Crypto Weekly 27/06/2022

HIDDEN GEMS

BEGINNERS GUIDE

CRYPTO Page 36

IS BNB A SECURITY? Page 07

Page 38

VIDEO OF THE WEEK

Page 42

WEEKLY $2 cryptoweeklymag.com

June 2022 | Volume 32

YACHT CLUB MYSTIQUE- YETI Page 24

BEAR MARKET FORECAST Page 09

IS IT NFT TIME? Page 26

CRYPTO WINTER NIGHTMARES Page 12

REGS ARE GOOD FOR BUSINESS Page 35

A FUTURE FOR SAFEMOON? Page 16

THE NIGERIAN BREAKOUT Page 40

THE PROMISE OF ETHEREUM Page 22

BLESSINGS OF THE CRASH Page 43

Cryptopolis: The Game Where Experience Counts Page 18

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CONTENTS $2 cryptoweeklymag.com June 2022 | Volume 32

18

12

07

Binance Co-founder and Chief Marketing Officer, Yi He States, "BNB; Not a Security Token."

28

09

The Crypto Bear Market Could Last a Few Years

11

Crypto Industry in Fear if Contagion Like Bitcoin Treads $20,000

12

How ‘Crypto Winter’ Could Become a Nightmare. And for Celcius Users, a Living Hell

13

Bitcoin's Next Support Level? Why, 'Perhaps it's $15,000'...

16

Is there a Future for SafeMoon (SFM)?

18

Cryptopolis: The Game Where Experience Counts to Win

22

Ethereum May be the Most Promising of all the Cryptocurrencies

24

Yeti Yacht Club Project Wants to Take over the Luxury Mystique

26

Is it Time to Buy, or Sell NFT`s?

28

Sure, Crypto Is Crashing… So, What Else is New?

32

Talk to a Bitcoin Miner About Crypto Winter This Year

34

Is Crypto Winding Down or Just getting Started?

35

Crypto Regulation Will Take the Industry to New Heights

40

Nigeria is Realizing the Potential of Cryptocurrency

43

The Crypto Market Crash is a Good Thing

CRYPTOWEEKLY CEO | Nathan Hill

LETTER FROM

THE EDITOR

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

Welcome to Crypto Weekly

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

Hello, and a warm welcome to the 32nd issue of Crypto Weekly.

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

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

Another week has gone by and this is our thirty-second issue of Crypto Weekly. I have been mining the search engines for the best stories in the news, current happenings, and the ideas the world is excited about in the cryptosphere. When crypto market cycles end we typically always see them compared to other big financial bubbles such as the “dotcom” bubble of the late 90’s. This time around has been especially acute because of just how fast the bubble deflated and how big it got in the first place ($3 trillion total). Though just like how the dotcom bubble didn’t kill the internet, the 2022 crash will not kill crypto.

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

Follow Us Stay Connected Robert Stone Editor

cryptoweeklymag

NEWS

7

Crypto Weekly

Binance Co-founder and Chief Marketing Officer, Yi He States, "BNB; Not a Security Token."

C

o-founder of Binance, Yi He said, the Binance Coin is not a security token after the Securities & Exchange Commission (SEC) announced it was looking into whether the world's largest crypto exchange broke securities law when it went public. “I can answer this part very clearly: BNB is not a security token," she told journalists.

Bloomberg reports that the investigators are looking into whether Binance's 2017 initial coin offering may have constituted the sale of a security that should have been registered.

An SEC spokesman declined to comment, saying the agency, "does not comment on the existence or lack of an investigation," Binance reported. Yi He, however, told Binance that BNB is a utility token used to access Binance's services, not an investment.

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"BNB is the most active public blockchain, if you consider it a technology, supporting a future internet 3 program," said Yi He. "We have the most traffic and we are much quicker than ETH."

buying tokens are expecting profits. “I don't care whether they're stock tokens or stable value tokens backed by securities, or any other product that offers synthetic exposure to underlying assets," Gensler said.

A token can fall under the Howey test - a judicial test that helps determine what is a security - as long as a company is using them in a way that would also make them an investment contract, in the eyes of the SEC. Even with the rapid expansion of the industry, Binance maintains that it is learning alongside regulators.

"Binance is very serious about regulatory compliance," a spokesperson said.

Gensler and the SEC have promised to take enforcement action against any others who violate the rules. A particular case could set a precedent. Ripple has been charged with violating securities laws when it sold token XRP without registering with the SEC to finance its platform, thereby selling illegal and unregistered securities. Ripple is challenging the charges in a court case that will determine whether the SEC's interpretation is correct, and set a precedent for regulating crypto tokens.

SEC Chair Gary Gensler has said that ICOs qualify as securities.

Speaking last August, Gensler pointed out that people

Binance is currently the subject of multiple investigations from the Justice Department, the Commodity Futures Trading Commission, and the Internal Revenue Service. E

June 2022 | Volume 32

NEWS

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Crypto Weekly

Bitcoin below $20k for First Time since Nov. 2020 S

ince Nov. 2020, Bitcoin's price has not fallen below $20k until last week, then dropped below $18,000, before recovering to around $19,500 on Sunday morning.

The value of Bitcoin has fallen more than 70 percent since it peaked at nearly $69,000 in November 2021, the Financial Times reported. Stock market losses were caused by inflation and interest rate increases by the Federal Reserve.

Chris Waller, governor of the Federal Reserve, says he supports raising interest rates by 0.75 percent at the July Federal Reserve meeting.

Previously, the Fed raised rates by 0.75 percent on Wednesday, bringing the federal funds rate to between 1.5 and 1.75 percent. "The Fed is 'all in' on re-establishing price stability," Waller said at a conference in Dallas.

Consumer prices increased 8.6 percent between May 2021 and May 2022, according to a report published earlier this month by the Bureau of Labor Statistics.

Crypto Markets to Expel Crypto Forced Speculators by Federal Reserve T

he Federal Reserve shows the crypto markets “who's boss” and who will remain so, well into the future, despite the rise of digital currencies.

According to iCapital Chief Investment Strategist Anastasia Amoroso, "The Fed is forcing the markets to flush out all areas of froth." She said, "I am not calling all areas of crypto, froth, but there were structures upon structures, derivatives upon derivatives, that built up on average coins. There is a flush-out going on in very important areas of crypto. I think it is a positive development."

"With a tougher stance on inflationfighting via interest rate increases, the

June 2022 | Volume 32

Federal Reserve appears to have nearly broken the back of the crypto market," she said.

In a flight to safety in markets, Bitcoin prices fell below $22,000 this week. The crypto market value has plummeted to below $1 trillion, from roughly $3 trillion in late 2021. The flushing of the speculators challenges the rallying cry that Bitcoin will reach $1,000,000 by 2030 - or even whether it is worthwhile to buy the current crash.

"No," 22V Research founder Dennis Debusschere said when asked if now is a good buying opportunity into the beat-up crypto space. "The Fed is tightening financial conditions, and with tighter financial conditions, speculative assets like Bitcoin will be hit hard." According to Debusschere, “Bitcoin has not performed as expected in terms of hedging."

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NEWS

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Crypto Weekly

The Crypto Bear Market Could Last a Few Years Y

ou probably know that inflation is up, stock prices are down, and the crypto market value is declining, if you keep up with Crypto Weekly. People are wondering if cryptocurrency is in a bear market. How long will this bear market last? There is no way to know for sure. We can study previous bear market cycles in both the cryptosphere and the stock market to get some clues about the current one.

causing a bull run for two to three years. A bear market follows one to two years of price declines.

Despite falling prices nearly everywhere for most of 2022, some investors believe Terra's crash in May was the point when the bear market really began. Considering the next Bitcoin halving is two years away, we could be in for two more years of the bear market. E

Historically, cryptocurrency markets tend to follow Bitcoin on a four-year cycle. The amount of BTC that is awarded to miners is halved every four years by Bitcoin. The value increases when the supply decreases and the demand remains high. As a result of every Bitcoin halving, the price of BTC tends to rise and the rest of the crypto market follows.

