- Bitcoin steps down from USD 10,000 resistance but stays within striking distance from a pullback unable to overcome support at USD 9,600
- Tensions are high over the DeFi loan flash hack but investment expert Eric Wall cautions against knee-jerk reactions, blaming instead negligence by “Ethereum influencers”
- Binance is making more steps towards tapping into Singapore’s growing crypto market
Bitcoin has taken a breather after a strong showing above USD 10,000, falling back beneath this critical psychological resistance point, but not straying too far from it. The good news for bulls also is that this current pullback, much like those before it, is happening only at very low volumes and stopping at support near USD 9,600, with a daily low of USD 9,587 (CoinDesk).
We are at a juncture now where Bitcoin markets should reclaim and retain levels closer to USD 10,000 in order to avoid a reversal of trends that will probably mean several more weeks below this key five-digit US dollar valuation.
There is no apparent reason for prices slipping right now, but some clues are pointing to the recent Decentralized Finance (DeFi) platform hack on bZx that resulted in the loss of USD 350,000 in a matter of seconds. That is happened during the ETHDenver conference during bZx’s presentation probably was not only a slap in the face for the platform, but for DeFi in general, a sector that is seeing a lot of attention focused on it this year.
The bZx Fulcrum protocol, which was at fault, was shut down immediately, and its vulnerability had been identified as the pricing Oracle, which which was later shut down by the company as a response to the hack. The pricing Oracle of bZx was the vulnerability that the hacker used to extract the cash from the protocol, pointing to a severe vulnerability in the flash loan system that the hacker exploited.
This is why I don’t believe in DeFi. It’s the worst of both worlds. Most DeFi can be shut down by a centralized party, so it’s just decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization.
So how is this better than what we have now? https://t.co/F1HMSeqb6q
— Charlie Lee [LTC⚡] (@SatoshiLite) February 16, 2020
Some like Litecoin founder Charlie Lee have taken to Twitter to decry the shortcomings of DeFi, saying:
“This is why I don’t believe in DeFi. It’s the worst of both worlds. Most DeFi can be shut down by a centralized party, so it’s just a decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization. So how is this better than what we have now?”
Tweets like “DeFi apps are no different than centralized exchanges because all the contracts have admin keys” is the cheap, boring fast-track to “CT wokeness” these days, forcing me to take the devil’s advocate and point out why that’s sometimes wrong. Warranted retort:
— Eric Wall IS RIGHT (@ercwl) February 17, 2020
Others, however, like Arcane Investments Chief Investment Officer Eric Wall, have jumped to the defence of DeFi, saying that Lee’s “CT (Crypto Twitter) wokeness” arguments are a dismissive way of comparing DeFi solutions to centralized exchanges. He instead says that it is developer or coder negligence that is responsible:
“The problem is that many Ethereum influencers have been asleep at the wheel when it comes to realizing the level of centralized control most DeFi apps are under, making them equally useless (but more harmful) as the sometimes dimwitted Bitcoin maximalists who critize (sic) them.”
In any case, with such a new sector, such things can be expected to be overlooked, and BitcoinNews.com firmly believes new technology and new innovation should always be robustly tested and used for it to mature.
Speaking of centralized exchanges, one of the world’s largest by Bitcoin trading volume, Binance, is widening the open door in Singapore’s crypto market.
Recently, we reported on the new Payment Services Act that went into effect, placing crypto under the jurisdiction of the Monetary Authority of Singapore. This meant that Singapore now regulated digital asset payments and trade using the same guidelines that today already govern traditional fiat payment services. As such, this meant that any parties — including exchanges — that wanted to do business would need to apply for the proper licensing, including standard payment institution, money-changing, and major payment institution licenses.
Bloomberg now says that Binance has gone ahead to do just that, ensuring that regulatory compliance is part of its strategy in Asia. CEO Changpeng Zhao said:
“We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.”
Welcome to Singapore, crypto.
Image Courtesy: Pixabay
The post Trending Bitcoin News and Market Sentiment February 17th, 2020: In Defence of DeFi, Influencer Negligence, Not Centralized Control is to Blame for Flash Loan Hack, Binance Widens Presence in Crypto Singapore appeared first on BitcoinNews.com.