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JAPAN`S STABLECOIN BILL Page 07
DIGITIZING CARBON CREDITS Page 08
BINANCE LAUNDERS 2 BILLION Page 09
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MARKETS LOSE 2 TRILLION Page 21
NFT`S CRASH Page 22
IMF INFLUENCE ON COUNTRIES Page 24
PAYPAL WALLET OPTIONS Page 11
CRYPTO CRASH TRIGGERS Page 28
NEW YORK MINING BAN Page 12
CRYPTO INDUSTRY OVERSIGHT Page 16
BLOCKCHAIN GAMING Page 17
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CONTENTS $2 cryptoweeklymag.com June 2022 | Volume 31
18
12
28
07
Stablecoin Bill in Japan Puts Investors First
08
Adam Neumann Wants to Digitise Carbon Credits
09
Binance Launders over 2 Billion in Criminal Proceeds
10
Celsius Network After 50% Nosedive & Faces Likely Bankruptcy and Purchase Offer
11
PayPal Allows Users to Move Crypto to Other Exchanges & Wallets
12
New York See's Green With Crypto Mining Ban
16
U.S. Senators Propose Comprehensive Oversight of Crypto Industry
17
Partnership of BoomLand and Polygon Studios Takes Blockchain Gaming to the Next Level
18
Crypto Markets Have Lost $2 TRILLION in Value
20
Crypto - What You Need to Understand if You're an American
22
NFTs Thrown Over a Cliff as Markets Tumble
24
Wealthy Countries Influence Nations Adopting Crypto Through the International Monetary Fund
28
Cybercrime, Stock Markets, & NFT Scams Helped Trigger the Crypto Crash
30
Crypto Industry Layoffs for Some Companies While Others are Hiring Thousands
37
Bitcoin Selloff is "Not So Terrible," says Binance Executive
38
Crypto is Much More Useful than the Financial System by Itself
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 31st 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 thirty-first 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. At times it is overwhelming, all the work, curating, and writing, that goes into the next issues. But, I am also caught up in the excitement of the crypto revolution and everything I come across that I want to share with all of you on these pages. The hours that my work entails pass so quickly that I don’t have time to feel daunted by it. I can only wish they could pass more slowly so I might be able to make the next edition even richer. 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 editor@cryptoweeklymag.com
Follow Us Stay Connected Robert Stone Editor
cryptoweeklymag
NEWS
7
Crypto Weekly
Stablecoin Bill in Japan Puts Investors First I
n the wake of TerraUSD's collapse last month, stablecoins were thrust into the spotlight globally, and Japan was the first major economy to take action and regulate them. As part of the new law, they must be linked to the yen or another legal tender, and holders have the right to redeem them at face value. According to the legal definition, stablecoins can only be issued by licensed banks, registered money transfer agents, and trust
companies. The legislation does not mention asset-backed stablecoins from overseas issuers like Tether or their algorithmic counterparts. Crypto exchanges in Japan don't list stablecoins. Many governments are racing to establish guardrails for stablecoins. These tokens are valued at about $161 billion, led by Tether, Circle's USD Coin, and Binance's USD. Japan's Financial Services Agency has announced that stablecoin issuers will soon be subject to regulations. After a year, the new legal framework will
take effect. As soon as the legal framework is in place, Mitsubishi UFJ Trust and Banking Corp. plans to issue its own stablecoin, called Progmat Coin. In a statement, Mitsubishi UFJ Financial Group Inc. said that the token will be backed entirely by yen and placed in a trust account and that redemption at its face value will be guaranteed. When the mix of algorithms and trader incentives meant to safeguard the link failed to work effectively, TerraUSD, or UST, began losing its intended 1-to-1 peg to the US dollar in early May. UST and Luna, the sister token of the Terra blockchain being backed by UST, were effectively devalued by the crash across all cryptocurrencies. Other stablecoins also suffered from the implosion, with Tether losing its dollar peg at one point. Terra community members voted in late May to establish a new blockchain without including the UST token. Since the event, Tether circulation has dropped by more than $20 billion. Stablecoins are still running on the old Terra Classic blockchain and have lost almost all their value.
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June 2022 | Volume 31
8
NEWS Crypto Weekly
Adam Neumann Wants to Digitise Carbon Credits Let's break it down.
W
eWork's cofounder orchestrates the emergence of cryptocurrency trading for carbon trading. Adam Neumann, who was ousted as CEO three years ago, founded Flowcarbon, which is putting carbon credits on the Blockchain. The company developed its flagship product, the Goddess Nature Token (GNT), and received $32 million in venture funding from Silicon Valley venture firm Andreessen Horowitz. Tokens will allow
June 2022 | Volume 31
businesses and individuals to trade permits on the Blockchain in a decentralized system, which will make the opaque and controversial process more transparent. Each token will be backed by a real-life carbon credit. After falling from grace, Neumann's new venture marks a pivotal moment in his entrepreneurial career as well as the emergence of another highprofile tech entrepreneur taking a plunge into the booming Web3 industry.
When businesses engage in carbon trading, also referred to as the voluntary carbon market, they buy and sell a limited number of government-issued permits that they can "cash in" when they emit carbon. By limiting the amount of carbon emitted by businesses, a scarcity would be created. Companies can sell carbon credits to other companies if they don't use all their credits. Carbon credit purchases may be required in some countries if they emit too much carbon. The website states that Neumann believes that this process is flawed, built on an "opaque and fractured market infrastructure," with credit that has little accessibility and brokers charging sky-high fees. Flowcarbon and GNTs come into play here. One of four major carbon credit registries issues Flowcarbon's tokens, according to the company's spokesperson. Due to its inherent transparency, the Blockchain appears to be an ideal environment for trading carbon credits according to Flowcarbon and its backers. Some have long argued that the carbon trading market is fundamentally flawed, which calls into question Neumann's goal of simply putting them within reach of businesses. Similarly, some people in the carbon trading space are not huge fans of integrating with the crypto world - Verra, one of the largest carbon crediting programs in the world, said last week it would not allow its credits to be used to back crypto tokens. Climate advocacy groups have condemned aspects of crypto as environmentally harmful due to the huge amount of energy the transactions consume.Web3, however, has been noted for being a good place for the startup, allowing it to fund projects that could reduce carbon emissions more easily. In addition, Neumann oversaw one of the most infamous IPO implosions of 2019, when WeWork was getting ready to go public. The regulatory filings for that offering provided a glimpse into the company's financial troubles and turmoil. Neumann was eventually sacked as CEO after the deal collapsed.
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NEWS
9
Crypto Weekly
Binance Launders over 2 Billion in Criminal Proceeds Robert Stone reports
C
ryptocurrency exchange Binance processed billions of dollars worth of illicit transactions. The processing totals were calculated using old data, according to a Binance spokesperson. An article in Reuters stated that drug sales, hacks, and investment fraud transactions totaling over $2 billion passed through the exchange without the company knowing about it over a period of only a couple of years. A Binance representative said, "Binance has some of the tightest anti-money laundering policies in the fintech industry and plays a crucial role in helping law enforcement combat crime online. Our pioneering work to fight money laundering continues to receive overwhelming support from law enforcement worldwide." Yet Reuters says Binance's security holes and anti-money laundering shortcomings are anything but secure. Reuters has provided evidence that the Lazarus Group, a hacker group with links to North Korea, in September 2020 attacked the Slovakian exchange Etherbase stealing over 5 million dollars. The hacker then used the encrypted emails to open at least two dozen accounts and disperse the funds. The Lazarus Group is also suspected of hacking Axie Infinity's Ronin bridge, causing $622 million in damage in March 2022, the most devastating attack in cryptocurrency history. Binance then participated in the project's $150 million funding round, announcing a $5 million freeze aimed at punishing those responsible.
