The UNI token surged 20% as China’s ban on crypto puts the main focus on decentralized exchanges as investors turn away from centralized exchanges so let’s read more about it in our latest altcoin news today.
Crypto investors seem to be betting that the Chinese latest blanket ban on virtual currency businesses will be a blessing in disguise for the decentralized exchanges that facilitate peer-to-peer transactions with no intermediary. This is quite evident from the weekend market action since the data shows native tokens on major decentralized exchanges like SushiSwap and Uniswap which gained 18% and 22% respectively in the past day which lead Bitcoin higher by a huge margin while centralized exchanges’ tokens are in the red. The head of research at Synergia Capital Denis Vinokoruov said:
“The great rotation into everything decentralized is upon us and all thanks to the latest and undoubtedly most aggressive crypto ban by China. Decentralized autonomous organization Maker’s DAI stablecoin will likely gain substantial market share versus Tether as a result.”
Vinokourov also shares a bullish outlook on the layer 1 and 2 solutions that support decentralized finance and the NFTs and marketplaces. The People’s Bank of China declared all virtual currency-related activities illegal and banned all offshore exchanges from serving mainland Chinese users. The statement disqualified Tether as well as the biggest stablecoin globally as a legal tender, along with BTC and ETH, and marked the toughest crypto crackdown as of late. Huobi already took steps to comply with the new regulations and suspended new user signups from China while Binance took similar actions. Huobi also said that it will gradually close the accounts of the China-based users by the end of the year and the native token of the platform dropped 17% in the past day to trade near $7.43. the cryptocurrency hit an eight-month low near $6 over the past few hours.
On the other hand, the UNI token surged 20% after it was stuck in a four-week falling channel. As recently reported, The Chinese government continued its conscious effort to eliminate the use of crypto in the country by reminding the public of the risks associated with them. During a media briefing, the deputy director of the Financial Consumer Rights Protection Bureau of People’s Bank of China Yin Youping who stated that digital assets are nothing but investment speculation. He warned investors to protect themselves by staying away from crypto-related transactions and increase their awareness of the risks associated with these investments
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