What Occurred: Decentralized cryptocurrency lending platform Aave (CRYPTO: AAVE) would possibly think about constructing a model of social media platform Twitter on the Ethereum (CRYPTO: ETH) blockchain.
Over the weekend, Aave’s founder Stani Kulechov mentioned 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 think about 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 hassle to construct it.
Why It Issues: Though it’s unclear whether or not Kulechov’s intentions are totally 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 completely different cryptocurrencies.
The DeFi platform has gained a robust supporter in billionaire investor Mark Cuban, who talked in regards to the mission extensively on his blog and appeared to have a sizeable quantity of AAVE tokens in his portfolio.
AAVE appears like a financial institution, but it surely’s not mentioned Cuban in a weblog put up earlier this 12 months.
“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 varieties to fill out, no credit score rankings concerned. The whole lot is managed by good contracts. It’s totally automated,” he mentioned.
“Automated Monetary Market Makers are a lot extra capital and operationally environment friendly than related conventional firms. Banks ought to be scared.”
Worth 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 Might.