It’s a battle of the billion-dollar titans in the crypto world as controversial crypto exchange FTX and powerhouse asset manager Grayscale Investments square off in a legal dispute that could result in unlocking billions of dollars in investments. FTX’s affiliate Alameda Research has filed a lawsuit in Delaware’s Court of Chancery against Grayscale and its CEO Michael Sonnenshein, in a bid to unlock $9 billion dollars in investments that are currently being withheld from FTX customers. The legal action also claims that Grayscale’s parent company Digital Currency Group (DCG) and CEO Barry Silbert are to be held responsible.
The lawsuit arose after the spectacular crash of FTX into bankruptcy in November last year. The crypto exchange was mismanaged by its team, commingling funds, and even placing risky bets with customer money. This has resulted in hundreds of millions of customer cash being reported as missing, with a large amount of it presumed stolen.
John J. Ray III, the FTX Debtors’ CEO and Chief Restructuring Officer, has commented that the legal action is “recover[ing] additional fund”s for both FTX customers and creditors, as well as for other Grayscale Trust investors that are being harmed by Grayscale’s allegedly improper ban on redemptions.
FTX further alleges that in the past two years Grayscale has extorted over $1.3 billion in exorbitant fees in contravention of the business trust agreements. If Grayscale had lowered those fees and allowed investors to withdraw their money, FTX asserts that its own shares would be worth 90% more than they currently are, generating a total estimated return of $550 million.
Another victim of this legal debacle is the now-defunct crypto hedge fund Three Arrows Capital (3AC). 3AC held a substantial number of Grayscale shares, but when their own finances started to go south and they needed to reclaim their investments, they were denied and the funds were locked away.
A Grayscale spokesperson released a statement to Decrypt calling the lawsuit “misguided” and claiming that Grayscale has had a “transparent” process in attempting to achieve regulatory approval to convert GBTC into an exchange-traded fund (ETF), which would presumably assist in resolving the current issues. The Grayscale/SEC dispute concerning this will also be presented to the US Court of Appeals next month.
All eyes will be on this legal proceeding as it unfolds, with the stakes high for both FTX and Grayscale, and a potential of unlocking billions of dollars lying in the balance. A rare rivalry between two crypto market juggernauts that is likely to enthral and captivate the community for some time to come.
Bitcoin maximalists may not be too thrilled about this, but digital art fans are in for a treat. Yuga Labs, the $4 billion company behind the Bored Ape Yacht Club (BAYC) collection, has announced their first Bitcoin-based NFT project, TwelveFold. Set to debut later this week, the limited edition collection of 300 generative art pieces will all be inscribed to the Bitcoin blockchain, making the project one of the highest-profile launches of its kind via Ordinals—a new way of committing artwork and media to Bitcoin by permanently attaching each to an individual Satoshi. This is an interesting development as every other project under the Yuga banner resides on the Ethereum blockchain, and they currently have 10,000 or more NFTs across eight projects. TwelveFold is also smaller in scale than usual, as it only consists of 300 pieces compared to a project like Autoglyphs, which has about 512 NFTs on Ethereum. The pieces will all be twelve by twelve grids with 3D graphics and hand-drawn features. According to Yuga, this design signifies data stored to the Bitcoin blockchain, and there will be no connection between the project and their Ethereum-based IPs. Yuga Labs said in a statement that “TwelveFold is an opportunity for us to explore, experiment, and set a foothold in the world of Bitcoin and digital scarcity. We are inventing our own path for digital art and self-expression on the blockchain.” The announcement of the project comes amid a rapid rise in the popularity of NFTs and Ordinals, and according to Yuga Labs the auction already generated 735.7 BTC (about $16.5 million). The highest-selling token went for as much as 7.1159 BTC, or around $159,600 at the time of writing, while the lowest accepted bid was 2.2501 BTC, or around $50,400.
