Introduction:

Decentralized Finance (DeFi) has emerged as one of the most exciting and transformative sectors within the cryptocurrency industry. With its promise to recreate traditional financial systems in a decentralized manner, DeFi has garnered significant attention and investment. In this article, we will explore the key concepts, benefits, challenges, and future prospects of DeFi.

Understanding DeFi:

DeFi refers to the use of blockchain technology and cryptocurrencies to recreate various financial services traditionally provided by intermediaries such as banks, insurance companies, and lending institutions. DeFi applications are built on decentralized networks, predominantly on the Ethereum blockchain, and enable users to engage in financial activities without the need for intermediaries.

Key Features and Benefits:

Open and Permissionless: DeFi platforms are open to anyone with an internet connection, enabling financial inclusion on a global scale. Users have full control over their funds, eliminating the need to rely on traditional intermediaries.

Smart Contracts: DeFi relies on smart contracts, self-executing agreements with the terms of the agreement directly written into code. Smart contracts automate processes, eliminate human error, and enable trustless interactions.

Programmability and Interoperability: DeFi platforms allow developers to create complex financial applications by leveraging programmable smart contracts. This opens up a world of possibilities for creating innovative financial products and services.

Transparency and Auditability: The transparent nature of blockchain technology enables users to verify transactions and the overall financial health of DeFi protocols. This transparency increases trust and reduces the risk of fraud.

Access to Global Liquidity: DeFi protocols facilitate the seamless transfer of assets, enabling users to access global liquidity pools for borrowing, lending, and trading purposes.

Popular DeFi Use Cases:

Decentralized Exchanges (DEXs): DEXs allow users to trade cryptocurrencies directly from their wallets, without the need for an intermediary. They provide enhanced privacy, security, and liquidity.

Lending and Borrowing: DeFi lending protocols enable individuals to lend their crypto assets and earn interest, while borrowers can access loans without going through traditional credit checks.

Stablecoins: Stablecoins are pegged to stable assets like fiat currencies and offer stability in an otherwise volatile cryptocurrency market. They enable users to store value and transact with a stable asset within the DeFi ecosystem.

Automated Market Making (AMM): AMMs use algorithms to provide liquidity for trading pairs, allowing users to trade assets instantly without relying on order books.

Challenges and Risks:

Security: While DeFi protocols offer enhanced security through blockchain technology, vulnerabilities in smart contracts and potential exploits can still exist. Thorough auditing, code reviews, and security measures are essential.

Scalability: As the popularity of DeFi grows, scalability becomes a crucial challenge. The Ethereum network, for example, has faced congestion and high transaction fees during periods of peak demand.

Regulatory Uncertainty: DeFi operates in a rapidly evolving regulatory landscape. The lack of clear regulations introduces uncertainty and can potentially limit the growth of the sector.

The Future of DeFi:

The potential of DeFi to disrupt traditional financial systems is immense. As scalability solutions are implemented and user-friendly interfaces are developed, DeFi has the potential to reach mainstream adoption. Additionally, the integration of DeFi with real-world assets, cross-chain interoperability, and the emergence of regulatory frameworks can further drive its growth.

Conclusion:

Decentralized Finance (DeFi) is revolutionizing the financial landscape, empowering individuals with more control over their finances and creating innovative financial products and services. While challenges and risks exist, the promise of increased financial inclusivity, transparency, and efficiency make DeFi an exciting frontier in the cryptocurrency industry. As the ecosystem evolves, it is important for users, developers, and regulators to work together to harness the full potential of DeFi while addressing its challenges responsibly.

#universalcryptoworld #crypto2023 #trading #BinanceTournament #pepe

Binance CEO Changpeng Zhao delivered his forecast for the next Bitcoin bull run during a Twitter Space on July 5.

Binance CEO Changpeng “CZ” Zhao has delivered his prediction for the next Bitcoin BTC bull market.

In a July 5 “ask me anything” session on Twitter, CZ covered BlackRock's intention to enter the crypto market, updated listeners about ongoing regulatory action against the exchange, and gave his thoughts on the next bull run.

CZ explained that the price of Bitcoin has historically moved in four-year bull cycles and his best bet was that this would continue to occur. 

While he admitted that he couldn’t see the future, Zhao emphasized the upcoming Bitcoin halving event in 2024 and declared 2025 to be the most likely year for the next bull market, stating:

“The year after Bitcoin halving is usually the bull year.“

Asked whether he was concerned about BlackRock’s recent entry into the spot Bitcoin exchange-traded fund arena, CZ welcomed it, saying it is “hugely beneficial” for the crypto industry.

