Crypto Guides, Knowledge & Insights

NFTs NFT buyers drop to lows last seen five months ago

It has been a few rollercoaster months for the Non-fungible sector, but it appears the hype has reduced a little. 　　Data from CryptoSlam revealed that the number of unique NFT buyers for February was 796,009, down by 12% from its January record. This marks the first time that buyers will be below 800,000 since October 2021.Numbers of NFT buyers drop　　It wasnt only the number of buyers that dropped. The trading volume also dropped significantly to $2.6 billion. This is a 40% fall from the record January volume. 　　With the drop in NFT trading volumes, blockchain networks supporting NFTs have also seen a drop in sales volume. CryptoSlam reports that only two of the 12 networks have seen gains in the last 24 hours.　　Flow and Arbitrum had 20% and 538% gains, respectively. The rest, which includes Ethereum, Solana, Avalanche, Cronos, BSC, and the rest reported losses.　　However, this drop in trading volume isnt necessarily a cause for alarm. Given the impressive performance of NFT in January, experts believe that a pullback is only appropriate.NFT searches on Google drops too　　But theres still a good cause for concern given that interest in NFTs has also waned. A look at Google trends shows that the

2022-03-04Deep Dive

Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation

MiCA Proposal Drops Ban on Proof-of-Work Coins　　Wording that could have banned cryptocurrencies with proof-of-work (PoW) mining, like bitcoin, is missing in the latest version of EUs Markets in Crypto Assets (MiCA) framework. The European Parliament (EP) was expected to approve the proposal on the last day of February but the vote was postponed to address concerns raised by representatives of the crypto industry.　　“The Bitcoin ban in the EU is off the table for now,” BTC Echo noted, quoting the document. The German crypto news outlet revealed that the controversial paragraph has been dropped. The text proposed by the factions of the Left, Greens, and Social Democrats would have prohibited companies from offering services for the acquisition, custody and trading of PoW-based crypto assets.　　The scheduled vote was canceled on the request of Stefan Berger, the rapporteur for the legislative package, who has now confirmed BTC Echos report in a tweet posted late on Tuesday. He also told the publication that negotiations have resumed.Proof-of-Work Ban Removed From Europes Proposed Crypto Regulation　　A text threatening to prohibit cryptocurrencies relying on energy-intensive proof-of-work mining has been deleted from the draft legislation aimed at regulating the European crypto space. The move comes after the controversial provision

2022-03-04Deep Dive

77% of Saudis Aware of Cryptocurrencies, Only 18% Currently Buying and Selling

Easy Accessibility of Virtual Coins　　According to the findings of a Yougov survey, about 77% of Saudi Arabian residents are aware of cryptocurrencies, which suggests that the asset class “has generated a fair amount of awareness.” The study data, on the other hand, shows that only 18% of those surveyed confirmed they are buying and selling cryptocurrencies.　　As shown in the study data, while younger Saudis are currently dominating crypto trading in the kingdom, the findings show that older Saudis also “plan to deal in it.”　　Concerning the factors that motivate Saudi residents to invest or trade cryptocurrencies, the study found that almost half of the respondents cite their accessibility. The report states:　　Currently, the key motivation for most Kingdom of Saudi Arabia [KSA] residents who either invest or plan to invest in digital currencies is the easy accessibility of virtual coins for trading (49%).　　According to the study, 43% of the respondents that already buy and sell crypto assets point to the “high returns” on investments as the other key motivator. The study notes that “this aspect has a higher appeal among 45+ adults as compared to the rest.”Barriers Stopping Saudis From Investing in Crypto　　About 38% of Saudi residents that buy and sell cryptocurrencies

