Leading cryptocurrency exchanges should create a single mechanism for stopping trading in emergency situations, said Tushar Jain, managing partner of Multicoin Capital Investment Fund.
The entire DeFi ecosystem almost died today. Several large market participants went bust.
Many traders literally could not get money to the exchanges fast enough to trade due to blockchain congestion & the extreme volatility was then made worse.
– Tushar Jain (@TusharJain_) March 13, 2020
He noted that what is happening on the market “is a strong argument” in favor of his proposal.
A similar mechanism is used in US stock markets. This week him launched already twice – on March 9 and 12.
Jain also said that the DeFi ecosystem “nearly died” amid a market crash. Many traders did not manage to raise funds due to network congestion, he stressed.
“If we all have to accept the fact that cryptocurrencies can collapse by 60% per day, this will significantly limit the usefulness of the technology. Exchange incentives are associated with market growth. If it can fall by 60% in a day, then the whole market for this technology will be much smaller. “ – wrote Jain.
ShapeShift cryptocurrency platform CEO Eric Vorhes disagreed with him.
No, Bitcoin as a store of value isn’t dead just because it had a super shitty day. No, Ethereum and defi aren’t dead just because they had a super shitty day. In the coming months the world will see what anti-fragile means.
– Erik Voorhees (@ErikVoorhees) March 13, 2020
“No, Bitcoin, as a store of value, is not dead, just because it had a terribly shitty day. No, Ethereum and DeFi aren’t dead either just because they had a terribly shitty day. In the coming months, the world will see what anti-fragility means, “ – said Vorhes.
Jain responded by emphasizing his concern that “the DeFi sphere cannot be sustainable if the entire ecosystem can be eliminated in less than 24 hours.”
Recall several large bitcoin exchanges at once declared about problems in the work against the backdrop of a market collapse.
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