Author: José Oramas

José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.

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Crypto News Institutions NFTs Payments

Mastercard Partners with Coinbase Enabling Easy NFT Purchases

Payments giant Mastercard has partnered with crypto exchange Coinbase to enable easier NFT (non-fungible token) purchases.

In a blog post, Mastercard said that buying NFTs should be as easy as buying goods on e-commerce sites, which is why it will soon allow customers to use their debit/credit cards on Coinbase’s upcoming NFT marketplace.

Buying NFTs on decentralised marketplaces such as OpenSea is a step-by-step process in which the user is required to set up a cryptocurrency wallet such as MetaMask, fund the wallet, and then connect it to the platform to start buying and trading NFTs. This is a normal process for most in the cryptosphere, but not as easy for newcomers to the space.

A Million on the Coinbase Waitlist

Coinbase’s NFT platform hasn’t gone live yet, but it has a waitlist with more than 1 million people signed up already. It will be one of the first marketplaces to allow card payments to buy NFTs. Other platforms such as Nifty Gateway and OpenSea have thought about adding this modality in the past, though the third-party requirements are still there.

Coinbase was basically an on-ramp for crypto for many, many users. Millions of people were able to access bitcoin for the first time by using Coinbase. So we want to do the same thing for NFTs with Mastercard by solving the pain points – to make it as easy as possible to buy an NFT and make sure it’s the best consumer experience.

Prakash Hariramani, senior director of product, Coinbase

On October 27 last year, Mastercard announced a partnership with crypto firm Bakkt to enable its 1000-plus banks and merchants in the US to buy and sell digital assets through Bakkt’s crypto custody services.

And to keep things safe, a month earlier Mastercard acquired blockchain forensic firm CipherTrace to enhance its operations in the crypto industry, enabling both companies to combine their technologies in the space.

Crypto Community Takes it with a Pinch of Humour

The news drew a mixed reaction from crypto Twitter, some claiming the NFT movement is nothing but a major Ponzi scheme, others saying teenagers and kids will use their mothers’ credit cards to buy NFTs just like they do with Fortnite skins.

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Australia Crypto News Regulation Scams Superannuation

ASIC Cautions Investors Against Switching to an SMSF to Invest in Crypto

The Australian Securities and Investment Commission (ASIC) has issued a warning to consumers to not rely on people advising to invest in crypto via an SMSF.

SMSFs Are Crypto Scam Targets

There has been an increase in marketing that recommends Australians switch from retail and industry superannuation funds to self-managed super funds (SMSFs) to invest in cryptocurrencies. ASIC cautions investors to be wary of relying on ads and people inciting them to invest in crypto via their SMSF.

Do not rely on social media ads or online contact from someone promoting an ‘investment opportunity’. Be wary of people cold calling, text messaging, or emailing you with a recommendation to transfer your super to an SMSF, or invest in crypto assets via your SMSF.

ASIC

SMSF Association CEO John Maroney told The Australian newspaper that there had been an increase in crypto marketing in recent years, though not specifically relating to SMSFs. Maroney added that according to data from the ATO (Australian Taxation Office), in 2019 crypto represented less than 0.1 percent of SMSF assets. This number had grown significantly since then, Maroney said, consistent with the number of scammers trying to deceive investors through crypto-related ads and marketing.

Before investing in crypto assets, SMSF trustees and members need to consider the level of risk of the investment and ensure [it] is consistent with the fund’s investment strategy and the SMSF’s trust deed.

John Maroney, CEO, SMSF Association

Beware of Unlicensed Crypto Companies and ‘Finfluencers’

The ASIC warning came after it shut down A One Multi Services, an unlicensed financial company in Queensland, in November for buying A$2.4 million worth of cryptocurrency with members’ funds. In August, the regulator had warned investors about investing in unlicensed crypto companies as the number of crypto-related scams had significantly increased in Australia.

Finfluencers have also become a problem for Australians. Finfluencers are celebrities on social media channels such as YouTube, Instagram and TikTok who claim they can help their followers achieve “financial freedom” but without providing any kind of financial advice. This is specially worrisome for young people and newcomers keen to invest in crypto since they tend to be the most vulnerable.

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Crypto News NFTs

World’s Ugliest Shoe ‘Crocs’ Steps into NFT and Digital Collectibles Space

Colorado-based footwear manufacturer Crocs, Inc is dipping a toe into the NFT (non-fungible token) space. As per a recent US Patent and Trademark Office (USPTO) report, Crocs has trademarked every intellectual property of its belonging. The software for trading these types of digital assets would also be covered.