Former floor employees interviewed by Reuters have revealed a chaotic and lax KYC process and a "shady" relationship with the Russian government, which has been financially isolated since the start of the conflict in Ukraine. Following the Reuters article, Binance issued a statement debunking the information. The exchange asserts that it takes anti-money laundering measures and works with global authorities on a
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regular basis to track down criminals. Binance processes hundreds of billions of cryptocurrency transactions for 120 million users worldwide in a month. As part of its expansion into more traditional markets, Binance has invested $200 million in Forbes and contributed $500 million to Elon Musk's bid for Twitter. Reuters reports it examined specific cryptos that passed through wallets before hitting Binance's exchange, along with Crystal Blockchain data going back to 2017.
June 2022 | Volume 31
10
NEWS Crypto Weekly
Celsius Network After 50% Nosedive & Faces Likely Bankruptcy and Purchase Offer Robert Stone
D
ue to "extreme market conditions," Celsius Network has paused all withdrawals, inter-account transfers, and swaps, the company announced. The move is intended to stabilize the liquidity of assets and give users a better chance of meeting withdrawal obligations. Overall, the crypto market has struggled. The company's CEL token was once worth $7 nearly a year ago but fell to $3 by early April and is now only worth 21 cents. In just a few days after claiming that it had the reserves and Ethereum to meet obligations, CEL's value plummeted more than half. A date for lifting the freeze was not known. Although the company promised that normal operations would be restored "as quickly as possible," it warned that the process would take "time." The company announced that it would suspend various transactions, including withdrawals of funds, without explaining what had caused such a drastic decision. However, the price might be paid by customers. Celsius does not have FDIC insurance, unlike a conventional bank. The roughly 1.7 million people who use the lender might not have many chances to recover their lost funds if it fails. There are some attempts to regulate crypto assets, but they may arrive too late for Celsius' clients.
laundering, and sexual assault charges. Regulatory agencies in Alabama, New Jersey, New York, and Texas have also examined Celsius' activities, and New Jersey issued a cease-and-desist order last September. In short, Celsius' business has long been viewed as unsustainable - the activity pause doesn't help. "At Celsius, we always act in the interest of the community. In line with our risk management framework, we have activated a clause in our Terms of Use that allows this process." Celsius didn't elaborate on the "extreme economic circumstances."
Nexo Shows Interest in Celsius Investors were left to speculate without knowing why Celsius made these decisions. Nexo AG, a crypto firm, recently sent Celsius a letter offering to buy "all of Celsius Network LLC and Celsius Lending LLC." "Following what appears to be the insolvency of @ CelsiusNetwork, Nexo has extended a formal offer to acquire qualifying assets of @CelsiusNetwork," Nexo said on Twitter, with a link to its letter to Celsius.
“Consequently, Nexo maintains financial stability regardless of market conditions. As a result, it has strong liquidity and equity positions to help soften the effects of Celsius' distressed state," said the letter of intent. According to Nexo, it "could easily acquire from Celsius all or part of Celsius' outstanding collateralized loan receivables secured by their corresponding blockchain collateral, subject to Nexo's risk management and collateral requirements." "Our focus is to protect and preserve assets, so we can meet our obligations to customers," Celsius Network said. The ultimate objective is to stabilize liquidity and restore withdrawals, swaps, and transfers across accounts as soon as possible. This process will take time, and there could be delays." "We believe that pausing withdrawals, swaps, and transfers between accounts are the most responsible action we can take for the community," Celsius said. However, the company does not provide a timetable for when withdrawals will resume.
According to a memo published in Medium, "Due to extreme market conditions, Celsius is halting all withdrawals, swaps, and transfers between accounts. This action aims to better position Celsius to honor its withdrawal commitments in the future." Celsius has drawn the ire of critics due to its unusually high yields (currently over 18.6% for deposits) and its link to Terra, the failed stablecoin. In November, the company's CFO was arrested on fraud, money
June 2022 | Volume 31
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NEWS
11
Crypto Weekly
PayPal Allows Users to Move Crypto to Other Exchanges & Wallets T
hose holding cryptocurrencies can now transfer their assets off PayPal's platform to other wallets and exchanges, a feature most frequently requested since the fintech giant's crypto buy, sell, and hold service launched in October 2020. Similarly, other large fintech players are moving away from regimented custodial platforms towards more open systems, such as Robinhood, a popular trading app that is rolling out a new crypto wallet focused on decentralized finance (DeFi) and nonfungible tokens (NFTs). Jose Fernandez da Ponte, senior vice president of blockchain, crypto, and digital currencies at PayPal, said plans were in the works to allow users to move their coins to third-party wallets. "We are definitely responding to demand from users, that is one aspect," said da Ponte in an interview this week. "We've also been very vocal from the beginning that we're in this because we are a payments and commerce company, and we think that our role in the ecosystem is about increasing access." The ability to move Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) from PayPal's crypto
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platform to external wallets is available from Tuesday to select U.S. users (not in Hawaii) and rolling out to all eligible U.S. customers in the coming weeks, according to a blog post. A bull run in crypto markets began as soon as PayPal announced its move into digital assets. According to Walter Hessert, head of strategy at Paxos, an infrastructure provider to PayPal, PayPal has become the world's largest blockchain-enabled consumer digital wallet by enabling its customers to send and receive crypto. In a statement, he said the platform was "a monumental step in the mainstream adoption of digital assets and Web3."
PayPal Down the Rabbit Hole Asked about predictions for increased use of the platform in light of the new transfer functionality, "the early signs in terms of demand are very promising," da Ponte said. "I don't know if it's going to be about the absolute number of users, or it's going to be more about folks continuing to move in the adoption cycle," he said, adding: "We have a ton of people now who have adopted the basic product, and as they grow, they want to do more things. So, it's less about bringing
sophisticated users from the outside, it's more continuing the learning curve for our base." PayPal takes a cautious stance on cryptocurrencies, but there's much more going on behind the scenes. The company acquired crypto custody firm Curv in March of last year, and earlier this year was revealed to have been exploring a U.S. dollar-backed "PayPal Coin." "As a platform, we want people who acquire digital currencies to be able to use them to do something, whether it's buy NFTs or interact with games, and stablecoins are a component of that and really necessary for the commerce and payments aspect to grow," said da Ponte.
June 2022 | Volume 31
12
NEWS Crypto Weekly
New York See's Green With Crypto Mining Ban Robert Stone
June 2022 | Volume 31
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NEWS Crypto Weekly
can proactively go green during the two-year freeze. They are primarily concerned about Bitcoin miners reopening decommissioned coal-fired power plants, like Greenidge Generation in Dresden, New York, fueled by carbon dioxide. The state will also study the environmental impact of proof-of-work mining during the moratorium. Data about the open network's operations are plentiful. A good number of people are mining Bitcoin, and a good number of people are using it. According to a recent Federal Reserve survey, about 6 million Americans use crypto for payments, and about 60% earn less than $60,000 annually. Even though many Bitcoin mining businesses are highly corporatized and that they might be hesitant to use alternative energy sources, I think the network can become green.
