Category: Crypto Trends

The art of the con is as old as the world itself, with tricks and games pre-dating recorded history. However, the emergence of cryptographic currency – combined with its relatively young, barely regulated industry – has enabled the rise of a new kind of scam artist: the ‘rip-deal gangs’.

The fraudsters behind these scams first use a highly sophisticated ruse that has become known as the ‘crypto long con’. After spending weeks or months courting blockchain-project executives, they weave elaborate and impressive-sounding tales of investments and promise large amounts of money. When their victims agree to meet in person, the scammers keep them off balance with clever misdirection and deceptive tactics. In a few cases, they’ve even gone so far as to tamp down victims’ suspicions by presenting an electronic version of a non-disclosure agreement.

Once they’ve gained the trust of their victims, they direct the victims to set up wallets that allow them access to the victim’s newfound stash. But when the funds are sent over, the scammers are somehow able to drain the wallets – whether through nefarious means, private key exploitation or security flaws.

One of the most famous victims so far is Ahad Shams of Webaverse, who was scammed out of $4 million earlier this month after meeting a fraudster in person in Rome.

The details of his case are strikingly similar to those described in a German police officer’s report on the rise of rip-deal gangs, who often operate across multiple jurisdictions to make tracing their movements incredibly difficult.

Other victims have taken to a Telegram group to share information, while some of the so-called victims in the group have been quickly suspected of fraud themselves.

These rip-deal gangs are just one example of the fraudsters exploiting the relative anonymity and lack of regulation that comes with crypto trading. Others have been seen in Europe, including Austria, Italy and Germany, while victims of similar scams in the U.S. lost a whopping $185 million in romance scams in 2021.

Even more troubling is the name that seems to crop up in many of these victims’ accounts: Joseph Safra. Although it’s unclear who this individual is or whether he’s actually connected to the scammers at all, his mysterious presence haunts many of the victims’ recollections.

On a personal level, these scams are an absolute tragedy for their victims, leaving them feeling drained, robbed and unable to trust other people. But on a broader level, these scams leave a far more insidious legacy on the crypto industry.

Whether they realize it or not, these scam artists have subtly undermined public trust in the nascent cryptocurrency markets and reinforced bad stereotypes. As more and more money flows into the crypto industry, so too must a corresponding increase in trust – both in terms of individual users and the industry as a whole. (https://cityoflightpublishing.com/)

Until then, it will be up to law enforcement to catch – and hopefully prosecute – those behind this new breed of con artist. Until authorities can confidently stop those behind the billion-dollar blockchain ‘rip-deal gangs’, their masterful scams may continue to enslave more innocent victims.

With the rise of non-fungible tokens (NFTs), the crypto space is becoming increasingly creative with these digital assets and looking for ways to make them even more functional. As part of this innovation, the concept of “NFTFI” has emerged — the application of traditional DeFi technology to NFTs — to make these tokens even more capital efficient. This concept has been transforming the way people think of pet rocks and pixel art and has been gaining traction as more platforms emerge to give it life.

At the forefront of this emerging culture is Julian Holguin, CEO of NFTs-focused project Doodles. As he made his way to the NFT Paris event in 2021, Holguin had some interesting thoughts to share about the space — particularly for optimists who once used the acronym WAGMI (or “we’re all going to make it”) as a mantra on Twitter.

The space had certainly experienced a major fall from its highs in 2021, with multiple projects failing and the headwinds of the bear market proving to be challenging for many. As a result, Holguin observed deeper connections forming in the communities surrounding NFT projects as a sign of resilience.

Holguin also saw hope in the rise of NFT-focused events like NFT Paris, which has provided a beacon of positivity to the space. Events like these provide a much-needed chance to step away from the doom-scrolling and echo chambers of the crypto winter, while offering attendees a chance to connect with others in person.

For Holguin himself, this has been a breath of fresh air after coming off a two-year stint as president of Billboard. His focus now has shifted to shipping product and not talking so much about it — letting the products, like “money legos,” do the talking instead.