In the spring of 2020, a bull market followed. Historically, when Bitcoin's value is halved, the rest of the cryptocurrency market follows,

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June 2022 | Volume 32

10

NEWS Crypto Weekly

A U.S. Digital Dollar Could Maintain International Primacy A

t a news conference after the Federal Open Market Committee (FOMC) meeting in Washington, Federal Reserve Board Chair Jerome Powell discussed the U.S. economy and the Fed's interest rate plans. Fed Chair Jerome Powell said Friday that a digital version of the U.S. dollar could guarantee the currency's global dominance as other countries issue their own. Powell offered generally positive commentary on a hot-button topic at the central bank that has divided policymakers.

Powell said in introductory remarks to a conference held by the central bank on the international role of the dollar that a CBDC (central bank digital currency) could help keep the dollar's international standing.

A four-month public consultation on the idea of a digital dollar just ended. Lael Brainard has emerged as a critical proponent of the proposal, whereas Fed Governor, Chris Waller, has opposed it. As we consider the feedback, Powell said they would think about the global financial system as it evolves over the next five years to a decade.

The Atlantic Council reports that 105 countries are exploring the possibility of launching central bank digital currencies, which could hurt the dollar's dominance over China.

Dollar fundamentals remain strong, Powell noted, including transparency, the rule of law, and the Fed's complete independence.

Powell noted that the Fed's commitment to price stability contributes to widespread confidence in the dollar. Powell said, "My colleagues and I are adamant about returning inflation to our 2% target." Earlier this week, the Fed raised interest rates for the first time in more than a quarter-century.

Billionaire Mark Cuban Remains Big Crypto Believer M

ark Cuban, although not strictly speaking an evangelist, has heavily invested in the crypto industry. He believes in its potential. But Cuban has kept all his clarity as a seasoned investor. In a recent interview, the billionaire entrepreneur said, “The crisis that the crypto space is currently going through would make it possible to sort out valid projects from those that amount to nothing.

Companies that were nourished by cheap, easy money but had no viable business prospects will disappear, in stocks and crypto, both,” Cuban said. "Like Warren Buffett says, when the tide is out, you may see those who are naked in the water."

the platform over other blockchains. The billionaire likes Ethereum because "it's the most used blockchain," he said, “and the platform has smart contracts, a piece of computer code that determines the terms of a transaction (loans, trading, etc.) and doesn't rely on any third party." “Every crypto investor or speculator should use these 4 factors to understand risk for any token," Cuban posted on Twitter on June 10.

Celsius Network stopped accepting withdrawals a month later. Since then, rumors of the company's insolvency have circulated. Celsius has not commented on these claims. In spite of this bad news, Cuban remains optimistic about the crypto industry's future. Technology and applications released during a bear market will always find a market and succeed. He also said cryptocurrencies are related to the Nasdaq. Tech stocks and Bitcoin have been moving together recently.

"If rates go up, new markets struggle till it's priced in," Cuban said. "As with stocks, the exception is a game-changing application." Cuban describes himself as an Ethereum maximalist, meaning he favors

June 2022 | Volume 32

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NEWS

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Crypto Weekly

Crypto Industry in Fear if Contagion Like

Treads $20,000 A

ll last week, the cryptocurrency industry was on edge as Bitcoin struggled to stay above a critical level, causing investors to fear a greater shakeout if major crypto players had issues.

During early London trading hours, Bitcoin, the world's biggest cryptocurrency, was trading just under $20,000 - about the peak of its 2017 charge to its previous record. On Saturday, Bitcoin fell below $20,000 for the first time since December 2020, dropping as low as $17,592.78. The cryptocurrency sector's latest collapse has caused the price to plummet by almost 60% in 2018.

Many major industry players have been having problems recently, leading to the company's fall. Three Arrows Capital is exploring all options, including selling assets and a bailout by a different firm– its founders tell the Wall Street Journal, in a story published Friday, the same day Asia-focused crypto lender Babel Finance suspended withdrawals. Further declines, market participants said, could force other crypto investors to sell their holdings to cover margin calls and losses.

Celsius Network, a U.S.-based lender, has suspended customer withdrawals. Celsius

said Monday it would continue working with regulators and officials but stop its customer Q&A sessions. "As a result of large amounts of credit being withdrawn in the crypto ecosystem, lenders will reduce their loan books if they have to absorb losses from Celsius and Three Arrows, which means the total amount of credit available is reduced considerably," said Adam Farthing, chief risk officer for Japan at crypto liquidity provider B2C2. "I am reminded of 2008 in terms of how there could be a domino effect of bankruptcies and liquidations," Farthing said. In addition, smaller tokens, which move with Bitcoin, were hurt. Over the weekend, Ethereum, the second most valuable token, fell below its own symbolic level of $1,000, falling to $752.

In addition to the decline in crypto markets, equities suffered their most significant weekly loss in two years due to fears of rising interest rates and inflation. Bitcoin has tended to follow a similar pattern to other risky assets like tech stocks.

Market site Coinmarketcap estimates the overall crypto market capitalization at $877 billion, down from $2.9 trillion in November 2021. Likewise, a decline in stablecoins - a type of cryptocurrency designed to hold a constant value - suggests investors are pulling back from the sector.

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June 2022 | Volume 32

12

NEWS Crypto Weekly

How ‘Crypto Winter’ Could Become a Nightmare. And for Celcius Users, a Living Hell

A

SWAT team of regulators steps in when a traditional bank fails, winding it down secretly and preventing a financial panic.

The collapse of cryptocurrency banking takes place in full view of the public and there is no SWAT team to calm the markets.

Celsius Network, a major crypto lender with more than $11 billion in deposits, froze withdrawals this past week. “We have billions in liquidity at Celsius,” CEO Alex Mashinsky announced publicly on Friday, June 10.

while taking measures to preserve and protect assets." Celsius did not provide further comments.

Approximately 72 hours later, Celsius halted all withdrawals, swaps, and transfers between accounts. Since then, investors have not been able to withdraw their money. In the event of insolvency, there is no Federal Deposit Insurance Corp. to reimburse depositors.

But when the value of crypto began falling a week ago, the collateral Tipene put up for the loan rapidly diminished and he received a margin call. He had to put up more collateral.

According to a statement on its website, Celsius cited "extreme market conditions" as the reason for the withdrawal freeze, saying it acted to "stabilize liquidity and operations

June 2022 | Volume 32

Hamish Tipene of Sydney, Australia took out two loans from Celsius Network a few months ago. When he bought a new home above his pre-approval rate. He supported the crypto lender's motto, "Unbank Yourself," and used his crypto holdings as collateral, instead of cash.

Celsius froze Tipene's account before he could meet the margin call. By today's rates, 0.59 Bitcoin is worth $11,800. With his account still frozen, he faces another margin call that would wipe out another $13,000 in Bitcoin. The company is impossible to reach.

"You can't take away someone's ability to resolve a situation, then punish them for not resolving it," said the 46-year-old carpenter.

“I trusted them with my savings and it’s unfair!”

All of this sounds familiar to investors who remember the 2008-09 financial crisis. Several weeks ago, cryptocurrencies experienced a Lehman moment, as asset prices plummeted, liquidity dried up, and billions of dollars were lost. The potential collapse of a giant crypto bank began with the demise of a stablecoin called TerraUSD +0.12% that wiped out $60 billion. Crypto is also raising questions about the extent of the contagion and whether the asset class will survive. Is there a risk of contagion?

“Yes,” says Chris Matta, president of 3iQ Digital Assets, which manages about $2 billion in crypto investments. “The question is; who’s going to go next?” In reality, what the industry calls a crypto winter is looking more like a crypto hell. Currently, Bitcoin

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NEWS

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Crypto Weekly

is trading around $21,000, down 70% from its peak of $38,000 over the past week.

Ethereum, the second-largest token, has fallen 77% to $1,080. Over the past year, the token market has lost $2 trillion in value, down to $900 billion.

Last year, cryptocurrencies gave retail investors the chance to secure wealth at, what seemed to many as, a once-in-alifetime, money-making opportunity. The tide has now turned against risk assets, including cryptocurrencies, and investors are rethinking their trust of crypto firms, including Celsius Network, after they took drastic measures in the face of a liquidity crisis. The total market capitalization of crypto has dropped by over $237 billion since the release of May's inflation data, from $1.15 trillion to $913 billion as of Monday morning, according to Coinmarketcap. But since its November peak, it has lost 70% over two thirds of its value.

Accustomed to delivering high returns for investors, and growth to shareholders, during the bull market, industry players are now yanking back capital with several major trading venues, including Robinhood, Gemini, Crypto.com, BlockFi, and Coinbase, announcing significant layoffs.

