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What happened: Decentralized cryptocurrency lending platform Aave (CRYPTO: AAVE) might consider creating a version of the social media platform Twitter on the Ethereum (CRYPTO: ETH).
Over the weekend, Aave founder Stani Kulechov tweeted that since Square Inc (NASDAQ: SQ) and Twitter (NASDAQ: TWTR) CEO Jack Dorsey announced plans to build a new fintech, with glaring similarities to Aave, on the Bitcoin (CRYPTO: BTC), Aave should consider starting a Twitter on Ethereum.
Since @jack will build Aave on Bitcoin, Aave should build Twitter on Ethereum
– stani.eth rAAVE 👻 = (⬤_⬤) = 👻 🦇🔊 (tStaniKulechov) July 17, 2021
Kulechov added that his co-founder Jordan Lazaro Gustave would lead efforts to build it.
Why is this important: While it’s not clear whether Kulechov’s intentions are all that serious, his comments seem to stem from the fact that Dorsey’s proposed financial services company resembles Aave’s functionality.
Aave is a Decentralized Finance (DeFi) platform that allows users to borrow and lend in over 20 different cryptocurrencies.
The DeFi platform won a strong supporter of billionaire investor Mark Cuban, who spoke at length about the project on his blog and appeared to have a significant amount of AAVE tokens in his wallet.
AAVE looks like a bank, but it doesn’t say Cuban in a blog post earlier this year.
Read also: Jack Dorsey’s Square Announces New Fintech Company With “Primary Focus on Bitcoin”
“Aave is a fully automated and unauthorized platform where there are no bankers, no buildings, no toasters, no safes, no cash, no money custody , no forms to fill out, no credit scores involved. Everything is controlled by smart contracts. It’s fully automated, ”he said.
“Automated financial market makers are much more efficient in terms of capital and operations than similar traditional companies. Banks should be afraid.
Price action: AAVE was trading at $ 234 at the time of publication, down 10.49% in the past 24 hours.
The crypto token has lost 64% of its value since its all-time high past $ 666 in May.
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