Crypto Weekly 09/05/2022 by Cryptoweekly

HIDDEN GEMS

BEGINNERS GUIDE

CRYPTO Page 22

EVERYONE`S BEEN SCAMMED Page 12

KRAKEN GOES TO UAE Page 17

Page 34

VIDEO OF THE WEEK

Page 37

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May 2022 | Volume 25

OVERNIGHT DOGECOIN MILLIONAIRE Page 28

CRYPTO`S SURVIVABILITY Page 32

MAKING BITCOIN GREEN Page 18

WHERE IS SATOSHI? Page 20

USING DARKWEB MARKETS Page 38

BITCOIN PIZZA DAY WHAT IS DOGECOIN? Page 24

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CONTENTS $2 cryptoweeklymag.com May 2022 | Volume 25

Mayweather Fight to be the First NFT Pay-Per-View in Dubai

Financial Regulator in Abu Dhabi Issues Discussion Paper on Decentralized Finance (DeFi)

Wikipedia Quits Accepting Crypto Donations

Yuga Labs of the Bored Ape Yacht Club, Launches World Record $300 Million Metaverse Property Sale

How Most of Us Have Been Scammed and How to Recognize Scams in Crypto

Fasset Raises Funds with Crypto Appeal in Islamic World

Kraken is Granted a License to Operate as a Regulated Cryptocurrency Exchange in the UAE

Are Trees Really the Key to Making Bitcoin Green?

Whatever Happened to Satoshi Nakamoto, Creator of Bitcoin?

Hidden Gems

What is Dogecoin?

BitBoy Crypto says Ethereum Will Pass Bitcoin in Market Cap

How Glauber Contessoto Became an Overnight Dogecoin Millionaire

Crypto's Ability to Survive Recent Global Economic Storms Proves Why it's Here to Stay

Begginners Guide

Video of the Week

Dark Web Drug Markets Sell Whatever Some People Want, but they May Likely Be Caught

The Story of Bitcoin Pizza Day

CRYPTOWEEKLY CEO | Nathan Hill

LETTER FROM

THE EDITOR

nathan@cryptoweeklymag.com Publisher | Colin Woolley colin@cryptoweeklymag.com Editor | Robert Stone

Welcome to Crypto Weekly

editor@cryptoweeklymag.com Editorial | Anthony Burton editorial@cryptoweeklymag.com Features | Thomas Stokes tom@cryptoweeklymag.com Advertising | Philip Greenwood philip@cryptoweeklymag.com Design | Dilin Divan dilin@cryptoweeklymag.com

Hello, and a warm welcome to the 25th issue of Crypto Weekly. Crypto Weekly is the brainchild of the guys at CMC, and I am Rob Stone, Editor, and I hope to bring you an informative read on everything crypto, every week of the year.

Crypto Weekly Magazine is published by the Crypto Marketing Company 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ

Another week has gone by and this is our twenty-fifth issue of Crypto Weekly. I have been mining the search engines for the best stories in the news, current happenings, and the ideas the world is excited about in the cryptosphere. For me, crypto is what brought me out of my shell. Life was always a struggle with highs and lows. I got most of my highs from living on the road in a constantly moving state, and my lows were when I had chosen to settle down and get a "JOB". I have done well with my various businesses online, yet, crypto is the best investment in my book. But you have to be savvy.. We got savvy down pat here at Crypto Weekly! It's an act of seeing that brings knowing. It's like, hey I'm awake! As usual, a lot of stuff has happened in the last week because the music never stops in the crypto sphere and the time keeps rolling on. I hope you all enjoy what we have brought together for you this week. Please let us know your thoughts, and if you would like to see something featured, please do get in touch.

editor@cryptoweeklymag.com

cryptoweeklymag

NEWS

Crypto Weekly

Mayweather Fight Fight to be the First NFT Pay-Per-View in Dubai

For Global Titans NFT ticket holders, the event will feature a one-time-only pay-per-view livestream on May 14, in addition to access to a collectible, crypto marketplace-tradable Global Titans NFT ticket. Furthermore, attendees will have access to exclusive video content, 3D collectibles, and official media files on the evening of the happening. As a result of NFT technology, buyers can enjoy additional features, such as future access, perks, and rewards - all of which can increase the value of ownership after the event. Watching the live event does not require a password or access code. By connecting a crypto wallet (such as MetaMask), NFT owners are automatically granted access. Global Titans and Rarible have released two Global Titans NFT tickets in advance of the event.

'NFT' (non-fungible token) sports event will be held at Burj al-Arab's helipad in Dubai on July 10, with a boxing bout between

Floyd 'Money' Mayweather and 'Dangerous' Don Moore, Global Titans Fight Series announced on Wednesday.

Technologies for the event were developed with the help of Web3 experts, Mintgate, ROQU Media, and Yakomoz Events.

Sand Vegas Casino Club NFTs Suspended by OpenSea

s a result of Texas and Alabama regulators ordering an end to trading on the OpenSea NFT marketplace, the sale of the "Gambling Apes" non-fungible tokens from the Sand Vegas Casino Club has been suspended. Investors in the Gambling Apes NFTs will be able to participate in the profits from the casino, according to Cyprus-based Sand Vegas Casino Club. On its discord channel, BlackyJefferson21, a community lead for the project, stated that the team is working with lawyers and has contacted Texas and Alabama in good faith to discuss future steps. According to another admin, in addition to complying with all laws and regulations, the team was previously not required to register, nor did any government agency contact them about how to register. The team forecasts proceeds of up to $24,480 from the "Gambler" NFTs and up to $81,000 for the higher-end "Golden Gambler" NFTs.Withers litigation and

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arbitrators’ partner Christopher LaVigne commented that the main problem with the 'Gambler' NFTs was that there was an explicit expectation of profit sharing, which appears to violate the SEC's Howey test. He said the SEC would consider an NFT marketplace to be an unlicensed exchange if it determines that it provides a platform

for trading securities.When CoinDesk requested a comment from OpenSea, the company did not respond. LooksRare lists the NFTs now, and they continue to trade, according to Etherscan data. The project's Twitter profile has been removed, and many of the listed team members haven’t tweeted for months.

May 2022 | Volume 25

NEWS Crypto Weekly

Financial Regulator in Abu Dhabi Issues Discussion Paper on Decentralized Finance (DeFi)

mirates News Agency (WAM) reported on Wednesday that the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) released a discussion paper on DeFi, a new method for delivering financial services electronically.

remains largely unregulated at this point, despite its potential to improve efficiency in financial services. A lack of regulation could raise risks for investors, financial institutions, and the financial system, as DeFi grows in size and users.

DeFi practitioners and other stakeholders will participate in the initiative to explore what opportunities may come from DeFi, associated risks, and possible future regulatory frameworks. Several DeFi banking protocols offer services analogous to traditional banking (TradFi). However, DeFi

This paper seeks to promote dialogue amongst the DeFi community, including financial institutions, digital asset businesses, and policy makers, regarding how DeFi might be regulated. The report sets forth the FSRA's views on the likely mediumterm direction of DeFi, high-level policies the

May 2022 | Volume 25

FSRA may adopt, and an exploration of how DeFi might be regulated. “The FSRA is committed to engaging a broad range of stakeholders, so we will also map the DeFi discussion paper into a knowledge graph within the FSRA's digital regulations beta pilot. This will enhance market participants' comprehension of how DeFi and TradFi are linked and their implications for regulatory guidance.” As Emmanuel Givanakis, CEO of the ADGM FSRA, stated, "DeFi is an emerging part of the global financial ecosystem that promises to deliver more efficient and customized financial services. However, to achieve this potential, DeFi risks must be identified and addressed appropriately. As an industry practitioner, we are happy to contribute our views on DeFi and its potential future direction to the community's ongoing discussion. Furthermore, we are looking forward to collaborating and starting a dialogue with the industry that will help us make informed policy choices to address these risks and realize the potential benefits of DeFi and any future regulatory developments."

