Even though crypto traders and investors are now primarily paying attention to macroeconomic factors, there are still many interesting things happening in the cryptocurrency and blockchain space. Let’s take a look at 3 projects that will be worth seeing in the next few days.
3. Uniswap (UNI)
Uniswap is a decentralized finance (DeFi) protocol that allows users to swap between different tokens without custody. Uniswap popularized the AMM (Automated Market Maker) design, which performs token swaps across liquidity pools where users deposit cryptocurrencies. Transaction fees charged by liquidity pools are distributed to liquidity providers.
AMMs like Uniswap use the constant product formula, which determines the price of tokens in a given liquidity pool. For example, if a pool consists of ETH and USDC, the total ETH in the pool equals the total USDC in the pool. When a user swaps their ETH to get USDC from the pool, the price of ETH goes down because the pool now has more ETH and less USDC.
Uniswap has a governance token called UNI that is used to vote on governance proposals. The token was launched in 2020 through an airdrop that distributed tokens to previous users of the Uniswap protocol.
Why Uniswap? Uniswap Labs achieves a valuation of $1.66 billion in the funding round
Uniswap Labs, the company spearheading the development of Uniswap and its most popular front-end interface, has raised $165 million in a Series B round that values the company at $1.66 billion.
While the UNI token is a governance token for the Uniswap protocol and is not technically related to Uniswap Labs, the fact that investors were willing to pour $165 million into the company in the midst of a deep bear market certainly inspires some confidence into the future of the Uniswap protocol.
The funding will allow Uniswap to expand and improve key infrastructure related to Uniswap, such as: B. Web and mobile applications to access the protocol and tools for developers. The company also plans to introduce NFT functionality.
2. BNB (BNB)
BNB is a token launched by cryptocurrency exchange Binance in 2017. BNB serves two main functions. Token holders will gain access to special benefits when using Binance – these include lower trading fees, access to the exchange’s Launchpad and Launchpool programs, cashback on Binance Visa card purchases, and more.
The token will also be used as a native asset of the BNB Chain blockchain. BNB Chain is a variant of Ethereum that offers users significantly lower transaction fees and allows developers to easily deploy EVM-compatible decentralized applications. Formerly known as Binance Coin, BNB has now undergone a major rebrand.
Why BNB? The 21st BNB brand comes after a major exploit
On October 6, an attacker exploited a vulnerability in the bridge used to transfer tokens between BNB Beacon Chain and BNB Chain. Through the exploit, the attacker essentially managed to trick the system into issuing 2 million new BNB tokens, which were sent to addresses under the attacker’s control. The BNB chain ecosystem was temporarily halted while developers worked on a software update to fix the vulnerability.
Ultimately, the attackers got away with about $100 million worth of crypto by transferring funds to other blockchains. If all the exploited funds had been transferred, the damage would have been around $570 million.
For better or worse, the attack has drawn increased attention to BNB, which sits quite comfortably as the fifth largest crypto asset by market cap. At the time of writing, BNB is posting a similar 7-day change for both Bitcoin and Ethereum, which is impressive given the context of the exploit.
On October 13, the 21st Quarterly BNB Burn eliminated 2.065 million BNB ($574 million at the time of the burn). This amount effectively reflects the amount of BNB minted by the attacker through the exploit.
1. Huobi Token (HT)
Huobi Token is the exchange token issued by Huobi, one of the largest exchanges in the cryptocurrency industry. HT is based on the Ethereum blockchain and its supply is capped at 500 million tokens.
As an exchange token, holding HT offers numerous benefits for users of the Huobi exchange. Examples of these benefits include fee discounts, rebates, token rewards, and the ability to vote on token listings and participate in Initial Exchange Offerings (IEOs). Huobi uses part of its earnings to buy and burn HT, reducing the supply of the token over time.
HT is also used as a native asset of blockchain platform HECO Chain, where it is required for payment of transaction fees. Users can also pledge their HT tokens to operate validator nodes and earn a portion of transaction fees collected by the network.
Why Huobi Token? The sale of his stake by Huobi’s founder sparked a rally in HT markets
Huobi founder Leon Li recently sold his stake in the company to About Capital, an investment firm based in Hong Kong. Leon Li reportedly owned a 60% stake in Huobi.
About Capital says they plan to launch international brand promotion and business expansion initiatives to improve Huobi’s status in the crypto markets. After acquiring the majority stake in Huobi, Huobi will also have a new Strategic Advisory Board. One of the members of the Advisory Board is TRON Founder Justin Sun, who said on his Twitter account that there are plans for “big steps” related to HT and that HT is the most important area to focus on in order to achieve this to revitalize Huobi’s business.
Markets have reacted very positively to the acquisition and Justin Sun’s statements as HT has surged from around $4.10 on Oct. 10th to a high of $8.11 on Oct. 14th. At the time of writing, HT reports a +86.8% 7-day change from the US Dollar, slightly outperforming all other assets in the top 100 cryptocurrencies.
In the coming days it will be interesting to see if HT can build on the momentum and continue to outperform the market or if the rally fizzles out.
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