Altcoin Roundup: DeFi Token Prices Down, But Utility is on the Rise

Audy Castañeda
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Altcoin Roundup: DeFi Token Prices Down, But Utility is on the Rise

The decentralized finance (DeFi) sector has been sitting in the backseat from a frenzy in the summer of 2020 to the first quarter of 2021.

Investors are currently debating whether the cryptocurrency sector is in a bull or bear market, which means it is a good time to check the state of DeFi and identify which protocols could be setting new trends.

Below, we take a look at the top-ranked DeFi protocols and a look at the strategies used by users of these protocols.

Stablecoins are the Foundation of DeFi

Stablecoin-related DeFi protocols are the cornerstone of the DeFi ecosystem and Curve is so far the go-to protocol when it comes to stablecoin staking.

Data from Defi Llama shows that four of the top five protocols in terms of total value locked (TVL) relate to the creation and management of stablecoins.

It is important to note that while these protocols have emerged on top when it comes to TVL, the value of their native tokens has dropped significantly from their 2021 all-time highs.

The main takeaway is that participating in the stablecoin aspect of the DeFi market through staking and farming has offered consistent returns, while also earning governance tokens for these platforms as an added bonus to help mitigate the decline in the token values.

Today, stablecoins play an integral role in the overall smooth running of DeFi, which continues to expand as new protocols like Frax Share and Neutrino rise to the ranks of TVL amid the growing number of interconnected Blockchain networks.

Lending and Borrowing: the Core of DeFi Value Proposition

Lending platforms are another key component of the DeFi ecosystem and one of the main features that investors can interact with even during a bear market. AAVE and Compound are the current leaders with respective TVLs of $12.09 billion and $6.65 billion.

Like other stablecoin protocols, AAVE and Compound saw the value of their native tokens peak in 2021 and both have been on a prolonged slide for months.

AAVE’s TVL growth outpaced Compound largely due to its cross-chain integration of Polygon and Avalanche, which increased the number of supported assets and allowed users to avoid high gas fees on the Ethereum network.

Long-term, risk-averse cryptocurrency holders can benefit from simply lending their tokens for a modest return.

Liquid Staking Adds More Utility to DeFi

The growing popularity of liquid staking is also adding new utility to decentralized finance. Liquid staking protocols like Lido Finance, which originally started as an Ethereum staking solution but has since expanded its support to Terra (LUNA), Solana (SOL), Kusama (KSM), and Polygon (MATIC).

Data from Defi Llama shows that Lido’s TVL hit a new all-time high of $14.96 billion on March 10, as the addition of new assets continues to attract more value to the protocol.

On Lido, users can stake Ether and Solana and receive stETH or stSOL, which people can use as collateral in AAVE to borrow stablecoins. These assets can be used to trade or farm, thus increasing the total return earned on the original asset staked.

Other notable liquid staking protocols are the Eth2 staking provider StakeWise, the Cosmos-based pStake protocol, and Stader Labs.

By Audy Castaneda

Kadena Price Soars 40% Following New Protocol Launch and Binance Listing

Audy Castañeda
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Its arrival on Binance and the launch of a new protocol focused on interoperability caused a rapid 40% spike in the price of KDA.

Kadena is a Proof-of-Work (PoW) Blockchain. Kadena uses a smart contract language called “Pact”, which is a secure smart contract language with built-in automated auditing. KDA is the native utility token designed to pay network transaction fees.

Binance announced the addition of Kadena (KDA) to its listings and the trading of KDA/BTC, KDA/BUSD, and KDA/USDT pairs starting March 11, 2022, at 11:30 a.m. (UTC).

Kadena (KDA) is a project that has reaped rewards for its forward-thinking development approach despite the weakness of the crypto market in general, and the single-layer proof-of-work Blockchain protocol has seen its price reverse direction recently.

Data from Cointelegraph Markets Pro and TradingView show that the price of KDA soared 40%, going from a low of $5.94 in the early hours of March 11 to a high of $8.28, while its daily trading volume soared 784% to USD 325 million.

Three reasons for KDA’s recent price growth include its arrival on Binance, the launch of the first decentralized exchange on the Kadena network, and upcoming roadmap plans that include the launch of an NFT standard and native wrapped token.

KDA’s Arrival on Binance

The biggest driver of KDA was the March 11 listing on Binance:

#Binance will list @kadena_io $KDAhttps://t.co/b4yPmq6xu3

— Binance (@binance) March 11, 2022

Following the announcement, daily trading volume soared from an average of $38 million to $325 million during trading on Friday. The KuCoin exchange also saw high trading volume, with $117.4 million in trades before the listing became effective on Binance.

Launch of New Projects in the Kadena Network

A second development that helped drive the price of KDA was the launch of new protocols on the network, including Kaddex, the first decentralized exchange in the project’s ecosystem to offer gasless trading.

Kaddex also announced an integration with Simplex that will provide an on-ramp to the growing decentralized finance ecosystem.

Some of the other protocols that were recently launched and integrated with Kadena include Hypercent Launchpad, a platform that makes it easy to launch verified projects on Kadena, and the liquidity provider, ZoidPay.

Next Developments on the Roadmap: Possibly Bullish

A third contributing factor in drawing attention to Kadena is the project’s upcoming roadmap milestones, which include the release of a native NFT standard called Marmalade.

Other developments planned on Kadena’s roadmap include the launch of native wrapped tokens such as kBTC, kETH, and kUSD, a push for more listings on US and global exchanges, the development of the loans, and the launch of a sustainable mining initiative.

The developers behind the project have also announced plans to launch testnets for a bridge between Kadena and the Ethereum Virtual Machine (EVM), as well as a bridge from Kadena to Cosmos that will facilitate interoperability with other popular Blockchain ecosystems.

How to Buy KDA Safely

The live price of KDA is $6.7732136 per (KDA/USD) today, March 11, 2022, with a current market cap of $1,160,167,501.02 USD. The 24-hour trading volume is $327,859,377.28 USD. The KDA to USD price updates in real-time. Kadena changed +8.96% in the last 24 hours. It has a circulating supply of $171,287,601.12 USD.

Most people only look at Kadena’s charts to form an opinion on the state of the coin. It is necessary to see further and carry out a good analysis of its entire ecosystem. To carry out the Kadena analysis, you can use the following parameters that encompass the following fields:

  • Feasibility and status of the Kadena project.
  • Number of wallets, nodes, current transactions, and the progression of Kadena.
  • Total, current KDA supply and its distribution among users.
  • Community and social impact of Kadena.
  • Mining or generation – Form and rate of issuance of KDA.
  • The Work of Kadena Developers.
  • Trajectory in time, graphs and sales volumes.
  • Kadena market cap.
  • Partners of Kadena.

Buying cryptocurrencies like Kadena can become a difficult task for those who are not used to dealing with cryptocurrencies. We will try to help the most inexperienced in the next section.

Leaving the subject aside for a moment, the cryptocurrency markets recommended for beginners are the following: Bit2Me, and Coinbase. These two platforms are the easiest to use and have a good amount of cryptocurrencies. They are perfect for people who do not want complications.

By Audy Castaneda

The Government of Dubai Plans to Regulate Cryptocurrencies to Promote their Development

Alexander Salazar
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The Government of Dubai Plans to Regulate Cryptocurrencies to Promote their Development

The law and the regulatory agency will become vital to allow the growth of cryptocurrencies and protect investors in Dubai. Despite the concern of whether the regulation will be positive, there has been proof that a clear regulatory framework reduces risks and uncertainty.

The Prime Minister of the United Arab Emirates (UAE) and Ruler of Dubai announced that his government would regulate cryptocurrencies. He said they are building the regulatory foundations for developing crypto assets in that territory.

In that way, Dubai joins Singapore, the United States, the United Kingdom, and El Salvador regarding laws on cryptocurrencies. Those countries lead the way in creating regulations to control the use and mining of those digital assets.

The Regulation of Cryptocurrencies Is Crucial to Promote Their Development

Sheikh Mohammed bin Rashid, the ruler of Dubai, said that the UAE had enacted its first law to govern virtual assets. However, they have also established an independent regulator to manage the cryptocurrency sector. It will carry the name Virtual Assets Regulatory Authority (VARA) of Dubai.

The law aims to protect investors and design highly guaranteed international standards for the governance of the cryptocurrency industry. Other countries interested in those assets could follow in the footsteps of the United Arab Emirates.

The virtual assets law and the independent regulator will become vital to establish the position of the UAE in that sector. The Sheikh explained that they would allow cryptocurrencies to grow and protect investors in Dubai.

The authority will seek to organize the issuance and trade of crypto assets and grant crypto service providers a permit to operate.

In other words, VARA will supervise the growth of the cryptocurrency market concerning regulation, licensing, and governance.

Dubai Might Become a Cryptocurrency Hub

The UAE is a federation of seven emirates, and the financial powerhouse of the region, Dubai, has driven the development of the cryptocurrency market. Another emirate, Abu Dhabi, has also taken decisive steps to drive the sector. However, nobody knows how the legal framework on digital assets will affect the duty-free zones.

Furthermore, there is a common concern of whether the regulation will be positive for the cryptocurrency market. However, the answer to that question is not as simple as it seems at first glance.

There has been proof that proper regulation can enhance the development of a market like that of crypto assets. By providing a clear regulatory framework, the levels of risks and uncertainty will drop, factors that keep investments away.

In that regard, Binance CEO Changpeng Zhao praised the creation of VARA by Dubai. He also stated that regulatory clarity is essential for the cryptocurrency ecosystem to function correctly in that nation.

VARA will require residents to register before carrying out activities related to crypto-assets. In that way, the regulatory agency will control how people use their money.

The growth of the cryptocurrency sector is becoming increasingly evident worldwide, and the authorities of many countries are aware of that. For that reason, they create regulations to manage the development of cryptocurrencies and protect investors.

By Alexander Salazar

While Some Countries Adopt Bitcoin, Others Reject It

Alexander Salazar
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While Some Countries Adopt Bitcoin, Others Reject It

The relations between Russia, China, and the United States will determine the adoption of Bitcoin worldwide. Some countries have changed their positions on the cryptocurrency due to the conflict between Russia and Ukraine.

The current war between Russia and Ukraine has impacted the cryptocurrency markets since States have taken a position on Bitcoin. Even countries not directly involved in the conflict, like the United States, have turned their eyes against crypto assets.

Once Russia invaded Ukraine, the United States decided to sanction it to suffocate its economy and pressure it to end hostilities. Before that, the Russian central bank proposed outlawing Bitcoin in the country, as happened in China. However, the current economic pressure has made Bitcoin the best option to escape from those restrictions.

For that reason, the Russian Legislative Assembly has advanced in discussions on a bill to regulate cryptocurrencies. However, the regulation on Bitcoin does not imply its adoption since banks work as the only exchanges where people trade without self-custody wallets.

Besides Russia, the United States seems to have also changed its position on Bitcoin. Joe Biden recently signed a long-awaited executive order to regulate cryptocurrencies. The statements of some government representatives indicate that the country does not seek to ban the cryptocurrency.

The Countries of the World to Watch the Positions of Their Allies

Even though states are theoretically independent, world trade and globalization can influence the trends in their economies. For example, China has decided to ban activities with Bitcoin, but it could be open to trade with the cryptocurrency to help Russia.

It seems that the rest of the world will watch the positions that their allies take on the pioneering cryptocurrency. For example, many Latin American countries will join the United States if they decide to ban it, an unlikely scenario.

There are exceptions like El Salvador, which the International Monetary Fund (IMF) has warned about its position on Bitcoin. The Central American nation decided to continue on its pro-Bitcoin path, making clear it would not give in to US pressure.

Bitcoin Goes against Its Principles without Self-Custody Wallets

The position of various countries on that tool becomes increasingly evident as legislation on the adoption of Bitcoin advances worldwide. For example, Switzerland allows using cryptocurrencies under a strict identity verification system. Of course, that distorts the principle of Bitcoin that no state can control it.

Russia advanced a bill to regulate Bitcoin through banks as its custodians. In Europe, they made regulatory proposals with strict monitoring controls, complying with the Financial Action Task Force (FATF).

The most controversial proposals require exchange users to declare ownership of different Bitcoin addresses, thus breaching privacy.

Bitcoin Offers Advantages to Emerging Economies

Since no governing agency or state controls Bitcoin, its algorithm and community dictate its economic policies. That allows citizens to have independence over the holding of their assets.

If a state cannot control Bitcoin with regulations, it can give way to an outright ban. However, that is quite unlikely to happen due to its decentralized nature.

There are advantages for those who adopt Bitcoin in emerging economies like El Salvador. Even Venezuelan citizens have seen the cryptocurrency as an opportunity to circumvent difficulties amid a deep crisis.

By Alexander Salazar

How the Fugitive Leonardo Cositorto Went From Generation ZOE to Sunrise Coach

Jenson Nunez
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How the Fugitive Leonardo Cositorto Went From Generation ZOE to Sunrise Coach

The new business assures similar advantages to those that Generation ZOE presented. Leonardo Cositorto, CEO of the company, faces accusations internationally for fraud.

Leonardo Cositorto, the promoter of the Zoe Cash token and CEO of Generación ZOE, investigated by the Argentine authorities and accused of fraud, appeared to the public on March 9 to assure millionaire profits with a new business named Sunrise Coach.

Through a Zoom conference and from an unrevealed location, Cositorto highlighted the benefits his new business possesses. Sunrise Coach will be an education system intended to work for at least three years in which they will receive investments of up to USD 3,600, and each investment will generate a return registered in a monthly 7.5% per month.

Cositorto explained. that the expectation is that they will not be more than 20,000 people who, for each sale, would acquire at least USD 100, all outside the traditional financial system since the business would operate with stable Tether.

There is no evidence of Sunrise Coach’s existence on the internet. It is also unknown if it has its proper headquarters, nor is there a web page to corroborate the information the CEO reported.

Regarding Zoe Cash and Generación ZOE, Cositorto, who shows himself as an expert in ontological coaching, highlighted that he would not continue due to problems and people who created lies around him. He acknowledged that accounts in seven banks got restricted, which caused a critical situation.

According to the CEO, the 7.5% monthly payment promised to Generación ZOE investors also got suspended, and the capital will go back in installments.

In this sense, he highlighted that they would study the bank accounts that the company currently possesses in Argentina and Colombia, while the next move would be to arrange agreements with the investors, benefiting those who entered the system since November.

The Zoe Cash token, from Generación ZOE, currently counts on a price of USD 0.005, after hanging around USD 0.30 on March 8, when the new level of the business got revealed.

Complaints Attacking Generation ZOE

Cositorto’s promises happened through a network of directed companies approaching various nations in Latin America.

One of the first countries that showed complaints about ZOE was Paraguay. The police of that country executed a raid on the company’s headquarters. The reason is that the company allegedly offered investments without the proper permissions to carry out that operation.

In Spain, there have been protests against the company, which got located in Elda, in the south of Valencia and closed to the date. Among those affected by Cositorto’s company, a group of at least 12 people got owed more than EUR 350,000.

Generation ZOE also reached countries like Colombia and Venezuela. In the case of Colombia, despite the accusations against the company and its CEO in Argentina, local authorities have recognized that Generación Zoe has a license to carry out its activities as a coaching university.

By: Jenson Nuñez

The European Parliament to Vote on the Regulation on Bitcoin and Other Cryptocurrencies

Alexander Salazar
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The European Parliament to Vote on the Regulation on Bitcoin and Other Cryptocurrencies

The European Parliament postponed the vote on the final MiCA Law Draft for March 14th due to strong opposition from bitcoiners. The bill aims to include cryptocurrencies in compliance with the Sustainable Financial Taxonomy of the EU.

After postponing the vote on the Regulation on Markets in Crypto Assets (MiCA) for two weeks, the European Parliament set it for March 14th. They would initially discuss the law on February 28th, but the Bitcoin community expressed strong opposition, as it implied a de facto ban on Bitcoin.

European congressman Stefan Berger stated that the law draft did not include the environmental clause to outlaw cryptocurrencies based on proof-of-work (PoW) mining. He announced they did not plan an independent discussion on Proof of Work for the MiCA regulation any longer.

The parliamentarian suggested talking about cryptocurrencies in the context of another environmental regulation, known as Sustainable Financial Taxonomy. Given the significant debate, he considers that the Taxonomy could provide clarity and guarantee a better information base for consumers.

Implications of the Sustainable Financial Taxonomy Regulation

The EU Taxonomy regulation sets the criteria to rate an economic activity or investment as environmentally sustainable. That evaluation depends on how it contributes to the environmental objectives of the European Union.

That regulation would imply that Bitcoin trading or mining must prove that they contribute substantially to at least one of the six environmental objectives. Besides, those activities cannot considerably damage the other five and must comply with minimum social guarantees to appear in the Taxonomy.

The environmental objectives stated in the regulation are mitigation of climate change, adaptation to climate change, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and recovery of biodiversity and ecosystems.

In early 2022, the European Commission used the above criteria to rate nuclear power and natural gas as environmentally sustainable. It is relevant to mention that a growing number of Bitcoin mining farms operate with green energy.

European Congressman Stefan Burger Expects His Colleagues to Support the MiCA Law

Stefan Berger reported that the MiCA Law Draft has been available to European congresspeople since March 7th. Since he believes that the bill can become a global standard, he urged his colleagues in Parliament to vote on the legal text.

If the EU Parliament expresses strong support for the MiCA regulation, that is a signal for a technologically-neutral and innovation-friendly financial sector.

The European Parliament has been working on the MiCA Law Draft for about two years. Its goals include creating a committee to manage the cryptocurrency market in the 27 countries of the European Union. The bill would seek a framework to supervise and sanction risky cryptocurrencies like stablecoins.

Some experts questioned that the approach of the MiCA regulation tends to establish laws similar to those governing the traditional stock market. For that reason, they said that the products and services emerging in the cryptocurrency market have to follow different principles.

Decentralized cryptocurrencies have become increasingly relevant in the economy, and regulators are aware of that. Many want to control or ban the activities based on those digital assets, arguing that they are risky and harm the environment.

By Alexander Salazar

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