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NEWS

Crypto Weekly

Wikipedia Quits Accepting Crypto Donations

ue to cryptocurrency's environmental impact and potential reputational damage to the open-source encyclopedia, Wikipedia has decided to stop accepting cryptocurrency donations. At the start of the year, Molly White, a Wikipedia editor for many years, proposed that the Wikimedia Foundation shut down its BitPay account. The proposal gained overwhelming support. The Wikimedia Foundation no longer accepts direct cryptocurrency donations. “We began accepting cryptocurrency directly in 2014 in response to requests from our volunteers and donors. Based on recent feedback from those communities, we are making this decision." By accepting crypto donations, Wikimedia is tacitly endorsing "extremely risky investments" and technology that is "inherently predatory" and, as she stated, "extremely damaging to the environment." The environmental impact of accepting crypto donations may not align with Wikimedia's sustainability commitments, and the foundation risks reputational damage as a result. Despite the Wikimedia Foundation's decision to shun crypto, only 0.08% of last

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year's revenue-or $130,100-went to that form. Over the last few years, only 347 donors have used this option, mostly giving Bitcoin. After receiving crypto donations, the Wikimedia Foundation immediately converted them to dollars. Volunteers and donors will continue to be supported by the organization, officials said. “I am happy the Wikimedia Foundation implemented the community request, and I am so proud of my community for coming to such an ethical decision after serious deliberation,” White told The Verge. "It is not worth cryptocurrency due problems."

helping legitimize to crypto's many

Other Companies have Stopped Accepting Cryptocurrency

In order to validate the latest block of transactions in a cryptocurrency's blockchain, "miners" compete to solve increasingly complex, but meaningless, mathematical problems, earning virtual coins in return. The process requires ever more computing power, which eats up energy at an alarming rate; Bitcoin's CO2 footprint is comparable to that of the coal-dependent Czech Republic. Those validating transactions just need to stake their Ether coins on the Ethereum network in order to switch to a more environmentally friendly "proof of stake" model. There are still no firm dates for when the second-biggest cryptocurrency will abandon the proof of work model, but this switch has been in the works for a long time.

Also in January, Mozilla Foundation-which produces the Firefox web browser-paused cryptocurrency donations due to their environmental impact not aligning with its climate objectives. For the same reason, Tesla stopped accepting Bitcoin payments nearly a year ago.

May 2022 | Volume 25

NEWS Crypto Weekly

Yuga Labs of the Bored Ape Yacht Club, Launches World Record $300 Million Metaverse Property Sale

n Saturday, the creator of the Bored Ape Yacht Club will start selling more than $300 million in Metaverse land plots. Yuga Labs will sell token "deeds" to virtual real estate in its new game, Otherside. Each deed costs 305 ApeCoins, about $6,000. With NFTs, buyers can choose from up to 55,000 plots of Metaverse land. According to the Financial Times, Yuga Labs and its partner, Animoca Brands, could make $335 million from this launch, making it the biggest NFT launch ever. A Dutch auction was initially planned for the digital land, but Yuga Labs said on Twitter on Thursday that the company would switch to a flat-fee payscale for the NFTs. In the past week, ApeCoin, the native currency of the APE ecosystem, rose by up to 50% in anticipation of Yuga Labs' Metaverse sale. The sale could also reveal

May 2022 | Volume 25

investor interest in the Metaverse, a fullscale three-dimensional virtual world that's considered part of Web3, the next iteration of the internet. The Metaverse Group made a $2.43 million purchase in Decentraland in November. Atari bought land in the SandBox Metaverse for $4.3 million a week later.

their peak earlier this month of almost $1 billion. However, sales of NFTs increased 85% last week from $246 million to $456 million.

Meanwhile, NFTs have become one of the most lucrative asset classes, ranging from $100 to millions of dollars. Artists, investors, and entrepreneurs have flocked to the nascent Web3 space as the NFT market volume has soared to $25 billion over the past year. A hawkish Federal Reserve, and Russia's attack on Ukraine, have caused digital assets to plummet since the beginning of the year. Based on data from NonFungible.com, NFT sales have fallen by more than half since

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FEATURE Crypto Weekly

How Most of Us Have Been

Scammed and How to

Recognize Scams in Crypto Robert Stone

was asked to do a story for Crypto Magazine about scams. At 61 years of age and haveing been around the world a bit. I have seen a lot, and I knew immediately that most of us had been scam victims at one time or another. Then I checked research on the subject and found my asscertation to be true. Out of ten people in the world, nine have recognized themselves as scam victims. When I looked at it and thought about it, I began to see that it has not been a one-time aberration but that I have constantly been in a state of being scammed from my earliest memories. Children grow up being scammed by other children, their parents, and the rest of society. It seems to be an integral part of being a living, breathing human being. The truth about those 9 out of ten who have been scammed is that some of those ten are also the scammers who most prevalently prey on the rest of us. Often we know them. Some are our bosses, our family members, or our friends.

May 2022 | Volume 25

This is all for you so we may avoid being scammed. We are constantly in danger of being scammed by strangers, friends, and loved ones. I go into how we may recognize when we are actively being scammed and how we may heal ourselves from the trauma. I also go into the most common types of Crypto Scams so you may recognize them or know how they work.

The World is Chock Full of Scammers There are scammers everywhere, and they target both young and old. Victims of these crimes may be educated or even just uninformed. Fraudsters prey on our sense of trust and connection. Responding to a phone call or opening an email can put us in danger. The psychological effects are damaging to an extreme for some of us, leading to helplessness and isolation. Everything we have struggled to build for years can be lost, our entire savings can

be wiped out, and our identities stolen. Initially, financial scams present themselves as seemingly legitimate deals offered by reputable companies. The agreements made by companies may sound fair, but they are often too good to be true, and once they gain our trust, we are more likely to accept something that is not what it seems. Many companies worldwide provide sales employees with specific training on how to gain the trust of older adults by focusing on social and emotional connections. Their best salespeople often become highly adept at it beyond reason. Scammers often pressure people into making uninformed decisions by making people feel informed by the process of what salesmen call "putting people together." These are the most common types of scams used by car salesmen, vacuum cleaner salesmen, or the "Tin Men" of old that sold you siding for your house. Other scammers involve threatening people with violence or

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FEATURE

Crypto Weekly

even arrest should they refuse to comply, such as a scammer requesting someone pay an overdue fine for missing something as simple as jury duty. One distressing though common scam involves targeting family connections, as when a caller claims to have kidnapped a loved one who is traveling, playing screams in the background and then giving the grandmother or grandfather accurate information using the grandchild's Instagram or Facebook posts, causing the grandmother or grandfather to wire money to the kidnapper to save their child.

hoping to resell them sometime later at a profit.

Seniors are often prime targets for scams, often because they have significant assets and because their loneliness may drive them to engage with opportunists. However, recent research shows that young adults can also fall victim to scams. The Federal Trade Commission found that people of all ages are susceptible, and that age, experience, and education level may play a role that is often incongruous. Some research shows those with higher levels of education are even more likely to be duped, perhaps because they put more trust in others'

Some Types of Crypto Scams

Cryptocurrency Scams

False Crypto Ventures

In today's investing world, cryptocurrency investments are one of the hottest topics. Investors purchase digital currencies like Bitcoin, Ethereum, and Dogecoin through cryptocurrency exchanges like Coinbase,

Fraudsters set up fake websites for cryptocurrency investment scams for investing in or mining cryptocurrency. Victims are lured to these sites by a variety of methods. They may pose as investors

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Cryptocurrencies, or 'cryptos,' are legitimate but risky investment opportunities. With this highly speculative investment, you could make - or lose - a lot of money quickly, but they also may carry a lot more risk than many scams. To get your cash, hackers use all sorts of tricks, from hacking your crypto account to creating completely fake coins. Sadly, crypto scams are becoming more common as crypto becomes more popular.

Because cryptocurrency is so alluring and confusing, it's ripe for scams. While the crypto market is booming, most Americans do not understand cryptocurrency. According to the FTC, this combination is ideal for scammers. Investing in cryptocurrencies is a hot topic, yet many people don't know how it works. Investors don't know what's realistic versus what's not, so scammers' claims sound believable. Cryptocurrency fraud comes in many forms.

who share tips online. Other times, they send victims letters offering help growing their crypto investments from "investment managers." Social media can also be used to attract potential victims. Some hackers attempt to gain the trust of celebrities or the friends of their targets by hacking their accounts. In some cases, scammers lure victims into phony long-distance relationships on dating sites, combining a crypto scam with an online romance scam. This has been happening a lot recently. The scam plays out the same way no matter how it begins. They portray themselves as legitimate websites by using fake testimonials and promising huge returns. Sometimes, there are multiple investment tiers, with higher returns available for more significant investments. They are convinced they have stumbled upon something good and put real money in, either dollars or crypto. Investors may be roped in for years on end. Fake reports are sent periodically to show victims how the "amount invested" produces high returns. The victim then discovers that the money they have earned is gone the first time they try to withdraw it. Crypto scam investments come in many forms. Scammers sometimes mimic the real cryptocurrency exchange sites instead of creating fake ones. According to the FTC,

May 2022 | Volume 25

FEATURE Crypto Weekly

many people have lost money on fraudulent Coinbase sites.