2022-03-04Deep Dive

Increased Scam Reports Linked to Crypto, FCA Finds

Reports of potential crypto scams shot up in the middle of 2021, according to the UKs Financial Conduct Authority (FCA), as the regulator seeks to further crack down on actors causing investor harm.　　The FCA had roughly 16,400 reports of possible scams between April and September of 2021, according to agency findings published Thursday — up from 12,400 over the same period the year prior.　　Boiler rooms were the most commonly reported scam, where fraudsters cold-call investors offering them worthless, overpriced or even non-existent shares or bonds.　　The three other most common reports were of cryptocurrency scams, FCA impersonation scams and recovery rooms — where fraudsters offer to help investors who were scammed or lost money on an investment get their money back for an upfront fee.　　Overall, the FCA stopped 32 new firms, or 25%, from entering the consumer investments market between April and September.　　Of the more than 16,000 scam inquiries, about 3,000 were related to cryptocurrencies — up 14% from the previous six months.　　The FCA also offers a ScamSmart Warning List tool, which allows people to check the safety or risks of an investment opportunity. Cryptocurrency represents 34% of the checks, the most of any investment opportunity. The checks on crypto grew

2022-03-04Deep Dive

Bill Miller Says Collapse of The Russian Ruble Is Very Bullish for Bitcoin

Legacy investor, fund manager, and philanthropist Bill Miller believes that the financial sanctions imposed on Russia could cause bitcoins price to soar. He pointed out that gold is the only reserve asset the largest country by landmass controls on its own, meaning that BTC might gain traction in the days to come.　　BTCs Surge Following The Crash of The Ruble　　The military conflict in Ukraine changed the tides in the financial world drastically. NATO and the EU declared economic war on Putins regime. The USA, the UK, Germany, and many others cut their monetary connection with Russia and excluded the many Russian banks from the major payment system SWIFT.　　As a result of those sanctions, the ruble plummeted by over 25%, while Russian citizens started looking for alternative financial instruments to preserve their savings. Bitcoin trading volumes in the region spiked to record levels.　　In a recent interview for CNBC, the former Chairman of Legg Mason Capital Management – Bill Miller – outlined that Russia keeps 16% of its reserves in dollars and 32% in euros. Those assets are managed by “people who want to do them harm.” He further stated that the only part of their reserves, which other nations can not control,

2022-03-04Deep Dive

Malaysian Police Shut Down 3 Crypto Mining Operators Over Alleged Electricity Theft

IN BRIEF　　Three crypto mining operations have been stopped by Mallaysian law enforcement for alleged electricity theft.　　Since 2018, losses from electricity theft had reached over $549 million.　　Twelve suspects were arrested, ranging in ages from 18 to 43, where seven of them have prior criminal records.　　With electricity theft becoming more common in Malaysia for cryptocurrency mining, the Malaysian police shut down three cryptocurrency mining operations in Klang on Thursday.　　In a joint operation with the Tenaga Nasional Berhad and Klang Municipal Council, at least 12 suspects were arrested for allegations involving electricity theft. Malaysian Anti-Corruption Commission (MACC) Commissioner Tan Sri Azam Baki said they had recorded a total of 7,209 cases of electricity theft since 2018, resulting in over $549 million in losses.　　“We carried out raids on three premises in Bandar Puteri and Bayu Perdana, arrested 12 men, and seized RM65,000 worth of cryptocurrency mining machines,” said South Klang OCPD Asst Commissioner Cha Hoong Fong.　　According to law enforcement, of the twelve suspects arrested, the background checks for seven of them returned with prior criminal records.　　“The suspects were aged between 18 and 43. Background checks showed seven of them have prior criminal records.”　　Cha added the suspects were employed as technicians and caretakers to maintain

2022-03-04Deep Dive

SEC to look at possible securities violations in NFT market

The US Securities and Exchange Commission (SEC) is investigating NFT marketplaces and creators for possible breaches of its securities rules.　　According to Bloomberg, this investigation would mark the first regulatory scrutiny of NFTs since the sectors explosive growth started.　　NFTs reportedly under SEC radar　　The report claimed that the SEC enforcement unit has sent subpoenas asking for more information on certain NFT offerings. This is part of its quest to find out whether “certain nonfungible tokens… are being utilized to raise money like traditional securities.”　　“Over the past several months, attorneys in the SECs enforcement unit have sent subpoenas demanding information about the token offerings.”　　The inquiry appears to focus mostly on the use of fractional NFTs. With the spaces growth, fractional NFTs have become very common as it allows retail investors to purchase a stake in high-value tokens. The SEC appears to consider such a practice to be selling unregistered securities.　　As far back as 2021, SEC commissioner Hester Peirce warned NFT issuers to be careful when selling fractional NFTs as this could amount to creating an investment product.　　SECs litany of crypto regulatory skirmishes　　With the SEC spotlight now on NFTs, it joins the list of crypto products that the watchdog has under its regulatory scrutiny.

