BurgerSwap frying high — Binance offers up the latest dish on DeFi menu
Published
3 Monaten ago
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The food-related craze for yield farming is showing no sign of abating. So far this year, the crypto space has been treated to Yam, Shrimp, Spaghetti, Cream, and of course, the most-talked-about dish of recent weeks — Sushi. Next up on the menu is BurgerSwap, the latest decentralized exchange that aims to improve upon Uniswap with a different incentive model and community governance.
It’s essentially a clone of SushiSwap, with some variations and one significant difference. BurgerSwap is the first of its kind to be developed on the EVM-compatible Binance Smart Chain. Binance launched its BSC on Aug. 31.
Only 10 days later, BurgerSwap published its first post on Medium announcing the launch, including confirmation that all tokens on BurgerSwap would have Binance Coin (BNB) pairs, which would provide a fresh use case for yield farmers holding BNB. Shortly after the BurgerSwap launch announcement, BNB’s price shot up over 33% to reach new yearly highs.
The BurgerSwap token is currently ranking high along with Binance’s BUSD stablecoin in terms of transaction volumes on the BSC. Thus, of course, this seems like great news for Binance, particularly given that the company is currently making a sizable push into decentralized finance. But as recent events surrounding SushiSwap and its pseudonymous founder, Chef Nomi, have confirmed, those cooking in the DeFi kitchen have to be able to take the heat.
As things stand, Binance CEO Changpeng Zhao seems to be simultaneously plugging the project while holding it at arm’s length. It could be a sensible strategy because if BurgerSwap ends up following a similar path to SushiSwap, it could mean that the BNB token, or even the Binance brand itself, may end up getting burned.
A similar recipe to SushiSwap?
Even after all the ups and down in DeFi involving projects like Yam Protocol and Yearn.finance, the SushiSwap saga has proved to be particularly gripping. Created as a fork of Uniswap, the SushiSwap founders also adapted the code introducing the SUSHI token for all the yield farmers.
Even before SushiSwap launched its platform, the project was using Uniswap’s liquidity pools to allow users to mine SUSHI, causing the price to spike. Then, as the price of Ether (ETH) suddenly dropped in early September, Chef Nomi made a seemingly fatal decision to sell tokens from the developer fund. Cutting a long story short, Chef Nomi first left the project and then returned the funds while issuing an apology.
Amid all this fishy furor, and even though Binance wasn’t directly involved in the SushiSwap saga, CZ found himself in the position of having to defend the fact that Binance had listed SUSHI tokens despite the risks involved.
An anonymous burger king
It seems fair that CZ can distance Binance from any risk responsibility when only a token listing is in question. However, BurgerSwap appears to have many closer ties to the Binance ecosystem, even despite the cloud of anonymity surrounding the project.
BurgerSwap’s Medium account is authored by someone going by the pseudonym “Burger King.” Two days after the initial launch announcement on Sept. 10, the account published a blog post titled “Who is the Burger King?” The post states very little, including that BurgerSwap is not an anonymous project, and “we just have been busy buidling.”
It goes on to explain that BurgerSwap is an implementation of an Ethereum Improvement Proposal, called ERC-2917, name-dropping proposal co-authors Tony Carson, Mehmet Sabir Kiraz and Süleyman Kardaş. However, the Burger King stops short of stating that any of them are directly involved. The post even goes as far as referring to the ERC-2917 researchers as “they” while referring to the BurgerSwap team as “we.”
Nevertheless, CZ appears to have made the assumption that the post confirms that Carson, Kiraz and Kardaş are behind the project. Albeit, he uses somewhat obfuscatory language in a tweet: “Full disclosure, now I know. I am told they are Turkish blockchain researchers.”
But despite CZ’s assertion, the exact identity of the BurgerSwap founders remains still in doubt. As if to further compound the confusion, the post goes on to elaborate that the BurgerSwap protocol was not a fork or a copy and that the team developed the code from the ground up. And despite the ongoing references to a team, only one developer under the pseudonym “Jason” has made any commits to the code on GitHub. Cointelegraph spoke to the Burger King but perhaps predictably, they didn’t give away many details about the team, stating:
“We have a wide team spread across the US, UK, China and Turkey. We are hiring at a fast pace due to the rapid and unexpected growth since our recent launch and our team does now consist of 15+ people.”
