Crypto Weekly 23/05/2022

HIDDEN GEMS

BEGINNERS GUIDE

CRYPTO Page 28

REGULATING CRYPTO AS SECURITIES Page 08

CULTDAO SUPPORTS ANONYMOUS

Page 30

VIDEO OF THE WEEK

Page 35

WEEKLY $2 cryptoweeklymag.com

May 2022 | Volume 27

STOLEN ASSETS RECOVERED Page 16

RAPID DOWNTURN OF NFTS Page 20

Page 09

LIFE SAVINGS GONE PHISHING ATTACK Page 10

Page 22

METAVERSE INVESTING TIPS Page 26

KUCOIN RAISES BILLIONS Page 12

CHINESE CLANDESTINE MINING Page 14

CRYPTO HAS ISSUES Page 32

01

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CONTENTS $2 cryptoweeklymag.com May 2022 | Volume 27

16

11

30

07

CZ, Binance billionaire, Say's Crypto Needs to Get Real

08

Regulating Crypto as Securities is SEC Chair Gensler's Top Priority

09

CultDAO Provides Support to Anonymous Against Unjust Government Actions

10

Phishing Attack on Crypto Websites Targets MetaMask, DexTools and CoinGecko Users, and More

11

Billionaire Chief of FTX Says Bitcoin Has No Future as a Payment Network

12

Crypto Exchange KuCoin Raises $10 Billion in Funding

14

Despite Bitcoin Ban, China is Mining Bitcoin Clandestinely According to Cambridge

16

Stolen Assets Recovered by Binance Shows Crypto Isn't a Haven for Criminals

20

NFTs and Their Rapid Downturn Begs for Reasons Why

22

He Thought He Was Safe, But Hackers Robbed a Man of His Life Savings

24

There is No Good Reason to Quit Crypto Despite the Recent Crash

26

Tips for Metaverse Investing

30

Beginners Guide: "Rug Pull" Wisdom

32

Crypto has Issues that Stablecoins Fix

SEC Commissioner Hester Peirce Says Crypto Regs Must Account for 'Trial and Error' in the Market and Stablecoin Variation

38

Is Now the Right Time to Invest in Crypto?

36

CRYPTOWEEKLY CEO | Nathan Hill

LETTER FROM

THE EDITOR

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

Welcome to Crypto Weekly

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

H

ello, and a warm welcome to the 27th issue of Crypto Weekly.

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

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

Another week has gone by and I have been mining the search engines for the best stories in the news, current happenings, and the ideas the world is excited about in the cryptosphere.

If you have been following me at all, most of you will know I believe Blockchain is an intrinsic system of incontestable truth encoded in a way that it simply does what it was designed to do, flawlessly. Publicly transparent as that is the intention of its design. Blockchain, programmed by codes, produced by the people, for their best use of the world community, will one day be the foundation for our future systems of government and justice. It will be a natural evolutionary process and will take some time to work out all the kinks. Freedom is coming.

As usual, a lot of stuff has happened in the last week because the music never stops in the crypto sphere and the time keeps rolling on. I hope you all enjoy what we have brought together for you this week. Please let us know your thoughts, and if you would like to see something featured, please do get in touch.

Editor@CryptoWeeklyMag.com editor@cryptoweeklymag.com

Follow Us Stay Connected Robert Stone Editor

cryptoweeklymag

NEWS NEWS 7

7

Crypto Weekly Crypto Weekly

CZ, Binance billionaire, Say's Crypto Needs to Get Real Shiba Inu and Dogecoin (the latter developed as a joke) rose in popularity during the two-year bull run in cryptocurrencies, largely thanks to coordinated buying via social media communities like the "SHIBArmy."

The Crypto Market Crashes

I

nvestors lost faith in Terra's ability to maintain its dollar peg, causing its value to fall. Some speculated the sustained pressure might have come from external attackers in the rival world of centralized finance.

currencies are backed by nothing but fan support, and none act as legal tender - apart from Bitcoin in El Salvador and an ever-

increasing number of nations because it has a use case. None of these so-called "Meme" coins do. Immediately following this week's meltdown in Terra and Luna, Binance's CZ urged his followers to take a more modest stance. "We must respect the market more than anything else and not be arrogant.

Build step by step, day by day," he wrote.

Terra has no collateral backing its value like there is with Tether, but a formulaic process of mining and then destroying its very own coin supply does so in a one-to-one ratio to the dollar. Despite the stable exchange rate, it had advertised a 20% return every year using its Anchor protocol, which some have compared to a Ponzi scheme, while others have said it was merely a marketing tool to boost acceptance.

Crypto fans often ridicule traditional market investors for being "normies" since digital

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May 2022 | Volume 27

8

NEWS Crypto Weekly

Regulating Crypto as Securities is SEC Chair Gensler's

Top Priority

T

he Securities and Exchange Commission chairman, Gary Gensler, has reiterated that most cryptocurrencies are securities, as the administration aims to regulate the market.

Despite the debate over which financial regulator should supervise crypto, the chairman continues to stake his claim on the agency's authority and oversight.

As he discussed reducing risk and increasing transparency of derivatives at the International Swaps and Derivatives Association's Annual Meeting, Gensler said most crypto tokens involve a group of entrepreneurs raising funds from the public. According to the Supreme Court's Howey test, most crypto tokens qualify as investment contracts.

In response to Gensler, several cryptocurrencies are more like digital gold and commodities. The Securities and Exchange Commission (SEC) should have more jurisdiction over crypto than the Commodities Futures Trading Commission (CFTC).

May 2022 | Volume 27

A derivative contract called a swap based on a crypto asset is a security-based swap and must be registered with the Securities and Exchange Commission. In addition, Gensler said that derivative trading platforms whether centralized or decentralized - that offer security-based swaps need to be registered with the Commission.

Sen. Cynthia Lummis (R, WY), who is currently drafting comprehensive legislation to regulate cryptocurrencies with Sen. Kirsten Gillibrand (D, NY), believes most cryptocurrencies are commodities, so they are regulated by the CFTC for spot markets and futures. However, Lummis said that for crypto products bundled into securities, they would have a case law test called the Howey Test to verify a security, which falls under the SEC.

"Derivatives must comply with securities regulations if the underlying asset is a security," Gensler explained. Two years ago, the SEC charged app developer Abra with failing to register with the SEC and for failing to transact security-based swaps on a nationally registered exchange. Gensler warned more cases could be brought.

Gensler said, "Unfortunately, there may be more." He added, "We will use all of the tools in our enforcement toolkit to ensure investors are protected."