T
he New York Senate passed a moratorium on Bitcoin mining in New York last week. There is no ban on proof-of-work mining per se, but instead, a two-year freeze on building new Bitcoin mining facilities that burn carbon-based fuels. Despite having passed two legislative bodies, the bill still needs to be signed by Governor Kathy Hochul to become law. Mines at home and new industrial plants using renewable energy sources would still be allowed, whether the bill passes or not. Despite the limited moratorium, it will likely discourage Bitcoin miners from setting up shop in California. Active Bitcoin miners, and even new businesses considering starting up,
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Bitcoin mining requires specialized computer chips, Bitcoin software, and an energy supply. Thus, we've seen operations spring up in far-flung places, like miners in Siberia who capture otherwise wasted energy from flared gas. Bitcoin miners in New York should take the first move to build renewable infrastructure or increase demand for greener utilities in the state. It's not a strange idea: Prominent Bitcoin advocates, including Twitter cofounder Jack Dorsey, have argued that Bitcoin mining could incentivize the buildout of wind and solar farms. Bitcoin could indeed play a key role in global renewable energy. Besides bringing revenue to energy producers, mining facilities
13
can also be turned on or off according to demand. Todd Kaminsky, chair of the Senate Environmental Conservation Committee and author of a bill that requires New York to achieve net-zero electricity by 2040 spoke out in opposition to the bill earlier this year. The International Brotherhood of Electrical Workers (IBEW) wrote a memorandum of opposition to an earlier draft last year. Moreover, it is impossible to ban Bitcoin to meet misguided environmental goals since the activity will move elsewhere. Nick Carter, a venture capitalist, compared the Gold Ban to the U.S. federal ban on gold. Production and price of the assets soared due to these policies in the 20th century. The people of New York may not want a miner in their backyard, but if these facilities use renewable energy, that is undoubtedly better than shipping equipment overseas. Even within the crypto industry, some players favor changing Bitcoin to include a proof-of-stake algorithm rather than the energy-intensive proof-of-work algorithm. Despite being backed by some influential organizations, such as Greenpeace, this plan is impossible because no one controls Bitcoin, and it is difficult to reach a consensus on changes to the network. Proof-of-work is energy-intensive, but it's also precisely what gives Bitcoin its value. And so, Bitcoin's users demand proof of work. Environmentalists may one day alter that conception. That's a complicated debate, but suffice it to say that although the Bitcoin network has been updated at the end of the day, whatever Bitcoin is, is what the community says.
June 2022 | Volume 31
14
NEWS Crypto Weekly
Crypto Regulation Must Keep Abreast of Industry Growth A
ccording to a spokesperson for the Bank of Canada, many people are unaware of the risks that come with investing in products like Bitcoin. Canadians own an ever-growing number of crypto assets, and efforts to regulate the sector should keep pace.
it gets much larger before we put more controls in place," Rogers added.Canadians owning Bitcoin more than doubled to 13% in 2021 from 5% in 2020, the Bank of Canada reported this week. The value of the global crypto asset market surged from $200 billion
Increasingly, crypto assets are becoming integrated into Canada's financial system, increasing the risk that crypto shocks - like the recent price drop - will affect the entire financial system.
at the start of 2020 to $3 trillion at its peak. “Anyone who sees an asset fluctuating in price sees a chance for quick gains," Rogers said. "There may not even be an understanding that it's not a regulated area." Indeed, cryptocurrency prices dropped recently as appetites for high-risk assets soured, exposing some investors to significant financial losses. Regulating the industry is necessary, but Rogers said the challenge is figuring out how that will be accomplished. "These are somewhat like banking assets and somewhat like capital markets," she said. "We must figure out how they fit into the current regime and, if they do not, how to change it."
A senior deputy governor at the Bank of Canada said at a news conference on Thursday: "It's still a relatively small industry, but it's proliferating, and there are currently no regulations." "We don't want to wait until
Chipotle Now Accepting Crypto A
digital payments platform, Flexa, has started accepting cryptocurrency payments from Chipotle Mexican Grill (CMG). In celebration of its new payment options, Chipotle will give 10% off to customers who use a Flexa-enabled app to make their next purchase. Flexa is accepted at all U.S. Chipotle restaurants for burritos and other TexMex favorites. To use Flexa for in-store purchases, customers must download the
Gemini or SPEDN app, which stores digital assets. Flexa supports 98 digital currencies, including Bitcoin (BTC), Ether (ETH), and Solana's SOL. The move into digital currency is not Chipotle's first. In celebration of National Burrito Day last year, Chipotle gave away $100,000 worth of burritos and $100,000 in Bitcoin. Chipotle this year launched its own Roblox in-app currency, Burrito Bucks, in addition to the Burrito Builder video game. Players could claim a free entrée code at participating Chipotle restaurants using their Burrito Bucks. Fast-food chains like Chipotle are testing cryptocurrency payments and promotions. Block's (SQ) Cash App debit card, Cash Card, enables Shake Shack (SHAK) customers to receive 15% of their purchases back in Bitcoin after making purchases
June 2022 | Volume 31
with the block's Cash App debit card. Nearly a year ago, sandwich shop Quiznos partnered with Bakkt App to accept Bitcoin payments at several Quiznos outlets in Denver. Flexa co-founder Trevor Filter says expanding digital currency payment options benefits customers and companies. "Chipotle benefits from reaching customers where they are through the new payment methods they want to use," Filter told CoinDesk. "And, at the same time, Chipotle's customers benefit from greater payment flexibility, faster checkout, and a more seamless experience at the fast-casual restaurants they already love."
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16
NEWS Crypto Weekly
U.S. Senators Propose Comprehensive Oversight of Crypto Industry U
ncertainty on the regulatory front has hindered innovation in the blockchain or "Web3" space. The Securities and Exchange Commission (SEC) stands out as the biggest area of uncertainty in determining whether a cryptocurrency or other digital asset merits a Securities Act exemption. The SEC commissioners and members of the industry have repeatedly called for regulatory clarity, but little progress has been made until now. A bipartisan bill has been proposed to regulate cryptocurrencies and other digital assets. At a time when partisanship is high ahead of the midterm elections, it is unclear whether the Senate will support the bill proposed by Senators Kirsten Gillibrand and Cynthia Lummis. Leading industry players in Washington have for the most part come to the conclusion that a long-term solution must come from the legislative branch Besides the fact that Lummis and Gillibrand are from different political parties, they are both members of the Banking Committee, which oversees the Securities and Exchange Commission, as well as the Senate Agriculture Committee, which supervises the Commodity Futures Trading Commission. Lummis has long advocated cryptocurrency development and has invested heavily in the industry. According to the bill, called the Responsible Financial Innovation Act the (RFIA) there will be legal definitions of digital assets and virtual currencies; the IRS will produce guidance for merchants accepting digital assets and charities accepting contributions in digital assets; and there will be a distinction between digital assets that are commodities or securities, something that has yet to be achieved. Lummis explained in an emailed statement that the bill "clarifies the regulatory framework for digital asset markets, provides a strong, tailored regulation of stablecoins, and
June 2022 | Volume 31
integrates digital assets into existing tax and banking laws." Under the RFIA, "digital assets" will be classified as commodities under the Commodity Exchange Act (CEA), thereby granting the CFTC authority to regulate crypto asset spot markets. By defining “digital assets” as commodities under the Commodity Exchange Act (CEA), the RFIA would give the CFTC primary authority over the spot market for crypto assets as a primary regulator. It is important to note that the definition only covers fungible assets, which excludes "digital collectibles and other unique digital assets." Unless the funds are held by an entity registered with a federal or state regulator, digital asset merchants would be required to segregate customer funds under the CEA framework, and investments may be limited under CFTC rules. All of this will be applauded by the Web3 industry, which has generally viewed digital assets as more akin to commodities than securities. The legislation imposes disclosure requirements on digital asset firms to ensure that consumers can make informed
decisions, delineates agency responsibilities over various digital assets, such as Commodity Futures Trading Commission jurisdiction over Bitcoin, and requires a study on digital asset energy consumption, among many other proposals. This development has led lawmakers on both sides of the aisle to support legislation that more closely examines digital assets. Senator Gillibrand said the bill provides "a regulatory framework that spurs innovation, develops clear standards, defines appropriate jurisdictional boundaries, and protects consumers." CFTC chief Ross Behnam has long advocated for greater oversight of the crypto spot markets, citing the volume of transactions in Bitcoin and Ether, the two most valuable cryptocurrencies. Both of these cryptocurrencies are commonly accepted as commodities, rather than securities that the SEC would oversee. It seems unlikely that the bill will pass this year. However, Sen. Pat Toomey (R-Pa.) suggested at CoinDesk's Consensus 2022 that legislation addressing stablecoins specifically may become law before 2023.
