Crypto Guides, Knowledge & Insights

NFT Sales Plunge to a 12-Month Low Due to Crypto Crash

According to crypto analytics firm Chainalysis, the crypto markets bloodbath has contributed to sales in the non-fungible token (NFT) sector falling to a 12-month low.　　In June, NFT sales surpassed $1 billion for the first time since June 2021, when they totaled $648 million.　　When sales reached an all-time high (ATH) of $12.6 billion in January of this year, NFTs were the talk of the town, but a slow start is expected in the second half of 2022.　　Chainalysis economist Ethan McMahon pointed out:　　“This decline is definitely linked to the broader slowdown in crypto markets.”　　Tightened macroeconomic conditions have not been kind to the cryptocurrency market, which has seen its value plummet to less than $1 trillion from around $3 trillion in November of last year.　　For example, the US Federal Reserve recently raised interest rates by 75 basis points (bps), the largest increase in 28 years.　　As a result, McMahon believes that consolidation in the crypto sector, including NFTs, will continue. He mentioned:　　“Times like this inevitably lead to consolidation within the affected markets, and for NFTs we will likely see a pullback in terms of the collections and types of NFTs that reach prominence.”　　Despite the fact that NFT sales have exceeded $42 billion so far

2022-07-04Deep Dive

Facebook Begins Integration Tests for Digital Collectibles

Facebook has apparently begun experiments for the integration of Non-Fungible Tokens (NFTs) on its platform. The Meta Platforms Inc subsidiary has restricted the testing to a small number of users in the United States.　　According to TechCrunch, people with privileged access will be able to add their NFTs to their accounts under a new tab. According to the article, a digital collectibles tag would be added to the NFTs, similar to how it is on Instagram.　　The decision to add NFT support to Facebook appears to be yet another deliberate attempt by the internet giant to strengthen its position in the digital currency ecosystem and the future Web3.0 world. Last week, Meta Platforms Chief Executive Officer Mark Zuckerberg said that Facebook will soon add support for NFTs.　　Navdeep Singh, a product manager at Meta, tweeted a screenshot of the new NFT capability. According to the screenshots, when a visitor clicks on the NFTs on a users Facebook profile, it displays information about the digital collectible, such as its name and the artists who created it.　　Meta Platforms initially introduced NFT support on Instagram in May, a move that has received widespread praise and acceptance. The popularity of Instagram NFTs may be fueling the new

2022-07-04Deep Dive

Meta Platforms to End Digital Wallet Novi Pilot on Sept. 1

Meta Platforms Inc., the parent of Facebook, said that its Novi pilot will no longer be available for use after Sept. 1.　　Novi, the companys digital wallet designed around its Libra digital currency, will no longer be available on the app or through WhatsApp starting in September. When the pilot ends, users will not be able to log in and access their account. Users also cant add money to their account starting July 21.　　Users withdrawing from the digital wallets account can choose to transfer their balance to their bank account or withdraw it as cash where applicable, the social media giant said on its website.　　“We have notified Novi pilot participants that we are ending the pilot program at this time. We will be taking forward the technology we developed and what we have learned from the program into future products across the company as we focus on building for the metaverse,” a Meta spokesperson said Friday in an emailed statement.　　Bloomberg first reported the news.　　The Wall Street Journal reported in January that the Diem Association, the consortium Facebook founded in 2019 to build a futuristic payments network, is winding down and selling its technology to a small California bank that serves bitcoin

2022-07-04Deep Dive

Coinbase Responds to Reports of Selling Customer 'Geo Tracking' Data to US Government