Gensler's comments come as crypto markets plummet, with Bitcoin (BTC) down more than 50% from its peak and stablecoin TerraUSD (UST) trading as low as 10 cents.

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NEWS

9

Crypto Weekly

CultDAO Provides Support to Anonymous Against Unjust

Government Actions White-hat hacking group Anonymous announced that it was intensifying its fight against the Russian government and other unfair governments. CultDAO will source funds from other crypto projects with "similar conceptions" in this regard.

13 ETH will be Donated

F

ollowing the Russian invasion of Ukraine on March 15th, Anonymous and Russia began a cyberwar. According to the group, hacktivists frequently support governments and organizations that act unjustly towards innocent people.

"Funding the revolution" following Anonymous' announcement on Wednesday was CultDAO's response. A tweet from CultDAO stated: "$CULT is completely decentralized & can fund those causes & revolutionaries who are ordered offline by governments and centralized entities.'' The goal of CultDAO is to empower individuals to gain more financial freedom through a community-driven, decentralized organization. They believe the best way to achieve that is to accelerate the mass adoption of decentralized finance (DeFi), which transfers financial authority from centralized institutions to the people.

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The statement makes a reference to the action from Canada’s Prime Minister, Justin Trudeau, in February. Then, the Canadian government froze the bank accounts of those donating to Ottawa’s Freedom Convoy protest and forced Just Giving to refund $9 million in donations for the protest. In return, people turned to Bitcoin to continue supporting the protests as the popular cryptocurrency cannot be subject to governmental or banking restrictions.

CultDAO functions according to its manifesto, which aims to support initiatives

favoring decentralized financial systems.

Showing support for Anonymous against unjust governmental actions aligns with the organization’s ultimate goal. So far, CultDAO has agreed to donate 13 ETH to the cause.

The CultDAO, launched in 2014, is a blockchain-based DAO that aims to usher in the "decentralized finance revolution."

Members can vote on funding for projects that concentrate on decentralized applications. For its multiple operations supporting DeFi, the protocol uses CULT, a hyper-inflationary token.

May 2022 | Volume 27

10

NEWS Crypto Weekly

Phishing Attack on Crypto Websites Targets MetaMask, DexTools and CoinGecko Users, and More Phishing attacks targeting MetaMask users have compromised a handful of high-profile crypto websites. According to various sources, Etherscan and CoinGecko were among those compromised by suspicious popups, including the decentralized finance channel DeFiPrime. MetaMask users would receive a popup prompting them to take action or approve a transaction on certain websites. When these popups were discovered, websites began warning users.

Increasing Crypto Phishing Attacks

and are investigating." DexTools, another crypto-based app website, was also compromised. "All ads have been disabled until @adsbycoinzilla clarifies the situation," it wrote before warning, "please be aware and do not approve suspicious requests."

Malicious actors have manipulated both Google and Facebook (now Meta) to display crypto scam advertising that entices users to divulge personal information or enable wallet access.

Coinzilla Culprit

C

oinGecko reported that a malicious ad script caused an attack from crypto ad network Coinzilla on May 14. Users were advised not to connect their MetaMask wallets to the data analytics portal since it had been disabled. In this case, crypto wallet users were the victim of a phishing attack. Malicious links were displayed in some popups promoting NFT projects, such as the Bored Ape Yacht Club. At the time of writing, the dodgy domain had been taken down.

This week, one popular Ethereum blockchain tracker, Ethereumscan, warned that "we have received reports of phishing popups through a third-party integration

May 2022 | Volume 27

Users of cryptocurrency have been targeted with shady advertising scripts in the past.

Phishing attacks utilizing Google Ads were detected earlier this year. These attacks attempted to steal credentials or trick users into logging into the attacker's wallet so they could receive transactions from the attacker.

Another phishing attack in February targeted NFT marketplace OpenSea and led to the theft of NFTs worth $1.7 million from platform users. As well as scammy emails disguised as MetaMask verification requests, MetaMask users have been targeted previously.

As a result of a massive data breach on company servers in 2020, the French hardware wallet company, Ledger, customers have been bombarded with phishing emails and scams.

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NEWS

11

Crypto Weekly

Billionaire Chief of FTX Says Bitcoin Has No Future as a Payment Network

A

ccording to the Financial Times, the founder of FTX cryptocurrency exchange criticized bitcoin's inefficiencies and high environmental costs, saying it has no future as a payment network. Bitcoin,

the world's most popular cryptocurrency, is created using a process called "proof of work" where computers solve complex puzzles to create the currency. This process consumes a lot of power. Sam Bankman-

Fried, FTX's Founder and CEO, told FT that "proof of stake" networks will be needed to develop crypto as a payments network since they are cheaper and more energy-efficient.

The proof of stake network is an alternative to this system, where participants can buy tokens that allow them to join the network.

As they accumulate tokens, they can mine more coins.

The blockchain Ethereum, which hosts ether, the second-largest cryptocurrency, is experimenting with moving to this energyintensive network. Bankman-Fried also said he didn't believe bitcoin had to disappear as a cryptocurrency and could still be a commodity, an asset, and a store of value like gold in the future, the report said. As a result of the collapse of TerraUSD, a socalled stablecoin, bitcoin hit its lowest point since December 2020 last week. According to Forbes, Bankman-Fried is worth $21 billion, while the company he co-founded, FTX, was valued at $32 billion in a funding round in February.

www.cryptoweeklymag.com

May 2022 | Volume 27

12

NEWS Crypto Weekly

Crypto Exchange KuCoin Raises

$10 Billion in Funding

“We raised this round because of this concept, as web3 is all about openness, and we want KuCoin to be an open ecosystem, and an open ecosystem needs many friends. In this world of crypto, we need all sources of information to guide our decisions, and these prominent investors can provide us with up-to-date information.”

K

uCoin announced that its valuation reached $10 billion in its first financing round in four years, as the global cryptocurrency exchange aims to expand its web3 ecosystem. The Seychelles-based firm raised $150 million in a pre-Series B financing round led by Jump Crypto. KuCoin said Circle Ventures, IDG Capital, and Matrix Partners participated in the new round. After its $20 million Series A round in November

May 2022 | Volume 27

2018, the four-year-old platform was valued at $100 million. In the new round, the platform is valued at $10 billion.

With 18 million users in 200 countries and regions, KuCoin is one of the largest exchanges based on daily trading volume, Lyu said. The company plans to bolster its repertoire of crypto wallets, GameFi, DeFi, NFT platforms, and DAOs, he said.

