CRYPTO WEEKLY cryptoweeklymag.com$2 August 2022 | Volume 38 HIDDEN GEMS Page 34 Page 36BEGINNERS GUIDE Page 46VIDEO OF THE WEEK How exchanges workCookie Sale | Kodi (KODI) Beginners Crypto Money Page 08 BUTERIN BACKS NFT PRIVACY Page 20 BEST INVESTMENTSTRATEGY Page 26 QUANTUM COMPUTINGVSCRYPTO Page 38 THE ALTERINGWORLDMERGE Page 44 ESSENTIALSSECURITY Page 19 NFTS COMPLICATEDARE Page 14 NFT COLLAPSE?MARKET Page 17 KOREA EXCHANGESBLOCKS Page 18 TOKEN SECURITY?OR
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cryptoweeklymag.com$2 August 2022 | Volume 38 CONTENTS 10 18 22 Bitcoin Crash Hits Scammers Hard 7 Buterin Backs Proposal For Stealth NFT Transfers to Preserve Privacy 8 Is ETH 2 0 on the Path to Centralization? 10 The Arrest of Tornado Cash Developer Alex Pertsev Prompts Protests in Amsterdam������������������������������������������������������������������������������������������12 NFTs will Reflect Metaverse Development Use Cases to Increase Substantially in Five Years 13 NFT collaterals Soar on BendDAO: Is the sector headed for collapse? 14 U.S. Sanctions on Tornado Cash Unprecedented Warns Congressman 15 Uniswap Blocks Over 250 Crypto Addresses Related to DeFi Crimes 16 South Korea blocks KuCoin and Poloniex in Crackdown of Unregistered Crypto Exchanges 17 DoJ Case Alleging NFT Insider Trading Files to Dismiss Case by Ex-OpenSea Executive ������������������������������������������������������������������������������������� 17 The Difference Between a Crypto Token and a Security 18 Owning an NFT is Complicated 19 Best Crypto Investment Strategy - Investing in Promising New Coins Early 20 The Metaverse Will Transform Our Lives and Change The Course of Humanity 22 Bitcoinblack's Crypto Credit Card for Crypto to Fiat Exchanges Has the Rich Clammoring for Membership 30 What Is a Crypto Exchange, and How Do they Work? 36 The Future of the World May be Forever Altered After Ethereum's "Merge" 42 How to Keep Your Cryptocurrency Safe 44
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editor@cryptoweeklymag.com Editors Letter ISSUE 37 CRYPTO WEEKLY Crypto Weekly Magazine is published by the Crypto Marketing Company 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ Design Dilin Divan dilin@cryptoweeklymag.com Advertising Kryptochik kryptochik@cryptomag.finance Publisher Colin Woolley colin@cryptoweeklymag.com Editor Robert Stone editor@cryptoweeklymag.com CEO Nathan Hill nathan@cryptoweeklymag.com
Robert Stone Editor Welcome to 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. Another week has gone by, and this is our 38th issue of Crypto Weekly. Why is privacy in our thoughts and speech and homes and relationships legitimate, but privacy in our money is illegitimate? Because the former is just a facade and doesn't really exist around the world. However, there cannot be any facade when it comes to our money. They want our money as if they had a right to it. We, the people, are owned by the Oligarchs, or so they believe. Well, they have got to. Where would they be without the population of the world as cattle? This is what is happening with Tornado cash The feds don't block the dollar because bad people use it for illicit things or launder money with it� The good old dollar is the most favored currency in the world used by organized crime planet-wide; of course, they won't mess with that. They sanctioned Tornado Cash because they could and not because it was right. We shall see how far they get with that. The entire crypto elite responds as if it goes against everything they are working for Because it does 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�
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Bitcoin Crash Hits HardScammers
As of writing, the crypto market has lost just over $2 trillion compared to its all-time high of over $3 trillion. Bitcoin and ether -- the native tokens of Ethereum, the platform for creating non-fungible tokens (NFTs) and decentralized finance (DeFi) apps and games -- dominate this market, which weighs $1 trillion, according to Coin Gecko Even as prices try to stabilize, this crypto winter continues The result was that many small investors lost their savings. At the same time, hedge funds like Three Arrows Capital (3AC) went bankrupt, forcing prominent crypto lenders like Voyager Digital and Celsius Network to file for Chapter 11 bankruptcy. Revenues from crypto scams are down 65% Another category of individuals has lost a lot in this crisis, not the ones you think of right away: the scammers Chainalysis reports that illicit activity is declining with the rest of the market The firm reported that scam revenues through July 2022 are $1.6 billion, 65% lower than last July, and darknet market revenues are trending 43% lower than last year Through July, both illicit and legitimate cryptocurrency transactions have lagged behind 2021. In contrast, criminal volumes have decreased by 15% yearly, while legitimate volumes have decreased by 36%. There was a 49.5% drop in Bitcoin prices between Jan. 1 and July 31. With bitcoin's price falling since January 2022, scam revenue has also fallen Retail investors have made the fewest transfers to scams this year than they have in the past four years, according to Chainalysis According to the firm, fewer people fall victim to cryptocurrency scams than ever�
"We also hypothesize that inexperienced new users are less prevalent in the market now that prices are declining, rather than when prices rise, and they're drawn in by hype and quick returns." Cryptocurrency scams have totaled $273 million so far in 2022
Hacking Has Increased Sharply Revenue from the darknet market has dropped 43% since July 2021. According to Chainalysis, this was primarily due to the shutdown and sanctioning of Hydra Marketplace, which has acted as a hub for drug sales and hacking tools, stolen data, and money laundering services for years. While this news is good for crypto investors and the industry trying to appeal to the mainstream at a difficult time, there is bad news: Crypto hacks have increased sharply Through July 2022, the firm found that $1.9 billion worth of cryptocurrency had been stolen in hacks of services, compared to just under $1.2 billion at the same point in 2021 This trend does not appear to reverse any time soon, with a $190 million hack of the cross-chain bridge Nomad and a $5 million hack of several Solana wallets already occurring in the first week of August."
Many investors, institutional investors, and retail investors have suffered losses due to the fall in cryptocurrency prices since the beginning of the year.
After the information is collected, it is added to a Merkle tree on-chain, with the tokens being stored at "an address derived from the user's personal branch of the Merkle tree."
Regular stealth addresses Vitalik proposed a more elegant and straightforward solution in his response to Nerolation, which would use "much lighter-weight technology." Vitalik recommended using "regular stealth addresses" instead of complicated Merkle trees According to Vitalik, Merkle trees and
According to Ethereum Founder Vitalik Buterin, new private NFTs would be unable to reveal their owners through blockchain data. The concept was discussed in an Ethereum Research post on adding an "ERC721 Extension for zk-SNARKs". Extension of ERC721 to zkSNARKs Nerolation proposed the extension to ERC721 (the NFT standard), explaining that his methodology was "the exact implementation of what Vitalik described" about private Proof of Attendance Protocols (POAPs)
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PrivacytoTransfersStealthProposalBacksForNFTPreserve NEWS UPDATES &
Buterin
Upon signing a message, the collated information is passed on to a leaf of the Merkle tree to prove ownership of the NFT. In that case, the circuit would be able to compare the "calculated roots with the ones provided by the user for verification."
According to him, "The importance of privacy in this type of ecosystem cannot be overstated. When vaccinations become a POAP one day, it would be the worst thing to create a system where the POAP is advertised automatically — to have their medical decisions influenced by what looks fashionable in their social circles." The tokenholders could shield their events from the public similarly to private NFT ticketing In this case, using ERC721 tokens compatible with ZK-SNARK attempts to solve this problem by using stealth addresses that include the user's address, the token ID, and a secret.
In his article introducing the Soulbound Token concept, Vitalik discussed the potential need for private Soulbound Tokens (SBTs).
ZK-SNARKs are unnecessary since "an anonymity set cannot be created for an ERC721." In other words, onchain data will show that an ERC721 has been sent to some address but not its true owner
NEWS UPDATES &
Privacy vs. Transparency Despite the longstanding debate over privacy versus transparency in crypto, the proposal received heated reactions on Twitter. Observers raised concerns that NFT thieves and scammers could hide their tracks using the extension CTO of RTFKT Samuel Cardillo said he is not a fan of the ERC extension because blockchain, in his eyes, is about transparency. He does not believe that the extension should never be used; instead, it depends on the case presented� According to him, he does not want to see only the negative aspects right away Physical Ticketing A number of others were more optimistic about the proposal. Cooper Kunz, CTO at Calaxy, a web3 social token startup, said he could see it as a means of preventing stalking through physical ticketing. Kunz believes the extension could also be used for certifications and credentials that can be verified off-chain. Currently, anyone in the world can see a concert ticket on the blockchain if it is issued with an NFT ticket
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The proposed extension would obscure public blockchain transactions by using zero-knowledge proofs and one-time addresses. "Rather, you simply want to hide the link to the recipient or sender's highly visible public identity," he said This method would result in NFTs appearing to be owned by an anonymous address without any public links to the new owner. In Vitalik's explanation, each user has a private key that can be used as the basis for an elliptical curve group to create new stealth addresses Using the elliptical curve's base, a "one-time secret key" can then be generated, and a paired public key can be derived. Combining the sender's and receiver's keys produces a shared secret, which is used to generate a new address through the use of hashing. As Vitalik concludes, the sender can send an ERC20 token to this address, "In return, the recipient will scan all Svalues, create the corresponding addresses, and as soon as they discover an address containing an ERC721 token, the address and key will be recorded to keep track of their ERC721s and send them quickly in the future." It is up to the Ethereum opensource community to decide whether Vitalik's solution is a more elegant implementation or not It is nonetheless interesting to note that Vitalik appears to accept the need for some privacy within the Ethereum ecosystem. In addition, his thinking has emphasized the need for some assets to be kept confidential. His SBT revelation has opened a new world of possibilities for tokenized assets.
