Uniswap - A Dex Or A Token Gambling Platform?

2020-08-20 09:50:00 · 65 views · 5 min read


In brief

  • Uniswap trading volume booming in August hitting a record high on 10th Aug

  • The continued speculative frenzy over new DeFi tokens causing volume to soar.

  • Despite gas-fee continue to rise, hitting ATH at 200 Gwei in Aug, dex trading volume doesn't look like it will be slowing down anytime soon.

  • Benefited by the low token listing cost in Dex and speculative money-making opportunities, the amount of new tokens in Uniswap is increasing.


Is Uniswap a decentralized exchange (dex) or a token gambling platform for speculative investors?



No registration, no kyc, just use your ETH wallet to connect. (DEX Is The Main Stream? Have You Used It?



No listing fee, no project background checking, all the transactions are totally transparent on-chain. 



Prices go up 10 times, 100 times, or even 1000 times for those newly listed DeFi tokens. It can make you a millionaire in one night, it may also make you lose everything on the other day. ($YAM market cap falls from $60M to zero in 35 minutes)



Uniswap does not have its own token. It is a more fair and transparent trading platform compared to those centralized exchanges in many investors’ and projects’ points of view.



Until now, Uniswap’s August transaction volume has surpassed its transaction volume in July. 



A Dex or A Token Gambling Platform?


Uniswap is a fully decentralized protocol for automated liquidity provision on Ethereum blockchain. 



Starting in July, Uniswap’s transaction volume and users are increasing largely and reaching its ATH on 10th Aug. 



All of these started with the booming of DeFi tokens. Before July, there was less than 1 new token listed in Uniswap. Now, every day there are tens of new tokens listed on Uniswap. Many of them are claiming to be DeFi products.



You may feel it is very similar to ICO in 2017. The difference is, the projects of these newly listed tokens do not need to have a well-known team or advisors as an endorsement. Some of them do not even have a complete product that launched. Why do we know about this? Because there are tons of new “DeFi” dapps submitting listing applications on dapp.com! 



Here is one of the answers in our weekly discussion - (If) Yam 2.0 is coming, you: 1. can't wait to farm 2. won't spend a penny in it.



A market that everyone can copy and paste the code of others’ projects, issue a token, and then list it in Dex like Uniswap. As long as there are new people coming in, the price will be pulled up. 



The life cycle of a new project on Uniswap, from listed to exhausted, may only take a few days. Until now, there are 3390 smart contracts on Uniswap, which means, 3390 tokens. The success of a token does not rely on the quality of the project and team but how many new people are joining in and pumping the new money. Similar to the Ponzi scheme?



Pump or dump. Millionaire or 0. Investors are betting, or investing? 



Dex is offering a new and fast gambling platform for all those token players?



Let us know what you think in the comment below. 



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