Yuga are inviting bidders to participate in the auction as long as they have a self-custodial wallet containing bitcoin and an empty bitcoin address to receive the art. An important stipulation is that the address must be empty, which mitigates the risk of the inscribed bitcoin being transferred in the course of normal bitcoin transactions. Michael Figge, the designer behind the 3D project and NFT studio WENEW, described the project as “inspired by the relationship between time, mathematics and the blockchain” that cycles between “winter, spring, summer, autumn.” It’s an eye-catching concept, and ultimately it serves as a great introduction to the newfound world of Bitcoin-based NFTs. Welcome to the Bored Ape Yacht Club’s Bitcoin-Inspired NFT Collection, the Crypto Cycle—where digital art meets mathematics meets the blockchain.
Blur.io is the leading Ethereum-based NFT Marketplace, offering professional traders batch shelf and floor-sweeping transactions, order book NFT transactions, and the ability to browse and purchase NFTs from other marketplaces with instant liquidity.
Blur.io is a professional NFT trading platform that offers a convenient and cost-effective solution for traders. It does not charge any transaction fees and recommends a default royalty rate of 0.5% for buyers, which can be customized or even set to 0. Blur.io is a trader-friendly platform that allows users to easily buy, sell, and trade NFTs with no hassle. It also provides a secure and reliable environment for users to store their digital assets. With its user-friendly interface and low fees, Blur.io is the perfect platform for professional NFT traders.
Blur’s Team
Blur is a revolutionary product founded by MIT-graduate @PacmanBlur and supported by venture capitalists Paradigm. It is designed to help users protect their personal information online and keep their digital identity safe. Blur offers a range of features such as password management, secure form filling, and anonymous browsing. It also provides a secure payment system and a virtual credit card to help users protect their financial information. With Blur, users can enjoy a secure online experience and protect their personal data from hackers and other malicious actors.
$BLUR Token Airdrop
Blur, the NFT platform, recently completed its $BLUR token airdrop after Season 1 of its incentivization program. Traders earned up to $3 million in $BLUR tokens and the project launched at a $400 million valuation. Blur is now gearing up for Season 2 of its airdrop program, and the best way to earn $BLUR tokens is to use the platform by buying, selling and listing your NFTs. With the potential to earn up to $3 million in tokens, Blur is an exciting opportunity for NFT traders to get involved in the crypto space.
Blur has minted 3 billion BLUR tokens, with 51% allocated to the community, 29% to past and future core contributors, 19% to investors, and 1% to advisors. A community treasury of 360 million BLUR tokens, equivalent to 12% of the total token supply, can be claimed by NFT traders, historical users of Blur, and creators. 39% of the BLUR supply will be distributed through contributor grants, community initiatives, and incentive programs, with 10% allocated to the next incentive release. (https://www.smallhandsbigart.com/) The vesting of BLUR tokens will occur continuously according to a set schedule for each group of token recipients.
Marketplace Growth
Blur is the world’s largest NFT Marketplace, having flipped OpenSea within 6 months of its release. It has achieved this success due to its user-friendly UI, low fees and deeper liquidity for NFTs. With over 400,000 active users and $1.4 billion in traded volume, Blur is the go-to platform for NFT traders. Its incentives program has helped it become the leading NFT Marketplace, offering users a secure and reliable platform to buy, sell and trade digital assets. With its innovative features and competitive fees, Blur is the perfect platform for anyone looking to get involved in the NFT space.
Conclusion
Blur is revolutionizing the NFT market in 2023 with its $BLUR token airdrop providing an eye-watering return on investment and reducing the cost of trading. The project has taken the digital art and NFT market by storm and recently flipped OpenSea in volume. It offers users an intuitive platform to trade, purchase and list their NFTs with no transaction fees or royalties charged, and is backed by some of the biggest crypto funds in the industry. With its innovative approach to the NFT market, Blur is set to become the go-to platform for digital art and NFT trading in the coming years.
The 2020 edition of ETHDenver, the biggest Ethereum community event of the year, was an epic spectacle of technology, cheers, and joyful memories that will stay with its participants for years to come. Held at Denver’s National Western Complex, the two-week gathering saw 16,000 tickets sold and 600 staff members helping to bring the festivities to a spectacular close.
