A new phase is beginning, and many are surprised at how quickly it has come about. Decentralized exchanges aren’t a new concept, but they have never been at the forefront of crypto.
However, in just a matter of months the decentralized exchange (DEX) ecosystem has exploded, largely thanks to Uniswap and the attention that has been getting. Perhaps DEXs were just doing it wrong.
Regardless, what’s really brought the interest to Uniswap, and other decentralized exchanges since, is the ability to list any token you want yourself, and the ability to provide liquidity to the pool. Using the interface is super easy, you just pick what you want to pay with and what you want to receive. It’s just a simple swap. No complex charts or order books.
DEXs have provided freedom to projects. No more extortionate listing fees or lengthy due diligence processes. It’s also great for long term holders. They can add liquidity to the pools on Uniswap or other similar DEX swaps and earn trading fees, which increases their overall crypto balance.
VID – problems with centralization
Value Income (VI) is the crypto created by VID. It’s designed to distribute value to anyone and everyone based on the value they already provide to the businesses they use. The idea is to reward users for the value they are already providing to businesses. This concept hopes to change the way value is distributed by using the cumulative power of a group.
The VID team has been having difficulty with their token recently. The token price has dropped from $0.94 to $0.16. After working with numerous analysts and the Kucoin team, they have concluded that this price drop has been the result of blatant market manipulation.
As you can imagine, the team isn’t happy about this. Their goal is to distribute fair value to people all across the world. Meanwhile, their token isn’t being fairly valued because they have found that it’s being manipulated by malicious traders.
Here’s a direct quote from Jag Singh, VID’s CEO:
To be clear, we have no issue with a low token price, as long as it represents the fair market value.
We will however not allow our token holders to be manipulated into selling. Our analysts have been tracking certain orders and price manipulation bots; there is no doubt the VI price has been deliberately manipulated downwards (many of you have noticed this too).
Taking a stand
The VID team has taken the executive decision to fight back against the manipulators and do something that has never been done before – a voluntary delisting from all centralized exchanges. Alongside this will come a token swap and a token listing on Uniswap. By doing so, they believe that the market manipulators will become powerless, thus allowing the market to find a fair market price for VI tokens.
You can’t maliciously trade on Uniswap like you can on a centralized exchange. Furthermore, all trades are completely transparent. The ETH addresses are publicly viewable to everyone.
Even better: VI holders will be able to earn trading fees by becoming liquidity providers, so they can add to their VI stack by holding and supporting the project. On top of this, 50% of the VI being released per day will be allocated to VI Liquidity providers on Uniswap, so being a VI liquidity provider will be a great way to earn VI.
The token swap is required because MXC aren’t allowing the VID team to delist the token, or even withdraw the tokens they have stored on MXC. In contrast, KuCoin has supported the decision and will happily list VI again in the future if the market climate permits. The swap will allow VID to switch to being only listed on decentralized exchanges.
If you’re a VI holder and you need to do the token swap, all the details you need are in this blog post. Just know that the process has been as easy as possible, and if your tokens are stored in the app then they will be automatically swapped.
The VI team believes this is the best way to stop the market manipulators and support their users – and they are probably right. Moving onto a DEX should prevent these manipulators with small balances, since the way swap DEXs work makes this unfeasable.
Taking a unique stance and removing themselves all together from centralized exchanges is very interesting and bold. However, the VID team has shown that they aren’t afraid to be bold and do what they think is right for their community. It’s paid off in the past.
*This article has been sponsored. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space. 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.