Hacking Scams Cryptocurrency is supposed to be a completely secure investment. A blockchain routes transactions through multiple computers and checks them against databases on each one. An attacker would have to hack most computers in the chain to hack the system. However, there is no perfect security. Hackers have repeatedly found ways to break into exchanges in the crypto market, mining operations, and digital wallets where people store their coins. Because the FDIC doesn't insure crypto accounts, they can't be recovered once the coins are gone. It's not easy to protect yourself against such an attack. When investing, you should take the essential precaution: don't put all your eggs in one basket. You can't lose your entire life savings overnight if you entrust your life savings to one exchange or account.

Hoax Job Offers You won't always be persuaded to invest in crypto by scammers. They will often offer you a job handling it instead. On employment

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websites, scammers post fake job offers seeking people who can mine crypto, sell it online, recruit investors, or help convert cash into Bitcoin. The next step depends on the scammer. Some scammers charge you a fee to apply for the job, then steal your money and sometimes your personal information. Alternatively, they put you to work converting cash to crypto, except they cancel the cash transfers. Scammers often target older adults with this classic returned check scam variant.

Initial Coin Offering Fraud A new cryptocurrency is often launched through an initial coin offering or ICO. You have the chance to get in on the ground floor of what may be the next big thing. Investing in ICOs is always risky because it's impossible to predict how the new coin will perform. ICOs are risky, but some are fraudulent as well. There are two distinct types of ICO scams. The first involves fake currencies. Some criminals create what appears to be a new altcoin and launch it with great zeal. When investors invest, the criminals simply take the money. this may also be called "rug pull."

The second type of ICO scam involves fraudsters spoofing a cryptocurrency with an actual currency launch. A phony website and social media account are created, and phishing emails are sent to lure investors with a fake "pre-sale" offer. It looks like an opportunity for investors to get in early on the newest crypto coin, but, in reality, they're sending their money directly to thieves. By researching ICOs carefully before investing, you can avoid these scams.

Detecting Cryptocurrency Scams Fraudsters do not only use new scams to steal your crypto. The scammers have also adapted old tricks like the government imposter scam. A scammer posing as an official from an agency such as the IRS or Social Security Administration tells you that you owe the government money. The Federal Trade Commission reports that many people have paid imposters posing as Social Security officials with bitcoin ATMs. Sometimes the scammers use blackmail as a means of extortion. You are instructed to pay them off in cryptocurrency if they have compromising information, photos, or videos of you. The only new element of these scams is that the fraudsters usually request cryptocurrency payments. They prefer this

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FEATURE Crypto Weekly

The new approaches may be unpredictably different, or they may come up with entirely new ones. Due to human nature, we will always have to deal with scammers. Being aware is the best way to protect yourself. Be familiar with all existing scam types. You will be able to see them when they appear in new forms. Additionally, take extra precautions when dealing with or investing in cryptocurrencies. Before investing in any investment, it's essential to research the company, the product, and the investment advisor. This is especially important since it is so difficult to recover lost funds when it comes to crypto investments. You should also make sure your crypto accounts are secure. Take all the precautions with other financial accounts, such as secure passwords and virus protection. Make sure your crypto is locked up in a secure wallet, and store multiple copies of the keys in places where you can access them easily, but thieves cannot.

A phony website and social media account are created, and phishing emails are sent to lure investors with a fake "pre-sale" offer. It looks like an opportunity for investors to get in early on the newest crypto coin, but, in reality, they're sending their money directly to thieves. By researching ICOs carefully before investing, you can avoid these scams.

payment method because it is untraceable, so it isn't very easy to recover. Like any other financial fraud, there are other warning signs of a crypto scam. According to the FTC, this in itself is a red flag. It is almost certainly a scam when someone insists on receiving money in Bitcoin or other cryptocurrencies - no matter what the transaction is for.

Lack of Detail: Scammers often gloss over the details of how their investment works. By contrast, legitimate investment advisors are usually eager to explain how they can help you earn money.

Promises of Huge Returns: Especially when it comes to significant investments, there is no such thing as a guaranteed return.

Free Money: Anyone who offers you money for nothing, whether in cash or cryptocurrency, is to be avoided.

Crypto scams will surely grow in popularity along with interest in crypto. New scams will likely come and go constantly. Scammers can adapt existing scams to make them cryptocentric, such as tax scams or utility scams.

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May 2022 | Volume 25

NEWS Crypto Weekly

Fasset Raises Funds with Crypto Appeal in Islamic World F

asset, a digital-asset gateway, plans a significant expansion into some areas of the Islamic world to promote cryptocurrency adoption in areas where it is still frowned upon. It has closed a $22 million Series A funding round led by Liberty City Ventures and Fatima Gobi Ventures, with family offices in the Middle East and South Asia participation. According to the company, the money will be used for product development and market expansion.

commodity futures. There seems to be a new narrative taking hold in some jurisdictions. Dubai and other places have been ‘wooing’ digital asset firms, which has been successful. The Bybit HQ just relocated from Singapore to Dubai. Fasset plans to roll out its services soon to Indonesia and Pakistan. Indonesia said it stands to be approved as a full-service crypto exchange next month, and Pakistan said it is ready to offer digital asset services. By the end of the year, the company plans to double its headcount.

According to Mohammad Raafi Hossain, the company's co-founder and chief executive officer and former adviser to the UAE Prime Minister's Office, "We worked with some of the most prominent and well-known Islamic finance jurists and thought leaders to educate the masses on how Muslims can interact with this emerging asset class in a Sharia-compliant manner."

Mohammad said in an email interview that multiple use cases had been brought to the fore, such as 'zakat' payments on crypto in Europe, which Islamic charities had championed. The trend will continue as adoption and awareness increase. Currently, not all countries in the Islamic world are as promising for crypto as others.

Several Islamic countries have expressed skepticism about cryptocurrencies. Despite the government's support, the National Ulema Council of Indonesia banned it and is pushing to open a cryptocurrency exchange by the end of the year, even as the government allows trading alongside

ANB Investments CEO Jaime Baeza said, “Different jurisdictions are adopting different approaches. On the other hand, Saudi Arabia, Qatar, and Kuwait have a more restrictive approach to the crypto industry."Digital assets have been a narrative of financial inclusion for years,

May 2022 | Volume 25

with advocates claiming they will lift people out of poverty, provide economic security, and enable them to participate in the global financial system. Countries such as Indonesia and Pakistan have millions of unbanked citizens. "Fasset is all about providing multifaceted digital asset use cases that connect home markets to their diaspora," Mohammad said. "Digital asset-driven remittance corridors can unlock a new wave of prosperity."

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NEWS

Crypto Weekly

Kraken is Granted a License to Operate as a Regulated Cryptocurrency Exchange in the UAE

raken has been awarded a Financial Services Permission (FSP) license by Abu Dhabi Global Market (ADGM) for the operation of an exchange platform in the United Arab Emirates (UAE).

(MENA) region. "Virtual asset multilateral trading facility" (MTF) and custodian Kraken met all approval requirements from the Financial Services Regulatory Authority (FSRA) of ADGM, according to the press release.

In the ADGM, financial firms can set up shop in the UAE capital and provide services to users throughout the region. A press release shared with CoinDesk said Kraken would serve the Middle East and North Africa

This is the first crypto exchange to receive a financial license from ADGM, and it plans to provide access to cryptocurrencies through regulated funding, trading, and custodial services in dirhams, a local currency. In

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Kraken, investors, traders, withdrawals, and deposits of Bitcoin and Ether will be processed directly in the local currency. Kraken joins a strong list of crypto exchanges opening up shop in the UAE, following stricter rules and regulations for crypto businesses everywhere. Earlier this year, Binance, Crypto.com, and Bybit set up shop in Dubai, as the emirate adopted a friendlier approach to crypto businesses.