CROCS™ trademark registration is intended to cover the categories of downloadable digital media, namely digital assets, digital collectibles, digital tokens and NFTs. Downloadable virtual goods created with blockchain-based software technology and smart contracts, in the nature of footwear, clothing, bags, accessories and charms for decorating [them]; downloadable computer software for creating, managing, storing, accessing, sending, receiving.

USPTO report

The file was issued on an “intent-to-use” basis, so it’s safe to assume that Crocs could soon launch a NFT collection based on its products. The footwear company had a positive 2021, with 67 percent revenue growth year on year.

Fashion and Footwear Brands Moving into NFTs

This year could mark a new trend for fashion accessories and shoe brands in the NFT industry, especially with the emergence of the metaverse. Crypto News Australia reported on January 14 that clothing retailer Gap Inc was set to launch an NFT collection on the Tezos blockchain, working with NFT artist Brandon Sines, who’s behind Frank Ape.

There are also Aussie fashion companies betting on the NFT wave, such as Ordre, a global online wholesale fashion tech company based in Byron Bay that last year raised US$9 million to expand its fashion services and accelerate the development of its blockchain-based platform and NFT technology.

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Banking CBDCs Crypto News Payments

Visa Partners with ConsenSys to Pilot CBDC

American multinational payments giant Visa has partnered with ConsenSys, a blockchain software tech company, to build the proper infrastructure to pilot its own CBDC (Central Bank Digital Currency).

As per an announcement on January 13, Visa will integrate its payment module into ConsenSys blockchain infrastructure to issue a CBDC pilot to test retail applications such as cards and wallets, with an anticipated launch by the end of the first quarter of 2022. Visa clients will be able to integrate the infrastructure to issue CBDC-linked payment cards and wallet credentials.

Visa revealed it will be working with approximately 30 banks worldwide to receive insights over what they want to achieve with CBDCs, a topic long discussed among these financial institutions.

Decentralised Entities Working With … Banks?

Visa has been already working with CBDC products since last year. For instance, in October 2006 it announced it was working on developing a protocol to send digital currencies between blockchains to operate as a “universal payment channel”, which will connect CBDC networks between countries.

On the other hand, ConsenSys is an Ethereum-based protocol that allows developers to build next-generation blockchain infrastructure for businesses, with a special Ethereum suite to access the decentralised web. But the crypto community’s reaction to ConsenSys working with central banks has sparked outrage:

“CBDCs are a form of digital dollar, or that’s what we’ve been told by most media channels. CBDCs are actually far away from the original concept of decentralised money as it would be in the hands of centralised financial entities, turning it into a potential surveillance tool“, as cautioned this week by US lawmaker Tom Emmer:

Categories
Crypto News NFTs Scams

NFT Community Comes Together Amid $1.3 Million Frosties NFT RugPull

Another non-fungible token project has pulled the rug on its investors, stealing at least US$1.3 million out of their pockets, in the first NFT scam of 2022.

Developers from Frosties NFT Vanished, Community Tries to Fight Back

As per a report from Business Insider, the developers of an NFT project called Frosties disappeared after investors bought all 8,888 available tokens on OpenSea. The NFTs were sold out just 40 minutes after the drop, and had an average floor price of 0.04 Ether (ETH), or US$121 at the time.

The majority of the funds were transferred out of the developers’ original wallet, as noted in the Etherscan report. As usual, the project erased all traces of them on social media, deleting Twitter, Discord, and the official website. The developers’ wallet was also removed from the collection’s landing page on OpenSea.

Now the Frosties community is coming together to plan a way to recover their funds. Many members are flocking to a recently created Discord channel to help each other out, starting by wrapping their NFTs to stop devs from getting sale royalties:

Always Invest Only What You Can Afford To Lose

After the news emerged, some members of the NFT community were asking for a way to apply KYC (Know Your Customer) procedures to teams behind crypto projects.

But NFT scams will continue in the space as long as people are willing to stake their money. This is why the perennial advice is to only invest money you can afford to lose, and especially do your own research before jumping into a new project.

One of the most recent NFT rugpulls occurred on the Solana network last month when SolGame, a decentralised P2E (Play-2-Earn) NFT project, shut down its Discord channel and official website. Some members are still looking for the creator of the project, but no light has been shed up to now.