The Medium post does state that Ryan Fang, a co-founder of Ankr and a co-initiator of Bounce.Finance, is an advisor to BurgerSwap. Both of these projects have connections to the Binance ecosystem. Ankr was the first Binance Chain Evolution Proposal 2 project to be selected for community listing on the Binance exchange, while Bounce is based on the Binance Smart Chain. Ankr is also currently collaborating with Binance on a DeFi-focused hackathon.
A later Medium post from the Burger King states that the BurgerSwap team “feels encouraged” to apply for part of Binance’s $100-million DeFi and CeFi Accelerator Fund. Burger King also affirmed this to Cointelegraph:
“We have not raised any money to build BurgerSwap. It was an initiative of a group of people around the DEMAX whitepaper. But this week we have applied for the Binance Smart Chain Accelerator Fund grant.”
Like many DeFi projects, the BurgerSwap code is currently unaudited. However, Burger King did confirm to Cointelegraph that the project is currently in discussion with Quantstamp regarding a code audit.
Risk vs. reward for Binance
It seems obvious to question whether or not Binance is behind the project despite CZ’s attempts to stay at an arms-length distance. Binance has not responded to Cointelegraph’s request for comment.
However, a more significant and pertinent question is about future plans. It would be entirely understandable that Binance doesn’t want to be directly associated with any project that has following the same trail blazed by SushiSwap, at least not while events are so fresh in our collective memory. Nevertheless, if the current success of BurgerSwap spells great news for Binance, the BSC and the BNB token, then a crash could just as easily end up having the direct opposite effect.
Furthermore, if BurgerSwap makes any of the same mistakes as SushiSwap, the damage would be worse for Binance. The company is a globally recognized brand in the crypto space, seen as an incubator to dozens, if not hundreds of projects. As a decentralized development platform, Ethereum is in a far more neutral position. Binance also bears some responsibility for the price of BNB, whereas Ethereum developers have no obvious obligations to ETH holders in this regard.
Regulatory exposure
Binance also has to deal with regulators in many jurisdictions. To develop close ties with potentially risky, unaudited and unregulated DeFi projects may jeopardize its ability to operate as an exchange since DeFi is already at risk of attracting the attention of regulators. Last but not least, Binance has a duty of care for its users. It may be one of the biggest fish in the pond right now, but it has plenty of competitors.
Meanwhile, Ethereum is currently bearing the bulk of the weight of the DeFi ecosystem. The Binance Smart Chain undeniably provides an EVM-compatible alternative with lower fees and less congestion. Even if BurgerSwap isn’t the flagship project of BSC in the future, it could help gain enough initial traction and recognition for developers to recognize the potential for an alternative to Ethereum. Either way, the continuing appetite for yield farming is providing plenty of impetus for DeFi chefs to keep innovating.
Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago
Published
11 Minuten ago
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Dezember 29, 2020
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While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.
In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.
The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.
With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.
Grayscale’s AUM May See More Boost in 2021
While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.
Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.
With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Following the Bitcoin all-time high on Sunday, December 27, Riot Blockchain stock registered 20% gains on Monday’s trading session. The stock has already appreciated by 13x this year. Apart from BTC, investors of Bitcoin mining companies are making a bomb in the market.
Bitcoin mining giant Riot Blockchain is making all the news in the market at the moment. On Monday, December 28, Riot Blockchain Inc (NASDAQ: RIOT) stock price surged a massive 20% surging past $15.5 levels. One of the biggest milestones with the Monday rally is that the Riot Blockchain has clocked a $1 billion market cap.
The latest price rally comes as Riot Blockchain hints at going aggressively on its Bitcoin mining business. Last week, the Riot Blockchain added new S19 Pro Antimers to its bitcoin mining arsenal. The company announced the purchase of an additional 15,000 Bitcoin (BTC) mining machines from Bitmain. The recent purchase also pushes Riot’s total fleet to 37,640 Next-Generation Bitmain Antminers.
