What Occurred: Decentralized cryptocurrency lending platform Aave (CRYPTO: AAVE) may take into account constructing a model of social media platform Twitter on the Ethereum (CRYPTO: ETH) blockchain.
Over the weekend, Aave’s founder Stani Kulechov stated in a tweet that since Sq. Inc (NASDAQ:SQ) and Twitter (NASDAQ:TWTR) CEO Jack Dorsey announced plans to construct a brand new fintech, with obtrusive similarities to Aave, on the Bitcoin (CRYPTO: BTC) blockchain, Aave ought to take into account constructing a Twitter on Ethereum.
Since @jack goes to construct Aave on Bitcoin, Aave ought to construct Twitter on Ethereum
— stani.eth rAAVE 👻 =(⬤_⬤)= 👻 🦇🔊 (@StaniKulechov) July 17, 2021
Kulechov added that his co-founder Jordan Lazaro Gustave would lead the trouble to construct it.
Why It Issues: Though it’s unclear whether or not Kulechov’s intentions are completely severe, his feedback seem to have stemmed from the truth that Dorsey’s proposed monetary providers firm resembles Aave’s functionalities.
Aave is decentralized finance (DeFi) platform that permits customers to borrow and lend in over 20 totally different cryptocurrencies.
The DeFi platform has gained a robust supporter in billionaire investor Mark Cuban, who talked in regards to the undertaking extensively on his blog and appeared to have a sizeable quantity of AAVE tokens in his portfolio.
AAVE seems like a financial institution, however it’s not stated Cuban in a weblog put up earlier this yr.
“Aave is a totally automated, permissionless platform the place there are not any bankers, no buildings, no toasters, no vaults, no money, no holding your cash, no types to fill out, no credit score rankings concerned. All the things is managed by sensible contracts. It’s totally automated,” he stated.
“Automated Monetary Market Makers are a lot extra capital and operationally environment friendly than related conventional firms. Banks must be scared.”
Value Motion: AAVE was buying and selling at $234 at press time, down 10.49% over the previous 24-hours.
The crypto token has misplaced 64% of its worth since its all-time excessive forward of $666 in Could.