As a seasoned analyst with over two decades of experience in the crypto market, this Vega Protocol decision strikes me as a bittersweet moment in the blockchain space. The rapid fall of VEGA tokens post-announcement is reminiscent of the 2018 ICO bubble burst, though I must admit it’s always amusing to see the crypto market react so swiftly and dramatically.
Vega Protocol has announced that it will be closing its blockchain operation. Validators will be keeping the network running briefly to enable users to collect their funds before a complete shutdown which is expected around late October.
The decentralized trading platform, Vega (VEGA), is shutting down its operations following a nearly unanimous vote by on-chain governance, which will redirect the project’s funds towards refining its primary software development.
As a crypto investor, I’ve found myself grappling with the news that the Vega Chain, known for its decentralized trading, is being retired. This decision seems to signal the end of community support for this blockchain and its native VEGA token. In a blog post dated September 12th, the Vega Protocol team announced the halt of trading on their network, signaling the start of a “ramp down” period. After hearing this news, I’ve witnessed a steep drop in the price of VEGA, dipping by 14% to $0.06203.
According to what we’ve been informed by the validators, the Vega chain will continue to function until no later than October 27, ensuring ample opportunity for users to remove their assets from the network.
Vega Protocol
The Vega Protocol team mentioned that a concluding vote is currently being held to decide the settlement costs for temporarily halted markets and distribute around $28,000 from unspent insurance funds to validators, aiming to maintain the network’s operation during the agreed-upon wind-down period. This vote, ending on September 13, will establish the market settlement based on prices recorded before trading was paused.
The team also warned that any assets left on-chain after operations cease could become irretrievable, as the protocol requires two-thirds of validators to authorize withdrawals from the network’s bridge.
2023 saw the debut of Vega Protocol’s network, a development that followed the blueprint laid out in its 2018 whitepaper. This blueprint described a blockchain designed for specific applications, operating on Tendermint’s proof-of-stake consensus system. In the year 2019, the project garnered $5 million during a seed funding round headed by Pantera Capital. Subsequently, in 2021, they conducted a community token sale on CoinList, raising an impressive $43 million.
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2024-09-12 10:32