Crypto Guides, Knowledge & Insights

Elon Musk Facing $258 Billion Lawsuit for Promoting Dogecoin

It is already well established that any positive activity around Elon Musk and Tesla often boosts Dogecoins price almost instantly. In a latest development, a U.S. citizen is charging Musk with alleged involvement in Dogecoin related fraud in a Musk Dogecoin lawsuit.　　According to a Bloomberg report, Musk, along with SpaceX and Tesla were sued for $258 billion over Doge-related claims. The case filing suggests allegations that they are part of a racketeering scheme to back Dogecoin.　　‘Dogecoin Is Deceptive’　　The report mentions Keith Johnson as an American citizen who is behind the lawsuit. Johnson was allegedly “defrauded out of money by defendants‘ Dogecoin Crypto Pyramid Scheme.” He claimed that they constitute an illegal racketeering enterprise to inflate Dogecoin’s price.　　In his complaint filed on Thursday in federal court in Manhattan, he said,　　“Defendants falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.” For more forex news, please download WikiFX - the Global Dealer Regulatory Inquiry APP.　　Demand To Block Musk From Promoting Dogecoin　　In the complaint, Johnson sought to represent all those who lost money trading in Dogecoin since April 2019. Demanding $86 billion in damages and triple damages of $172 billion, he also demands action against Musk.　　He

2022-06-17Deep Dive

Hackers Are Cloning Web3 Wallets Like Metamask and Coinbase Wallet to Steal Crypto

Confiant, an advertising security agency, has found a cluster of malicious activity involving distributed wallet apps, allowing hackers to steal private seeds and acquire the funds of users via backdoored imposter wallets. The apps are distributed via cloning of legitimate sites, giving the appearance that the user is downloading an original app.　　Malicious Cluster Targets Web3-Enabled Wallets Like Metamask　　Hackers are becoming more and more creative when engineering attacks to take advantage of cryptocurrency users. Confiant, a company that is dedicated to examining the quality of ads and the security threats these might pose to internet users, has warned about a new kind of attack affecting users of popular Web3 wallets like Metamask and Coinbase Wallet.　　The cluster, that was identified as “Seaflower,” was qualified by Confiant as one of the most sophisticated attacks of its kind. The report states that common users cannot detect these apps, as they are virtually identical to the original apps, but have a different codebase that allows hackers to steal the seed phrases of the wallets, giving them access to the funds.　　Distribution and Recommendations　　The report found out that these apps are distributed mostly outside regular app stores, through links found by users in search engines such as

2022-06-16Deep Dive

Almost Every Crypto Asset Is Down Over 90% From Peak

Key Takeaways　　Data from crypto price aggregator CoinGoLive shows that 98.5% of all cryptocurrencies are down more than 90% from their all-time highs.　　Around 95.5% of cryptocurrencies have fallen by more than 99.99% from their peaks, with the vast majority effectively plummeting to zero.　　The total crypto market cap is trading 70% from its peak, with Bitcoins market dominance at around 42.9%.　　The seven-month-long cryptocurrency bear market has exposed a painful reality: the vast majority of cryptocurrencies eventually lose practically all of their value.　　Crypto Crash Exposes Painful Reality　　With few exceptions, virtually all crypto assets have now lost more than 90% of their value against their all-time highs.　　According to data from the crypto price aggregator CoinGoLive, 13,240 or 98.5% of the 13,436 cryptocurrencies in existence are currently down 90% from their all-time highs. Of the 196 coins that have retraced less than 90% from their highs, 19 are stablecoins, meaning the exact percentage is slightly higher.　　Judging by the size of the pullback from their record prices, the best-performing significantly capitalized coins are BNB, Bitcoin, FTX, TRON, and Ethereum, with respective drawdowns of 68.9%, 69.1%, 72.4%, 75.1%, and 77.14%. Interestingly, Bitcoin‘s market dominance, which has historically fallen during bull markets and risen significantly during bear markets,