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FEATURE
17
Crypto Weekly
Partnership of BoomLand and Polygon Studios Takes Blockchain Gaming to the Next Level Robert Stone
BoomLand plans to reduce latency concerns and congestion by creating an efficient and fast blockchain ecosystem that will run via a Decentralized Publishing Organization (DPO). Users can participate in governance functions through the native $BOOM token and influence how the ecosystem develops. “We can abstract the complexities of blockchain while providing essential features like verifying digital ownership, secondary markets, and incentives to play."
T
op Web3 Blockchain Gaming Platform, BoomLand, will enable millions of gamers to experience intuitive GameFi via a Polygonbased Supernet ecosystem in a new venture with 2 of the leading blockchain gaming companies. Polygon Studios is a leading global blockchain company partnered with BoomLand, one of the leading mobile gaming companies. Based on Polygon's Supernet technology, BoomLand is the first Web3 gaming platform, metaverse, and play-and-earn ecosystem. Supernet's partnership with BoomLand is an essential milestone for Web3 gaming in the future. BoomLand's Web3 portfolio debuts its first title with 'Hunters On-Chain,' a Play and Earn mobile game supported by a lending and borrowing marketplace. In addition to bringing Polygon's Supernet technology to BoomLand players, this is a significant partnership for the development of Web3 gaming.
blockchain-based companies such as OpenSea, Sandbox, and Decentraland. Its experts have hosted 19000+ decentralized applications. It hosts more NFT and gaming dApps than any chain outside Ethereum. “BoomLand evolves online games into a Web3 format that promotes playercentered economies,” said Hannibal Soares, CEO of BoomLand. BoomLand was founded as a Web3 Gaming Platform, which was conceived in 2008 in partnership with BoomBit, to publish outstanding games with over 33 million monthly active users. Over 1 billion downloads later, BoomLand has become an international gaming brand.
Supernets are an advanced subchain of Polygon Blockchain, allowing developers to deploy decentralized applications without constructing their own network infrastructure. This collaboration marks Polygon's first integration of an ecosystem along the lines of blockchain publishing and gaming. The company has over five times as many gaming- and NFT-based dApps as any other chain outside of Ethereum. Polygon Studios is able to work with the top blockchainbased companies, Web3, and NFT projects, such as OpenSea, Decentraland, Sandbox, and Decentral Games. Polygon Studios' VP of Business Development, NFT & Gaming, Steven Bryson-Haynes, said: "BoomLand will be essential in bringing non-blockchain natives to Web3 gaming. We're eager to see what they can create in the budding Supernet ecosystem."
With Polygon studios, Web3 platforms are sustainable. This studio has worked with some essential Web3 projects and
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June 2022 | Volume 31
18
FEATURE Crypto Weekly
Crypto Markets Have Lost
$2 TRILLION in Value
S
tock markets and cryptocurrencies tumbled on Black Monday, leaving investors unable to hide. As a result of yet another report of high inflation, investors are concerned the Federal Reserve will continue to raise interest rates aggressively, increasing the odds of a U.S. recession.
lender Celsius suspended transactions, withdrawals, and transfers on its platform on Sunday due to "extreme market conditions." Binance, the world's largest crypto exchange, briefly halted withdrawals, but has since resumed them, citing "a few minor hardware failures."
Monero's total market cap fell by about 12% to $980 billion on Monday. As a whole, the sector has lost more than $2 trillion since its peak in November 2021. The crypto
That's just the beginning of the bad news. Monday was a dark day for cryptocurrencies. Here are the shocking facts that explain just how bearish the market has become.
June 2022 | Volume 31
It's the Lowest Bitcoin Price Since 2020 Bitcoin, the world's largest digital asset, fell over 13% on Black Monday. After a monumental rise in 2020 and 2021, Bitcoin is just 20% above its December 2017 peak, despite a massive rise in 2020 and 2021. While some industry analysts warn the situation could worsen before it gets better, supporters are still buying the dip.
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FEATURE
19
Crypto Weekly
Michael Saylor and Elon Musk have lost nearly $1.5 billion on their Bitcoin bets during this year's crypto winter. Tesla's Elon Musk and MicroStrategy's Michael Saylor have lost billions of dollars on previously profitable trades. Tesla purchased $1.5 billion or roughly 44,000 Bitcoins in February 2021, and for a time, Musk and Tesla profited from a dramatic rise in Bitcoin's price. The situation has changed, however, following Monday's loss. Despite realizing gains of $128 million in March last year, Tesla is roughly $500 million underwater on its Bitcoin bet. Tesla may have sold more Bitcoin since its last SEC filing. After Monday's drop, Saylor, who has marketed his business intelligence firm MicroStrategy as a quasi-Bitcoin ETF, is also underwater on his Bitcoin purchases. The value of Saylor's holdings now stands closer to $3.1 billion, despite spending almost $4 billion on 129,218 BTC over the past few years. If Bitcoin falls below $21,000, a margin call will be made on the CEO's loans. In the past, Saylor has stated that MicroStrategy will not sell its Bitcoin holdings.
Stablecoins are in Trouble The recent collapse of the stablecoin TerraUSD is fresh in the minds of many in the crypto space, and the ongoing turmoil in the stablecoin market this week is concerning. On Monday, Tron's decentralized USD (USDD) token temporarily lost its one-to-one peg to the dollar, which prompted Tron's decentralized autonomous organization (DAO), or the community-led group that controls the currency, to put up 700 million dollars in USD Coin (USDC) in order to keep it pegged. Justin Sun, Tron's founder, said in a worstcase scenario that he would invest $2 billion to stabilize the so-called stablecoin, saying short-sellers were to blame for Monday's 15% decline in Tron.
Mining Machines for Bitcoin are Shutting Down as Drices Drop Due to the dramatic drop in Bitcoin, companies that had been mining the cryptocurrency on older computers have shut them down as they can no longer operate profitably. As Bitcoin fell below $24,000, Bitdeer, a Bitcoin mining platform, reported that the Antminer S11 and AvalonMiner 921 have officially reached their "shutdown price." As a result, Bitcoin mining stocks like Hut 8 Mining and Riot Blockchain declined by 10% and 12%, respectively.
Currently, the cryptocurrency 'fear and greed' index is showing 'extreme fear.' In the crypto market, the "fear and greed" index is also stuck at "extreme fear." During the COVID-induced panic in March 2020, it was only three points higher than Monday's level of 11/100. With investors pulling roughly $102 million out of cryptocurrencies last week alone, a CoinShares report suggests more dark days may lie ahead.