"This is how everyone becomes part of the ecosystem, and the value of the ecosystem is dependent on the loyalty and size of this group," he said.

The company began exploring opportunities in the web3 ecosystem several years ago, competing with companies such as Binance, Coinbase, FTX, and Crypto.com, among others. KuCoin Ventures, a division offering

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NEWS

13

Crypto Weekly

financial and strategic investment services, was launched late in 2017.

KuCoin has gained some popularity and some notoriety for listing tokens with small to medium market capitalizations. According to Lyu, the asset under management for the venture arm is already in the hundreds of millions. A popular way that some savvy traders made good profits in the past was by heavily betting on KuCoin's upcoming listing and selling them after it went live on the central exchange. Retail investors could also make good money on these tokens, especially during a bull cycle. In contrast to those listed on Coinbase and Binance, their market caps are too small, so the upside is greater on paper. Lyu stated, "One of our major strategies at KuCoin is to provide users with high-quality potential projects, and this is one of the reasons we are known as "people's exchange." "KuCoin, a home to hidden gems in the industry, tracks real-time hot sectors and carefully examines potential projects, even if they are

small or midcap tokens at an early stage," he explained. “KuCoin BurningDrop, for example, is a world premiere listing method where many new projects are listed as highquality projects with vast potential after a period of development, whether it's through

the normal listing or KuCoin Spotlight. We guarantee its huge potential and quality by maintaining rigorous, all-around, and allencompassing processes."

According to the company, demand for centralized services has grown over the years, but it is also committed to catering to those users who prefer decentralized services. Because of its direct integration with the wider crypto native ecosystem, DEX is preferred by some users. “Currently, we are exploring and developing decentralized products, such as the NFT marketplace Windvane. The KuCoin Community Council (KCC), built by members of the KuCoin community and KuCoin fans, will also be an important part of developing a decentralized ecosystem for KuCoin, with DEX and other protocols such as lending and stablecoins built upon it.” He added, "We also offer a P2P service for users who wish to convert fiat currencies into digital assets with the lowest fees and a high level of security."

Aside from that, the exchange has stepped up its activities to support global regulatory requirements and invest in enhancing its security and risk management systems.

According to Tak Fujishima, head of Asia at Jump Crypto, KuCoin is a comprehensive crypto services platform for a global audience. "We are pleased to be a part of the company's growth and expansion in futures and margin trading, lending, staking, and passive yield generation to support web 3.0 and the crypto market."

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May 2022 | Volume 27

14

NEWS Crypto Weekly

Despite Bitcoin Ban, China is Mining Bitcoin Clandestinely According to Cambridge

I

n May, the Chinese government cracked down on the crypto mining industry, but many miners have found ways to continue operations while evading detection. Despite its complete ban on Bitcoin mining a year ago, China has re-emerged as a major Bitcoin mining hub, according to a report released by the Cambridge Centre for Alternative Finance (CCAF) last Tuesday.

From September to January, traffic from China accounted for about 20% of Bitcoin's total hash rate, a measure of the network's processing power for verifying transactions and mining new crypto coins. After a mining ban last May, data showed that activity had fallen to zero in July.

The CCAF regularly publishes the Cambridge Bitcoin Electricity Consumption Index (CBECI) based on aggregated geolocational

May 2022 | Volume 27

data reported by partnering mining pools.

Its data shows that mining activities in China recovered quickly last year. After showing virtually no activity from China in August, it was back up to 22.3% of the Bitcoin hash rate the following month, coming in only under the US, which was at 27.7% in September.

According to the CCAF, the data "strongly suggests that significant underground mining activity has developed in the country.

Underground miners avoid authorities by using off-grid electricity and geographically dispersed small-scale operations to conceal their operations".

Bob asked only to be identified by his first name since he is currently stuck in China due to the Covid-19 pandemic. The ban last year created headaches for business owners trying to move expensive, specialized equipment. By the end of 2021, at least 2 million cryptocurrency mining machines were stuck in southwest Sichuan province due to complicated relocation procedures.

“Cryptominers in China are using VPNs and try not to consume too much electricity at any one time,” Bob said.

According to CCAF, the abrupt recovery in Chinese traffic could have been caused by miners digging underground. The group stated that it takes time to find or build nontraceable hosting facilities of that scope.

"It's likely that a significant share of Chinese operators adjusted to the new conditions and continued to operate covertly using foreign proxy services to deflect attention."

By one estimate, miners were losing around 170 yuan (US$26.70) in profit each day the machines were offline. The largest operators lost millions of dollars, which can never be recovered. In November, the Chinese cybersecurity firm Qihoo 360 reported that underground crypto mining in the country was alive and well. Qihoo said that at the time, there were 109,000 active crypto mining Chinese IP addresses each day, located mostly in provinces such as Guangdong, Jiangsu, Zhejiang, and Shandong.

The center added that the ban appears to have led underground miners to grow more confident and satisfied with the protection provided by local proxy services. According to an industry insider named Bob, Chinese miners also attempt to "diversify" their locations and offer services for hosting mining operations in Europe and the US.

As of January 1, the US had overtaken China as the world's largest Bitcoin mining location, up from 35.1% last June. China was the world's top Bitcoin mining location before the ban. By February, the aggregated computing power of the Bitcoin network had risen to 248.11 exahashes per second (EH/s) from 57.47 EH/s last June.

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16

EDITORIAL Crypto Weekly

Stolen Assets Recovered by Binance Shows Crypto Isn't a Haven for Criminals B

inance recovered a portion of the $6 million of crypto stolen from the recent Ronin hack. This represents just a fraction of the total amount stolen, but there is hope that more will be recovered in the coming days. US authorities have connected the exploit to Lazarus, a North Korean hacker group. The cryptocurrency exchange's network handled a series of transactions, resulting in the recovery of 5.8 million US dollars. Binance CEO Changpeng Zhao announced the recovery last April 22 on his personal Twitter account. Lazarus group, run by the North Korean state, is believed to be responsible for the digital heist. Last March, a security breach on the Ronin network,

May 2022 | Volume 27

an Ethereum sidechain developed by the creators of Axie Infinity, Sky Mavis, resulted in the theft of approximately 173,600 $ETH and 25,500,000 Million $USDC. The Axie Infinity team expressed gratitude for the recovered funds in a tweet on the same day. “Every cent recovered is a win for the @AxieInfinity community. Thanks, @cz_ binance. Funds will be put into the bridge once we are able.”

