Cake DeFi, a Singapore-based decentralized finance platform that’s been on an aggressive growth trajectory over the past few months, has looked to deflate any concerns its community of users might have going by events elsewhere in the market.
With Monday’s crypto crash decimating projects, and negativity rising another level on news from yet another crypto platform in trouble, the team at Cake DeFi has come out to reassure its customers.
Per an announcement published on Monday, the platform’s operations are not impacted – despite current market conditions and troubles surrounding competing businesses.
Why Cake DeFi had to “reassure” the community
I’ll give a shorter version of the sad story here.
Two seeming “robust” projects in the crypto industry have hit the headlines for all the wrong reasons in little over a month apart. First, a depegging UST sent LUNA crashing. As the cryptocurrency imploded, so did the market with it. That was in May.
This week, Celsius Network, a crypto lending giant that looked set for even greater strides, is swimming in murky waters. The alarm bells started ringing a while ago, but went full blast on Sunday when the platform announced it was pausing all withdrawals, swaps and transfers – indefinitely.
The community is very afraid as the LUNA debacle hasn’t even settled yet. And rightly so as rumors swell of Celsius being on the verge of insolvency.
Cake DeFi says its transparent, unlike many other CeFi providers
We are not Celsius Network, or those other centralized finance (CeFi) providers, that’s what Cake DeFi says in relation to events in the ecosystem. What more?
According to the platform, transparency and clear segregation of company and consumer assets sets them apart. Unlike with some “black box” competitors, Cake DeFi customers have access to all data and information they need to be assured of their assets’ safety. That includes details on all transactions, yields, and masternodes among others.
“Simply put, our users have full control, full ownership and full authority over their funds,” the firm said in the blog post.
It’s good to see a project such as Cake DeFi look to rally its community with an assurance that all is well. Given the lack of clarity around LUNA and Celsius, the transparency might be a welcome fixture.
While many will argue if this level of transparency is enough, it is certainly safe to say it is a good starting point and perhaps an envy of the industry.