DeFi projects like Synthetix and Chainlink are addressed in the Cryptocurrency Act of 2020

A recently surfaced bill called the “Cryptocurrency Act of 2020” aims to delegate regulators power over blockchain based currency, and doesn’t fail to mention recent DeFi innovations in the literature. Specifically, the bill classifies synthetic derivatives, like those used on Synthetix exchange, as cryptocurrencies.

“synthetic derivatives that are determined by decentralized oracles or smart contracts; and collateralized by crypto-commodities, other crypto-currencies, or crypto-securities.”

Along with the clarification of synthetic derivative products, the Cryptocurrency Act defined what decentralized oracles are, probably because of their increased usage in DeFi projects.

“A ‘decentralized oracle’ means a service that sends and verifies real world data from external sources outside of a blockchain and submits such information to smart contracts that rest on the blockchain, thus triggering the execution of predefined functions of the smart contract.”

There are two protocols that come to mind when thinking of decentralized oracles and synthetic derivatives – Synthetix and Augur. Surely, there are many others that operate similarly, but these two might be the most well known.

Synthetix and Augur are both built on the Ethereum network and are classified fall under a decentralized finance category. Not only are they DeFi, Synthetix is a relatively new DeFi exchange that not many mainstream crypto traders are aware of or have participated in.

The feds have been notoriously behind the times when it comes to regulating in the crypto space, so it’s a bit surprising (and flattering) to see that they are keeping a close eye on the DeFi space. At the same time, it makes you wonder how closely they plan on monitoring decentralized products that have no fiat on ramping. Both Synthetix and Augur operate much differently than regulated exchanges do, with no KYC policies, no day trading limits, potential for leverage and the list goes on.

Sentiments of excitement and fear are being thrown around Twitter as people celebrate theF recognition and wonder what it will entail.

 

 

 

OpenLibra’s history of potentially misleading investors

This morning, a PR rep for OpenLink’s Lucas Geiger asked me to correct a post which referenced their claim to having a ChainLink contributor in their “core team and community.” By this time, they had completely removed said list from their website. Apparently, this might not be the first time people in association with OpenLibra have mislead investors about who would be involved with a project.

OpenLink PR explaining Greiger's mistake

On Twitter, investor Andrew Lee said that he and friends had invested $1 million into Geiger’s last project called Wireline. To his dismay, some of the key reasons he put up a large sum of money turned out to be alleged “false promises” from Geiger’s team.

He tweeted that he was promised by Wireline advisor Sizhao Yang that certain people would be invested in the Wireline project.

“when i invested in wireline, i was promised the investors were: @JUN_Omise @QtumOfficial wendell davis @ethereumecf @photomatt @hashed_official @golemproject @AugurProject  i’m not sure if they’re still invested”

As time went on, words never came to fruition. He tried to message Geiger repeatedly and would sometimes get a response, but never got answers.

Lee posted screenshots on Twitter of him trying to reach out to Geiger.

Lee messaging Greiger about WireLine message

This means that for potentially two projects in a row, OpenLibra’s creator has been misleading investors. Lee says that since his initial tweet, multiple people have privately messaged him claiming that OpenLibra has marketed their involvement without consent.

Chainlink (LINK) is now available on Coinbase

Today, Coinbase announced that it will be supporting Chainlink (LINK) on their website as well as their Android and iOS apps. Customers will be able to buy, sell, transfer, receive, and store the currency.

Per the exchange’s post on Medium:

Starting today, Coinbase supports Chainlink (LINK) at Coinbase.com and in the Coinbase Android and iOS apps. Coinbase customers can now buy, sell, convert, send, receive, or store LINK.

Chainlink (LINK) is an Ethereum token that powers the Chainlink decentralized oracle network. This network makes it possible for smart contracts on Ethereum to securely connect to external data sources, APIs, and payment systems.

According to Coinbase, LINK will be available to customers in most areas. It will, however not be available to people who reside in the state of New York as of now. That being said, additional jurisdictions will likely be added at a later date.

In September, Coinbase announced a new listing process that was designed partly to accelerate the addition of more cryptocurrencies. The exchange is also investing in tools that will help people understand and explore cryptocurrencies.