May 2022 | Volume 25

FEATURE Crypto Weekly

Are Trees Really the Key to Making Bitcoin Green? I

n order to compensate for Bitcoin's environmental impact, Bitso, a crypto exchange based in Mexico City, has committed to purchasing carbon offsets for each Bitcoin transaction on its platform. Since carbon offset has garnered a sketchy reputation in recent years, it should also be viewed with a healthy dose of skepticism. According to Cambridge University estimates, Bitcoin's power consumption has risen many times over, topping that of Denmark and Chile recently. Since most of that energy (61% according to Cambridge) comes from burning fossil fuels, Bitso cannot prevent the resulting emissions from entering the air. Although it could, for example, prohibit tokens with high energy consumption. But that isn't likely to happen. Rather, Bitso is working with Moss.Earth, a Sao Paulo, Brazil-based carbon offset company, to indirectly mitigate the emissions of trading

May 2022 | Volume 25

Bitcoin and Ethereum-based tokens via its platform. By purchasing tokenized "credits from conservation projects in the Amazon Forest in Brazil," the exchange will do so. Moss will use the funds to fund projects preserving forests and supporting sustainable agriculture. Moss is certified by Vera, which sets standards for carbon credits. However, last year, a Guardian investigation found that Vera's methods were inadequate - Vera rejected the findings. A Bitso spokesperson said that each Bitcoin transaction generates 29.4kg of CO2 emissions, or 0.0294 MCO2 tokens, which Bitso will purchase at market price. There are a number of estimates that try to pin down the precise emissions associated with a single Bitcoin transaction. Some are far greater than those of Moss and Bitso, but that is beyond the scope of this story. As for MCO2: It's an ERC20 token, which has its own emissions, but Ethereum is more

efficient than Bitcoin, and its platform is also working toward a less thirsty proof-of-stake system. Despite its size, Bitso calls itself the largest platform of its kind in Latin America. However, as of the publication date of this article, CoinMarketCap ranked Bitso 67th on its list of top exchanges globally, revealing Bitso's limited reach. According to Moss CEO Luis Felipe Adaime, “other projects within the space should follow suit to offset their carbon footprint.” As large as the carbon credit industry is, and expected to increase in coming decades, such measures are frequently criticized for failing to achieve their stated goals. Greenpeace, for example, states that companies "need to stop carbon emissions from getting into the atmosphere in the first place." “Using cryptocurrency to offset emissions from financial activities is generally possible,”

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FEATURE Crypto Weekly

said Lena Klaaßen, a Zürcher researcher studying climate finance, agreements, and policies, over email. However, she cautioned that, “transparency, data quality, and offset selection are keys to understanding the effectiveness of projects like these.” According to Moss, the project "will save more than 342 thousand trees in the Amazon, helping to offset approximately 5,283 tons of carbon dioxide." By the end of March 2020, Moss has saved "more than 152 million trees in the Amazon through internationally certified and audited projects." Bitso, on the other hand, describes this as a "first step toward addressing the environmental impacts of the crypto industry." On its site, the company describes how it works with the "most reputable environmental projects." Nevertheless, trusting Moss involves a certain amount of faith in Vera and carbon credits as a whole. Skepticism surrounds carbon credits. Many environmental and advocacy groups have criticized politicians' and corporations' arboreal fixations, in part because we lack the space to plant as many trees as we would need to mitigate the soaring emissions that come from harvesting and burning fuel.

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May 2022 | Volume 25

FEATURE

Whatever Happened to

Satoshi Nakamoto,

Creator of Bitcoin? Eleven years ago, on April 26, Satoshi Nakamoto vanished. Robert Stone explores what we know.

itcoin.org was registered quietly online in August 2008. A cryptography mailing list passed around a paper entitled Bitcoin: A Peer-to-Peer Electronic Cash System two months later. In this paper, Satoshi Nakamoto makes his first appearance on the web, permanently linking the name "Satoshi Nakamoto" with Bitcoin. Thirty thousand lines of code were written on January 3, 2009, which marked the beginning of Bitcoin. An autonomous software program is responsible for mining Bitcoins through a lottery-based system in which people seeking Bitcoins participate. Over the next 20 years, 21 million coins will be released. About 187,000 Bitcoins have been mined to date, which is 90 percent of Bitcoin. It was my 50th Birthday the day Satoshi disappeared from the scene on April 26,

May 2022 | Volume 25

2011. Then on March 28, 2022, Bitcoin from a Satoshi-era wallet suddenly activated after 11 years. The 500 BTC stored in the account was worth less than $250 when it was mined in January 2011, but is now valued at $23.5 million at today’s exchange rates. The last time Satoshi Nakamoto posted on the Bitcointalk forum was on Dec 13, 2010. He would pop up in emails every now and then for the next few months, but for the most part, he was gone. He has not been heard from since that time. Nakamoto's supposed 1 million BTC holdings would put him/her/them on the Forbes top-20 rich list. But to this day, his wallets have remained untouched until a month ago. I first entered the blockchain revolution back in the spring of 2011 when I had bought my very first Bitcoin for about 15 U.S. dollars. I had little clue about what I was getting myself into at the time, but it has been a wild ride ever since. It’s been an interesting history and I have been privileged to take part. Because Satoshi Nakamoto, who introduced Bitcoin, is a pseudonymous figure, it adds

another level of intrigue to this situation. Some theorize that Satoshi Nakamoto is in reality a collection of individuals or that their pivotal work might have been intended as a final contribution to the world, especially since there have been no further updates about Satoshi since 2010. Among the theories that some have had, were that he was British, maybe C.I.A., a Yakuza mobster, or that he laundered money. Some have wondered if he was a woman. We know he had colleagues and that they, because of his secrecy, kept contingencies to continue the project if he ever proved crazy, and they watched for shifts in his sleep and communication patterns discussing it among themselves. They debated why he spoke and didn’t speak and sent him eager patches for Bitcoins’ code as it was being developed and signed with pleasure to try and become closer to him. Nakamoto emailed Bitcoin core developer Mike Hearn on April 23, 2011. "I have moved on to other things," Nakamoto wrote about the Bitcoin project. The future of Bitcoin

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was "in good hands." Nakamoto left behind a long list of writings, an explanation of Bitcoin's business model, and a premise for the cryptocurrency's workings. In 2010, Satoshi Nakamoto was still acknowledged for creating Bitcoin, and respected for growing the world's first decentralized currency into a $1 million market. But as frustration with his authority and availability built, his colleagues began teasing him behind his back on the Bitcointalk forum saying things such as "Satoshi the admin", "Satoshi the bottleneck", or "Satoshi the dictator." There was talk in the forums against Bitcoin's creator that had simmered since summer; the outcry soon grew louder. With Satoshi sightings becoming more frequent, users speculated as to when and why Satoshi might appear again.

joke, I'm closing down the project,’ then we will just create a fork in the code.” In fact, Nakamoto's identity and whereabouts are among the biggest mysteries in cryptocurrency. Despite the army of internet detectives that have examined the evidence, the community

is still no closer to establishing who Nakamoto is. However, a string of other theories also exists. Like Alex Jones' outlandish assertion that aliens invented and controlled Bitcoin. Robert Stone Editor

With winter on its way, a noticeable shift in forum discussions happened with a wave of posts doubting Satoshi's role in the project's operations. Satoshi, then still absent, was recognized as directing the development and was not the project's ultimate authority, but it was the users who ran the software. “A single human is just one neuron in open source. There are no masterminds,” forum member, ShadowOfHarbringer stated in Bitcoin Talk. “Suppose Satoshi decides one day, ‘OK guys, this Bitcoin thing was just a

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May 2022 | Volume 25

HIDDEN GEMS Crypto Weekly

PROJECT 1

estatex.eu

EstateX

EstateX enables the tokenization of real estate through new and highly advanced blockchain solutions. With this, anyone can get into real estate with as little as $100. Using these solutions, EstateX is able to trade real estate security tokens on their secondary market 24/7 without financial, or country, barriers. The advantage of fractional ownership is that it removes entry barriers and lowers entry and exit costs. Previously, non-accredited individuals could not participate in the real estate market due to restrictions and limitations. By using smart contracts, blockchain offers safe, secure, and transparent transactions that are not controlled by humans, preventing human error and wasting time. It is now possible to buy a fraction of a property and enjoy

PROJECT 2

catcoincrypto.me

perpetual returns, without the need to maintain the property. We all know that the old-fashioned system is in need of an update. And that update seems to be coming; EstateX offers good, realistic solutions to open up this market. Although it seems that the big players and banks don’t like to see this system change, it’s a matter of adapting or giving up for these parties. Blockchain, which is going to be as big as the rise of the Internet, will bring about this revolution. EstateX is acting smartly and is one of the first parties to offer a new way of investing. The only question that arises isn’t or but when will the big banks, real estate parties and investors join the queue behind EstateX

Catcoin

catcoin_bsc

CatCoin was launched on November 26, 2021 by Miaoshi Nekomoto (Satoshi Nakamoto's Cat) as a community-influenced project with big goals but little funding. Renounced by Miaoshi shortly after launch, CatCoin is now completely owned and run by its amazing community. Catcoin is a community-influenced project that connects the crypto world with social media. Catcoin is the first crypto-related project to offer a 24/7 live stream on Twitch.tv, allowing the community

May 2022 | Volume 25

estatexeu

estatexofficial

catcoinbsc

to share their thoughts on Catcoin at any time. Catcoin values a friendly and caring community. Anyone can be a part of the Catfamily. In addition, Catcoin's development is primarily focused on the Catnip project, which will be developed and released by mid-2022 at the latest and implemented into the Metaverse (Catverse) at the request of the community.