Since the firm’s June 15 filing, many have raised concerns that the intention of major TradFi firms stands in direct contrast to the ethos of Bitcoin as a decentralized monetary network.

Zhao also brushed off concerns that BlackRock could eat up Binance’s market share in the future, describing the overlap between their respective customer bases as “minimal.”

“Anyone who’s coming into crypto that’s not in crypto today will bring additional people into crypto. Will they compete for any of the existing users with us? Yes, probably a little bit. But to be honest, look at our user base. The overlap is minimal.”

Zhao explained that increased institutional interest and Bitcoin’s upcoming halving are the two primary reasons why Binance wants to be “prepared for higher [trading] volumes” over the next eighteen months.

Related: Bitcoin ETFs: Even worse for crypto than central exchanges

Zhao’s comments come just hours after BlackRock CEO Larry Fink praised Bitcoin as an “international asset,” saying that it could be used to hedge against inflation and the devaluation of certain fiat currencies.

During the Twitter Space, Zhao was also questioned about the status of regulatory action against his exchange. While he acknowledged that he couldn’t talk specifics, Zhao said that he and Binance are looking for “the most expedient, reasonable and mutually agreeable solution possible.”

#BTC #universalcryptoworld

In recent times, crypto scams have become alarmingly prevalent, exploiting the growing interest and investment in cryptocurrencies.

From Ponzi schemes to fake initial coin offerings (ICOs) and phishing attacks, crypto scams encompass a wide range of deceptive practices designed to trick individuals out of their digital assets.

What Are Crypto Scams?

Crypto scams are like any other financial scam, except the scammers are after your crypto assets rather than your cash.

Crypto scammers use many of the same tactics employed in other financial crimes, such as pump-and-dump scams that lure investors to purchase an asset with fake claims about its value or outright attempts to steal digital assets.

This latter type of scam could involve breaking into a person’s crypto wallet or getting an investor to send a digital asset as a form of payment for a fraudulent transaction, says Shane Cummings, wealth advisor and director of technology and cybersecurity for Halbert Hargrove.

The goal is always to manipulate victims into divulging personal data or transferring valuable digital assets like non-fungible tokens (NFTs) to the perpetrator’s account.

“As an instrument, crypto scams are particularly appealing to nefarious agents who enjoy cryptocurrency’s swift conversion to fiat money, ready-to-use third-party transaction applications and rich obfuscation techniques,” says Chengqi “John” Guo, professor of computing information systems and business analytics at James Madison University.

Types of Crypto Scams

Crypto scams can take many forms. Here are a few of the most common examples.

Investment Scams

Investment scams involve a bad actor enticing people to send their cryptocurrency to the fraudster with promises of “huge gains.”

Scammers can play many parts, such as an “investment manager,” a celebrity or even a love interest on an online dating site. Whatever role is assumed, they promise to grow your investment if you transfer your cryptocurrency to them.

If you follow through with their request, kiss goodbye to your crypto.

Investment scams include pump-and-dump schemes. A fraudster entices you to buy an obscure crypto at a “low price,” with promises that the asset’s value will soon go through the roof.

When you buy, the price rises, at which point the scammer dumps their holdings at the new higher valuation, which causes the price to collapse, leaving you and any other victims underwater.

“Typically, the new token is worth a few cents, or even fractions of a cent. But a little bit of momentum can drive it up the charts on sites like CoinMarketCap.com to make it look like the sky’s the limit on price appreciation,” Cummings says.

“Given the speed at which new coins are created and marketed to investors on the internet without regulation, some investors looking to earn a quick profit are drawn in by reports of triple-digit percentage gains in a digital asset over a short period of time and want to jump on the bandwagon,” he says.

To spot an investment scheme, look for promises of excessive profits or zero risks.

These schemes often begin on social media or online dating sites, so be wary of anyone contacting you out of the blue about your crypto assets. Watch out for anyone talking up a particular crypto asset on Reddit or other social media platforms, too. These are known as socially-engineered scams.

Phishing Scam

Phishing scams are an old favorite among scammers. Fraudsters are aiming to access your account details, including your crypto keys. As any crypto user knows, he who holds the key holds all the crypto.

Phishing scammers often lure you into clicking on a link to a fake website, where they can then steal your account details. They can impersonate well-known companies, like Amazon or your bank, utility companies, or even government agencies, and may post links on social media or contact you directly.

For example, they might send you an email or text saying a withdrawal was initiated and give you a link to cancel the transaction.

“The link directs to a fraudulent website and harvests the investor’s account credentials, allowing thieves to login and withdraw assets,” Cummings says.

