeFi developers, smart contracts, and validators should do,” Bankman-Fried wrote. “It ultimately seeks to establish guidelines for how, for example, the FTX platform – or Fidelity’s – could interface with DeFi contracts.”

The debate over whether crypto should capitulate and erect barriers to entry in the name of protecting the uninformed is actually just beginning. Concessions have been made and will continue to be made, but ultimately it doesn’t matter whether you’re a pragmatist or an ideologue as long as the code works. (This is part, but not all, of the reason BitBoy Alex Jones-style rant that SBF sells itself to “suits…with deep pockets” is ridiculous.)

In response to its critics, SBF emphasized that the industry must resist censorship of peer-to-peer transfers and blockchain validation. This has little to do with whether websites or front-ends block users, or whether DeFi applications follow US Treasury Department sanctions. The question is: where do you want to make the effort? Where does it really matter? Is crypto in “primaries” or “general?” »

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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