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Dangers of DeFi Hype Surface Following One-Hour Crypto Scam

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The DeFi craze may finally be getting out of control. The crypto community has been in support of the thriving trend, even welcoming to experimentation and accepting of outright worthless tokens. But now that the trend is turning toward scams, it may be time to more closely consider the potential pitfalls of DeFi.

A new scam popped up recently, and within one hour pulled the rug on investors and made off with funds. The situation highlights exactly why this pause in crypto market profits was needed and put an end to so many crypto investors being blinded into potential scams by greed.

DeFi Crypto Trends Turns Dangerous, Scam Pulls The Rug On Project One Hour Later

Greed is a nasty emotion, and one of the “seven deadly sins” and “capital vices.” This vice can even cost you capital if left unchecked, as several crypto investors learned the hard way.

The cryptocurrency market recently hit a level of extreme greed, according to an index designed to monitor market sentiment. The greed comes on the back of substantial gains from assets like Chainlink, a slew of decentralized finance-focused altcoins, Ethereum, and Bitcoin.

Related Reading | Economist On DeFi: Crypto Insiders Aware Tokens Are Worthless, Speculate Anyway

Few categories in crypto have been as hot as DeFi, to the point where new projects were being created out of thin air – much like the ICO boom – with no real use case or merit. It didn’t matter. Crypto insiders were willing to inject liquidity and experiment with worthless tokens. And they were rewarded handsomely for doing so.

It’s led to a whole new wave of tokens being made, and in the midst of it all, scams are appearing.

According to one crypto community member who witnessed the hour-long event unfold live, a new scam popped up, and less than 60 minutes later pulled the project and website, running off with investors funds.

The liquidity pool Uniswap has been one of the biggest benefactors of the DeFi craze. It prompted Tron founder Justin Sun to hop on the bandwagon with a JustSwap pool of his own.

Related Reading | Be Wary Searching For The Next DeFi Star Warns Crypto Advisor

But over in the Ethereum-based waters, the liquidy pool was used to launch a project dubbed Unimoon. Investors rushed to swap Ethereum and other ERC20 tokens for UMF coins.

An hour later, a website created for the project was pulled, and so was the rug. A potential 37 addresses were created and possibly burned in the hour-long scam.

Unfortunately, this is just one of many scams crypto investors must be aware of and avoid. Here is NewsBTC’s list of the top crypto-based scams and how to protect yourself from them.

Source: https://www.newsbtc.com/2020/08/20/dangers-of-defi-hype-surface-following-one-hour-crypto-scam/?utm_source=rss&utm_medium=rss&utm_campaign=dangers-of-defi-hype-surface-following-one-hour-crypto-scam

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Ethereum Prices Return to $620 Resistance on ETH 2.0 Launch Day

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Today marks the long-awaited genesis of Phase 0 in the Ethereum 2.0 upgrade roadmap which stretches ahead for the next couple of years. According to the Beacon Chain countdown, there is now less than seven hours to go before the genesis event spawns the first block on the new chain.

The Beacon Chain explorer reports that there is currently 872,000 ETH staked which equates to approximately $525,000 at today’s prices.

No Native Scaling For a Year

The excitement over the launch is palpable but many are still unaware that the new blockchain will not actually function as anything other than providing staking rewards to validators. All of the smart contracts, dApps, and transactions will continue as usual on the original ETH 1.0 chain.

Researchers at Messari Crypto pointed out;

“When the Beacon Chain launches tomorrow, outside of bootstrapping a network of proof of stake validators, it will have little functionality.”

This also means that there will still be issues with high gas prices when the existing network comes under heavy load which is bound to happen over the next year if DeFi momentum continues and the space evolves even more.

Phase 1 will introduce scaling through sharding, which will introduce 64 parallel side chains to take the load off the main chain and increase throughput. This is unlikely to occur for at least another year from today, and even then ETH 1.0 and 2.0 will operate independently until Phase 1.5 merges them together sometime in 2022.