The interesting thing about this case is that Binance successfully traced the stolen assets, despite the use of Tornado Cash. Tornado Cash, a service that allows anonymous transfers on the Ethereum

blockchain, was tracked as the source of the funds from the hackers' wallets. Binance identified the hackers' Ethereum wallet address based on the funds' trail. Afterward, the funds reached the exchange.

Fears of a decentralized financial system becoming more popular and mainstream are being promoted by politicians and bureaucrats who often talk about cryptocurrencies as if they simply anonymize users. These soundbites are based more on purposely supporting a climate of fear than caring about the truth. It's no wonder that some would like to portray Bitcoin and other cryptocurrencies as an uncontrollable beast

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EDITORIAL Crypto Weekly

that facilitates misconduct when it does nothing of the sort.

Over the past few years, Bitcoin transactions have suffered from a lack of KYC (know your customer) and AML (anti-money laundering) procedures, often mandated by law. The industry needs governments to come together and develop common sense rules for exchanges to adhere to - rules that protect the public while freeing crypto entrepreneurs to do what they do best and innovate.

Once regulatory regimes are streamlined, governments will be better positioned to respond to threats facing the industry. They will be forced to enforce these regulations uniformly, ensuring the industry is safe for all participants. The technology itself is not the issue. Each exchange needs to install

May 2022 | Volume 27

a better technology apparatus, including ongoing security audits. With government oversight and better implementation, this will limit the risks found across the industry.

Currently, there are many exchanges around the world that have not implemented acceptable KYC standards. I believe in freedom but when we have it, we need to remember the respect everyone deserves including our home, the planet earth, and the systems that nourish us and give us life. In doing that we show recognition to a certain duty to the community and establish rules of order for its proper functioning.

KYC {Know Your Customer} is an important part of that foundation for decentralized communities to function, recognizing that criminal anti-social elements will persist unless systems are implemented to push them out. We mistrust governments when

they are corrupt and it seems few are not, yet with Blockchain corruption, criminality may be eliminated most efficiently.

If you have been following me at all, most of you will know I believe blockchain is an intrinsic system of incontestable truth encoded in a way that it simply does what it was designed to do flawlessly. Publicly transparent if that is the intention of its design. Blockchain, programmed by codes, produced by the people, for their best use of the world community, will one day be the foundation for our future systems of government and justice. It will be a natural evolutionary process and will take some time to work out all the kinks. Freedom is coming.

Robert Stone Editor

www.cryptoweeklymag.com

20

FEATURE Crypto Weekly

NFTs and Their Rapid Downturn

Begs for Reasons

WHY H

owever, don't write off NFTs as a passing trend. Experts say the blockchain technology behind NFTs has far greater potential for transforming media and entertainment sectors, from real estate to subscriptions to events and music. Even though most NFT sales have so far been in collectibles, art, and replicas of physical goods, there is far greater potential to leverage the technology in the future.

Analysts believe the overall economic downturn, coupled with the market volatility in cryptocurrencies, could lead to a

May 2022 | Volume 27

A partner at consulting firm Arthur D. Little predicts wills, home deeds, car titles, and passports could all become NFTs. "On the flip side will be robust blockchain technology and real-life applications for NFTs," Khan said. "NFTs are already being used in many practical ways.

recession. Much of the fanfare is dying down.

NFTs can be physical objects or digitally created, and regulators are still trying to determine how to tax them. In addition to being tied to cryptocurrency, they can also be produced physically or digitally.

The Reason for the Downturn NFTs and meme stocks tend to lose their appeal during a recession. A GlobalData analysis found that social media mentions of NFT fell more than 48% between January and March. Additionally, the tech sector has

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FEATURE

21

Crypto Weekly

been suffering under a market downturn as a recession looms and revenue bumps from the pandemic have slowed.

as the initial hype fades. There will never be new all-time highs, but now is the time to speculate about the next big move upward."

Amrit Dhami, an analyst at GlobalData, said Google searches for NFT have more than halved since January 2022, indicating that the NFT hype is over. "However, Meta recently announced that NFTs will be added to Instagram, which reignited excitement around NFTs." In May, Meta launched Instagram's NFT, which allows users to add NFTs to their profiles and supports a variety of blockchain networks. Tweets can be minted and added to a profile picture earlier this year. As a result of these experiments by social giants, NFTs could become mainstream, and other companies could follow.

Will NFTs Need a Re-Launch in a New Form?

VoguMinter sets the NFT profile picture of a Twitter user to a robot avatar, @the_vogu, on Twitter. Crypto company HOKK Finance director Mark Basa told TheWrap that the more companies adopt crypto, the better.

"Facebook was the first company to crack online identity; now identity [in Web3 and who you are] will be a key growth area."

Robert Ross, a former analyst at Mauldin Economics, predicts that the NFT market will continue to plummet in the near term, with many prices falling before its next rising period coincides with the crypto market.

According to Ross, “NFTs were resilient at the beginning of this downturn, but floor prices are now beginning to collapse. Having faded away, NFT prices will fall 95% or more

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Researchers conclude that the popular NFTs of original art or replica sneakers aren't useful or valuable beyond their role as collectibles.

Smart contracts stored on blockchains may help NFTs be used for a variety of practical purposes, such as streaming subscriptions, album releases, or buying property shares in the future.

Blockchain can positively impact both media businesses and everyday consumers because it creates a digitally distributed, decentralized, public ledger for every update to a piece of content, from a sale, to the addition of new content, like a song.

Many media companies consider selling streaming subscriptions as NFTs or developing albums that can be updated with new songs or videos after purchase. Using NFTs instead of traditional subscriptions or advertisements, the new decentralized streaming platform Rewarded TV provides access to premium content. Viewers will have lifetime access to the site as it adds new movies and shows due to the limited supply of NFTs available.

NFT technology may eventually replace traditional media platforms, according to Vivid

Labs' head of growth strategy Robert Powers.

It could permeate everyday life through programmatic capabilities. "Users will be able to share content with creators through NFT technology continuously," he says.

Since virtually anyone can create an NFT, it's also appealing to content creators seeking to build a following. Many have created NFTs of their art and photography, tweets, and videos.

Publishers can also sell NFTs of movie releases and tickets for events and turn other types of content into digital assets. Founder of crypto firm SmartBlocks Mark Fidelman believes NFTs will simplify the investment process in both real estate and software since NFTs can be programmed. Their ultimate use is up to us, businesses, creators, and consumers.

