Connect with us

Uncategorized

Is Uniswap Safe?

Published

on

Is Uniswap Safe?

Decided Uniswap is safe for your level of risk tolerance? You can get Uniswap on Gemini today.

Of all decentralized exchanges (DEXs), Uniswap is the most popular, with over $5 billion in assets locked up; its governance token UNI holds a market cap of just over $2.5 billion, according to CoinMarketCap. 

When the lending and borrowing exchange Celsius froze all transactions, many begab to wonder whether their digital assets were being held by trustable entities. 

Uniswap is a permisionless exchange protocol on Ethereum. Uniswap does not have custody any of its users funds, so a Celsius-type event is not possible. Despite this, you need to be aware of general precautions when it comes to getting started with decentralized finance. 

Advertisement

Unlike the typical exchange, Uniswap operates 24/7 as an automated market maker (AMM), using its liquidity to provide users with service around the clock. This open and automated system is largely able to operate on its own, and the limited governance it does require is operated by a decentralized autonomous organization (DAO).

How is Uniswap Secured? What is UNI Token?

Uniswap uses the ERC-20 standard to operate its governance token UNI. The ERC-20 is a type of token on the Ethereum network, so the security of the token and DAO depend on the security of Ethereum. While Etheruem has held up well to this point, it is an ever-evolving ecosystem. The upcoming Ethereum Merge presents a number of risks, meaning that overlapping dangers to the Ethereum ecosystem could affect Uniswap.

Beyond the relationship between the chains, Uniswap founder Hayden Adams and Ethereum Co-founder Vitalik Buterin are friends. The two are colleagues through Ethereum development, with much of the inspiration behind Uniswap coming from Buterin.

While over 300,000 DAO members help to secure and govern Uniswap, crypto faces security risks. However, Uniswap has continued to show great decentralization, innovation and staying power in this marketplace.

Risks of Investing in Uniswap’s Governance Token, UNI

The key risk of investing in Uniswap is the extreme market volatility seen over the past few weeks. This trend can cause panic to cash out, and if exchanges are illiquid they could be unable to pay back their users. 

Advertisement

Along with the recent market selling pressure and liquidity risks, Uniswap has many competitors such as SushiSwap, PancakeSwap, and Aave. When it comes to DEX competition, key aspects are the amount of liquidity, trust and quality of user interface. Uniswap has delivered on each of these aspects so far, making it a fairly safe bet for a crypto investment.

Is Uniswap Safe?

Uniswap as an exchange has proven safe. It holds a treasury of over $1.5 billion in assets, helping to ensure liquidity. Adams is held in high regard in the crypto community. Unlike many projects, Adams is a public figure, with his reputation in part backing the exchange.

As far as the token goes, many like the coin, as Uniswap has proven successful and has a high ceiling for growth. Rocky market conditions and strong competition are dangers to be noted when calculating the safety of the token.

Where to Invest in Uniswap’s Governance Token, UNI

You can get UNI from a classic centralized exchange, like Coinbase Global Inc. (NASDAQ: COIN). If you are supporting the decentralized ethos you may as well get it straight from the source, through the Uniswap exchange. With a non-custodial wallet, you can easily get set up and start trading UNI along with a long list of other coins and tokens.

1 Minute Review

Advertisement

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For

Advertisement
  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform

Pros

  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins

Cons

  • Higher fees than competitors

1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to over 100 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Advertisement

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For

  • New investors looking for a simple mobile and web app
  • Day traders looking to use technical analysis tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their cryptos

Pros

  • Easy and quick signups — can get started in as little as a 5 minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts

Cons

  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
Advertisement

Uniswap Hacks

While no notable hacks of the Uniswap exchange have been reported, UNI tokens have been stolen from wallets. Another issue is when users forget their keys or password, losing their UNI forever. Owning your keys comes with its own set of risks and taking precautions is of utmost importance. The safest option is to own a hardware wallet.

Advertisement

Best Hardware Wallet for Uniswap

Whether you are buying UNI or swapping assets on the platform, it is important to keep your crypto safe. Many people transfer their tokens into a hardware wallet to keep their keys off the internet, further protecting them from scams. A popular hardware wallet used by crypto holders is Ledger Nano S.

Best Hardware Wallet 

The Ledger Nano S is a leading hardware wallet trusted by many crypto users. While a software wallet is useful for connecting to decentralized applications such as Uniswap, a hardware wallet provides another layer of security. 

buy now securely through Ledger Hardware Wallet’s website

Advertisement

1 Minute Review

Launched in 2014, Ledger has transformed into a fast-paced, growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for companies and individuals. Born in Paris, the company has since expanded to more than 130 employees in France and San Francisco.