The grassroots ethos of the festival was amplified by a friendly, but fierce competition for supremacy in the hackathon of ETHDenver. When the dust settled on Sunday, the event’s iconic mascot – the SporkWhale – took center stage as ETHDenver’s co-founder, John Paller, made the exciting announcement of the festival’s upcoming plans.
The SporkWhale mascot was chosen to symbolize the conference’s mission of embracing decentralized community ownership, and Paller stated that the organizers of ETHDenver would soon be in talks with countries around the world to launch feeder events as leading up to the event’s planned “super bowl” in 2021. In his closing remarks, he also revealed that with the 2021 edition of the event being bigger, better and grander, the next SporkWhale event was sure to bring a stunning display of innovation and collaboration.
At a time when the crypto markets are seeing heightened volatility due to Silvergate’s recent failure, ETHDenver serves as a reminder of the resilience of the Ethereum community and its ability to withstand difficult periods of growth. The festival succeeded in conveying the spirit of genuine achievement and punk rock energy, bringing together developers from all walks of life. From the exchanges of high-level technological know-how to the silly songs by Jonathan Mann, the event provided a fill-fledged experience for all who attended.
The success of ETHDenver 2020 is a testament to the power of collaborative projects, built on the decentralized principles of community-based ownership. As ETHDenver organizers gear up to bring their extravaganza to new countries around the world, the anticipation for the SporkWhale Spectacle of 2021 is already catching on. With an even more powerful show slated to unfold in the coming year, it is obvious that the Ethereum ecosystem conferences living on the spirit of “SporkWhale” will continue to light up the crypto and blockchain space with optimism and unfettered creativity.
The crypto market was feeling a bit flat heading into the start of the week, with both bitcoin and ether hovering around their recent prices and the effects of Silvergate’s crypto failure reverberating through the market. As the week progresses, traders are also preparing for the potential boost that could come from positive economic data from a newly-reopened China. Amidst this chaos, ETHDenver provided a dose of inspiration for coders, developers and crypto enthusiasts around the globe. This event, held annually in Colorado, is created to showcase the groundbreaking work that people in the blockchain space are doing, and is known to have a punk-rock energy and DIY ethos that stands in stark contrast to the exploitative money-grabbing found in other crypto events.
Rather than appealing to the masses, ETHDenver proudly shows off the ‘rough edges’ of the Ethereum ecosystem. This includes events designed to “scare away normies”, like the annual contribution from Jonathan Mann (aka the ‘Song of the Day Guy’) and the dropping of 500 pizzas on an upstairs table, resulting in massive queues that made it hard to move – bizarre, but awesome.
Yet whilst ETHDenver may seem a bit chaotic and disorganised, this is simply evidence of a growing community that is drawn together by their shared interests in building something from the ground up. With many post-event clips shared online and plenty of people enjoying the event vicariously, it’s clear to see why ETHDenver has become a beloved annual gathering.
It’s this sense of community that is keeping the Ethereum ecosystem busy, even during the slow periods of crypto growth.
In spite of the bearish market, March Zheng, co-founder and managing partner of Bizantine Capital, highlighted how China’s re-opening could lead to an increase in appetite for assets like crypto – a boost in the “animal spirits” that may balance out fears from the U.S. equity markets and rising rates.
Overall, ETHDenver is a fantastic example of what can be achieved when people come together for the greater good and use their collective passion for something bigger. Sure, there will be chaos, a few pizzas thrown around, and maybe even some MIDI tunes to make you cringe, but none of that can detract from the genuine community spirit and intrepid journey of those on the Ethereum blockchain.
Uniswap Labs, the well-known decentralized exchange (DEX) provider on Ethereum, has recently announced the launch of their new self-custodial mobile wallet. This revolutionary wallet will offer users the ability to swap tokens on both level-1 and level-2 networks without having to switch to a different network. The wallet will be accessible for iPhone users on TestFlight, Apple’s beta-testing platform, with a wider release expected to arrive.
