By Gonzalo Martínez Mosquera
Last week finished our usual column telling about the challenge that jurists will have to define themselves in the face of the situation generated by organizations that are managed in a decentralized way and that have a foundation or similar that is in charge of proposing and implementing changes in it.
The dilemma arises because the “owners” of these organizations, who make the decisions about the future of these platforms, are the owners of the governance tokens that act as the equivalent of a share in a company but their identity is unknown.
The decentralized nature and its anonymity, however, make its administration complicated. After all, technology changes, new applications are developed and it is important for these platforms to be able to keep up with the demands of their users. Without a clear head to make decisions, everything is uphill.
The solution is usually to “contract” a foundation that makes proposals to the owners of the tokens., who are in charge of voting yes or no for them, and whose implementation is also usually left in charge. To add insult to injury, those who run the foundation are often the same people who developed the platform in the first place.
It was the case of Uniswap, a decentralized crypto exchange (DEX), which we describe just 7 days ago. In September of last year, it had launched its governance token and whose foundation, Uniswap Labs, began to be investigated by the SEC (Securities and Exchange Commission) last week.
In a similar move, dYdX, one of the world’s leading decentralized exchanges specialized in DeFi (Decentralized Finance) solutions, He launched his governance token and gifted it to traders who regularly used the platform.
He did, however, with a particularity, he did not open it to traders whose IP address belongs to the USA. It seems that he took note of what happened with UniSwap and in fact, when one tries to claim his tokens, the platform makes him change the internet page and shows him a message in which he clarifies that to participate in the governance one must go to the page from “dYdX Foundation” which is “independent and has no affiliation with dYdX Trading Inc”.
It seems key to be able to separate the points between the platform and the foundation. The million dollar question is whether the SEC will settle for that format, let me doubt it.
This is the same SEC as now goes on Coinbase, one of the largest centralized exchanges in the world, for its Lend product, which would allow its users to earn 4% interest. That comes to be the alter ego of the famous Binance, trying to show itself as more secure and regulated than the exchange of Chinese origin and without a clear official jurisdiction.
So concerned are regulators with these types of products that the notice was made preemptively before the product was officially launched. They see that on the horizon crypto products are being developed in the world similar to what is usually known as “Shadow Banks”, which include, for example, money market funds and that are dedicated to carrying out banking activities without a license. due regulation of the monetary authority.
Regardless, Coinbase ad that seeks to raise US $ 1,500 million in a private debt issuance in order to continue developing its product and, attention, to make potential acquisitions of other companies.
They are acquisitions that are the order of the day in the ecosystem. Sure, it’s a new and growing world.
This is also the case with Mastercard. The credit card giant reported the purchase of CipherTrace, a company specialized in decentralized Blockchain audits that is used to detect illegal activities on those more than 900 cryptocurrencies.
It is a clear sign that Master wants to advance on the crypto world and that it reconfirms what we have been saying that the world of payments could move to operate on the world of decentralized blockchains.
In fact, the CSBS (the Conference of State Bank Supervisors), He launched its recommendations to promote the “CSBS Uniform Money Transmission Modernization Act”, a law that would unify state regulations for the licensing of money transmitters, which today are granted independently by each state.
It is very relevant news that would not only impact stablecoins but also giants like PayPal and that tends to simplify an industry with highly atomized rules. Last month we explain how those crypto dollars are getting closer and closer to threatening the dominance of that one and it seems that the dollars issued on blockchain would be equivalent to the deposits made in PayPal in the not too distant future.
They are subjects that do not care Microstrategy, a software developer best known for its Bitcoin holdings. In a recent report to the SEC, you just reported a new purchase. This time he acquired 5,050 Bitcoins for approximately US $ 220 million, if we are based on the price at which the digital currency is trading these days. With this purchase, the company already adds about 114,042 Bitcoins, which implies an equivalent of more than US $ 5 billion in digital currency.
These are surprising figures. As much as the approximately US $ 3 billion that the market capitalization of the crypto Algorand grew in a few minutes according to CoinMarkedCap, leading her to compete in the major leagues.
What happened was that that site, which is the most consulted by crypto fans, did not count part of the coins already issued and adjusted the criteria. This led to that Blockchain being in the eyes of everyone, which had an impact on its price that rose approximately 75% in a couple of days.
One of the stakeholders was Anthony Scaramucci, an investor well known for his fleeting stint as Director of Communications for the White House in 2017, who ad a fund of US $ 250 million to invest in developments on that network and that added: “Algorand will be the winner in developing the backbone of what financial services companies and institutions need “.
It will be a major challenge, especially since the other networks are not slowing down.
This is the case, for example, of Cardano, which performed with success the hard fork called “Alonzo” that allowed it to incorporate Smart Contracts to its platform, such as we had anticipated one month ago. That announcement had pushed its native ADA currency up sharply and then down a bit, some say it was profit-taking.
They are Blockchains that are being configured as the possible challengers of Ethereum in the world of smart contracts and DeFi. Let us remember that the platform created by Vitalik Buterin is in a long process of transforming its transaction validation technology to go from Proof of Work to Proof of Stake and that it will allow it to have transaction times similar to its competition.
It is one of the most interesting debates in the crypto world. The question is whether the future in that market is destined to be dominated by a single network or whether, on the contrary, we will see several specializing in different segments of the industry.
It is a mystery that would allow those who manage to reveal it to make some good handles. Fortunately, the function of this column is not to see the future but only to analyze the past, that is more than enough.