Crypto Guides, Knowledge & Insights

How Does a Crypto Company Bankruptcy Affect Investors?

Bankruptcies Leave Crypto Investors Unable to Withdraw　　　　The failures of Voyager and Celsius (https://www.wikibit.com/en/dr/1234440617402.html) highlight the unique risks that cryptocurrency holders and investors face when entrusting their funds to crypto firms. These two incidents could result in well over a billion dollars in investor losses.　　On July 1, 2022, Voyager filed for Chapter 11 bankruptcy protection. Customers should have all US dollar deposits returned, according to the company, but it is unclear how much of their crypto holdings will be returned. It claimed that as of the bankruptcy filing, it had $1.3 billion in customer crypto assets on its platform.　　Celsius Network, a large cryptocurrency lending platform, declared bankruptcy on July 13, less than a month after suspending all withdrawals, swaps, and transfers between customer accounts. Celsius disclosed in a filing with the United States Bankruptcy Court in New York that it owes roughly $1.2 billion more than it has on hand.　　With customers of Voyager and Celsius unable to withdraw their cryptocurrency assets, its critical for cryptocurrency users worldwide to consider any risks associated with the exchange or lending platform theyre using, if applicable.　　Cryptocurrency is Not FDIC Insured　　Despite misleading marketing messages to the contrary, cryptocurrency holdings are never FDIC (Federal Deposit Insurance Corporation)

2022-08-11Deep Dive

Cashmere, developer of the Solana wallet, raises $3M.

The enterprise wallet company Cashmere, developed by Solana, announced on August 9 that it had raised $3 million in seed funding at a $30 million valuation.　　Cashmere claims that Y Combinator, Coinbase Venture, VoltCapital Project Serum, and Global Founders Capital all took part in the funding round.　　For web3 startups, Cashmere is the go-to provider of Crypto wallets on the Solana blockchain. Designed to aid businesses in safely storing their crypto assets, with the added benefit of preserving those assets even in the event of a breach affecting “hot” wallets such as Solana-based Phantom or Slope.　　A “hot wallet” is a digital currency wallet that can be accessed from any Internet-connected device, such as a computer, smartphone, or tablet.　　The money will be used to hasten the creation of the companys CashmereWallet. It will also be used to hire more highly skilled people in preparation for the release of a high-end product later this year.　　The wallet also appears to be built so that multiple signatories from different companies can manage the wallet together.　　Cashmere claims that its wallet can accommodate multiple signers. According to the company, this feature makes self-custody more secure by requiring transactions to be approved by more than one wallet. This, in

2022-08-10Deep Dive

What's the Role of Bots in Crypto Trading?

Cryptocurrencies are notorious for being extremely volatile, with prices shifting substantially even within minutes. Investors can also participate in bitcoin trading from anywhere in the world and at any time of day. These characteristics, when combined, limit the effectiveness of human cryptocurrency trading in various ways.　　First, many investors are unable to react rapidly enough to market fluctuations in order to execute the best transactions that are theoretically accessible to them. Slowdowns in exchanges and transaction times aggravate the situation. Second, investors just do not have the time to devote to the cryptocurrency markets in order to constantly make the greatest trades. This would necessitate 24-hour supervision of bitcoin exchanges around the world.　　Fortunately, there are answers to these problems for many investors. Bots, or automated systems that conduct trades and execute transactions on behalf of human investors, are one of the key solutions. Bots are undoubtedly a contentious market component, and there are justifications for adopting them as well as reasons to avoid them totally.　　Types of Bots　　There are many varieties of cryptocurrency bots. One of the most popular types is the arbitrage bot. Arbitrage bots are tools that examine prices across exchanges and make trades in order to take advantage of