Uniswap’s mobile wallet is garnering attention for its features. According to their announcement, users will be able to benefit from the wallet’s integrated charting capabilities, the ability to search tokens across multiple networks, connection to multiple web apps on different networks, samples of favourite tokens, market price and volume monitoring and notifications upon completion of transactions. As an added security measure, their seed phrases and private keys will be encrypted and stored on the device, using Apple’s secure enclave for exclusion from device backups.
Security is a priority for Uniswap. To that end, they have enlisted Trail of Bits, a well-respected crypto audit firm, to inspect the wallet. They have also allowed users the option of manually backing up their phrase via paper or encryption on iCloud.
Uniswap has faced some issues while trying to launch the app. The first version was approved by Apple in October last year, yet the final version was rejected by their App Store just a few days before the projected December launch. Since then, Uniswap Labs has written back addressing those concerns and reiterating that they are compliant with their guidelines. Unfortunately, Apple has yet to grant them permission to launch, leaving Uniswap in limbo.
As an alternative measure, Uniswap Labs has made the decision to offer early access to a few thousand users through TestFlight. This leaves the company in good stead, as it allows them to later prove to Apple that their product is safe and compliant with their requirements.
Uniswap’s mobile wallet will offer users a more secure and user-friendly way to swap tokens across the different networks without having to switch from one to the other. With the help of Apple and their peerless security, Uniswap will soon be able to launch their revolutionary self-custodial mobile wallet and provide a secure trading experience for users.
zkSync is a Layer 2 solution for Ethereum that provides unlimited scaling and privacy. It is built on zero knowledge (ZK) rollup architecture and is designed to address the inherent drawbacks of Ethereum such as slow transactions and high gas fees due to limited throughput. Layer 2 blockchain protocols separate ownership from computation, allowing for smart contracts to hold all assets on the main chain while the off-chain component is responsible for computation and storage. As a result, zkSync provides a high transaction rate and L1 level of security, allowing users to transfer Ether and ERC20 tokens quickly and securely.
Layer 2 on Ethereum
zkSync Era is the first zero-knowledge EVM for Ethereum, launched by Matter Labs in February 2023. It is an open-source project with an MIT/Apache 2.0 license and offers developers the ability to deploy and test their dApps on the mainnet. The mainnet is currently closed to end users until Full Launch Alpha, the final milestone of zkSync Era. In the meantime, Matter Labs is actively pursuing security audits and bug bounty programs to ensure the safety and reliability of the platform. With zkSync Era, developers can take advantage of the scalability and privacy of zero-knowledge proofs to build powerful and secure dApps on Ethereum.
Matter Labs Team
Matter Labs is a Berlin-based startup that has created zkSync, the first EVM-compatible zero knowledge rollup supporting general-purpose applications in Solidity without costly gas fees and performance barriers. The startup has raised over $400 million from two dozen VC funds, crypto incubators, and investors, including the Ethereum Foundation, Dekrypt Capital, Placeholder, Dragonfly Capital, 1kx, USV, BitDAO, OKX Blockdream Ventures, and Huobi Venture. With its innovative technology, zkSync is set to revolutionize the blockchain industry and make it easier for developers to create applications on the Ethereum blockchain.
ZK rollups VS Optimistic rollups
Rollups are a type of layer 2 solution designed to increase scalability on the Ethereum blockchain. They allow for low-cost verification by rolling up many transactions into one batch and sending them all to Ethereum in one action. This reduces the amount of data that needs to be processed on the main Ethereum chain, allowing for faster and cheaper transactions. Rollups also use smart contracts to lock assets on the Layer 1 blockchain, providing an extra layer of security. With rollups, users can enjoy faster and cheaper transactions without sacrificing security.
