The post Starknet-Based ZKX Faces Investor Outrage Following Sudden Closure appeared first on Blockonomi.
]]>The project’s founder Eduard Jubany Tur said economic challenges and security risks were the reasons for the halt. It is common for startups to fail. In fact, most businesses fail – very few last a decade.
Eduard Jubany Tur, the founder of ZKX, announced on X (formerly Twitter) that the ZKX protocol would cease operations at the end of August due to economic challenges. Tur said that ZKX failed to generate sufficient revenue to cover operational costs.
According to Tur, despite incentive programs offering attractive rewards, participant numbers remained low.
Trading volumes plummeted sharply after launch, directly impacting daily revenue. At the time of the shutdown announcement, ZKX had 200 daily users with trading volumes ranging from $600,000 to $800,000, a dramatic decline from over $30 million in March 2024.
The abrupt shutdown came after ZKX announced in June it secured $7,6 million in a strategic funding with participation from Flowdesk, GCR, and DeWhales. The project was also backed by prominent industry players like Amber Group, StarkWare, Huobi, and Crypto.com.
Following Tur’s statement, investors, including Amber Group, ArkStream Capital and HashKey Capital, expressed strong criticism over the lack of prior notice and transparency.
Amber Group was a key market maker for ZKX, providing liquidity and supporting the project. It held 3 million ZKX tokens, initially through a loan and then through market-making activities. The team said despite price declines, they actively supported ZKX through token purchases to maintain liquidity.
Amber Group criticized ZKX for its lack of communication and the abrupt shutdown without prior notice, which negatively impacted investors and the broader market. The team asked ZKX to “take the necessary actions and accountability to bring more transparency and address the situation constructively.”
Hashkey Capital also criticized ZKX for its lack of communication and the founder’s poor handling of the situation. The firm warned that the lack of accountability will harm a founder’s reputation and future opportunities.
“We hope that founders recognize that a solid reputation is a vital asset in securing future financing. Without accountability, they will struggle to regain trust and opportunities within the industry again,” said Hashkey Capital.
Ye Su, the founding partner of ArkStream Capital, expressed extreme dissatisfaction with the handling of the ZKX project’s closure. He said the ZKX team did not inform about the shutdown and refused to provide financial details or expenditure information.
The closure of ZKX has exposed the vulnerabilities of the Starknet DeFi ecosystem. Starknet has struggled to attract users following the controversial airdrop. The project was criticized after Abdel, one of its developers used the term “e-beggers” to describe community member who were airdrop farmers.
Abdel removed the claims and later made public apologies to those affected by his statements. However, Starknet has struggled to retain user interest.
According to data from Dune Analytics, Starknet’s daily active users are significantly lower compared to the peak of around 16,500 in August last year. The current challenges raise questions about the sustainability of DeFi projects built on Starknet.
Meanwhile, many community members, like popular on-chain investigator ZachXBT, believe ZKX’s sudden termination without warning was potentially a rug pull, especially since it came just a few weeks after the project conducted its token generation event (TGE).
Rug pull perpetrators often avoid providing financial details or explanations for their actions. The founder’s dismissive attitude toward investors and refusal to provide information are also among common signs in many rug cases.
The ZKX token has dropped 98% since the shutdown announcement. ZKX is currently trading at around $0.003, according to CoinGecko’s data.
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]]>The post Compound Finance Faces Controversy Over $24 Million Proposal appeared first on Blockonomi.
]]>Compound Finance, a popular decentralized lending platform, is facing criticism after passing a controversial proposal that allocates 499,000 COMP tokens, worth about $24 million, to a new yield-bearing vault.
The proposal, known as Proposal 289, was narrowly approved on July 28, 2024, sparking debate about the integrity of decentralized autonomous organization (DAO) governance.
The proposal passed with a slim majority of 51%, receiving 682,191 votes in favor and 633,636 against. It was put forward by a group called the “Golden Boys,” led by a COMP token holder known as “Humpy.”
The approved plan will move the tokens to a new vault controlled by this group, supposedly to provide additional yield for COMP holders.
