Crypto Guides, Knowledge & Insights

A $3 billion crypto trader who still resides with his mother is revealed via public documents.

According to public documents, a 25-year-old cryptocurrency trader operated his crypto business from the luxury of his folks Sydney, Australia, home in 2021, transacting approximately $2 billion (3 billion Australian dollars) worth of cryptocurrency.　　Darren Nguyen, the young gun in question, has not publicly discussed the success of his modest trading company, PO Street Capital, but a Jan. 2 report in The Australian exposed it through public records.　　　　Nguyens cryptocurrency business, which is incorporated at his parents residence in Guildford, Sydney, generated an after-tax profit of AU$10.41 million for the fiscal year that concluded on June 30, 2021, according to documents submitted to the Australian Securities and Investments Commission (ASIC).　　This resulted from cryptocurrency trades for a total of $2.98 billion over the course of a year.　　It was a significant increase over Nguyens earnings in the prior year, which came to about AU$692,182 in 2020.　　The figures reveal his net profit climbed by 1,404.12% in 2021 in comparison to the previous year, according to the accountants for PO Street Capital. In June 2021, PO Street Capital reportedly had AU$4.3 million in short-term contingencies and a AU$1.3 million loan company was repaying to Nguyen, but no additional debts were recorded on its books. In addition,

2023-01-03Deep Dive

Foreign investors in the UK are exempted from cryptocurrency taxes.

In an attempt to enhance the U.K., newly appointed Prime Minister Rishi Sunak a new crypto tax cut for non-residents and international buyers was implemented on January 1st, 2023, in a global cryptocurrency center. CoinDesk was the initial publication to break the story, stating that the U.K. The tax division of the government, HM Revenue and Customs, stated in an email:　　“This exemption is an important factor in attracting global investors, meaning foreign investors wont be brought into U.K. tax simply by appointing U.K.-based investment managers.”　　It went on to add:　　“To build upon the U.K.‘s position as an investment management hub, this exemption has been extended to include crypto assets, so that funds which include them aren’t put off from appointing U.K. managers.”　　The UK currently has advisory services for domestic market participants in place, and in July, HM Revenue and Customs published a survey to get opinions from users and experts on how the nation might approach taxation decentralized finance.　　　　The Bank of England claims that cryptocurrency is too risky to be unregulated.　　In recent pronouncements, the Bank of England discussed the risk posed by cryptocurrency and the imperative need for regulatory oversight. The deputy governor of the BoE emphasized that cryptocurrency trading is

2023-01-03Deep Dive

BUSD worth $6.2B withdrawn from exchanges in 30 days

According to Glassnode data, $6.2 billion in BinanceUSD (BUSD) was removed from exchanges in the last 30 days.　　The figure below depicts the change in the net position of BUSD on exchanges. The green spikes reflect BUSD inflows, whereas the red spikes represent outflows. According to the graph, BUSD outflows began in late November 2022 and increased dramatically during December 2022.　　During this moment, the supply of BUSD fell below $20 billion for the first time since September 2022.　　Following a surge in withdrawals on the exchange, the market cap of the Binance-backed stablecoin fell by more than 15%. As concerns about Binances financial stability grew, crypto investors shifted a large portion of their BUSD holdings into other stablecoins such as USD Coin (USDC) and Tether (USDT).　　Binance experienced enormous outflows from its reserves in mid-December, processing $6.6 billion in withdrawals over a seven-day period at the height of the FUD.　　Further investigation revealed that $2 billion BUSD had been withdrawn since December 15. According to Glassnode data, the stablecoin supply has dropped to $16.42 billion from $18.64 billion at the time of publication.　　Meanwhile, the above graphic reveals that the BUSDs exchange balance has fallen below $16 billion. According to the graph, $13.2 billion is

2023-01-03Deep Dive

Will Nigeria be the Next African country to legalize crypto?