Anyone can fall prey to a phishing scam and any digital asset can be the target of such a scam, as actor and film producer Seth Green realized earlier this year when four of his Bored Ape NFTs were stolen.

Upgrade Scams

Software is constantly being updated, and cryptocurrency platforms are just a form of software. Since many have become accustomed to upgrades in the digital age, scammers can easily trick crypto holders into giving up their private keys as part of an “upgrade.”

Upgrade scammers can piggyback on legitimate migrations, such as the recent Ethereum merge, which had both the Ethereum Foundation and Robinhood concerned enough to issue a warning that users be on “high alert” for upgrade scams.

SIM-Swap Scams

SIM-swap scams are among the newer crypto scams taking place today. They occur when a scammer gets access to a copy of your SIM card and can access all of your phone’s data.

“That information can be used to receive and use the two-step authentication codes required to gain access to crypto wallets and other accounts without the victim knowing,” Cohn says. “When this happens, the victim’s crypto accounts can be hacked and wiped out without the victim even being contacted.”

Fake Crypto Exchanges and Crypto Wallets

“If you browse your social media handles, you will come across sites that advertise cheap Bitcoin (BTC),” says Martin Leinweber, digital asset product strategist at MarketVector Indexes. They may advertise cryptocurrencies at 5% below market value and promise huge savings when you buy through the site—but sometimes, these platforms are fake crypto products.

These fake crypto products often quote outrageous returns on investment, and users are typically required to pay a high initial fee and then frequently asked to invest more and more.

And when you try to withdraw your funds, you’ll likely find they’ve vanished.

“A fake crypto wallet is a malware scam,” Leinweber says. “Scammers use it to infect a computer and eventually steal the user’s private key or password.”

To avoid such scams, stick with reputable exchanges and wallets with long user history.

“If a wallet’s website tries to resemble a reputable brand, you should consider it a scam and move on,” Leinweber says.

How to Report Crypto Scams

“Since a lot of the perpetrators of crypto scams are outside of the U.S., our law enforcement institutions can only do so much,” Cummings says. But you should still report any crimes.

You can report crypto scams to the following places:

Federal Trade Commission

Securities and Exchange Commission (SEC)

Commodity Futures Trading Commission (CFTC)

Internet Crime Complaint Center (IC3)

You can also file a complaint to the crypto exchange you used to send the money.

“Usually, for a claim to be subject to proper investigation by your brokerage, a formal complaint is required,” Cohn says. “The investor needs to figure out whether that is required and how to do it, and quickly.”

You can also reach out to the media and invite them to cover the event, Guo says. “Doing so can raise the public’s awareness of the crime and assist in mitigating future criminal activities.”

Just be sure to share with the discretion of safeguarding your own privacy, he adds.

How to Avoid Crypto Scams

Given the heightened risks with digital assets, prudence is essential. To avoid crypto scams, follow these tips:

Don’t respond to unsolicited contact. “No matter who contacts you from your crypto brokerage—or any financial institution, for that matter— the best practice is not to respond,” Cohn says. “Look up the official number for the institution and initiate independent contact.”

Check before you click. Don’t open hyperlinks or attachments from unfamiliar senders.

Keep accounts separate. Don’t link crypto brokerage accounts and traditional bank accounts permanently.

Place a hold immediately. “If you receive notice of unusual activity on an account, do not wait to place a hold on any future transactions based on fraud,” Cohn says.

Use reputable companies. To ensure your information and crypto security, use a wallet from a reputable company,” Leinweber says. He points to Exodus and MetaMask as reputable hot wallets or Ledger, Trezor or Bitbox as reputable cold wallets.

Look for HTTPS. HTTPS—as opposed to just HTTP—in a crypto exchange or wallet URL indicates the site has secured and encrypted traffic, Leinweber says.

How to Get Money Back from Crypto Scams

Getting your money back from crypto scams is tricky. “As transactions on a blockchain are immutable, the likelihood of getting your coins back is pretty low,” Leinweber says.

That said, he still recommends reporting crimes to legal authorities. “When you report a scam, the government might track down the criminals and get your funds back for you,” he says.

Ultimately, the best recourse is to take extra precautions with future assets so that you don’t become a victim again.

THANKS FOR READING AND STAYING SAFE

KINDLY DO LIKE AND FOLLOW #universalcryptoworld

Bitcoin has been struggling to surpass the significant resistance region of $30K for some time now, despite an overall bullish outlook. Recent price movements have shown bearish signals that could potentially lead to a short-term reversal.