Following is a brief overview of the ongoing changes resulting from the Ethereum merge and whether they will lead to centralization�
The Ethereum merge is getting closer as the developers suggest the required steps have been completed successfully. According to Ethereum developers, the transition will be completed by 15 September. Once the transition is complete, Ethereum will move from Proof of Work to Proof of Stake consensus. As with any change, Ethereum may have repercussions. The power of Ethereum's stakeholders might change as it transitions from Proof of Work to Proof of Stake. Mining ensures the smooth flow of the system through the said changes The staking team will replace them According to analysts, these changes will strengthen the control of a small group of people over Ethereum. While it's not certain, it can't be dismissed.
NEWS UPDATES &
The impact of the Ethereum merger As a result of the Ethereum merger, this blockchain system will undergo significant changes. A computer network called a miner plucks Is ETH 2.0 on the Path to Centralization?
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Ethereum management has ensured that they won't let it happen
Depending on its intentions, Metamask may favor one builder over another. As a result, it will kill the competition in the market and create a monopoly Metamask founder Joseph Lubin has dismissed concerns about changes after the Ethereum merge. Lubin says they will never favor one builder over another. The goal is to help the ecosystem thrive in a healthy, decentralized manner. A small number of builders can censor transactions, affecting some users. As a result, users are concerned about certain issues. In addition to controlling validators, builders can command a high fee Earnings for validators will decline because of the said change According to Ethereum management, the situation is being closely monitored Any change that may lead to centralization will be addressed immediately. Consequently, Ethereum users can rest assured that there will be no centralization resulting from the merger
11www.cryptoweeklymag.com August 2022 | Volume 38 transactions from the blockchain and arranges them in blocks according to a specific pattern. They are responsible for running the system. Energy use will be reduced through the new changes, and miners will be eliminated as a result A recent drop in $ ETH's value indicates Ethereum may face difficulties in the future. Due to the merger, which is expected to reduce energy consumption by more than 90%, there are certain repercussions for users and the system Builders will be the main players in the new consensus system, gathering and arranging transactions. As a result, the upgraded blockchain system will be functional after the validators sign off MEV-boost, a software update, will increase system speed This software upgrade has the uncanny effect of potentially centralizing data The dominance of a single group will affect the system as the transition takes place, so many validators plan to become builders. Is it a road to centralization? The system might be abused by flashbots or other entities that intend to become builders. The Metamask wallet might also threaten Ethereum's decentralization. About 40% of DApp transactions and other DeFi transactions are controlled by the said wallet, which has more than 30 million users
Final thoughts We are about two weeks away from Ethereum merging, so it is getting closer. There will be a shift from Proof of Work to Proof of Stake in Ethereum New power holders called 'builders' are expected to rise due to the new change. If the builders gain too much power, the system may become centralized.
NEWS UPDATES &
NEWS UPDATES &
The Arrest of Tornado Cash Developer Alex Pertsev Prompts Protests in Amsterdam
Staging a protest
However, the greater issue is Pertsev's freedom despite protests, signatures, and funds
As a result of the arrest of Tornado Cash software developer Alex Pertsev in the Netherlands, the international crypto community has taken to the streets in protest. Pertsev's arrest will hopefully be brought to public attention through the protest. In Amsterdam's historic Dam Square on Saturday, Pertsev's wife, Xenia Malik, is urging supporters to demonstrate. "Allegations against Alex threaten to harm the opensource software segment severely," Malik wrote in an email. "This is a major issue as it can affect every open-source developer and many other people in the future."
The 29-year-old Pertsev is suspected of fraud, environmental crimes, and asset seizure� He is involved in the development of Tornado Cash, a crypto-mixer service. American citizens were barred from using Tornado Cash a few days earlier after North Korean hackers used it to launder stolen cryptocurrency�
Opponents are already opposing the arrest. To raise awareness about the reasons for the arrest, Finnish product manager Daria Mironova created a Change.org petition on Wednesday. "Anyone can audit, fix, and improve open-source software, making it flexible and secure," the petition says Developers have no control over how their open-source code is subsequently used. Mironova said she was "really shocked" by the arrest and wanted to help free Pertsev. "In the future, when someone misuses a developer's code, we might see many cases where innocent developers go to prison," she said, calling her effort a fight for free speech.
The use of cryptocurrency mixers is not illegal, but they provide anonymity when making transactions Bad actors have used them to launder illicit funds. Therefore, it raises the question of whether the developers behind these projects should be prosecuted.
There were 1,015 signatures on Friday afternoon To make the authorities aware of the public dissent, Mironova plans to present the petition once it has accumulated 40,000 signatures.
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#FreeAlex is a Telegram group chat where people share their demonstration strategy, hope for Pertsev's release, and discuss legal protection for open-source developers A Gitcoin fund has also been set up by Petr Korolev, founder of Blockchain audit company Oxorio Crypto donations will be crowdsourced in Polygon and zSync, pending approval.
Discussions about protecting developers' rights predate Pertsev's arrest. In January, a non-profit legal defense fund for Bitcoin developers was proposed by former Twitter founder and Block (SQ) CEO Jack Dorsey� For now, Malik wants him freed, even though she fears her husband's case will set a harmful precedent for future open-source developers. "It is the main purpose of this protest to demonstrate people's concern and to attract the attention of the Dutch authorities. She added, "I hope my husband will be released from prison quickly."
According to predictions, the NFT market will develop more appealing products for its industry to expand This virtual market has not been heavily regulated like cryptocurrencies, and it would be feasible for everything to remain that way
NFTs will Reflect Metaverse Development Use Cases to Increase Substantially in Five Years
Astudy report that the NFT market would increase substantially based on an intermediate scenario with companies using Metaverse technology to expand the market. With more than eight months on a bearish streak, it is not surprising that fans of decentralized technology choose to acquire NFTs and not cryptocurrencies. However, the researchers warn that while NFTsare growing in adoption, they are still at investment risk in the short term Concerns grow about scams and problems with the non-fungible token According to Juniper Research, a European research center, investing in NFT could damage investment companies' reputations. On several occasions, NFTs have been linked to illegal acts, such as fraudulent transactions, scams, and money laundering. Nevertheless, its environmental impact is also a Researchersconcern at Juniper Research believe that trading should be regulated to protect investors and stabilize environmental problems. Similarly, research predicts that Metaverse-based non-fungible token trading will increase in the next five years. Similarly, research predicts that Metaverse-based non-fungible token trading will increase in the next five years.
All of this research serves to encourage tech companies in Europe or elsewhere in the world to invest in NFTs. This way, they will contribute to the market's growth by attracting a young community The NFT market will be driven by Metaverse tech
While the entire outlook towards the non-fungible token market looks promising, this will not be possible if the Metaverse technology is not in its development. Instead, the research highlights a high probability that NFTs will grow rapidly if they are based on the Metaverse. This is because the Metaverse is giving value to virtual commerce through the collectibles available in auctions or NFT video games As a result of the NFT's acquisition, the art industry can also add value to its tangible pieces. Purchasing non-fungible tokens online will be beneficial for your long-term growth. Meanwhile, crypto's leading investors are facing a discouraging picture as the market continues to decline� It is expected that Bitcoin and Ethereum will increase in value within the next few days, thus stabilizing the entire market.
NEWS UPDATES &
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T here is a potential for a major liquidation of the NFT market.