By: Damian Okonkwo　　　　The current move by the Nigerian government to recognize crypto as investment capital which was disclosed last year in December 2022, by the Chairman of the House of Representative Committee on Capital Markets and Institutions - Mr. Ibrahim Babangida has got many investors speculating whether elevating cryptocurrency to such status within the country could further push the government to legalize crypto as a legal tender in the future.　　As disclosed by Ibrahim to Punch newspaper last year, the amendment bill on the Investment and Securities Act of 2007 presently undergoing review had pushed for a recognition of crypto as investment capital. The current bill also will further define the role of the Central Bank towards crypto within the country.　　This no doubt could be considered a great feat towards recognizing crypto as a legal tender within the country after the country officially launched her own Central Bank Digital Currency called eNaira in October 2022.　　Contrary to the previous hostile attitude towards crypto by the CBN, the lawmakers are now seeking to integrate crypto into the economy and to take advantage of the many benefits that comes from the use of blockchain technology in fostering wider economic development.　　It is on this note

2023-01-03Deep Dive

Justin Sun denies that Huobi is planning layoffs

According to a Jan. 2 report in the South China Morning Post, Justin Sun, CEO of the cryptocurrency exchange Huobi, has stated that the company is not laying off large numbers of employees.　　The South China Morning Post cited earlier reports from Jiemian, a Chinese business news outlet that obtained an internal Sun statement. That report, which was presumably written in Chinese, could not be found.　　Suns statement, on the other hand, has been directly quoted in other sources. Sun stated:　　“The medias report on Huobis layoffs is incorrect... Huobis business has recently grown exceptionally well, and its daily new arrivals have propelled it to the top of the industry. It is a critical period of development, and I believe it will be even better in 2023.”　　Suns claim contradicted a statement from an unnamed Huobi insider who told Jiemian that layoff rumors were “somewhat reliable” and that layoffs were in the works.　　Colin Wu, who runs the cryptocurrency news site Wu Blockchain, spread rumors about Huobis mass layoffs. Wu first reported on December 30 that Huobi would suspend its year-end bonuses. He also stated that the company would reduce senior employee salaries and reduce its workforce from 1,200 to 600 or 800.　　Wu provided no

2023-01-03Deep Dive

7 Reasons to Believe in Crypto After 2022 Implosion

2021 was a huge year for cryptocurrencies, and the industry consensus at the conclusion of the year was that 2022 would be even bigger.　　The previous 12 months did not go as planned. Clearly.　　The collapse of the Terra ecosystem and the accompanying market-wide mayhem kicked off a challenging, if not disastrous, year for digital assets and their investors. Not to mention the failure of some of cryptos top lenders, as well as the bankruptcy of FTX and the arrest of Sam Bankman-Fried.　　Even Nevertheless, this year saw a number of important events that promoted the benefits of blockchain technology. Heres how it happened, and here are seven reasons to be optimistic about the next 12 months.　　The Merge, well, merged　　The long-awaited Merge of Ethereum, which changed the blockchains transaction validation mechanism from proof-of-work to proof-of-stake, was very probably the most significant year for the network since its inception over a decade ago.　　As a result, Ethereums native coin, ether (ETH), became almost 99% more energy-efficient. In the run-up, the price of ether exceeded that of bitcoin. This year has also seen a significant development of the blockchain ecosystem, as evidenced by increased layer-2 activity.　　The Shanghai Fork, scheduled for the first half of 2023, is

2023-01-02Deep Dive

5 Trends in DeFi for 2023

Many centralized firms have gone bankrupt in the last year, but the DeFi ecosystem has stayed strong.　　That is not to imply that the numerous insolvencies in the centralized industry have spared DeFi players – protracted bear market conditions and harm to customer trust in cryptoassets hurt — but there is a silver lining.　　What distinguishes DeFi is that it is “more resilient, transparent, and scalable than CeFi,” according to Ryan Rasmussen, a Bitwise crypto research analyst.　　“Events like this highlight the trade-offs that customers make when they pick centralized vs decentralized services,” he said. “Its a hard — and costly — lesson, but its necessary. DeFi will benefit from this in the long run.”　　As the year comes to a close, Blockworks examines some of the significant patterns that may emerge in 2023 as DeFi attempts to climb out of the bear market.　　Push toward real-world assets 　　By migrating on-chain, real-world assets (RWA) have already helped release significant amounts of liquidity and utility.　　Large DeFi lending players like MakerDAO have proposed investing in US Treasurys and corporate bonds, as well as partnering with regular banks to issue loans with RWAs as collateral.　　These movements are likely to become more widespread in 2023, as many industry participants

