{"id":353621,"date":"2021-10-16T10:11:00","date_gmt":"2021-10-16T07:11:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-responsibility-behind-a-crypto-lenders-asset-listing\/"},"modified":"2021-10-16T10:11:00","modified_gmt":"2021-10-16T07:11:00","slug":"the-responsibility-behind-a-crypto-lenders-asset-listing","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-responsibility-behind-a-crypto-lenders-asset-listing\/","title":{"rendered":"# The responsibility behind a crypto lender\u2019s asset listing"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2966c7ed318\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2966c7ed318\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-responsibility-behind-a-crypto-lenders-asset-listing\/#Demand_vs_approval_The_question_of_endorsement\" >Demand vs. approval: The question of endorsement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/the-responsibility-behind-a-crypto-lenders-asset-listing\/#If_not_an_endorsement_then_what\" >If not an endorsement, then what?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/the-responsibility-behind-a-crypto-lenders-asset-listing\/#Listings_and_the_Insert_company_name_effect\" >Listings and the [Insert company name] effect<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/the-responsibility-behind-a-crypto-lenders-asset-listing\/#The_technical_side_of_listing_assets\" >The technical side of listing assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/the-responsibility-behind-a-crypto-lenders-asset-listing\/#The_way_forward_Social_duties_%3E_Legal_obligations\" >The way forward: Social duties &gt; Legal obligations<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># The responsibility behind a crypto lender\u2019s asset listing <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTAvOTMwNTVjMTgtM2NiYS00N2MwLTlmMGEtNTIyOTE1ZDVmYjBkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>Crypto lenders are the institutions situated between consumers and the untamed, blockchain-based, and often unregulated space of cryptocurrencies. As such, they are in a peculiar position when it comes to <em>responsibility<\/em> towards their customers and the assets for which they provide services. Consequently, when choosing which currencies to support, lenders lead a delicate dance of responsibility, a balancing act between catering to popular demand and adding cryptocurrencies that are sustainable, worthwhile and safe.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Demand_vs_approval_The_question_of_endorsement\"><\/span>Demand vs. approval: The question of endorsement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s unsurprising that in a nascent industry full of new investors, a lender\u2019s asset integration is often taken for endorsement. What tends to be overlooked when companies add new assets to their range of services is that crypto lending is, in fact, a business, and any asset integration is ultimately a response to demand \u2014 a good market opportunity that generates gains for business and clients, alike. Perhaps this is due to lenders being influential entities in a space that has historically lacked the institutional stamp of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval and looks for it through the pioneering businesses shaping the industry.<\/p>\n<p>In June 2021, Coinbase CEO Brian Armstrong <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/brian_armstrong\/status\/1409555698942238723?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1409555698942238723%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fdecrypt.co%2F74652%2Fcoinbase-rapidly-adding-new-assets-for-trading\">issued<\/a> a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of tweets concerning the exchange\u2019s rapid integration of multiple assets and its intention to keep up this pace. Armstrong wrote that \u201cone should not take being listed on Coinbase as an endorsement of that asset\u201d, denoting the fine discrepancy between working with an asset and endorsing it. Even though their operations are different from that of an exchange, the same principle applies to crypto lenders: It is not an endorsement, it\u2019s just business. And there are many ways to create client-centric and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a>ly responsible businesses.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"If_not_an_endorsement_then_what\"><\/span>If not an endorsement, then what?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Listing an asset on a lending platform may not be an endorsement but it is an indication of a certain degree of its legitimacy, stability and security. A crypto lender\u2019s operations with a given coin mean that owning it, investing with\/in it and using financial services for it is regulatorily and technically sound. Lenders have a lot to lose from working with unreliable cryptocurrencies including funds as well as their customers\u2019 trust and the future of their business; hence, they maintain high standards for an asset\u2019s technical robustness, market-wide liquidity, price stability and legality. While the due diligence of these companies cannot serve as the aforementioned stamp of approval for investors, they can be a <em>crypto wind indicator<\/em> of sorts, providing a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> indication of an asset\u2019s stability and safety without endorsing it.<\/p>\n<p>Crypto lenders have thus become the bellwether for regulatory action and it is worth noting that this intricate inter-dependence goes both ways \u2014 suspending services for cryptocurrencies immediately upon even the potential for new regulatory issues with a coin or token. This exact scenario played out on December 23, 2020, when multiple major exchanges and crypto lenders halted their XRP services in light of the U.S. Securities and Exchange Commission lawsuit of Ripple Labs. The valuable takeaway is that these institutions\u2019 immediate reactions to even the possibility of legal issues with XRP demonstrate a tendency towards full compliance, competent legal counsel, and readiness for immediate action in accordance with given circumstances. Essentially, responsible crypto companies are the industry\u2019s first reactors and can be useful to watch when navigating the space.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>SEC vs. Ripple: A predictable but undesirable development<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Listings_and_the_Insert_company_name_effect\"><\/span>Listings and the [Insert company name] effect <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although coin integrations on lending platforms do not denote endorsement, companies\u2019 actions still have a strong collateral effect on cryptocurrencies. The biggest crypto exchanges in the world both have their respective so-called \u201cCoinbase-effect\u201d and \u201cBinance-effect\u201d that cause newly-listed coins to appreciate significantly in value. On one hand, this is because they suddenly become available to a wider audience of investors but in addition, their inclusion by these exchange giants gives buyers a sense of credibility.<\/p>\n<p>A similar phenomenon was observed in 2020 when PayPal announced its plans to operate with Bitcoin (BTC): <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> spread quickly and had an overall uplifting effect on the market. This year, the predominant example was the \u201cTesla-\u201d or \u201cElon-effect\u201d which began with Tesla accepting Bitcoin as payment for its vehicles in March 2021 and then retracting this opportunity \u2014 needless to say, both actions caused a ripple in the crypto industry. A couple of months later, Elon Musk, himself, arguably triggered a market downturn that lasted nearly two months with a single tweet.