towards a custodian 3rd party service - once it pushes people out of the blockchain all the network effect will be in 3rd party services and their original coins will be sendable but
not spendable -- a Chinese miner may validate their tx if he wishes but with no one to care for the on-chain transaction since the clients everyone will use will only honor the Liquid
service on top, and with the help of the state who will see absolutely no problem with a cryptocurrency it can control and regulate through gateskeeper it'll be back to square one.