Another controversial NFT rugpull from 2021 was presumed to have been performed by a 17-year-old 3D artist. As Crypto News Australia reported in October, the teenage developer stole US$500,000 through Iconic Sol, an NFT project on the Solana blockchain.

Categories
Banking CBDCs Crypto News Cryptocurrency Law

US Lawmaker Introduces Bill Prohibiting ‘Surveillance Tool’ Retail CBDC

A US lawmaker is seeking to stop the Federal Reserve from issuing a CBDC (Central Bank Digital Currency) directly to its consumers due to concerns over privacy of customers’ data.

CBDCs Are a “Surveillance Tool”

Minnesota Republican Tom Emmer introduced a bill on January 12 that would prohibit the Federal Reserve (Fed) from issuing CBDCs to US citizens. The bill briefly explains why such a product would turn into a “surveillance tool” for the Fed in the future, as customers may be forced to register with the central bank to access their money.

Emmer cited China’s efforts to accelerate the spread of the digital yuan to a broader population within the country, with tech giants such as Alibaba and Tencent joining the government to help reach its goal.

However, Emmer believes this will end up in a massive surveillance system directly aimed at Chinese citizens, tweeting that the “US should prioritise blockchain technology with American characteristics rather than mimic China’s digital authoritarianism out of fear”.

Emmer, echoing the majority Republican view, went on to say that the Fed doesn’t have the power to handle these type of demands on its systems like private financial entities do.

As other countries, like China, develop CBDCs that fundamentally omit the benefits and protections of cash, it is more important than ever to ensure the US’ digital currency policy protects financial privacy, maintains the dollar’s dominance, and cultivates innovation.

Tom Emmer, Minnesota Republican

Are CBDCs a ‘Perversion of Crypto’?

CBDCs are simply a digital form of fiat currency issued and regulated by a central bank and/or government authority. Despite continuous efforts by global governments to improve such a product, privacy remains the number one concern, and former NSA consultant and noted whistleblower Edward Snowden concurs.

As Crypto News Australia reported last October, the former NSA consultant argues that CBDCs aren’t so much a form of digital dollar as “something closer to being a perversion of cryptocurrency“.

Categories
Crypto News Ethereum NFTs

Ethereum NFTs Domains Can Now be Used for Single Sign-On Logins

Ethereum and Polygon non-fungible token (NFT) domains can now be used for single sign-on logins, thanks to an initiative from Unstoppable Domains, a US-based company that provides blockchain-based domain names.

Log In Using NFT Domains

The service allows users to have an NFT portable name and use it to easily sign in to their favourite apps, lowering the barriers for users by eliminating the need to provide additional information.

Several applications are now providing support for Login with Unstoppable Domain. The app in question will read the domain and direct the user to the authorisation server saved to that domain name. All the user needs to do is to authenticate and grant access to the information requested by signing a transaction with the key that owns their domain.

This login system is based on domain names! By using domains as your global login identifier across the internet, you have a single name that you can use to log in across every app. Every app can then reference this domain to pull the info you’d like to share – such as your domain name or favourite NFT profile picture – to show in their app.

Unstoppable Domains blog post.

Blockchain-Based Domains

So far, Unstoppable Domains has 2 million registered domains ending in .crypt, .nft, .wallet, and more. This move will allow millions of users to simply register across a myriad of apps by using their NFT domain names.

Blockchain-based domains are hexadecimal wallet addresses turned into easy-to-remember names that are stored on the blockchain, and cannot be modified by third parties.

In order for these crypto domain names to supersede .com, Ethereum will have to address speed and fees issues – Ethereum layer projects may be able to help provide the infrastructure to scale globally.

They have reached a level of mainstream attention too. In August 2021, Crypto News Australia reported that American beer brand Budweiser had bought the Beer.eth domain name for 30 ETH.

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Crypto News Ethereum Investing Scams Social media Tokens

Kardashian and Mayweather in Hot Water Amid Lawsuit over Ethereum Max Promotion

What do Kim Kardashian, Floyd Mayweather and Paul Pierce have in common? They’re all getting sued by an aggrieved investor over an alleged Ethereum Max (EMAX) pump-and-dump scheme.

Another Pump and Dump Endorsed by Celebrities?