With 1,500,000 Ledger wallets already sold in 165 countries, the company aims at securing the new disruptive class of crypto assets. Ledger has developed a distinctive operating system called BOLOS, which it integrates to a secure chip for its line of wallets. So far, Ledger takes pride in being the only market player to provide this technology.

Advertisement

Best For

  • ERC-20 tokens
  • All experience levels

Pros

  • Easy to set up and use
  • Supports more than 1,500 different digital assets
  • Tamper proof
  • Portable
  • Long-lasting battery
  • Bluetooth connectivity features
Advertisement

Cryptocurrency Market Outlook

The crypto market has been under intense pressure; as Bitcoin continues to plummet, altcoins have crashed even more fiercely. This macro trend has crushed Uniswap in terms of price, but the price drop has far more to do with the market sell-off than it does with Uniswap’s core fundamentals or safety.

Is Uniswap’s Governance Token, UNI, a Safe Investment?

The current market conditions make Uniswap a risky investment. With investors rushing to sell their assets, risk-on assets like crypto are typically some of the first to go. If the selling continues, an attractive buying price may appear but for now be cautious with this current bear market.

Advertisement

albania

Albania To Start Taxing Crypto-Related Income From 2023

Published

on

Albania To Start Taxing Crypto-Related Income From 2023

Authorities in Albania are finalizing regulations that will allow the taxation of income and profits from cryptocurrency investments. The government intends to begin imposing the levy in 2023, after adopting the necessary legislation which has been proposed for public consultations.

Albania Set to Impose Crypto Tax as Early as Next Year

The Albanian state should begin collecting taxes on income from crypto assets as of 2023 in accordance with a new income tax bill, the local English-language portal Exit News reported on Friday. The government also hopes to pass a number of other laws and bylaws this year in order to comprehensively regulate the matter.

The special tax legislation is currently open for public consultations. It introduces the concept of taxing crypto holdings and income derived from virtual assets. The latter have been defined as “a digital representation of a value that can be deposited, traded or transferred in digital form, and that can be used for payment or investment purposes or as a medium of exchange, including but not limited to cryptocurrencies.”

Advertisement

However, the definition does not cover central bank digital currencies (CBDCs), the report notes. That’s despite a growing number of monetary authorities around the world developing a digital version of their national fiats. The list includes major powers such as the United States, the European Union, China, and the Russian Federation.

The Albanian law also defines cryptocurrency mining as an activity using computing power to confirm transactions and gain virtual assets in exchange. The extraction of cryptocurrencies has been a grey area although law enforcement has been going after illegal mining facilities in the country and pressed charges against some of their operators.

Under the new legislation, any income from crypto transactions or mining will be classified as corporate income when it’s received as a result of business activity. And when the beneficiaries are private individuals, they will have to pay capital gains tax of 15%.

Financial Watchdog Tasked to Expand Crypto Regulatory Framework

Earlier this month, the Albanian parliament ordered the Financial Supervisory Authority (AFSA) to prepare and adopt new regulations regarding cryptocurrencies by the end of 2022. Albanian law allows crypto trading platforms to legally work in the country but no licensed entities are currently operating in Albania, Exit News remarked.

Two years ago, Albania also adopted a law titled “Financial markets based on distributed ledger technology.” While many have welcomed the legislation, critics have questioned whether the small nation in South East Europe, still an EU hopeful, is capable of properly regulating its crypto sector to prevent it from being used for money laundering, something it’s struggling to achieve in the fiat space.

Advertisement

The legislature referenced a recent report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval), which recommended additional steps regarding the risks associated with cryptocurrency. In November 2021, the AFSA approved its first two regulations implementing the crypto markets law, which introduced capital and licensing requirements for entities working with digital assets.

Do you expect Albania to adopt comprehensive regulations for its crypto space by the end of the year? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

Continue Reading

Uncategorized

NHL enters the NFT space partnering with Marketplace Sweet

Published

on

NHL enters the NFT space partnering with Marketplace Sweet Abdulrasaq Ariwoola · 42 seconds ago · 1 min read

The NHL partnership with Sweet will offer a variety of digital collectible experiences to its fans, tradable in the marketplace

1 min read

Advertisement

Updated: June 25, 2022 at 3:59 am

Cover art/illustration via CryptoSlate

👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

The National Hockey League on Thursday announced its partnership with NFT Marketplace Sweet. This partnership will be the league’s first dive into digital collectibles.

Advertisement

The partnership, of which the NHL’s players and Alumni’s association are part, will go live in October to mark the start of the 2022-2033 NHL season.

The NHL Marketplace

The NFT marketplace is expected to offer a range of experiences to NHL fans. Including digital collectibles that showcase historical moments, past and present season game highlights, and NHL stars top plays.