Coinbase Responds to Reports of It Selling Customer Data to U.S. Government　　Cryptocurrency exchange Coinbase came under fire last week when reports surfaced accusing the Nasdaq-listed company of selling customer data to the U.S. government.　　Coinbase Tracer, the analytics arm of the cryptocurrency exchange, has signed a contract with U.S. Immigrations and Customs Enforcement (ICE) that would allow the government agency access to a variety of data, including “historical geo tracking data,” according to a contract obtained by watchdog group Tech Inquiry.　　However, Coinbase clarified on Twitter Thursday: “We want to make this incredibly clear: Coinbase does not sell proprietary customer data.”　　“Our Coinbase Tracer tools are designed to support compliance and help investigate financial crimes like money laundering and terrorist financing. Coinbase Tracer sources its information from public sources, and does not make use of Coinbase user data. Ever,” the exchange further tweeted.　　However, many people on Twitter do not believe that Coinbase is not selling any customer data to the U.S. government, noting that the company specifically uses the word “proprietary” to describe the data it is not selling.　　Coinbase sold a single analytics software license to ICE for $29,000 in August last year, followed by a software purchase potentially worth $1.36 million the

2022-07-03Deep Dive

Three Arrows Capital Files for Bankruptcy

The troubled crypto hedge fund Three Arrows Capital Ltd., otherwise known as 3AC, has filed for bankruptcy according to recent court filings. The court papers show 3AC is aiming for an ancillary Chapter 15 proceeding so liquidators and creditors cannot seize the firms U.S. assets.　　3AC Files for Bankruptcy — ‘Tremors’ From the Crypto Market Fall ‘Continue to Reverberate,’ Says JPMorgan Analyst　　Following the reports that Three Arrows Capital Ltd. (3AC) was reprimanded by the Monetary Authority of Singapore (MAS) and faced liquidation from a court order stemming from the British Virgin Islands (BVI), 3AC has reportedly filed for bankruptcy.　　Court filings were seen by Bloomberg‘s Jeremy Hill and the author published a report that summarized the situation. Hill says that 3AC has filed for a Chapter 15 bankruptcy, which allows proceedings to occur and protect insolvent firms in more than one country. Essentially, 3AC wants the bankruptcy recognized in the U.S., in order to protect the hedge fund’s assets located in America.　　“Representatives for Three Arrows filed the bankruptcy petition in New York on Friday, court papers show,” Hill explained on Friday. The law firm Latham & Watkins is representing Three Arrows in the U.S. bankruptcy [case], the reporter added.　　3AC‘s bankruptcy case was

2022-07-03Deep Dive

Bitcoin Sees Worst Quarter In 11 Years

The leading cryptocurrency in the world, Bitcoin (BTC), saw its worst quarter-over-quarter drop in 11 years. According to data from CoinGecko, BTC has lost over 57.43% in the second quarter of 2022. Additionally, by selling below $19,000 on the final day of Q2, Bitcoin had its most significant quarterly loss in more than a decade.　　The current state of the Bitcoin market is not good. The position was favorable even at the end of Q1 when it was approaching close to $50,000. But after that, things became more complex, and the price kept dropping.　　From $45,524 at the beginning of the year, bitcoin slid to a low of $17,593.2 on June 18. It recorded its worst-performing quarter as a result of its persistently negative price moves, which have seen it drop below $20,000 several times in June.　　According to CoinGecko data, BTC dropped by 38% over the month of June and is currently trading at $19,447.62.　　Since its launch in January 2009, the price of bitcoin has been on an up-and-down Ferris wheel. Like Q2 2021, the second quarter of 2022 will be referred to as the Bloodiest Quarter In Crypto. Quarter 2 of last year lost more than 40% of its value.　　Concerns About

2022-07-02Deep Dive

FTX Has Canceled Acquisition Talks With Celsius Network

According to the most recent report on Thursday, June 30th, Bahamian cryptocurrency exchange FTX Derivatives Exchange declined a deal to acquire New Jersey-based crypto loan startup Celsius Network.　　FTX had began talks with Celsius about bailing out or acquiring the failing company. However, after investigating Celsius finances, the trading platform withdrew and chose to end the negotiations.　　According to the article, FTX made the move after determining that Celsius balance sheet contained a “$2 billion hole.” FTX reportedly discovered that Celsius position is tough to cope with.　　Celsius was reported to have $11.8 billion in assets in May of last month, a significant decrease from the $25 billion it had in October of previous year.　　Celsius banned all withdrawals, swaps, and transfers between accounts on June 12th due to “extreme” market conditions that looked to have rocked the cryptocurrency industry.　　In recent months, the market for digital assets has been roiled by severe volatility as investors flee riskier assets amid fears that aggressive interest rate hikes to curb persistent inflation could send the economy into recession.　　Celsius contacted the legal firm Akin Gump Strauss Hauer & Feld LLP earlier this month for advice on potential remedies to its mounting financial problems. In addition, the firm recruited

