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- Metaverse Token Signals New Era For Bitcoin 🪙📈
Metaverse Token Signals New Era For Bitcoin 🪙📈
PLUS: Mark Cuban's crypto wallet hacked. Bitcoin set to hit $250,000.
Manan Vora
September 18, 2023
Snapshot Web3
September 18, 2023
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Regulatory and Legal News
Senator Elizabeth Warren's Digital Asset Anti-Money Laundering Act, supported by nine U.S. lawmakers, aims to tighten regulations on cryptocurrency companies. Critics say it infringes on user privacy. The bill extends requirements to wallet providers and addresses 'unhosted' wallets, with additional rules on foreign accounts. It has backing from organizations like the Bank Policy Institute.
The Hong Kong Monetary Authority (HKMA) has cautioned against crypto firms using banking terms, stating it may violate the region's banking laws. The HKMA emphasized that only licensed institutions are permitted to conduct banking activities in Hong Kong. Using terms like "crypto bank" or claiming to offer banking services could be unlawful. The HKMA also reminded the public that funds placed in such "crypto banks" are not protected by the deposit protection scheme. Recently, Hong Kong has been taking action against violators of licensing laws, such as warning crypto exchange JPEX for operating without a license.
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Innovation and Launches
ANZ, a major Australian bank, successfully utilized its A$DC stablecoin and Chainlink's Cross-Chain Interoperability Protocol (CCIP) for a transaction. This highlights ANZ's proficiency in transferring funds across diverse blockchain networks, emphasizing the potential for secure and efficient on-chain deployment of real-world assets. The initiative builds on insights gained from the Swift interoperability project and underscores Chainlink's pivotal role in enabling cross-chain communication. ANZ's Nigel Dobson foresees a broad adoption of digital assets across multiple blockchain networks.
Ethereum's attempt to launch its new test network, Holesky, was thwarted by a misconfiguration in one of the genesis files. While some validators manually initiated the network, core developers decided to postpone the launch for about two weeks to address the issue. This is an unusual setback for Ethereum, which has smoothly implemented major upgrades over the past year. Despite the delay, Holesky is still expected to play a critical role in Ethereum's upcoming hard fork, Dencun. The failed launch coincided with the first anniversary of Ethereum's transition to a "proof-of-stake" blockchain.
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NFT, Gaming and Metaverse
Animoca Game Studio's subsidiary, Darewise Entertainment, is set to introduce the first metaverse token on the Bitcoin blockchain, signifying a significant advancement for Bitcoin beyond its role as a store of value. This token will facilitate in-game assets and virtual lands for Life Beyond, Darewise Entertainment's metaverse project. The move is seen as a transformative step in Bitcoin's potential cultural impact. Darewise is partnering with Horizen Labs, known for their blockchain expertise, to develop applications and tools for the Ordinals ecosystem on Bitcoin. This initiative represents a broader exploration of Bitcoin's capabilities, with further technological advancements planned for Life Beyond and other metaverse projects in the coming months.
Axie Infinity, a major play-to-earn blockchain game, has seen an 87% drop in average monthly users since its peak in January 2022. While it logged $4.28 billion in NFT sales, its total value locked (TVL) on the Ronin chain plummeted from $1.487 billion to $61 million. The native cryptocurrencies, AXS and SLP, also saw significant declines. Despite its popularity, Axie Infinity lags far behind games like Call of Duty in monthly active users.
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Scams and Hacks
Billionaire investor Mark Cuban's crypto wallet was hacked, resulting in the loss of $870,000 worth of various cryptocurrencies. The suspicious activity was noticed after the wallet had been inactive for 160 days. Cuban confirmed the hack and mentioned potential issues with the version of Metamask he downloaded. He managed to transfer the remaining assets to Coinbase Custody after the breach. This incident follows Cuban's previous loss in the crypto space when an investment in Iron Finance went sour in 2021. Ethereum founder Vitalik Buterin also fell victim to a recent SIM swap attack, resulting in a crypto scam.
Huobi, now rebranded as HTX, faced a breach resulting in the exposure of user mnemonics and private keys. The incident led to a loss of $1.39 million from a compromised user account. A security agency, along with Refundyourcoins, worked to secure the compromised funds and will assist affected users in recovery across major blockchain networks. This incident follows a previous breach in June 2021, highlighting ongoing cybersecurity risks in the crypto space, particularly from disguised Trojan viruses.
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Interesting Reads
In 2009, Kristoffer Koch, a Norwegian individual, invested about $26 in Bitcoin, acquiring 5,000 coins. He forgot about his investment until 2013 when he discovered it had grown to about $886,000. Today, those coins would be worth a staggering $131,370,000. Koch decided to trade a portion for a luxurious apartment in Oslo, Norway, choosing to hold onto the rest. His story highlights the potential of holding onto digital assets, showcasing the profound impact of blockchain technology. This narrative echoes others who either sold too early or didn't buy Bitcoin when prices were significantly lower, underestimating its potential. Notably, Koch's investment predates the famous purchase of two pizzas for 10,000 Bitcoins in 2010, a milestone in Bitcoin's history.
Cryptocurrencies, particularly Bitcoin, align with agorist philosophy, promoting counter-economic activities that bypass state controls. Features like pseudonymity and censorship resistance empower individuals to engage in voluntary, private transactions, reducing state influence. The decentralized nature of cryptocurrencies strengthens this approach, enabling borderless and unconfiscatable exchanges. This fosters a vision of a society based on voluntary exchange, free from coercion and theft, ultimately providing tools for self-liberation from state-controlled money.
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Quick Links
Several factors, such as the expected $5 billion Blackrock ETF, the upcoming Bitcoin halving, and increased institutional investment, are aligning to suggest that Bitcoin could easily reach a price of $250,000+ within the next 24 months.
A trio of celebrities have settled lawsuits against them related to sponsorship deals struck with the failed crypto-exchange FTX before it collapsed last year. Trevor Lawrence, an NFL quarterback for the Jacksonville Jaguars, reportedly settled a suit that accused him of misleading investors in FTX for an undisclosed sum. Youtubers Tom Nash and Kevin Paffrath also agreed to settlements, but the terms were not disclosed.
He referred to fiat money as fake money, while gold and silver are “God’s money” and bitcoin is “people’s money.
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Resource of the Day
To prevent hacks by groups like Lazarus, crypto investors should: 1) Use hardware wallets for secure, offline storage of assets. 2) Implement Two-Factor Authentication (2FA) on exchange and wallet accounts. 3) Exercise caution when clicking links in emails and social media, and consider using separate accounts for experimentation and airdrops.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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