Just like with traditional DeFi, users are able to utilize lending and borrowing platforms to increase liquidity without having to sell their precious Doodles. And even at the early stages of adoption, this idea has been gaining traction, with over twenty-three million dollars in activity already recorded. On top of that, new decentralized exchanges like SwapStation and NFTX have been created to further develop a liquid market for trading these assets.

Overall, in the midst of the crypto winter, Holguin believes that the NFT community is working hard behind the scenes to build something their communities can proudly be proud of — a sentiment that is bringing life to these pet rocks. With traditional DeFi tech boosting the functionalities of these assets, the rise of in-person events, and a newfound sense of connection within the communities, NFTs are slowly but surely paving their own destiny. So while WAGMI may not be all that officially associated with the space anymore, it is clear that we are all going to make it through this period of development together.

Well-known artist Tom Sachs is taking a unique path in the ever-shifting world of Web3, often known as crypto, blockchain technology and the now popularized Non-Fungible Tokens (NFTs). But, when it comes to the terminology and labels often associated with the technology he is more focused on the function than the form it takes. According to Sachs, “I’m not so interested in those words. I think they’re–in a lot of ways–poisoned.”

Sachs continues to lead on the forefront of the NFT phenomenon through his unique venture, Rocket Factory. It consists of a platform where digital rocket components are bought as NFTs, featuring features of popular brands like Coca-Cola and Budweiser. This artwork has drawn the attention of businesses such as Budweiser who, last year, paid a whopping eight Ethereum for one of Sachs’ pieces. For Tom the project allows the viewers to engage in a conversation about consumerism, a commentary on wanting to “define yourself through the things you consume.”

To bring a physical element to the project, Sachs has also set it up in a way that allows participants to assemble the digital components into a complete rocket piece, which can then be launched and recovered as a matching sculpture. A unique aspect of this project is the ability to contain all the data and additional information about the project, such as videos and metadata, within the NFT.

As the value of the NFTs gain traction and are starting to be incorporated into museum’s collections, Sachs believes it is not only blockchain technology redefining art but also art redefining blockchain technology. Participating in the NFT culture has allowed Sachs to learn from people in the Web3 community and the field of NFTs has”learnt how to navigate through people”. (https://davidsinstruments.com/)

Embracing the notion of an ongoing conversation, Sachs continues to not only advocate for the value of art but also the advancement of technology to create more opportunities. The artist is also excited by the “transparency, boundaries and concrete nature of blockchain”, something he believes cannot be brought through a single person but through the collective nature of the technology.

The story of Tom Sachs revealing an alternative way of looking at the world of Web3 and NFTs serves to remind us that the terminology associated with blockchain is not what matters most, but the function and creativity it brings. Through its increasing opportunity and varied application, it may not long be before companies learn how to use blockchain technology without the negative associations of terms like “crypto” and “NFT”.

U.S. crypto exchanges have found themselves in a tussle with regulators in recent months, as the U.S. Securities and Exchange Commission (SEC) attempts to outlaw crypto from the inside. The Chamber of Digital Commerce, a nonprofit trade association that engages government officials on the use of crypto and blockchain, has responded with a legal filing to the U.S. District Court in Washington, D.C.

It all started with a case brought by the SEC against former Coinbase (COIN) employee Ishan Wahi, accusing him of insider trading. Last year, the U.S. Department of Justice (DOJ) charged Wahi with wire fraud for sharing information with his brother, Nikhil Wahi, and friend Sameer Ramani regarding which tokens would be listed on the exchange’s platform before they went live. The SEC swiftly followed suit with the same insider trading allegations.

Perianne Boring, the founder of the Chamber of Digital Commerce, said that what the SEC is doing is another example of ‘regulating by enforcement’ and does nothing to define “what sort of digital asset transactions it considers to be securities transactions.” According to Boring, nine of the supposedly 25 crypto assets the trio purchased and sold could be defined as securities and this could lead to further legal battles for other crypto companies that list the tokens.