According to the proposal:
“When a user places COMP into the goldCOMP vault, the depositor receives goldCOMP, a semi-liquid wrapped token representing their initial deposit.” The proposal claims these tokens can then be used to create “a passive income stream for COMP holders who plan to hold COMP for a long period of time.”
However, many community members and experts have raised concerns about this development.
Michael Lewellen, a security solutions architect at OpenZeppelin and advisor to Compound Finance, warned of a potential “governance attack” as early as May. Lewellen noted that the proposal “was not discussed prior in the forums and the delegate did not identify itself to the community prior to the proposal being created.”
Critics argue that the Golden Boys accumulated voting power through open market purchases, potentially undermining the principle of decentralized governance. The concern is that decisions may reflect the interests of a few powerful entities rather than the broader community.
Omer Goldberg, CEO of Chaos Labs, a firm focused on DeFi security, commented that the proposal was “poorly communicated” at best and potentially an attack happening in “plain sight” at worst. Goldberg emphasized, “The key lesson here remains clear: if the potential payoff exceeds the cost of exploitation, someone will attempt it.”
This isn’t the first time Humpy has been involved in controversial DAO actions. In 2022, the Ethereum-based Balancer protocol struggled with similar proposals from Humpy. A Messari report described it as a “cat-and-mouse game to control the whale’s profit-seeking activity through governance.” Humpy was also accused of attempting a governance attack on SushiSwap in March 2024.
The passage of Proposal 289 has led to a drop in COMP’s token price, which fell nearly 7% in the 24 hours following the vote. This decline suggests that the broader market views these developments negatively.
In response to criticisms, Humpy defended the proposal, stating, “‘Steal funds’ is a wrongful & misleading phrase, especially coming from compound’s risk specialist. Requested investment goes through a Trust Setup with a constraint set of actions that doesn’t permit stealing/diverting of funds.”
However, questions remain about the actual constraints on the Golden Boys’ control over the new vault. Wintermute’s governance account pointed out that “Any form of withdrawal action (divest) is solely controlled by GoldenBoyzMultisig, meaning that the DAO cannot actually recall funds at any time under their own discretion.”
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]]>The post “Human Error” LI.FI Protocol Reports $11.6 Million Loss & Will Compensate Users appeared first on Blockonomi.
]]>LI.FI, a popular cross-chain blockchain protocol, lost approximately $11.6 million in cryptocurrencies. The incident, which affected 153 wallets across the Ethereum and Arbitrum networks, has been attributed to human error during a smart contract update process.
LI.FI, which allows users to trade across various blockchains, published an incident report on Thursday detailing the exploit.
According to the report, the vulnerability stemmed from a newly deployed smart contract facet that lacked proper validation checks. This oversight allowed attackers to make arbitrary calls to any contract, effectively bypassing security measures.
The company stated, “Upon detecting the security breach, our team immediately activated the incident response plan, successfully disabling the vulnerable facet across all chains. This action contained the threat and prevented any further unauthorized access.”
Post-mortem and next steps for @lifiprotocol partners and community:https://t.co/H4EEiLAHEc pic.twitter.com/TZmx0VtLxo
— LI.FI (@lifiprotocol) July 18, 2024
The exploit primarily affected wallets that had set infinite token approvals, a practice that allows protocols to interact with user funds without requiring repeated permissions.
Assets drained in the attack included popular stablecoins such as USDC, USDT, and DAI. LI.FI emphasized that wallets using finite approvals, which is the default setting in their API, SDK, and widget, were not impacted by this vulnerability.
In their post-mortem report, LI.FI explained that the root cause of the exploit was “an individual human error in overseeing the deployment process.” The new smart contract facet lacked crucial validation steps that were present in other parts of the protocol. This oversight allowed malicious actors to exploit the vulnerability and access user funds.
The incident has raised concerns about the security practices in the decentralized finance (DeFi) sector. It follows a troubling trend of increasing security breaches in the space, with over $1 billion in digital assets lost due to various security incidents in the first half of 2024 alone.
In response to the breach, LI.FI has taken several immediate actions. They have advised users to revoke approvals for the compromised contract addresses and are collaborating with law enforcement authorities and web3 security firms to trace and potentially recover the stolen funds.
