UNI Token Rises 20% as China’s Blanket Ban on Crypto Businesses Puts Focus on Decentralized Exchanges Investors get some distance from unified exchanges in the wake of China’s sweeping ban on virtual cash businesses. Uniswap, which uses a unicorn in its logo, is one of DeFi’s top applications.
Cryptocurrency investors seem to be wagering that China’s latest cover ban on virtual cash businesses will be a blessing in disguise for decentralized exchanges (DEX) working with direct peer-to-peer transactions without a middle person.
That is obvious from the end of the week’s market activity. Latest information shows local tokens of major decentralized exchanges like Uniswap and SushiSwap have acquired 22% and 18%, respectively, in the past 24 hours, driving bitcoin higher by a significant margin, while incorporated exchanges’ tokens are flashing red.
The extraordinary revolution into everything decentralized is upon us and all thanks to the latest and without a doubt most aggressive crypto ban by China, Denis Vinokourov, head of research at Synergia Capital stated.
On Friday, the People’s Bank of China (PBOC) proclaimed all virtual money related activities illicit, banning offshore exchanges from serving central area Chinese users. The statement also disqualified tether, the largest stablecoin globally, as legitimate delicate alongside bitcoin and ether, checking toughest crackdown to date.
Huobi has as of now found ways to conform to new regulations, suspending new user signups from China. Purportedly Binance has made similar moves.
Huobi said early today that it would steadily close accounts of existing China-based users before the year’s over. The Huobi token has dropped 17% in the past 24 hours to exchange close $7.43. The cryptocurrency hit eight-month lows close $6 a couple of hours prior.
While UNI is driving the market higher, the token is still stuck in a four-week falling channel. A breakout may bring stronger chart-driven buying pressure.
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