HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Silk Road’s Ross Ulbricht Brands Ethereum’s MakerDAO a “Cool Concept”

Altcoins 2020/06/27 04:00 by Nick Chong

There’s no doubt Ethereum decentralized finance (DeFi) has been a hot trend over recent weeks. Nothing shows this as well as the value of cryptocurrencies locked in

With DeFi gaining steam, there have been new voices chiming in. One such voice commenting on DeFi is Ross Ulbricht, one of the earliest known Bitcoin adopters and the founder of the online marketplace Silk Road.

Related Reading: DeFi Effect: Scaling Debate Begins as Ethereum Fees Reach Two-Year Highs

Ethereum’s DeFi Flagship MakerDAO Is a “Cool Concept” 

Ulbricht, who is currently serving time in prison due to his involvement in the Silk Road, published a piece on June 26th outlining his thoughts on MakerDAO.

He opened it by saying that he thinks the Maker Protocol is a “cool concept” yet noted that the structure of the protocol does have flaws:

“Vault owners in the Maker Protocol are doing something similar [to modern banking]. They are holding ether in their vaults, then lending out DAI backed by that ether. […] This is not a good model for Maker to emulate.”

The early Bitcoin adopter explained that with this system, crashes like the one in March, when MakerDAO basically went into debt, could happen again.

Ulbricht suggested that to combat these issues, Maker should implement a negative stability fee. Alternatively, he suggested a system where owners of Maker Vaults, which mint the DAI stablecoin, set fees for users of the protocol.

Ulbricht Is Short-Term Bearish on Bitcoin

Ulbricht’s thoughts on MakerDAO isn’t the only commentary on crypto he has recently dispensed.

The early Bitcoin adopter wrote in a Medium post titled “Bitcoin by Ross #9: A Strong Signal for Lower Prices” that the asset is likely in the second phase of a macro bear market.

Citing Elliot Wave analysis, he suggested that Bitcoin could fall to the $2,000s or even $1,000s by June or July. Alternatively, Ulbricht wrote, those prices could be reached in 2021.

According to Investopedia, Elliot Wave analysis “is a method of technical analysis that looks for redcurrant long-term price patterns related to persistent changes in investor sentiment and psychology.”

That’s not to say that he thinks Bitcoin will collapse in the long run. Far from.

If anything, Ulbricht is more bullish than ever before, it’s just that he sees a short-term correction in the works. Case in point, he wrote in a follow-up post to the post predicting a drop under $3,000:

“I am still bullish long-term… The point is — long term — the sky is the limit. The remainder of wave II and the start of wave III will seem like insignificant fluctuations by the time wave III is under way. Decades from now, anything below $20,000 will seem cheap.”

Related Reading: A DCG Executive Has an Unexpected Concern for Ethereum’s DeFi
Featured Image from Shutterstock
Price tags: ethusd
Silk Road's Ross Ulbricht Brands Ethereum's MakerDAO a "Cool Concept"

0 Like(s)



You should also read...

Bitcoin 11/12/19 06:10 by Kai Sedgwick
Ross Ulbricht Uses Elliot Waves to Predict Bitcoin’s Trajectory From Behind Bars
Ross Ulbricht, serving life without parole for allegedly running the Silk Road marketplace, hasn’t allowed his detention to deprive him from monitoring bitcoin’s price action. In a new blo...
Read More
Bitcoin 14/12/19 06:49 by Jide Idowu
First Bitcoin-Collateralized Stablecoin Launches On The RSK network
A recent announcement by a Latin American startup, Money on Chain reveals that the firm has launched a decentralized finance (DeFi) platform on a bitcoin sidechain, the Rootstock (RSK). As further ex...
Read More
Other 22/07/20 23:10 by Olivia Brooke
DeFi’s dominance remains unrivaled, total value locked surpasses $3 billion
Decentralized finance (DeFi), the idea that decentralization can stretch to traditional finance and still not be hindered or affected by any centralized government has, since the start of this year, ...
Read More
Crypto 13/12/20 03:15 by Nick Chong
SushiSwap’s SUSHI Bounces 10% as Crypto Market Recovers
SushiSwap (SUSHI) incurred a strong drop this past week, falling alongside Bitcoin, Ethereum, and the rest of the DeFi market. The price of the leading cryptocurrency fell from its multi-month highs n...
Read More
Altcoins 04/07/21 01:33 by Asad Gillani
Polygon Opens Vault On MakerDAO, Commits $50 Million Worth Of Matic Tokens
Polygon has announced the integration of yield optimization vaults on the Maker Network. The blockchain-enabled protocol, formerly referred to as the Matic Chain, tweeted on Wednesday that it “w...
Read More