On August 28, the Bitcoin Cash-based decentralized finance (defi) platform Detoken announced the project is closing its doors on September 4, 2021. The project’s founder, Semyon Germanovich, explained that the main reason for shutting the defi project down is because of the “changing regulatory outlook on cryptocurrency derivatives.”
Defi Project Detoken to Shut Down Operations on September 4
In December 2020, Bitcoin.com News reported on the defi platform called Detoken, a project that allowed users to hedge or long their bitcoin cash (BCH) in a noncustodial fashion. At the same time, the firm at General Protocols launched the Anyhedge technology and the protocol was leveraged by the Detoken platform. Semyon Germanovich explained on Saturday that the Detoken platform was sunsetting the project over regulatory concerns.
“I’m saddened to announce that Detoken will be closing its doors on the 4th September 2021,” Germanovich said. “There are several factors that influenced our decision to close the Detoken platform. The main reason is that it’s become increasingly apparent that Detoken’s business model cannot continue to work given the changing regulatory outlook on cryptocurrency derivatives.” Detoken’s founder added:
I’ve always been a firm believer in financial freedom and privacy, but in order to continue operating Detoken in its current form we’d be forced to introduce know your customer identity checks sooner or later. Unfortunately, the sad reality is that all players in the industry will have to make the same hard decisions about changing their business model or introducing these difficult and friction-inducing checks.
Bitcoin Cash Proponents Look to Smart Bitcoin Cash Chain
The Bitcoin Cash community is now anticipating the benefits of the Smart Bitcoin Cash chain(Smartbch). BCH proponents believe Smartbch could unlock massive potential between the Ethereum (ETH)and Bitcoin Cash (BCH) networks. As time has progressed, the exchange Coinflex revealed that “Coinflex BCH (mainnet) to BCH (SEP20) bridge has been live for an entire week now – with zero issues,” in a blog post announcement. Coinflex added:
We are happy to announce that locking on the BCH chain, releasing BCH (SEP20, the Smartbch format), and going from Smartbch to BCH have all been working smoothly.
Bitcoin cash (BCH) markets have been up over 5% during the last 24 hours and BCH currently holds the 13th largest market capitalization out of 10,000+ crypto assets. BCH is up 24.4% during the last month and year-to-date, bitcoin cash has gained 149%. At the time of writing, bitcoin cash (BCH) has an overall market capitalization of around $12.5 billion.
Bitcoin Cash Fans Bid Detoken Farewell
On Reddit, subscribers on the subreddit forum r/btc were sad to see Detoken close its doors in a Reddit post added on Saturday. “This is the mail I just received from detoken. Despite this bad news, I still hope, new projects [will] use General Protocols,” one user wrote on the forum.
The developer of the General Protocols project, who goes by the name “Emergent Reasons,” replied to the comment and said: “Thanks for the good wishes. We continue to work hard for BCH, p2p electronic cash.” He also left a link to a blog post called: “A peer-to-peer cash strategy for General Protocols” which can be read via the read.cash blogging platform.
What do you think about Detoken having to close its doors over regulatory concerns toward crypto derivatives? Let us know what you think about this subject in the comments section below.
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On August 28, the Bitcoin Money-based decentralized finance (defi) platform Detoken introduced the mission is closing its doorways on September 4, 2021. The mission’s founder, Semyon Germanovich, defined that the primary motive for shutting the defi mission down is due to the “altering regulatory outlook on cryptocurrency derivatives.”
Defi Undertaking Detoken to Shut Down Operations on September 4
In December 2020, Bitcoin.com Information reported on the defi platform referred to as Detoken, a mission that allowed customers to hedge or lengthy their bitcoin money (BCH) in a noncustodial vogue. On the identical time, the agency at Normal Protocols launched the Anyhedge expertise and the protocol was leveraged by the Detoken platform. Semyon Germanovich defined on Saturday that the Detoken platform was sunsetting the mission over regulatory considerations.
“I’m saddened to announce that Detoken will likely be closing its doorways on the 4th September 2021,” Germanovich stated. “There are a number of elements that influenced our determination to shut the Detoken platform. The principle motive is that it’s grow to be more and more obvious that Detoken’s enterprise mannequin can not proceed to work given the altering regulatory outlook on cryptocurrency derivatives.” Detoken’s founder added:
I’ve at all times been a agency believer in monetary freedom and privateness, however to be able to proceed working Detoken in its present kind we’d be compelled to introduce know your buyer identification checks eventually. Sadly, the unhappy actuality is that every one gamers within the business should make the identical onerous choices about altering their enterprise mannequin or introducing these tough and friction-inducing checks.
Bitcoin Money Proponents Look to Good Bitcoin Money Chain
The Bitcoin Money neighborhood is now anticipating the advantages of the Good Bitcoin Money chain(Smartbch). BCH proponents consider Smartbch might unlock huge potential between the Ethereum (ETH)and Bitcoin Money (BCH) networks. As time has progressed, the alternate Coinflex revealed that “Coinflex BCH (mainnet) to BCH (SEP20) bridge has been reside for a complete week now – with zero points,” in a weblog publish announcement. Coinflex added:
We’re glad to announce that locking on the BCH chain, releasing BCH (SEP20, the Smartbch format), and going from Smartbch to BCH have all been working easily.
Bitcoin money (BCH) markets have been up over 5% over the last 24 hours and BCH at present holds the thirteenth largest market capitalization out of 10,000+ crypto property. BCH is up 24.4% over the last month and year-to-date, bitcoin money has gained 149%. On the time of writing, bitcoin money (BCH) has an total market capitalization of round $12.5 billion.
Bitcoin Money Followers Bid Detoken Farewell
On Reddit, subscribers on the subreddit discussion board r/btc had been unhappy to see Detoken shut its doorways in a Reddit publish added on Saturday. “That is the mail I simply obtained from detoken. Regardless of this dangerous information, I nonetheless hope, new initiatives [will] use Normal Protocols,” one consumer wrote on the discussion board.
The developer of the Normal Protocols mission, who goes by the identify “Emergent Causes,” replied to the remark and stated: “Thanks for the great needs. We proceed to work onerous for BCH, p2p digital money.” He additionally left a hyperlink to a weblog publish referred to as: “A peer-to-peer money technique for Normal Protocols” which could be learn by way of the learn.money running a blog platform.
What do you consider Detoken having to shut its doorways over regulatory considerations towards crypto derivatives? Tell us what you consider this topic within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It’s not a direct provide or solicitation of a suggestion to purchase or promote, or a advice or endorsement of any merchandise, providers, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, immediately or not directly, for any harm or loss prompted or alleged to be brought on by or in reference to using or reliance on any content material, items or providers talked about on this article.
