Crypto Guides, Knowledge & Insights

Walmart prepares to enter the Metaverse, files documents to launch crypto and NFTs

US retail giant Walmart may strategically be planning to launch its cryptocurrency and NFTs. According to CNBC, the company has filed several documents with the local regulatory body to create its cryptocurrency and non-fungible tokens (NFTs)Walmart and metaverse？　　As per a CNBC report, Walmart has recently filed several applications that indicate that the US retail company might be interested in selling virtual goods, which may include electronics, home decorations, toys, and personal care products. 　　The company also filed another document with the US Patent and Trademark Office that suggests Walmart may also be seeking to launch its own virtual currency and NFTs. 　　Another trademark filing also indicates the firms interest in offering physical fitness training services and classes related to health and nutrition in a “virtual” ecosystem. 　　As per sources, approximately seven applications have been filed by Walmart on December 30th, indicating its plan to explore the growing virtual world. 　　According to Walmart, the firm is “continuously exploring how emerging technologies may shape future shopping experiences.”　　Josh Gerben, a trademark attorney, referred to the Walmart filings as “super intense.” He further stated how Facebooks decision to rebrand itself as Meta was one of the major catalysts that encouraged other brands and firms

2022-01-17Deep Dive

El Salvador’s Bitcoin Use Adds To Its Risk Portfolio, Says Top Credit Rating Firm

El Salvadors bitcoin adoption could make it difficult for the country to access international loans.　　Its actions could hurt its chances of obtaining international loans.　　The countrys policy has been aggressive and attracted a lot of detractors.　　Market analysis giant Moody‘s says El Salvador’s credit score may suffer due to its Bitcoin adoption.　　El Salvador Faces Credit Rating Decline On Current Trajectory　　In his conversation with Bloomberg, Jaime Reusche, an analyst at Moody‘s, expressed this sentiment, saying the country’s indulgence of Bitcoin “certainly adds to the risk portfolio,” citing the Latin American countrys struggle with liquidity in the past.　　President Nayib Bukele‘s administration has seen the country adopt Bitcoin as a legal tender alongside the United States dollar, launching the state-run Chivo wallet which integrates Lightning Network technology to support payments using the digital asset in the country. Within the period, President Bukele has created a Bitcoin reserve for the country, famously adding to the country’s holdings by buying every dip. At the moment, the country has over 1,391 BTC in reserve.　　Reusche, however, warned that purchasing more Bitcoin would substantially increase the companys risk of defaulting on its debts. The analyst said, “If it gets much higher, then that represents an even greater risk to repayment

2022-01-17Deep Dive

Unifying Cryptocurrency ESG Efforts Key To Boost Global Adoption

Environmental and social impact is top of mind for investors as climate change and social cohesion top the list of Global Risks 2022. Cryptocurrencies provide both new opportunities and challenges related to ESG across a diverse and often-fragmented ecosystem.　　To support the global efforts to accelerate the development and responsible use of cryptocurrency, the World Economic Forum, in collaboration with CoinDesk, announced Friday the Crypto Impact & Sustainability Accelerator (CISA).　　CISA is designed to harmonize, enhance, and advance crypto-enabled ESG efforts across the globe. It aims to bring together a vibrant ecosystem around a uniform set of ESG goals through projects across three pillars that advance learning and enable leadership focused on diverse geographies. These include a digital ethnography of crypto-enabled financial inclusion efforts, the development of a toolkit on decentralized autonomous organizations, and the management of a workshop series focused on the intersection of crypto and net-zero efforts.　　“The crypto ecosystem is expected to see massive worldwide adoption over the next few years,” said Sheila Warren, Head of Blockchain at the World Economic Forum. “There is an opportunity to shape an inclusive and sustainable future to ensure we maximize the benefits and minimize the risks ahead. This project aims to bring together

