Blockquote Also, crypto will need to be regulated if it’s to gain legitimacy and if people in the space actually want it to grow. If you’ve been burned by Terra, Celsius, FTX, why in the world would you want anything to do with DeFi?
completely agree, nevertheless one thing is DeFI and other fractional banking… taking ownership of coins to inflate valuation and raised capital .
there are many things to fix to avoid market manipulation from AMM or exchanges: “When a market maker and an exchange are owned by the same entity, it raises concerns that the market maker could see other investors’ trades before they are executed, allowing them to trade ahead of them at a profit.” Before his epic fall… there are some regulations but also development to avoid this.
To gain that support, a contract reviewed by NBC News shows, NuGenesis agreed to loan Alameda 200 million NuCoins for two years. At the end of the period, Alameda would either return the coins to NuGenesis or buy them from it at 38 cents each.
Faraj expected that Alameda would support the price of NuCoin in a narrow band, as its agreement with Alameda had stated. Instead, Faraj said, over a short period, Alameda dumped huge numbers of the coins onto the market at a depressed price. At the same time, Faraj said, when he tried to buy NuCoin to counter the selling pressure, Alameda prevented NuGenesis from doing so, effectively destroying confidence in the project. “With his exchanges, he prevented genuine buyers—including ourselves—from restoring the price,” Faraj said of Bankman-Fried. Faraj said Alameda later confirmed to NuGenesis that it had dumped 800,000 NuCoins on the market.
the only point here is to bring this topic into the business case for fintech and defi in the moralis academy. there is lot to learn from this; QE, greedy market makers and manipulation