In BendDAO, a term called 'health factor' is used to calculate the likelihood of liquidation NFT deposits are protected against loaned ETH values by this feature. The platform auctions deposited assets when the health factor reaches 1. At present, 45 BAYC have health factors below 1.2 on the platform
BendDAO:
There is a possibility that a liquidation cascade could occur if more highvalue NFTs reach a low health factor on BendDAO. To add to that, and very significant, there is a drastic drop in the daily volume of non-fungible tokens on OpenSea, indicating that floor prices are also about to drop. After Celsius went bankrupt last month, the overall DeFi market is already facing liquidation concerns
When BAYC whales (Bored Ape Yacht Clubs) borrowed more than 10,000 ETH, liquidation fears escalated. It is no wonder that NFT holders are flocking to BendDAO to keep their non-fungible assets as collateral and to take out ETH loans backed by their non-fungible assets. On BandDAO, NFTs worth $59 million (32,267 ETH) are currently being used as collateral. BAYC and MAYC (Mutant Ape Yacht Club) collateral account for almost 85% of all loans. Why should you care about BendDAO? NFT holders can use BendDAO as a web3 lending protocol. Depositing Ethereum (ETH) assets on the platform provides liquidity and earns interest (8.15% annual percentage rate). The non-fungible assets of NFT holders can be used as collateral for borrowing ETH. The creators of the platform claim that this increases digital assets' utility. There is a 40% loan limit on the collection's floor price. The platform can, however, liquidate and auction the NFT if its floor price falls close to the loan's value. Borrowers are given only 48 hours to repay the loan, or their assets will be liquidated. Why might the NFT market crash? Non-fungible tokens are priced according to market volume A lower floor price will increase the chances of it being near the loan amount, increasing the likelihood of liquidation A drop in volume will also result in a drop in floor prices for all collections
NFT collaterals Soar on Is the sector headed for collapse?
If a similar event occurs in the NFT market, the industry could suffer crippling consequences
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Rep. Tom Emmer (R-Minn.) expressed concerns with the latest moves by the Treasury Department's Office of Foreign Asset Control (OFAC). "I don't want to imply that I am against OFAC looking into this," Emmer said. A major problem with this software is that it is controlled by code, not a person or entity This is a significant change in the Office of Foreign Asset Control's sanctioning policy," he said. "It would be useful for Congress to inquire with OFAC whether sanction addresses are controlled by people rather than code, and what that means for privacy rights and innovation." According to Rep. Emmer, Tornado Cash's ban on Capitol Hill is driving an internal debate about which agency should oversee cryptocurrencies� He said government agencies now aren't performing their duties. As for digital assets, Congress is responsible for defining "what qualifies or fits the definition of cash, commodity, or security" and deciding which agency should oversee them, Emmer said� As a result of the coin mixer's sanctions, open-source tools, and privacy concerns have been reignited throughout the industry� As Emmer pointed out, Congress needs to "get its act together." The SEC isn't "staying within its lane," Emmer said. Instead, the agency is acting as a "shakedown authority." Emmer pointed to the agency's information requests and subpoenas to crypto
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U.S.
Unprecedented Warns
Sanctions on Tornado Cash
Ascompaniesthereare only 28 days left in the year, "it is unlikely that any crypto legislation will move," Rep. Emmer said, referring to bills clarifying whose regulatory agency should oversee cryptocurrency. Next year, it is "highly likely" that the crypto community will finally get some regulatory clarity, "so regulators know what their lane is and we can hold them accountable."
Congressman Lawmakers said that Tornado Cash's sanctioning by the U.S. Treasury Department was an unprecedented move that threatened privacy and innovation. "Congress should begin to ask what?" according to the concurrence of lawmakers.
DeFi developers have taken protective measures following sanctions imposed on privacy mixer Tornado Cash by the U.S. government.
According to GitHub data, DEX Uniswap has blocked 253 crypto addresses that may have been linked to sanctioned privacy tool Tornado Cash or stolen funds." Over the past few years, these addresses have either been sanctioned by the U.S. government or have directly received hacked or stolen funds from many crypto platforms� As long as Uniswap's smart contracts are used – a decentralized service on the Ethereum blockchain – the 253 blocked crypto addresses can continue to use them The popular Uniswap website, however, cannot be used by them since it is a frontend managed and maintained by Uniswap Labs. The 253 blocked addresses included a burn wallet, among other wallets that were only connected to a bad wallet and may not have been directly involved in nefarious activity
In the past, DEX blocked addresses listed on Treasury's sanctions list. Still, it includes wallet addresses associated with illicit activities, such as stolen funds and ransomware, from interacting with the Uniswap frontend, which is developed and maintained by Uniswap Labs.
Uniswap Blocks Over 250 Crypto Addresses Related to DeFi Crimes
NEWS UPDATES &
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In addition to stolen funds, privacy mixers, known terrorist wallets, and wallets linked to child abuse, these addresses are flagged by TRM Labs for further investigation by Uniswap Labs.
Uniswap blocked 30 addresses associated with Ethereum Name Service (ENS) domain names, a service that ties crypto wallets to human-readable names. Most are likely legitimate users who have succumbed to "collateral damage." As part of a broader risk management strategy, Unswap revealed in an April blog post that it is currently working with blockchain analytics firm TRM Labs to trace a user's wallet activity.
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DoJ Case Alleging NFT Insider Trading Files to Dismiss Case by Ex-OpenSea Executive
NEWS UPDATES &
KuCoin, ZoomEX, BTCC, MEXC, Phemex, XT.com, DigiFinex, Bitrue, ZB.com, Pionex, Bitglobal, CoinW, CoinEX, Poloniex, BTCEX, and AAX, were among the identified exchanges. Their Koreanlanguage websites and local promotions targeted Korean customers, according to the FSC Korean law requires certified information security management systems for unregistered exchanges, which are not provided by unregistered exchanges Security breaches could result from this, they said. South Korea penalizes unregistered entities for operating illegal business activities with a maximum prison sentence of five years or a fine of 50 million Korean won ($38,000). Additionally, intelligence units in the respective countries of the providers will be notified.
South Korea blocks KuCoin and Poloniex in Crackdown of UnregisteredExchangesCrypto
In a motion filed early Monday, Nate Chastain, the former product head at non-fungible token (NFT) marketplace OpenSea, requested the dismissal of insider trading charges involving the sale of NFTs on the platform. The motion, filed in the Southern District of New York, argued that NFTs could not be classified as securities or commodities, a requirement for wire fraud charges In any prosecution under a Carpenter wire fraud theory of insider trading, there must be an element of securities or commodities trading, wrote lawyers for Chastain, referring to Carpenter v. the United States, a 2018 ruling by the Supreme Court. According to his attorneys, the NFT transactions were also processed on the Ethereum blockchain. The lawyers argued that the transactions could not have been used for money laundering due to the blockchain's open-source nature and public Onaccessibility.June23, the Department of Justice (DOJ) indicted Nathaniel Chastain on charges of wire fraud and money laundering involving NFTs sold on OpenSea, the largest NFT marketplace on the internet. Using his knowledge of which NFTs would appear on the platform's homepage, Chastain allegedly purchased the assets before they appeared on the homepage, then sold them at a profit later. Chastain resigned from OpenSea in September 2021 after the DOJ branded his activities the first-ever insider trading scheme involving digital assets. Oval, a new platform for collecting NFTs, was developed by him as a "personalized platform for collecting NFTs."
Acrackdown on foreign businesses operating without proper registration could result in the loss of access to more than a dozen crypto exchanges for South Koreans. According to a press release issued Thursday by the country's Financial Services Commission (FSC), several unregistered providers have been offering services to Koreans without registering with the appropriate authorities. Several platforms have been reported to the country's investigative authority by the FSC, and domestic access to their websites has been blocked.
South cryptotougherKorea'slineon Since Terraform Labs' TerraUSD (UST) stablecoin and its native token LUNA collapsed, South Korean authorities have increased their crypto market oversight The crackdown allegedly targets 16 crypto exchanges operating without registration in the country.
SecurityTokens
EDITORIAL
Mr. Gensler, chairman of the Securities and Exchange Commission, writes, "Just because crypto uses a different technology doesn't mean it should be treated differently from the rest of the capital markets." This logic should be applied by Gensler when determining whether a security is or isn't a security.
The Difference Between a Crypto Token and a Security
It is the SEC's policy to differentiate securities from commodities based on the convoluted legal precedent of the Howey test, even though the traditional rationale is simpler: securities allow payments, but commodities do not In the same way as a stock or bond, any crypto token that makes payments should be treated as a security. Due to their code, most tokens cannot make payments and will never be able to do so. As with foreign currencies, these tokens should be treated as commodities under the law The majority of crypto tokens should be classified as commodities if Mr. Gensler believes in treating crypto and traditional assets equally. If he refuses, the U.S.Congress should intervene to ensure these assets are equal under the law TokensUtility Robert Stone
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Read the sales agreement carefully if you bought an NFT. You may not have bought what you thought you did
Whatneedyoutoknow
Owning an NFT is Complicated
You can buy a cryptopunk NFT, or "nonfungible token." But you don't really own the punk. Robert Stone
According to Chainalysis, people have collectively spent more than $77 billion this year and last on Bored Apes, CryptoPunks, VeeFriends, Doodles, and other NFTs. Many people are unaware of the disconnect between what they think they are getting and what they are actually receiving, according to Michael Young, a partner at Finnegan Henderson Farabow Garrett & Dunner. There is a lack of education, and it is a problem." The Galaxy Digital researchers also argued the marketing for these collections, intentionally or not, gives the false impression that NFT buyers are the owners of these collections Some of the largest collections, including Bored Apes and CryptoPunks, are owned by Yuga Labs. Two of the company's collections, CryptoPunks and Meebits, were updated last week with new terms that give buyers a broad commercial license. However, Yuga Labs remains the ultimate owner of the intellectual property NFTs are actually better than buying a physical piece of artwork, said Jeremy Goldman, an attorney at Frankfurt Kurnit Klein & Selz PC who has represented several NFT makers Not only do the buyers get the artwork, he said, but they get commercial rights over the artwork as well And they have a market value to boot. That doesn't exist in the physical world.
