MetaverseNFTCoins.com
  • NFT News
  • Crypto News
  • Blockchain
  • Regulations
  • Scams
No Result
View All Result
MetaverseNFTCoins.com
No Result
View All Result

Senator Warren calls DeFi the most dangerous space in crypto

December 16, 2021
in Scams
Reading Time: 2 mins read
A A
Senator Warren calls DeFi the most dangerous space in crypto
ShareShareShareShareShare

Senator Elizabeth Warren in her recent submission to the US Senate Banking, Housing, and Urban Affairs Committee has urged regulators to place a lid on the burgeoning DeFi sector by paying more attention to stablecoins.

DeFi is the most dangerous space in crypto

While describing DeFi, the U.S Senator said decentralized finance is the most dangerous niche in crypto.

To her, it is a place where scammers, cheats, and swindlers get to meet innocent investors and traders. It is also a place where traders cannot identify those they are dealing with. According to her, “someone can’t even tell if they are dealing with a terrorist.”

Warren went on to establish the relationship between DeFi and Stablecoins, noting that DeFi would not survive without stablecoins since they are the tools used for transactions on the platform.

In her words:

“Stablecoins provide the lifeblood of the Defi ecosystem. In Defi, people need stablecoins to trade between different coins, to trade derivatives, to lend and borrow money – all outside the regulated banking system. Without stablecoins, Defi comes to a halt.”

The lawmaker also raised a question on whether DeFi can lead to economic instability and if the space can continue to grow without the input of Stablecoins.

Senator Elizabeth Warren questions Stablecoin backings

During the hearing, Senator Warren stated that stablecoins like Tether (USDT), for example, have controversial backings. In fact, she stated that just a fraction of the stablecoins has real dollar-backing based on a report released by the stablecoin issuer itself.

She continued that this Tether report wasn’t verified nor audited by any government agency.

“It’s worse than that. In troubled economic times, people are most likely to cash out of risky financial products and move into real dollars. Stablecoins will take a nosedive precisely when people most need stability, and that run-on-the-bank mentality could ultimately crash our whole economy.”

Warren went on to describe stablecoins as not always having what they claimed to be and that if these issuers were to crash, it could crash the economy.

Posted In: U.S., DeFi, People
Quadency

CryptoSlate Newsletter

Featuring a summary of the most important daily stories in the world of crypto, DeFi, NFTs and more.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Credit: Source link

ShareSendTweetPinShare
Previous Post

BTC/USD Couldn’t Trade Above $50,000

Next Post

Robotics.Online launches free $300 investment promotion for new investors

Next Post
Robotics.Online launches free $300 investment promotion for new investors

Robotics.Online launches free $300 investment promotion for new investors

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Weekly Updates

NEO Price Prediction: NEO Is Up By 39.4%, Is It The Right Time to Invest?

NEO Price Prediction: NEO Is Up By 39.4%, Is It The Right Time to Invest?

February 3, 2023
Amazon To Launch NFT Initiatives and Enter the Crypto Market

Amazon To Launch NFT Initiatives and Enter the Crypto Market

February 1, 2023
Mango Markets Sues Hacker And More

Mango Markets Sues Hacker And More

January 29, 2023
Pros, Cons, and Key Features

Pros, Cons, and Key Features

January 30, 2023
NFTs-Related Crypto With High-Profit Potential

NFTs-Related Crypto With High-Profit Potential

January 30, 2023
MetaverseNFTCoins.com

This is an online news portal that aims to provide the latest NFT news, crypto news, blockchain, regulations, scams, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch.

What’s New Here!

  • TZERO Shut Down Crypto Exchange
  • FBI seizes $100,000 in cryptocurrency and NFTs
  • Price Prediction: By February 9, 2023, Zilliqa (ZIL) Value Will Increase to $0.045938

Subscribe Now

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2021 - metaversenftcoins.com - All rights reserved!

No Result
View All Result
  • NFT News
  • Crypto News
  • Blockchain
  • Regulations
  • Scams

© 2021 - metaversenftcoins.com - All rights reserved!

  • bitcoinBitcoin (BTC) $ 23,320.00 0.47%
  • ethereumEthereum (ETH) $ 1,666.96 0.14%
  • tetherTether (USDT) $ 1.00 0%
  • bnbBNB (BNB) $ 330.35 0.73%
  • usd-coinUSD Coin (USDC) $ 1.00 0.02%
  • xrpXRP (XRP) $ 0.410691 0.04%
  • binance-usdBinance USD (BUSD) $ 1.00 0.01%
  • cardanoCardano (ADA) $ 0.396872 1.33%
  • dogecoinDogecoin (DOGE) $ 0.095131 0.66%
  • matic-networkPolygon (MATIC) $ 1.25 0.87%
  • okbOKB (OKB) $ 40.48 1.68%
  • solanaSolana (SOL) $ 24.26 1.56%
  • shiba-inuShiba Inu (SHIB) $ 0.000015 0.89%
  • staked-etherLido Staked Ether (STETH) $ 1,662.01 0.14%
  • polkadotPolkadot (DOT) $ 6.83 1.79%
  • litecoinLitecoin (LTC) $ 98.31 2.42%
  • avalanche-2Avalanche (AVAX) $ 20.94 2.01%
  • tronTRON (TRX) $ 0.064200 0.16%
  • uniswapUniswap (UNI) $ 7.20 0.4%
  • daiDai (DAI) $ 1.00 0.1%
  • cosmosCosmos Hub (ATOM) $ 14.57 3.27%
  • wrapped-bitcoinWrapped Bitcoin (WBTC) $ 23,299.00 0.72%
  • chainlinkChainlink (LINK) $ 7.19 0.87%
  • the-open-networkToncoin (TON) $ 2.32 1.51%
  • ethereum-classicEthereum Classic (ETC) $ 23.69 0.55%
  • leo-tokenLEO Token (LEO) $ 3.44 1.57%
  • moneroMonero (XMR) $ 170.19 0.99%
  • aptosAptos (APT) $ 16.69 0.9%
  • bitcoin-cashBitcoin Cash (BCH) $ 137.21 0.48%
  • stellarStellar (XLM) $ 0.092756 0.37%
  • apecoinApeCoin (APE) $ 5.87 1.71%
  • nearNEAR Protocol (NEAR) $ 2.53 1.22%
  • crypto-com-chainCronos (CRO) $ 0.082889 0.64%
  • filecoinFilecoin (FIL) $ 5.49 2.76%
  • quant-networkQuant (QNT) $ 141.10 2.73%
  • algorandAlgorand (ALGO) $ 0.265557 2.08%
  • hedera-hashgraphHedera (HBAR) $ 0.072846 1.06%
  • lido-daoLido DAO (LDO) $ 2.19 6.57%
  • vechainVeChain (VET) $ 0.024778 0.15%
  • fantomFantom (FTM) $ 0.611911 1.25%
  • internet-computerInternet Computer (ICP) $ 5.78 1.38%
  • decentralandDecentraland (MANA) $ 0.773547 1.89%
  • the-sandboxThe Sandbox (SAND) $ 0.771155 0.44%
  • axie-infinityAxie Infinity (AXS) $ 11.33 0.94%
  • aaveAave (AAVE) $ 88.37 3.31%
  • eosEOS (EOS) $ 1.10 0.04%
  • flowFlow (FLOW) $ 1.14 3.16%
  • terra-lunaTerra Luna Classic (LUNC) $ 0.000193 5.05%
  • elrond-erd-2MultiversX (EGLD) $ 46.24 0.59%
  • theta-tokenTheta Network (THETA) $ 1.12 0.24%