ZK Rollups and Optimistic Rollups are two different types of Ethereum scaling solutions. ZK Rollups use zero-knowledge proofs to verify the batch of transactions and settle it as final on the Ethereum main chain, while Optimistic Rollups assume that every off-chain computation is valid unless proven otherwise. ZK Rollups have higher transaction rates and cheaper fees than Optimistic Rollups, making them a more cost-effective scaling solution. Both solutions are designed to help Ethereum scale and provide users with faster and cheaper transactions.
zkSync Features
zkSync is a Layer 2 scaling solution for Ethereum and ERC20 tokens that enables fast and cheap transfers. With a transfer fee of $0.02, a withdrawal fee of $1.59, and a one-time activation fee of $0.44, zkSync is a cost-effective way to scale transactions. It also supports gasless meta-transactions, smart contract interoperability, atomic swaps, limit orders, and native layer 2 NFTs. All of these features are open source and available to developers, making zkSync an ideal solution for crypto exchanges and other applications that require fast and cheap transactions.
It allows users to send and receive transactions faster and cheaper than on the Ethereum mainnet. It uses zero-knowledge proofs to ensure that all transactions are secure and valid. However, some users have reported slow speeds when withdrawing funds back to the L1 protocol, and dApps are less common due to the high computational power needed to prove every batch. Additionally, there is an issue of EVM compatibility, which further hinders dApps. Despite these drawbacks, ZkSync is a promising scaling solution that could help Ethereum scale and become more efficient.
Users are able to make cheap and fast transfers. It supports the majority of web3 wallets, including Metamask, Ledger, Trezor, Coinbase Wallet, Fortmatic, Portis, Keystone, KeepKey, and Torus. zkSync has brought cheaper crypto payments for millions of transfers, with over 14 million total transactions and 135 thousand verified blocks. Developers can find extensive documentation and resources to start building on the official website. The zkSync ecosystem consists of around 100 interesting projects, making it a great choice for users looking to explore the world of Ethereum scaling.
Conclusion
zkSync is a layer 2 blockchain protocol that enables fast, secure and low-cost transactions. It is a great choice for developers and gamers who want to build on the Ethereum blockchain. The zkSync ecosystem is dominated by DeFi, wallet, bridges, NFTs, and infrastructure projects. Argent, OKX Wallet, 1Inch Network, Balancer, Onto Wallet, Yearn.finance, Curve, ZigZag, Taker, Mute.io, and Reddio are some of the biggest projects onboard. Currently, zkSync doesn’t have a native token, but once it becomes fully decentralized, it will have a native token as a reward mechanism for ZK rollup operators and for staking. The zkSync AirDrop will also come with a native token.
ZkSync is a Layer 2 scaling solution for Ethereum that provides high throughput of up to 100,000 transactions per second. It is powered by Zinc, a native programming language, and offers smart contract interoperability with Solidity. Hacken auditors can analyze and review zkSync smart contracts for vulnerabilities, and the blockchain is secured with a security-first mindset and professional expertise of the leading smart contract auditor. zkSync also runs a self-hosted bug bounty program and may request the assistance of professional bug bounty platforms in the future.
The all-star quest, “Krapopolis,” has now been renewed for a third season—despite never having aired a single episode! The mythical animated TV series, set in ancient Greece and starring an all-star cast including Hannah Waddingham, Richard Ayoade, Matt Berry, Pam Murphy and Duncan Trussell, is set to premiere on Fox sometime in 2023. But hold on, there’s more.
To bring viewers ever closer to the all-star adventure of a lifetime, Krapopolis launched its inaugural 10,420 Krap Chicken non-fungible token (NFT) collection in August. These NFTs let holders vote on show elements, access behind-the-scenes content, attend IRL experiences with the cast and crew and redeem rewards for official merch and digital goods. Granted, the floor price of the collection on OpenSea sits lower than the cost to mint an NFT. But come on, it’s Krap Chicken!
Fox’s president of scripted programming, Michael Thorn, told Deadline he remained “bullish” on the project and was confident with the unusual order for a third season. In July an announcement brought the news of Fox Entertainment’s investment of $100 million into the project. Furthermore, OpenSea reported the project has done 418 ETH (approx. $650,000) in sales so far.
