Hey yo, howzit going with those addicted to this channel, the Chico Army & any newbie,
a viewer of the tube...let my introduce myself, as Tyler the host of the crypto channel where
it’s always safe to land... right here with us in our backyard...you
know how his bunghole clinches, it’s time for Chico Crypto!
Well, you wanna know who else is clinching their bunghole?
Centralized exchanges, who have had the power in the crypto space since trading began with
Mt. Gox, and now they are starting to realize that they may just be losing that grip of
power.
Decentralized exchanges, DEXs and swapping protocols, are here and if you couldn’t
tell...they are surging.
In January of 2019, total DEX volume was just 40 million dollars.
Last month June 2020, 1.5 years later...total volume was over 1.5 billion.
And the beauty of all that volume, is it’s freaking real, by real people with the assets
in their control.
Not, fake wash trading on the exchange, by bots controlled by the exchange, and where
you gotta trust that exchange, with keeping your assets safe.
Which exchange, after exchange, after exchange….has proved they are no good at that.
So, let’s visualize the fear of the centralized exchanges.
Back in January of 2019 when volume with just 40 million for DEXs, that was just .11 percent
of the centralized exchange volume.
The over 1.5 billion done last month...that was 2.1 percent of the total centralized exchange
volume.
That trend line, growth of dex volume vs centralized...it’s a steady one up, and in my opinion, will only
increase in the future.
So, let’s just use the most popular swapping protocol, as an example.
Uniswap, this entire month of July is doing over 20 million in 24 hour volume, with the
past 4 days being between 50 to 60 million, 24 hours.
Now, we are not going to compare that volume with any of the centralized exchanges, who
are 100 percent know to do fake wash trading, and all that baloney with Tether, let’s
compare it with an exchange, a big one, who has real volume, like Coinbase.
Yesterday, Coinbase’s real trading volume was about 232 million, and Uniswap’s was
60 million.
That is over 25 percent of their volume...and that is worrisome for Coinbase, as they have
100s of employees and a ton more overhead to produce that 232 million.
Uniswap, has maybe 8 or 9 distributed employees, and basically no overhead.
And that is exactly why Coinabase decided to “invest” in Uniswap, In early April
Coinbase put out this blog post, “Coinbase USDC Bootstrap Fund invests in Uniswap and
PoolTogether” and from the post ‘In a little over a year, Uniswap has grown from
$0 to $31MM well now, 60 million... of liquidity, and now has exchanges (also known as “pools”)
for well over 880 tokens.
The USDC Bootstrap Fund has provided $1MM of liquidity to the USDC/ETH pool.
So, do you get it?
Uniswap is a protocol...the only way to invest as of right now, is to provide liquidity...which
even Coinbase is doing “pumping up their competitor” and already bending the knee…
Because they tried to get in the DEX space, in 2018, thee Brian Armstrong announced they
acquired Paradex and the post said “We’re thrilled to announce the acquisition of Paradex,
a relay platform that will allow our customers to trade hundreds of tokens directly from
their wallets.
After making some product enhancements, we’ll initially offer this experience to customers
outside the U.S., and eventually to U.S.-customers.
Well I wonder what Paradex is going today, the volume?
Zilch, nada, zero----NONE!
It was a failure, a massive one.
And this failure, of trying to get into the DEX world as a centralzied exchange, isn’t
limited to Coinbase...but the Tether addicted shatcoin casino, Binance too.
The Binance DEX, much hype, such failure….checking out it’s 24 hour volume chart, it has been
under 1 million for most of the month, and just recently is barely getting over the 1
million dollar mark.
So Uniswap, is doing 60 million, Binance DEX is doing 1.3 million, that is just 2.1 percent
of Uniswaps volume.
The Binance DEX, is a failure.
Why?
They didn’t bend the knee to Ethereum, and tried to make their own chain, and token standards...which
is a really, really bad idea.
You better integrate with Ethereum...or get ready to be left behind.
