Binance DEX received a lot of attention recently due to the sheer number of projects being listed on it. Moreover, the rise in the popularity of these projects and the price of tokens prompted popular proponents of the crypto-verse to opine on the matter.
A new update from Binance DEX geo-blocking users has once again attracted criticism over how it could affect the collective market.
However, like BitMEX, Binance’s rules can also be easily overcome by using a VPN, raising questions over the ‘decentralized’ nature of the exchange.
Whale Panda tweeted:
“Reminder that it was never a DEX so stop calling it a DEX. It’s just a word they used to pump $BNB, it was never meant to be decentralized.”
Hasu, another prominent, but anonymous user commented:
“Doesn’t non-custodial solve like 95% of issues that centralized exchanges have?”
The comment suggested the use of Arwen, however, CZ replied:
“try Arwen and let us know how the experience compares.”
According to the update, Binance’s decentralized exchange would start geo-blocking 29 countries, similar to the rules being adhered by other centralized exchanges, like BitMEX.
Vladislav Ginko, a Twitter user, commented:
“Complying with biased US regulations based on WH obsession that US sanctions introduced without any US court decision must be complied everywhere in the world, not only in USA. looks not only that such crypto exchange is not decentralized but it abides unlawful restrictions.”
The topic of discussion was still hot and an official response from Binance is awaited. As suggested by The Block, this move could be connected to “the SEC charging the founder of decentralized exchange EtherDelta with operating an unregistered securities exchange in November. Binance theoretically could not prevent anyone from issuing a security token”.
A Reddit user, mycryptotradeacount, defended the exchange’s move:
“Binance has never claimed that their exchange was goung to be fully decentralised, even CZ tweeted about this a few times saying that it is not going to be a DEX.”
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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
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