Powers said that we have not even begun to harness the power of the blockchain. "It may be that the initial NFT iteration is losing market traction, but we have only begun to explore the potential of this technology."

May 2022 | Volume 27

22

FEATURE Crypto Weekly

HE THOUGHT HE WAS SAFE,

BUT HACKERS

ROBBED A MAN OF

HIS LIFE SAVINGS

A

few days before Christmas, Philip Martin checked his cryptocurrency balance. This turned his life upside down. He told NBC News, who interviewed him, he thought he was typing Coinbase's web address, the largest cryptocurrency exchange. He was prompted to enter his login and password automatically because hackers had placed a bug in the URL, directing him to a fake website. After gaining all of the information they needed, the crooks returned to steal everything. There has been a wave of cryptocurrency hacks and thefts, and experts say it raises whether better regulation is needed. "It's very frustrating," said Martin, who was out $165,000 of ETH, a well-known crypto token.

May 2022 | Volume 27

As all Ethereum transactions are published on a public ledger, Martin could track where the thieves transferred the stolen crypto. Martin contacted both local and federal authorities.

Unfortunately, the Los Angeles FBI field office ultimately told him that the size of his loss did not justify an investigation. “The dollar amount involved in your complaint has resulted in management determining that it does not meet our threshold level, so the FBI will not move forward with an investigation at this time," wrote Special Agent Elizabeth Hammond in her letter. According to Laura Eimiller, director of the FBI's Los Angeles field office, the FBI will not arrest or prosecute its way out of this. "Whether it's individuals or

businesses, we must educate people on the latest trends," she said.

Martin also blames Coinbase, which touts itself as a "secure online platform for cryptocurrency purchases, sales, transfers, and storage."

"Coinbase tells users that they're not responsible for protecting the device, laptop, or phone they use," he said. "These crypto exchanges are not regulated to provide customer protection and to be on the side of their customers in these types of situations, which I believe they are at fault for, by not providing enough cybersecurity on their own URL address." Coinbase said,

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23

most notably the 2016 breach of Bitfinex, which led to the theft of Bitcoin valued at an astonishing $4.5 billion. The Justice Department reported recovering $3.6 billion in the middle of February of that amount.

It is estimated that at least 46 exchanges have been hacked since 2012. The losses are hard to calculate, but they appear to be billions of dollars. In one recent hack, crypto trading platform Bitmart promised to use its own money to reimburse clients for losses of up to $196 million.

U.R. Zula McCormack, a partner at King & Wood Mallesons in Hong Kong, a crossborder finance and technology firm, says the threat picture is better now than when crypto first emerged. "There is no doubt that there are also areas where people are vulnerable, however," she says, “we also have really common hacking threats we must guard against."

"Coinbase customers should also be wary of phishing attacks and never click on links or engage with emails that do not come from Coinbase."

“We employ extensive security measures to protect our customers against fraud, scams, and other crimes. We inform our customers about cryptocurrency scams and report known scams to appropriate law enforcement agencies. Our customers are encouraged to take steps to secure their own accounts."

There have been several instances in which crypto exchanges have been hacked,

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There are dozens of bills in Congress aimed at regulating crypto in one way or another. In March, an executive order by the president urged government agencies to protect consumers from cryptocurrency risks.

According to McCormack, ads for crypto investments have been banned in some countries but were prominently displayed during the Super Bowl, underscoring crypto's appeal as an investment. Martin urges caution, however. “Despite the potential,” he said, “until better consumer protection laws are in place, I am hesitant to invest."

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FEATURE Crypto Weekly

There is No

GOOD R REASON to Quit Crypto Despite the Recent Crash

P

rices have fallen sharply in the crypto markets recently. Bitcoin and other cryptocurrencies have experienced similar and even larger drops previously, but investors and non-investors will rightfully want to know why it happened this time.

Many people know about cryptocurrency, but few know how it works, what it can do, or why its prices fluctuate. We can understand why this question reverberates louder than ever: over 90 percent of adults in the UK have heard of Bitcoin. Additionally, it is estimated that at least 200 million people own or have owned crypto worldwide.

The future of cryptocurrency is bright.

Many educational institutions are adding cryptocurrency to their curricula because of its underlying blockchain technology. In light of the recent drop in market values and the current uncertainty, it's more important to bridge the gap between cryptocurrency's name recognition and its understanding.

Crypto is Complex and Always Will be for Most Investors Crypto and blockchain are far more confusing compared to other advanced technologies, such as artificial intelligence and quantum computing. The impact of Bitcoin was not anticipated by many

people with advanced computer science knowledge. It was largely obscure in 2008 when Bitcoin was first introduced to a group of cryptologists by its creator, Satoshi Nakamoto, and was only used by small online communities that appreciated the possibility of decentralization.

Decentralization means that Bitcoin is not owned by any one person or institution.

As a result of blockchain technology, transactions are recorded and made visible to all in a database ledger. The ledger is maintained by a network of computers that work individually and collectively to confirm and secure transactions on the ledger.

Sounds complicated, right? It is important to remember that a blockchain enables people to trust crypto transactions.

Crypto, Though Valuable, is a Revolutionary and Disruptive Technology Bitcoin today is valued at around $30,500 (£24,500), an enormous rise since its infancy.

While the price fluctuates, it is still higher than two years ago. Growing recognition of

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the role blockchains can play in the future of the internet has contributed to the value of crypto. Through the use of cryptocurrency, users can confidently and safely interact and transact with each other in a wide range of areas. Secured by blockchains, in which everyone can see real-time transactions in a broad range of areas, enabling faster and cheaper payment transactions across borders, and underpinning digital ownership of assets.

Scarcity is the second factor that drives cryptocurrency's value. The price of cryptocurrencies increases as demand increases. For example, the total number of Bitcoins is limited to 21 million.

Cryptocurrencies are Volatile by Nature Prices for cryptocurrencies continue to fluctuate dramatically. Why is this happening?

Lately, traditional markets have become more volatile, like the stock market. In addition to the fastest price rise in decades,

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the Ukraine conflict and concerns about the global economy contributed to price volatility.

For some investors, cryptocurrency is similar to a tech stock. Similarly, cryptocurrency has suffered in recent months. The recent drop in prices has more to do with global markets than anything relating to crypto fundamentals (the underlying technology or economic design), with one notable exception: Terra Luna.

In the debate over whether we are in another crypto winter due to Terra Luna's collapse, it would be more useful to focus on the longterm potential of crypto rather than the swings of the day. Crypto ecosystems are strengthened by stress tests like the past few days.