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Experts answer: How does Elon Musk affect crypto space?<\/em><\/strong><\/p>\n<p>These examples of non-crypto native companies\u2019 influence on crypto prices are not even close to exhaustive and portray the sway big brands can have on the volatile crypto market. They signal a need for responsibility on part of all companies operating in the blockchain space, especially for crypto lenders who are set to become the banks of the new financial system. It is a volatile market with many smaller retail investors and new players. In the absence of regulation, the industry must self-regulate, recognizing and moderating the gravity of their listings, investments, statements and even tweets.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_technical_side_of_listing_assets\"><\/span>The technical side of listing assets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Generally speaking, there are two main approaches to adding new assets to crypto lending platforms. The first is a full blockchain integration and the second is a more internal-facing implementation. The former, enables users to deposit and withdraw assets from their wallets, giving them more overall flexibility. The trade-off is that such integrations take slightly longer, require scarce tech talent, and depend on finding appropriate and reliable third-party custodians to ensure the complete security of assets at all times.<\/p>\n<p>The alternative to full integration is an approach akin to Revolut\u2019s crypto offering wherein users may purchase cryptocurrencies and digital assets only on the lender\u2019s platform, cannot withdraw them to an external wallet and therefore don\u2019t have access to their private keys. Behind the scenes, the provider deals with the assets in their client\u2019s name, producing user-friendly exposure to crypto investments that can be implemented on the crypto lender\u2019s platform much faster than a standard integration. While Revolut has received criticism from the crypto community that prompted them to finally launch limited Bitcoin withdrawals in May 2021, this method has intrinsic value in a space as dynamic as blockchain finance and it\u2019s why lenders like ours have taken on this adoption-friendly model for assets like Polkadot (DOT), Cardano (ADA), Dogecoin (DOGE), and the latest addition of Solana (SOL).<\/p>\n<p>True to its struggle for ultimate security, the crypto community\u2019s famous mantra of \u201cnot your key\u2019s not your coins\u201d was a natural hurdle for internal integrations. Regardless, they are flourishing on Nexo with $11, $28 and $12 million in turnovers from DOT, ADA and DOGE purchases, respectively, within the first month of launching these integrations. Despite not being able to self-custody their assets, clients use them extensively. People want and need exposure to the new assets popping up regularly in the rapidly growing space. Crypto lenders simply can\u2019t keep up with this demand when using only the slower and exceedingly more resource-heavy blockchain integrations that give clients more control over assets, thus limiting exposure to many novel and well-performing coins.<\/p>\n<p>\u201cNot your keys, not your coins\u201d embodies one of the essential benefits of crypto \u2014 the chance to take custody and security of your funds into your own hands rather than having to trust an institution. But perhaps the phrase is becoming slightly reductive as crypto begins to scale swiftly. For lenders and other companies using internal asset integrations, this strategy ought to be a springboard towards full integrations, a means through which to keep up with the industry, grow their business and give their clients timely exposure to lucrative investment opportunities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_way_forward_Social_duties_%3E_Legal_obligations\"><\/span>The way forward: Social duties &gt; Legal obligations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ultimately, crypto lenders must mitigate the messages behind their asset listings, delicately weigh the words and actions behind their brands, and use different methods of integration to enhance their users\u2019 experience in the dynamic industry. In an environment lacking regulations and common standards due to its nascence, a lot of these actions depend mainly on crypto companies\u2019 social responsibility and blockchain-based corporate social responsibility (CSR).<\/p>\n<p>This can include: 1) proactively shaping regulation for crypto as we have seen industry leaders do with regards to the pending U.S. Infrastructure Bill; 2) presenting audits of reserves as Nexo has done through its real-time attest via Armanino; or 3) educating customers \u2014 through articles, ask-me-anything sessions, support groups, even metaverse worlds \u2014 about the assets they work with, the services they offer, and how to use them safely and advantageously.<\/p>\n<p>Developing, unclear regulation is something with which most industries have not dealt. Hence, the novel value behind crypto lenders and blockchain companies assuming more social responsibility and self-regulatory roles from the get-go is in the potential to create a more refined ecosystem with healthier relationships between clients, businesses and regulators. As crypto companies mature from start-ups to institutions with serious gravitas in blockchain and beyond, these principles of self-regulation and socially-minded services pave the way towards an ethically and morally guided financial world rather than one based solely on profit and legal obligations.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Magdalena Hristova<\/strong> is a public relations manager at Nexo. With her penchant for writing and natural curiosity towards anything technically complex and equipped to cause ripples in incumbent industries, she began working as a copywriter in the crypto industry before migrating into the novel space of communications in crypto.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/the-responsibility-behind-a-crypto-lender-s-asset-listing\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# The responsibility behind a crypto lender\u2019s asset listing &#8221; Crypto lenders are the institutions situated between consumers and the untamed, blockchain-based, and often unregulated space of cryptocurrencies. As such, they are in a peculiar position when it comes to responsibility towards their customers and the assets for which they provide services. Consequently, when choosing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":353622,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTAvOTMwNTVjMTgtM2NiYS00N2MwLTlmMGEtNTIyOTE1ZDVmYjBkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74894,74956,74863,74860,77595,75034,74898,70934,67874],"class_list":["post-353621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-blockchain","tag-coinbase","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-lending","tag-ripple","tag-sec","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/353621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=353621"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/353621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/353622"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=353621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=353621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=353621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}