ValteFri, Aug 6, 2021 10:00 PM
Weekly Digest: Google Crypto Ads & Fluffy Pony Fraud
Every week we make a digest about the most significant news in crypto with bloggers and crypto community members, but this week we decided to find out what companies’ representatives and media think about all things crypto.
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With the new Google policy going live, crypto ads will be available on the search engine system. Crypto wallets and exchanges can promote their services if they will get registered with Financial Crimes Enforcement Network as well as if they comply with federal or state regulations. Though ICOs, IDOs, token liquidity pools, celebrity cryptocurrency endorsements, unhosted wallets, unregulated dApps and loans are still prohibited from advertising. The new policy came into effect on August 3. Before that Google was well known for clamping down on crypto content “to protect users from scams and fraud” as the company declared. As cryptos get more legitimate, we can expect other companies to rethink the regulations and open up for the cryptos more, but this will depend a lot on the government regulations.
“There is ample evidence that U.S. authorities are working on a regulatory framework, and this could have an effect on the exposure of crypto going forward.” — Beincrypto
A blockchain-as-a-service dubbed EY OpsChain under big four accounting company Ernst&Young in collaboration with an Italian based fintech startup CinTech is going to create NFTs for the award-winning Italian movie “Da Leggenda Di Kaspar Hauser”. 62 NFTs will be created using EY OpsChain for the 22 main scenes of the movie. It comes in the same flow with many other big companies turning towards NFTs. For instance, Coca-Cola recently launched digital wearables for celebrating International Friendship Day. Can also mention an adult animated short series Stoner Cats making hourly profits of around $2.53 million. And as per the data from OpenSpace, a popular NFTs marketplace it has processed transactions estimated at approximately $95 million in just 2 days, compared to $21 million during the whole 2020.
“With this initiative, we are showcasing how digital content or assets can innovate business models by creating new revenue streams and financing sources.” — CinTech founders
Coinbase has stopped Bitcoin SV trading after the string of attacks on the network. According to the major exchange, 51% attack occurred on BSV on Tuesday morning when some hashing power was unleashed on the network. As became known the attempted attack was made first, followed by a successful one that caused around 20 blocks to get reorganized, and 3 versions of the chain were mined across pools. The Bitcoin Association was informed to be aware of the attack and also said that the miners are actively dealing with the situation. It was also advised to the node operators to mark the hacked chain as invalid, so it will return the node supported by the honest miners and lock the attackers’ chain out. Despite this, the network is still suffering some troubles. The Bitcoin SV has already suffered 4 attacks in two previous months of the summer when the blocks were also disorganized, but it’s still not clear whether new attacks were made by the same exploiter. The latest hack caused a 5,5% market capitalization drop and it follows the red time for the coin, in general, this year.
“These newer reorgs are disappearing faster from explorers (either being blacklisted or re-reorged); I've given up on tracking them. The BSV chain is still split. TAAL has abandoned Nakamoto consensus and confirmations are currently useless” — WizSec Bitcoin Research twitter account
Ethereum 2.0 is to be released in the coming days with EIP-1559 taking its place on the network. This Ethereum Improvement Proposal is created to improve the fee mechanism of the blockchain removing auction as the main lever of gas fee calculation. Right now the users have to bid the transaction amount to be processed by the network and then according to it the transaction proceeds with the system, so basically, you get a faster transaction than the more you pay for it. The new technology though will bring the base award for the miners, so the users get more stability in the network structure and smaller transaction fees without 3 times overpaying for the fast transaction. Even though the fee will rise as in the current structure, it will not increase 5-8 times. Theoretically, it’s still possible for the miners to push the fee up high as some miners will have a chance to ignore the transactions, not including a specific amount of tips. They will lose from not receiving basic fees, but it will be balanced by receiving additional gains from high tips.
“On the one hand, the implementation of the base fee will mean more ETH is going to be burnt over time. But on the other hand, miners will receive fewer rewards, which makes Ethereum’s future questionable.” — U.Today
Former lead developer Ricardo Spagni who left Monero in December 2019 was arrested for the fraud committed between 2009 and 2011 but unrelated to XMR. According to the Court Documents, Spagni's crime is related to his time as an IT manager at the Cape Cookies bakery in Capetown where he worked from October 2008 to June 2011 and then left the job on the terms of mutual agreement. He is accused of intercepting invoices from Ensync company related to the information technology goods and services it provided Cape Cookies with. Spagni was faking the invoices that looked like they were from Ensync and three other companies when in reality they were Spagni’s own accounts. The warrant on Spagni’s arrest was issued on July 20 by the South African Government with a view towards his extradition to face a fraud trial. He was arrested in Tennessee during the fueling stop of the private jet he was taking to Mexico. The hearing will happen on August 5 and if his fault in those frauds is proved he could land up to 20 years in jail.