Crypto is Here to Stay Technologists and speculators are not the only ones who see crypto's role growing.

Cryptocurrency regulators, such as Jerome Powell of the Federal Reserve and Gary Gensler of the Securities and Exchange

Commission, have joined the chorus. The use of cryptocurrencies is steadily increasing in our daily lives. Another sovereign nation, the Central African Republic, has adopted Bitcoin as an official legal tender. It has been announced that the mayors of New York and Miami will take their salaries in Bitcoin.

Recently, Goldman Sachs became the first Wall Street investment bank to offer a Bitcoinbacked loan. The likelihood of your current financial services provider offering you the option to purchase Bitcoin is fairly high soon.

As the internet grows and more of our lives become digital, the rise of crypto is part of a much larger trend. Cryptocurrency prices are not immune to global volatility, and there is a legitimate debate about whether blockchain technology is the best solution for all the advertised use cases. However, it is unrealistic to expect crypto to travel in an orderly fashion since it is a disruptive technology.

Robert Stone Editor

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FEATURE Crypto Weekly

Tips for

Metaverse Investing

“Despite a current slump in most investment markets, there is still longterm potential in the Metaverse for investors willing to take a chance.

However, not every virtual world is built the same way - some are horrible for virtual real estate investors.

There are a few elements to look for in a good Metaverse platform for the virtual real estate market to survive.”

I

f you haven't already, you might consider purchasing properties in the Metaverse.

The acquisition cost is much lower than in previous months since the stock and crypto markets fell. As well as increased inventory, there are longer-term opportunities to profit.

Buy Metaverse real estate with a plan in mind and hold it for a long time, regardless of whether markets have dipped. As things stand now, you'll also be able to get a bit better of a price after all. Who doesn't love a good deal? What are the best investments in the Metaverse?

An NFT Should Secure a Metaverse Property You can purchase virtual items on many digital platforms, but you don't own them.

Platform owners determine the rules (check your End User License Agreement), including whether those items can be resold and how the item may be modified as the platform evolves. It's even more serious for virtual real estate than things like tiaras for your avatar. Is your virtual real estate even yours when platform owners dictate what you can and cannot do with it?

May 2022 | Volume 27

Find platforms selling digital items backed by NFTs, especially real estate. In most cases, the permissions of the NFT act as proof of ownership, and their rights are dictated by the permissions of the NFT, not the platform owner. If you own a virtual land, don't you want to be able to resell, rent, or develop it however you see fit?

When your platform offers real estate on third-party marketplaces that sell NFTs, like OpenSea.com or NonFungible.com, or if it requires crypto wallet storage, you've found virtual real estate secured by an NFT. When you can only buy within the platform, and the information about your purchase is only stored in your account on that server, you haven't.

Only Shopping in Worlds Where You Participate When buying virtual land, you have a few choices. The Sandbox, Decentraland, and Otherside, a project owned by Bored Ape Yacht Club, are Metaverse platforms with decentralized autonomous organizations that give you a voice as a property owner or crypto holder. You can also choose a world run by the company that built it or a

decentralized autonomous organization (DAO).

Couldn't it be great if users could directly rent land from the platform without signing another contract? The community could propose a platform change, and then it would be voted on. You can, for example, vote to ban an offensive username or even make a rule that prevents it from happening in the future.

However, not all DAOs are the same. It's important to have the option to get involved in platform politics if you need to address an issue if it arises. Before committing to a particular platform, know what you can do with your voting rights and how much control you have.

Don't Get Into Worlds with Too Many or Too Few Properties Despite the absence of definitive data, consider the law of supply and demand.

Check the world's documentation or basic description to find out how many lands have been minted. In a platform with only 100,000

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Crypto Weekly

good tenants who want to do those things but aren't ready to invest in their own land.

In addition to passive rental income, you'll also be contributing to the growth of a community.

Platforms that are stickier last longer. The company that owns Second Life, Linden Labs, had reported a $500 million in GDP by the end of 2021, even before the Metaverse concept was even an idea. This is a much smaller world than modern Metaverse platforms, lacks a blockchain technology backbone (there are no NFTs), and has been around since 2003, so it has many other technological disadvantages.

Nevertheless, Second Life is the best model known for what a Metaverse platform might look like in 20 years.

Citi anticipates that the modern Metaverse will reach an addressable market value of $8 trillion to $13 trillion by 2030. Unless your world retains users like Second Life, it might not be possible.

virtual lots that will ever be created, if that platform is popular with both investors and users, those virtual lots will become more valuable in the future.

We can check the 64 billion lots in Superworld. On April 3, 2022, $382.32 was the highest daily average sales price during the three months ending May 9, 2022. With 90,601 land parcels, the lowest daily average sales price in Decentraland was $1,697.29 on April 20, a day with low volume sales.

There is also an argument for being wary of a platform with too few lots. Invest in worlds

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with 75,000 to 200,000 lots because they are the most likely to appreciate, hold their value, and provide many reasons to return.

Community is What Makes a Metaverse Valuable Understanding community is key when it comes to investing in the Metaverse. It isn't easy to convince people to stay on your Metaverse platform since there are many ways to spend their time online. If you don't want to run your own Metaverse business or create an experience, you can still find

May 2022 | Volume 27

28

HIDDEN GEMS Crypto Weekly

PROJECT 1

estatex.eu

EstateX

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

PROJECT 2

catcoincrypto.me

perpetual returns, without the need to maintain the property.

We all know that the old-fashioned system is in need of an update. And that update seems to be coming; EstateX offers good, realistic solutions to open up this market. Although it seems that the big players and banks don’t like to see this system change, it’s a matter of adapting or giving up for these parties.

Blockchain, which is going to be as big as the rise of the Internet, will bring about this revolution. EstateX is acting smartly and is one of the first parties to offer a new way of investing. The only question that arises isn’t or but when will the big banks, real estate parties and investors join the queue behind EstateX

Catcoin

catcoin_bsc

CatCoin was launched on November 26, 2021 by Miaoshi Nekomoto (Satoshi Nakamoto's Cat) as a community-influenced project with big goals but little funding. Renounced by Miaoshi shortly after launch, CatCoin is now completely owned and run by its amazing community.

Catcoin is a community-influenced project that connects the crypto world with social media. Catcoin is the first crypto-related project to offer a 24/7 live stream on Twitch.tv, allowing the community

May 2022 | Volume 27

estatexeu

estatexofficial

catcoinbsc

to share their thoughts on Catcoin at any time. Catcoin values a friendly and caring community.