It’s no surprise that the Krapopolis project is riding the current wave of NFT mania! The media has become awash with NFT content and it seems everyday new NFT projects– like Tim Ferriss’ Ethereum project, “The Legend of Cockpunch”– are released. In fact, the success of “Cockpunch” minting is often reported as the biggest NFT market winner to date. With over 5,500 NFTs sold, the project yielded $2 million in proceeds to the Saisei Foundation.
In the world of the walking, talking, fighting roosters of Cockpunch, NFT owners use their characters to create derivative artwork and projects. By now, we’ve all seen the inroads NFTs have made into the world of virtual bands, apparel, themed restaurants and drinks, as well as the ability for holders to cash in on rewards for digital goods.
Fox is embracing this NFT craze, with launches of its exclusive fan experiences like the “The Masked Singer” digital experience or its BCL business and creative unit. Of course, Krapiopolis is riding this new wave of NFTs, and its approach is sure to extend beyond the series– to bring viewers in with holding a stake in the show.
The initial launch of Krap Chicken was an intriguing and inviting way to draw viewers into this mythical animated world of “Krapopolis.” It’s no small wonder that the project has been green-lit for a third season. As excitement builds, let’s see what the creators and cast of “Krapopolis” unveil in the coming year!
Silvergate Bank, one of the top crypto lenders in the world, is facing the biggest test in its four-year history. From the inception of its digital asset-focused banking operations, regulators warned such lenders to not focus solely on crypto-currencies, and now Silvergate is experiencing the full force of that warning. With nearly a billion dollars in deposits evaporating from its core customer base and investigations from two government agencies, Silvergate finds itself at the edge of the cliff, uncertain of whether they will be the first crypto-focused bank to face receivership.
Silvergate made a name for itself in the crypto industry by onboarding large institutional and exchange customers, but their successes abruptly came to an end in late 2022 when their customers’ deposits plummeted from nearly $12 billion to under $4 billion, mostly as a result of several high-profile bankruptcies and legal disputes. The bank could no longer sustain such a rapid outflow of capital and its reported assets size decreased from a high of $16 billion in the fourth quarter of 2021 to $11.4 billion in the same quarter of 2022.
The bank’s capital ratios slid just as quickly, plummeting from 11.3% at the end of 2021 to just 5.4% at the end of 2022—the level at which the U.S. Federal Reserve and FDIC consider a bank to be under capitalized and vulnerable to emergency intervention from regulators. (https://midnightmusic.com/) Even more alarming is the fact that Silvergate’s capital ratios are now below that of the Farmers and Merchants Bank of California—the scale of a mid-range community bank.
The reverberations of Silvergate’s insolvency has been felt throughout the digital asset industry. Coinbase and several other digital asset companies have distanced themselves from the bank while hedge funds and investors have been shorting its stock, with 71% of all shares sold short. The bank itself has delayed filing its annual 10-K SEC report and has taken out a loan from the Federal Home Loan Bank to fill their coffers.
The silver lining to all of this is that it has further highlighted the need for crypto companies to seek out regulated financial institutions. It’s not just a matter of convenience, but of survival, as the market needs to have the trust of traditional financial actors in order to succeed. Despite the struggles of Silvergate, the lesson of the situation is clear: crypto organisations who remain aware of their risks and take steps towards mitigating them stand the best chance of success.
In the wake of growing malicious activities in the crypto space, more and more organizations and individuals are joining forces to battle the beast. Crypto investors have been hit hard by crypto-related frauds and scams, resulting in massive losses worth billions of dollars. This has resulted in increased support from law enforcement agencies to fight against such cybercrime. Among the most prominent names in the crypto space is the leading cryptocurrency exchange, Binance. Owing to the growing number of malicious acts, the crypto platform has stepped up its game and partnered with various law enforcement agencies to launch a unique Joint Anti-Scam Campaign. On 3rd March 2021, Binance announced the launch of the campaign in Hong Kong, with plans to expand it to other territories in the near future.
The pilot program was initiated in collaboration with the Hong Kong Police Force’s Cyber Security and Technology Crime Bureau. Under this project, alerts are issued to potential victims to encourage vigilance. For instance, when customers tried to make a withdrawal, they were subjected to warning messages with details about common scams and tips to prevent such acts.