2023-01-02Deep Dive

U.S. review could delay or block Binance deal for Voyager Digital

According to a bankruptcy court filing on Friday, Binances $1 billion acquisition of bankrupt crypto lender Voyager Digital could be delayed or halted by a U.S. national security investigation.　　Binance, the cryptocurrency exchanges affiliate in the United States.　　The US aims to buy Voyagers crypto lending business for $20 million in cash and crypto assets, which will be used to reimburse Voyagers consumers.　　However, the U.S. Committee on Foreign Investment in the United States (CFIUS), an interagency body that vets foreign investments into U.S. companies for national security risks, stated on Friday that its review “could affect the parties ability to complete the transactions, the timing of completion, or relevant terms.”　　Voyager and Binances legal counsel. The US did not reply quickly to demands for comment on Friday.　　Washington has increasingly utilized CFIUS as a tactic to impede Chinese investment in the United States.　　Binance is controlled by Changpeng Zhao, a Chinese-born Singaporean with no permanent headquarters. US prosecutors are investigating the corporation for money laundering. Binance.US, headquartered in Palo Alto, California, claims to be “completely autonomous” of the main Binance platform.　　In its court brief, CFIUS did not specify any specific security concerns raised by the Voyager transaction, but it did state that bankruptcy courts have

2023-01-01Deep Dive

Top 4 Crypto CEO Departs for 2022 as we Wind Down the Year

Lets examine some of the most significant CEO departures from the year.　　Everyone suffered from crypto-winter in 2022, from stockholders to the CEOs of multibillion-dollar corporations. The price of crypto assets experienced a sharp decrease in 2022, and many CEOs and other important executives of crypto organizations resigned from their positions as a result.　　Some CEOs left their positions as respective businesses filed for bankruptcy, while others left because of the cryptocurrency markets unpredictability or a shift in the companys goals.　　A number of businesses, notably Three Arrows Capital, Voyager Digital, and FTX, filed for bankruptcy after Terras demise, which shocked the cryptocurrency community.　　Lets examine some of the most significant CEO departures from the year.　　MicroStrategy CEO, Michael Saylor　　In August, Michael Saylor announced his resignation as CEO of MicroStrategy. In 1989, he co-founded MicroStrategy, a provider of cloud-based services, mobile applications, and corporate intelligence. From 1989 to 2022, he was the chief executive officer of MicroStrategy.　　Saylor still serves as the companys executive chairman even though he is no longer the CEO. For a publicly traded corporation, MicroStrategy is renowned for possessing an unprecedented quantity of bitcoins (a “Bitcoin whale”). As of December 28th, MicroStrategy held about 132,500 BTC.　　Celsius, CEO, Alex Mashinsky　　Alex Mashinsky, the CEO

2022-12-30Deep Dive

The five worst crypto-related breaches and defects in 2022

The cryptocurrency market has experienced a significant decline in price, the collapse of major players, and the theft of billions of dollars through hacks and attacks.　　Chainalysis predicted 2022 to be the “largest year ever for hacker activities” before October was even halfway over.　　As of December 29, $2.1 billion had been taken from crypto systems by the ten biggest attacks of 2022. These hacks and vulnerabilities are listed here, ranked from smallest to largest.Ronin bridge hack 　　On March 23, 2022, the Ronin bridge was abused for about $612 million, consisting of 173,600 ETH and 25.5 million USD Coin.　　For the play-to-earn non fungible token (NFT) game Axie Infinity, Ronin was developed as an Ethereum sidechain. The developers of Axie Infinity, Sky Mavis, claimed that the attackers were able to obtain private keys, compromise validator nodes, and accept deals that emptied the bridge of its cash.　　On April 14, the U.S. Treasury Department revised its list of Specially Designated Nationals and Blocked Persons (SDN) to account for the potential involvement of Lazarus Group in the bridges exploit.　　The biggest cryptocurrency theft in history occurred with the Ronin bridge hack.FTX wallet hack　　Elliptic claims that about $477 million worth of cryptocurrency was taken during a series of

2022-12-30Deep Dive

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