In a lawsuit filed in the US District Court of California’s Central District, the plaintiff argues that EMAX co-founders Steve Gentile and Giovanni Perone promoted the currency with the help of celebrities such as reality star Kardashian, professional boxer Mayweather, and former NBA basketballer Pierce. As per the filing:

EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from ‘trusted’ celebrities, to dupe potential investors into trusting the financial opportunities available with EMAX tokens.

On May 31, 2021, EMAX’s price peaked at peaked at a price of US$0.000000597636 following the continuous endorsement of these celebrities via Instagram, Twitter, and other social networks. But it dropped over 80 percent in just 11 days.

After the massive drop, its price experienced a few bullish rallies in June after Kim Kardashian promoted the token on her Instagram, but that didn’t stop the token from falling again. In total, the token has lost 97 percent of its value.

While the plaintiff and the rest of investors were buying EMAX, Kardashian and the other celebrities were already selling for considerable profits.

Price history of the EMAX token. Source: CoinGecko

Be Wary of Coins Promoted by Celebrities

Newcomers to the crypto space should be wary when watching celebrities backing up digital tokens from shady developers. These types of currencies are known as “shitcoins” – worthless tokens with no proper infrastructure behind their design, they are rather made to dupe potential investors out of a lot of money.

The developers behind these shitcoins usually promote their product on popular social media platforms such as TikTok or Instagram. In July 2021, former YouTube star Logan Paul was slammed for promoting a shitcoin called DINK DOINK to his 23 million followers on Twitter.

That same month, Crypto News Australia also reported how TikTok had banned users from promoting all things crypto-related on its video-sharing platform, also banning crypto ads.

Categories
Institutions Payments Stablecoins

PayPal Confirms it is ‘Exploring a Stablecoin’ After Dev Discovers it in Code

PayPal Coin is the new soon-to-be-released stablecoin from Paypal Holdings Inc, as revealed to Bloomberg News by Jose Fernandez da Ponte, PayPal’s senior vice-president of crypto and digital currencies.

Stablecoin Development Code Found Inside the PayPal App

In an interview with Bloomberg, Fernandez da Ponte said: “We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators.”

As per the report, it was PayPal developer Steve Moser who found the hidden code of a stablecoin already in development inside the PayPal app. Moser also found a logo image that read: “PayPal Coin”.

Discovered logo of PayPal’s stablecoin. Source: Bloomberg

However, the code and the image were the products of a recent PayPal internal hackathon – a type of internal gathering frequent in tech companies where employees such as software developers engage and collaborate to promote new products and projects. This means that the final product could change.

Stablecoins Facilitating Payment Systems

PayPal’s effort to engage with the crypto market was one of the main drivers behind the Bitcoin price rally that started in mid-2020 – a year that saw the emergence of the institutional interest in cryptocurrencies.

While most financial institutions were hoarding high market-cap currencies such as bitcoin and ethereum in 2021, the interest in stablecoins quickly took over as they facilitate USD transactions for businesses. On December 13 it became apparent that Novi, Meta’s digital wallet, was on the move to start a stablecoin payments trial by simply sending a text message on the WhatsApp chat app, instantly and with no fees.

However, the stablecoin market has its downside – there is no deposit insurance for holders, for one. But as Crypto News Australia reported last October, the US Government has been studying the possibility of a US$250,000 coverage for holders of these tokens.

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Crypto News Hackers Solana

Solana Down for Second Time This Week; Should Users be Concerned?

It appears Solana is down for the second time this week. As Crypto News Australia reported, Solana suffered a DDoS (Distributed Denial of Service) attack on January 4, leading to slow network performance and failed transactions.

SOL Community Outraged

Then on January 6, Solana Status announced that the network had suffered a “degraded performance due to an increase in high compute transactions”. SOL co-founders and members are denying another possible DDoS attack and that it was rather a “congestion issue”. As expected, the message wasn’t well received by the community:

Solana Beach shows that the average TPS (transactions per second) rate is back to around 1500. However, roughly 80 percent of those are not smart contract transactions, but on-chain consensus messages.

As previously explained by Twitter user and crypto enthusiast EdnStuff, the more validators join the network, the number of consensus messages grows exponentially, not linearly:

Third Time’s the Charm?

This is the third time that Solana has been struck by a DDoS attack, or as its co-founders prefer to call it, a “congestion issue”. More SOL users are complaining about the constant crashes and condemning the network’s vulnerability. After all, it was only two days ago that Solana crashed due to a DDoS attack. Already on December 14, the Solana blockchain was jammed after suffering a DDoS attack that led to huge delays.