Despite a sharp decline in NFT sales this year, artists, startups, and established companies have jumped on board. The question of ownership looms large in this multi-billion-dollar market. In court, who owns the actual thing for which the NFT is supposedly a digital representation has already been contested. Galaxy Digital researchers examined the license agreements for major NFT collections and found that in most cases, the owner of the NFT is the creator, not the buyer. According to the researchers, NFTs convey no ownership rights for the underlying artwork� Buyers receive a license agreement for personal use Sometimes it allows for commercialization and monetization� Galaxy Digital reports "only one project in the top 25 by implied market cap actually attempts to give true ownership for the underlying artwork to its token holders."
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Investing in the best altcoins as early as possible is the best way to make money with cryptocurrency. Investing in Bitcoin in 2009 would have cost you a tiny fraction of a cent. When Ethereum's token was released in 2015, it traded for less than a dollar. Those two projects are now worth thousands of dollars and have generated significant profits for millions of people.
Best Crypto Investment Strategy - Investing in Promising New Coins
Crypto Exchanges Investing in new crypto coins requires multiple sources to vet them One of the best places to find new coins is on
FEATURE
How to Find New Promising Crypto Projects A few years ago, cryptocurrency struggled in the underbelly of finance. In recent years, they have become mainstream. Investors flooded the asset class creating exponential growth, and prices and valuations have skyrocketed Early adopters of Bitcoin would have reaped tremendous rewards since the protocol's inception. When the Bitcoin network went live on January 3, 2009, the first group of transactions began a blockchain with the mining of the genesis block, which constituted the network's first block. A peer-to-peer digital cash system based on a new form of distributed ledger technology. People worldwide have expanded their boundaries due to the inflow of money into the crypto market� New ways of interacting with the financial landscape have broadened our horizons The use cases for blockchain and crypto are expanding exponentially, along with the value of quality projects. Crypto's investing landscape is much more complex than in the early days� Each coin may have an array of technical terms, many difficult to explain, to sell its value proposition. Currently, more than 20,000 cryptocurrencies are available for trading on crypto markets. How do you find new crypto projects to invest in? Knowing where to look and how to evaluate them can determine if the coin is worth it� Here is a list of the best places to look for new upcoming crypto projects
Early
cryptocurrency exchanges
There are many exchanges. Coinbase lists new coins on its website, but you'll need an account to access them Just search on Google for "Best Crypto Exchanges."
Data Aggregators Data aggregators and social media are some of the quickest methods for finding new coins. A data aggregator gathers information on specific topics. Crypto data aggregators come in handy for finding new crypto coins. Among other things, CoinMarketCap collects and displays information about new coins, their prices, market capacity, and trading volume These services can help you determine whether the coin has potential and what other investors think about it. Fiat value is the total amount of fiat value that a cryptocurrency has on the market In addition to CoinMarketCap, CoiGecko also lists new coins with much of the same information Crypto Tools You can determine whether a coin is valid or a rugpull with cryptocurrency tools like PooCoinCharts and TokenSniffer. Non-fungible tokens, crypto-linked exchange-traded funds, and initial coin offerings are also ways to gain exposure to this developing and exciting market
The Non-Fungible Token market (NFT) Digital assets that have been tokenized - linked to an encoded alphanumeric sequence and stored on a blockchain - are oneof-a-kind digital assets called "Non Fungible Tokens." By confirming ownership through a consensus, the token's network validators establish ownership without any doubt.
Investing indirectly in cryptocurrencies is also possible by using derivatives listed on mainstream exchanges The Chicago Mercantile Exchange (CME)'s crypto futures, including bitcoin and ether futures, are popular with investors looking for indirect exposure to crypto. As brokerages work to convince the SEC to approve crypto-linked ETFs, more bitcoinlinked ETFs are expected to debut on crypto markets in 2022, based on CME's bitcoin futures.
That should get you started Social Media Social media is known for getting a message out quickly. Twitter, for example, is one of the fastest-moving platforms in the U.S. Developers and founders of cryptocurrencies can be found tweeting about their cryptocurrency whenever there are changes It is especially helpful to receive notifications on Twitter for specific keywords. "By typing "new crypto," "crypto release," or just "crypto," you will receive cryptorelated tweet notifications.
There are a number of DeFi platforms that facilitate transactions within their networks using native tokens MakerDAO, PancakeSwap, Uniswap, and Aave are some examples of popular DeFi platforms
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Many new projects start there, allowing new investors to stay updated on their favorites DeFi PLatforms Crypto investments are increasingly being made through Decentralized Finance (DeFi) platforms. Unlike traditional finance marketplaces, smart contracts execute transactions on these platforms
Additionally, NFTs are key components of the metaverse, an emerging technology trend championed by enterprises in the digital world�
FEATURE
Coin offerings (ICOs) Startups and prominent companies alike jumped on the ICO bandwagon in 2018, surpassing venture capital as the primary fundraising method for entrepreneurs After scams proliferated in the ICO ecosystem, the Securities and Exchange Commission (SEC) investigated and tightened restrictions Investing in ETFs or "Exchange Traded Funds"
The Telegram platform is another place where you can stay up to date on new crypto coin developments
Liquidity To sell your crypto quickly, it needs to have liquidity. If you find a cryptocurrency that does not have liquidity, you should consider waiting to see if it develops liquidity It could indicate that a new cryptocurrency isn't yet worth buying or is a scam if other investors aren't trading it in large amounts� Be Careful Cryptocurrencies have emerged from the backwaters of mainstream finance as a viable asset for investment. Investable cryptocurrencies and crypto-related products and services are still a small universe and require careful evaluation as viable assets for investment. Talking to a financial professional if you are considering investing in digital assets or new crypto coins is important to determine if the investments make sense for your financial situation and goals
FEATURE
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The Metaverse Will Transform Our Lives and Change The Course Humanityof Whether it's the front pages of national newspapers or the latest fashion trends, the term "Metaverse" is everywhere. China's Communist Party, the European Union, and the U.S. government are already incorporating it into their policy platforms. However, what is the Metaverse? Eventually, it will serve as the gateway to most online experiences and underpin much of the physical world Science fiction and video games have long been the domain of these ideas. Still, now they will revolutionize every industry and function, from finance and healthcare to education, consumer products, city planning, and dating Many proto-Metaverses are already here, yet these offer only a glimpse of what is to come As we move into the Metaverse, much of our lives, work, and leisure will take place online� There will be a radical reshaping of society More than 1,200 instances of the term "Metaverse" showed up in filings with the SEC in the first half of the year, according to the SEC A total of 270 mentions were made the previous Robert Stone
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Every corporate executive seems to feel obliged to mention the Metaverse and how it fits their company's capabilities better than those of their competitors Few seem to know what it is or what they will build. Virtual reality headsets, blockchains, and cryptocurrencies, as well as whether this is coming soon or decades away, are all fundamental aspects of this new platform where no one yet agrees on fundamentals about what the Metaverse will actually look like. Much has been written about Facebook's name change to "Meta" and the $10 billion it now loses annually on its Metaverse initiatives
Just a handful
Since then, it hasn't become clearer what that term means It has been argued that the lack of coherence is because the Metaverse is still under construction, and its meaning hasn't yet been defined. For example, the Internet existed in the 1970s, but not every idea about what it would become was accurate. It's not just Facebook that stands to profit financially from the hype surrounding the Metaverse Due to Apple's decision to restrict ad tracking, Facebook, in particular, is in a particularly vulnerable position. Although there's a lot of marketing hype (and money) surrounding the idea of "the metaverse," Facebook's vision of a future where everyone has their own digital wardrobe is not separated from its desire to make money selling virtual clothes� The Metaverse is also being prepared by some of the planet's biggest companies. Multiple-billion-dollar launches are being prepared as they restructure internally, revamp their job roles, and redesign their product lines. As of yet, most of the
FEATURE
The Metaverse Cannot Be Pinned Down as of Yet. Metaverses are both current, and future integrated digital platforms focused on virtual and augmented reality. Touted as the Internet's next frontier, they are seen as a significant business and financial opportunity for tech companies and other industries 'Metaverse' combines the words 'meta' and 'universe.' It refers primarily to a future iteration of the Internet that is often called Web 3.0. Online virtual reality and augmented reality experiences will be part of this evolution of the Internet� Technology and social media companies envision the Metaverse as a place where people can interact with 3-D virtual and augmented reality environments through virtual reality headsets, digital glasses, smartphones, and other devices. Users can work, connect with friends, conduct business, access educational opportunities, and visit remote locations using new and immersive ways mediated by technology. A Metaverse experience can take many forms Future users can engage in various activities in completely digital spaces with a continuum of immersive digital experiences available to them. By combining digital and physical spaces, business users who visit via digital glasses or smartphones can experience location-specific immersive digital content or play massive virtual reality multiplayer games via virtual reality Companiesheadsets are creating several digital spaces and experiences to provide more immersive and realistic digital experiences in the Metaverse There are a variety of potential functionalities of the technology, ranging from collaboration platforms based on augmented reality to work productivity platforms for remote teams that enable virtual home tours, for example, for real estate agents Microsoft and Meta Platforms (formerly Facebook) invest heavily in Social VR to create platforms for people to connect socially or work remotely Critics are Skeptical Before the Metaverse can be created, Metaverse technologies must be fully operationalized, and companies' and individuals' willingness to adopt them remains to be seen. It is widely disputed whether the Internet can be expanded into VR, a technology that has mostly not lived up to its hype or revenue expectations so far� Some critics are concerned about the implications of the metaverse vision on health and privacy� No one knows if the mass of people even will want to use it! Gaming and the Metaverse There will be a greater emphasis on virtual reality in the Metaverse, though it is not synonymous with virtual reality Second Life, Minecraft, and Fortnite are examples of internet-enabled video games that incorporate some
FEATURE
24 www.cryptoweeklymag.comAugust 2022 | Volume 38 creation remains hidden from the public. Metaverse products aren't really available for purchase, nor can "revenue from metaverse" be found on a balance sheet. As a matter of fact, it may seem as if the Metaverse has already passed us by if it ever existed at all The crypto market has crashed So too has Facebook's market cap, which has fallen by half since the company changed its name to Meta As a result of the end of the pandemic lockdowns that forced many people inside this year, video game sales have fallen across the board.
