DeFi
Here’s What Happened in the Cryptocurrency Industry Today — TradingView News
The Enterprise Ethereum Alliance has released a paper aimed at mitigating the risks associated with DeFi protocols. CryptoQuant CEO Ki Young Ju says sell-off fears associated with Mt. Gox are still “overstated.” Meanwhile, a16z co-founders Marc Andreessen and Ben Horowitz have reportedly thrown their support behind presidential candidate Donald Trump.
New Risk Assessment Guidelines for DeFi Protocols Unveiled
The Enterprise Ethereum Alliance (EEA) has launched version 1 of its Decentralized Finance (DeFi) Risk Assessment Guidelines, a document aimed at identifying and mitigating DeFi protocol risks.
The EEA DRAMA Working Group developed the guidelines in collaboration with organizations such as Consensys, Hacken, CertiK, Quantstamp, OpenZeppelin, Banco Santander, Bitwave and others.
The document serves as a resource for regulators, developers, investors, and DeFi protocol users to identify risks and provide strategies to manage them.
Dyma Budorin, co-chair of EEA DRAMA and CEO of Hacken, explained that the guidelines provide a comprehensive standard that “resource founders and development teams can rely on when working on their products.”
The DeFi Risk Assessment Guidelines cover a range of risks related to governance, tokenomics, software, liquidity, regulatory compliance, and external market factors.
Speaking to Cointelegraph, Chaals Nevile, director of technical programs at the EEA, explained that “the working group proposes to maintain the guidelines, issuing periodic updates as needed.”
“This measure is specifically aimed at responding to new threats and technological changes, but also to address the fact that the regulatory and normative landscape continues to evolve.”
The attack on the Li.Fi protocol on July 16 is an example of the need for a DeFi risk assessment and the preventative measures that can be taken in the space.
Bitcoin Whales Poised to Accumulate More Amid Mt. Gox ‘Overvaluation’
The impact of Mt. Gox refunds on Bitcoin is overstated and will likely be used by whales to scoop up more BTC at a discount, says CryptoQuant CEO Ki Young Ju.
In a July 16 post on X, Ki said that the impact of Mt. Gox’s sales — between $3 billion and $9 billion in BTC — is negligible compared to the total increase in Bitcoin’s market cap over the past 18 months.Cointelegraph
“Even if Mt. Gox’s $3 billion is sold on Kraken, that’s only 1% of the capitalization increase realized in this bull cycle – manageable liquidity,” Ju wrote.
Additionally, Ki noted that Bitcoin’s price was more vulnerable to speculative “FUD” (fear, uncertainty, and doubt) around perceived negative events and less to the fundamental selling activity underlying them.
Ju said that while many investors were “panicking,” “smart investors” would continually buy more Bitcoin.
A16Z Co-Founders Support Trump After He’s Nominated for Vice President
Marc Andreessen and Ben Horowitz, the co-founders of crypto venture capital firm a16z, have reportedly thrown their support – and financial resources – behind Donald Trump.
Venture capitalists are reportedly planning to make major donations to the Republican ticket after Trump picks J.D. Vance as his running mate. Andreessen and Horowitz are reportedly among the venture capitalists and tech executives who have pledged to donate to the pro-Trump America PAC. So far, America PAC has raised nearly $9 million from Silicon Valley insiders. 
According to industry advocacy group Stand With Crypto, Vance is a “strong supporter of crypto.” The Republican senator from Ohio is believed to own up to $250,000 in bitcoin.
Additional reporting by Felix Ng, Sam Bourgi and Geraint Price.