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What is Dogecoin? H

ere is a little background about Dogecoin to give you a better idea of what it truly is. Dogecoin is widely known as a meme rather than a serious cryptocurrency in the crypto world. Shiba Inu was a popular meme and inspired Dogecoin in 2013. To power Dogecoin, the creators turned to Litecoin technology. Jackson Palmer, a product manager at Adobe, created Dogecoin as a sarcastic joke. When Bill Marcus, a software engineer at IBM, saw Dogecoin's buzz, he developed software to accompany his product. Dogecoin jumped a staggering 300 percent after only two weeks of being launched, becoming a viral sensation. On the other hand, Dogecoin is an inflationary coin, so there is no finite number of them. The creators believe that the limitless nature of the number creates a more versatile and welcoming community for newcomers. Since there is no cap on supply, the price can never be driven up by scarcity. It has always been easy to feel the sense of community

May 2022 | Volume 25

through Dogecoin. Millions of their coins were donated to humanitarian projects and relief funds after reaching the pinnacle of their success. Due to several scandals and scams, the friendly community that began Dogecoin failed to continue. Dogecoin took a massive tumble in 2018, just like the rest of the crypto community. However, despite the controversy and downfall of cryptocurrency, a dedicated team of miners continues to mine for Dogecoin and believes in the mission. Dogecoin still ranks as a top 50 token.

on an even more wild rollercoaster. Thus, despite Musk's outsider rhetoric, Bitcoin and Dogecoin are part of the established order. However, the billionaire CEO has repeatedly warned that it's not a serious way of investing money. He told paparazzi back in May that Dogecoin was invented as a joke, and that's why he thought the most entertaining outcome was the most ironic.

Dogecoin is Elon Musk's favorite cryptocurrency, and he isn't a fan of Bitcoin. Musk likes the fact that Dogecoin is an oddball, unlike Ethereum or Bitcoin. Earlier this year, Musk's electric car company, Tesla, invested some $1.5 billion in the currency. Flip-flopping on his opinion of the token later this year sent Bitcoin soaring, ultimately imploding. He has also hugely impacted Dogecoin's price, szzending it

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FEATURE Crypto Weekly

BitBoy Crypto says

Ethereum Will Pass Bitcoin in Market Cap I

that isn't likely to happen. Rather, Bitso is working with Moss.Earth, a Sao Paulo, Brazil-based carbon offset company, to indirectly mitigate the emissions of trading Bitcoin and Ethereum-based tokens via its platform. By purchasing tokenized "credits from conservation projects in the Amazon Forest in Brazil," the exchange will do so.

According to Cambridge University estimates, Bitcoin's power consumption has risen many times over, topping that of Denmark and Chile recently. Since most of that energy (61% according to Cambridge) comes from burning fossil fuels, Bitso cannot prevent the resulting emissions from entering the air. Although it could, for example, prohibit tokens with high energy consumption. But

Moss will use the funds to fund projects preserving forests and supporting sustainable agriculture. Moss is certified by Vera, which sets standards for carbon credits. However, last year, a Guardian investigation found that Vera's methods were inadequate - Vera rejected the findings. A Bitso spokesperson said that each Bitcoin transaction generates 29.4kg of CO2 emissions, or 0.0294 MCO2

May 2022 | Volume 25

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token, which has its own emissions, but Ethereum is more efficient than Bitcoin, and its platform is also working toward a less thirsty proof-of-stake system. Despite its size, Bitso calls itself the largest platform of its kind in Latin America. However, as of the publication date of this article, CoinMarketCap ranked Bitso 67th on its list of top exchanges globally, revealing Bitso's limited reach. According to Moss CEO Luis Felipe Adaime, “other projects within the space should follow suit to offset their carbon footprint.” As large as the carbon credit industry is, and expected to increase in coming decades, such measures are frequently criticized for failing to achieve their stated goals. Greenpeace, for example, states that companies "need to stop carbon emissions from getting into the atmosphere in the first place." tokens, which Bitso will purchase at market price. There are a number of estimates that try to pin down the precise emissions associated with a single Bitcoin transaction. Some are far greater than those of Moss and Bitso, but that is beyond the scope of this story. As for MCO2: It's an ERC20

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“Using cryptocurrency to offset emissions from financial activities is generally possible,” said Lena Klaaßen, a Zürcher researcher studying climate finance, agreements, and policies, over email. However, she cautioned that,

“transparency, data quality, and offset selection are keys to understanding the effectiveness of projects like these.” According to Moss, the project "will save more than 342 thousand trees in the Amazon, helping to offset approximately 5,283 tons of carbon dioxide." By the end of March 2020, Moss has saved "more than 152 million trees in the Amazon through internationally certified and audited projects." Bitso, on the other hand, describes this as a "first step toward addressing the environmental impacts of the crypto industry." On its site, the company describes how it works with the "most reputable environmental projects." Nevertheless, trusting Moss involves a certain amount of faith in Vera and carbon credits as a whole. Skepticism surrounds carbon credits. Many environmental and advocacy groups have criticized politicians' and corporations' arboreal fixations, in part because we lack the space to plant as many trees as we would need to mitigate the soaring emissions that come from harvesting and burning fuel.

May 2022 | Volume 25

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How Glauber Contessoto Became an Overnight Dogecoin Millionaire W

hatever you call him, Glauber Contessoto's claim to fame is that he went all-in on a meme-based cryptocurrency called Dogecoin and became a millionaire in 69 days. When he was six years old, Glauber moved with his family to the U.S. His mother worked as a cleaning lady and his father as an opera singer. Glauber once said, "You would think that would spark my interest in music, right? It was actually the exact opposite, I didn't want to have anything to do with music, and I'm gonna tell you why it's tough to make money in music." Glauber

May 2022 | Volume 25

was hyper-aware of his family's money struggles, even at a young age. “When you're a little kid you know when you're poor," he said. Glauber later found music as an escape, especially hip-hop. Glauber said, "Hip-hop was the first time in my life that I felt like people understood me and I understood people. People that didn't have a lot growing up. People that kind of struggled. People that went from nothing to something." In 2015 he moved to Los Angeles, where he took an entry-level video editor job. His starting salary was $36,000,

but he took on every freelance project he could. In 2019 his salary had climbed to $60,000, and he started using all of his extra money to invest in companies like Tesla. He lived under a simple mantra: Pay your bills, buy food, invest. He found the limits of the stock market after purchasing about $20k worth of GameStop shares. Here is what he had to say about that. "I was like, this is amazing. It's the little guy versus the big guy. It's all these guys getting together to go against the big hedge funds, you know. What I mean is like, we're going to stick it to

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the man with all these billionaires, and so I joined in." Later, when GameStop crashed, he felt the entire system was rigged against retail investors like him. "As soon as that happened, I was like, alright, there's got to be another way to invest my money. I'm not going to stick around because if they could do this to GameStop, they could do this to another stock." Glauber first heard about Dogecoin from a subreddit called Wall Street Bets and Elon Musk. "So I started doing my research, and that's when I really like, dug deep, and I'm like, all right uh, what's Dogecoin, when did it start? How new of a coin is it? Is it going up? Is it Dipping? Like, did it ever go back to what it was back then?" Dogecoin is riskier than other cryptocurrencies like Bitcoin or Ethereum because there is no supply cap. Experts even call it a meme trade based on social media buzz. Dogecoin is now one of the biggest in the world. It did start initially as a joke back in 2013, but it is a big winner in crypto now.

more than you can afford to lose. You should do that if you can't afford to play with a bit of money, if you can withstand standing on the sidelines. But make sure you don't get sucked in too hard, as if you do, it might be challenging to get out, and you may lose a lot of money. On February 4, Elon tweeted about Dogecoin, which Glauber described as the tipping point, tweeting a picture of a rocket to the moon with one word, “Doge.” There is no further comment on that tweet. But then later, he tweeted, “Dogecoin is the people's crypto,” and then he tweeted, “No need to be a gigachad to own.” Finally, he said, “No highs, no lows, only Doge.” Now Elon Musk is backing the coin. Glauber said, "Let's go, you know what I'm saying? I'm like, this is exactly what needs to happen, like, it was a nobrainer when I went all in." On February 5, Dogecoin dipped back down to $0.045, and

“As soon as that happened, I was like, alright, there’s got to be another way to invest my money. I’m not going to stick around because if they could do this to GameStop, they could do this to another stock.” Glauber went all in and invested $250,000. Glauber said, "and that's when I sold all my stocks, max on my credit cards, call my mom, my aunt, my uncle, to let me borrow some money, and I go all-in on Dogecoin at 4.5 cents."

