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Cybercrime, Stock Markets, & NFT Scams Helped Trigger the Crypto Crash 30 Crypto Industry Layoffs for Some Companies While Others are Hiring Thousands
Crypto Weekly
Cybercrime, Stock Markets, & NFT Scams Helped Trigger the Crypto Crash
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Investors 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," 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."
Crypto Weekly
Crypto Industry Layoffs for Some Companies While Others are Hiring Thousands
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
Crypto Weekly
PROJECT 1
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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 $CPO tokens by winning wager matches throughout the Tower, buying and selling NFT’s, and winning tournaments. The future of NFT gaming is here.
Cryptopolis is free-to-play & play-to-earn. An online social platform with a blockchain back end and an associated cryptocurrency ($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.
PROJECT 2
atsnft.io Apes Together Strong (ATSNFT)
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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 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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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
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.
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 you log into your "investment account," or you may have to pay high fees.
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.
of the week
Crypto Weekly
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.
Crypto Weekly
Bitcoin Selloff
is "Not So Terrible," says Binance Executive
Many 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 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."
Crypto Weekly
Crypto is Much More Useful than the Financial System by Itself
Atumble 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.”
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.