According to Binance’s investigation, 20.4% of the potential victims either dropped the transaction or chose to investigate further for potential scams. From the outset, the program was unrolled with dedicated crime prevention messages for Hong Kong residents, as well as recommended resources from different outlets such as Scameter, the Anti Deception Coordination Center, Cyber Defender, and Binance Verify. (https://www.nsmedicaldevices.com/)
The warning also included facts and figures related to the number of scams that occurred in Hong Kong since 2001 and made clear that Binance will never directly contact its customers. By launching the campaign, Binance intends to prevent similar scams from occurring and ensure a secure crypto ecosystem. The crypto platform is optimistic about the project’s success and is eager to work with law enforcement in other countries for bespoke warnings.
The crypto space has been the hotspot for a plethora of scams, from phishing to social engineering. For example, earlier this year, a fake version of the ETHDenver convention website was deployed to steal information from unsuspecting victims. The same month, an influencer in the nonfungible token (NFT) industry also became a victim of a phishing scam, losing over $300,000 worth of CryptoPunks.
To prevent such occurrences, the crypto industry needs to work in tandem. Recently, Europe combined efforts with crypto entrepreneurs and businesses to tackle cross-border crypto scams. Operated by Europol and Eurojust, the two EU agencies for law enforcement cooperation, the investigation identified a criminal network engaging in online investment fraud and incurred over €2 million in losses.
The investigation unearthed a criminal network of 261 individuals over four call centers, mainly in Bulgaria, Cyprus, Germany, and Serbia. Apart from the seizure of assets, cars, and electronic equipment, a total of 30 individuals were arrested. Notably, the Europol suspects that the total losses though unreported cases could amount to hundreds of millions of euros.
Statistics from the bug bounty and security services platform Immunefi revealed thatcrypto industry losses reached 3.9 billion dollars in 2021. The report suggests that 95.6% of the total loss was attributed to hacks, whereas frauds, scams, and rug pulls comprised the remaining 4.4%. BNB Chain and Ethereum were seen to be the most targeted blockchains.
The crypto community needs to join forces to protect itself from malicious activities. Besides proactively identifying and addressing vulnerabilities, industry bodies and organizations must take steps to educate the general public about such scams. For example, the UK National Crime Agency recently setup a crypto unit to deal with crypto-related crimes.
It is quintessential that people feel the need to be vigilant when it comes to crypto investments. Artificial Intelligence has been used to create fake videos, known as Deepfakes, of well-known personalities fooling the unsuspecting viewers. Users should always conduct due diligence before taking any serious action related to crypto transactions and refrain from clicking suspicious-looking links.
All in all, the crypto industry needs greater awareness and proactive preventative measures. With the increasing support of governments and law enforcement, platforms such as Binance are taking innovative steps to secure the ecosystem and protect users from fraudulent activities. All the stakeholders must continue to join forces to not only tackle the beast but also build a robust crypto system.
The crypto market has been steadily recovering after a tumultuous 2020. Market capitalization is forecast to break the psychological $1 trillion barrier and investor optimism shows no signs of waning. But while the outlook is generally positive, there are a number of worrisome signs that have Matrixport, a crypto exchange and lending platform, treading cautiously.
In a recent research report, the firm underscored that although it has been bullish on digital assets since mid-December, signals from the U.S. economy are now forcing it to take a more cautious stance. Specifically, stock markets are selling off and U.S. bond yields are climbing. The 2-year Treasury yield is now above the November 2022 high of 4.8%, and the difference, or spread, between the 2-year and 10-year yields is at an “unhealthy level of -0.87%.” This is accompanied by a rallying U.S. dollar, further adding to restrictive monetary policy overhang.
Additionally, Matrixport noted that despite a surge in total crypto market cap of 29.4% in two weeks, daily trading volumes have dropped to $60 billion from around $80 billion, while ongoing outflows from Paxos-Binance (BUSD) stablecoins have decreased market cap to $10 billion. This indicates a lack of interest from traders to engage with the crypto market.
