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Crypto winter seems to ease somewhat as the market is on its recovery pace. As it appears crypto companies and emerging projects continue to receive fundings. Recently decentralized and non-custodial liquid stacking platforms, Ether.Fi said to raise about 5.3 million USD worth funding.
Mike Silagadze, founder and chief executive office of Ether.Fi said that the protocol intends to grant users with the power of maintaining their assets’ custody. He iterated his belief in stakers to maintain the control over the keys which is a crucial factor for a decentralized protocol. Additionally, he said that this also helps in eliminating the counterparty risk.
Liquid staking enables users to earn rewards on their crypto assets locked over the platform. The locked asset makes it possible to validate the transactions over the blockchain network. During this time, the cryptocurrencies stayed locked and could not be either transferred or invested anywhere else.
Along with crypto exchange BitMex founder Arthur Hayes, North Island Ventures, Chapter One and Node Capital were the participants in the Ether.Fi’s funding round.
While explaining the reason behind pouring investment within the project, Hayes cited the upcoming Shanghai upgrade on the Ethereum network. He said out of Etheruem staking protocols, a majority of them would be acting as a threat to the ecosystem, despite the upgrade. Ether.Fi would make participants in the staking process to continue “true custody of their own assets.” This would be intended to reduce the risks including “staker, node operator, counterparty, ecosystem” over the proof-of-stakes (PoS) blockchain networks.
Recent findings claim liquid staking as one of the leading crypto sectors with about 14 billion USD worth in its total value locked (TVL). This way it beat the decentralized finance sector and took second spot. The growth indicates increasing interest of Ethereum (ETH) holders towards liquid staking.
However, the Securities and Exchange Commission (SEC) took several actions in the past several weeks indicating regulatory scrutiny over the crypto sector. Prominent crypto exchange platform Kraken, for instance, was barred from offering crypto staking services. In addition, it was also fined 30 million USD for the prior offerings in the past. Along with staking services, there were hints that custodial services could also go through restrictions after the news of bringing it within the existing custodian regulations.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
