Uniswap Labs said in a blog post that “transparency is key” and that it collected some on-chain and off-chain data to improve user experience.
Acknowledging the speed of innovations around blockchain and the solutions that Web 3.0 brings “to reclaim users’ privacy and choice”, the DEX said that it “shares these values” and that it was working to ensure that these goals are met.
As such, Uniswap said that the data it collects includes “public on-chain data and limited off-chain data like device type, browser version, etc.”
On-chain data refers to public information that is available on a blockchain. It includes information on purchases a user makes, transactions, transfers between wallets, and interactions with the protocol’s smart contracts. Off-chain is data that cannot be accessed from the blockchain. This kind of data is external to a blockchain and includes such information as the user’s device type and operating system. Note that this data can, nevertheless, be linked to a user’s wallet and/or its activity.
Monday’s blog post from the DEX reads:
“Our first priority is to protect user data and privacy, but we do want to make data-driven decisions that improve user experience. That includes public on-chain data and limited off-chain data like device type, browser version, etc. Because Uniswap Labs does not collect personal data, any vendors we work with do not have any personal data either.”
This statement makes it clear that Uniswap does not collect users’ personal data. The statement read, “First and foremost, we do not collect and store personal data, such as first name, last name, street address, date of birth, email address, or IP address.” It also added that it “does not share your data with any third parties for marketing purposes.”
The blog also added, “Uniswap does not share your data with any third parties for marketing purposes.”
Uniswap is a popular decentralized trading protocol built on the Ethereum blockchain and allows users to swap Ethereum-based tokens. It is different from centralized exchanges (CEXs) like Binance because anyone can use the DEX without having to sign-up. In addition, there is no token “listing” procedure which implies that cryptocurrencies are traded without the need for authorization from a centralized party.
The crypto community reacted to the news with concerns about how the collection would be used. A Twitter user Kurt Rasmussen said that what is coming next is that users will be asked to register on DEXs and they cannot do anything to stop it. Rasmussen added:
“All will be known, not the same as all blocked. Pay your taxes, necessary “evil”. Govt’s want their “fair share?”and banks want Defi destroyed. Not paying your taxes leads to govt making crypto illegal. Fight the banks, more important.”
Another Twitter user CryptoDavid warned his followers that Uniswap will not be the only DEX to start collecting user data. He also suggested investors resort to using VPNs if they felt unsafe.
Uniswap is the biggest DEX by 24-hour volume, with over $1.18 billion in tokens traded in the past day, according to CoinMarketCap. Its native token UNI is ranked 17 on CoinMarketCap with a market capitalization of $3.82 billion. It currently trades at $5.07, 5.75% off on the day. Its daily trading volume has spiked 51.6% over the past 24 hours, perhaps traders reacting to the news of the DEX collecting their data.
Could this negatively affect UNI’s price? Find out next.
Uniswap Price Prediction: UNI May Drop To $3.4
Uniswap price dropped approximately 38% from its low of $4.7 and set a swing high around $6.5. This was followed by a steady drop to the current levels around $5.07.
This price action has led to the appearance of a rounded top pattern on the four-hour chart (below). This pattern appears when an asset initially ascends toward a high, indicating an excess of demand. A reversal to a downward trend occurs when sellers exit the market as they sell on the rallies, which increases supply for the asset. Once the rounding top is complete, the asset breaks down to start a massive move downward.
In the case of UNI, a breakout from the rounding top technical formation would be confirmed when the Uniswap price produces a daily candlestick close below the price prior to the start of the initial climb – in this case, the $4.77 mark. If this happens, the asset could plummet 58% to reach the target of the prevailing chart pattern around $2.01.
UNI/USD Four-Hour Chart
Apart from the technical chart pattern, the Direction Movement Index (DMI) showed that the bears’ grip on UNI is still firm. The negative directional line (-D1) at 34 is way above the positive directional (+D1) line at 9. The Average Direction line (ADX) is at 34, suggesting that the downtrend is very strong.
And although this indicated there were more sellers than buyers in the market, their strength could soon run out as oversold conditions prevail.
Note that a four-hour candlestick closure below the roundup top’s neckline at $4.71 was crucial to sustaining the downward bias.
In addition, the downward movement of the RSI suggested that the Uniswap market currently favors buyers. Therefore, if the price turns up from the current levels, it may rise first toward the $5.5 psychological level and later the 50-day Simple Moving Average (SMA) currently sitting at $5.75. Such a move would invalidate the pessimistic outlook and extend the current recovery, resulting in another move toward the $6.0 psychological level.
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