2022-01-17Deep Dive

North Korean Hackers Stole Nearly $400 Million in 2021: Chainalysis Reports

A recent report by blockchain forensics company Chainalysis stated that cybercriminals in North Korea stole bitcoin and Ether, worth almost $400 million but still have millions worth of stolen cryptocurrency funds unlaundered.　　Almost $400 Million Theft Recorded in 2021　　The Chainalysis report published January 13, 2022, stated that the funds were stolen following attacks on a minimum of seven crypto exchanges. Also, the company believes most of the attacks were possibly conducted by the infamous cybercriminal organization known as the Lazarus Group.　　According to the blockchain forensics firm, the number of North Korean-affiliated hacks rose from four in 2020 to seven in 2021. Also, the value of the hack increased 40%, with Chainalysis calling 2021 a “banner year” for these perpetrators, considering the price performance of Bitcoin and Ethereum.　　The hackers employed methods such as code exploits, phishing, malware, advanced social engineering, and code exploits to steal funds from exchanges with porous security systems.　　Interestingly, bitcoin accounted for less than a quarter of the stolen funds, with 20% of BTC stolen in 2021 when measuring the dollar value. Meanwhile, Ether made up more than half of the total loot with 58%, while other altcoins and ERC-20 tokens made up 22%.　　North Korean Hackers Prefer Mixers to

2022-01-17Deep Dive

NFT Market Participants Could Face Stiff Tax Penalties In the U.S.

As the NFT market boomed in 2021, so do the questions around taxation come the next tax season.　　The Internal Revenue Service wants its share of the NFT booty. There is a lack of clarity on how NFT holders should be taxed, but tax experts say taxes could be up to 37%. You dont get to not report gains or losses because the IRS has failed to provide guidance that meets your expectations, says James Creech, a tax attorney in San Francisco.　　NFTs, or non-fungible tokens, are certificates on a blockchain representing ownership of a digital asset. They cannot be replicated. They increase in price based on their rarity or real-world utility. Chainalysis reports that the NFT industry saw $44B in transactions in 2021. Some were huge gainers, with an American artist selling an NFT for over $69M besides royalties. This raises some questions on how they should be taxed. Currently, the guidance on the taxation of NFTs is not entirely clear, but that does not mean that they should not be reported on your tax return.　　In fact, those who did not report quarterly earnings from NFTs may get a nasty surprise when penalties beset them come the next tax season. Owners

2022-01-17Deep Dive

Pakistan Seeks to Block Websites Dealing in Cryptocurrency: Report

Pakistans Federal Investigation Agency (FIA) is reportedly seeking to block websites dealing in cryptocurrency. The decision followed a meeting the agency had with the State Bank of Pakistan (SBP) which recently recommended a complete ban on crypto.　　 Pakistans FIA Reportedly Seeks to Block Cryptocurrency Websites　　Pakistans Federal Investigation Agency (FIA) is seeking to block websites dealing in cryptocurrency, Dawn newspaper reported Sunday. The FIA is “a border control, criminal investigation, counter-intelligence, and security agency under the control of the Interior Secretary of Pakistan,” according to the Pakistani government website.　　FIA Director-General Dr. Sanaullah Abbasi told the press Saturday that his agency will approach the Pakistan Telecommunication Authority (PTA) to block crypto websites to prevent fraud and money laundering.　　His statement followed a meeting he had with senior officials of the State Bank of Pakistan (SBP), the countrys central bank. The FIA chief said:　　“The SBP officials gave a presentation in the meeting about a regulating mechanism.”　　During the meeting, the SBP officials noted that the central bank recently submitted recommendations under the direction of the Sindh High Court on the legal framework for cryptocurrencies in Pakistan. The State Bank has recommended a complete ban on cryptocurrency.　　Emphasizing that his department is mainly concerned about fraud and

2022-01-17Deep Dive

Walmart Filings Reveal Plans to Create Cryptocurrency, NFTs

Walmart Inc. is preparing to create its own cryptocurrency and collection of non-fungible tokens, filings with the U.S. Patent and Trademark Office show, setting the stage for meeting its customers in the emerging metaverse.　　The retailer sought several new trademarks in December that show it intends to make and sell virtual goods such as electronics, decor, toys, sporting goods and personal-care products.　　The applications, which were first reported by CNBC, represent a significant step for the retail giant as it studies how to participate in the metaverse, a virtual world that blends aspects of digital technologies. Walmart in August advertised a position to develop “the digital currency strategy and product roadmap” while identifying “crypto-related investment and partnerships,” according to a job posting on the companys website.　　The applications were among a flurry the company filed on Dec. 30, including three under “Walmart Connect” -- the name of the company‘s existing digital advertising venture -- for a financial exchange for virtual currency and advertising. Applications also were filed for “Verse to Store,” “Verse to Curb” and “Verse to Home” for shopping services. It’s also seeking trademarks to apply the Walmart name and “fireworks” logo to heath-care services and education in virtual and augmented reality.　　“Walmart