2022-06-16Deep Dive

Russia Developing Sandbox for Cross-border Crypto Payments

An institute facilitating Russian exports is now working on the establishment of a sandbox for international crypto payments, local media reported. The goal is to identify potential regulatory and technological challenges for settlements with digital assets.　　Russia Prepares to Test Crypto Payments for Exports in Dedicated Sandbox　　The Russian Export Center (REC), which is a state-run institute tasked to support Russias exports, is now considering the employment of digital currencies as an alternative approach to international settlements under sanctions.　　The organization believes that setting up a “cross-border digital sandbox” is a promising initiative. The project will aim to create opportunities for fintech companies to process payments using digital financial instruments on behalf of Russian exporters and importers.　　Settlements in cryptocurrencies represent an alternative payment system, which will develop incredibly quickly now, according to Veronika Nikishina who heads the REC. Speaking at the St. Petersburg International Economic Forum, she elaborated:　　As a development institution that captures all current trends, we are now closely studying the possibility of becoming a digital sandbox to pilot the use of cryptocurrencies in cross-border payments.　　Quoted by Tass, Nikishina added that the institute has already gathered representatives of fintech firms and regulatory bodies and is closely collaborating with the Central Bank of

2022-06-16Deep Dive

Bill Gates Lambasts NFTs

Microsoft co-founder Bill Gates recently opined that non-fungible tokens are a “greater fool theory” type of investment.　　Gates sarcastically remarked that people who spend a fortune on pictures of apes would be able to make the world a much better place.　　The NFT bubble has predictably burst in the aftermath of the recent market correction, with the floor price for a Bored Ape Yacht Club recently plunging to the lowest level since last August. The cost of entry has plunged by almost 80% within just two months, with investors who bought the red-hot NFT pictures at much higher being left in the dust.　　Other popular NFT collection, including e CryptoPunks, have also plummeted in value.　　While NFTs have attracted plenty of endorsements from celebrities, some prominent personalities chose to dismiss them at their peak popularity. For instance, Canadian actor Keanu Reeves found the idea of paying tons of money for artworks that can be easily reproduced laughable.　　Gates‘s skepticism comes as no surprise given that he has been a long-time cryptocurrency critic. Back in May 2018, the billionaire claimed that he would be willing to short Bitcoin if he could. It seems like Gates hasn’t warmed up to cryptocurrencies given that he bemoaned their lack

2022-06-16Deep Dive

Brazil’s New Proposal Seeks to Recognize Bitcoin, Crypto as Legal Financial Assets

While it‘s still early to speculate if Brazil is following in El Salvador’s footsteps, the latest proposal demonstrates the country racing towards meaningfully regulating the crypto industry as adoption reaches a pivotal stage.　　The latest bill, presented by Federal Deputy Paulo Martins on June 10, seeks to add Bitcoin (BTC) and other cryptocurrencies as a payment method.　　The detailed legislative proposal is an addition to the countrys existing law – Article 835 of the Civil Procedure Code.　　While the proposed addition will not necessarily make crypto legal tender in the country, it will help the asset class to be used as a financial asset for various purposes, including means of exchange or payment, or instrument of access to goods and services or investment.　　The bill is headed to the South American countrys legislators, who will now hold discussions before the additions are passed by the Senate and are signed into law by the president.　　The focus will also be on protecting users private keys as well as providing new powers and limitations that Brazilian courts would possess if crypto is recognized as a financial asset. This includes actions such as freezing exchange accounts.　　Brazil is one of the hottest crypto markets in Latin America, and the

2022-06-16Deep Dive

Bitcoin Remains Steady as Fed Announces Biggest Rate Hike Since 1994

The U.S. Federal Reserve has hiked the benchmark interest rate by 75 basis points, which marks the biggest increase since 1994.　　Bitcoin, the worlds largest cryptocurrency, is changing hands at $20,889 on the Bitstamp exchange. The largest cryptocurrency briefly spiked by more than 4% on the news, but it then instantly erased those gains.　　The U.S. dollar index has spiked to 105.79 following the announcement.　　The Fed was widely expected to hike rates more aggressively after the consumer price index (CPI) recorded a year-over-year increase of 8.6%, which was a significant upside surprise for the market.　　The central banks increasingly hawkish policy is generally believed to be the main headwind for risk assets like Bitcoin.　　In its statement, the Federal Open Market Committee (FOMC) stated that it remains committed to cooling inflation, signaling a faster pace of rate increases. The rate is now expected to rise to 3.8% next year. Futures on the federal funds rate are pricing in another 75 basis point hike in July.　　Central bankers see inflation dropping to 5.2% at the end of 2022 and eventually approaching the 2% target in 2023.　　During a press conference, Fed Chairman Jerome Powell said that the central bank had the necessary tools to restore price stability.