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June 2022 | Volume 31
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FEATURE Crypto Weekly
CRYPTO
What You Need to Understand if You're an American T
he popularity of cryptocurrency has grown over the past few years, but many do not understand it. According to a survey by Cryptoliteracy.org conducted in 2021, 94.5% of Americans cannot pass a basic crypto literacy test. These are the most common mistakes people make about crypto and what you should know.
There is a limited supply of Bitcoin. According to Neil Bergquist, CEO of Coinme, 90% of respondents did not understand Bitcoin's limited supply. Bitcoins will never exceed 21 million, which creates a fixed supply and trust in a fixed supply. "People buy Bitcoin because there is a limited supply, so it is regarded as a safe investment. Dollars seem to have an
endless supply since the government prints more, devaluing the dollar in circulation and causing inflation."
Don't take advice from others when choosing any crypto investments.
Stablecoins come in different varieties.
When it comes to crypto, it's tempting just to follow the advice you see on Reddit or social media, but Bergquist recommends doing your research before investing. He advised people to become familiar with various cryptocurrencies, their liquidity, and how large their communities are. "The more credible the cryptocurrency, the larger and more credible the community. It would be best to do your own research and not listen to influencers and make your own decision." Investing in volatile coins is especially important. According to Bergquist, traditionally, large-cap cryptocurrencies like Bitcoin and Ethereum are considered the safest stores of value. If you want to speculate on the higher-risk, higher-volatility coins, you must do your own research.
Nine out of ten people surveyed have no idea what stablecoins are - digital assets whose value is linked to some underlying asset. "Many respondents were not aware of what stablecoins are, much less the differences between them," Bergquist said.An algorithmic stablecoin like TerraUSD - which plummeted in value after breaking its peg to the U.S. dollar in May - differs from a cash-backed stablecoin. "Many people realize algorithmic stablecoins are very different from cashor cash-equivalent-backed stablecoins," Bergquist said. "Understanding that is also important, as we've seen in recent weeks."
Besides researching, Bergquist recommends getting your feet wet with cryptocurrency by making a small investment. Ownership is one of the best ways to gain experience with cryptocurrencies - the survey found that respondents who owned cryptocurrencies were twice as likely to answer crypto literacy questions correctly. "All you need is $1 to buy Bitcoin at a Coinme-enabled Coinstar ATM, and then you can go through the experience of setting up a wallet and going through that transaction experience," Bergquist said. "We've learned that people who own cryptocurrency are more likely to learn about it and become more cryptosavvy longer term."
June 2022 | Volume 31
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22
NFT FEATURE Crypto Weekly
NFTs Thrown Over a Cliff as Markets Tumble E
xperts say NFT values are plunging alongside traditional crypto as part of a broader 'crypto winter' saga. Popular NFT collections, including the celebrity-favored Bored Ape Yacht Club (BAYC), are being hit hard as the crypto market sinks, losing over half their value. Those Bored Apes jumped over a cliff as the minimum price of the NFT dropped below $200,000. A sign that even the most sought-after collections are beginning to slide. The NFT Index, which tracks the performance of nonfungible tokens and is weighted based on each token's circulating supply, shows no sign of leveling off. The slide comes as Bitcoin and other cryptocurrencies shed huge amounts from their market caps, which will lead to more aggressive regulation as a result of all this turmoil. Overall, NFTs have declined in value this year as sales slowed. A report by NonFungible, which tracks NFTs, shows that NFT sales
June 2022 | Volume 31
volume plunged nearly 50% in the first quarter of this year after its hottest year in 2021. According to Nansen's quarterly report, 1.2 million NFTs have been minted as of February, explaining the slowdown in volumes of buyers and sellers. . NFT expert and founder of Apocalyptic Apes, Bill Starkov, uses market crashes as an opportunity to shop. "One down market day in the NFT space is like a whole year in real life," he said. "These corrections are super healthy. People take profit. What happens is that people panic and then there is an instant recovery.”
global appeal, NFTs have transformed from niche digital artworks to a burgeoning community of creators in the past year. The trend of releasing NFT components by big-name brands has become almost fashionable. Binance's head of NFTs, Helen Hai said that, "the real value creation for NFTs hasn't arrived yet and expects more volatility as NFTs evolve and mature." She said, "more education is needed to understand the risks and that not all NFTs offer value."
NFT had been a bright spot during the market rout relative to the rest of the crypto market. Although NFTs have low liquidity in comparison to fungible coins like Bitcoin and Ether, investors have accumulated significant holdings of them over the past six months. As an evolution that has birthed
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FEATURE Crypto Weekly
Wealthy Countries Influence Nations Adopting Crypto Through the International Monetary Fund
A
s part of a bailout deal with the IMF, Argentina had recently promised to crack down on cryptocurrencies. Enraged cryptocurrency investors quickly fingered that promise as a source of the de facto ban.
allowing developing nations to explore alternatives to an existing global financial system that benefits the rich. Rather than protecting the well-being of developing nations, monetary stewards are concerned with preserving a system in which central banks and governments of wealthy countries dominate global monetary policy.
The Central African Republic has also adopted Bitcoin as its official currency, despite new efforts by Western investors and world leaders to encourage nations to do so. International financial institutions are increasingly resisting. It is a question of whether central banks of the developed world will control the issuance and flow of money, or whether rules incorporated into a computer program invented 13 years ago will do so. Twitter users responded to last month's move with "The IMF is the devil," punctuated with an extended middle finger emoji. In recent weeks, tensions have mounted over the future of money on four continents.
of capital controls, as well as exposure to large price swings for citizens. Bitcoin, which has lost half its value since November, is not suitable as a national currency, according to Dong He, Deputy Director of the IMF's Monetary and Capital Markets Department. He asked, "How would tax revenue be affected?" “Would your social service obligations remain the same?"--Referring to Argentina's letter to the fund that referred to crypto. "Because of the risks involved, we cannot proceed."