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

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www.estatex.eu www.estatex.eu

30

BEGINNERS GUIDE Crypto Weekly

"Rug Pull" Wisdom Here is a "Rug Pull" from the annals of history. Cuba announced Thursday, August 26, 2021, that it would begin accepting cryptocurrency payments like Bitcoin. Rug pulls are part of a long line of investment schemes that get their name from "pulling the rug out.” Some unscrupulous developers have attracted investors to new cryptocurrency projects, then walked away before building what they promised, leaving their supporters with worthless holdings.

The risk with cryptocurrencies is that they are not regulated.

T

his isn't just a crypto phenomenon.

It's a people phenomenon, explains Adam Blumberg, a Houston-based financial planner specializing in digital assets. Due to the lack of regulation for fundraising and Bitcoin's emphasis on decentralization, Bitcoin poses particular risks.

Most cryptocurrency projects use smart contracts, agreements governed by software rather than the legal system. Besides reducing transaction costs, this setup leaves little room for recourse if things don't turn out how they should.

Decentralized finance projects that aim to disrupt banking and insurance are prone to rug pulls. Rug pulls have also involved nonfungible tokens (NFTs) that provide digital ownership of art and other content. To protect themselves, investors should choose established cryptocurrency projects, verify the developers' identities, and make sure the code of any new project has been reviewed.

Newer projects that haven't undergone the same scrutiny as more established cryptocurrencies will likely be subjected to rug pulls. Even with the risks associated with Bitcoin, countless people have used it and reviewed its inner workings, which are readily available online. Recent projects may

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lack such a track record, which means they may be vulnerable to manipulation, which would enable organizers to siphon value away from investors.

If you're having trouble breaking through the hype, look at centralized exchanges such as Binance, Coinbase, and FTX. The existence of a cryptocurrency on a large exchange does not guarantee its quality or investment potential, but these companies typically review assets before selling them.

A trade-off of investing primarily in more established assets: Cryptocurrencies, in general, have experienced periods of rapid price appreciation, but the highest rewards may come from projects with greater risks.

Decentralized exchanges are often used to list these since they are not dependent on any centralized authority to prevent unproven projects from joining.

“Scam artists exploit the fear of missing out generated by rare but true stories of mind-blowing returns,” says Rex Hygate, the founder of DeFiSafety, a company that reviews projects in the field. “People have made a lot of money on it, and that is a fact," Hygate says. "There is hope, albeit small, (and) therefore criminal organizations are conducting these rug pulls in an organized and regular manner."

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Bitcoin and blockchain projects are determined by their computer code. If you aren't a computer programmer, you should understand how a product works. An easy way to evaluate a potential investment is to determine if a respected organization has audited the project.

While it's not uncommon for people to use pseudonyms, reputable developers often have websites and references. Our founder was scammed on an NFT that was supposed to be a ticket for a conference.

Diversification is just as important in the cryptocurrency sector as in finance, since projects can fail due to technical problems or business blunders, even without malicious intent. "Any investment you make will have its issues," says Leah, the founder of Rugdoc. io, "If you plan for failure, if you don't fail, you're going to have a very good day. Even if you fail, you probably won't be ruined."

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FEATURE Crypto Weekly

Crypto has Issues that

Stablecoins Fix

Crypto that delivers stable values are known as stablecoins. Such cryptocurrencies are more useful as a medium of exchange and a store of value. By maintaining reserves in the form of U.S. dollars, they also minimize typical cryptocurrency volatility. Stablecoins are algorithms that adjust supply based on predetermined rules to provide steady valuee.

C

ryptocurrencies known as stablecoins are taking off because they promise to minimize the price volatility that has limited the use of Bitcoins (and other digital currencies) as a medium of exchange. With the launch of Tether as the first stablecoin in 2014, there are now Digix Gold, True USD, Havven's Nomin, Paxos Standard, Dai, USD Coin, and Binance USD on the list.

Exactly what are stablecoins?

day is a huge move in forex trading of fiat currencies. The price of cryptocurrencies is not uncommon to fluctuate by 10% within 24 hours, even on an intraday basis.

Cryptocurrencies are different. Between mid-November and mid-December 2017, Bitcoin soared from less than $6,000 to more than $19,000, then fell to about $6,900 by early February 2018. By August 2021, it was over $44,000, up from less than $5,000 in March 2020.

Money serves as a medium of exchange and a store of value, whether it is the U.S. dollar or Dogecoin. Stable price levels are essential to these functions. The aim of policymakers is to maintain a broadly stable price for traditional national currencies as a result. A 2% change in one

Such swings are not indicative of a stable currency. They are more comparable to speculative trading instruments like derivatives in terms of volatility. The question of whether popular cryptocurrencies have a real-world purpose has been raised in light of this.

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A new class of cryptocurrencies is emerging called stablecoins, which aim to provide the price stability needed to encourage wider adoption. A stablecoin promises cryptocurrencies adherents the best of both worlds: stable value without the centralized control accompanying fiat currencies.

The Structure of Stablecoin Values Gold was historically used to peg some currencies. It is not used today. In 1931, the United States and Great Britain left the gold standard. The U.S. dollar serves as the modern alternative to the gold standard.

The dollar is pegged to at least 14 currencies.

The dollar peg limits currency volatility that might otherwise disrupt the nations' economies that issue them.

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FEATURE Crypto Weekly

Similarly, some stablecoins seek to reduce volatility by pegging their price to the U.S. dollar and backing the value of their tokens with liquid reserves of collateral. Based on how they pursue price stability, stablecoins can be divided into three categories.

Stablecoins Collateralized by Fiat Dollar reserves are used to back stablecoins such as Tether and TrueUSD. The U.S. dollar is used as the backing for these stablecoins. Metals such as gold and silver and commodities such as crude oil can also be used as collateral. To guarantee the redemption of stablecoin tokens, collateral must be held by a custodian and audited regularly.

Stablecoins Backed by Crypto Assets Crypto-collateralized stablecoins are similar to those backed by fiat, except their underlying collateral is another cryptocurrency or basket of cryptocurrencies instead of a fiat currency or a commodity. To compensate for the adverse impact of the collateral cryptocurrency's volatility, stablecoins backed by other cryptocurrencies tend to be "over-collateralized," meaning that the collateral value exceeds that of the tokens.

For instance, a reserve of Bitcoin worth $1 million might be required to issue $500,000 of that stablecoin. Even if Bitcoin were to lose 30% of its value, the stablecoin would have sufficient collateral for full redemption.

