{"id":487153,"date":"2022-08-23T20:01:17","date_gmt":"2022-08-23T17:01:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/celsius-3ac-demonstrated-why-financial-infrastructure-should-move-on-chain\/"},"modified":"2022-08-23T20:01:17","modified_gmt":"2022-08-23T17:01:17","slug":"celsius-3ac-demonstrated-why-financial-infrastructure-should-move-on-chain","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/celsius-3ac-demonstrated-why-financial-infrastructure-should-move-on-chain\/","title":{"rendered":"# Celsius, 3AC demonstrated why financial infrastructure should move on-chain"},"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-6a2ecd3a12573\" 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-6a2ecd3a12573\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/celsius-3ac-demonstrated-why-financial-infrastructure-should-move-on-chain\/#%E2%80%9D_Celsius_3AC_demonstrated_why_financial_infrastructure_should_move_on-chain_%E2%80%9C\" >&#8221; Celsius, 3AC demonstrated why financial infrastructure should move on-chain &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Celsius_3AC_demonstrated_why_financial_infrastructure_should_move_on-chain_%E2%80%9C\"><\/span>&#8221; Celsius, 3AC demonstrated why financial infrastructure should move on-chain &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>While mainstream coverage of cryptocurrency has been overwhelmingly negative in the wake of the collapse of the Terra ecosystem, the bankruptcy of Celsius and the fall of Three Arrows Capital, these events ultimately show why <em>more<\/em> of the financial system should operate on-chain, bringing more transparency and information to market participants.<\/p>\n<p>In all three cases, the damage was caused and exacerbated by opaque, off-chain entities. And while the reason for the trio of events is important, it has also caused considerable damage to the overall reputation of the industry. These events have made it clear that the industry is in need of more transparency, something that can be made possible with more on-chain data and data analysis tools. <\/p>\n<p>Proponents of blockchain technologies often tout their transparency: the networks are treasure troves of open, incorruptible financial data allowing for economic activity to be measured with an unprecedented degree of accuracy. This new <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> creates immutable records of all transactions where sentiment and investor behavior can be measured through the collection and study of data.<\/p>\n<p><strong>On-chain data gives us insight into market events\u00a0<\/strong><\/p>\n<p>On-chain data analysis has become essential in the blockchain space. By looking at transaction data and crypto wallet balances, we can gather valuable insights into market conditions. This is crucial for participants and investors trying to plan their next move. Not only does data tell a story of the market&#8217;s past, but it allows each and every investor to make an informed decision before initiating any trades or interacting with the market. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>A $10B hedge fund gone bust with founders on the run<\/em><\/strong><\/p>\n<p>The importance of analytics platforms has become more <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>arent than ever before \u2014 they are essential for learning from our mistakes and understanding weaknesses within the blockchain ecosystem. The events leading up to Celsius\u2019 collapse and the unveiling of 3AC\u2019s holdings were researched and analyzed thoroughly by analysts and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> alike. Research has helped specifically to paint a picture that outlined where the contagion started and how it spread. This was only possible because <em>some<\/em> of that data was on-chain. If 3AC and Celsius had a full picture of their holdings on-chain \u2014 similar to a platform such as Aave which anyone can audit and verify collateralization \u2014 fewer investors and creditors may have been duped. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-08\/785e0a0e-db2c-4ef8-8d6f-c3fe479c5143.jpg\"><figcaption style=\"text-align: center;\">On-chain metrics for bitcoin as of Aug. 23, 2022. Source: Into the Block<\/figcaption><\/figure>\n<p>Similarly, on-chain intelligence plays a role in real-time market movements, not just in analyzing the past. Data that provides users near real-time information about the movements and positions of the industry\u2019s most important and largest players proved to be essential when Terra USD (UST) lost its peg. Organizations with insights into this data managed to avoid the worst of the UST de-peg.<\/p>\n<p><strong>Leveling the playing field<\/strong><\/p>\n<p>On-chain analysis offers the promise of equal access to information and is not based on hype, sentiment, or technical analysis. This type of analysis can be focused exclusively on data, where the major benefit of on-chain metrics is that they explain investor behavior and network health in real-time. Additionally, on-chain data levels the playing field by making the strategies and activities of top participants public knowledge. <\/p>\n<p><em><strong>Related:\u00a0Crypto Biz: The 3AC saga takes another bizarre twist<\/strong><\/em><\/p>\n<p>Transparent data is a core feature of blockchain networks. While the collapse of Luna, 3AC, Celsius and others was treated as a validation of the belief that it is an ecosystem of \u201cshadowy super-coders\u201d where criminals and scams flourish, the reality is that these entities only managed to harm investors because such large elements of their operations were off-chain.<\/p>\n<p>Ultimately, the antidote to crypto contagion is not regulation or law enforcement, but in bringing <em>more <\/em>financial infrastructure on-chain where it can be analyzed and used by the wider public. <\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>John Calabrese<\/strong> is the head of product at Nansen, a blockchain-analytics firm. He holds more than 10 years of experience in product management and previously worked for companies in the finance technology space including FIS and Fidelity, and at startups such as Cinch and Monit. John has roots in traditional finance, earning his CFA and FRM designations, but is most passionate about the future of finance where products are more decentralized, transparent, and efficient through blockchain technology. When not working or trading crypto, John can be found at home spending time with his Shiba Inu, Nutmeg.<\/div>\n<\/div>\n<p><em>The opinions expressed are the author\u2019s alone and do not necessarily reflect the views of Cointelegraph. This article is for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> information purposes and is not intended to be and should not be taken as legal or investment advice.<\/em><\/p>\n<\/div>\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 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> 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\/celsius-3ac-demonstrated-why-financial-infrastructure-should-move-on-chain\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Celsius, 3AC demonstrated why financial infrastructure should move on-chain &#8220; While mainstream coverage of cryptocurrency has been overwhelmingly negative in the wake of the collapse of the Terra ecosystem, the bankruptcy of Celsius and the fall of Three Arrows Capital, these events ultimately show why more of the financial system should operate on-chain, bringing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":487154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvNDg5YmJiMDAtYjg3MS00Y2ZhLWJkOTktMDQ4OWZjYzllZjA1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74863,81262,74868,75238,76556,72366,70610,70759,4965,71407],"class_list":["post-487153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrencies","tag-cryptomarket","tag-defi","tag-financial-services","tag-fintech","tag-data","tag-finance","tag-tech","tag-technology","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/487153","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=487153"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/487153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/487154"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=487153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=487153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=487153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}