On January 27, Glauber spent 40 dollars on Dogecoin, which was priced at $0.01 at the time. Over the coming days, his investment grew to over$300. He said, "I'm like, I don't know what the hell this is, but the next time this jump happens, I will be all the way in. Like, I'm like, I'm not missing out on the second time this happens because it's going to happen again, and so that was kind of what sparked my whole 24/7 research on Dogecoin." Glauber studied Dogecoin's movement and believed it wouldn't dip below a certain point now. To be clear, he's no financial expert, but he made a point to tell anyone who would listen about what he was seeing in Dogecoin. "I made a post when it hit $0.02, then when it hit $0.03, and it stayed at three cents, I made another post. The last post I made was when I went all in at $0.04. Guys, it's that three cents, guys. You should really get in. I was like, hello, friends. This is probably the most incredible investment opportunity that I've ever seen in my life. If you grew up poor, if you ever grew up struggling, if you ever needed money for anything, this is probably your way out." Experts disagree however, that cryptocurrency is an extremely risky investment. They recommend investing no

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May 2022 | Volume 25

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Glauber s first move? He called his mom. He said, "I was like, hey mom are you up? She was like, what's up, and I was like, I'm a millionaire. I was like, your son just became a millionaire. I'm like, mom, everything's going to be okay now, like, everything is going to be all right."

On April 15 at 6 p.m, Glauber Contessoto became a crypto millionaire. He said, "I became a millionaire by spending all my money on Dogecoin. I'm expecting it to dip down to $300,000 at any moment. It's at

May 2022 | Volume 25

$700k, it's at $800k but it doesn't stop. It just keeps going! So, it hits a million, and as soon as I cross over a million, I'm looking on my phone, and I'm like, oh my God, today is the day that I become a millionaire! Like, it's today! It's, it's today!” Glauber's first move? He called his mom. He said, "I was like, hey mom are you up? She was like, what's up? And I was like, I'm a millionaire. I was like, your son just became a millionaire. I'm like, mom, everything's going to be okay now, like, everything is going to be alright." Glauber is well aware that going all-in on crypto, especially with borrowed money, is unsound financial advice, but he isn't second-guessing his decision. Glauber says he'll either cash out after one full year or once he hits 10 million dollars, whichever comes first. He stated, "As far as not cashing out and stuff, I still have a job. I'm not afraid of work; I'm not afraid of busting my ass again for another year. I look at it like I busted my ass, blood, sweat, and tears for 33 years of my life. What's one more year?" Robert Stone Editor: Crypto Weekly

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Crypto's Ability to Survive Recent Global Economic Storms Proves

Why it's Here to Stay V

enture capitalists worldwide have invested $30 billion in cryptocurrency and Web 3.0 startups throughout 2021, with companies like Tesla, Block, and MicroStrategy integrating Bitcoin into their balance sheets. As impressive as these numbers might seem, consider that Bitcoin, the world's first cryptocurrency, only existed since 2008 and has since accumulated a value of $41,000 per coin. While 2021 marked a boom period for Bitcoin, as decentralized finance and new financial technologies entered the ecosystem, providing new opportunities for investors and enterprises alike, the year also ended with brand-new challenges as global inflation rates hit investors hard.

May 2022 | Volume 25

Geopolitical tensions in Eastern Europe tested Bitcoin in a way that had never been seen before. Even in these early days, we can see signs of Bitcoin trending upward in response to Russia's invasion of Ukraine which indicates the asset is still viewed as a haven asset for investors amid a challenging economic environment.

Growth Prospects are Protected by Institutional Interest Bitcoin and the wider cryptocurrency landscape are of great interest to institutions. The number of institutions investing in crypto projects is growing, in addition to leading trading platforms like Coinbase. MicroStrategy is simply purchasing BTC with

the intention of holding it on its balance sheet as part of its business. Other developers have created tools that enable cryptocurrency to be integrated more broadly into the economy. As a result, Silvergate Capital operates a network that allows remittances of dollars and euros around the clock - a critical capability given how cryptocurrency markets are open 24/7. In order to facilitate this, Silvergate acquired stablecoin assets from Diem Association. Similarly, Block's financial services company is exploring developing digital alternatives to fiat currency for everyday use. To accommodate the emerging technology, Google Cloud launched its own blockchain

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division. There is a good possibility that Bitcoin and other cryptocurrencies will have much better staying power as more institutions adopt blockchain and cryptocurrency solutions. Thus, better institutional interest is likely to keep cryptocurrencies anchored despite their extreme volatility. Emerging use cases in the field of blockchain have also paved the way for NFTs and DeFi projects to gain prominence, broadening how cryptocurrencies can influence the world.

Bitcoin's Utility Amidst Geopolitical Tensions Perhaps, most significant of all is how Bitcoin has recently demonstrated that its technology is capable of becoming a mitigating force against factors that can cause economic downturns. To illustrate this, Maxim Manturov, head of investment advice at Freedom Finance Europe, notes how Bitcoin was swiftly made legal tender in Ukraine in the wake of the Russian invasion in February 2022: "Ukraine has legalised cryptocurrency. President of Ukraine Volodymyr Zelenskyy signed the law 'on virtual assets' adopted by the Verkhovna Rada of Ukraine on 17 February 2022," Manturov noted.

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"The National Commission on Securities and Stock Market (NSSM) and the National Bank of Ukraine will regulate the market of virtual assets. What provision does the adopted law on virtual assets make? Foreign and Ukrainian companies will be able to work officially with crypto-assets, open bank accounts, pay taxes, and provide their services to the people." In addition to establishing a channel to receive humanitarian aid in BTC, the move is also significant. As a result of Bitcoin's decentralized nature, it may be helpful in national emergencies throughout the world - especially when economic problems lead to the devaluation of fiat currencies due to hyperinflation.

The Road to the Mainstream The institutional faith in Bitcoin remains strong, even though the cryptocurrency is still 40% off its all-time high from November 2021 today. According to Deloitte, 88% of senior executives believe that blockchain technology will eventually become mainstream. It's important to remember that it wasn't until recently that Bitcoin's blockchain framework began to receive the recognition that it deserved. The rise of DeFi and NFTs has shown us what distributed

digital ledgers are capable of since then. Though it is impossible to predict precisely how cryptocurrency adoption will grow and whether another NFT-style development would act as a catalyst for more mainstream applications, the fact that Bitcoin is playing a significant role in helping to stabilize economies during a crisis suggests the asset has the potential to outperform its benchmarks during low points. Bitcoin already shows that its use cases can guarantee that crypto is here to stay, regardless of what happens to the global economic outlook in the future.

May 2022 | Volume 25

BEGINNERS GUIDE Crypto Weekly

How to get Started Understanding Crypto Investing

requent headlines proclaim that Bitcoin or some other new cryptocurrency is the gold standard in the new world of digital assets. Even though no one wants to miss out on a gold rush, Bitcoin isn't gold, while its rival protocols like Ethereum, Solana, or FTX Exchange Token aren't either. Nevertheless, just like gold mining, crypto mining requires energy to acquire something that may have a finite supply depending on the coin's inflation schedule.

The Most Important Points to Know When Getting Started Investing in Crypto

There are currently more than 12,000 cryptocurrencies that facilitate peer-topeer transfers of data and value. In a study conducted in 2022 regarding financial literacy, 56% of adults said they were beginners in crypto. If you believe in the future of cryptoassets but have no idea how to invest in them, what does this mean? You can make sense of this relatively new landscape if you have an advisor who is well versed in crypto.

May 2022 | Volume 25

Most advisors are hesitant to recommend crypto to clients since they aren't well-versed in it.

There is no such thing as an industry standard for certification in crypto investing as there is one for CFPs.

While crypto has a market cap in the trillions, many do not consider it an investment vehicle and instead, see it as more of a way to gamble.

The majority of adults in the U.S. lack a deep understanding of digital assets.

There are no guarantees regarding future performance. Investors and advisors should keep this in mind.

Is Buying Crypto Investing or Gambling? Futures trading has been asked that since 1710 when the Dojima Rice Exchange in Japan opened for business. There are many factors to consider when educating yourself about cryptocurrencies' technology. Who can give you advice on whether to invest?

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Crypto Weekly

you're working with most financial advisors, you'll have to get a little creative in your quest for crypto investments.

Here are Some Options for Getting in the Market Cryptocurrencies can be accessed in more ways than one, however, not all of them involve actually purchasing the digital assets directly. Rather than helping you own cryptocurrency now, some knowledgeable advisors prefer to take one of these indirect approaches. Don't expect your financial advisor to recommend buying, holding, or selling crypto. Most investment advisors who like alternative assets that move independently of the S&P 500 Index, are unlikely to recommend putting part of your portfolio into crypto. Here are two reasons wealth managers steer clear of crypto.

Adviser Skepticism is Rampant Due to Lack of Education In the first place, they see this rush as just another fad in the financial sphere that must play out before any guidance can be provided. Additionally, it is a space that does not have established regulatory bodies but does have some companies that hate all cryptocurrencies when they are sold to retail customers. Several individual investors are interested in cryptocurrencies because of their abundance and the game-like nature of obtaining them. However, please make no mistake: cryptocurrencies may be thrilling, but it is not a good idea to bet money on a new financial product without knowing how it works.