“If you are an affected wallet holder, please complete the following form so that we can get in touch with you directly. Your cooperation is greatly appreciated,” the team wrote in their report.
LI.FI has stated that its primary concern is assisting in the recovery of user funds. The company, with backing from its major investors, is exploring options to fully compensate affected users as soon as possible. This move aims to mitigate the impact on users and maintain trust in the protocol.
To prevent similar incidents in the future, LI.FI has outlined several additional security measures.
These include multiple audits, maintaining an auditing firm on retainer, backend infrastructure and API penetration testing, bug bounties, an incident response framework, and extensive security assessments of integrated third-party systems. These steps align with the National Institute of Standards and Technology (NIST) guidelines.
The post “Human Error” LI.FI Protocol Reports $11.6 Million Loss & Will Compensate Users appeared first on Blockonomi.
]]>The post DNS Hijacking Attack Targets Multiple DeFi Protocols appeared first on Blockonomi.
]]>On July 11, 2024, several decentralized finance (DeFi) protocols were hit by a DNS hijacking attack. The incident affected major players in the crypto space, including Compound Finance and Celer Network.
Security experts believe the attack is targeting domains registered through Squarespace, a popular website builder and hosting platform.
The attack was first noticed when users reported that the Compound Finance website (compound.finance) was redirecting to a malicious page.
This fake page contained a “drainer” app designed to steal users’ cryptocurrency tokens. Shortly after, Celer Network announced that it had also been targeted, but its domain monitoring system caught the attack before it could succeed.
Blockchain security firm Blockaid has been closely monitoring the situation. According to Ido Ben-Natan, co-founder and CEO of Blockaid, the attackers targeted DNS records hosted on Squarespace. These records were redirected to IP addresses known for malicious activities.
Developing situation – Multiple DeFi front ends are at risk of hijacking, with a few incidents already taking place, with projects like @compoundfinance and @CelerNetwork getting hacked over the past 24 hours.
We will update this thread with details as we go. pic.twitter.com/iWQR0ByIgB
— Blockaid (@blockaid_) July 11, 2024
Ben-Natan stated that while the full extent of the hijack is not yet known, approximately 228 DeFi protocol front ends could still be at risk.
The attack is believed to be the work of a group known as Inferno Drainer. This group has been active for some time, targeting various DeFi protocols and exploiting different vulnerabilities.
Their wallet kit allows cybercriminals to trick users into signing malicious transactions, giving the attackers control over their digital assets.
Security researchers have identified shared infrastructure used by the Inferno Drainer group, making it easier to track and identify related attacks.
Blockaid has been working closely with the crypto community to maintain an open channel for reporting compromised sites.
The incident has sparked discussions about improving security measures for DeFi protocols. Matthew Gould, founder of Web3 domain provider Unstoppable Domains, suggested creating verified on-chain records for domains. This would add an extra layer of protection for browsers and other systems to check, helping to reduce the risk of DNS attacks.
Gould also proposed a new feature where DNS updates would require a signature from the user’s wallet. This would make it much harder for hackers, as they would need to compromise both the registrar and the user’s wallet separately.
In response to the attack, several crypto projects and platforms have taken action. MetaMask, a popular Web3 wallet, announced that it is working to warn users of potentially compromised apps associated with the attack.
Users attempting to transact on any known site involved in the current attack will see a warning provided by Blockaid.
For those of you using MetaMask, you’ll see a warning provided by @blockaid_ if you attempt to transact on any known site that’s involved in this current attack. #mmsecurity https://t.co/Fk0sAjaeit
— MetaMask ???????? (@MetaMask) July 11, 2024
The crypto community has rallied to spread awareness and minimize potential damage. DefiLlama developer 0xngmi shared a list of over 100 DeFi protocols that may be affected by the attack, including well-known names like Pendle Finance, dYdX, Polymarket, and LooksRare.
The post DNS Hijacking Attack Targets Multiple DeFi Protocols appeared first on Blockonomi.
]]>The post Hinkal Launches Shared Privacy Protocol for Cross-Chain DeFi Privacy appeared first on Blockonomi.