Technical Analysis

The Daily Chart

Bitcoin’s bullish rally has come to a halt upon reaching the crucial resistance region of $30K. This price range holds significant psychological resistance and has acted as a major barrier to the price for several months.

However, there are indications of a double-top bearish reversal pattern forming in conjunction with declining and weakening bullish momentum. This suggests the possibility of a reversal and a consolidation phase before the market determines its next direction.

It’s important to note that if the price is rejected at this critical resistance, a drop toward the dynamic support level of the 100-day moving average at $28K becomes highly likely.

The 4-Hour Chart

In the 4-hour timeframe, the diminished bullish momentum becomes more apparent as the price has been consolidating around the $30K mark for an extended period. Following a prolonged period of consolidation, a bearish double-top pattern has emerged, causing a slight decline as selling pressure outweighs demand.

However, it is important to wait for confirmation of the double-top pattern, which requires the price to fall below the neckline at $29.8K. If successful, Bitcoin’s next target would be the static support region at $27.5K.

Furthermore, it is worth mentioning that a clear bearish divergence is visible between the RSI indicator and the price, increasing the likelihood of a short-term downturn.

In summary, Bitcoin is currently facing significant resistance at the $30K level, accompanied by bearish signals and weakening bullish momentum. A reversal and consolidation phase may be in the cards, potentially leading to a short-term decline.

On-chain Analysis

Bitcoin’s price has been on a strong bullish rally since the start of 2023, leading to profitable returns for many investors. The NUPL metric, illustrated on the chart, represents the disparity between market cap and realized cap divided by market cap. Essentially, this metric serves as an indicator of the proportion of investors who are in a profitable state.

Values above 0 indicate that investors are making profits, and a rising trend suggests an increasing number of investors entering the profitable zone. The recent upward movement in the NUPL metric, which reached its previous high from April, implies that more investors are now experiencing profitable returns. This serves as a significant indication of the prevailing bullish sentiment in the market.

Consequently, if the metric surpasses its previous high simultaneously with further price appreciation, it would generate heightened buying pressure and establish an unequivocally bullish market condition.

Kindly Do Follow and Like Share this Post #universalcryptoworld

#cryptobox  #giveaway

$BTC $ETH $BNB

Kiarash Hossainpour, a YouTuber and investor, has become a case study in the dangers of getting rich quick with bitcoin

Kiarash Hossainpour found a shortcut to getting filthy rich. When he still couldn’t grow facial hair, he was online giving seminars on entrepreneurship. But last spring, his fortune vanished during the collapse in the price of cryptocurrencies. From one day to the next, he had lost everything.

However, even after this disaster, the 22-year-old German of Iranian origin is not giving up. After losing up to 90% of his digital investment portfolio, Hossainpour assured the German edition of Business Insider that he will continue to invest in bitcoins. A firm believer in the future of cryptocurrencies, he notes that “accumulating losses… is part of the game.” It builds character.

A crash course in crypto

Hossainpour says that the collapse in the value of his digital assets worries him only slightly, because he is not planning on selling them. He considers himself “a strategic investor” – someone who does not succumb to “sudden panic attacks.”

“I did not sell in moments of uncontrolled boom and I will not sell, of course, in full decline.”

Bitcoin is trading today at €22,542 per unit… far from the all-time high of €67,205 that it reached in November 2021. Still, it remains the most stable of all the cryptocurrencies in which Hossainpour invested. The true lethal bite to his finances has come from Luna, the cryptocurrency on which he was betting with messianic fervor just a few months ago on his YouTube channel. Last May, it lost 99% of its value.

What happened? Hossainpour blames the disaster on the “incompetence” of the team that launched the cryptocurrency. He acknowledges that he did not see it coming. The “sixth sense” that allowed him to accumulate hundreds of thousands of followers on his financial advice channels on social networks has wasted away. This has also impacted his net worth, because the young German is, in addition to being an investor, an “influencer.” Or, in the words of US stock market advisor and radio host Clark Howard, “an irresponsible man who [caused] thousands of unknowing people to go bankrupt.”

The making of a kamikaze entrepreneur

Kiarash Hossainpour was born in Berlin in 1999, into an Iranian family (he prefers to say “Persian”) who took refuge in Germany to flee the turmoil of the Islamic revolution. His father, a computer scientist, gave him his first computer when he was 10 years old.

Young Hossainpour began to use the machine to make sports bets, but his father – “an upright man, a bit old school” – strictly forbade him from this activity. “If you want the computer to help you make money, first learn to code,” his father warned. So that’s what he did.

