Wednesday, February 8, 2023
99newser
  • Home
  • World News
  • Celebrity News
  • Stock Market News
  • Health News Updates
  • Latest Sport News
No Result
View All Result
99newser
  • Home
  • World News
  • Celebrity News
  • Stock Market News
  • Health News Updates
  • Latest Sport News
No Result
View All Result
99newser
No Result
View All Result

Cryptoverse: A mixer with your crypto cocktail?

Editorial Team by Editorial Team
August 23, 2022
in Uncategorized
0
Cryptoverse: A mixer with your crypto cocktail?
587
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration

Register now for FREE unlimited access to Reuters.com

Aug 23 (Reuters) – The DeFi dream is shaken. And stirred.

The grand crypto project has declined in 2022: total user funds deposited in decentralized finance has shrunk to about $61 billion from over $170 billion at the start of the year, according to figures from data aggregator Defi Llama.

In a fresh jolt, the U.S. Treasury has sanctioned one of the industry’s biggest “mixers”, tools that pool and scramble crypto from thousands of addresses to boost anonymity, saying it was used by hackers to launder their gains. read more

Register now for FREE unlimited access to Reuters.com

The U.S. intervention this month has forced many DeFi projects to block cash from wallets linked to the Ethereum-based mixer, Tornado Cash, representing a blow to those devotees who dream of a brave new world free of central authority.

“The motion has set back DeFi in its ability to be decentralized and operate in a censorship resistant way,” said Katie Talati, director of research at digital asset manager Arca.

You might also like

Black Sherif; Young Ghanaian Musician Rocks Large Vintage Jeans … – Yen.com.gh

Hailey and Justin Bieber coordinate in Y2K outfits in their new pictures from Hawaiian getaway – PINKVILLA

State of the Union 2023: Five takeaways from Biden's speech – BBC

Indeed, the market impact could be significant, given the growing role of mixers, whose proponents argue they serve a legitimate use in creating privacy and say specific users should be targeted by authorities rather than an entire code.

The average usage of such services over a 30-day period hit an all-time high of $51.8 million in late April, roughly double the level a year before, according to a Chainalysis study in July, before declining with the broader crypto market.

“This makes sense given that the timing coincides with DeFi’s increasing prominence within the overall cryptocurrency ecosystem,” Chainalysis researchers wrote.

Tornado Cash didn’t respond to a request for comment on the sanctions.

LOCKED AND CODED

Aave and Uniswap, two of the most popular DeFi platforms that blocked wallets linked to Tornado, have seen user funds, or total value locked (TVL), drop since the sanctions were imposed – $6.4 billion from over $6.9 billion for Aave, and $5.7 billon from $6.5 billion for Uniswap, according to Defi Llama.

This may not be all due to Tornado, as most cryptocurrencies have suffered heavy losses in the past week and the DeFi sector has seen little change in activity – for example, Uniswap says its weekly trading volumes have remained fairly steady at around $8 billion.

“TVL has decreased, but at the same time the price of tokens has decreased,” said Max Krupyshev, CEO of payments provider CoinsPaid. “People didn’t pull money out so much as the value of their investments went down.”

Aave and Uniswap also didn’t respond to requests for comment on mixers.

Reuters Graphics

BIG CATS PROWL?

While DeFi players may face tough decisions on whether to pull back from mixers, some watchers spy a potential upside for the market should the U.S. measures encourage traditional institutional investors to join the fray.

“Larger institutions may see the sanctions as a step towards legitimacy, potentially giving them more comfort in engaging with or investing in Ethereum and other digital assets,” analysts at digital asset manager Grayscale wrote.

In the immediate future, though, little is certain.

“Illicit” addresses identified by data firm Chainalysis accounted for 23% of funds sent to mixers in 2022, rising from 12% in 2021. As for Tornado Cash specifically, analytics firm Elliptic reported that at least $1.54 billion in criminal proceeds were laundered through the platform.

Arca’s Talati thinks we haven’t seen the end of crackdowns on mixers.

“Tornado Cash is one of the ones that’s been around the longest,” she said. “This isn’t the last thing we’re going to see.”

Register now for FREE unlimited access to Reuters.com

Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Pravin Char

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Source link

Previous Post

Your first brush with coronavirus could affect how a fall booster works

Next Post

August bank holiday: events, festivals and carnivals – The Week UK

Editorial Team

Editorial Team

Related Posts

Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

Black Sherif; Young Ghanaian Musician Rocks Large Vintage Jeans … – Yen.com.gh

by Editorial Team
February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

Hailey and Justin Bieber coordinate in Y2K outfits in their new pictures from Hawaiian getaway – PINKVILLA

by Editorial Team
February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

State of the Union 2023: Five takeaways from Biden's speech – BBC

by Editorial Team
February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

How to Make Money Online: A Beginner's Guide – NextAdvisor

by Editorial Team
February 8, 2023
8 Tips to Avoid Winter Blues

8 Tips to Avoid Winter Blues

by Editorial Team
February 8, 2023
Next Post
August bank holiday: events, festivals and carnivals – The Week UK

August bank holiday: events, festivals and carnivals - The Week UK

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Celebrity Gossip: Joey Lawrence, Erich Schwer, Erik Kripke + More! – Vermilion County First

September 9, 2022
Today’s Stock Market News & Events: 11/15/2022 – Schaeffers Research

Today’s Stock Market News & Events: 11/15/2022 – Schaeffers Research

November 15, 2022

Categories

  • Celebrity News
  • Health News Updates
  • Latest Sport News
  • Stock Market News
  • World News

Don't miss it

Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

Black Sherif; Young Ghanaian Musician Rocks Large Vintage Jeans … – Yen.com.gh

February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

Hailey and Justin Bieber coordinate in Y2K outfits in their new pictures from Hawaiian getaway – PINKVILLA

February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

State of the Union 2023: Five takeaways from Biden's speech – BBC

February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

How to Make Money Online: A Beginner's Guide – NextAdvisor

February 8, 2023
8 Tips to Avoid Winter Blues

8 Tips to Avoid Winter Blues

February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

Women's Wilderness Weekend Coming to Indiana Reservoir in April – womiowensboro.com

February 8, 2023

Recent News

Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

Black Sherif; Young Ghanaian Musician Rocks Large Vintage Jeans … – Yen.com.gh

February 8, 2023
Mass. Reports 5,160 New COVID-19 Cases, 112 Deaths This Week – NBC10 Boston

Hailey and Justin Bieber coordinate in Y2K outfits in their new pictures from Hawaiian getaway – PINKVILLA

February 8, 2023
  • Home
  • World News
  • Celebrity News
  • Stock Market News
  • Health News Updates
  • Latest Sport News

© 2020 99newser.com

No Result
View All Result
  • Home
  • World News
  • Celebrity News
  • Stock Market News
  • Health News Updates
  • Latest Sport News

© 2020 99newser.com