Crypto Scoop: Grayscale to launch DeFi Trusts

Yellow Card Crypto Scoop

On this week’s Crypto Scoop:

  • Grayscale eyes DeFi
  • DeFi grows by nearly 3000% in the last year
  • Reddit to work with Ethereum Foundation
  • SA to put out more crypto regulation

Grayscale files 3 new trusts under DeFi

Last week, Grayscale made the news for purchasing $607 million worth of bitcoin. This Wednesday, the digital asset manager filed to register five new trusts for assets connected to decentralised finance.

Grayscale’s statutory trustee for the U.S, Delaware Trust Company now lists trusts for Aave (AAVE), cosmos (ATOM) and Polkadot (DOT) as well as privacy coins Monero (XMR) and Cardano (ADA).

Although the company moved to file these five trusts, it says: “Occasionally, we will make reservation filings, though a filing does not mean we will bring a product to market.”

DeFi marks $29 billion in value

The value of DeFi which runs majorly on the Ethereum network has increased about 30 folds from last year. As at January 2020, the total amount locked in Decentralised Finance was at $850 million but this increased drastically on Tuesday as it crossed $29 billion for the first time.

According to Binance’s research on crypto user motivations and behaviours, 66% of users said that they use DeFi applications. Cindy Leow, Partner and Portfolio Manager at digital asset management firm, 256 Capital, argues that the reason for DeFi’s increase in value could have to do with traders moving in on lesser-known tokens.

Reddit is working with Ethereum to build scaling tools for developers

Reddit, the social media platform has teamed up with the Ethereum Foundation to establish its first blockchain partnership. The purpose of the partnership is to build scaling tools that empower users to create, govern and grow their own communities.

Reddit wants to speed up the progress on scaling and work on the technology required to launch large scale applications like Community Points on Ethereum.

Last year, Reddit created Community Points to give back more ownership and control to users. Being built on Ethereum means that the Community Points represents a user's ownership in the community and rewards them for their contributions whether posts or comments.

Reddit is using this partnership as a way of utilising decentralised technology to empower individuals to have ownership in the communities that they create and contribute to.

South Africa to put out more crypto regulation

It all started with a platform called Mirror Trading Platform who promised users two times their funds when they invested their Bitcoin, which would then be traded on their behalf in the forex market. The platform claimed to have about 260,000 members and $740 million worth of Bitcoin.

In December, the Ponzi Scheme began to unravel after clients struggled to withdraw their funds. A leaked Zoom meeting between the executives suggested that they were misled and that the company’s CEO who was accused of controlling $200 million worth of BTC may have fled to Brazil.

The head of South Africa’s Financial Sector Conduct Authority, Brandon Topham says, “We need to make an example of MTI so that people understand that investing in Ponzi is never a great idea.”