The lido risk for Ethereum is growing because the SEC aims at stock exchange discount services
The lido risk for Ethereum is growing because the SEC aims at stock exchange discount services
The US stock exchange supervision Securities and Exchange Commission is convinced that all crypto-assets are securities except Bitcoin. His recent war against crypto exchanges also included arrest services that the regulatory authority wants to close.
This could lead to more stuck ETH displaced by the stock exchanges on the market -leading provider of liquid lights, lido. That may sound good, however, carries considerable risks for the Ethereum ecosystem.
Risks of lido plugs uncovered
lido offers liquid pilot services for Ethereum as an alternative to self -disc corners, which is very technical and encompasses stock exchanges that require considerable commissions.
with 7.18 million ETH or 36 % of the 19.6 million ETH used, it quickly developed into the market leader.
On June 13th, Ethereum advocates at "Bankless" at the Lido alarm. Appeal to prevent its dominance in the ETH-Use.
A continued hard approach of the SEC against stock exchanges should lead to more Ethereum being pledged to Lido, it said. According to the lawsuit of the regulatory authority, last week there was already an increase in the return of Coinbase used.
Kraken was forced to stop his Ethereum plug-in services for US users, which led to an exodus as soon as Shapella was introduced.
In addition, the market share of Lido has grown since the Shapella upgrade enables withdrawals of operations.
Ethereum developers like Danny Ryan have warned about the dangers of "cartel education", In the platforms such as Lido compared to non -pooled capital, oversized profits can achieve.
Bankless reported that the platform was around a third of all pledged ETH near the first threshold.
"Lido approaches the first of three threshold values, from which Ethereum can be manipulated more easily by an attacker."
It added that Lido had already voted against self -limiting deposits, but supporters from Ethereum are now demanding that they are doing this.
"It is unlikely that Ethereum will introduce such controls at the protocol level, but it is clear that Lido has to expect economic effects," noted Bankless.
There is a growing movement to separate from Lido and to check alternative options for the use of Ethereum.
"Etherians have to join together and reduce our dependence on Lido to prevent staking from dominating it!"
ETH price view
The deposits of Ethereum deposits still exceed the withdrawals, but the assets have suffered a break-in after the regulatory attacks on the industry last week.
According to Coingecko, ETH unchanged at $ 1,745 at the time of writing. The asset has lost more than 8 % since the SEC sued Binance and Coinbase last week, more than its big brother Bitcoin.
In addition, it looks increasingly pessimistic because it fell on the lower limit of its three -month tension canal.
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