Virtual Reality: VR is a simulated experience provided by a virtual reality headset that projects realistic images, sounds, and other sensations within a virtual environment to users Virtual reality involves manipulating objects and interacting with others in a virtual world. Users can move around, look around, and interact with other users. Video games use virtual reality, but they could be used to train soldiers, conduct virtual meetings, or conduct medical training Mixed Reality Virtual and real worlds are integrated to create new ways to interact with physical and digital spaces Mixed reality involves being somewhere along the 'virtual continuum' between the real and virtual worlds rather than solely in a virtual environment
25www.cryptoweeklymag.com August 2022 | Volume 38 aspects of the Metaverse. With these games, players can interact with each other from around the world in a persistent virtual world
In addition to video games, education, military training, healthcare, and the integration of humans and robots, mixed reality has many applications. In a university lecture, 3D representations of charts or concepts can be projected onto virtual reality headsets or glasses for a placespecific simulation. Using their mobile device's camera, Pokemon Go users can see the Pokemon they find in real life Augmented Reality: As with mixed reality, augmented reality creates an interactive way to experience the real world Augmented reality often enhances the real world through digital sensory enhancements, such as visuals, sounds, or sensory data. Among the benefits of augmented reality are real-time interaction, 3D visualizations of both real and virtual objects, and integration of virtual and real worlds The technology might allow shoppers to see products in an environment similar to their home before making a purchase.
A glossary of Metaverse Virtualterms World: Using avatars, users can explore a virtual world simultaneously and independently Virtual worlds are simulated environments in which many people can access and interact simultaneously Besides presenting perceptual information to the user, the virtual world also includes the real-time actions and communication of other users� In massive multiplayer online games, layers can travel between different spaces inside the virtual world and build things. It is believed that virtual worlds can be used in other areas besides gaming, such as medical care and collaboration software. It is also sometimes called a synthetic world when referring to virtual worlds
Virtual Economies In online games, especially massive multiplayer online games, virtual goods are traded or sold in a virtual economy A few of these games allow
'Metaverse' combines the words 'meta' and 'universe.' It refers primarily to a future iteration of the Internet that is often called Web 3.0. Online virtual reality and augmented reality experiences will be part of this evolution of the Internet.
FEATURE
However, society is unsure exactly what the Metaverse means. It gives some pause to see billions invested in what seems like a game. Nevertheless, the Metaverse represents the fourth era of computing and networking, succeeding mainframes in the 1950s, PCs in the 1980s, and the Internet in the mid-2000s. In each era, computing and networking resources were accessed differently, including when, where, why, and how. These changes had profound effects. However, it was also hard to predict exactly what would happen Government research laboratories, universities, and independent technologists and institutions have worked for many decades to build Internet technology today Most of these not-for-profit collectives aim to establish open standards that make it easier to share information among servers, thus making future technologies, projects, and ideas easier to collaborate on. This approach had many benefits. From any device, on any network, anyone could access or build on the Internet. Despite all this, businesses were able to make money on the Internet and build closed experiences through paywalls and proprietary technology. Due to the Internet's "openness," more companies were created, reaching more users and generating greater profits while also preventing pre-internet giants like telecommunication companies from controlling it� Due to its openness, the Internet is also considered to have democratized information, and most of the world's most valuable companies today were founded (or reborn) during the internet era� If multinational media conglomerates created the Internet to sell widgets, serve ads, and harvest user data for profit, we would see a very different internet
The Metaverse & Crypto
Regulatory authorities might limit the ability of social media companies and other corporations to create their own virtual currencies in the future
It is imperative that we, users, developers, consumers, and voters, understand that the world's largest corporations and most ambitious start-ups are pursuing the Metaverse and that we can reset the status quo if we act now. There is no doubt that the Metaverse can seem daunting, if not downright frightening, but this is a chance to bring people together, to disrupt industries that have resisted change, and to build a more equitable global economy.
As with the Internet in the 1990s and 2000s, much about the future is uncertain. Nevertheless, we can understand how and why the Metaverse will work, which experiences will be available when, why, and to whom, and what might go wrong In the same way that Big Tech does and will continue to do, we can utilize this information to shape the future As executives are wont to remind us-along with the lives of millions of people-there are trillions at stake We must all prepare ourselves for unprecedentedtransformationa in human history. During a recent conference, Facebook CEO Mark Zuckerberg unveiled his vision for the Metaverse� The vision would allow people to create their own virtual echo chambers and tailored realities, effectively denying people access to things they disagree with and further polarizing(CONTDsociety)
26 www.cryptoweeklymag.comAugust 2022 | Volume 38 players to exchange real money for game-based money and buy things from each other Cryptocurrencies and non-fungible tokens can now also be incorporated into virtual economies
It is still unclear what cryptocurrency has to do with the Metaverse According to Coindesk, the Metaverse presents a potential $1 trillion in revenue opportunity for the crypto industry, first through virtual economies in the digital gaming industry and then through creating a currency to fuel other metaverse experiences. Further, regulatory changes for the cryptocurrency sector are still in the process of being implemented and could have a significant impact on the appeal of the metaverse cryptocurrency
The Future of the Metaverse A number of companies will be developing the hardware, software, and architecture that will power the metaverse version of Web 3.0. Changing things as simple as how people shop for groceries, navigate through cities, tour apartments, and interact with businesses and advertisements will affect companies outside of technology as well It remains to be seen whether the Metaverse vision will come to fruition or not. Nevertheless, it has the potential to disrupt multiple industries and sectors by requiring them to spend more money on technology or compete with each other to provide consumers with metaverse experiences
FEATURE
GET TWO ISSUES FREE WHEN YOU SUBSCRIBE SUBSCRIBECRYPTOMAG.FINANCETODAY
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This is all done with Non-Fungible Fungible tokens (NFTs) that someone owns Third parties and advertisers could place unique ads and overlays in someone's virtual world. It could result in a fractured reality where we all exist in different worlds with all the aspects of those worlds owned by third parties, whether government or private Two people can be walking down the same street in the future and see very different things due to the augmented reality glasses they're wearing. A conservative may "reality block" out aspects they've been conditioned to oppose, like a fertility clinic Neither person would notice a gun store if it were right in front of them. Due to the data that Facebook, now Meta, has collected on its users, others could have paid for third-party apps that instantly let them know identifying characteristics of people they see on the street. For example, a big block of virtual letters spelling out "Republican" hangs over the head of one passerby. This is all public data companies and governments have their hands on, and they own the data they push on us This is the power of NFTs at work� As everyone seems to think, they are not solely original works of art but essentially data "real estate." The so-called real estate can be anything and not exclusively art! Thus, different people perceive the same street, even though they are in diverging realities within this artificial overlay of the real world. The Metaverse could break up the world as we know it, creating a personalized world for each person made up of data pulled in from private and government parties, potentially worsening political polarization and holding enormous persuasion power We will be segmented into our own custom realities and driven by the ideas and motives of others instead of being in our own information bubbles. Augmented reality technology offered through this grand metaverse concept, promoted recently by Meta CEO Mark Zuckerberg, has the potential to transform our lives The Metaverse is one big vat of private ownership through NFTs and little regulation or safeguards As Facebook and other social apps have done before, social media could also create enormous difficulties for society and our ability to agree on what is real. It may be true that the risks associated with the Metaverse outweigh the benefits, but this new approach to the Internet is inevitable. The train is already in motion, and it will not stop Through targeted news feeds and targeted advertising, we already allow third parties to mediate our lives due to the massive amount of information that companies have gathered about us on social media. Perhaps a human simulation engages you in conversation in line for coffee, and you believe them to be real. Yet, they covertly discuss whatever an advertiser paid them to promote, whether it is potato chips. While most people believe they see the same thing as everyone else, that may not be the case since algorithms can target content to your echo chamber. That will be amplified in a virtual world, where third parties can dictate what you see at work, home, and on the street. It'll be more challenging to identify misinformation and division Imagine if a company like that controlled your entire field of view, like Facebook, for example? And even scarier, what about governments or political Regulationmessages?isessential for a healthy Metaverse. In a borderless virtual world where private enterprises and governments own all the pieces and control the direction we take, what entity would be responsible for governing and enforcing these rules? We are in the process of finding that out. There is only bending with the onslaught It will hit us like a shock wave, and we will be consumed, so bend, please. Don't break. It's what is coming. It's already here. We are caught up in the tsunami as we speak, and I just wash by from the current of its devastation flow shouting to those who may hear of its presence, to bend or we shall all be broken. It seems all we can do is remain aware of what is happening and prepare ourselves� Immense forces of conditioning and expectations surround us, and the dark forces push, push, push and never stop pushing. The future is inevitable, and some may see but too few to make a difference, it seems. I shout from my solidly constructed pedestals to a multitude of knowing and hearing ears as we gather in recognition of a tsunami that is upon us. When you think about it, the roots nourishing the future have been wreaking havoc for generations now. I have shouted, whined about it, and cried about it. All the while, the monstrous shadow of the next big wave towers over our heads