There are other crypto platforms that are freezing up. A high-yield lender called Finblox capped all withdrawals and stopped paying interest after a hedge fund stopped

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supporting it. Another lender, Babel Finance, suspended withdrawals on Friday due to “unusual liquidity issues.”

Then there’s Celsius. Retail investors can invest in high-yielding interest accounts, which are often misconstrued as savings accounts at banks. At the beginning of May, Celsius had 1.7 million users and $12 billion in customer funds, most of which were retail. To stabilize its operations, the firm has frozen its customer accounts for over a week. But the move has also made it more difficult for customers to meet margin requirements, like in Tipene’s case.

For Northern-California based Yevhenii Marchenko, he can’t access the $85,000 in Solana, Cardano, and Chainlink crypto tokens locked in the platform. He’s been a customer since November when the crypto market peaked.

Bitcoin, of course, is not the only cryptocurrency that failed a market stress test. The Federal Reserve is scrambling to bring down near-record inflation as financial conditions tighten everywhere. The Fed's announcement of a three-quarter-point interest rate hike this past week reinforced fears that a recession is on the horizon, either later this year or early in 2023. The stock market is now deep in bear market territory.

At the very least, the Celsius debacle should dispel illusions that crypto is immune to the

contagion effects that plague traditional financial transactions. The crypto industry is often described as "decentralized," but, in reality, it is dominated by a handful of major investors and platforms.

The pain spreads quickly when one major company teeters, as it did in 2008.

The difference today is that blockchain transactions are public; investors can watch the train wreck in real time.

Regulatory agencies may be giggling in the background. The federal and state governments have criticized high-yield lenders, like Celsius, for years, arguing that they should not be sold to retail investors or registered as securities. Securities and Exchange Commission Chair Gary Gensler said, at a conference this past week, “Companies promise 17% returns, 19.5% returns, or 7.1% returns for your money.

Honestly, one has to wonder where those returns are coming from in this interest rate environment."

Alabama, Texas, New Jersey, and other states had taken enforcement actions against Celsius and other crypto banks before this episode. The Alabama Securities Commission is investigating Celsius' withdrawal freeze.

It's likely the investigation will lead to more enforcement actions, says Joseph Borg, the director of the commission. "Does that mean we will also intensify our review of other companies? It seems logical." E

June 2022 | Volume 32

14

NEWS Crypto Weekly

Bitcoin's Next Support Level?

Why, 'Perhaps it's $15,000'...

O

ver the weekend, Bitcoin briefly fell below $20,000, and experts believe the bottom may not yet have been reached.

"Bitcoin is under pressure, of course, as it can no longer be seen as a hedge against inflation. Instead, it is being traded as unprofitable tech," Anastasia Amoroso, chief investment strategist at iCapital, said.

"Bitcoin is not invalidated. There is a price level at which larger operations can still break even or produce a profit margin on Bitcoin mining." The cost of production is the price at which larger operations can still break even or produce a profit margin on Bitcoin mining. The breakeven point varies depending on the type of mining equipment.

A macroeconomic signal may trigger a trend reversal in Bitcoin (BTC), according to cryptocurrency analyst Benjamin Cowen.

According to Cowen, in a recent strategy session on YouTube, he is keeping an eye on the rate of US inflation and its correlation with equity markets and Bitcoin. Historically, Cowen says, the S&P 500 index bottoms out only after inflation peaks and reverses.

Cowen says that Bitcoin often behaves in

June 2022 | Volume 32

a similar way to the index, so BTC may not bottom out until inflation gets under control.

with utility, those that have a real purpose, those are the ones that will endure."

Cowen says, "The macro seems very bleak right now because of things like inflation, and again, this is the S&P 500 overlayed with inflation. One thing to note is that when inflation peaks, the S&P tends to go down." "When you look back to the 1970s, you will see a similar type of move where the S&P bottomed around the time inflation reached its first peak. From this local top, there was a 50% drop in the S&P 500. When we examine the market today, we see the S&P has continued to decline. Additionally, inflation hasn't necessarily peaked yet, and it would be somewhat irresponsible to assume that it has, until it is proven on the charts. Inflation is likely to continue going up for a while before a more convincing peak is seen. Until such time occurs, we should not assume that the S&P 500 bottom is in.

Recently, cryptocurrency-related companies, such as BlockFi, Coinbase, and Robinhood, have announced headcount reductions. Leah Wald, CEO of Valkyrie Funds, recently said on Yahoo Finance Live: "The bear market is here," which means an asset has dropped 20% or more since its peak. Since November 20, 2021, Bitcoin has lost almost 70% of its value.

And since Bitcoin acts as a risk asset like the S&P 500, we should also assume that the macro bottom is not in." Amoroso also remarked, "I think we are going through a sort of cleansing process." "The applications

All that said, as Amoroso suggested, crypto winters can carry some silver linings: “During previous downturns, the market seemed to decide which cryptocurrencies are viable assets while discontinuing those that don't return substantial use cases; new blockchain projects received more reasonable value propositions, and cryptocurrency adoption, at lower prices, enabled existing tokens to better scale.” "You have a good chance to build in bear markets," Wald said. As a result of the various bear markets in 2018, many projects that were not built on firm foundations have been completely wiped out. This is not necessarily a bad thing. E

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16

FEATURE Crypto Weekly

Is there a Future for SafeMoon (SFM)?

I

n the past few months, SafeMoon has done better than much of the rest of the cryptocurrency market. SafeMoon's SFM token, which runs on the Binance Smart Chain (BSC), has been about 10% higher than the total crypto market since the start of May. SFM trades just over $0.0005, around 30% higher than earlier monthly lows in the $0.0004 area, but approximately 35% lower than earlier monthly highs.

However, recent outperformance masks a steep decline from earlier annual highs.

Developers at SafeMoon released a new version of the token (SafeMoon V2) last December, and the tokens shot up to as high as $0.0032 in January. However, the token has since lost over 85% of its value.

SafeMoon V2's market capitalization was close to $2 billion at its peak in January, which is impressive, but nowhere near SafeMoon V1's market cap from last May, shortly after the project's launch.

How does SafeMoon work?

In the crypto space, critics say SafeMoon offers no real utility but employs incentives to entice investors to hold onto their tokens, calling it a "DeFi" (Decentralised Finance) token. SafeMoon transactions are taxed at 10%.

In addition to rug pulling and pump and dump scams, SafeMoon has also used gullible social media influencers to shill its token in the past. Many big-name celebrities supported the project, including YouTubers Jake Paul, Ben Phillips, and rapper Lil Yachty.

Coffeezilla, a famous cryptocurrency scam hunter, released a video series on YouTube accusing SafeMoon of being an elaborate scam last month. Coffeezilla concluded that SafeMoon was initially designed as a pump and dump scheme and that forced migration from V1 token to V2 token led to investor losses of over $100 million.

Taxing transactions, and earning redistribution fees when others transact, encourage investors to hold on to SafeMoon.

The SafeMoon website states that 4% of this tax is used to redistribute tokens back to existing SafeMoon holders. This leaves 3% for a liquidity pool. According to SafeMoon, 2% of tokens are burned, and 1% is put into the Ecosystem Growth Fund.

What is in the future for SafeMoon?

As with the rest of the space, the crypto market is in a dire situation right now, weighing on SafeMoon. A strong cryptocurrency market rebound is predicted when the macroeconomic backdrop improves over the next few quarters/years (i.e., inflation drops, allowing central banks to adopt more straightforward policies).

What are the chances of SFM returning to record highs and reaching the moon? There is a lot of doubt it ever will.

There are widespread accusations that SafeMoon is an elaborate scam/pump and dump scheme. The price action of SafeMoon since its launch in March 2021 (both V1 and V2 of its token), with upwards swings followed by bearish corrections, has all the signs of an actual pump and dump scam. Anyone who thinks logically would, of course, conclude the same.

June 2022 | Volume 32

Separate lawsuits have also been filed against prominent social media stars who promoted SafeMoon. Coffeezilla alleged that SafeMoon executives embezzled transaction tax funds that were supposed to go to the Liquidity Pool. According to the lawsuit, based on celebrity marketing, the defendants planned to sell their SafeMoon tokens at a profit when the numbers were high. Despite these accusations, SafeMoon has a large community of believers and supporters. Eventually, SafeMoon must live up to its promise of providing "humanfocused innovation and technology for a brighter tomorrow", or investors will E keep leaving.

