Cardano centralization fears drive investors away as ETFSwap takes spotlight

Cardano’s centralization concerns drive investors toward Ethereum-based defi project ETFSwap.

In recent times, there have been fears in the crypto space about Cardano’s purported decentralization claims, which prompted a notable crypto founder, Justin Bons, to speak up, alleging that Cardano (ADA) is highly centralized. This accusation has cast a dark shadow over the blockchain’s reputation and has sent investors into a frenzy.

As a result, all eyes are turning to the new trailblazer on the block, the Ethereum new defi platform, ETFSwap (ETFS). With promises of dynamic infrastructure and unparalleled decentralization, coupled with new financial solutions, ETFSwap (ETFS) is rapidly emerging as the go-to platform, capturing the spotlight and investors’ interest.

Cardano centralization claims sends investors running

According to Justin Bons, the founder and Chief Investment Officer ( CIO) of Cyber Capital, Cardano (ADA) Blockchain, contrary to its foundational nature as a decentralized network, has elements within the Blockchain that make it highly centralized. In his detailed explanation in an X (formerly Twitter) post, he said there are some mechanisms within the Cardano (ADA)  blockchain called “Genesis keys” which can be used to control the blockchain. And this goes against Cardano’s claim of decentralization.

The crypto founder pointed out that the genesis keys constitute a set of multi-signature arrangements that control Cardano’s network, rules, and protocols. He expressed fears that if a group gets their hands on these keys they could wield a significant measure of control over Cardano (ADA).

In a telling revelation, the crypto founder further accused Input Output Global (IOG), the technology company behind Cardano, of holding on to 5 out of the 7 genesis keys. The implication is that IOG currently holds majority control over the blockchain and could alter any aspects of the Cardano (ADA) blockchain at its discretion. The IOG could reportedly stop the chain, change emission schedules, censor, and more. According to Bons, “That is an unprecedented degree of centralized control for an L1 chain; shocking!”  he exclaimed. 

Clarifying further, Justin Bons stated that these genesis keys were introduced in 2020 during Cardano’s Shelly mainnet upgrade, and the control was shared by the three entities of IOG, Emurgo, and the Cardano Foundation. A critical shift in the power balance occurred when the Cardano (ADA) Foundation delegated its control to IOG, making it retain a significant portion of control hence reducing the decentralization power of Cardano (ADA).

Ethereum defi project ETFSwap takes over

Following the rumors and concerns of a few large stakeholders controlling Cardano’s future and development, many investors are reassessing their positions to seek safer, more transparent alternatives. 

ETFSwap (ETFS)  is a new Ethereum-based defi project that promises to uphold the core principles of decentralization and financial inclusivity. As Cardano’s centralization fears push investors away, ETFSwap is emerging as a beacon of trust and uniqueness in the defi space. 

Established on Ethereum’s robust and secure Blockchain, ETFSwap leverages smart contracts to tokenize traditional exchange-traded funds and bring them to the blockchain. This allows crypto users to trade ETFs with minimal friction and maximum transparency. Unlike TradFi and some centralized crypto platforms, ETFSwap does not require KYC, and transactions are fully visible on the blockchain, making sure every transaction and decision is auditable and tamper-proof. 

ETFSwap community governance model, user-friendly interface, no KYC verification for users, high liquidity, and security, all add up to make it a formidable contender in the market. It is also a fully audited platform, with blockchain security firm CyberScope finding no vulnerabilities in the platform.

Conclusion

ETFSwap is a unique platform, and its native token, ETFS, is expected to perform well upon listing. Currently in its presale stage 1, the deflationary ETFS token has sold out over 85 million tokens and is headed to the $10 million mark. Interested users can join the project at the price of $0.00854 now. Its price will be $0.01831 in stage 2.

To learn more, visit ETFSwap presale and join the ETFSwap community.