New startup of passive earnings based on Ethereum was criticized by the head of the ShapeShift exchange
Eric Voorhees believes that the platform is a classic instrument for speculation
Not everyone in the community agreed with Voorhees’s claims
International consortium of news organizations developing transparency standards.
The founder of the ShapeShift cryptocurrency exchange believes that the project is also a classic pump scheme. & dump
Erik Voorhees, founder and CEO of ShapeShift cryptocurrency exchange, called Yam Finance’s growing DeFi project a “scam.”.
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Voorhees wrote about this on his Twitter page..
In particular, the head of ShapeShift saw in the project of decentralized finance (DeFi) Decentralized finance (DeFi) is a financial service built on the basis of blockchain technology that offers users access to an open, efficient and … More & dump when the price of an asset is purposefully artificially inflated.
“These projects are clearly not going to benefit DeFi. What am I missing? Do people deliberately participate in a stupid game or imply real value? “, – wrote Voorhees.
Yam Finance is a cryptocurrency protocol based on the Ethereum blockchain aimed at elastic token issuance. The project is analogous to another protocol – Ampleforth (AMPL), where the supply of tokens also increases and decreases depending on market conditions.
According to the official blog post, Yam is an “experimental protocol” that aims to ultimately achieve price stability and peg to the US dollar..
Users can use their cryptocurrencies including COMP, wBTC and ETH as a staking deposit and receive passive income in the form of YAM tokens.
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At the time of this writing, the price of the YAM token is $ 119.69 with an increase of more than 80% per day.
However, not everyone agrees with Voorhees’ statement..
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User @degen_julian wrote that Yam Finance is unlikely to be a scam given the similarities to the Ampleforth project.
In response, Voorhees stated that he also “does not understand the essence of Ampleforth itself.”.
Anchoring to speculation
At the same time, a user with the nickname @publicmailwall noted that the main problem with Ampleforth so far is the lack of sense of application, which causes doubts and speculation.
“For the AMPL to make sense, it needs actual application. Right now, the only application seems to be using [the asset] as a speculative instrument and possibly as a source of income through their liquidity incentive program, “@publicmailwall wrote.
The demand in the staking market was so great that an unknown user transferred about $ 11 million to Yam in one transaction.
According to Alex Svanevik, co-founder of analytics firm Nansen, an unknown user sent 30,000 WETH in just one transaction to the Yam platform.
BeInCrypto previously reported that American tech company IBM has decided to help financial institutions benefit from the development of DeFi..
Nitin Gaur, head of financial services and digital assets of the organization, said that it is important for modern financial institutions to understand how DeFi works in order to take advantage of the DeFi market to their advantage..
Lack of interest on the part of banks, in his opinion, can destroy their built model of business development.
At the same time, according to analysts of the DappRadar resource, the increased relationship between DeF startups can lead to a potential threat of a collapse of the entire market..
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