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FEATURE Crypto Weekly

T

he social online game where your NFT collection and in-game experience get you to the top of the Tower. Make real money with the $CPO tokens by winning wager matches throughout the Tower, buying and selling NFT's, and winning tournaments. The future of NFT gaming is here.

Initial Room Offering After 8 months of developing with a team of 30+ people, the time to go into the alpha stages is upon us. To celebrate, we are doing a one-off, never to be done again initial apartment offering of our genesis apartments. Rooms will be the most wanted and highest value assets in the game and these apartment NFTs will give you a massive edge in the game and will be extremely rare.

In our game, it’s possible to buy apartments from other players, find them in some of your booster packs, or win them in community competitions. But as in real life,

June 2022 | Volume 32

apartments are one of the rarest things to find in our Tower. People want to move in, so it’s time to create that edge if you want to start out as a real estate agent in the Tower!

Or maybe you have just accumulated so many in-game NFTs already that you need space to display them all and use them for your character progression? Everything is possible, and we are totally here for it! This initial apartment offering is a celebration of Cryptopolis going into the alpha stages.

Do you want to be one of the high-rollers that starts their real estate portfolio before anyone else? Here is your chance.

The vision of Cryptopolis is to make managing digital assets fun. We strongly believe in the future of crypto gaming. Being able to have fun and make money at the same time is not a utopia anymore. It is here. And we want to make it the most fun for any adult to do so. Play-to-earn is the approach we chose because we believe anyone should be able to acquire our NFT's. We merge the Sims-

like mechanics with room decorating and social interaction.

Cryptopolis is the Future Cryptopolis is the future of traditional NFT games! Cryptopolis is an NFT-based game where you can collect, earn, win, and display your NFTs, while playing and socializing with your friends. Cryptopolis is an online game where you climb the Tower by collecting NFTs and gaining in-game experience. You can earn real money using the $CPO coins by winning wager matches, buying and selling NFTs, and winning tournaments.

Cryptopolis is an online social game. You can play Cryptopolis with friends only online.

Our in-game currency, $CPO, is used to buy bigger rooms in the tower and collect NFTs, furniture, and other relevant items. What is the goal? You can own your very own penthouse in Cryptopolis and become the richest player!

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FEATURE

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Crypto Weekly

Cryptopolis:

The Game Where Experience Counts to Win Here is an example of what can be found in version one after launch:

After registering, you will get a free small room situated in the cellars of the Cryptopolis Tower.

A full game tutorial will be made available before you begin.

An NFT marketplace will allow players to buy and sell NFTs to other players.

A functional friends system will facilitate communication between players.

Higher rooms in the Cryptopolis tower may be purchased for a fee.

If character customization is desired then you will be able to do so.

$CPO coins can be purchased in-game with fiat currency.

In-game, you can sell $CPO coins back to fiat currency.

There are three skill-based minigames where you can wager any amount of $CPO against your friends or strangers.

www.cryptoweeklymag.com

Based on experience points. To obtain higher value NFTs, you must play more to earn more experience and level your character. Cryptopolis will be powered by Binance Smart Chain (BSC). Binance Smart Chain is an established and powerful blockchain network. The reliability and safety of Cryptopolis make it a desirable DeFi game for smartphones and browsers.

June 2022 | Volume 32

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FEATURE Crypto Weekly

might even offer you some tokens for your unused furniture.

After the launch of season one V1.0, new public spaces will be added like a gym to train your character to be better in skill games. Adding the most popular games and places will be continuous as Cryptopolis listens to the community.

Minigames will be available: At the launch of Cryptopolis, there will be three minigames available. Minigames will continue to be added after launch. Every quarter will be a brand new season with a new theme.

Ball Battles: How Cryptopolis Works

Places to Visit:

Cryptopolis uses a Play-to-Earn model that allows players to earn $CPO tokens by playing games and obtaining value from ultra-rare, rare, and common NFTs. By playing, players gain experience. Cryptopolis ranks players based on their experience.

In addition to the various homes of players, Cryptopolis has much more to offer! Get your geek on in the library and check out the log of all NFT's ever created in Cryptopolis.

Play Triple Threat at the Token Night Club while checking out all players' fashion NFTs. Buy your basic furniture with $CPO at the PolisStore on the seventh floor. On special days, Herb, the man behind the counter,

On the market, NFT's can be freely traded for $CPO tokens, which can then be traded on exchanges or converted into fiat currency.

XP is earned by playing the game and participating in challenges and minigames.

As the player accumulates XP, he or she will be able to bid on higher value NFT's, purchase bigger rooms higher in the Cryptopolis Tower, and play more minigames in the future.

When you buy an NFT, you can display it in your room. You can also have your character wear the fashion item if it is a fashion item. Whenever another player enters your room, he has the option to tap on any NFT you display and see the purchase date, price, and similar NFTs available on the market.

If the other player decides to put an offer in for your NFT you will get a notification that someone has offered you X amount of $CPO tokens to buy your NFT. Once you have accepted or declined the offer you will receive the offered $CPO tokens from the other player and the NFT transfers to the other players' inventory.

June 2022 | Volume 32

Take over the field with your bouncy ball!

Hop on the squares to change their color to your own. When the timer expires, the player whose color has the most squares wins the match and gains XP and $CPO. Find Ball Battles in the arena to conquer the competition.

Chess: In the NFT library, find Dr. Yukizima. Win $CPO and XP by challenging him to a chess match! As soon as you have won, you will be able to play wager matches against other players for $CPO and XP.

Triple Threat: Play Triple Threat against two other players and risk some of your CPO! At the Token Night Club, you will be playing a game similar to Pong, but with a twist. E

Find out more about Cryptopolis aby visiting their website here: https://cryptopolisgame.com/

Join the community on Telegram and get your questions answered: https://t.me/CryptopolisGame

Check out all the buzz on Twitter: https://twitter.com/ CryptopolisGame

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“The Sims Of Web3” CRYPTOPOLIS

ONLINE SOCIAL

NFT GAME Sign up for the whitelist today for a chance to win a Rolex Datejust 41, approx. value $15.000 USD

Initial Room Offering First And Only Real Estate Sale

Different Rarities “1380 Rooms For Sale”

- Begins June 29 -

22

FEATURE Crypto Weekly

Ethereum May be the Most Promising of all the Cryptocurrencies

I

t is likely that Ethereum's rollout will take five to ten years due to its grand roadmap.

It's going to take a while, but that's because something like Ethereum has never been attempted before - Some of the best minds in the world are quite literally trying to create a new decentralized internet.

Despite Ethereum's ambitious roadmap, it is full of interesting challenges, and it will probably take about five to ten years to fully be fleshed out. If you stay around a while, and pay enough attention, you may just witness the creation of a new internet.

I’ve always believed that Ethereum’s superpower is attracting smart people to its ecosystem with interesting problems (the cool kids call this “nerd sniping”). From Proof of Stake, to sharding, to layer 2’s there’s always something interesting to get involved with and some problem to be solved. These aren’t just simple problems either - they involve building on the bleeding edge of technology and sometimes involve inventing new things altogether.

Ethereum is also being built out in a decentralized fashion, which means it

June 2022 | Volume 32

typically takes longer to accomplish things.

This is because the entire community needs to come to a consensus on what does, and does not, make it into the network - there is no dictator calling the shots and everyone has a voice. On top of this, just coordinating the actual core developers and researchers is a difficult task because there are hundreds of them, and their voices obviously matter too.

I think all of this is a reason why Ethereum has so many competitors - many people get

frustrated with Ethereum’s “slow” roadmap rollout. Due to this, it’s easy for a competitor to come along, promise the world, move “faster” because they’re centralized, and potentially look like they are doing better than Ethereum. In reality, all they are doing is delivering the bare minimum, while extracting the maximum amount of value they can - marketing is much cheaper than actually building a useful product after all!

On top of this, most of these chains don’t care to ever decentralize, nor do they even have a viable path towards doing that.

All in all, I believe that if you stick through all the ups and downs that crypto dishes up, then you’ll be able to witness some pretty awesome history. I mean, even something like “The Merge” will be talked about for decades to come and be looked back on fondly by all those that experienced it and you have the opportunity to be part of that history over the next few months - I personally wouldn’t miss it for the world!