“SPAGNI knowingly used false information to fabricate similar invoices purporting to be from Ensync, relying on details including this company’s Value Added Tax (VAT) number and bank account information. SPAGNI then inflated the prices for the goods and/or services.” — The Memorandum
Cardano’s Native asset ADA is going to be listed in Japan for the first time at the Japanese crypto exchange Bitpoint. As reported by the platform, Cardano’s native token will be listed later in August. It can be called a big achievement as the country of the rising sun has extremely strict regulations and a very limited number of tokens gets to be listed there with ADA now being one of them. Sebastien Guillemot compared this listing to the listing at Coinbase, explaining that for the Japanese crypto community those are the events of the same level. Before though Japanese users can buy and sell ADA through other exchanges that are based in different countries but operate in Japan. It also became known earlier that the largest crypto investment fund Greyscale had set an ADA-based trust, making it the third-largest investment.
The influencer marketer and the founder of Utah-based marketing agency Wooly Scott Paul promise prospective buyers of his house to get a 10% discount of his house price which is set at $399, 000 if the buyer will pay in Dogecoin, giving another roll for the crypto as a payment option in real estate sphere. Talking about the asset's possible volatility, Paul said that the chances for him to sell it in Doge and still win 20-40% are higher than the chances to lose money. And he’s not the one recent Doge supporter even though the meme token is suffering a down phase from its all-the-time-high in May. Many experts think that such a decision of Scott Paul can fuel DOGE prices. The influence marketer is also a well-known crypto-supporter who was one of the early Bitcoin and Ethereum adopters.
Binance is launching Tax Reporting Tool to assist the exchange with compliance requirements. The statement claims that the new tool will allow the users to keep the track of their crypto holdings and streamline reporting requirements by transferring their transactions history to a third party and obtaining overviews of tax liabilities. As per Changpeng Zhao, CEO of Binance crypto regulations are evolving around the world and it’s time for the community to get discovering this new and promising industry. He also thinks that the regulations should be more clear in different countries. The new tool also comes at the time when Binance was under fire from the regulators globally and was trying to show that the exchange is taking compliance and regulatory obligations seriously. But it is still unclear how will the regulation controversy related to Binance go as just in the last two months the regulators from UK, Italy, Japan, and the Cayman Islands claimed Binance can’t operate on their territory due to the lack of authorization requirements met.
“The U.K.’s Financial Conduct Authority told Decrypt that it has a “huge issue” with the exchange’s apparent lack of a headquarters.” — Decrypt
MakersPlace NFT platform that got widely known after facilitating the sale of Beeple’s record-breaking $69 million NFT network, just completed its series A funding round led by Panthera Capital and Bessemer Venture partners in which it raised $30 million thanks to the participation of Coinbase Ventures, 9Yards Capital, Uncork Capital, Sony Music Entertainment and Draper Dragon Digital Assets. The round was also backed by some other widely-known investors, in particular the entrepreneurs Tobias Lütke and Vinny Lingham, USA football player Larry Fitzgerald, rapper Eminem, and 3LAU, and the names from the art world - Bill Ruprecht and Acquavella Galleries. The money will be spent on the improvement of tools and services for digital creators which comes along with the idea to spread NFTs wider. Thanks to the NFT boom of the last couple of months’ other platforms have also experienced increased interest and major investments. SuperRare raised $9 million in series A in March, Nifty raised $10 million in the seed round in July and OpenSea raised $100 million in series B.
“According to Reuters, $2.5 billion was racked up in NFT sales just in the first half of 2021 — an incredible 18,150% increase on the NFT sales volume from the first half of 2020.” — Coinjournal
The ERC-20 Fun token with the vision to bring decentralized online gambling to the mainstream can become one of the most significant success stories in 2021. It successfully overcame the danger recently brought up by Ethereum raising gas fees when Freebitco.in, the seventh-largest online casino in the world acquired the token in February, used it for its Premium Membership program, and got it exposed to over 46 million users. It also has built a new team around the token and developed a detailed road map, so just in a few months Fun-token gained over 170, 000 new users quickly tripling its user base and making it all off-chain. It made Binance turn its attention towards the asset and added it to its Locked Savings program. And now it’s moving to the Polygon network where it will have all the chances to achieve full decentralization through on-chain activity, and the first issue to be resolved is high gas fees. At the same time this will bring over 250, 000 new users to the Polygon network.
“In the coming weeks, a full-fledged, truly decentralized casino for the L2 Token will be launched, taking FUN Token closer to its vision of making online gambling transparent, fast, and secure for everyone.” — Ambcrypto
NFT Marketplace OpenSea has recently raised $100 million, making its valuation around $1,5 billion. There are several big names in the crypto and NFT based games, including Axie Infinity, Gods Unchained, Zed Run, and Battle Racer and it’s considered NFT-base games can become the standard for gaming market if they keep gaining popularity and new users. Also, Polygon recently announced the launch of Polygon Studious that will help advanced crypto gaming and NFTs to make the platform connect Web 2 and Web 3 gaming. Also in mid-June Los Angeles-based NFT games developed Mythical Games announced a $75 million series B financing to popularize the ownership in games through playable NFTs.
“From there, it could be a very major change to the way people play games and could be as major as Doom was to the market or 3D was for environments.” — Shreyansh Singh, the head of gaming and NFTs at Ethereum layer 2 aggregator Polygon