2022-01-17Deep Dive

Developers and users need to focus on the strengths of different blockchains to maximize benefits

Big names such as Bitcoin, Ethereum, Polygon, Polkadot, Avalanche, Algorand and Solana tend to crop up in any discussion about blockchain, but amid the technologys rapid growth and the ever more competitive nature of the market, developers are increasingly locked in a race to make sure their blockchains come out on top. 　　In this highly competitive and changing environment, it is important for developers to consider the processes that are key to understanding how different blockchains can meet specific needs. These factors include consensus mechanisms, decentralisation, sustainability, security, speed, cost and governance. All of these attributes should be examined in order for companies to push for growth and efficiency, and will, ultimately, decide the key competitors in the market.Understanding consensus mechanisms　　Consensus mechanisms are used in blockchain systems to ensure that all nodes are synchronised with one another. Consensus mechanisms are used for validating and authenticating transactions.　　There are multiple types of consensus mechanism, each which align with different needs. Two of the most commonly used are Proof-of-Work and Proof-of-Stake. 　　Proof-of-Work (PoW): Bitcoin and Ethereum use PoW. For a Proof-of-Work consensus mechanism, large quantities of computational power are necessary to authenticate and verify nodes. Since it uses a lot of energy, it

2022-01-17Deep Dive

The cryptocurrency deception

In recent times, there has been a great euphoria about investing in cryptocurrencies. Let us first try to understand whether a crypto investment means an investment in a currency or an asset. For any instrument to classify as a currency, it must have the following features: One, it is a promissory note wherein the issuer is promising the bearer or the holder a value. Two, it is backed by a sovereign nation and, therefore, there is never a question of any default in executing the promise. Three, the printing of currency in either physical or digital form is always based on some tangible asset, like gold or a basket of goods.　　From the above, its clear that cryptocurrency can never be a currency.　　Can crypto then be considered an asset？ An asset is something that has a tangible value. Even if its immediate utility is intangible, an asset should have some tangible benefits. The cryptocurrencies being promoted currently — bitcoin, litecoin, ethereum — are nothing but gaming points. Whenever a discussion on cryptos takes place, promoters talk of blockchain technology. This technology is just a technique to account for transactions and has nothing to do with cryptocurrencies, except that the cryptocurrencies digital

2022-01-17Deep Dive

The key drivers behind Fantom’s recent price rally

At the time of writing, crypto is entering a bear market as Bitcoin, Ether and most Layer-1 altcoins have dipped 20-30% from its all-time-highs. Defying these trends is the ghost-themed Fantom blockchain. In the past month, its native token FTM has seen a surging price rally of 121% to $3.02.　　Statistics of Fantoms performance is nothing short of impressive. Total-value-locked on Fantom went from $1 billion+ in September to $7 billion today.　　The Fantom Foundation published at the end of 2021 a list of important milestones that were hit, such as daily transaction counts of 700,000, while its unique addresses continue to increase into the 1.4 million range.The Fantom Foundations liquidity incentive program　　On the 30th of August 2021, the Fantom Foundation launched a massive liquidity mining program of 370 million FTM. Unlike traditional liquidity mining incentives that were directed to users, this FTM liquidity was targeted to Fantom developers as reward claims for achieving target levels of TVL on their protocols.　　Fantom‘s strategy of incentivizing developers directly over liquidity providers is part of its plan to establish an attractive foundation for a flourishing dApp ecosystem. What this does is to drive Fantom’s developers to create sustainable yield-generating products in the long-run, as opposed

2022-01-16Deep Dive

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