Don't you hate it when your most unfavored centralized exchange decides to start charging for withdrawals? It's passing the gas onto it's customer base. Not literally, but nevertheless, Twitter users 'Pee-Yewed' as if Coinbase had gone rotten.
Perhaps they have.
As I browsed through the hundreds of comments, most joined the chorus of anger directed at Coinbase. F-bombs were inbound while I scrolled. Some suggested that Coinbase could even be in league with Uniswap!
https://twitter.com/coinbase/status/1306730666818760704?s=19
- coinbase
Well, lo and behold, all it took was a click over to the Coinbase blog. I scrolled down perusing the text and there it was at the bottom. Coinbase is a major investor in Universal Navigation, Inc. UNI! Read it for yourself:
Coinbase holds UNI tokens and an equity interest in Universal Navigation Inc. (the company developing the Uniswap platform). Coinbase intends to maintain its investment in UNI for the foreseeable future and maintains internal policies that address the timing of permissible disposition of its digital assets, including UNI tokens.
~ From the Coinbase blog
Deciding not to bring that fact up in the comments seemed like the best course of action. I didn't want to throw fuel on an already blazing fire of anger.
Instead, I headed over to Coinbase and diversified some of my Hodlings. Guess what my new addition is? Heyea! It's UNI for the win!
Not On A Whim
Nooooo. My diversification of crypto into a new and volatile Hodling was based on an educated guess. You see, yield farmers aren't stupid. They understand the 180 day clause before voting ensues with this new governance token.
In 6 months time, UNI hodlers will have a vote whether or not to take dividends. More crypto will flow into UNI hodlers hands if they vote it so. And why wouldn't they?
Taking advantage of the fact that Coinbase doesn't charge fees for internal exchanges, I moved several assets into UNI.
Eventually gas prices should drop to more reasonable rates and I'll move my assets completely away from Coinbase. It's going to be time to move to Metamask and a Hardware Wallet.
It ain't a ton of crypto and time will tell if my speculation pays off.
One thing I also considered is that there are other DEX protocols that have governance tokens. UNI isn't the first. How are their values holding up?
First, I looked at Sushiswap on CoinMarketCap. Of course, it's lost a lot of value due to the Chef Nomi incident. I realized it wasn't a good comparison.
Balancer seemed like it could be a better indicator of what could happen with UNI. BAL shows some healthy growth in value, indeed!
What other DEX protocols offer a governance token? How about Synthetix (SNX)?
Those are more modest gains, but still show a good upward trend. Now take a look at yEarn (YFI). It blew my socks off!
Over 32,000 dollars per YFI? That's almost three times the value of BTC!!! yEarn may be one of those rare projects seeing tremendous growth, but who's to say Uniswap won't explode as well?
All I can say is....this Defi-nitely isn't financial advice!
Thanks for reading and as always...
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