All the best to all of you

E

Robert Stone Editor

www.cryptoweeklymag.com

NEWS

23

Crypto Weekly

in Cryptocurrency!

To celebrate the worlds first retail cryptocurrency magazine!

Scan the QR code for a chance to win!

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June 2022 | Volume 32

24

NFT FEATURE Crypto Weekly

N

FTs are a valuable tool for anyone considering a career change or just learning more about the industry.

Here's how a new company plans to take over the NFT market. As a leading participant in the market, Yeti Yacht Club believes that it has everything necessary to succeed.

The People Behind The Project Considering the current situation of the NFT sector, assembling a skilled team is one of the most critical aspects of launching a new project. Yeti Yacht Club gang members include Ted Talkers and online influencers who claim to know the industry. There's no denying that NFT fans love Bored Ape Yacht Club. "We think Yeti Yacht Club will replace products such as Bored Ape soon," said a member of the team.

To expedite the process, the group announced the reservation of Club Med 2, a cruise ship. Club Med operates the vessel as a cruise line. Over the last two decades,

June 2022 | Volume 32

this vessel has been an active presence in international waters. If you enjoy sailing internationally, Club Med 2 is already on your radar. With the initiative staff members display, customers will receive an elevated level of service. In order to achieve their goals, the project's creators believe they can enlist the help of a few well-known celebrities.

The Club Made a Proposal It is based on the concept of a club. Simply by joining a Yeti NFT, you can take part in a variety of activities. The team is creating a sense of exclusivity around this club. A journey to Monaco on an all-inclusive basis becomes a memorable experience when the package includes one of the largest sailing yachts in the world, with a maximum capacity of 600 passengers.

If you want to join this club, you'll need a Yeti NFT token in your crypto wallet. For the forthcoming season, members of the Yeti

Yacht Club will have the option of renting whole islands.

Several team members are seasoned speakers who have previously delivered Ted Talks presentations. Yeti NFT must form a professional team due to the current state of the industry. The public will soon be able to examine the Yeti Yacht Club, its features, and its personnel.

Will Sapphire Studios Help?

Sapphire Studios is developing a new MMO game based on the Metaverse framework.

Gamers can participate in both of these activities through the Yeti Yacht Club website.

To provide players with a more engaging and immersive gaming experience, Sapphire Studios places a high priority on P2E incentives. The founders also decided to create their own mobile MMO after investing time and money in other mobile MMOs, for a long time, without seeing any return.

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NFT FEATURE

25

Crypto Weekly

Yeti Yacht Club Project Wants to Take over the Luxury Mystique The Team's Approach to Creating a Successful VIP Investor Network

Investors Will Soon Evaluate This Project

The "Club" is the major organizational framework for this project. A Yeti NFT token in your cryptocurrency wallet is a prerequisite for joining this group of people.

Most people in the NFT community have heard of the Bored Ape Yacht Club initiative.

Bored Ape Yacht Club members loved NFTs made by a computer. Yeti Yacht Club's creators have claimed that their effort wants to beat Bored Ape's record. If you need more information, see the project's website or social media. The success of this project will be determined by the market. We'll wait and see how Yeti Yacht Club evolves, and responds to the world, and go from there.

All year long, Yetis’ owners are welcome to take part in a wide variety of activities.

Taking a trip to Monaco aboard one of the world's largest sailing yachts, which can accommodate up to 600 passengers, is an essential part of this project's offer.

It's possible to rent out a full island as a member of the Yeti Yacht Club. The team will invite a group of celebrities to an annual party and give access to all the club members.

This event can be a chance to meet VIPs in the real world. According to the project's plans, Club Med 2's large cruise ship will host a number of events in the future.

www.cryptoweeklymag.com

comes to the people that made Sapphire Studios possible, they all had a common interest in cryptocurrencies, gold mining, and video games. E

The future holds many surprises for us.

Sapphire Studios and the Yeti Yacht Club are developing a massive multiplayer online game (MMO). Additionally, the designers plan to develop a proprietary Metaverse system soon.

Sapphire Studios has incorporated P2E incentives into its approach in order to help gamers better manage their time. When it

June 2022 | Volume 32

26

FEATURE Crypto Weekly

Is it Time to Buy, or Sell NFT`s?

A

s with the stock market, the crypto and NFT markets are experiencing a downturn. Crypto prices have declined significantly for 18 months now. On June 15, 2022, Bitcoin reached a new 18-month low, according to Reuters, and is now 70% below the record high of $69,000, set in November 2021.

As many altcoins are tied to the value of Bitcoin, most of the crypto market is also struggling. As reported by The Wall Street Journal, crypto lender, Celsius Network, halted all withdrawals, snaps, and transfers on June 12. "This is a necessary step for all stakeholders to stabilize liquidity and operations, while preserving and protecting assets," the company explained in a blog post.

Do NFTs also face a bear market?

According to NFT Evening, NFTs are not tied as closely to the financial cycles of the stock market or economy as cryptocurrency. Theo wrote in an article in the NFT Evening on March 8 that, "NFTs are proving bulletproof against market crashes."

June 2022 | Volume 32

During a bear market, how should you manage your NFTs?

Despite being unrelated to the crypto market, NFTs are experiencing a downturn of their own. The NFT Evening reported that February saw a 40% decline in NFT sales.

The Cryptonomist reported that established NFT projects such as Bored Ape Yacht Club and CryptoPunks lost roughly 63% of their value in a short period of time in May. A dip of that magnitude indicates a bear market for NFTs that may be much worse than the crypto market is experiencing. It is not just the overall market downturn and the crypto bear market that have contributed to the dip, but also NFT scams and cyber attacks that have grown in prevalence in 2022, experts report.

The Cryptoticker advised that a bear market is a good time to invest in NFTs, stating: "Many NFTs have exceeded expectations after the bear market." Further, the Cryptoticker writer Owotunse Adebayo stated, "The low risk and prices associated with a bear market implies low losses should the asset collapse." Many people collect NFTs for their intrinsic artistic value, similar to how one might collect fine art or other collectibles. NFTs are often chosen by consumers because they like the artists or companies they want to support, without much thought given to the long-term value.

The price of NFTs may be lower in a bear market than what you expect. Depending on the profit (or loss) you stand to make or endure, you can decide to sell (or not) as the market changes. NFTs remain volatile assets even when they appear "on sale" in a bear market. If you are considering NFTs as an investment, you may want to refrain from spending more than you can afford to lose. E

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28

FEATURE Crypto Weekly

Sure, Crypto Is Crashing… So, What Else is New?

June 2022 | Volume 32

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FEATURE

29

Crypto Weekly

T

he crypto market behaves like the stock market, but the faithful say it's not a reason to abandon it. "Grab your convictions and stick with them." That advice, offered Tuesday by the hosts of the popular cryptocurrency podcast, Bankless, Ryan Sean Adams and David Hoffman, captures the mindset prevalent in crypto circles these days.

The crypto market is in trouble. Since the beginning of the week, Bitcoin prices have dropped by over 29 percent, Ethereum by 38 percent, and essentially every other cryptocurrency has followed suit. By November 2021, when the rise of crypto, and Web3, looked irresistible, the value of the cryptocurrency market had fallen by about 70 percent since its peak.

Stablecoin Tether, which was set up to maintain parity with the US dollar, and was rumored to be backed by US dollar reserves (although there are questions regarding the composition of those reserves), has lost its peg and currently trades for 99 cents a unit.

Crypto companies, beginning with exchange Coinbase, have announced massive layoffs.

Celsius has become the latest victim of the crypto crunch after it has invested $475 million of its customers' money in a synthetic asset that can theoretically be converted to the leading cryptocurrency, Ethereum, in the future. This comes after the meltdown of stablecoin Terra Luna last month, which sent shockwaves throughout the industry. A

3.5 percent drop in the S&P 500 index and a 4.2 percent decline in the Nasdaq was reported on Monday.

You may want to freak out if you're among the 16 percent of Americans who bought cryptocurrency in the past two years.

However, among crypto heavyweights, the general reaction to this drop is zen to blasé.

