Real stability is Self Custody for DeFi on Bitcoin
Let’s learn from what has happened in the crypto sector lately.
Can the failures and scams of others be a way to understand where to improve this industry?
In the last period, the crypto world has had scenarios that seem straight out of a weekend binge in Silicon Valley.
Imagine investing in anything run by a guy who is so swaggering as to call Terra Luna his greatest invention (recall that he has previously tried to create other projects, all of which failed).
TerraUSD was riskier than other coins and it was known all along that in fact unlike other popular stablecoins; it was not backed by cash, treasuries, or other traditional assets. Instead, its supposed stability came from algorithms that linked its value to Luna.
Kwon used two related currencies as the basis for more elaborate loan & mortgage projects in a murky world. Sooner or later the collapse was bound to happen.
First problems started because of a flaw that was exploited. This caused the stablecoin to start a depeg with the US dollar. Meanwhile more LUNA were being generated and sold to try to support UST but the efforts were in vain as within a few hours the stablecoin reached 11 cents, and Luna dropped from over $100 in value to pennies.
Retail investors were devastated and everyone read how a few days before the collapse many large institutions sold their coins… Twitter became the platform for live news and all releases were made there, and most of the inquiries were about the whereabouts of Do Kwon who may have fled Korea.
He seemed to have disappeared from all social media, his account disappeared, Interpol was trying to track him down throughout Asia, and many offered rewards for those who provided news about his whereabouts.
Do Kwon would every now and then suddenly come back on social media posting that the news was fake, only to disappear again. We had just witnessed a parody of the world’s best scam with only the faintest whisper to be heard off in the distance.
Many people put their money in driven by FOMO and doing superficial research without fully understanding the basics of a project, thus not knowing all the side effects there might be of their particular investment.
Do Your Own Research.
Be the master of your assets.
Choose the only truly decentralized chain (₿)
The Portal project is a peer-to-peer, trust-minimized application running on top of Bitcoin. It allows users to access a decentralized network right from their wallets. In addition, users can now manage multiple blockchain assets and financial services from within their wallets. With Portal, DeFi becomes a service that anyone can provide, maintaining anonymity for a competitive fee within open, transparent markets, with a security model as robust as Bitcoin mining. And because it is built on Fabric, it comes with privacy, speed, and security.
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