Riot said that the fresh purchase of Antminers will help the mining company to attain a 65% jump in its mining hash-rate. RIOT stock has registered an unprecedented rally this year in 2020. RIOT stock has multiplied by 13x this year registering a 1200% surge so far.
Riot Blockchain has issued nearly 17 million shares since November 2020 with its total outstanding shares going to 67.5 million. It has been a phenomenal journey for Riot ever since it ventured into the Bitcoin mining business in October 2017. With valuations less than $50 million back then, Riot has grown more than 20x in size as of its latest stock price.
RIOT Stock and Shares of Other Bitcoin Mining Companies Profit from BTC Bull Run
The recent Bitcoin (BTC) price rally during Q4 2020 has also pushed the stocks of Bitcoin mining companies to new highs. Earlier on Sunday, December 28, the BTC price hit its all-time high of $28,000 in a massive bull run followed by huge institutional inflows.
Moreover, along with the BTC price rally, the Bitcoin hash-rate has jumped significantly since November 2020. Over the last two months, the BTC hash-rate has surged nearly 30% and is currently at 132 TH/s. The surge in the hash-rate suggests higher mining activity for Bitcoin.
As a result, Bitcoin mining companies have been making massive purchases of the BTC mining machines. In addition to Riot Blockchain, other giants like the Marathon Patent Group have made aggressive purchases over the last few months. Just like RIOT, the Marathon Patent Group (NASDAQ: MARA) has registered a phenomenal rally of 18% on Monday, December 28. MARA stock has multiplied investors’ wealth by 12x in 2020. It means the MARA stock has also given phenomenal 1100% returns year-to-date.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
How low could XRP go? Watch these price levels next
Published
7 Stunden ago
on
Dezember 29, 2020
By
XRP price dropped by 30% on Dec. 29 following Coinbase’s decision to suspend trading.
The market sentiment around XRP has become overwhelmingly negative due to the fear of more exchange delistings.
In the near term, XRP faces three key historical support levels at $0.224, $0.1743 and $0.1471.
Where will the XRP price go next?
The ongoing price trend of XRP is not cyclical nor reliant on technical analysis. It is due to investors selling XRP following the suspension of trading across major cryptocurrency exchanges.
On Dec. 29, Coinbase announced that it is suspending the XRP trading pairs on their platform. Paul Grewal, the chief legal officer at Coinbase, wrote:
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time*. We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any changes to timing.”
Given the SEC’s recent action against Ripple, all XRP books have been moved to limit only and Coinbase plans to fully suspend trading in XRP on Tuesday, January 19, 2021, at 10 AM PST. Afterwards, users will continue to retain access to their XRP funds. https://t.co/izreZvgHNl
As Cointelegraph previously reported, analysts anticipated Coinbase to suspend XRP trading after the United States Securities and Exchange Commission filed its complaint.
Coinbase plans to undergo an initial public offering, and it is in the firm’s best interest to remain fully compliant with the regulators in the U.S.
Considering the regulatory uncertainty around XRP, traders have emphasized that technical analysis is of less importance in the short term. Scott Melker, a cryptocurrency trader, said:
“A few people have told me that there’s oversold bullish divergence on the $XRP chart. You are doing it wrong. Charts don’t matter here. You cannot trade in a vacuum. Jesus could come down with Biggie and Tupac and put on a concert for Brad Garlinghouse and I still wouldn’t buy.”
In the foreseeable future, XRP has several major support areas it could potentially recover from. However, these are deep support levels on the weekly chart, which shows that it lacks momentum for a major rebound.
The XRP price has fallen by over 60% in merely two weeks, recording one of its steepest two-week drops in history.
What happens next?
Adam Cochran, a partner at Cinneamhain Ventures, was one of the first to break the story that Coinbase had conversations about suspending XRP trading.
Cochran hinted that the SEC are probably looking into more projects and companies than people realize. He said:
“If you thought my scoop on Coinbase delisting/suspending $XRP was insightful, you’re going to love the next scoop I’m working on, this week. Looks like that SEC is far more active than we thought and sniffing around a number of projects and companies!”
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