On Bankless' Twitter account, a meme shows a noose-wearing James Franco at the gallows — standing in for crypto holders who survived the 2018 crypto crash — asking two weeping crypto holders from 2022 if it is their "first time" there. Crypto skeptics on Twitter shared a meme that compares selfassured crypto investors to a dog sipping coffee in a burning shack. Despite flames threatening to consume it, the dog says, "It's fine." As long as blockchain adoption, user expansion, and real-world use cases thrive, Justin Sun, Grenada's ambassador to the World Trade Organization, believes the industry isn't heading down. Currently, the market is flooded with FUD [fear, uncertainty, and doubt]; the crash of [Terra Luna] and recent insolvency issues of some DeFi platforms and funds are not helping at all. However, I believe in rational expectations and the market's ability to correct itself. Cycles always occur, and we are at the beginning of the current one."

The chief technical officer of Tether, Paolo Ardoino, recently said that there is a silver lining in the crisis, at least when it comes to

Bitcoin. Ardoino says that, “Bitcoin might be able to hold its own against the rest of the altcoins for a while longer. Bitcoin went down 60 percent, but the rest of the altcoins fell much farther. Therefore, Bitcoin has proven to be more resilient." "We may see bitcoin rally in the next few months," he says.

Cryptocurrencies - assets routinely touted as hedges against inflation and the whims of the financial system - are behaving like stocks. Bitcoin's troubles are similar to Netflix's recent woes, when the stock tanked by 40 percent in a single day in April, following disappointing subscriber numbers.

According to Jamie Burke, CEO of crypto venture fund Outlier Ventures, crypto has behaved just like a stock, and the two are moving hand in hand because the lines between them have blurred. A lot of new money has poured into stocktrading platform Robinhood due to crypto's vertiginous price peaks and feverish hype.

Burke says that "digital assets began to have a macro-environmental effect." "Many money entered the financial system: They used it to speculate, so crypto benefited from that. However, digital assets can be negatively affected when the wider macro environment changes."

According to him, crypto may enjoy more extreme highs on good news and extreme lows on bad news. If Russia declares peace, crypto may go up. Cryptocurrency has never been a hedge against inflation-or against anything. The financial ecosystem would eventually incorporate it into itself.

Cryptocurrency is now used as one of many possible "risk-on" assets, according to the chief strategy officer of consultancy BitOoda. Individuals seeking safe havens for their capital, and investors who have already invested in high-risk technology companies, will naturally take notice of Bitcoin and other crypto-assets.

Doctor says interest rates near zero led the market to say, "let's take a risk, it's okay."

“Now that rates are rising and inflation is biting, crypto is the first thing people ditch from their portfolio,” he says. And the market's answer is, "no." A general macro economic downturn and stock

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FEATURE Crypto Weekly

market turmoil can only explain so much of cryptocurrencies' decline.

One example of self-inflicted pain is the breakdown of Terra Luna, an "algorithmic stablecoin," whose value was also supposedly pegged to the dollar, and lost nearly 99 percent of its value in May, destroyed 42 billion dollars of investor funds, according to Elliptic, a cryptocurrency forensics company.

Terra's dollar parity relied on economic incentives and code. Terra declined when people began cashing out. Celsius, which had a significant stake in Terra, is experiencing liquidity problems and suspending withdrawals over the weekend.

The developer, Do Kwon, did not respond to inquiries. Celsius executives have not responded to emails, texts, or voicemails.

In other words, during the past couple of years, when an awash in cash markets looked for new investments, schemes that had tenuous economic fundamentals

June 2022 | Volume 32

attracted investment, until the tide turned.

The downturn cannot be attributed solely to Terra Luna and Celsius, since the downturn is a problem facing the entire industry.

Even at face value, several major crypto players partnered with ventures that were peddling dubious products in the absence of regulation.

A creator of Circle—a stablecoin company licensed to transmit money in 46 US states— is scathing in his criticism. "Do exchanges have any responsibility? Customers will put it on themselves,” he says. "That's not true.

The shelf is their responsibility. Would you put baby formula next to rat poison?”

CZ Zhao, CEO of Binance, disagrees. "I don't know," he tells me after a week after the Terra Luna meltdown. "I mean, Netflix dropped on Nasdaq." “Why don't we have a stock exchange?” According to him, he never saw any "intentional scamming behavior" on the part of the Terra Luna team, and he continues to believe in algorithmic stablecoins. Binance invested $3 million

in the project in 2018. “The currency we use today hasn't lasted more than 300 centuries," CZ says. Terra luna lasted just over three years at the most.

Many observers hope the current market collapse will teach people valuable lessons about who to trust and who not to trust.

Additionally, it may be able to rid the industry of frothier, weaker projects.

According to Kristin Smith, executive director of cryptocurrency lobbying group the Blockchain Association, such down markets are good for crypto because they're humbling. "Ultimately, this is going to lead to everyone being stronger and better.”

“Furthermore,” she adds, “regulators are taking note, and they'll be more aggressive now that they know what can go wrong.”

Cuckoo crypto finance is not necessarily over, Ardoino says. "People are stupid. It's not just in crypto: People go long and short on futures all the time, not just in crypto.

You can only teach people so much." E

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32

FEATURE Crypto Weekly

Talk to a Bitcoin Miner About Crypto Winter This Year

June 2022 | Volume 32

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FEATURE

33

Crypto Weekly

I

n the wake of falling cryptocurrency prices and skyrocketing energy prices, Bitcoin miners are taking their foot off the pedal. Blockchain.com reports that the Bitcoin hash rate–a measure of how much computing power is being used to hash out new coins–has fallen 5.4% since June 12, the day Bitcoin's price fell below $25,000.

In the meantime, the price of graphics processors, which are needed to create new Bitcoins, dropped an average of 15% in May, according to Tom's Hardware, indicating miners are dumping their chips.

It appears that some miners have given up on the Bitcoin mining business, finding the enormous energy costs for such a small reward no longer worth it. The decline in hash rate, and increased availability of GPUs, indicate that miners may be throwing in the towel. Crypto market analyst Yuya Hasegawa said in a note on Friday that, “supply and demand have not been in favor of the price this year.”

Bitcoin mining has become much more competitive in the past few months, with the Bitcoin hash rate reaching an all-time high on June 12. As more people mine Bitcoin, it becomes more difficult and requires more energy to do so.

As difficulty peaks, the price of the coin plummets. According to Hasegawa, to get out of this situation, either the difficulty must drop or the price must rise substantially.

According to him, “If the current situation continues, miners will likely sell their Bitcoins when the price recovers, which will slow

down the pace of price recovery, and could put Bitcoin in a range-bound situation.”

Is this the beginning of a new hash-crash?

The share prices of listed miners Marathon and Hut 8 Mining both fell 41% over the past month, while total revenue to miners fell to its lowest level in nearly a year, according to Blockchain.com. Alexander Neumueller, project leader at Cambridge Centre for Alternative Finance, says being in the mining business at present is not fun.

Due to the steep drop in Bitcoin prices, revenues have fallen sharply. Despite a rally on Thursday night, Bitcoin's value has been creeping toward $20,000 since the start of the week. Over 70% of its value has been lost since November 2021, and its total market value has declined from $3.2 trillion yesterday, to just below $1 trillion now.

While Bitcoin prices have plummeted, energy prices are on the rise, and this means that miners are now facing the pain from several directions: higher costs and less revenue per Bitcoin mined. Kazakh miner Didar Bekbaouov, the cofounder of mining company Xive, told the Financial Times he stopped mining Bitcoin once it dropped under $25k.The company has been preparing for this day and has accumulated storage of "unencumbered Bitcoins," which it will be able to deploy for acquisitions on this day, according to Hut 8, which stated that its only seasonality is related to electricity prices based upon volatility in natural gas prices. “Many companies acted on impulse during the height of the market, and may find they are stretched and underfunded in the coming months," explained Jaime Leverton, chief executive of Hut 8

Mining Crypto in an Energy Crisis Mining Bitcoin may become increasingly difficult, as countries like Germany ask their citizens to conserve energy due to rising gas prices. Meanwhile, the cost of mining an alternative currency like Bitcoinan estimated 15GW of electricity each day, based on research from Cambridge Centre for Alternative Finance-has some wondering whether it is really necessary.

In a report issued a bit earlier in the month, Riksbank called for a ban on Bitcoin, citing the fact that, "some mining of crypto assets has recently been established in northern Sweden, where it consumes as much electricity as 200,000 households." E

www.cryptoweeklymag.com

June 2022 | Volume 32

34

EDITORIAL Crypto Weekly

Is Crypto Winding Down or Just getting Started?

