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- 1 Decentralized Finance (DeFi), removed the need for third parties and centralized institutes in the financial sector.
- 2 With technological advancement, the services and efficiency of DeFi also boomed, resulting in many highs and lows.
DeFi made financial investments and trading much more fun and with time the infrastructure and associated regulations are constantly evolving. Here is some latest news covering all the ups and downs of the DeFi world.
American Grocery Store Trader Joe’s Filed Lawsuit Against DeFi
On October 5, Trader Joe’s, an American grocery store, filed a federal lawsuit against a DeFi platform named Trader Joe. Based on the lawsuit, the store alleges that the DeFi platform didn’t take permission to use the store’s name for the DeFi launch.
The lawsuit orders the DeFi platform of trademark infringement and seeks all benefits generated by the platform as damage. The platform was launched by an anonymous team in 2021 using the store’s name to get commercial benefits from the well-known trademark.
CFTC to Focus on DeFi Amid Industry Tensions
The Commodity Futures Trading Commission (CFTC) emphasized DeFi amid the industry tensions. Rostin Behnam, the chair of CFTC likened the situation in the DeFi realm to a universe where only a few individuals require a driver’s license.
Considering all the situations in mind and resolving charges against major DeFi, Behnam represented the need for regulations in the DeFi industry. In addition to this, the Enforcement Director of CFTC, Ian McGinley supported Rostin Behnam, showing his concern for unregulated DeFi exchanges. Unregulated DeFi exchanges are labeled as obvious threats to the crypto market.
Kevin Pawlak, OpenSea Executive Trapped in AnubisDAO Rug Pull Allegations
OpenSea, one of the top NFT marketplaces, is trapped in an AnubisDAO rug pull allegation that took place in 2021. However, the allegation came into the spotlight on October 6 through a post by an anonymous account.
The incident raised debates and investigations across the community and Pawlak, OpenSea executive, remains elusive. The incident was supported by NFT Ethics by investigating the Ethereum transaction. However, the critics claimed that there is no effective link between Pawlak and AnubisDAO rug pull.
Pond0x Gain $100M Total Volume Despite Scam
Pond0x, a Decentralized Exchange (DEX) has gained around $100 Million in total trading volume surpassing other platforms. The news was confirmed by Dune dashboard, representing around $111 Million in all-time trading volume as of September 29. The token was considered a rug pull or exit scam by critics.
PNDX, Pond0x’s native token, achieved the milestone despite some concerns and allegations of scams from the day of launch. Also, the token is still under controversy, considered valueless, and designed to avoid legal complications.
Base’s TVL Surpassed Solana, Reaching Impressive Heights
Base, Coinbase’s layer 2 network, shocked the crypto world with its outstanding performance in terms of total value locked (TVL). The platform surpassed Solana (SOL) in TVL reaching $397.32 Million since its launch in August.
The TVL of Solana, as per the DefiLlama was around $358.96 Million which was a decline of 9.64% in the same timeframe. Surprisingly, Base’s TVL is contributed by multi-network DeFi platforms including Curve, Compound, and Uniswap.
Conclusion
With continuous advancement, the DeFi platform gradually underwent regulations and constant evolution. The need for such platforms boomed in the crypto market, increasing the need for regulations in the DeFi industry.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
