- Uniswap protocol’s proposal to deploy Uniswap V3 on Binance Chain has reached 40 million UNI with 58.45% votes in favor.
- A16z, an investor in LayerZero, used its full voting rights, 15 million UNI, to quash the launch on the BNB chain and oppose the use of Wormhole.
- BNB price is on track to nosedive 20% to the support zone between $257 and $229.5.
A proposal to deploy Uniswap V3 on the BNB chain has ignited a battle in the crypto community. A California-based venture capital firm, Andreesen Horowitz, known as a16z, has used its full weight and deployed 15 million UNI to vote against the proposal to deploy Uniswap V3 on BNB Chain.
Influencers in the crypto community identified that the proposal uses Wormhole as a cross-chain bridge while a16z is a leading investor in competitor LayerZero.
Also read: Is there more upside to Dogecoin-killer Shiba Inu’s rally after 100% gain in 90 days?
Uniswap V3 proposal to deploy on Binance Chain faces stern opposition from a16z
A proposal for DeFi protocol Uniswap V3’s deployment on Binance Chain is facing opposition from a16z, aka Andreessen Horowitz. The venture capital (VC) firm threw in 15 million UNI to oppose Uniswap V3’s deployment on the BNB Chain, proposed by 0xPlasma Labs.
Voting on proposal to deploy Uniswap V3 on BNB Chain
The proposal uses Wormhole as a cross-chain bridge, while a16z is a backer of LayerZero, a competitor to Wormhole. As of now, Wormhole appears to be the choice in the community, however this may not be the final choice.
There is a behind-the-scenes battle going on between deep-pocketed VCs that could swing the vote on which cross-chain bridge will be used for Uniswap V3’s deployment on BNB Chain. Changpeng Zhao shared the details of a16z influence on Uniswap V3’s latest proposal with 8.1 million crypto followers.
Uniswap controlled by a16z? https://t.co/9QTi1KjVjG
— CZ Binance (@cz_binance) February 5, 2023
A community temperature check vote swung in favor of Wormhole, however this isn’t technically final and the official vote to approve the bridge between Ethereum and BNB chain is yet to come. The outcome could potentially swing in a different direction with hundreds of millions of Dollars at stake.
A16z and Jump are the two venture capital firms that back LayerZero and Wormhole respectively. A source close to the matter revealed that a16z's 15 million voting tokens could not participate in the temperature check due to the custodial set-up of its tokens.
Eddy Lazzarin, an investing partner at a16z commented on a forum post and asked the community to count them in favor of LayerZero, in the temperature check. Wormhole won the temperature check vote by approximately 11 million token votes.
Binance Coin is at risk of 20% drop to support zone
While the community votes for or against Uniswap V3’s deployment on BNB Chain, Binance’s native token BNB is at risk of a 20% drop. In the last two weeks of December, Binance Coin price ranged between $257 and $229.50, the support zone for the exchange’s native token.
As seen in the chart below, the Relative Strength Index (RSI) for Binance reads 45.41, and it is below the neutral zone. RSI shows that BNB’s recent uptrend lacks underlying strength. There is a likelihood of a 20% decline to the support zone at $257.
BNB/USDT price chart
BNB price has support at the 23.6% and 50% Fibonacci retracement levels of $310 and $278.9 respectively. BNB price could bounce back from the support zone and begin its recovery in the event of a decline.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.