Bitcoin News and Finance
BCH Defi Project Detoken to Close Its Doors Over Regulatory Climate Toward Crypto Derivatives Skip to main content

BCH Defi Project Detoken to Close Its Doors Over Regulatory Climate Toward Crypto Derivatives

BCH Defi Project Detoken to Close Its Doors Over Regulatory Climate Toward Crypto Derivatives

On August 28, the Bitcoin Cash-based decentralized finance (defi) platform Detoken announced the project is closing its doors on September 4, 2021. The project’s founder, Semyon Germanovich, explained that the main reason for shutting the defi project down is because of the “changing regulatory outlook on cryptocurrency derivatives.”

Defi Project Detoken to Shut Down Operations on September 4

In December 2020, Bitcoin.com News reported on the defi platform called Detoken, a project that allowed users to hedge or long their bitcoin cash (BCH) in a noncustodial fashion. At the same time, the firm at General Protocols launched the Anyhedge technology and the protocol was leveraged by the Detoken platform. Semyon Germanovich explained on Saturday that the Detoken platform was sunsetting the project over regulatory concerns.

“I’m saddened to announce that Detoken will be closing its doors on the 4th September 2021,” Germanovich said. “There are several factors that influenced our decision to close the Detoken platform. The main reason is that it’s become increasingly apparent that Detoken’s business model cannot continue to work given the changing regulatory outlook on cryptocurrency derivatives.” Detoken’s founder added:

I’ve always been a firm believer in financial freedom and privacy, but in order to continue operating Detoken in its current form we’d be forced to introduce know your customer identity checks sooner or later. Unfortunately, the sad reality is that all players in the industry will have to make the same hard decisions about changing their business model or introducing these difficult and friction-inducing checks.

Bitcoin Cash Proponents Look to Smart Bitcoin Cash Chain

The Bitcoin Cash community is now anticipating the benefits of the Smart Bitcoin Cash chain(Smartbch). BCH proponents believe Smartbch could unlock massive potential between the Ethereum (ETH)and Bitcoin Cash (BCH) networks. As time has progressed, the exchange Coinflex revealed that “Coinflex BCH (mainnet) to BCH (SEP20) bridge has been live for an entire week now – with zero issues,” in a blog post announcement. Coinflex added:

We are happy to announce that locking on the BCH chain, releasing BCH (SEP20, the Smartbch format), and going from Smartbch to BCH have all been working smoothly.

Bitcoin cash (BCH) markets have been up over 5% during the last 24 hours and BCH currently holds the 13th largest market capitalization out of 10,000+ crypto assets. BCH is up 24.4% during the last month and year-to-date, bitcoin cash has gained 149%. At the time of writing, bitcoin cash (BCH) has an overall market capitalization of around $12.5 billion.

Bitcoin Cash Fans Bid Detoken Farewell

On Reddit, subscribers on the subreddit forum r/btc were sad to see Detoken close its doors in a Reddit post added on Saturday. “This is the mail I just received from detoken. Despite this bad news, I still hope, new projects [will] use General Protocols,” one user wrote on the forum.

The developer of the General Protocols project, who goes by the name “Emergent Reasons,” replied to the comment and said: “Thanks for the good wishes. We continue to work hard for BCH, p2p electronic cash.” He also left a link to a blog post called: “A peer-to-peer cash strategy for General Protocols” which can be read via the read.cash blogging platform.

What do you think about Detoken having to close its doors over regulatory concerns toward crypto derivatives? Let us know what you think about this subject in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory