Remember last week’s crypto craze on the Friend.tech app, running on Coinbase’s Base blockchain? As with many crypto trends, it seems to be cooling off, a scenario echoed by analysis firm Messari. The number of trades on the platform has dropped nearly 40%, correlating with plunging prices for shares in listed influencers. A notable move by Friend.tech has been to attract creators from the adult content website OnlyFans, offering a new potential lease of life for the platform. The rise and potential fall of Friend.tech highlight how quickly volatility can be introduced into crypto platforms and projects.
In the world of crypto exchanges, Binance has encountered a flurry of developments, some favourable, others not so much. The exchange has had to sever ties with five sanctioned Russian banks amid regulatory scrutiny. Somewhat disappointing for their users in Bahrain and Latin America, Binance’s crypto-backed debit card is being discontinued, a decision apparently made by Mastercard. On a positive note, Binance has introduced Send Cash, their new crypto-based programme to enable users in nine Latin American countries to directly transfer money into bank accounts in Colombia and Argentina.
While Binance wrestles with regulatory scrutiny and shifts in strategy, Ethereum might be reaping the rewards of its smart contracts blockchain’s scalability, with supplemental “layer-2” networks helping to manage transition costs.
Nonetheless, Ethereum layer-2 protocol, Shibarium, faced a bumpy start. Initial issues and faulty bridge led to software bugs, resulting in millions of dollars caught in limbo. Despite the hiccups, the Shibarium team has managed to get the network back on its feet with token withdrawals now available.
Adding to the layer-2 framework, DeFi toolkit provider Interlay is planning BOB, a new Bitcoin layer-2 network compatible with Ethereum’s EVM software environment.
Ironically, while expanding DeFi platforms offer customers more financial autonomy, dangers lurk. Magnate Finance, a lending platform on the Base blockchain, allegedly tricked users out of $6.5 million. Investigations linked Magnate to a previous scam, Solfire, which swindled $4.8 million.
To end on a colourful note, the meme coin PEPE experienced a price crash following changes made to the rules of their multi-signature wallet, resulting in a $14M outflow of tokens. The incident illuminates the potential volatility and less stringent regulation often associated with meme coins.
As always, the crypto market remains a blend of promise, innovation and uncertainty. Understanding the nuances of the technology and markets is vital to separating the wheat from the chaff and keeping savvy investors ahead of the curve.
Source: Coindesk