That’s why Boring’s group filed an amicus brief— officially known as a “friend of the court” (amicus) brief— arguing that the SEC’s crackdown is an example of “backdoor rulemaking”. Binance, the largest crypto exchange in the world, and itself in the crosshairs of U.S. regulators, is among one of the contributors to the Chamber’s legal filing.

The filing states: “Under Supreme Court precedent, the agency’s authority to expand its regulatory writ to virtually all transactions touching upon a digital asset is a major question requiring clear Congressional authorization. But the SEC has never been granted such authority, and legislation pending before Congress makes very clear that it likely never will be.”

The filing further argues that the only regulatory guidance provided by the SEC has been in “the form of nonbinding speeches and statements that have been conflicting from administration to administration.”

Additionally, Wahi’s lawyers have since filed a motion to dismiss the SEC’s securities fraud charges, claiming the tokens listed were utility-based and not investment contracts. The Chamber supports this motion, stressing that it takes no sides on insider trading accusations and disagrees that secondary market trades of digital assets are securities transactions.

The Chamber of Digital Commerce isn’t the only organization to oppose the SEC in the Coinbase insider trading case. Earlier this month, the Blockchain Association also filed a similar brief, saying that the SEC has done more to confuse rather than clarify the application of U.S. securities laws.

The SEC case against the Coinbase employees could have serious consequences for the entire crypto industry if a court ruling embraces the agency’s position and endorses its tactics. That’s why it’s essential that organizations like the Chamber of Digital Commerce continue to fight for the crypto industry’s rights and freedoms by providing sound legal backing when needed.

The Solana blockchain is one of the layer 1 cryptocurrency ecosystems that is setting the industry standard for scalability and low latency. With its newfound ability to handle heavy transactional load during peak times, Solana could be opening up opportunities for savvy users to exploit fleeting arbitrage opportunities, or purchase desirable NFT’s before they’re gone.

Enter ‘Priority Fees’, a technology aimed at stabilizing the network against crippling congestion and data overload, particularly during peak usage times like the 2021 blockchain overload from trading bots. By offering Priority Fees, users can pay an additional fee to boost the speed of their transactions, effectively easing the transactional pressure at any given time.

Over the past few months, leading wallets, exchanges, and trading pools have adopted the feature, and various projects, developers and institutions have diligently monitored the average fee rate users are paying in to the network. The average transaction fee Solana users paid in a recent epoch was 0.000014641 SOL, though the maximum cost for priority fees was around $24,000.

A key advantage of the Fee Market system implemented by Solana developers is that it eliminates the need for one-size-fits-all spikes in fees, as is the case on Ethereum, where congestion in one part of the network has an adverse effect on the entire ecosystem. Having distinct fees for distinct transactions helps keep the trading fees affordable for users who are trading non-fungible tokens or participating in an arbitrage opportunity.

Projects such as the ‘Solana Compass’ offer an opportunity to gain insight into the current metrics of the Solana network and the incentives it offers to users, allowing them to make more informed investment decisions. Jonny Platt, CEO of Solana Compass notes that priority fees are driving more value into Solana tokens as they become increasingly scarce, and users of the blockchain are excited to see the results of the improvements made.

Priority Fees aren’t the only means of tackling network congestion. Core developers are still attempting to address the ‘spam’ issue with capable anti-spam plumbing, however they warn that until more features that make spamming uneconomical have been built, Solana’s transaction fees won’t be enough to curb the issue.

Despite its historical ties with the now-defunct FTX exchange, Solana has appeared to successfully bounce back from this minor setback. When compared to activity on the Ethereum network, Coinbase suggests that the SOL token is undervalued and should command a much higher market capitalization given that it is processing nearly 17 times the amount of daily transactions than Ethereum.

Navigating Solana’s massively busy network can be daunting, but with the implementation of Priority Fees, users no longer have to worry about time-sensitive transactions being delayed or stuck in queues. The upside to this potentially expensive fee system is that it offers users a significant degree of control during high-demand times, allowing them to quickly and conveniently jump to the front of the transactional queue, allowing them to exploit the arbitrage opportunities presented by the blockchain.