2022-06-16Deep Dive

BlockFi fined $943,000 for not registering securities in Iowa

Cryptocurrency trading and lending platform BlockFi has been fined $943,000 by the Iowa Insurance Division for failing to register securities in the state and offering and selling securities in Iowa without being registered as a broker-dealer or agent, according to a June 14 press release.　　The order was released after the conclusion of a multi-state investigation conducted by the U.S. Securities and Exchange Commission (SEC) and securities regulators from 53 jurisdictions, that were part of the North American Securities Administrators Association (NASAA).　　According to the press release, BlockFi will also pay settlements of $50 million to the SEC and another $50 million to the 53 investigating jurisdictions. The company has also been ordered to cease and desist from making false claims regarding securities.　　Iowa Insurance Commissioner Doug Ommen said in the press release:　　“While innovations, like cryptocurrencies, may provide for growth and evolution in the financial system, it is important that regulators ensure this occurs within an appropriate framework that protects investors while still facilitating responsible capital formation.”　　The investigation found that BlockFi offered and sold unregistered securities and misrepresented the risk level in its loan portfolio. In various website posts, BlockFi claimed that its institutional loans were “typically” over-collateralized, which was found to be

2022-06-15Deep Dive

Bank of America: 90% of US Adults Surveyed Plan to Buy Crypto in 6 Months

A new Bank of America survey shows that out of more than 1,000 U.S. adults, 90% plan to buy crypto in the next six months. Moreover, nearly 40% of respondents revealed that they use cryptocurrency as a means of payment.　　Bank of Americas Crypto Survey　　Bank of America (BOA) analyst Jason Kupferberg shared his crypto outlook in an interview with CNBC Monday. He was asked about a recent Bank of America survey that showed sustained interest in cryptocurrencies.　　The analyst explained that the survey was conducted early this month, which was after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). He added that over 1,000 U.S. adults participated, noting that the sample size was “pretty significant.”　　Kupferberg opined:　　“It was interesting to see that 90% of respondents said they do plan to buy some amount of crypto in the next six months.”　　He continued: “That was actually the same percentage who reported having actually bought some crypto over the prior six months.”　　In addition, 30% of all respondents said they do not plan to sell their crypto in the next six months.　　Using Crypto as a Payment Method　　The Bank of America survey also examines whether consumers expect to pay for goods and services with bitcoin or

2022-06-15Deep Dive

Following LUNA-UST Crash: South Korea’s Top Crypto Exchanges to Establish a Joint Consultative Body

The five leading cryptocurrency exchanges in South Korea – Upbit, Bithumb, Coinone, Korbit, and Gopax – will reportedly set up a joint consultative body that will oversee the local digital asset market, scheduled to go live during the second half of 2022.　　Trying to Prevent Another Accident Like Terra　　A local media revealed that Koreas major platforms will join forces to grant additional protection for crypto investors. They vowed to sign a business agreement and then launch a joint consultative body to improve the regulatory standards in the space. They will also create a communication channel where victims and affected companies could address arising issues.　　The consultative body will be divided into three areas: transaction support, market monitoring, and compliance monitoring. The first action is scheduled for September this year, when the exchanges will prepare a virtual currency warning system and delisting standards. Additionally, the companies will provide valuable information, including evaluation reports and white papers.　　If there are any indications that certain cryptocurrency projects are related to money laundering activities or they pose a threat to the financial system, investors will receive a warning.　　In October, the platforms plan to introduce guidelines for listing screening. They will also periodically check the possible risks in

2022-06-15Deep Dive

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