The marketplace will also feature gamified collection experiences, specialty packs, and 3D interactive trophy rooms where users can display their collections. Among these offerings there are also dynamic NFTs designed to change based on current team data.

Additionally, fans would be able to buy, sell, collect and trade the collectibles on the marketplace.

However, the announcement did not state which blockchain would host the marketplace.

Advertisement

NFTs in the sporting space

The NHL  joins a long list of sporting institutions that have embraced digital collectibles.

In 2020, the NBA launched Top Shot NFTs, its digital collectibles marketplace, in partnership with DapperLabs. Likewise, the NFL launched its play and own NFT game while the MLB is to launch its NFT game soon.

However, the extreme sell-off in the crypto market has seen crypto companies pull out of sports deals. This is so as crypto companies strive to stay afloat as the severe sell-off continues in the market.

FTX recently pulled out of a partnership deal with Los Angeles Angels. Similarly, sources suggest a patch deal between NBA Washington Wizards and a crypto company has crashed.

Advertisement
Continue Reading

Uncategorized

What Lido staking dominance may mean for Ethereum’s future

Published

on

What Lido staking dominance may mean for Ethereum’s future Abdulrasaq Ariwoola · 2 hours ago · 2 min read

The Ethereum community has raised fears of lido staking dominance leading to centralization. What does that mean for ETH 2.0?

2 min read

Advertisement

Updated: June 25, 2022 at 3:33 am

Cover art/illustration via CryptoSlate

👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

Lido DAO token holders have commenced voting to determine whether the DeFi platform should reduce its staking pool. The vote is a follow-up to a governance proposal released on June 24.

Advertisement

The voting process results from a month-long deliberation over Lido’s staking dominance and whether it should limit itself to curb potential centralization risks.

Lido currently holds 31% of all staked Ether on the Ethereum proof-of-stake blockchain, the Beacon chain. The staking dominance has raised fears within the Ethereum community, and critics fear it will threaten Ethereum’s decentralization.

The vote is expected to end on July 1, and the result will determine whether Lido will self-limit or not. Should the majority of voters vote in favor, another vote will take place on how the self-limiting process should work.

Concerns over stETH dominance

In the governance proposal, Lido stated that its staking dominance would give it more voting power once the Beacon chain goes live. As a platform that started to counter centralized exchanges, it argued that such centralized voting power poses an existential threat to the blockchain.

The Ethereum community has raised similar fears about the centralization of voting powers. The DeFi platform currently has around one-third of all staked Ether, which could give voting leverage once the transition to the Beacon chain is complete.

Advertisement

Vitalik Buterin, the Ethereum co-founder, has argued that no single protocol should have a majority in staking ETH. He opined that such dominance, combined with Lido’s governance structure, is potentially a dangerous point of centralization.

Further, it stated the proposition is premised on the belief that other liquid staking protocols would also limit their exposure. This would effectively allow smaller protocols to meet the supply shortfall.

What Lido staking dominance means for ETH2.0

Ethereum’s transition to a PoS blockchain means it will rely on validators to validate transactions on the blockchain. Unlike a PoW blockchain that requires miners to expend excess energy to solve complex mathematical problems.

However, to operate a validator node, a user must deposit 32 ETH, which is a long shot for many users. Lido, on the other hand, as a staking service provider, allows users to bypass this requirement and earn staking rewards.

Advertisement

According to data from Etherscan, roughly 12.6 million ETH is staked in the ETH2.0, which amounts to 10.6% of the circulating supply of ETH. Of the 12.6 million ETH staked, approximately 4.2 million have been staked through Lido by 73,369 stakers, making Lido the most used staking pool on Ethereum.

This means, should Ethereum transition to its PoS blockchain with Lido still having the lion’s share of the staking dominance, it would give the DeFi platform excessive influence over transaction verification which many warn could pose a risk. Some concerns include validator slashing, governance attacks, and smart contract exploits.

On the other hand, Lido’s staking dominance could help prevent a takeover by a centralized exchange and ensure the blockchain remains decentralized.

stETH remains depegged

The staked Ether, which is supposed to be pegged to ETH, remains depegged after a wave of massive sell-offs. Speculations have profused about the security of the token and whether its depegging could spell more chaos for the crypto ecosystem.

On June 16, Alameda Capital, one of the largest holders of stETH, dumped its stETH holdings, a massive $57 million. This is coupled with the continued financial troubles of Celsius and Three Arrows Capital, both large holders of stETH.

Advertisement

As of the time of press, stETH has not gained parity with ETH and is trading at $1,173.

Continue Reading

Trending

Get our daily News updatesSignup to get instant updates straight to your email