2022-03-04Deep Dive

USA’s DFS to Use Blockchain to Strengthen Sanctions Enforcement Against Russia

The Department of Financial Services (DFS) will use blockchain analytics technology to build strengthen the enforcement of the sanctions against Russia. Specifically, the effort will be to detect if Russian individuals try to bypass the imposed penalties.　　Blockchain Technology to Help Monitor Sanction Enforcement　　The Department of Financial Services oversees numerous key programs and initiatives concerning the monetary sector. As a result of the growing conflict in Ukraine, it will expand its efforts towards Russian citizens, too.　　According to a recent statement, the DFS will use blockchain technology to monitor if the financial sanctions applied to Russia are appropriately executed. It will also observe whether some individuals seek a backdoor to avoid embargoes.　　Adrienne Harris – Superintendent at the agency – predicted that bad actors will try to evade sanctions through the transmission of digital currencies. As such, “it is imperative that we have the ability to monitor transactions and exposure in real-time,” she outlined.　　Harris also asserted that the DFS will coordinate its operations with federal and other state regulators. Their joint efforts must “ensure the full weight of our regulatory regime is brought to bear in the fight to protect Ukraine,” the exec concluded.　　Speaking on the matter was also Kathy Hochul – Governor

2022-03-04Deep Dive

Ukraine has the highest crypto adoption in Europe and fourth globally

People worldwide are utilizing crypto to send aid to Ukraine in light of the current conflict. The current total stands at a staggering $33 million with donations from Polkadot Founder Gavin Wood, Binance, Uniswap and even a CryptoPunk NFT worth over $200,000. Further information suggests that the Ukrainian government has already converted most donations into fiat through the Ukrainian-founded exchange, Kuna. However, data from Chainalysis suggests that this isn’t wholly unexpected. As of July 2021, Ukraine had the 4th most significant adoption of crypto per capita. So the Ukrainian people are well-positioned to utilize cryptocurrency during times of financial uncertainty in fiat currencies.　　This graphic from Statista makes it easier to visualize the meaning behind the data. Ukraine stands out within Europe as a center for cryptocurrency adoption.　　Whilst this information was collated in July 2021, interestingly, the week commencing Feb 21, 2022, saw the highest purchasing volume on Binance for the BTC/UAH (Ukrainian hryvnia) pair in six months. Moreover, the volume compared to the week prior was more than double.　　This is not the first time that Ukrainians have fled to cryptocurrency in recent times. In September 2021, whilst Ukraine was celebrating 30 years of independence from the Soviet Union, volume for

2022-03-03Deep Dive

Starlink Terminals Arrive in Ukraine as Elon Musk Makes Good on Promise

Ukrainians Get Starlink Internet Amid Ongoing Russian Offensive　　Ukraine has received a batch of terminals needed to connect to the satellite internet constellation Starlink. The network is operated by Spacex, the aerospace manufacturer founded and managed by U.S. tech entrepreneur Elon Musk, and offers high-speed broadband internet across the globe.　　The arrival was announced by Mykhailo Fedorov, Ukraines deputy prime minister and minister of digital transformation. “Starlink — here. Thanks, @elonmusk,” the Kyiv official tweeted on Monday, posting a photo of a truck full of antennas and routers used to connect to the satellites.　　On Saturday, Fedorov took to Twitter to ask the billionaire to provide Ukraine with Starlink stations. The call was issued after media reports revealed that the internet monitor Netblocks had registered “significant disruptions to internet service” in the country since the launch of the Russian military assault on Feb. 24.　　“Starlink service is now active in Ukraine. More terminals en route,” Musk replied within hours. “Starlink terminals are coming to Ukraine!” the Ukrainian minister confirmed later, thanking Elon Musk and others supporting his country.　　Ukrainian reports on social media have indicated that Starlink equipment is already working in the capital Kyiv. According to a tweet by software and communications engineer Oleg

2022-03-03Deep Dive

...

307309

...

742