3 DeFi Cryptocurrencies to Sell to Avoid Cyber ​​Chaos

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DeFi is currently taking a hit, even without the cryptocurrency crash that sent asset prices soaring earlier this year. Hacking in the crypto world continues to increase, exposing projects that have slowly hardened their defenses. But even more damaging to the market this week is the crackdown by the US government. Sanctions, arrests and the possibility of some restrictive policies have investors wondering which DeFi cryptocurrencies to sell.

Currently, the US is largely holding back crypto projects. Almost all parts of government are diving into DeFi; the US Securities and Exchange Commission (SEC) launches investigations, the Department of Justice (DOJ) makes arrests, and the Treasury Department makes sanctions. Meanwhile, investors continue to see projects hacked or users scammed. just today Curve Finance (CRV-USD) was hacked for over $570,000 in funds. Blur Finance (BLR-USD) still hit investors today, as it turned out to be a carpet pulling scam.

Still, the best DeFi cryptocurrencies for sale are those that have come under the worst recent government scrutiny. Investors should consider these three cryptocurrencies when considering lightening their portfolios:

DeFi Cryptocurrencies for Sale: MakerDAO

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Crypto MakerDAO, MKR, could be worth eliminating from your portfolio, as the project’s developers are worried about a worrying future. Right now, there is concern about recent US Treasury sanctions; developers worry that sanctions could bring down the entire network.

Specifically, the recent Treasury sanction against Tornado Cash this is a concern. Government reprimands crypto-mixing service for its use in crypto-money laundering. Because of the sanctions, US residents are now banned from using the service. Dozens of crypto wallet addresses are also blacklisted.

Why are developers worried? Well, the sanctions also dealt unexpected blows Circle and his USD coin (USDC-USD) stable coin. This froze about $81,000 in USDC at those blacklisted addresses, making it essentially unusable. MakerDAO could face similar consequences as the stablecoin protocol itself.

If push comes to shove, the Treasury Department may pursue sanctions against crypto-mixing and anonymity-related stablecoins. This would directly affect MakerDAO. Founder Rune Christensen says sanctions could kill the project completely. As a result, developers are putting together an emergency shutdown plan if sanctions reach the project.

Aave

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DeFi lender Aave isn’t worried about sanctions. But the project has been caught up in the cryptocurrency meltdown, largely because of its lending practices. Aave may be disproportionately affected as lawmakers craft crypto policy and take the crash into account.

When the cryptocurrency crash began in mid-May, things unraveled similar to the 2008 housing crisis. Similar to mortgage borrowers at the time, crypto hedge funds and other investment companies took out heavily overburdened loans from platforms like Aave. When the market bubble burst and prices began to fall, the crash catapulted these companies into massive debt. At least three major investment firms declared bankruptcy because of these loans. Two were especially indebted to Aave.

After the 2008 crisis, the gravy train of mortgage lenders ended. We can expect the same from Aava and other DeFi platforms. But more frighteningly, Congress and other branches of government are hungry for crypto market regulations.

It can be said with relative certainty that lawmakers will rely heavily on their understanding of the cryptocurrency crash when crafting these policies. This may cause some limitations in the operation of Aava and other platforms. Since Aave is one of the biggest platforms, it could even carry the biggest damage.

DeFi Cryptocurrencies for Sale: Amp

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Amp is one of the best DeFi cryptocurrencies to sell right now, simply because it has been treated poorly. Sanctions will not significantly affect the token. Nor is Amp likely to inspire notable crypto politics. Instead, Amp is caught in the middle of another regulatory battle.

Amp’s troubles only started a few weeks ago when the SEC and DOJ arrested the trio accused the first crypto trading scheme based on insider information. The scheme involved the former Coinbase (NASDAQ:COIN) employee and two others. In its complaint, the SEC cited nine cryptocurrencies involved in the scheme securities instead of currencies. AMP is one of those cryptocurrencies.

The backlash from that little comment could have devastating effects on the project, prompting the SEC to launch some kind of legal action against Amp for selling an “unregistered security.” This is even leading other exchanges to take action; Binance (BNB-USD) immediately delisted from AMP according to the news, citing an extreme caution. Other exchanges may also delist it in the future, resulting in a bearish attitude towards the token.