]]>Hinkal, a multi-chain privacy layer for confidential on-chain transactions, has announced the upcoming launch of its Shared Privacy Protocol. This innovative protocol aims to enable cross-chain privacy through a mechanism called anonymity staking, potentially revolutionizing how privacy is handled in the blockchain space.
The announcement comes at a time when institutional investors are rapidly entering crypto markets, bringing with them a demand for the same level of privacy in DeFi trading that they’ve long enjoyed in traditional equities markets. However, achieving complete privacy in DeFi has been a significant challenge due to the fragmentation of liquidity across more than 200 Layer-1 and Layer-2 blockchains.
Hinkal’s Shared Privacy Protocol addresses this challenge by establishing a unified pool of shielded liquidity across all chains. This approach, which the company likens to “EigenLayer for Privacy,” allows users to bootstrap Shielded Total Value Locked (TVL) in a manner similar to how EigenLayer enabled projects to bootstrap security.
The protocol introduces a concept of horizontal privacy integration, where the Shielded TVL can be mirrored across different blockchains such as Arbitrum or Solana.
This allows traders and decentralized applications (dApps) across the entire blockchain ecosystem to leverage the full value of the Shielded TVL pool, regardless of which specific chain they’re operating on.
Georgi Koreli, co-founder and CEO of Hinkal, emphasized the importance of this development:
“Ensuring complete privacy on-chain is a critical step in enabling the full adoption of crypto as an asset class across the institutional financial sector. The launch of the Shared Privacy Protocol is a key milestone in unleashing the power of community and breaking privacy barriers in crypto.”
The Shared Privacy Protocol offers benefits to various stakeholders in the DeFi ecosystem. Stakers can deploy their native and staked assets to the protocol, generating additional yield while maintaining the flexibility to trade yield tokens on other dApps.
Traders benefit from an expanded Shielded pool, which further obfuscates their trading strategies and allows them to maximize deployed capital across multiple chains. For developers of decentralized exchanges and dApps, the protocol offers a seamless way to integrate new privacy capabilities into their platforms.
This approach to privacy in DeFi mirrors the secure standards of traditional finance, allowing both individual and institutional users to manage assets and transact on major dApps without publicly disclosing wallet addresses. This level of privacy is crucial for institutional adoption of DeFi, as it protects trading strategies and prevents front-running.
Evgeny Gokhberg, founder of Re7 Capital and an investor in Hinkal, highlighted the importance of this solution for institutional players:
“A compliant solution enabling discrete liquidations without disclosing transaction data is necessary for us to efficiently operate in DeFi markets, and Hinkal’s Shared Privacy Protocol is the solution we have been searching for a long time.”
Hinkal, founded by Stanford graduate Giorgi Koreli and his Ph.D. brother Nika Koreli, is designed as an institutional-grade protocol providing users with full control over their on-chain assets.
The protocol uses zero-knowledge (ZK) proofs to enable private smart contract wallet experiences, allowing users to interact with their favorite dApps directly from private addresses without needing to withdraw assets for obfuscation.
The post Hinkal Launches Shared Privacy Protocol for Cross-Chain DeFi Privacy appeared first on Blockonomi.
]]>The post Andromeda & Injective Announce Strategic DeFi Partnership appeared first on Blockonomi.
]]>Andromeda and Injective have announced a strategic partnership. The collaboration, revealed on June 27th, 2024, in Sigonella, Sicily, Italy, aims to accelerate DeFi adoption by combining the strengths of both platforms.
Andromeda, known for its Web3 Operating System called aOS, is joining hands with Injective, a blockchain specifically designed for financial applications. This integration is expected to unlock new economic opportunities and use cases in the world of decentralized finance.
Andromeda and @Injective: A New Era of DeFi
We're excited to announce our strategic partnership to accelerate #DeFi adoption by combining Andromeda's #aOS and Injective's fast finance blockchain.
????This collaboration enhances cross-chain capabilities and streamlines asset… pic.twitter.com/07UfIJLAjX
— Andromeda (@AndromedaProt) June 27, 2024
One of the main goals of this partnership is to enhance cross-chain capabilities. By integrating Andromeda’s on-chain Operating System with Injective’s Layer 1 protocol, the two companies hope to create a unified platform where users can access a wide range of decentralized applications and DeFi functions.