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By Invitation or Referral Only, "bitcoinblack" is an exclusive private community of a select group of members that issues the world's only global nolimit black metal crypto credit card. Millionaires and billionaires worldwide chose the card to become a member of an exclusive club that provided them with access to the world's most exclusive nolimit black crypto credit card. Users can instantly use crypto to make payments in USD wherever credit cards are accepted with the bitcoinblack credit card, which has no spending limits. As a result of its ease of use and ability to provide users with instant access to their money, bitcoinblack has grown in popularity For those who wish to use their crypto to make purchases, bitcoinblack is quickly becoming the go-to option. Prakash Chand, the CEO of bitcoinblack, says that people with a lot of crypto wealth need an easy way to spend it. The web app and soon-tobe-released iOS/Android app will allow members to load their crypto and then spend it with the best conversion rates and high limits. bitcoinblack is accepted in over 140 countries There are a number of premium benefits available to bitcoinblack members. The program provides rewards of up to 10% back in exclusive $SPND tokens wherever credit cards are accepted worldwide $SPND tokens can be redeemed at the Haute Living Luxury Marketplace, an online boutique featuring luxury watches, purses, cars, charter jet deals, and access to private mansions Bitcoinblack and Haute Living Magazine have teamed up to create the Haute Living Luxury Marketplace. The marketplace features products from some of the world's most prestigious brands, as well as events with some of the most famous personalities. Only members have access to the marketplace In September, bitcoinblack members can attend private functions with NFL star Tyreek Hill, fashion influencer Olivia Culpo, NBA star Carmelo Anthony, pro golfer Bubba Watson, and Michelin star chef Alain Ducasse CEO Chand stated that bitcoinblack's crypto credit card is becoming the #1 choice for high-net-worth individuals to convert crypto to fiat. "We are committed to providing our members with the best possible experience, including exclusive access to the world's most luxurious products, services, and luxury events." Membership in bitcoinblack is by invitation only. Visit bitcoinblackcreditcard.com to request access Robert Stone
FEATURE
Bitcoinblack's Crypto Credit Card for Crypto to Fiat Exchanges Has the Rich Clammoring for Membership
Passwords
We must use strong passwords to protect our data and identities. Passwords that cannot be guessed to help prevent hackers and cybercriminals from gaining access to your computer, mobile devices, or websites where you have accounts, stealing your identity, or draining your bank accounts. Do that, and even a quantum computer will not be able to touch you. Using brute force, attackers can crack simple passwords by trying every possible password until they find the correct one. This is usually accomplished by using a dictionary attack, in which an attacker attempts known passwords and words until they find one that works. On the internet, there are databases containing names, dictionaries, and slang words in scores of languages, along with passwords found in data
Nevertheless,breaches. people generally don't store passwords in databases unless they use them on multiple websites - under one username and one password - and we recommend using unique, random passwords, like those I generated with my password manager� The reason why you shouldn't reuse the same password across multiple accounts is because of this� This kind of password takes a lot more computing power to crack, and even a quantum computer cannot crack it with personalized random factors you may come up with added to the mix Here is an example Eventually, quantum computers will become more common, but what will happen? If you were to crack the password above using a standard computer, it would take a hundred millennia, while a supercomputer or botnet would take a few years. Minutes or even seconds could be spent cracking these passwords Computing speed has evolved Despite exponential increases in raw speed, quantum computing will change all this� Quantum computers will be several orders of magnitude faster than today's fastest computers. Google's quantum computer is 100 million times faster than any standard computer It only took 220 seconds to calculate something that would take 12,000 years on the world's fastest supercomputer
The Impact of on Computer Security and
31www.cryptoweeklymag.com August 2022 | Volume 38 FEATURE
The Wikipedia article on quantum computing states that quantum computers can solve certain computational problems substantially faster than classical computers, such as integer factorization (which underlies RSA encryption) In quantum cryptography, data is encrypted using quantum computing, and postquantum cryptography examines ways to ensure encryption that can resist quantum computers' bruteforce strength. With these new tools, passwords and encryption are under pressure to keep up� Size matters Password length and the number of characters play a crucial role in their security. With a four-digit PIN, for example, there are only 10,000 possibilities. One million possibilities are available with a six-digit passcode. In both cases, people usually use predictable patterns such as birthdays, anniversaries, etc. The password becomes much harder to crack if you add letters to it. The problem becomes more difficult by several orders of magnitude when symbols and other special characters are added As a password's length increases, the amount of time it takes to crack it increases exponentially All those times would be drastically reduced if quantum computing were used to crack passwords. When quantum computers are designed to tackle password cracking, passwords that may be difficult to crack today might become trivial.
FEATURE
A key's length is also important Even with a much longer, key-which, as with passwords, increases the difficulty exponentially-a quantum computer may be capable of cracking today's encryption (which often uses a 128- or 256-bit key length) A quantum computer could crack a 2048-bit encryption key in 8 hours Even though 128- and 256-bit encryption keys may suffice, for now, we rarely use longer keys due to the
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encryption)(whichasclassicalsubstantiallycomputationalcertainproblemsfasterthancomputers,suchintegerfactorizationunderliesRSA
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Eventually, however, we may see encryption key lengths increase with the increase in processing power of standard devices In the 1990s, 128-bit keys were considered "military grade" by the U.S. government, and processing technology has advanced greatly since then, so it's reasonable to expect most devices to be able to handle much longer keys and more powerful encryption algorithms in the future Using multifactor authentication, advanced biometrics (such as Touch ID and Face ID), and other techniques will be necessary for passwords in the future. There is a possibility that quantum computing will lead to the demise of passwords altogether Governance in a decentralized system: a problem It is by design for many cryptocurrencies, like Bitcoin, to be decentralized, overseen in effect by anyone participating in their network Attempting to upgrade a cryptocurrency's inner workings requires more than half of its participants to "fork" into a new version� Hunter Jensen, chief technology officer of Permission.io, a company that uses cryptocurrencies for targeted advertising, says governance structures will be the real test for cryptocurrencies. Postquantum governance could reward cryptocurrencies with strong central controls, like Dash with its masternodes or even "govcoins" issued by central banks. It poses a problem for the crypto community, which is often skeptical of authority. "Decentralized currencies will suffer if their communities are disorganized and slow to act," commented Andersen Cheng, chief executive of Post Quantum, a Londonbased company that sells postquantum encryption Cryptocurrency has other quantum problems Another risk is that quantum computers could disrupt the digital fingerprinting technology used in blockchains, called hashing. Technology updates will be able to fix that, however. Quantum computing can also be used to hack cryptocurrency wallets used to track digital assets Blockchain wallets store private keys that enable users to access their assets In the event of a successful attack, a wallet could be emptied. The only answer is that crypto must evolve with the new advanced cryptographic systems of the future or face the dustbin of history.
FEATURE
The Wikipedia article on quantum computing states that quantum computers can solve
PROJECTcookiesaleiocookiesalekodicoinkodi_coin 1 PROJECT 2 Cookie Sale Kodi (KODI) cookiesale kodicoinofficial HIDDEN gems
Cookie Sale launched in February 2022, and aims to become one of the biggest launchpads for tokens on the BSC. With its sleek design and easy-to-use interface, CookieSale looks to be adaptable and adoptable for developers and a safe environment for investors CookieSale works side by side with Kodi’s marketing & advertising agency Pitch. This benefits developers and holders of Kodi as well As a developer, you will be able to use CookieSale as an “A to Z” platform.