C

rypto is on shaky ground. Bitcoin is down about 50% this year, Ether 70%-and hardcore believers are panic-selling. One has to wonder about the future of digital currencies. Chris Dixon said those who doubt crypto are taking too myopic of a view.

A crypto-evangelist, Chris is a prominent figure in Silicon Valley. He is General Partner at Andreessen Horowitz Venture Capital. At the beginning of the year, he seemed to be doing well with his proselytizing, but now it's all crashing down. Last week, Bitcoin reached its lowest point in 18 months — at just above $17,800 —and Ethereum is worth about a quarter of its November peak.

"To look at the history of the internet and tech, there are two tracks: a financial track

and a product and tech track," Dixon told host Kara Swisher. The financial track has been "this crazy uncle that's jumping up and down," he said. "I thought last year was too high. I think this year, it's too low. But it seems wildly volatile to me in a way that doesn't fully make sense." He said, "it should be viewed separately from the product and tech track," instead of saying, "it should be through the long lens of history." "Blockchain is history in the making," he said. "There has been a new computing wave approximately every 10 to 15 years since World War II. And for each of those, I spent a lot of time thinking about this and reading its historyeach wave had an incubation period." But, "I don't think that we should throw the baby out with the bathwater," he said. "I think

that core technology is critical." “Web3, combining the best features of the open, decentralized protocols of Web1 with the advanced modern functionality of Web2, has the potential to render powerless the handful of giants that control the web and put that power in the hands of users," Dixon said. He added: "I believe Web3 and crypto are the only disruptive technologies in the world right now that can take down these empires and rebuild them."

I agree with Dixon. Just because we have had a few bad weeks is no reason to throw away everything that is so promising about crypto and Web3. This is still only the beginning.

All of us are still early to the game. Volatility attracts traders looking for profits, but it can be nerve-wracking for new investors.

Prices spike and crash almost as quickly, while rumors, sentiment, and fundamental developments are rapidly factoring into the market. As new cryptocurrencies emerge, and others fall by the wayside, traders can expect plenty more of this volatility in the future. What investors should be doing if they want to stay on top is simply managing their risk. Never invest more than you are willing to lose. I am not winding down my crypto investments but just getting started.

I am not slowing down my study of what is going on. I am increasing it.

Robert Stone Editor

June 2022 | Volume 32

www.cryptoweeklymag.com

FEATURE

35

Crypto Weekly

Crypto Regulation Will Take the Industry to New Heights K

evin O'Leary, Shark Tank's top shark, believes regulation will lock in huge capital investments in crypto. Former crypto skeptic O'Leary, now believes clear legislation will drive the value of crypto up.

Currently, Senator Lummins' crypto bill is being debated in Washington DC by members of Congress, and O'Leary was recently in Washington DC to lobby Congress on behalf of the industry. Now that is a complete turnaround!

In a recent interview with the Bankless Podcast, O'Leary discussed his optimism about crypto despite the recent market decline and why he believes that, with clear regulatory frameworks in place, crypto could become "the 12th sector of the economy."

The Importance Of Regulation Historically, cryptocurrency has been seen as a fringe element of the financial world due partly to its lack of regulatory oversight.

Gary Gensler, former head of the SEC, labeled crypto the "wild west" of investing last year and called for more investor protections. In O'Leary's case, the possibility

that authorities might regulate crypto changed his mind.

"The event that turned me around, what changed me completely, was when the Canadians, the OSC (Ontario Securities Commission), granted the first crypto exchange license attached to a dealer broker, a compliant platform. It wasn't rogue anymore," O'Leary explained to Bankless.

As O’Leary and others have altered their hardened opinions due to the force of logic, so should the rest of the world. As the Editor of this publication, I see the same process going on in the mind of the public at large.

Here we just had "Crypto Winter," and now, along with O'Leary and others, I see spring on its way! I call it the "great flowering."

According to O'Leary, Canada's crypto rules could influence other countries to adopt their own. Although regulation is important to protect crypto investors, O'Leary is most excited about how it will create clear rules that will allow sovereign wealth funds and pension plans - the largest financial institutions in the world - to invest in cryptocurrencies.

"I always ask these institutions and sovereign funds, what share of Bitcoin will you put into? Just Bitcoin - what will you allocate if you could? And they always say, well, we can't, because the SEC hasn't ruled on it yet," O'Leary said.

O'Leary said that once regulations are adopted, people who manage money for sovereign wealth funds and pension plans will "allocate 50-100 basis points" to crypto. It may not seem like much, but the funds O'Leary describes have billions, if not trillions, of dollars, so this is a lot of cash coming into crypto. It's not going to stop.

O'Leary is talking about bringing the real money into crypto, “the real sovereign wealth," O'Leary continued. "And so for everybody that used to criticize me about saying, let's get this thing regulated, now they understand why they wanna get it regulated too. It's the trillion dollars that'll come into this market overnight when it's regulated."

When all that happens and the full support of the industry is behind it, along with the U.S. Congress, after it gets its act together, the whole crypto investment world will be a different place. It's not going to be long coming either. The world won't wait because money is involved, and guys like O'Leary see clearly where all this is going. E

www.cryptoweeklymag.com

June 2022 | Volume 32

36

HIDDEN GEMS Crypto Weekly

PROJECT 1

cryptopolisgame

CryptopolisGame

A social game where you can collect, earn, win, and display your NFTs while playing and socializing with your friends. The vision of Cryptopolis is to make managing digital assets fun.

Cryptopolis strongly believes in the future of crypto gaming.

Being able to have fun and make money at the same time is not a utopian dream anymore. It is here. And Cryptopolis wants to make it the most fun for any adult to do so. Play-to-earn is the approach we chose because Cryptopolis believes anyone should be able to acquire Cryptopolis NFT’s. Cryptopolis merges the Sims-like mechanics with room decorating and social interaction.

In Cryptopolis your NFT collection and in-game experience get you to the top of the tower. Make real money with the $CPO

PROJECT 2

atsnft.io

tokens by winning wager matches throughout the Tower, buying and selling NFT’s, and winning tournaments. The future of NFT gaming is here.

Cryptopolis is free-to-play & play-to-earn. An online social platform with a blockchain back end and an associated cryptocurrency ($CPO) - Cryptopolis has a progression system based on acquiring resources, items (as NFTs), and prestige - Where players connect with each other and perform activities together.

But they also compete with each other for in-game standing (prestige) and $CPO in various minigames. Cryptopolis is the first gamified social platform whose users can earn real money by playing and trading NFTs.

Apes Together Strong (ATSNFT)

atsnft

When the initial design of our Ape was being drawn, many important long-term variables were considered. The main goal of this collection was to create something different from what has been depicted in other Ape collections. As this collection was inspired by the movie “Planet of the Apes,” our Ape is extremely detailed for a 2D collection, it is front-facing, and will be the King of the Apes; we are not a copy-cat collection.

Beyond that, involving our community has always been a top priority and from the beginning, we have had a dedicated channel that our community can use to collaborate with the artist. We have taken suggestions and illustrated the best ideas into the collection. We continue to work on progressing and refining our ultra apes, our traits, and our backgrounds to make it the best possible artwork for our community. Let it be

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known that our artwork is created with a 300DPI, which allows for it to be printed without degrading the quality. This will be important if you want to print your unique Ape, especially with the ownership utility arriving post-mint.

Creating an Organic, Cohesive Community-​Phase 2 The strength of the community is the single most important aspect of an NFT collection. It allows for a family atmosphere, where everyone will win. WAGMI. As our collection is inspired by the “Planet of the Apes,” we plan to use our community to help our end goal: to take over. Exclusive invitations were given out to form our base community, and bringing in users that have an aligned vision of our future will continue.

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BEGINNERS GUIDE Crypto Weekly

Should a Beginner Buy the Bitcoin Crash?

Bitcoin, and the rest of crypto, are having a rough year. BTC, the market's biggest crypto, is down roughly 70% from November highs. The Federal Reserve's actions and fears of a recession have consistently put pressure on financial markets, and cryptocurrency has been among the most challenged assets. Bitcoin fell to $17,800 last week. In my own experience, I spoke with several investors about buying now at these lower prices, and none of them said it was a good time.

