Binance’s association with food-based tokens is not new. Despite several controversies surrounding these decentralized finance [DeFi] tokens, the Malta-based cryptocurrencies along with other platforms have announced supports for the same. As the appetite for food tokens continued, several platforms are now looking to explore the DeFi menu. Adding to this trend is the Binance-acquired crypto debit card company Swipe.
The CEO of Swipe and Founder of Venus Protocol, Joselito Lizarondo hinted at a potential collaboration of SXP on DeFi protocol PancakeSwap. While replying to the Twitter user who expressed an idea of Swipe holders to provide an incentive for liquidity to get free CAKE while the CAKE holders can earn SXP by staking their CAKE, the exec tweeted,
“be careful what you wish for”
PancakeSwap is a Binance Smart Chain-based DEX and since the exchange acquired Swipe, this could eventually materialize. While there has been no official confirmation regarding the same, Twitterati expressed mixed feelings.
Reluctance towards DeFi food protocols
There is no doubt that the current DeFi space’s trajectory is reminiscent of the ICO boom. In early September, there was Pizza Finance, Tendies, Kimchi Finance, Hotdog, Springroll Finance, and projects based on almost any food under the sun. But what added to the already existing skepticism were the blatant copycats of more reputable projects that were getting listed by prominent platforms. Hence, Binance rolled out Innovation Zone wherein it allowed users to trade newer token offerings from the comfort of their Binance account, while at the same time protecting less suited users from being exposed to the ‘risk’ that comes with trading them.
But not all platforms have such provisions and hence filtering out what’s legitimate and what’s not can be hard. Hence, a certain amount of fear towards the food-themed protocols and their tokens persists even now.
Tony Sheng, a former analyst at Multicoin Capital now heading a new project called Cozy Finance, had earlier commented on food coins:
“i’m pretty scared by this grocery coin thing; not for defi insiders who know how to diff contracts and manage their own risk; but for their friends and friends of friends who show up to play the “game”; a big loss of funds is inevitable be it a hack or a scam”