Your Financial Advisor Is Trying to Keep you Safe Even if he or she has in-depth knowledge of crypto, a digital currency advisor cannot advise on buying or selling cryptocurrencies. In this regard, they are not alone. Rather than sell transactions, an advisor's job is to manage their clients' money and hopes. To protect advisory clients from themselves, the advisor filters out the noise in the market and steers them away from cryptocurrency scams. As an example, crypto scammers stole $14 billion in 2021.

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Financial Advisors Find it Hard Recommending Cryptocurrency

Your financial advisor might choose one of the following options:

Financial advisors in Boston note that when clients inquire about investing in crypto, it's often because they've heard how much money they can make. Investing in cryptocurrencies is essentially gambling at the moment, according to the advisor, because they are so risky.

Bitcoin stocks or blockchain-related companies

Buying Bitcoin futures

Hedge funds focused on cryptocurrency

ETFs related to cryptocurrency mining

Focusing on the technology behind cryptocurrencies, the blockchain, is a better way to think about cryptocurrencies. This technology is a distributed ledger in a sense. The most well-known cryptocurrency is Bitcoin because it was the first feasible cryptocurrency and has the highest market capitalization. Initial blockchain technology was developed for payment processing, but it actually has a lot of truly solid potential applications. Data management, identity tokenization, secure audit trails, and data tokenization are all possibilities.

Financial Advisors Can Help, if they are Crypto Literate In an ideal world, your financial advisor would decide which cryptocurrencies to include in your portfolio and how much to invest. A vast majority of advisors in the real world do not even recognize them as an investable asset class. This prevents them from being discussed intelligently. Where can you get good advice if you consider investing in Bitcoin, Ethereum, or any other cryptocurrency? As a safe haven, you can always rely on the less-than-5% rule, which tells you not to put more than 5% of your portfolio into high-risk investments. If

As with betting on a horse race, you should only bet how much you can afford to lose on cryptocurrencies. Crypto-assets are not automatically gambling and are not investments because of their high level of risk. As with "real" assets, there are plenty of other investments that are equally risky. Yet, if cryptocurrencies replace conventional investments, advisors will need to catch up with those who were there first. A person or government cannot inflate cryptocurrencies due to the mathematical limitations built into them, reducing some risk.

Buying Cryptocurrencies You may have to do the heavy lifting and buy the cryptocurrency yourself, if you have spent time studying blockchain technology and wish to invest in it, and not just as another investment vehicle. To store your cryptocurrencies securely, you need a digital wallet, such as a Bitcoin Wallet. The best way to convert any cryptocurrency into cash is to find an exchange that supports trading the currency you want to purchase. For example, Coinbase is one of the most well-known crypto exchanges. Using fiat currency, you can buy and sell Bitcoin, Ethereum, and other crypto products on this exchange.

May 2022 | Volume 25

BEGINNERS GUIDE Crypto Weekly

The regulation was required by an executive order issued by President Biden in March 2022. Regulations are being drafted by both the Commodity Futures Trading Commission and the Securities and Exchange Commission. President Obama has also suggested that a new regulator may be needed.

Are Your Advisors Knowledgeable About Cryptocurrencies? Some digital exchanges do not support all cryptocurrencies and/or all fiat currencies (the technical term for dollars, euros, yen, and other currencies). You should begin with well-known companies like Coinbase, Kraken, and Gemini, and do your homework before investing anything. Even the best crypto exchanges are not without flaws. Analyze each exchange's history of account closures, outages, and ties with traditional banks. If you plan to use Bitcoin and other cryptocurrencies, you should learn the safest ways to store them. Authenticating your account on the exchange you have selected, either in its mobile app or through its website, is all it takes to buy or sell cryptocurrencies. Failing that, you may want to create your own cryptocurrency wallet to hold the currency rather than using one provided by the site.

How Do Crypto Advisors Work? Crypto advisors understand how cryptocurrency works and the best ways to invest in it. Those who stay abreast of cryptocurrency and blockchain developments may be registered as investment advisors, licensed representatives, or hold a credential such as Chartered Financial Analyst or Certified Financial Planner.

Why Would a Financial Advisor Recommend Cryptocurrency? Cryptocurrencies are ideal for investors who believe in the future of digital currencies and wish to protect their financial information online. Inflation and political manipulation are also less of a threat with cryptocurrencies. In most cases, mathematical algorithms are used to enforce a cap, preventing dilution. Furthermore, if you have surplus assets to spend, crypto is a great place to speculate.

Where Can I Find an Advisor Experienced in Crypto? Cryptocurrencies may appear on advisor websites, but there is always the possibility they are merely promoting it. Ask them some probing questions about blockchain

and Bitcoin and see if they are able to engage in an intelligent discussion. Some advisors seeking a deeper understanding of crypto may pursue the Certified Digital Asset Advisor designation.

Conclusion Blockchain technology is still in its infancy. Every day, new coins are added, and the once niche concept of blockchain is gaining realworld traction and government attention. As regulators gain more knowledge about how to tax crypto, new taxes are likely to be imposed. While it is becoming more and more important for advisors to understand the asset class, many are reluctant to do so and even hesitant to recommend it. This makes finding an advisor well-versed in crypto difficult, but not impossible.

Interested in Becoming a Crypto Advisor? Currently, there is no "official" way to become a Professional Cryptocurrency Advisor. Nevertheless, most states require businesses selling cryptocurrencies to obtain a license as money transmitters. Retailers of cryptocurrencies fit this definition, although not very comfortably, as state licensing and the Financial Crimes Enforcement Network (FinCEN) are in charge of combating fraud and money laundering.

May 2022 | Volume 25

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Find the Trade System that is Right For You James Sides is an experienced and well-respected trader who has been a friend of Crypto Weekly`s Editor for many years. He has a free-to-enter Facebook group if you would like to learn more from him called Crypto Common Sense.

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May 2022 | Volume 25

FEATURE Crypto Weekly

Dark Web Drug Markets Sell Whatever Some People Want, but they May Likely Be Caught

May 2022 | Volume 25

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FEATURE

Crypto Weekly

hese websites sell products. Products on these sites have customer reviews, just like on Amazon. "This was the harshest tar I've ever had. I won't use this vendor again." Another said, "Nice big rocks." A third said, "F#cking fire.'' And another said, "Quality BTH, very strong, excellent for smoking and shooting." The term BTH is short for black tar heroin. These are all reviews of drugs that are openly, in plain sight, sold on illicit marketplaces on the dark web. There are drugs with names like "Connoisseur Colombian Cocaine (off the brick) BEST IN THE U.S." and "Crystal Meth 99% (FREE SHIPPING)." The vendors have bios and profiles on their web pages. "As a PhD student, I'm passionate about chemistry!" said one vendor. "Anything about chemistry captures my heart. I am passionate about chemistry in the way I make and sell drugs. That is my work, of course.” As one happy customer gushed, "Incredible stealth, great communication." Vendors are rated on the usual metrics you see on Amazon - the quality of the product, the speed of shipping. Credit cards are not accepted. Venmo is not accepted. Cash is not accepted. The drugs are paid with crypto.

Prior to moving forward, some critical perspective: Illicit activity accounts for a tiny portion of total crypto activity. Recent statistics from Chainalysis show the number of transactions involving illicit addresses was just 0.15% in 2021, a decrease from 0.6% in 2020 and 3.4% in 2019. That's consistent with other findings. Jess Symington, research lead at Elliptic, told me in an email that Bitcoin transactions linked to illicit activity are less than 1% of total transactions. "With the growing acceptance of crypto-assets by the mainstream, we have seen a decline in the overall proportion of illicit activity." In addition, cryptocurrency is generally easier to trace than cash (more on that in a moment), so law enforcement is more likely to catch people using Bitcoin for illicit purposes. One of the oldest misconceptions about crypto is that it is for criminals. This has long been disproved. FUD. To that end, CoinDesk's "Payments Week" explores how cryptocurrencies are actually being used to pay for goods and services. Crypto can also be leveraged to improve international remittances, among other features. People were able to send aid to Ukraine with breathtaking speed using

Bitcoin; this almost certainly saved lives. Cryptocurrency holds more value than illicit activity. We are not moralizing or clutching at pearls here. Considering how cryptocurrency is actually being used as a form of payment today, ignoring cryptocurrency's role in illicit activity would be intellectually dishonest. Ok. Having said that, what are people buying on these dark markets with their cryptocurrency? Basically, drugs. Christin said the majority of illicit drugs are cannabis, cocaine, and MDMA. He called these drugs "the big three" and estimated they account for 50% to 75% of the illicit trade, depending on market conditions. This is not a new trend. Over the last decade, the high percentage of drugs has remained stable. Drugs are the biggest category on marketplaces like the Silk Road, says Kim Grauer, co-author of the Chainanalysis crime report. "We see anything and everything available," she said. Other items they see at the shelters include stolen credit cards, stolen passports, skinny pills, Ivermectin, grenade launchers, and even COVID vials. There are fewer weapons on the market than you may think. "That's a blip," Christin said.

