Rarible Becomes Latest DeFi Project to Expose Its Centralization

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Sun, 10/11/2020 - 10:45
Alex Dovbnya
DeFi project Rarible bans a team account due to a potential terms of service (ToS) violation
Rarible Becomes Latest DeFi Project to Expose Its Centralization
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Rarible, the first decentralized and community-owned marketplace for digital collectibles, has temporarily suspended a team account “until further examination” for its terms of service violation, according to an Oct. 11 tweet.  

Its ToS prohibits utilizing an offering for advertising or engaging in different types of fund-raising events such as ICOs, IEOs, “yield farming,” and others.       

Rarible takes center stage in the NFT craze  

Non-fungible tokens (NFTs) are in the middle of a revival due to their integration into the exploding decentralized finance ecosystem.  

Rarible offers its users minting and marketplace services for digital collectibles, becoming the hottest spot for purchasing digital art.

The Moscow-based project was launched by Alex Salnikov and Alexei Falin earlier this year.

In July, it introduced its own governance token, RARI, that will have the maximum circulating supply of 25 mln.

After securing funding from investment firm CoinFund, Rarible predicted that the market cap of the NFT sector could grow to $315 mln in 2020.   

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The centralization of DeFi 

The banned OFF BLUE team is associated with crypto influencer and ardent YFI promoter Blue Kirby. After distancing himself from Yearn.Finance last week, he has now deleted his Twitter.  

The account was apparently running an ICO-style funding by offering NFTs on Rarible, with 2.4 ETH ($893,808) being invested.    

While warranted, the recent suspension throws into question the decentralization of Rarible, according to prominent Bitcoin maximalist Riccardo Spagni:

“It’s amazing that all these decentralised finance systems have the ability to suspend accounts.”

As reported by U.Today, a litany of DeFi projects also started freezing the funds of the KuCoin hacker last month.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.