Because all the developers are building with Ethereum, a recent report by Lead Block Pa
partners found that Ethereum is #1, for enterprise development controlling 27 percent share,
they control enterprise...and then in the dapp space, look at that control….outlier
ventures just last month showed ethereum has nearly 80 percent of total smart contracts
built on it, and over 82 percent of the dapps built on it.
No other platform comes close.
But, from that Outlier ventures report, we need to look at something….the change in
active developers...the worst was EOS, then Bitcoin Cash, then Tron, and Cardano...but
look at the best, who gained the most active DEVS in quarter 2 of this year….Polkadot,
with the number absolutely surging since January of this year.
I wonder why?
Because they are not trying to leave Ethereum behind, but compliment the platform, and helping
it scale...the smarter choice, in my opinion.
And this leads me into an opportunity I see which connects this entire video together...going
to the Ethereum gas station, we can see the fees are getting ridididiculous...between
45 and 43 cents….which got daddy Vitalik even tweeting about it…”Transaction fee
revenue is now nearing half as high as block reward revenue.
This actually risks making ethereum *less* secure because of and he post a link to a
study…
Now going back to the gas station, look who is the number 3 culprit of transactions on
Ethereum….UNISWAP with their users paying over 772 thousand dollars to use it.
Now wouldn’t it be nice...if there was a Uniswap, which had lower fees, all the assets
on it, erc20 and the like, plus assets from other chains, and worked flawlessly like Uniswap?
Well it’s coming with Polkaswap, which I covered recently and is why, the token and
network behind it, the Sora network, is one of my top recent picks.
And the players behind this put out a nice medium post, just 5 days ago explaining it
better than I can...let’s see what they said “the Headline...DeFi is eating CeFi….
And then a section on Polkaswap vs Ethereum based DEXs like Uniswap...in it they say
Polkaswap has the capability to go beyond the limits of current Ethereum DEX’s with
the opportunity to add tokens from the Polkadot ecosystem as well as from other blockchains
to the exchange.
In doing so, the traded pairs on Polkaswap are not limited to ERC20 tokens like other
DEXs, but can be any blockchain that can be connected to Polkadot like Bitcoin.
They explain it will have lower gas fees, because the core Sora blockchain infrastructure
uses Hyperledger Iroha v2 which is more scalable than Ethereum plus the overall Polkadot architecture
allows virtually limitless composability between blockchains, so the economies of scale for
transactions volumes can lead to lower costs on the more modern and scalable architecture.
And finally they explain, on time transactions, which will confirm in seconds which gives
you that Centralized performance, without being centralized.
So many people ask...how with this look?
What is the Soranetwork and how does their XOR token fit in?
Well this design of it, shows it pretty well, which consists of their hyperledger Iohra,
which has the DEX in it aka polkaswap, any other dapps and the bridgechain..the sora
network, encompasses all of this, plus some including the substrate bridge parachain,
and the sora polkadot wallet.
Now I said any other dapps, well in the medium article in the Sora section explainer they
say this “Besides Polkaswap, one of the main applications running on the Sora Network
is the Sora decentralized economic system itself.
Which going to their website, they have a live functioning application for this the
Sora App…
And you can kind of think of this, as a decentralized incubator for startups...within the app, startups
and entrepreneurs pitch ideas and projects to the Sora ecosystem users, Those community
users then decide on how to allocate newly created XOR tokens by voting on projects that
are featured within the Sora App.
When you vote for a project, you're voting to allocate XOR for the project And if the
project you voted for passes, you also get some of the allocated XOR as a reward.
On their website we can see, they have funded 9 projects in total, not blockchain...they
wan’t to fund real world goods and services, from Chester’s Cherries, to hotels, to a
winemaker in LA and even Monea a european payments system
So, when you begin to realize that Polkaswap, is just one piece of the XOR ecosystem, which
is blossoming, and is powered by the XOR token, you see the opportunity.
Cheers viewers I’ll see you next time!