One notable feature that stands out amongst other launchpads is that CookieSale will only charge a flat fee for listing. Developers will be able to launch the right way, without the fear of a large sell from the launchpad taking profit.
Kodi’s mission is to create a one-stop-shop IDO platform and provide investors with an interactive Entertainment Network that will keep users engaged, informed, and entertained while investing in the crypto space Clear Vision Kodi`s vision is to create an ecosystem that will be a driver in promoting a safer economic environment for crypto investors to participate in and for developers to grow their projects Kodi is creating an industry-first Entertainment Network that will become THE place for crypto investors to socialize, have fun, win prizes, and learn about everything crypto.
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From advertising to zhooshing up your “cookie” there will be something that satisfies almost anyone’s tastes. As a Kodi holder, a percentage of the revenue generated through CookieSale will be bought back into Kodi and then airdropped to holders, holding 10 million or more Kodi tokens Backed by powerful auditing companies such as Certik, SpyWolf, Brewlabs, Dessert Finance, Contract Checker, and HashEx developers will be able to choose between three pre-audited contracts or create their own and have it audited separately Other key features include liquidity locking, anti-bot features, custom airdrops, visual cues to aid in identifying safer investments, and more.
Is there anything more about Kodi? How do you, as an investor benefit? Kodi by itself, is an entertainment project Kodi plays games post podcasts, do AMAs, have tournaments, live streams, and play plenty of music. At Kodi there are two subsidiaries. "Pitch" being the in-house advertising agency, which is a one-stop shop, all things content creation, both in crypto and fiat. Branding, websites, commercials, you name it Kodi does it. The Pitch Advertising Agency and CookieSale launchpad Cookie Sale will work in unison to become the go-to destinations for developers to build their brands and launch their projects With Cookie Sale, you can launch your project from A to Z. Gone are the days of taking your token supply. Kodi simply charges a flat fee, no strings attached So how do you benefit as a holder? Well, if you're, a holder of at least ten million KODI you receive BNB, rewards automatically deposited into your wallet. You also can participate in Kodi`s weekly games where you can win, BNB for free. But here's where things get really exciting. Two percent of every transaction goes straight into the Kodi treasury contract The treasury buys back Kodi tokens, creating an increase in price, and stores them in the treasury. Twenty percent of these tokens are burnt and 80% gets used to top up the staking pools as needed revenue generated through pitch and cookie sale also gets added to the treasury contract This creates the ever-increasing price floor, whilst also removing tokens from circulation Go say hi on their telegram community, or check out their website at Kodicoin.com.
www.estatex.euCLICK HERE www.estatex.eu
advanced trading features like margin accounts and
The two different types of There are only two categories of exchanges: centralized and decentralized There are advantages and disadvantages to each Centralized Exchanges
cryptocurrency
your
you
You can earn interest
U.S.-based users are less likely to have access to futures trading on exchanges. on crypto holdings features like crypto staking or crypto loans Keeping up with all things crypto is easier when have access to the
through
36 www.cryptoweeklymag.comAugust 2022 | Volume 38 BEGINNERS guide What Is a Crypto Exchange, and How Do they Work? Crypto exchanges allow you to buy and sell cryptocurrencies, like Bitcoin, Ether, and Dogecoin. You may be familiar with other trading platforms that work similarly to differentthesell,accounts,exchanges.cryptocurrencyWiththeiryoucanbuy,andspeculateincryptomarketwithordertypes.
(CONTD )
crypto exchanges
crypto
best exchanges' educational offerings
Almost all crypto trading happens on centralized exchanges One organization manages centralized crypto exchanges (CEX). Users can convert their fiat currency, like dollars, directly into cryptocurrency on centralized exchanges, making cryptocurrency trading easy Some crypto enthusiasts oppose centralized exchanges since they go against cryptocurrency's Robert Stone
A centralized exchange also poses a security risk: hacking. CEXs hold the crypto traded on their platforms, at least temporarily, while trades are processed, increasing the risk that hackers can steal assets. Recently, centralized crypto exchanges have beefed up their security measures to combat this risk. Customers' assets are now stored offline in the most advanced crypto exchanges, and crypto losses are covered by insurance policies in case of hacking, among other strategies
For example, decentralized exchanges don't always allow users to deposit and exchange dollars for cryptocurrencies. Therefore, you must already own crypto or use a centralized exchange to obtain crypto for use on a DEX. Direct peer-to-peer trading is also likely to take place. If liquidity is low, you may need to accept concessions on price if you want to buy or sell lowvolume crypto quickly This may result in a harder time finding someone interested in buying what you have to offer Global Crypto Exchanges Bitcoin, ethereum, and other digital assets can be traded worldwide on nearly 600 cryptocurrency exchanges. There are, however, wide variations in costs, quality, and safety, with an eye toward regulatory compliance Crypto Exchange Fees When you buy and sell crypto on an exchange, trading and withdrawal fees are charged Fees associated with trading Depending on the exchange, traders may be charged a flat percentage for the amount of crypto they buy or sell, or the exchange may charge different percentages for makers and takers In an exchange, makers add liquidity to the market, meaning they don't fulfill standing orders. On the other hand, a taker removes liquidity from an exchange by executing orders awaiting a trade It depends on the exchange, but maker fees are usually lower than taker fees�
The responsibility for facilitating and verifying crypto trades is distributed by decentralized crypto exchanges (DEXs). DEX networks work similarly to cryptocurrency blockchains, with anyone able to certify transactions. By doing so, an exchange can be held accountable and transparent and continue to run regardless of the company's state.
Decentralized exchanges are not only less user-friendly from an interface standpoint but also when it comes to converting currencies
It is possible to reduce your risk by transferring crypto to a separate, off-exchange cold or hot wallet if you prefer the convenience of a centralized exchange
decentralized ethos Crypto users may find it even worse if the company or organization requires users to comply with Know Your Customer (KYC) regulations. These aim to prevent money laundering and fraud by requiring each user to disclose their identity
Choosing an exchange with the lowest costs is ideal, but dwelling on maker and taker fees too much can be counterproductive. This is because you cannot select whether your order is processed as a maker or a taker If you want to trade a certain amount monthly or hold an exchange's native cryptocurrency, you're better off looking at overall fees and discounts(CONTD)
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Decentralized Exchanges
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A variety of educational resources When you first start out with cryptocurrency, look for an easyto-use platform with plenty of educational resources to help you learn about this complex, rapidly developing market Accessibility You shouldn't assume that an exchange is available in your country or state just because you can access its website. Legally and tax-wise, many state and federal governments still have a lot of figuring out to do with crypto.
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Withdrawal Fees Coin withdrawals from exchange platforms are often subject to fees� There are typically different withdrawal fees for different cryptocurrencies. When moving crypto to a third-party wallet or exchange, this can be an issue. Fees for other services Borrowing money may incur additional fees if you use more advanced trading strategies, such as margin trading. The fees for quick buys on beginner-friendly exchanges like Coinbase and Gemini are higher. You can avoid them by learning how to use an exchange's trading platform.
Card issuers and exchanges may charge a premium if you use a credit or debit card to make a purchase. Cash or wire transfers are the best methods of buying crypto. What to look for when choosing a crypto exchange When choosing the best crypto exchange, you should also consider security, trading volumes, educational resources, and whether an exchange lists the cryptocurrencies you're interested in buying. Security Hackers have become increasingly interested in crypto becoming more popular and valuable. Millions of dollars have been lost due to hacks. Even though exchanges often reimburse users who suffer losses due to theft, nobody wants to find themselves in such a position The risk of your crypto purchases can be minimized by spreading them across multiple exchanges. It would be best if you moved your crypto holdings from an exchange's default wallet to your own secure "cold" wallet as soon as possible. The best thing to keep your crypto safe is using a non-internetconnected storage option. However, you will need to record your passcode carefully, or you may lose access to it.