The Federal Reserve Board, International Monetary Fund, World Bank, and Bank for International Settlements have expressed concern about cryptocurrency adoption in terms of money laundering and undermining
Crypto such as Bitcoin - according to activists and investors who support such experiments - is capable of preventing countries, such as Nigeria and Argentina, from experiencing a rapid currency devaluation while also
June 2022 | Volume 31
The Human Rights Foundation, an NGO that advocates Bitcoin adoption, said Bitcoin opposes everything the IMF stands for. This spring, the extent of the long-simmering conflict has expanded, as a steep drop in Bitcoin's price illustrated the risks of such experiments. The Central African Republic became the second country in the world to legalize Bitcoin as a currency in April. The IMF, the World Bank, and the regional central bank overseeing the country's current currency, the Central African CFA franc, are opposed to the move. According to the Bank of Central African States, the Central African Republic's Bitcoin
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Crypto Weekly
law should be repealed. The rules force financial institutions that fall under its jurisdiction to cut ties with platforms that use digital currencies and crack down on cryptocurrency in general. Despite this, the small country has forged ahead with its plans to build a crypto-island to attract international investment. Under the leadership of El Salvador's autocratic and popular president, Nayib Bukele, the initiative has exacerbated a rift with Western powers in the first country to adopt Bitcoin as a currency. U.S. embassy official Jean Manes said in November the U.S. had put relations with El Salvador on hold because of the Bukele regime's anti-American rhetoric and a power grab that led to the dismissal of the government's attorney general and chief justice. Bitcoin has become a symbol of Bukele's defiance of international institutions, symbolizing his authoritarian turn. A State Department spokesman declined to answer a question about El Salvador but cautioned countries to consider cryptocurrency. "We agree with the IMF, World Bank, and others that adopting a cryptocurrency as legal tender raises several potential complications," reads the statement, which calls on countries to comply with anti-money laundering and counter-terrorism standards. According
to the statement, human rights activists have also used cryptocurrencies to escape financial controls in repressive regimes and to facilitate financial assistance to Ukraine. Several senators, including one from each party, have weighed in on El Salvador's experiment. In February, Senators Menendez (N.J.) and Risch (Idaho) introduced a bill that would require the State Department to submit a report on the country's Bitcoin law, which would have an impact on the U.S. financial system. The Senate has yet to consider the bill. Despite the pushback, Bukele and the Bitcoin investors remain undeterred. Samson Mow, a Canadian entrepreneur, involved in El Salvador's experiment, announced in April that he had raised $21 million to launch a new company - called JAN3, in honor of the date Bitcoin was launched - to bring about "hyperbitcoinization," or the replacement of existing national currencies with Bitcoin. After the gathering, Bukele urged other nations to emulate the country's Bitcoin experiment at a gathering of the Alliance for Financial Inclusion - a coalition of dozens of central banks and other policymaking bodies from the non-Western world. In a press release on its website, the Alliance for Financial Inclusion hints at the topic's sensitive nature. A long list of concerns, including money laundering, is cited in
the release, which echoes the warnings of Western powers, adding that "adoption is not a possibility in the majority of countries." To learn more about blockchain technology, group members visited El Zonte, a coastal region south of the capital nicknamed "Bitcoin Beach." Bukele cast the gathering in a more positive light despite the early setbacks. On Twitter, he boasted that it was the largest gathering of nations since the U.S. reformed the global financial system at the Bretton Woods Conference in 1944. El Salvador is in a precarious financial situation and is seeking a $1.3 billion loan from the IMF, which has, in turn, requested that Bitcoin be stripped of its legal tender status. Last month, Moody's downgraded the country's sovereign debt, making it more likely that a default will occur. Such financial challenges often force countries to turn to the IMF. But El Salvador's experiment may stand in the way. "This is a tremendous gamble with a nation's money, and we can't ask the IMF for support at the same time," said Josh Lipsky, director of the Atlantic Council's Geoeconomics Center. "You can do one, but not both." Microstrategy CEO Michael Saylor has become a face of the Bitcoin phenomenon after buying billions of dollars worth of crypto. In April, he met with former Argentine president Mauricio Macri to discuss cryptocurrencies. “At a national level, cryptocurrency adoption has been most attractive to those countries that lack sovereign currencies or suffer from runaway inflation. A national leader who promotes the new currency as a means of saving rather than as a substitute for existing currencies would face less blowback,” Saylor said in an interview. As for changing his medium of exchange, "I would introduce Bitcoin as a store of value," he said. He called the latter approach "a better evolutionary strategy that's less likely to cause friction." Since El Salvador gave up its sovereign currency, the colón, in 2000 and switched to the U.S. dollar, it no longer can pursue independent monetary policies. In February, the Marshall Islands, a tiny nation in the equatorial Pacific that uses the dollar, passed a law to create a new cryptocurrency,
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FEATURE Crypto Weekly
the SOV, which has a 4 percent fixed growth rate. So far, the SOV has not been issued, and the IMF has repeatedly voiced concerns regarding the project. A month ago, the IMF reiterated its concerns regarding the project, citing volatility, financial integrity issues, and a lack of reliable infrastructure that would support a digital currency. As well, the CAR lacks direct control over its monetary policy. As part of a more extensive currency system, the CFA franc, devised by France after its former African colonies attained independence, the CAR belongs to a regional monetary union overseen by the Bank of Central African States. Members of the system deposit much of their currency holdings in France and peg the CFA franc to the euro, which has provided currency stability but has also been criticized as neocolonial. A 60 percent inflation rate in Argentina has led citizens to embrace cryptocurrency. Before the government's recent commitment to crack down on cryptocurrency, President Alberto Fernández openly toyed with making Bitcoin legal tender. In the wake of the rise of cryptocurrency, the IMF, which has recently worked with India on that country's policy framework, has called for a coordinated international government response. A transition to central bank digital currencies, or CBDCs, would be less disruptive to existing monetary arrangements than the changes sought by cryptocurrencies. Despite the fund's discouragement of crypto networks like Bitcoin as currency, it has urged national central banks to adopt
the underlying blockchain technology to implement digital upgrades to their own sovereign currencies. With a new report, the Bank for International Settlements (BIS), an international body owned by the world's central banks, launched its latest attack against cryptocurrency. According to the report, “Due to fragmentation, cryptocurrency cannot fulfill the social role of money." Instead, the report recommended updating its members' national and supranational currencies. In fact, "there is more promise," says the report, "in innovations that are based on trust in sovereign currencies." Meanwhile, the growing conflict between developing countries and global financial powers over digital money exposes internal divisions. The most recent rollout of Bitcoin in El Salvador prompted street protests, and
opposition leaders have criticized the new law in the Central African Republic. Additionally, there is disagreement about the appropriate role of cryptocurrency in the monetary system among the world's leading financial powers. However, the United States remains tentative on the subject as a lively debate continues about the technology. A former IMF chief economist, IMF deputy managing director Gita Gopinath, told the Financial Times in March that Western sanctions imposed in response to Russia's invasion of Ukraine would likely lead to widespread adoption of cryptocurrency as actors around the globe sought alternatives to established financial systems. In contrast, former IMF chief Christine Lagarde, president of the European Central Bank, recently said that cryptocurrencies are "worthless." A single school of thought can't prevail within individual institutions such as the IMF. John Kiff, a former financial sector expert at the IMF who now serves as a managing director at the newly formed CBDC Think Tank, says the statement of the "big honchos at the top" does not always reflect opinion held by rank-and-file staff. According to Kiff, what comes out in public under the IMF banner must go through the IMF management and not fly in the face of the board of directors, which consists of the member countries. "Even though the Fund is largely anti-crypto, there are still people deeply embedded like myself who are buying and selling crypto."
June 2022 | Volume 31
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FEATURE
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Crypto Weekly
Cybercrime, Stock Markets, & NFT Scams Helped Trigger the Crypto Crash I
nvestors have dumped positions in cryptocurrencies and non-fungible tokens amid a broader bear market and highprofile cyber attacks this year, leading to a reversal of trends in digital assets. Since November, the crypto market value has plummeted from $3 trillion to $1.3 trillion. In the year to date, Bitcoin has dropped 38%, while Ethereum - the secondlargest cryptocurrency and a frequent measure of sentiment - is down more than 53%. Compared to early January, NFT sales are down 80%. One of the critical events in the recent downturn occurred in April when North Korean hackers perpetrated a $625 million crypto hack on Axie Infinity, a popular playto-earn game. Yuga Labs, a hugely popular NFT company, has been targeted three times since then. Bored Ape NFTs worth about $360,000 have been stolen in hacking attacks recently. According to Ari Redbord, TRM Labs' head of legal and government affairs, hacks played a role in the downturn "in some respects,"
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as some people may have lost faith. The technology, however, is still promising, he says. Redbord said the digital asset downturn reflects the nascent state of the industry. He explained that the ecosystem is still in its infancy and does not yet have the foundational infrastructure to stop attacks. "This will not work if people do not trust the systems they're engaging, so we must stop the bad actors.” In terms of protecting consumers, he explained, “Regulators are just beginning to show interest, and businesses are still finding their feet.” But while cyber-attacks highlight the need for regulation, they didn't necessarily play a role in the bear market, said Bill Birmingham, chief investment officer at Osprey Funds. If anything, he noted, cybercrime may only delay institutional adoption of digital assets. "The people who tend to get hacked are usually at the extreme end of the risk spectrum; for the most part, they're already fully sold on the concept of crypto," Birmingham said. "I don't think this will change their point of view at all."
