What Happened: Decentralized cryptocurrency lending platform Aave (CRYPTO: AAVE) might consider building a version of social media platform Twitter on the Ethereum (CRYPTO: ETH) blockchain.
Over the weekend, Aave’s founder Stani Kulechov said in a tweet that since Square Inc (NASDAQ:SQ) and Twitter (NASDAQ:TWTR) CEO Jack Dorsey announced plans to build a new fintech, with glaring similarities to Aave, on the Bitcoin (CRYPTO: BTC) blockchain, Aave should consider building a Twitter on Ethereum.
Since @jack is going to build Aave on Bitcoin, Aave should build Twitter on Ethereum
— stani.eth rAAVE 👻 =(⬤_⬤)= 👻 🦇🔊 (@StaniKulechov) July 17, 2021
Kulechov added that his co-founder Jordan Lazaro Gustave would lead the effort to build it.
Why It Matters: Although it is unclear whether Kulechov’s intentions are entirely serious, his comments appear to have stemmed from the fact that Dorsey’s proposed financial services company resembles Aave’s functionalities.
Aave is decentralized finance (DeFi) platform that allows users to borrow and lend in over 20 different cryptocurrencies.
The DeFi platform has gained a strong supporter in billionaire investor Mark Cuban, who talked about the project extensively on his blog and appeared to have a sizeable amount of AAVE tokens in his portfolio.
AAVE looks like a bank, but it’s not said Cuban in a blog post earlier this year.
“Aave is a completely automated, permissionless platform where there are no bankers, no buildings, no toasters, no vaults, no cash, no holding your money, no forms to fill out, no credit ratings involved. Everything is controlled by smart contracts. It’s fully automated,” he said.
“Automated Financial Market Makers are so much more capital and operationally efficient than similar traditional companies. Banks should be scared.”
Price Action: AAVE was trading at $234 at press time, down 10.49% over the past 24-hours.
The crypto token has lost 64% of its value since its all-time high ahead of $666 in May.