Cryptocurrencies are bought and sold at different rates It is important to note that some crypto investment apps claim there are no fees, but this is not entirely true Rather than charging you an outright fee, they charge you a spread. When you pay a percentage trading fee, your spreads will be much cheaper than if you pay a spread
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The environmental impact of crypto has been questioned. Despite varying estimates, Ethereum usually consumes one-third as much electricity as Bitcoin does despite some 40 percent of bitcoin mining's electricity used coming from green sources. Using proof-of-work mining, specialized computers powered by massive amounts of electricity are needed to process and verify cryptocurrency transactions on blockchains. This system uses thousands of computers worldwide to compete for the privilege of appending a batch of transactions or "block." A reward is given to the miner who succeeds. Satoshi Nakamoto, the pseudonymous creator of Bitcoin, first envisioned proof-of-work mining as essential to securing the network, and he would never dream of modifying it. However, Ethereum is about to undergo a monumental change that will significantly reduce the impact it has on the environment� Its founder, Vitalik Buterin, launched Ethereum in 2015 with a proof-ofstake mining system that doesn't require energy-guzzling computers to mine� This move will reduce the network's energy consumption by 99.5 percent, according to the Ethereum Foundation, which spearheads updates to the Ethereum blockchain. The big switch-up takes place on September 14th, and is known as Merge Over the next few weeks, a couple of upgrades will lay the foundation for a segue between chains. Following a successful dry run on a test blockchain, called the Goerli chain, on August 10, the Ethereum community is hopeful the long-awaited switch will finally occur. How does Proof of Stake work? There are a lot of varieties of proof of stake, with hundreds of cryptocurrencies using some form of it Instead of using hardware to secure a network, proof of stake uses incentives Using your laptop, you can put down a "stake" - a certain amount of cryptocurrency - in the network without needing an expensive mining computer You can therefore earn crypto rewards and fees by validating certain blocks,
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The Future of the World May be Forever Altered After Ethereum's "Merge"
A key difference between Ethereum and Bitcoin is that, while Bitcoin is primarily about payments, Ethereum allows the creation of blockchainbased applications and smart contracts, which are self-enforcing subroutines. It won't change much in terms of the apps that can be built on Ethereum after the merger, Drake says By sharding, the network will be divided into parallel chains following the Merge." As a result, Drake says, the network will be able to handle a higher volume of transactions and users will no longer have to pay exorbitant transaction fees. Ethereum Foundation estimates that a sharded Ethereum will eventually reach 100,000 transactions per second if everything goes according to plan The reduction of energy consumption is a more pragmatic reason to celebrate the shift "Despite the nearly 2-fold increase in Ethereum value since June 2022, Frank Muci, a policy fellow at the LSE Growth Lab Research Collaboration, says that "no product or service built on the blockchain will change materially� The environmental footprint will be considerably reduced of the Ethereum database, which may lower its reputational price."
Where Will Miners Go From Here?
All the computers and energy contracts that Ethereum miners use to generate their income (in ether rewards) will suddenly become useless There are reportedly several groups working on forking the blockchain into a separate network that will not implement the proof-of-stake shift and allow them to continue mining CoinDesk reported that Chandler Guo, a miner and blockchain entrepreneur who promotes the fork, came up with the idea after several miners called him concerned about shutting down their Abusinesses.hypothetical proof-of-work ether token will be listed on Poloniex by Justin Sun, the founder of Tron and owner of crypto exchange Poloniex postMerge. In spite of Sun's enthusiasm for the Merge, he says, "nearly half of the Ethereum community believes proof-of-work is safer and more decentralized than proof-ofstake. Therefore, proof-of-work is still crucial to building the Ethereum infrastructure and community." In a decentralized blockchain industry, forks are by definition allowed, but Drake doesn't believe they have "a lot of credibility." In different communities, there is a strong consensus that proof-of-stake is the way to go. "This upgrade is not at all controversial." He says that most decentralized finance protocols and stablecoins have already expressed their support for the Merge and will not provide services to a hypothetical continuity proof-of-work chainthereby risking becoming a semideserted blockchain with few applications� Sun plans on "donating some forked tokens to the community and developers to help build Ethereum ecosystems" and organizing hackathons in order to promote the development of proof-of-work Ethereum ecosystems if a fork occurs
FEATURE usually through a random process. You will lose some or all of your stake if you try to game the system, for instance by doctoring a block.
Ethereum's stakers must deposit at least 32 ethers ($58,722, as of August 17) to become validators, and if they are dishonest, they could lose everything they own. In a nutshell, Drake describes Ethereum's proof of stake as "stickheavy" versus "carrot-heavy" or reward-based. This architecture also makes a 51% attack harder, according to Drake It would take more than half of Ethereum's staked ether, which is around $25 billion at the moment, for an attacker to corrupt the chain, he says. "It is possible to rewrite historybut it is a one-time attack that will cost them $25 billion in losses. It will cost them $25 billion to attack Ethereum a second time." That is more expensive than an attack on proofof-work Ethereum, which could cost up to $5 Ethereum'sbillion.value will have to remain fairly high throughout the years in order for that assumption to hold true In the event that it crashes to negligible levels, attacking the network will become less expensive. "Ethereum's price is highly correlated with security," Drake says. Nevertheless, he believes that ether's value will increase substantially postMerge. As a matter of fact, ether's price has been rising since the Goerli test What Is It's Importance?
It differs from proof-of-work mining's role within a blockchain ecosystem, which is to ensure its chronology cannot be altered. A malicious actor would have to re-mine the entire chain if they wanted to rewrite history, for example, by showing that a certain crypto transaction did not take place It would take them more than half of the network's computing power and electricity to accomplish this, which is called a "51% attack."
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Last week in part two, I went into great depth about keeping your crypto secure from attacks. This week I will add a little professional advice I have adopted over the last decade of being involved in the industry full time, on top of what has already been covered in the first two parts. A strong security habit is essential for crypto users to keep their tokens safe As cryptocurrency and NFTs become more popular, hackers are finding new and improved ways to steal your valuable assets. To avoid getting hacked, you need to take crypto security seriously Crypto users should never become complacent when it comes to securing their assets if they're planning on staying long-term in the industry. We hear far too many stories about people losing their crypto due to hacks, phishing attempts, or simply losing access to their wallets. While I've covered some of today's article already, I'll emphasize a set of strong security habits to keep your crypto investments safe Suppose you plan to hold on to your recently purchased crypto for many years. The importance of selfcustody lies in the fact that only you can access your assets and account A wallet's private and public keys are generated every time� If they are not your keys, they are not your crypto tokens Private keys are similar to passwords for your email account. Tokens can be received by anyone with a public key, just like messages can be received by anyone with their email address.
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Part Three: How to Keep CryptocurrencyYourSafe
Robert Stone
The private key is also necessary to access the funds held in the public address and determine actual Cryptocurrencyownership wallets use seed phrases instead of private keys since they are typically long strings of characters. You receive your seed phrase when you set up your wallet, which contains 12–24 random words as your private key� Also known as mnemonics or recovery phrases, seed phrases are used to remember information� Wallet owners should never share seed phrases with anyone else � Usually, if they lose it, they lose their cryptocurrency forever Accessing a wallet's seed phrase would give third parties control of its assets
45www.cryptoweeklymag.com August 2022 | Volume 38 Getting Out of the Comfort Zone Crypto users are generally most at risk from wallets and exchanges Following these tips can help you keep your assets safe for the long run Backing up your private keys or risk losing your crypto forever! There are ways for hackers to find it, and they will! The seed phrase should always be written down and kept in a safe place from which it can be retrieved (only by you). Your keys should never be backed up in the cloud or emailed to yourself, as servers are easily hacked Do not save them on your computer Use a hardware wallet. Get your crypto safely in your own custody! Cold wallets are devices that store your private keys and are never connected to the internet unless you are actively transferring your funds in or out Almost impossible to hack, cold wallets are ideal for long-term storage. Network safety is important, so don't forget that! When using a public internet connection, use a VPN. Watch your home router constantly, as you never know when your neighbors may be trying to sneak through Make sure you don't become the guy at Starbucks whose crypto gets stolen Make sure your email is secure. Your exchange account can be accessed quickly if an attacker compromises your email account To compromise an account, hackers must steal a physical hardware device, called a security key. For security purposes, all backup emails and phone numbers used for your personal verifications should be removed from your email account in case a hacker gets in. Enable two-factor authentication instead. Consider using an encrypted email service like Protonmail Do not open phishing emails or other suspicious messages, especially those that contain links or attachments Clicking on a link can get you hacked! Make sure your passwords are unique. Each exchange you use must comply with this rule Make sure you change your master password often using a password manager like 1Password or LastPass. Combining numbers, uppercase, lowercase letters, and special characters can also help generate strong passwords Stay safe while browsing the web. Passwords should never be saved in your browser, and malicious extensions should be avoided. By bookmarking crypto sites you use frequently, you can avoid fake websites that look like the real ones and use privacy-focused browsers such as Brave to protect your privacy SIM swaps should be avoided. Hackers use SIM swaps to switch a victim's cell service to a SIM card in their possession to commit a malicious act To fool the cell service company, the hacker uses social engineering skills. Using SMS or email recovery, the hacker gains access to services or accounts Set up a PIN through your service provider that must be input every time you access your account to avoid SIM swaps Be safety specific to each exchange. Self-custody is what crypto was built for. A withdrawal must be processed within a time limit in time-locked vaults To ensure that only wallets you control can receive your funds, it is recommended to "safelist" addresses. Doing this will give you time to regain control of your account if it is compromised. You will have peace of mind if you minimize the risk of getting hacked Storage security may not seem important now, but major gains can easily disappear if you fail to take it seriously FEATURE
How To Make Money With
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CryptoThe Ultimate Guide of weekthe NFT How to make money with Crypto for beginners - Are you a beginner in Crypto who wants to learn how to make money with Crypto in 2022? In this video, we'll talk about ways of making money, investing and making profit. These instructions will help you earn your first Bitcoin.
