On August 28, the Bitcoin Cash-based decentralized financial platform (defi) Detoken announced that the project will close its doors on September 4, 2021. The project’s founder, Semyon Germanovich, stated that the main reason the Defi project was discontinued is because of “the changing regulatory outlook for cryptocurrency derivatives”.
Defi Project Detoken will cease operations on September 4th
In December 2020, Bitcoin.com News reported on the Defi platform called Detoken, a project that allowed users to secure or long their Bitcoin cash (BCH) without custody. At the same time, General Protocols introduced Anyhedge technology and the protocol was used by the Detoken platform. Semyon Germanovich stated on Saturday that the Detoken platform had suspended the project because of regulatory concerns.
“I am sad to announce that Detoken will close its doors on September 4, 2021,” said Germanovich. “There are several factors that influenced our decision to shut down the Detoken platform. The main reason is that it is becoming increasingly clear that Detoken’s business model cannot continue to function in light of the changing regulatory outlook for cryptocurrency derivatives. ”The Detoken Founder added:
I’ve always believed in financial freedom and privacy, but in order to continue to operate Detoken in its current form, sooner or later we would have to introduce identity checks for your customers. The sad reality, unfortunately, is that all players in the industry have to make the same tough decisions to change their business model or to introduce these difficult and frictional controls.
Proponents of Bitcoin Cash rely on intelligent Bitcoin Cash Chain
The Bitcoin Cash Community is now anticipating the benefits of the Smart Bitcoin Cash chain (Smartbch). BCH proponents believe that Smartbch could unlock enormous potential between the Ethereum (ETH) and Bitcoin Cash (BCH) networks. Over time, the Coinflex exchange revealed in a blog post announcement that “the bridge from Coinflex BCH (Mainnet) to BCH (SEP20) has now been live for a whole week – with no problems”. Coinflex added:
We are happy to announce that locking the BCH chain, unblocking BCH (SEP20, the Smartbch format) and switching from Smartbch to BCH all went smoothly.
Bitcoin Cash (BCH) markets are up over 5% in the past 24 hours and BCH currently holds the 13th largest market cap of over 10,000 crypto assets. BCH is up 24.4% last month and Bitcoin Cash is up 149% since the start of the year. At the time of writing, Bitcoin Cash (BCH) has a total market cap of around $ 12.5 billion.
Bitcoin Cash fans say goodbye to Detoken
On Reddit, subscribers to the r / btc subreddit forum were saddened when Detoken closed its doors in a Reddit post added on Saturday. “This is the email I just received from detoken. Despite this bad news, I still hope for new projects [will] use general protocols “, wrote one user in the forum.
The developer of the General Protocols project, called Emergent Reasons, responded 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 entitled:“ A Peer-to-Peer Cash Strategy for General Protocols ”, which was read on the blogging platform read.cash can be.
What do you think about Detoken having to close its doors due to regulatory concerns about crypto derivatives? Let us know what you think on this matter in the comments below.
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