Either way, the Ethereum community is hyped up over the event which is the culmination of five years of research and development for the world’s largest smart contract and decentralized application network. In his latest Bankless newsletter, David Hoffman aptly said;

“We were born too late to explore the globe, too early to explore the galaxy, but we were born at the perfect moment to explore the infinite whitespace of Ethereum 2.0.”

Ethereum Prices at Resistance

Ethereum prices have returned to their June 2018 price high of $620 just hours before the launch. This level appears to have formed a double top and heavy resistance zone as it did in early 2018. A next leg up could take prices to $800 where further resistance lies, but on the downside, support can be found at around $520.

At the time of press, ETH prices had retreated a little to trade at $605 but the momentum and potential is still with it.

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Source: https://cryptopotato.com/ethereum-prices-return-to-620-resistance-on-eth-2-0-launch-day/

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USDC issuer Centre lands Wall Street veteran David Puth as CEO

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Centre Consortium, the company behind USD Coin, has hired former State Street and JPMorgan executive David Puth as its new chief executive officer, or CEO. 

Centre made the announcement early Tuesday in a Medium post that praised Puth for his leadership credentials. The new hire will help Centre expand its global partnerships across the fintech, crypto, and the traditional financial services industry.

Puth said that he is excited to be joining Centre “at this critical time in the industry,” adding:

“The growth of USDC over the course of 2020 is indicative of what I expect will be the path for Centre business activities and that of future Centre-supported stablecoins.”

Prior to joining Centre, Puth served in several leadership capacities at R3, CLS Group, State Street, and JPMorgan.

Puth is one of many Wall Street veterans trickling into digital asset management as blockchain adoption continues to spread beyond the early-adopter phase. A similar trend is occurring on the investor side, with major institutions expressing interest in Bitcoin and other digital assets.

Centre’s USD Coin was developed by Circle and Coinbase to aid in crypto adoption. With a market cap of just under $3 billion, USDC is the second-largest stablecoin behind Tether.

Stablecoins are likely to serve an ever-growing function as blockchain and traditional finance continue to merge. Centre says it maintains “full reserves of the equivalent fiat currency” that is used to back the USDC stablecoin.

At press time, the total market capitalization of all stablecoins was just under $25.3 billion.

Beyond stablecoins, Centre says digital assets and blockchains are “heralding the most significant transformation of the international monetary system since the formation of the Bretton Woods system more than 75 years ago.” 

Source: https://cointelegraph.com/news/usdc-issuer-centre-lands-wall-street-veteran-david-puth-as-ceo

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The Changes Continue: Facebook’s Libra Has Been Rebranded To Diem

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  • Facebook shook the world last year after announcing plans to introduce a “single global digital currency” dubbed Libra. However, the social media giant’s efforts were quickly scalded by global regulators as the project received massive blowback.
  • Facebook didn’t give up on its idea. Instead, the company decided to rebrand its two main products. Firstly, the Calibra wallet became Novi, and today, Reuters reported that the Libra name had been changed to Diem (meaning ‘day’ in Latin.) 
  • Stuart Levey, CEO of the Geneva-based Diem Association behind the digital coin, confirmed that the name change comes as a direct consequence of the regulatory hurdles. He noted that “the original name was tied to an early iteration of the project that received a difficult reception from regulators. We have dramatically changed that proposition.”
  • The Diem currency would operate as a signal dollar-backed digital coin. Although Levey failed to specify the timing of the launch, recent reports suggested that it may arrive as early as January 2021. 
  • Levey further explained that the Novi team has already begun building a digital wallet that will eventually hold Diem coins. Apart from waiting for approval from Swiss regulators to launch, the Diem Network is also in talks with US federal and state watchdogs. However, Levey didn’t disclose the nature of those negotiations. 
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Source: https://cryptopotato.com/the-changes-continue-facebooks-libra-has-been-rebranded-to-diem/

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