Largely self-taught – like many members of the first generation of cryptocurrency moguls – Hossainpour discovered the gaming scene, launching his first YouTube channel at the age of 13. But he soon wanted to go beyond simply offering online tips for playing Grand Theft Auto. He started designing custom web pages on WordPress, charging “barely 30 dollars a page.” One day, in 2014, he received his first payment in bitcoins.

His brain began spinning when he discovered this new currency. It was completely virtual – almost clandestine – and could be minted at home to be exchanged with members of a community of technological entrepreneurs. By the end of 2015, he took a decisive step: investing nearly €40,000 into bitcoins.

His parents asked him if this was legal… if it was “real” money, or just a scam.

“My father came from a very rich family that was impoverished by the revolution,” explains Hossainpour. “Maybe that’s why he doesn’t give too much importance to money. He always told me that the most important thing was for me to be careful, to continue with my university studies and not to lose sight of the fact that those millions were nothing more than numbers on a screen.”

In any case, Hossainpour used his rising numbers as a hook to increase his fortune, selling himself online as an example of success. While his financial YouTube channel generally offered relatively sensible advice – such as “invest only what you have left over, nothing you need to live on or to meet the needs of your family” – the photos in which he appeared, at just the age of 20, behind the wheel of a Rolls-Royce or a Lamborghini, or smoking Cuban cigars, told a very surreal story.

#universalcryptoworld

Ripple’s partnerships with Santander, American Express, SBI Holdings, and MoneyGram highlight the growing adoption of XRP for cross-border transactions.

These partnerships enable fast, low-cost international payments and enhance the efficiency of financial services.

Investing in #XRP requires a risk-managed approach, considering market volatility and regulatory changes.

XRP, the digital asset associated with Ripple, presents an enticing investment opportunity with its strong partnerships and risk-managed approach. Ripple’s collaborations with industry giants such as Santander, American Express, SBI Holdings, and MoneyGram have cemented XRP’s position as a preferred choice for streamlined cross-border transactions, offering investors the potential for favorable returns.

One prominent partnership is with Santander, a leading European bank, which has integrated Ripple’s technology into its international payment system. This integration facilitates fast and cost-effective transactions, enhancing the efficiency and speed of cross-border payments for Santander’s customers. Similarly, American Express leverages Ripple’s technology to provide instant and traceable cross-border payments, improving the overall effectiveness of their financial services.

Another significant collaboration is with SBI Holdings, a prominent financial services company in Japan. Together, they launched SBI Ripple Asia, a joint venture aimed at revolutionizing the Asian financial market through the utilization of XRP for cross-border transactions. This partnership signifies the growing recognition of XRP’s value within the Asian financial landscape.

Ripple has also formed a strategic alliance with MoneyGram, a global money transfer company. Through this partnership, Ripple’s technology is integrated into MoneyGram’s infrastructure, enabling faster remittances and reduced costs for users. These partnerships not only showcase the increasing adoption of XRP but also underscore its potential to reshape cross-border transaction processes.

While #XRP presents exciting investment opportunities, it’s important to acknowledge the inherent risks associated with cryptocurrencies. Market volatility and regulatory changes can impact the performance of digital assets, including #XRP. Therefore, investors should adopt a risk-managed approach, diversify their portfolios, and seek guidance from financial advisors to develop a well-informed investment strategy.

Staying updated with the latest news and developments surrounding XRP is crucial. Monitoring Ripple’s partnerships, regulatory updates, and market trends will empower investors to make informed choices and optimize their investment decisions. Diligent research and a risk-managed approach are vital components of a successful investment journey.

#universalcryptoworld #GOATMoments

The US Securities and Exchange Commission began cracking down on crypto in 2017. At the time, there was a vogue for what were called ICOs, initial coin offerings, in which some crypto company or project would raise money by selling crypto tokens to public investors. The ICO promoters — the people behind the crypto project — would put out a white paper describing their project and promising brilliant innovations and huge profits, and they would sell a bunch of tokens for money. There would generally be very little in the way of disclosure or investor rights. For promoters, the ICO was attractive because it was a way to raise a lot of money from enthusiastic and gullible retail investors without following securities laws. Many, many, many ICOs turned out to be complete vaporware, either frauds or functionally indistinguishable from frauds.

For the #SEC the ICO was obviously illegal: These tokens were obviously securities, and the ICOs were obviously unregistered securities offerings. (Also, many of them were frauds.) And so the SEC started bringing enforcement actions against ICO promoters, basically making them give the money back and promise not to do it again, and the #ICO boom quickly fizzled.

#BinanceTournament #Binance #universalcryptoworld