This move is expected to break down the barriers that have long hindered cross-chain interactions in the DeFi sector.
The collaboration also focuses on streamlining asset management. A key objective is to implement a solution for tokenized asset management within a unified trading platform.
This feature will allow users to fractionalize digital assets, which can then be tokenized and traded. The result is expected to be greater investment opportunities and increased asset diversification for users.
Mant Hawkins, an Andromeda Core Contributor, explained the vision behind the partnership:
“We believe that by executing our L1 distribution model, we’ll be integrating Andromeda’s on-chain Operating System with Injective’s scalable Layer 1 protocol and will unify networks, enabling users to access a diverse array of decentralized applications and DeFi functionalities within a singular platform.”
This integration is set to benefit both the Andromeda and Injective communities. Developers will have the opportunity to create a new wave of DeFi applications that leverage the unique features of both ecosystems. Users, in turn, will gain access to a unified platform supporting innovative financial products.
The partnership is expected to drive innovation in several areas. The combined strengths of aOS and Injective will allow for the creation of robust, scalable solutions that can meet the evolving needs of the DeFi space. This could lead to improvements in areas such as portfolio management, trading efficiency, and investment diversification.
One of the most exciting aspects of this collaboration is the potential for fractionalizing high-value assets. Through tokenization, users may be able to invest in expensive assets without needing to purchase them outright. This could open up new investment opportunities and allow for greater flexibility in portfolio management.
The integration also aims to make the technology more user-friendly. The goal is to create seamless back-end connectivity that’s invisible to end users, removing the need for coding skills or specialized knowledge. This approach could make DeFi more accessible to a wider audience, potentially driving faster innovation and adoption.
As part of this partnership, Andromeda’s Operating System (aOS) has already been deployed on Injective’s Mainnet. This move allows developers to start building on Injective using aOS, opening up new possibilities for creating DeFi applications.
To encourage developer participation, Andromeda has set up a Hackerboard where developers can submit their ADO (Andromeda Decentralized Object) builds. Selected submissions may be rewarded, providing an incentive for innovation within the ecosystem.
The post Andromeda & Injective Announce Strategic DeFi Partnership appeared first on Blockonomi.
]]>The post Curve DAO Token (CRV) Price Plunges 30% Amid Founder’s Liquidation appeared first on Blockonomi.
]]>The decentralized finance (DeFi) space has been rocked by the recent plunge in the price of Curve DAO token (CRV), which has fallen by nearly 30% in the past 24 hours.
The sharp decline in CRV’s value has been linked to the liquidation of on-chain loan positions held by Curve Finance founder Michael Egorov, who used CRV tokens as collateral.
According to data from blockchain analytics firms Lookonchain and Arkham, Egorov currently has 111.87 million CRV tokens, worth approximately $33.87 million, as collateral against $20.6 million in debt across four DeFi platforms: Inverse, UwU Lend, Fraxlend, and Curve’s LlamaLend. As the price of CRV continues to fall, Egorov’s loan positions are facing increased liquidation risk.
The #Curvefi founder(Michale Egorov) is being liquidated!
He currently has 111.87M $CRV($33.87M) in collateral and $20.6M in debt on 4 platforms.https://t.co/WM1nW8JKwU pic.twitter.com/huwgetBXuS
— Lookonchain (@lookonchain) June 13, 2024
Earlier on Thursday, Egorov began to face liquidations on his position with Inverse, prompting him to take measures to mitigate further risks.
On-chain data shows that the Curve founder has started repaying borrowed stablecoins, such as DOLA, to maintain his loan health. However, despite these efforts, Egorov’s loan positions for USDT and DAI stablecoins on UwU Lend saw additional liquidations worth over $5 million.
The recent developments have raised concerns among investors about the future of the Curve Finance project and the potential impact on the broader DeFi ecosystem.
CRV is used as a trading pair and ballast in various trading pools across the DeFi space, and the liquidation of such a large position has started to put pressure on other protocols.
