Tuesday, March 28, 2023
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Regarding Lido’s FUD, podcaster apologises for “spreading a rumour”

David Hoffman, the co-founder of the multimedia studio Bankless, has expressed regret for having propagated claims about a “Wells notice carpet bombing” that was allegedly targeting cryptocurrency companies, including the decentralised financial protocol Lido Finance.

The term “carpet bombing” was used to describe a wave of Wells notices that, according to Hoffman’s source, were delivered to crypto businesses last week. On March 3, he revealed the unreliable details on the Bankless Show podcast.

“Several DeFi apps have received Wells notices, which are many. […] Over the past week, wells notices have been distributed throughout the sector. He answered, “I think Lido got one, but it hasn’t come to light yet.

The following day, Hoffman expressed regret for mentioning the protocol in the rumour and emphasised on Twitter that Lido had refuted the assertion. He reiterated that unscheduled wells notices had been sent to cryptocurrency companies before saying that “Lido doesn’t deserve to be focused on explicitly here”:

It seems commonly recognised that there are unexpected Wells Notices out there, but it’s impossible to know how many or when they were served, according to other sources that we consulted.

According to data from CoinMarketCap, the rumour caused the price of the Lido DAO (LDO) token to drop by around 20% on March 3. An quick response to Cointelegraph’s request for comment from Lido Finance was not received.

A regulatory authority may issue a Wells notice to notify of infractions discovered during an inquiry. It is essentially a letter informing a company of anticipated enforcement action.

In regard to its Binance USD stablecoin, which the commission says is an unregistered security, stablecoin issuer Paxos recently got a Wells notice from the United States Securities and Exchange Commission.

Recently, the Dollar Coin issuer Circle was faced with rumors regarding Wells notifications. Dante Disparte, chief strategy officer and head of worldwide policy at Circle Pay, promptly refuted the rumour, according to Cointelegraph.

Patrick Huston
Patrick Huston
As a senior editor, Patrick is a professional who is in charge of putting out business news. As a senior editor, Patrick is likely to be in charge of the duties of junior editors and writers, make sure the content is correct and high-quality, and work with other departments to make sure the business news is published on time. Patrick knows a lot about business and the latest market trends. He uses this knowledge to choose and edit stories that are both interesting and useful to readers. He also works with reporters and analysts to come up with insightful pieces that help readers keep up with the latest business news. Patrick is a very important part of keeping the public informed and interested in important business issues. He is passionate about journalism and strives for excellence.

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