Crypto and NFTs also haven't tumbled on their own this year. The stock market has also traded in the red, and the tech-heavy Nasdaq is down roughly 23% per year. Birmingham explained that the abrupt reversal in sentiment is a result of the pandemic's easy-money policies. "We saw massive liquidity created in response to COVID," he told Insider. "[Government stimulus checks] combined with people staying home, you had many things leading to that liquidity finding its way to crypto. Now the central bank is tightening interest rates, and those stimulus checks have stopped, you see a natural end to liquidity taking down crypto prices." According to Georgetown University finance professor James Angel, the dramatic volatility in the digital asset market shouldn't be surprising. "Bitcoin goes through phases of euphoria where some people think it will go to infinity and then phases of disillusionment when people figure out there is not much you can do with it," Angel told Insider. "Speculating is no longer fun when you're losing money, so people move on to other forms of entertainment."
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EDITORIAL Crypto Weekly
Crypto Industry Layoffs for Some Companies While Others are Hiring Thousands
June 2022 | Volume 31
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EDITORIAL
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Crypto Weekly
In the wake of last week's startling crypto crash, many companies have trimmed their payrolls, while others are doubling down on investments. Companies that grew fast seem to be the most impacted. On June 14, Coinbase reportedly let go of 18% of its employees. The shocks that Coinbase experienced all came at once, and they weren't prepared for them. Last year, Coinbase went public and became an entry point to crypto for many newcomers. A hiring spree of 2,000 employees was intended as recently as February. However, its stock is only worth 15% of what it was in November. In a blog post on Tuesday, Brian Armstrong argued that the company grew too fast; "It is clear now that we overhired." He wrote that the company was “preparing for the worst," including a "crypto winter" that "could last for many months." The CEO of Binance, Changpeng Zhao, said on the 15th, that the company has opened 2,000 job positions, a stark contrast to recent job cuts by firms operating in the digital currency sector. “The decision was not easy a few months ago to reject Super Bowl ads, stadium naming rights, and sponsor deals, but we did.” "We are hiring for 2000 positions at #Binance today. Hunker down," tweeted to his 6.4 million Twitter followers.
The move by Binance comes amid extreme volatility in the cryptocurrency market as investors are dumping risky assets over fears that soaring inflation would force the U.S. Federal Reserve to aggressively raise interest rates and tip the economy into a recession. Crypto-related companies including BlockFi and Crypto.com have announced large layoffs this week. Several companies have announced significant layoffs or hiring freezes, including Robinhood, Crypto.com, and others. There are too many to mention. I mean it when I say, "Let's get rid of the garbage. Meekness has no place in this business. We only want what rises to the top. The cream of the crop." A couple of years ago, crypto startups laid off dozens of employees and the industry lay dormant for a couple of years. The current layoffs may herald another extended crypto downturn and lead to fundamental shifts. The recovery may take years. Along with the Binance exchange, which ranks among the largest in the industry, the Kraken exchange and Polygon are also
hiring. Kraken announced it would hire over 500 new employees. Meanwhile, Polygon has hired at least 50 people. Some companies say they are sticking to their game plans of steady growth as they prepare for the next bull market. "We hire carefully so that we can keep growing regardless of market conditions," CEO Sam Bankman-Fried wrote on Twitter last week. "Sometimes, when others Zig, you Zag."
It was Fast but It was Clearly Coming For months, industry analysts have predicted a downturn. Since the inception of cryptocurrency, the market has seen several boom-and-bust cycles, and many argue that the recent bull run was overly fueled by speculation. From building war chests to choosing safer investments, many companies took measures to protect against a pullback that seemed inevitable. But even though many were expecting it, the speed of crypto's collapse this week took many by surprise. Bitcoin lost a quarter of its value in three days, while Ethereum dropped by as much as 35%. "If you compare this to previous bear markets, this happened very fast," says the macro-economist and Web 3 educator, Tascha Che. She says that many in the crypto space believed the downturn this time around would be much milder than the previous one, in 2018, because there are now far more crypto investors and much more capital involved. Ok, so, out with the old ineffective projects and may the remainder grow strong in an environment cleansed of the clutter of all that came before. All of those companies had failed to keep pace with the crypto revolution and were drawing away sustenance from other projects that would help the space to evolve. "The music never stops in the cryptosphere," I always say. Robert Stone | Editor
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June 2022 | Volume 31
32
HIDDEN GEMS Crypto Weekly
PROJECT 1
cryptopolisgame
CryptopolisGame
A social game where you can collect, earn, win, and display your NFTs while playing and socializing with your friends. The vision of Cryptopolis is to make managing digital assets fun. Cryptopolis strongly believes in the future of crypto gaming. Being able to have fun and make money at the same time is not a utopian dream anymore. It is here. And Cryptopolis wants to make it the most fun for any adult to do so. Play-to-earn is the approach we chose because Cryptopolis believes anyone should be able to acquire Cryptopolis NFT’s. Cryptopolis merges the Sims-like mechanics with room decorating and social interaction. In Cryptopolis your NFT collection and in-game experience get you to the top of the tower. Make real money with the $CPO
PROJECT 2
atsnft.io
tokens by winning wager matches throughout the Tower, buying and selling NFT’s, and winning tournaments. The future of NFT gaming is here. Cryptopolis is free-to-play & play-to-earn. An online social platform with a blockchain back end and an associated cryptocurrency ($CPO) - Cryptopolis has a progression system based on acquiring resources, items (as NFTs), and prestige - Where players connect with each other and perform activities together. But they also compete with each other for in-game standing (prestige) and $CPO in various minigames. Cryptopolis is the first gamified social platform whose users can earn real money by playing and trading NFTs.
Apes Together Strong (ATSNFT)
atsnft
When the initial design of our Ape was being drawn, many important long-term variables were considered. The main goal of this collection was to create something different from what has been depicted in other Ape collections. As this collection was inspired by the movie “Planet of the Apes,” our Ape is extremely detailed for a 2D collection, it is front-facing, and will be the King of the Apes; we are not a copy-cat collection. Beyond that, involving our community has always been a top priority and from the beginning, we have had a dedicated channel that our community can use to collaborate with the artist. We have taken suggestions and illustrated the best ideas into the collection. We continue to work on progressing and refining our ultra apes, our traits, and our backgrounds to make it the best possible artwork for our community. Let it be
June 2022 | Volume 31
CryptopolisGame
atsnft
known that our artwork is created with a 300DPI, which allows for it to be printed without degrading the quality. This will be important if you want to print your unique Ape, especially with the ownership utility arriving post-mint.
Creating an Organic, Cohesive Community-Phase 2 The strength of the community is the single most important aspect of an NFT collection. It allows for a family atmosphere, where everyone will win. WAGMI. As our collection is inspired by the “Planet of the Apes,” we plan to use our community to help our end goal: to take over. Exclusive invitations were given out to form our base community, and bringing in users that have an aligned vision of our future will continue.
