Opportunity, threats and snake oil | Mine Digital
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Opportunity, threats and snake oil

March 5, 2020 • 
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We talk opportunity, threats and snake oil in this weeks FUD

Here’s your second edition of the weekly FUD, where we talk about the biggest FUD of the week, and try to clarify it with facts and truth as the twitter-sphere as you know twitter tends to overreact and news/media outlets are the first to push fake news. Leggo.

Brad Garlinghouse still defrauding XRP holders

In a recent SEC filing, MoneyGram has revealed huge cash injections around $11 Million USD from Ripple in the form of XRP.

Essentially Ripple is paying MoneyGram to use the ODL platform and compensating them with XRP tokens, now while this is not illegal as XRP is not a security for the time being it is somewhat immoral as essentially Ripple is using XRP as a piggybank to convince firms to use the platform with the promise of free money. This, in turn, would negatively affect XRP holders as price dumps.

MoneyGram did, however, state that the funds are being used to offset the development and operational costs they incur while using the Platform and Brad Garlinghouse did confirm that Ripple would not be profitable nor cash flow positive if they did not have XRP tokens to sell.

My take; the same thing we have always been saying, XRP token is simply something Ripple uses to finance their activities, XRP holders’ interest, not a top priority, may not even be a priority at all.

Justin Sun seizes control of Steemit with the help of major exchanges

Justin Sun has more than his share of controversy, this week is no different. In his latest shenanigan Sun decided to forcefully take control of the Steem blockchain, how did he do that?

It’s quite simple, Steem uses DPOS, delegated proof of stake, essentially the community votes with their holdings and those with higher holding get more votes. Remember how everyone says “not your keys, not your coins”. Well, Sun with the help of major exchanges Huobi and Binance used customer coins held on the exchange to vote for Sun to seize control of the Blockchain.

Now this has it’s own ethical issues, where do we draw the line? Can exchanges vote on the behalf of users? Vitalik was more than happy to voice his opinion on the drama:

This was a Malicious attack as Vitalik eloquently points out; the first “de facto bribe attack”.

Justin did go on a tweetstorm shortly after.

Now what Justin is referring to as an attack is the current holders wanting to fork the network, let’s not discuss this now but what is the point of decentralization when a couple of people behind closed doors decide what to do? I know the votes where revered but where does this stop? And when does a government decide to seize major exchanges and shut our ecosystem down?

CZ Binance accidentally assists Tron in a malicious attack on Steem

Of course, no crypto drama is complete without CZ. The CEO of Binance took to twitter claiming this was an “accident” and that he thought it was just an upgrade. Later on, he goes on twitter stating they were aware of the hack but did not want to worry people so they did the attack in the dark.

Binance did reverse the vote, but after the hack was “squashed”

My real question though is if it hadn’t been for the transparent nature of blockchains, would they have done this without telling us? If they never got caught would they have came clean? How many other instances of similar attacks have happened without our knowledge?

I think this is a serious threat to decentralization and to the community as a whole.

And I certainly do not think “lol” is a valid reaction to Vitalik’s concern.

Pomp publicly says eth is useless or did he?

in other news which was first tweeted by CZ, Pomp attacks Ethereum saying it is “Poor man’s fiat”.

Now let’s just be clear here, I did some digging on this, it was taken completely out of context. Yes, Pomp did say that but what he was referring to was DeFI being in an early stage where it is not yet good enough and facing many issues. This is a fair point, and considering Pomp’s firm is heavily invested in DeFi and Eth products I highly doubt he is trying to ruin Ethereum, he was merely voicing a concern, but hey, if there is an opportunity to clout chase why not take it.

This guy, whoever he is, decided this was a good opportunity to shill his own product on the back of this drama and pushing a misquoted narrative while hypocritically bagging out fake news crypto media.

Pomp called him out for using him to promote his own product, then Peter McCormack decided to comment.

We are grateful to Peter McCormack for putting this guy back in his lane.

Andre Cronje leaves DeFi, encouraged by a thankless community

Last item this week, more DeFi drama. Andre Cronje, the one-man team behind DeFi product iEarn decided to leave the project due to the thankless and quite toxic community.

As he told Cointelegraph;

It’s a harsh reality as an impatient community waits for a perfect system to be built overnight. Unfortunately, this is the real world and these are extremely complex models to build which will take years, I encourage the community to be supportive rather than to hinder innovation with cruel comments. If you guys can do it better, by all means, show us, the code is open-source, go make suggestions and contribute to building this new financial system overnight.

Written By
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