2022-07-01Deep Dive

FBI's Most Wanted List: Ruja Ignatova, Founder of OneCoin

Ruja Ignatova, the fake CryptoQueen, as she is called, has been added to the FBIs list of the ten most sought criminals. Rujas inclusion was predicated on her exploitation of her OneCoin crypto firm to swindle millions of investors worldwide in a $4 billion scheme.　　When OneCoin was launched in 2014, it was touted as a Bitcoin-killer, although it lacked its own blockchain, unlike other digital currencies. Subscribers were instead sold educational cryptocurrency trading kits and tasked with enrolling family and friends into a complex Ponzi scheme.　　“OneCoin claimed to have a private blockchain,” said Special Agent Ronald Shimko, who is investigating the case out of the FBIs New York Field Office. “This is in contrast to other virtual currencies, which have a decentralized and public blockchain. In this case, investors were just asked to trust OneCoin.”　　OneCoin Will Eventually Collapse　　The entire system collapsed because holders of the OneCoin token were unable to convert their holdings and could only benefit from the projects multilevel marketing feature. Ruja has been on the run since her last sighting in Greece on October 25, 2017.　　The FBI had caught Rujas collaborators who had joined forces to manage the scheme, with one of those awaiting sentencing being her

2022-07-01Deep Dive

Grayscale Files a Lawsuit After the SEC Denies its Proposed ETF Bid

Grayscale Investments aspirations were dashed when the Securities and Exchange Commission (SEC) denied its application to convert the Grayscale Bitcoin Trust product to a full-spot Exchange Traded Fund (ETF).　　In response, the investment asset management has filed an appeal with the US Court of Appeals for the District of Columbia Circuit, claiming that the regulator breached the Administrative Procedure Act (APA) and the Securities Exchange Act of 1934.　　The SECs rejection is based on the fact that there is no trustworthy system in place to prevent fraud, which is the same argument it has used in previous rejection judgments. Grayscale filed an immediate appeal because it was prepared for this type of action, as Chief Executive Officer Michael Sonnenshein had promised a lawsuit months before the final verdict was expected.　　“Grayscale supports and believes in the SECs mandate to protect investors, maintain fair, orderly, and efficient markets and facilitate capital formation -- and we are deeply disappointed by and vehemently disagree with the SECs decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market,” Sonnenshein said.　　In June, the corporation hired Donald Verrilli, a top Solicitor in the Obama Administration, to join its legal team. Verrilli will now lead the

2022-07-01Deep Dive

Deutsche Bank Predicts Bitcoin May Reclaim $28,000 This Year

According to a Thursday report published by Bloomberg, Deutsche Bank, a German multinational investment bank, has predicted that the price of Bitcoin could recover to $28,000 by the end of the year.　　The rationale behind the modestly upbeat prediction is that the stock market is likely to partially recover by the end of the year. Due to a strong correlation with the tech-heavy Nasdaq 100, Bitcoin is likely to recover in tandem with U.S. equities, Deutsche Bank says.　　The worlds largest cryptocurrency has once again slipped below the $20,000 level, currently trading at $19,995 on the Bitstamp exchange.　　Tom Lees investment firm Fundstrat recently predicted that the price of the largest cryptocurrency would retest the June low of $17,592. For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.　　Digital diamonds？　　Now that the case for Bitcoin as “digital gold” has fallen apart, Deutsche Bank analysts believe that it would be more apt to compare the flagship cryptocurrency to diamonds.　　The top digital coin mainly relies on marketing, which makes it similar to De Beers, the London-based corporation that managed to revolutionize the diamond industry with its iconic ad campaign in the late 1950s.　　Bitcoin proponents are marketing an idea instead of a

2022-07-01Deep Dive

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