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Apparently, Uniswap Is Secretly Controlled by Only One Entity

Mon, 02/06/2023 - 10:02
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Arman Shirinyan
Prominent decentralized cryptocurrency trading platforms might not be as decentralized as you would expect
Apparently, Uniswap Is Secretly Controlled by Only One Entity
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Uniswap, the popular decentralized cryptocurrency trading platform, is allegedly being secretly controlled by the prominent investment fund Andreessen Horowitz.

This information was revealed through recent on-chain data analysis, which showed that the fund has control over 41.5 million tokens, equivalent to 4.15% of the total supply of UNI, from 14 different wallets. Although this percentage may seem small, the amount is still considered significant and could be used to sway important proposals on the network, affecting the future of the platform.

Andreessen Horowitz is a well-known venture capital firm that invests in promising tech start-ups and has a strong track record of successful investments. The fund has been a major player in the crypto industry and has backed several successful projects, including Coinbase and OpenAI. The fund's control over UNI tokens has raised concerns about the decentralization of the platform and the potential for manipulation.

Uniswap is a decentralized exchange that allows users to trade cryptocurrencies directly, without the need for intermediaries, such as centralized exchanges. The platform operates on the Ethereum network and uses automated market maker technology to provide liquidity and facilitate trades. Uniswap has become one of the largest and most popular decentralized exchanges in the world, with daily trading volumes exceeding billions of dollars.

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While the fund's control over Uni tokens is not enough to manipulate the entire network, it does have the potential to influence important decisions and shape the future of the platform. As a result, many in the crypto community are calling for increased transparency in Uniswap's governance process and are expressing concerns over the fact of Horowitz's possession of funds.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.