An announcement coming from Detoken’s founder, Semyon Germanovich, reveals that the DeFi project is going to be shutting down shortly because of increased regulatory oversight issues with the crypto derivatives firms. The last day of the project will be 4th September 2021, says Garmanovich.
A decentralized finance (DeFi) project was launched last year called the “Detoken”. It was a project based on Bitcoin Cash (BCH) and was founded by a person named Semyon Germanovich. The popularity of the project grew instantly because the project allowed BCH owners the facility to hedge their BCH assets in the most efficient way. At that time the newest protocol technology called “Anyhedge” was introduced by a protocol developer firm namely General Protocols. This technology was immediately integrated within the protocols of Detoken. This then gave an edge to Detoken over its competitor projects and the project continued to work smoothly attracting global investors.
On 28th August 2021 an announcement was made by Detoken’s founder informing that the project is going to shut down permanently. He also informed that the last date of the project’s activity will be 4th September 2021. After that date, there will be no further activity of the project.
Germanovich said that it was very difficult for him to shut down a running project but he is forced to do so. He informed that the decision is based upon several unavoidable circumstances which led him to the forced closure of the project. However, he made mention of the primary reason behind closing down the project. He stated that regulatory oversight is becoming contrary to the project’s interest and existence. He informed further that they have analyzed the future of the project. Although, there is no such problem with the project, however, the regulator would not be able to appreciate it. Currently, regulators are equipped with deserted knowledge about DeFi projects and therefore they cannot understand the structure of the project.
Germanovich asserted that he is an advocate of financial freedom as well as privacy. However, the continuing project would mean inducting of policies such as KYC by the regulators. KYC is against the business model of Detoken project and therefore suffices the decision of shutting down prior to facing any difficulties.
It is now abundantly clear that the project will be closed in a matter of three days’ time. Already BCH community has started to miss out one of their most preferred investment vehicle in the shape of Detoken. The community wants the project to live at all times but have been able to convince themselves that the decision is right. They have been given fully option by the project to make alternate arrangements before the end date. Even after the end date, the users of Detoken will be able to move their running contracts with other networks, claimed Germanovich.