The 60-day correlation between bitcoin and the Nasdaq stock index is at its lowest point since the Federal Reserve first started to communicate its interest-rate increases. This suggests investors can potentially hold onto future technology growth expectations, as the downside from macro data appears to have a greater impact on U.S. listed technology shares.
Matrixport believes that U.S. inflation will fall sharply this year and as a result, the Fed will stop raising interest rates. This should provide a relief rally as investors cut back their exposure by 50% if bitcoin prices dip below ,800. (www.topskitchen.com)
Despite the news of tightening regulation and restrictions from the NY State Department of Financial Services and the US SEC, Bitcoin prices have gone up 15% in the past 40 days, thanks to increased demand for stablecoins in Asia. This has pro traders more comfortable with trading above $24,000, and indicates that previous resistances at $930 billion will now serve as strong support levels. It is clear that both retail and pro traders are feeling confident despite bearish news, suggesting that odds are in favor of the rally’s continuation.
At the same time, however, there is no way of telling for sure what the future holds for the market. Matrixport is aware of the risks associated with macroeconomic events and are staying vigilant, with their cautious approach serving as a reminder of the need to remain mindful amid an overall positive outlook.
The crypto market is buzzing with anticipation for Ethereum’s upcoming Shanghai upgrade set for April 2021. This much-awaited upgrade, the latest major development after last year’s Merge, will allow users to unlock and withdraw from staking contracts, leading many to suspect the potential for a new overhang in ETH’s price.
But, according to digital asset investment firm Arca, these fears are likely exaggerated, or even misplaced. Ethereum’s withdrawal system severely limits the amount of ETH withdrawn at a time. With only 10% of the total amount of staked ETH able to be removed from the pool within a given month, Nick Hotz, Vice President of Research at Arca, predicts that investors’ withdrawal behavior will want to be measured.
Plus, there’s validity to the observation that swift withdrawals indicate pressing a need for liquidity – and with Ethereum’s current staking ratio hovering around 14%, there’s simply not enough desire among ETH holders to obtain funds quickly. After all, those who have already dedicated to the long-term growth are unlikely to exit the staked ETH too hastily.
John “Omakase” Lo, head of digital assets at investment firm Recharge Capital, echoed an additional sentiment: investors will need time to understand Shanghai and its intricacies, so swift withdrawals are unlikely. While Lo does advise that short-term reactions will give a sense as to whether the market will favor the long-term outlook of ETH, he continued to say that the behavior of Ethereum stakers in light of the new protocol will inevitably inform the market’s attitude.
Luckily, it appears that the Ethereum development team has a plan in place to absorb the potential overflow of rushed ETH withdrawals. Not only has the Shanghai upgrade instituted a two-tier withdrawal system (an area in which smaller withdrawals will be executed within only three days due to the queue), but the emergence of liquid staking derivatives (LSD) will let users continue to benefit from staked ETH without needing to withdraw their crypto. By issuing derivatives tokens such as stETH, these platforms will make extra yields possible without forcing holders to move their ETH onto the market.
Plus, JP Morgan analysts believe that Shanghai is a big win for Coinbase. With 95% of its retail customers possibly staking their ETH, this could yield Coinbase’s exchange between $225 million and $545 million in extra revenue per year, provided the market creates a bullish market narrative surrounding Ethereum stakers.
And, according to CryptoQuant, only 60% of all ETH staked are currently in loss at current prices; this suggests that there may not even be enough profits among current stakers for them to opt for liquidity and dump their ED on the market at all.
This all points to the likelihood of Ethereum’s staking percentage actually increasing post-Shanghai, outpacing withdrawers and converging with other PoS blockchains. In fact, Rich Falk-Wallace, Chief Executive of institutional crypto data platform Arcana, believes that Ethereum will likely reach a staking percentage of 30-50% in the next 18 months.
So, on the whole, it appears that ETH’s Shanghai upgrade is unlikely to cause major selling pressure. Instead, we may be looking at a net positive for the crypto in the long run, as the market’s short-term behavior informs its long-term narrative.
