One of the downsides to the decentralized nature of the cryptocurrency space is the number of scams. Any new technology will have charlatans and snake-oil salesmen selling projects that are doomed to fail. In blockchain, these are people who make wild promises in Telegram rooms, yet cannot back up any of their claims. Even worse are blockchain project leaders who sell their founders tokens early, dumping the price for their followers. We have seen this happen so often that the term “rug pull” has been coined to describe it. Thankfully, Geeq is actively working to prevent these rug pulls from happening in the future. The recent partnership between GEEQ and TrustSwap is the next step in creating a more open blockchain ecosystem.
Trustswap is an Ethereum DEX that allows users to exchange one crypto for another without an intermediary. Users have become familiar with this due to the popularity of the Uniswap exchange. But in addition to swapping tokens, Trustswap has several current, and planned, innovations that set it apart.
- Time locked token contracts
- Wrapping tokens as a service
- Cryptocurrency subscriptions
Timelocks are perhaps the more critical function available to combat the aforementioned rug pulling. They function similarly to vesting shares of stocks, in that they are only available to sell after a certain amount of time has passed. Preventing founders from selling their tokens early helps give investors the confidence that the creators are in it for the “long haul” and are not looking for a quick buck. These rug pulls have become most popular with food-based DeFi projects where the lack of liquidity can cause a token to go down 90% or more in a single trade.
The time lock function on TrustSwap is also capable of sending out automatic payments on a schedule. This “payroll on the blockchain” function can pay employees, issue ICO tokens, or reward specific followers or community members. Parents could even automate allowance payments for their child.
While not a new idea, timelocks have previously required users to dig through the ethereum contract code to see if anything prevents tokens from being sold too soon.
GEEQ and Proof Of Honesty
TrustSwap’s token swapping will be expanding beyond Ethererum, making its way to the GEEQ blockchain. This will allow TrustSwap to exchange any tokens in the GEEQ ecosystem, including blockchains built off of it. In short, this will allow corporate GEEQ dApps to swap tokens and interact seamlessly.
Our previous article on GEEQ explored how its Proof of Honesty (PoF) creates a new level of transparency for blockchain projects. The partnership with GEEQ and TrustSwap makes sense, more so if the crypto bull market decides to remain in its bullish trend. Crypto investors should be more likely to invest in a project whose founders cannot dump their tokens overnight. Of course, cryptos will experience large price swings due to their speculative nature. Even stablecoins fluctuate during times of high volatility. But the sooner we can limit scams and rugpulls, the sooner the mainstream world will take crypto seriously.
*Disclaimer – GEEQ is our Media Partner, and therefore this content is sponsored by them. The above article does not represent financial, investment or trading advice and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.