2022-08-10Deep Dive

PlayStation to survey EVO 2022 NFT players

The gaming giant PlayStation has been surveying its players about their interest in digital collectibles, suggesting that the company is considering a move into the world of non-fungible tokens (NFT).　　As Snorlax Ownz revealed on Twitter, the gaming giant included a question about the digital collectibles that might be of interest to EVO 2022 participants.　　PS4 reportedly polled EVO attendees about their favorite digital collectibles, as seen in the screenshot below. Choices like “Favorite Esports Players/Teams,” “Favorite Music Artists,” “Favorite PlayStation Items,” and “Favorite Game Characters” are all on the menu.　　Incorporating non-fungible tokens into the design of playable characters and downloadable content is becoming standard practice for game studios and Guilds. Play-2-Earn (P2E) games such as Axie Infinity, The Sandbox, and others are growing in popularity as a result of a new movement to incorporate blockchain dynamics into decentralized finance.　　In most households, a PlayStation console is the main entry point to some of the most exciting games available. If the rumors about the company are true and they decide to adopt NFTs, it will be a major step forward that could potentially propel the new innovation to an entirely new level.　　Even though the future of PlayStation has not been decided, other gaming

2022-08-10Deep Dive

Greg Dwyer of BitMEX pleads guilty to money laundering

First employee of BitMEX cryptocurrency derivatives exchange pleads guilty to violating U.S. anti-money laundering law. The news was released on Monday by the US Attorney for the Southern District of New York.　　Gregory Dwyer, who previously served as the head of Business Development at BitMEX, pleaded guilty to violating the Bank Secrecy Act for failing to establish, implement, and maintain an anti-money laundering program at BitMEX.　　Dwyer, a 39-year-old citizen of Australia and Bermuda, entered his plea before U.S. District Judge John Koeltl in Manhattan.　　Dwyer entered into a plea bargain with the government that calls for him to spend five years in prison and pay a $150,000 fine.　　“Todays plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act,” said U.S. Attorney Damian Williams.　　Following the guilty pleas of the cryptocurrency exchanges three co-founders, Dwyer has admitted to committing the same crimes (Benjamin Delo, Arthur Hayes and Samuel Reed).　　Prosecutors stated that from 2015 to 2020, Dwyer and BitMEX co-founders intentionally violated the federal Bank Secrecy Act by failing to adopt “know your customer” and anti-money laundering programs, thus turning the exchange into a money laundering platform.　　Earlier

2022-08-10Deep Dive

Mark Cuban calls buying Metaverse land "the dumbest sh*t ever"

Even though Mark Cuban, billionaire investor and owner of the Dallas Mavericks, is a member of the Bored Ape Yacht Club (BAYC), he is a vocal critic of the trend of selling plots of virtual land in the metaverse.　　Cuban said, “The worst part is that people are buying real estate in these places,” in an interview published on Altcoin Daily. “That is the most idiotic thing Ive ever heard.”　　Cuban has been viewed as a trustworthy voice in the crypto industry, so this shift in stance may come as a surprise to some. Cubans observation hinges on the growing trend of companies like Meta Platforms Inc, Gucci, and Salvatore Ferragamo, among others, to invest heavily in new metaverse-themed initiatives as part of the next stage of their business engagements.　　Cuban is skeptical of predictions that the future value of land in the metaverse will increase due to scarcity. Cuban contends that as many NFT lands as are required can be manufactured, rendering the scarcity principle moot.　　During the YouTube interview, he said, “Its not even as good as a URL or an ENS [Ethereum naming service] because there are unlimited volumes that you can create.” He went on to say that he did

2022-08-10Deep Dive

Off-Chain Labs has Reddit Community Points for Ethereum Mainnet.

To help bring Reddits Community Points (CP) initiative to the Ethereum Mainnet, Off-Chain Labs, the blockchain startup that created the Arbitrum scaling protocol on the Ethereum protocol, has made the announcement that it has been chosen to assist in this endeavor.　　As a result of their success in “The Great Reddit Scaling Bake-Off,” Off-Chain Labs was selected as the winner and appointed to the position. Millions of Reddit users around the world will have a more scalable transaction experience thanks to Off-Chain Labs management of the Reddit CP.　　The Ethereum protocols Arbitrum scaling solution was developed by Off-Chain Labs, a blockchain startup.　　Steven Goldfeder, Co-Founder s Proof-of-Work (PoW) and Proof-of-Stake (PoS) systems are about to merge (PoS). This combination will undoubtedly increase the protocols scalability and improve the capabilities of Layer-2 networks like Arbitrum.　　Reddit and Off-Chain Labs collaboration will be the networks initial large-scale deployment of the Arbitrum Nova protocol.　　The Arbitrum Nova protocol “was designed as the solution of choice for gaming and social applications,” as pointed out by Off-Chain Labs. Specifically, Nova employs the Arbitrum AnyTrust protocol, which is designed for high-volume, low-cost transactions with ironclad assurances of privacy and integrity.　　As a reminder, WikiBit is ready to help you search the qualifications