A privacy coin, Monero, is used as the payment method on this dark market. The early days of cryptocurrency adoption can be compared to this corner of the dark web. "Silk Road: The Shocking True Story Of The World's Most Notorious Online Drug Market, A Novel" author Eileen Ormsby said, "Many purists refuse to admit that such a site was the first major use case for Bitcoin." This use case has never really gone away to some extent. "The Silk Roadlike ecosystems are still quite dynamic," explains Nicolas Christin, an associate professor at Carnegie Mellon University, who has been studying dark web markets since 2011 and wrote the original study about Silk Road economic activity. Despite the closure of Hydra - and the inevitable emergence of new sites to replace it - Christin estimates that these markets represent between half a billion and a billion dollars a year. "It's happened five or six times now," Christin said. "It's starting to sound a bit like the Fast & Furious movies. You think something new will happen, but it has not changed yet."

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"It's almost nothing. Why? The U.S. market has a wide selection of these weapons, so purchasing them doesn't require a dark web transaction." It is true that gun demand might be higher in countries with stricter gun laws (such as Europe or Australia), but there are also practical limitations. MDMA is very easy to mail, but a bazooka is really hard. Hacked customer data is easier to send or receive. Dark markets for hacked data are on the rise, according to Ormsby. Fullz are what are known as "real goodies," as in the "full information" on a customer. Fullz are for sale or can be bought. One hacker says, "I have all of the customer names, phone numbers, and Social Security numbers of Big Company X. I'm willing to sell one million of these to anyone who wants them," The

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buyers can then use these Fullz to create new bank accounts or false identities. There is also darker stuff out there. "Hit men sites are still prevalent," she said, adding that these are typically scams. “Here's what happens: You hire a hitman to kill someone, but he takes your crypto and leaves. What recourse does that person have?" asked Ormsby. "The hitmen have no incentive to commit a murder," Ormsby concluded. "The fake hit men however make a lot of money." Ormsby, Grauer, and Christin all agreed the truly despicable dark stuff is largely absent from dark web marketplaces, such as sex trafficking and anything involving children. "There are certain things they won't touch because it makes them an immediate target

of law enforcement," said Grauer. "Sexual abuse materials are definitely on that list." "For anything that would be a red flag, many of these marketplaces clearly indicate that they don't deal with it." Ormsby also found this. “It is impossible to find child-abuse markets on a dark-net market,” she said. As for porn? "They wouldn't want perverted stuff on their site. Mainly because they would turn away customers in droves.” For most people who buy drugs online, that's their sole crime. They're buying drugs online for themselves. Ormsby says that dark-net markets sometimes sell access to premium porn sites. “That's how they get the stuff that you'd normally have to pay for." Given the risk of tracing and tracking and being caught, one might wonder why anyone would buy drugs online. According to Ormsby, people buy drugs online for the same reasons we buy legal goods online - convenience and trust. Drug vendors have star ratings, just like on Amazon. "They depend on repeat customers," Ormsby says. "They don't want to sell bad drugs and have that customer never come back and tell all their friends about it. It's important they live up to their reputation." As for how vendors can broadcast their "reputation" without fear of exposure? "Tor is a complete privacy browser," Ormsby said, referring to the anonymous browser used to access the dark markets. There is a Tor

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website for whistleblowers and investigative journalists. The CIA has a Tor website for people to report tips on possible terrorist attacks anonymously. Ormsby recommended users download Tor. It's free and easy. Then you're on the dark web. Some black markets accept Bitcoin, and some use privacy coins like Monero. Some buyers will pay with Bitcoin and then have its vendor convert the Bitcoin to a privacy coin. However, this is difficult to scale. Vendors may run into liquidity problems. In a hack for $600 million, Monero isn't as liquid as many other cryptocurrencies. The experts still don't know if ChainAnalysis is currently working on Monero-related R&D, but Grauer isn't permitted to share any details. "It's a complex ecosystem that we're trying to figure out," said Grauer. “It's going down every day," Ormsby said. Grauer, who examines the role of cryptocurrency in crime, sees it as "getting safer over time." This is widely accepted. The bulk of cryptocurrency transactions are also related to investment, speculation, and financial trading, which is rarely discussed. Crypto payments for goods and services are a relatively small portion of the crypto pie. In Christin's opinion, the vast majority of transactions involve cryptocurrency derivatives, Binance futures, and other similar products. "Approximately $50 billion to $150 billion a day." What does this mean? Illicit activity accounts for only a small portion of the crypto market. However, crypto is often used for financial speculation. Consider a different question: When we only look at the scope of cryptocurrency payments for goods

or services, what portion is used for illicit purposes? "That's such a great question," Grauer said. There is no solid answer to this problem, not even with ChainAnalysis' sophisticated tools. "We're having trouble figuring it out," explains Grauer, since it's not obvious whether a transaction was to pay a merchant or to purchase Bitcoins. Chainanalysis can thus track illegal activity with confidence but have only a vague understanding of legal payments. "Crime data is just easier to collect," Grauer said. "You don't have to guess what was done

with the funds if you identify a ransomware wallet." It's simply easier to track dark payments than regular payments. To reiterate another point made earlier, using cryptocurrency for illicit activity, in general, makes you more likely to be caught. The irony of crypto and crime cannot be overstated. Bitcoin was initially seen as the perfect way to do naughty things online in the early days. Then they discovered they could be traced and caught. Not just some get caught but everyone who ever used Bitcoin may be caught if the government decides to catch them. Former deputy director and acting director of the CIA, Michael Morell, can attest to that. A sweeping review of the role crypto plays in illicit activities was conducted by Morell. During his report, he noted that one expert proclaimed, "If all criminals used blockchain, we could eliminate illicit activity." CIA veteran Morrell concluded that, "Based on our research, I have come to believe that if there were one financial ecosystem bad actors could use that would maximize law enforcement chances of identifying them and their illicit activities, it would be the blockchain."

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FEATURE Crypto Weekly

The Story of Bitcoin Pizza Day B

itcoin Pizza Day was the spring of 2010. The majority of miners these days use their computer's CPU to mine Bitcoins. Laszlo Hanyecz, a programmer in his late twenties from Jacksonville, Florida, first learned about Bitcoin when it was just over a year old, and he wanted to try his hand at mining some Bitcoins. Laszlo's graphics cards actually performed better than he had expected, and it worked like a charm. Benefiting from the performance boost, Laszlo soon generated thousands of coins a day, which was a significant chunk of all newly mined Bitcoin in the world. This led Laszlo to the logical next question: What to do with the coins at this time in Bitcoin's history? Bitcoin was nearly worthless and trading for fractions of a cent and often even given away for free. Bitcoin was essentially play money if it could be considered money at all. No one had actually bought or sold anything with it as far as was known. Laszlo was about to change this. On May 11th he took to the Bitcoin talk forum and started the thread titled "Pizza for Bitcoins." He wrote: “I'll pay 10,000 Bitcoins for a couple of pizzas, like maybe two large ones, so I have some left over for the next day.” After a few days of no takers, Lazlo showed up in the thread with an announcement that would go down in Bitcoin history, "I just wanted to report that I successfully traded 10,000 Bitcoins for pizza."

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18-year-old Jeremy Sturdivant, from Britain, took up Laszlo's offer and ordered two pizzas online for about 30 bucks. He paid with his credit card and delivered it to law school in Jacksonville. He received Laszlo's Bitcoins directly in his Bitcoin wallet. Laszlo and Jeremy's deal, the first-ever recorded Bitcoin purchase, was a significant milestone for Bitcoin. Little did Laszlo know, Bitcoin itself was just about to go on a wild ride. By today's Bitcoin prices, the pizzas cost Laszlo roughly 100 million dollars, but this has never phased him. He once said, "I wanted to do the pizza thing because it was free pizza." He later told VidCon magazine. "I mean, I coded this thing and mined the Bitcoin, and I felt like I

was winning the internet that day I got pizza for contributing to an open-source project. Usually, hobbies are a time and money sink. In this case, my hobby bought me dinner and a place in Bitcoin history." Eleven years down the road, milestone pizza purchases are commemorated each year with a Bitcoin holiday celebrated by a global community of eccentric digital currency owners just following in Laszlo’s footsteps by ordering pizza with Bitcoin on that same day. May 22nd is Bitcoin Pizza Day. By Robert Stone Editor

HAPPY Bitcoin Pizza

DAY Everyone