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34
BEGINNERS GUIDE Crypto Weekly
Resource to Assist Those Scammed in Crypto
The crypto market opens investors up to new and evolving fraud and scam risks, whether they like it or not. Here is some information that can help you if you are considering investing in Bitcoin or Ethereum in the future. Robert Stone
June 2022 | Volume 31
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BEGINNERS GUIDE
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Crypto Weekly
Where to report a scam in the United States.
The Internet Crime Complaint Center (IC3) atic3.gov/Home/FileComplaint The FTC at reportfraud.ftc.gov The Commodity Futures Trading Commission (CFTC) can be contacted at CFTC.gov/complaint The U.S. Securities and Exchange Commission (SEC) at sec.gov/tcr If the fraud involves extortion or blackmail, you can also go to the FBI
*Don't forget to notify the crypto exchange whenever you suspect or have evidence that bad actors are involved
Keep Track of Your Wallet Keys Each wallet only has one unique key. Losing your key could mean losing your cryptocurrency. It is important to have a lot of control over who has access to your wallet key. If you don't write down your username and password, you can't lose them. Each code has a specific process and number of characters.
you log into your "investment account," or you may have to pay high fees.
Things to Watch Out For
An investment manager contacts you out of the blue. Buying cryptocurrency and transferring it into their online account is the only way to grow your money. There's a good chance that the investment website they direct you to is fake, and so are their promises. You may be unable to withdraw any money if
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A scammer offers to multiply any cryptocurrency you send by posing as a famous person. This involves somebody posing as President Biden to say, "Send me crypto." Neither celebrities nor presidents operate this way.
Scammers promising free money. They'll offer free cash or cryptocurrency, but free money promises are always fake.
Scammers who make wild claims without explaining what they mean. Find out how the investment works and ask questions
about where your money goes. Investor managers and advisors who are honest will provide this information and back it up with verifiable details.
Fraudsters impersonating reputable businesses. Messages may appear to be from Amazon, Microsoft, FedEx, or your bank, and scammers might say they are from Amazon, Microsoft, FedEx, or your bank. Your computer might pop up with a pop-up alert, or they may text, call, email, or post on social media. If you send them crypto, they will tell you that there is fraud on your account or that your money is at risk. Please don't do it.
Fraudulent crypto coins or tokens are offered by scammers impersonating new or established businesses. To get into the crypto world, they will say the company is launching its own coin or token. Such statements are typically scams.
Beware of blackmail scams: Scammers might send emails or U.S. mail to your home saying they have embarrassing or compromising photos, videos, or personal information about you. They may cite an old password of yours, which can be acquired in the darker corners of the internet, as evidence they have hijacked your online security. Then, they threaten to make whatever the information is public unless you pay them in cryptocurrency. That is a criminal matter for the FBI.
June 2022 | Volume 31
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Crypto Weekly
of the
week
NFT
Where is the Market Going? James Sides will tell you how it is. I have known James for over a decade. He is not only one of the hardest working men I know but what he teaches with his trading groups is beyond top-notch.
June 2022 | Volume 31
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FEATURE
37
Crypto Weekly
Bitcoin Selloff
is "Not So Terrible," says Binance Executive
M
any are wondering whether cryptocurrencies, including Bitcoin, are experiencing a crypto winter, as they have nosedived this year. Not Binance Cofounder and Chief Marketing Officer Yi He. According to him, if you take a look at the price of Bitcoin right now, it isn't completely winter. Usually, winters are warmer than the previous ones. So, sometimes you can say it's winter, but if you look at 2014, 2015, or two years ago, the worst things are probably still more robust than last summer. So now, I don't think it's too bad." Crypto is similar to the Internet during the 2000 dot-com bubble, he says, citing marketing and crypto ads during the Super Bowl and sports matches. "I think we are on the verge of losses comparable to those during the Internet bubble," he says. Binance's public communications have stated that the bear market is a time for building and that while token prices might
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be down, innovation is continuing. Bitcoin (BTC) is down 2.75% in the last 24 hours to $22,459. As a result of expectations of aggressive Federal Reserve rate hikes, the digital coin's value has fallen 25% over the last seven days. In one example, the company continues to hire while other major exchanges lay off staff. While he cannot predict price actions in the next six months to a year, he predicts that the prices of major coins - Bitcoin, Ethereum, and Binance's own BNB coin - will rise over the next four years. Based on Bitcoin halving, it took four years for Bitcoin to hit its peak again afterward. He predicts Ethereum will be a long-time winner because it houses so many projects. He described it as "like a luxury mall." The gas fees are high, but they account for most of the traffic. “They are also wealthy, and many original users are on the platform." He believes Bitcoin, Ethereum,
and Binance's coin, BNB, will be leaders in the space for the next five or so years. According to him, the blockchain technology that underpins crypto and its applications will improve over the next five years. More applications will use web3 technology, he added. He provided the example of news publications, saying that news websites can decide how much advertising they want while users can offer insights and guide decisions for the company. Due to blockchain technology's transparency, he said it can be used to track things like raising money for charitable foundations, monitoring donors, and tracking the money spent on programs. "I think technology will improve in the next five years as technologists and engineers dig deeper and build the tech side," he said. "It just takes time. A lot will improve, especially at the BNB chain."
June 2022 | Volume 31
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FEATURE Crypto Weekly
Crypto is Much More Useful than the Financial System by Itself A
tumble in the crypto market and the collapse of NFTs have affected ETFs that invest in, or around, blockchain technology. There are reasons for optimism despite the bad news. The fundamentals of crypto haven't changed at all, according to Marcus Sotirou, an analyst with online asset brokerage GlobalBlock. Throughout its life, Bitcoin has been reset multiple times and has always come back stronger and better for it. The recent slide in crypto prices has been compared to the early aughts dotcom rout, says IDX Digital Assets chief investment officer Ben McMillan, who notes that it is "ultimately good for the space." “It reminds me of back in the 2000s, the selloff of both Pets.com and Amazon.com. They were both down over 80%. One of them went out of business, while the other one went on to become an industry leader,” McMillan said, adding that it wouldn’t be surprising to see Bitcoin “getting back to even for the year, maybe even a little bit positive.”
June 2022 | Volume 31
Why Blockchain Is the Future Blockchain - the true star of cryptocurrency - is obscured by the word "currency.” Sotirou noted that 99 percent of cryptocurrencies aren't attempting to be currencies, but rather assets behind blockchain networks. Blockchain-based ETFs, such as the Amplify Transformational Data Sharing ETF (BLOK), are likely to thrive as the technology gains in popularity. BLOK's holdings are concentrated in companies that are actively involved in the development of blockchain technology. In addition to peer-to-peer transactions and digital asset storage, blockchain could serve several societal needs. Because it functions as a ledger, it allows companies to track goods in real-time as they move through their supply chain, allowing them to optimize their processes. It could have a substantial impact on the existing supply chain. Healthcare could be affected as well. Currently, healthcare suffers from siloed data. As insurance companies, doctors,
and specialists struggle to communicate, a patient's medical history becomes fragmented. The use of blockchains offer the benefit of storing medical data safely and easily allowing medical professionals to access it while protecting the privacy of the data. There could also be applications in real estate and banking. By simplifying a complex process and reducing fraud, quick financial verification could speed up home sales. The technology could also have civic benefits. Blockchain-powered tax administration immediately springs to mind as something that could be made more efficient, expeditious, and secure. Electoral reform could also benefit from this technology. A blockchain-based voting process could speed up the process, make it more accessible to more people, as well as allow for faster tallying. Bitcoin will likely also recover, but it is important to remember that it is the technology that will drive innovations untold far into the future.
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