More frequent audits and regular top-ups

for any shortfalls in collateral value can keep the crypto-backed stablecoins covered.

A basket of crypto assets backed by Dai tokens is worth 150% of the token's value as collateral. Each token is pegged to the dollar.

The system isn't perfect. If the collateral cryptocurrency is completely defunct, there are procedural issues with the audit process, or demands for additional topups of collateral are not met on time, the stablecoin's value will plummet, defeating its purpose.

maintaining their value. For example, an algorithmic stablecoin might rely on a rule that requires a change in token supply sufficient to maintain its value. Increasing or decreasing interest rates is somewhat analogous to a central bank's role in ensuring stable prices. The difference is that central banks like the U.S. Federal Reserve set a monetary policy based on widely understood parameters and back it up with unlimited legal tender. Basis and TerraUSD are algorithmic stablecoins without such advantages.

Cryptocurrencies with Algorithmic Stability

Stablecoins Could Have Huge Applications in the Future

Algorithmic stablecoins, whether collateralized or not, rely on an algorithm to control the supply of tokens, thereby

The increasing adoption of stablecoins could help popularize the use of cryptocurrencies as a medium of exchange for routine financial transactions and other applications. Such applications may include using stablecoins to trade goods and services over blockchain networks, decentralized insurance solutions, derivatives contracts, financial applications like consumer loans, and prediction markets.

A volatile cryptocurrency is not suitable for those purposes since the volatility presents a risk of loss for parties to the transaction.

The Bottom Line By combining cryptocurrencies and fiat, stablecoins offer a decentralized currency with fiat-like stability. In terms of how they deliver on that promise, the TerraUSD collapse strongly suggests adequate collateral in liquid form, like U.S. dollars, offers a much stronger guarantee than the naked promise to maintain value by relying on an algorithm.

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of the

week

NFT

"Everyone is SO WRONG About This Market" Kevin O'Leary Latest Crypto Update On Bitcoin & Ethereum

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May 2022 | Volume 26

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FEATURE Crypto Weekly

SEC Commissioner Hester Peirce Says Crypto Regs Must Account for 'Trial and Error' in the Market and Stablecoin Variation of variation." It is, in fact, difficult to craft a regulatory framework when there are so many variables, says Peirce, who was sworn in as an SEC commissioner in 2018.

"Not only are you trying to cover what exists today, which is varied, but you're also trying to think about what will exist tomorrow, which is not easy."

Securities and Exchange Commission member Hester Peirce says the cryptocurrency market needs regulatory support to allow innovation to flourish and flop. The spotlight placed on stablecoins during TerraUSD's plunge this week highlights the need to be mindful of variations in digital assets.

Peirce, a crypto proponent, said in a virtual forum that investors would likely see some movement in Washington regarding stablecoins, which have already caught the eye of regulators because they are pegged to the USD.

used. The OMFIF is an independent think tank devoted to central banking, economic policy, and public investment, so many people are thinking about what will happen in the future if this gets even bigger.

One must remember that in the world of crypto, one term can encompass a wide range of assets. "So one stablecoin might look totally different from another stablecoin," she said. “The key to all conversations in crypto is to understand that there is a lot

In times of volatility, stablecoins can be used to facilitate quick transactions on the cryptocurrency market or as a way to park funds. Since no federal agency is responsible for overseeing digital assets, US President Joe Biden issued an executive order in March requiring government agencies to report on their responsibilities.

Peirce has urged the SEC to focus on enforcing its rules and providing technologically specific exemptions from its existing rules.

"This would allow for iteration and experimentation, which are key features at the beginning of any new technology," she said. "We need a framework that allows for failure as well because failure is part of the experimentation process," she added. "Our framework allows for this kind of trial and error, and I hope that we will use it for that purpose," she said.

During this last week's crypto market, algorithmic stablecoins have taken center stage, whose values are determined by a combination of computer codes and reserves. The collapse of algorithmic stablecoin TerraUSD to below $1 and Luna's slide to $0 triggered it. In contrast to traditional stablecoins, algorithmic stablecoins are underpinned by hard assets like cash, bonds, and commodities.

During a panel discussion by the Official Monetary and Financial Institutions Forum, Peirce said that stablecoins are widely

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38

FEATURE Crypto Weekly

CRYPTO? IS NOW THE RIGHT TIME TO INVEST IN

You may wish to invest now, when prices are lower, in a cryptocurrency that you believe has long-term potential. Investing in real estate is not the best choice if you are just looking to make a quick profit.

There is some instability in the crypto market right now. Would it still be a wise investment?

O

ver the past few months, the cryptocurrency market has been hammered. Approximately 57% of Bitcoin and Ethereum have been lost since their peaks, reached in November. In that time frame, Cardano has dropped by 75%, and one of the breakout stars of the crypto world, Solana, by nearly 80%.

TerraUSD is another stablecoin that has been rocking the crypto sector. Within 24 hours of the stablecoin losing its peg to the U.S. dollar, its sister cryptocurrency, Terra, lost more than 98% of its value.

In addition to the bad news for LUNA investors, this has shaken many investors' faith in all stablecoins and cryptocurrencies.

If you already own crypto or are considering it, is it the right time to invest? Here's what you need to know.

Where do you see cryptocurrency going?

The future of cryptocurrency remains uncertain, even if it survives this downturn.

Even major coins like Bitcoin and Ethereum are still highly speculative investments. This does not necessarily mean investing in them is a bad idea. But it would help if you considered how much risk you're willing to take.

Some experts believe cryptocurrencies will be around for the long haul, as they have the potential to earn explosive returns.

However, this latest downturn proves just how volatile it can be, and the LUNA fiasco is a good reminder that crypto is an inherently risky investment.

Is it still worth investing?

Investing in crypto depends on a few factors, including your long-term outlook, financial situation, and level of risk tolerance. It should not be considered a "get rich quick" strategy but rather a long-term investment.

It would help if you also considered whether you can afford to invest right now.

Cryptocurrencies are risky investments, so only invest money you're prepared to lose.

Before investing, you may want to prioritize your emergency fund if you have trouble paying your bills.Finally, determine what level of risk you can tolerate. You may want to invest elsewhere if you know you'd lose sleep over the level of volatility associated with cryptocurrencies. You may be able to cope with long-term volatility even if you're keeping a long-term outlook.

Although cryptocurrency is a potentially lucrative investment, not everyone is suitable for it. Prices are lower during a downturn, so it might be a good time to invest, but make sure you're prepared for the risks involved. The more prepared you are, the better off you'll be.

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