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BEGINNERS GUIDE Crypto Weekly

"Unfortunately, I'm not a buyer at these levels," said Marc LoPresti, managing director at The Strategic Funds. "In the crypto fund I advise, we've been in cash 80% of the time for a while now because of this choppy market." LoPresti said he had heard from traders that they would "back up the truck" if Bitcoin fell to $16,000, but he was skeptical: "We'll see."

“Historically, we have weathered these types of storms, but we are now in a bear market - it never feels good. As for the short term, I am extremely nervous about the markets and I think we are in for a lot of pain over the next few months and possibly longer."

Crypto is going through a "flushing" right now. To survive this period, we need to weed out the froth and focus on applications that have utility, end-use, and survive this period.

I, like other investors around the world, still think Bitcoin has value.

In particular, Bitcoin is under pressure, because it is no longer construed as an inflation hedge. What it's trading like is unprofitable tech. I don't think that invalidates Bitcoin. I think there is a level of support. Maybe $16,000. When could it be reached? Well, it seems we've already reached it.

Is 'buy the dip' a good strategy?

A 'buy the dip' strategy assumes that price drops are temporary aberrations that will

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correct themselves over time. Dip buyers hope to take advantage of price drops by buying at a relative discount and reaping the benefits when prices rise again.

It's risky to buy cryptocurrencies at any price, let alone a dip that could turn into a long-term trend. Your investment could return to previous levels, but it could also fall even further, leaving you underwater.

Based on past performance, the current dip (or crash, depending on your perspective) may bounce back just as it did last year when prices fell to similar levels before returning to pre-dip levels, and even peaked in the fall.

But of course, they might not.

Even in the unpredictable world of cryptocurrencies, past performance is no guarantee of future results. Bitcoin prices have shown seasonality to date, falling in value in the spring and then rising again in early summer. According to Oleg Giberstein, "many a novice investor have lost money trying to "catch falling knives". Those interested in 'buying the dip' are advised to decide on how much money they are comfortable spending each month on BTC or ETH, and not to worry too much about price fluctuations.

Digital exchange Wirex's Pavel Matveev advises buyers to hedge their bets. To reduce risks, he advised diversifying your crypto portfolio with different altcoins. E

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FEATURE Crypto Weekly

Nigeria is Realizing the Potential of Cryptocurrency A

54-page document released last month by Nigeria's Securities and Exchange Commission (SEC) outlined new regulations regarding issuance, platforms, and custody of digital assets. In a country suffering from the economic repercussions of the pandemic, the move by the SEC will legitimize cryptocurrency in Nigeria. Already 33 million people invest in cryptocurrencies in Nigeria.

In light of the Central Bank of Nigeria's (CBN's) alleged outlawing of the technology entirely in 2021, the recent action taken by

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the Nigerian SEC was unexpected. With this move, the state legitimizes a technology that can serve to eliminate barriers to financial inclusion in a country where 36 percent of adults are financially excluded and often do not have bank accounts.

Because of the high inflation in Nigeria (currently 16 percent), it should come as no surprise that millions of Nigerians are turning to crypto to meet their daily needs.

Blockchain technology is often used to hedge against inflation, but many have simply taken advantage of it for everyday

payments, sending money abroad (and receiving it instantly), and for investments.

Continuing problems with the e-Naira, Nigeria's central bank's digital currency, have not improved long standing problems in the country, such as financial market access, which has led many to turn to crypto. The country is the second-largest cryptocurrency player in the world, behind only the United States, according to Bloomberg. Nigeria's appetite for crypto is as strong as ever, given the fact that the technology was essentially outlawed in the country.

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Crypto Weekly

towards embracing crypto and blockchain technology. Taking such steps at the state level will enable the Fintech sector to grow and empower young entrepreneurs even further.

Several studies report that crypto technology stimulates innovation and that banning it would jeopardize financing for industries such as micro, small, and medium-sized businesses.

By continuing to impose restrictive policies, foreign direct investment (FDI) into supposed tech hubs in Africa, such as Lagos, could be hindered. A new Silicon Valley without silicon would result.

Blockchain technology represents a way to democratize blockchain technology throughout Africa via mobile phones, which will enable instantaneous, secure, and direct payments through the blockchain.

To be successful, smallholder farmers need technologies, such as blockchain, to gain access to markets and information.

Combined with the growing number of smartphones and mobile phones rolled out across Africa, blockchain has been growing for some time. Hence, the SEC could be the key to Africa's economic recovery after the pandemic.

According to a report published in April by the African Development Bank (AFDB), young people are increasingly frustrated by arbitrary government policies. As with other restrictive policies and challenges that these people have faced, they have often been able to work around them, but this recent move by the SEC is a positive step in providing assistance for those seeking more empowerment.

As a result, the CBN's continued approach to crypto is outdated and unwanted by millions of Americans seeking economic empowerment and social advancement.

Africa is the world's most youthful continent with over 60 percent of its population under 25 years of age, so it is imperative that we help its tech-savvy, and youthful, populations as much as we can, if we want them to reach their full potential and modernize the continent. As part of the

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SEC's new framework, a number of features are designed to mitigate cryptocurrencyrelated risks. Businesses offering crypto products or services to Nigerians now need a virtual asset service provider (VASP) license, in addition to the relevant category licenses. To ensure maximum transparency, the SEC will now keep records of all crypto exchanges providing services to Nigerians.

In a country that has lagged behind others in the world at times, this is a positive step

To achieve a modernized economic climate in Nigeria, the CBN should now collaborate with the SEC. This will prevent millions of people from fearing unjust repercussions from using the technology.

Like many other technological advances of our time, cryptocurrency is here to stay, and we must embrace it, and not fight against it. Crypto is a great way to promote Africa's economic revolution by removing barriers to finance across the continent.

Robert Stone

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Crypto Weekly

"Most People Have No Idea What Is Coming!"

— Michael Saylor Reacts to Bitcoin & Crypto Crash

Crypto markets are getting smashed all across the board, with Bitcoin hitting new lows, falling into the low $20,000’s and Ethereum + many other Altcoins down 40% or more.

With investors everywhere beginning to panic, one investor feeling perhaps the most pain of all is notorious Bitcoin Bull Michael Saylor, who is now down billions on his massive Bitcoin position. In his latest interview, Saylor reacts to the market collapse and explains what his strategy is, moving forward.

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Crypto Weekly

The Crypto Market Crash is a Good Thing When crypto market cycles end, we typically always see them compared to other big financial bubbles, such as the “dot-com” bubble of the late 90s. This time around has been especially acute because of how fast the bubble deflated and how big it got in the first place ($3 trillion total). Though, just like how the dot-com bubble didn’t kill the internet, the 2022 crash will not kill crypto.

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FEATURE Crypto Weekly

I

’m going to play devil’s advocate here, and say this crash in crypto has been incredibly healthy for the long-term prospects of this industry. I mean, the amount of froth, unsustainable nonsense, scams, rug-pulls, ponzis, and more that we saw in 2021, was just completely gross. Basically, all of it was created to just extract as much money as possible out of the ecosystem, while giving absolutely nothing back. Obviously, this could only sustain for so long before new money stopped coming in, and that’s why we’ve been “down only” since the November 2021 top.

These crypto market crashes are like a wildfire ripping through a forest - burning down the old and dead things to make room for something new to grow. This is exactly what happens in crypto - we flush out all of the unsustainable/garbage projects and the froth that comes with them, and then we give birth to new ones that are nurtured in the bear market. And, just like a wildfire, this cleansing is anything but orderly and includes a lot of collateral damage - but the ecosystem is better off for it in the long run.

Another positive to crypto market bubbles is that they work to attract many new people

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to this ecosystem and they also work to keep crypto relevant in the mainstream media sphere. Yes, most of the coverage of crypto is negative from mainstream media, but at least they’re talking about us! Imagine if they were completely ignoring us - we’d probably have a much harder time getting attention. Obviously, most new people that we “onboard” during the bull market won’t stick around - but some will - and some of those will go on to create the next great products and services.

Eventually, these booms and busts that crypto is so used to, will become less volatile, and eventually, the crypto asset class will become as boring as equities. Though, just because it becomes less speculative doesn’t mean that amazing products and services won’t continue to be built - on the contrary, we’ll probably see even more of them since by that point crypto will be as ubiquitous as the internet!

In the end, speculative bubbles come and go - but technological progress is forever.

Robert Stone Editor

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