In August 2023, Egorov sold 106 million CRV tokens for $46 million in an attempt to reduce potential liquidation risks associated with his outstanding debt across various DeFi platforms. However, the current situation suggests that the founder’s financial troubles persist.
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]]>The post zkSync’s ZK Token Airdrop Sparks Controversy Over Sybil Filtering appeared first on Blockonomi.
]]>zkSync, an Ethereum zero-knowledge (ZK) layer-2 scaling solution, has come under fire following the announcement of its ZK token airdrop.
The project, which aims to reward long-time supporters since its Mainnet development in 2023, has faced criticism from industry experts and rival networks for its perceived lack of anti-Sybil measures and unfair token distribution.
Mudit Gupta, the information security chief of rival layer-2 network Polygon, described the ZK token airdrop as possibly the “most farmable and farmed airdrop ever,” claiming that zkSync had “almost no Sybil filtering.”
zkSync airdrop is out.
Most farmable and farmed airdrop ever probably.
Almost no sybil filtering as far as I can see.
Anyone who knew the criteria could've easily farmed the shit out of it.
Makes you appreciate what LayerZero is trying to do with sybil filtering.
— Mudit Gupta (@Mudit__Gupta) June 11, 2024
This sentiment was echoed by Cinneamhain Ventures partner Adam Cochran, who stated that the airdrop criteria were “easy to not hit as a real user, and easy to hit as a farmer.”
I love the zkSync guys but damn that was not a well planned airdrop from a sybil perspective.
Those criteria are easy to not hit as a real user, and easy to hit as a farmer, and had no anti-sybil program.
Real users could easily use 1-2 dapps or only a handful of tokens on your… pic.twitter.com/PiqprIbKJ3
— Adam Cochran (adamscochran.eth) (@adamscochran) June 11, 2024
The controversy surrounding the airdrop has led to a significant drop in zkSync’s total value locked (TVL).
According to DeFiLlama, the TVL fell from nearly $200 million to around $128 million following the announcement of the ZK token distribution details. This decrease in TVL indicates a loss of confidence among users who felt marginalized by the distribution strategy.
zkSync has announced that 17.5% of the total 21 billion ZK token supply will be distributed to early users through a one-time airdrop on June 17.
The project clarified that 89% of this allocation is intended for users who have made significant network transactions, while the remaining 11% is reserved for developers and researchers. However, this clarification has not quelled the dissatisfaction among some users who feel inadequately rewarded.
zkSync has stressed its commitment to transparency and community engagement, inviting further feedback to better align future decisions with user expectations.
The project maintains that its token distribution plan, which allocates 16.1% of tokens to the team and 17.2% to investors, with the rest dedicated to ecosystem initiatives, is designed to support a growing ecosystem as new users join the network.
As the ZK token launch date approaches, the debate surrounding the fairness and effectiveness of zkSync’s airdrop continues.
Some users predict that the token could reach $1 at launch, pre-listing platforms like Whales Market show the price trading at around $0.34.
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]]>The post Uniswap Fights Back: Responds to SEC’s Wells Notice, Calls Case “Weak and Wrong” appeared first on Blockonomi.
]]>The notice, which typically precedes formal charges, alleges that the Uniswap DEX functions as an unregistered securities exchange and broker-dealer, with the platform’s native UNI token representing an investment contract.
In a comprehensive 43-page submission published on Tuesday, Uniswap Labs laid out its case for why the SEC should not pursue legal action against them.
The company argues that the regulator’s “aggressive theories” are an attempt to extend its reach beyond its jurisdiction and that the majority of trading on the platform involves commodities such as Ethereum (ETH), Wrapped Bitcoin (WBTC), and stablecoins, which account for approximately 65% of the total trading volume.
Uniswap Labs’ Chief Legal Officer, Martin Ammori, took to social media to further explain the company’s stance, stating that the SEC’s arguments are “weak and wrong” and rest on the false assumption that nearly all tokens are securities.
Today, @Uniswap has submitted our response to the SEC Wells notice we received in April.