2022-08-10Deep Dive

After meeting with a Binance official, CZ eyes Monaco for expansion

Changpemet, co-founder and CEO of Binance, has met with multiple government officials over the past few months. He flew to Monaco, where he met with a high-ranking government official, Frédéric Genta.　　Historically, whenever Binance has worked with or visited a major government, representative, or official, he has planned an expansion into that region shortly thereafter. Binance will try to establish itself as a key player in the countrys digital transformation through partnerships with influential men if the trading platform already has a presence there.　　Because of its progressive tax haven status, the Principality of Monaco is a natural fit for the cryptocurrency industry. Monaco, among other related outfits, is quickly becoming an alternative for companies of interest now that Portugal is moving away from the path of zero tax for crypto startups and stakeholders.　　Zhao, also known as CZ, did not disclose the specifics of his meeting with Frédéric Genta, but given Gentas prominence in regional digital transformation policymaking, it is likely that they discussed the importance of blockchain and crypto startups.　　While in Kazakhstan, Zhao met with the countrys president, Kassym-Jomart Tokayev, and other government officials to sign a memorandum of understanding in which Zhao agreed to provide advice to the Kazakh government

2022-08-09Deep Dive

Smart Contract Dispute Resolution

Smart contract dispute resolution refers to alternative dispute resolution (ADR) measures for smart contract transactions. Smart contracts are self-executing programs that are stored on a blockchain like Ethereum. The program ensures that the actions agreed upon in the contract are carried out, removing the need for trust in exchanges.　　Because of this concern, there is a perceived need for ADR solutions that significantly reduce the time and expense required to resolve issues between parties in different countries.　　Learn about smart contract dispute resolution, why it is necessary, and what some decentralized finance companies are doing to help cryptocurrency users who have transaction disputes as a result of smart contracts contained within a blockchain.　　Understanding Smart Contract Dispute Resolution　　Smart contracts are scripts or programs that are written into a blockchain. These programs can execute many low-level agreed-upon transactions autonomously without issue.　　Existing contract laws and dispute resolution mechanisms adequately cover the underlying contracts that include the use of smart contracts within their borders, at least in the United States and most developed countries.　　Large corporations that expand globally typically develop expansion plans that include dispute resolution in the countries where they have expanded; they typically already have policies and programs in place to deal with customer

2022-08-09Deep Dive

Learn How to Navigate Your Emotions in the Virtual World In every way, the Metaverse is an exac

In every way, the Metaverse is an exact replica of our physical universe. With the help of social media, a whole new universe of immersive experiences has emerged, each of which is vying for widespread acceptance. Fears about the digital worlds lack of emotional depth have been voiced by experts even as a quiet Metaverse revolution gains steam. This article delves into how the Metaverse connects to our psyches.　　How the Mind Drives the Metaverse　　Our mental faculties play a significant role in molding the Metaverse. Because humans are motivated by a desire for satisfaction, the search for pleasure is a good illustration of this type of behavior. The Metaverse was designed to ride on the coattails of the brains pleasure circuits. Users will find it fascinating and keep coming back for more. Use the problems with social media as a teaching tool, and emphasize the dangers of social media addiction. Addiction to social media sites was much less common 15 years ago. Also, the Metaverse will eventually replace this dependency.　　In addition to shaping individual realities, the quest for power also exacerbates existing power imbalances throughout the Metaverse. To be more precise, those who gain access to the digital world first will

2022-08-09Deep Dive

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