The Uniswap protocol represents an innovation in commerce that solves long-standing problems– with near-instant, intermediary-free, secure trading of any assets. It is the first widely used…
— Marvin Ammori (@ammori) May 21, 2024
Ammori emphasized that tokens are merely a file format, like PDFs or JPEGs, and can represent any value, with the vast majority representing commodities, memes, and access to useful networks.
The company also highlighted the decentralized nature of the Uniswap protocol, noting that it does not maintain user accounts or collect personal data, which complicates the SEC’s push for increased transparency and regulatory oversight.
Uniswap Labs believes that Congressional intervention is necessary to properly regulate the crypto industry and that the SEC should embrace open-source technology that improves outdated commercial and financial systems instead of trying to litigate it out of existence.
The response from Uniswap Labs comes amidst a broader crackdown by the SEC on the crypto sector, with a particular focus on Ethereum and decentralized finance (DeFi) players in recent months.
The agency has issued Wells notices, filed lawsuits, or reached settlements with several crypto firms, including ShapeShift, TradeStation, and Consensys, which preemptively sued the SEC in April, alleging overreach on the part of the regulator.
The industry argues that if Ethereum’s native token, ETH, is classified as a security, it could have far-reaching implications for the future of the Ethereum network and many adjacent crypto firms. Exchanges would be forced to choose between registering with the SEC or delisting ETH altogether.
Despite the looming legal challenges, Uniswap’s trading volume remained strong in the days following the Wells notice, with nearly $3 trillion in volume recorded.
The DEX continues to be one of the largest decentralized exchanges by volume, bringing in $71.45 billion in spot volume in April alone, which accounted for 56% of the month’s total volume.
As the crypto community awaits the SEC’s next move, Uniswap Labs remains confident in its position, with Ammori stating,
“We’re confident that our work is on the right side of history. The SEC should not devote its taxpayer-funded resources to bringing a case against us.”
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]]>The post Shiba Inu (SHIB) Price Surges as ShibaSwap Launches on Shibarium appeared first on Blockonomi.
]]>The excitement surrounding the project stems from the announcement that ShibaSwap, the decentralized exchange (DEX) associated with Shiba Inu, is now hosted on Shibarium, the project’s layer-2 scaling solution.
The transition of ShibaSwap from Ethereum to Shibarium marks an important development for the Shiba Inu ecosystem.
With the DEX now operating on Shibarium, project innovators have a ready marketplace to host their projects, potentially encouraging an influx of developers into the ecosystem. This move is expected to further strengthen the already vibrant Shiba Inu community.
???? #ShibArmy the wait is finally over — ShibaSwap is coming home to Shibarium!
ShibaSwap is more than just an exchange; it's where our community’s spirit meets innovation, where your community tokens not only exist but thrive pic.twitter.com/fVGEZjynIJ
— Shib (@Shibtoken) May 15, 2024
One of the key benefits of ShibaSwap’s migration to Shibarium is the potential impact on the total transaction count on the L2 platform.
The daily transaction count on Shibarium has flattened out since at least April 20, but with more swaps taking place on the platform, this metric is likely to revive.
An increase in transactions could also contribute to the growth in the total number of SHIB tokens sent to burn addresses, effectively reducing the token’s circulating supply.
The Shiba Inu price revival can also be attributed to the realization of the impact of the DEX on staking within the Shibarium ecosystem.
As more users engage in staking and provide liquidity, the circulating supply of SHIB may be better controlled, potentially influencing the token’s price valuation over time.
The ShibaSwap upgrade brings a host of new features to the platform, including a new dashboard, improved user experience, discovery charts for new and trending tokens, and a streamlined onboarding process for new tokens on the DEX.
These enhancements are expected to attract more users and developers to the Shiba Inu ecosystem, further driving its growth and adoption.
Currently, the price of Shiba Inu stands at $0.00002549, having surpassed the $0.000023 resistance point that had been a crucial barrier for over a month.
With this breakthrough, the token may continue its upward trajectory and potentially reclaim the $0.00003 mark. While the token’s future outlook is supported by a confluence of fundamentals, the launch of ShibaSwap on Shibarium is likely to play a significant role in shaping its trajectory.
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