Author: Jana Serfontein

Jana has keen interest in what cryptocurrencies have to offer in regards to NGO’s, governments and the financial system. And is also intrigued with the psychological effect that cryptocurrencies have on society.

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DeFi Hackers Illegal Scams Stablecoins

Beanstalk Stablecoin Loses $182 Million in Flash Loan Exploit

An attacker has drained US$182 million from Beanstalk stablecoin protocol in a flash loan attack, the second nine-figure DeFi exploit in just a month. Beanstalk joins a growing list of Ethereum DeFi protocols to suffer multimillion-dollar breaches:

The attack on Beanstalk, a credit-based stablecoin built on Ethereum, mirrors an incident last year where PancakeBunny’s DeFi protocol suffered a US$45 million loss from the ecosystem. In the Beanstalk case, an attacker used a flash loan exploit to drain the protocol’s funds and Etherscan data shows Aave’s flash loan feature was leveraged to withdraw liquidity from the protocol. The hacker then used Uniswap to trade DAI, USDC and USDT for Ethereum.

The market for Beanstalk’s BEAN stablecoin collapsed as a result of the attack and the token was down 86 percent at the time of writing.

Native Tokens Used to Drain Funds

Beanstalk has since reported that the flash loan on Aave enabled the attacker to amass a large amount of Beanstalk’s native governance token, Stalk. Through the voting powers granted by the tokens, the attacker was then able to pass a malicious governance proposal that drained all protocol funds into a private Ethereum wallet:

Some Stolen Funds Diverted to a Ukrainian Relief Wallet

Beanstalk’s smart contracts were audited, but the audit was completed before the introduction of the flash loan vulnerability. No information has yet been forthcoming on whether funds would be reimbursed to users. According to PeckShield, the attacker appears to have donated US$250,000 of the stolen funds to a Ukrainian relief wallet.

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Bitcoin Crypto News Regulation

Brazil Inches Closer to Passing Historic Bitcoin Bill

Brazil has edged one step further to regulating Bitcoin and cryptocurrencies. The South American country will be overseen by a more complete regulatory framework as different sectors of the government strive to pass an amended draft bill in the first half of this year.

Regulation of Bitcoin and other cryptocurrencies might come sooner than first thought as the draft bill creeps closer to law. Originally, there were two separate draft bills being discussed in parallel, but only one will keep advancing – the House Bill 4401/21.

First Round Approval for Legislation

The legislation, which has been the subject of talks in the Chamber of Deputies since 2015, has been approved in the first round of consideration. The Senate has attached itself to a different crypto-focused bill, which has already been granted approval by the Economic Affairs Committee of the Senate.

Senator Iraja Abreu and Deputy Aureo Ribeiro, two legislators and rapporteurs of the proposals, are drafting a unified text of the bill that will be sent to the full Senate for voting.

Senator Abreu has said: “I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful. The texts are similar and [have] converged into one.”

Abreu also pointed out that the president of the Senate, Rodrigo Pacheco, was expected to put the bill to a vote this month, adding: “By joining the projects together, we have accelerated the approval of this cryptocurrency milestone. There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adjusting Brazil to international agreements.”

Bitcoin Will Not Become Legal Tender in Brazil

The approval of the bill does not mean that bitcoin will be accepted as legal tender in Brazil. The proposed law would simply allow the Brazilian president, Jair Bolsonaro, to determine a federal entity responsible for regulating digital assets. Bolsonaro would either establish a new regulator or may delegate regulation to the nation’s Securities and Exchange Commission, or the Central Bank of Brazil.

Other Jurisdictions Attempting to Regulate Digital Assets

Earlier this week, Crypto News Australia reported that a former Blockstream executive had announced three jurisdictions that were set to make Bitcoin legal tender. Roatan in Honduras, Madeira in Portugal, and Mexico are in talks to make the cryptocurrency legal tender in its territories.

This is a very bullish sign as countries begin to see the benefit of adopting digital assets. A prime example is Ukraine, whose president Volodymyr Zelenskyy last month signed into law a bill that legalised the cryptocurrency market and established a more favourable regulatory framework for the war-torn country.

Categories
Australia Events Metaverse NFTs Sports

Cricket Australia to Launch Official NFTs of Memorable Moments

Taking its first official step into the space, Cricket Australia will launch an official range of NFTs marking some of the most memorable moments in Australian cricket, joining a boom industry which has already recorded US$11.8 billion in trading volume this year.

The NFTs will be available to own and trade under an NFT licensing agreement. Cricket Australia (CA) and the Australian Cricketers Association (ACA) have announced a multi-year partnership with Singapore-based collectibles platform Rario and NFT trading company BlockTrust, which will mint historic incidents in Australian cricket.

Cricket lovers globally can now own and trade NFTs of key events in the sport that took place on Australian soil. According to a tweet by Rario, the partnership will “give cricket lovers the opportunity to own a part of the sport they love and indulge in cricket NFT-based games in the Rario metaverse”:

Relive Australian Cricket History

As with all sports memorabilia, the value of NFTs is determined by demand, and there is certainly demand in a cricket-obsessed nation such as Australia. This partnership means that unique, digital versions of moments such as Steve Waugh’s Ashes hundred on the last ball of the day at the Sydney Cricket Ground in 2003, Peter Siddle’s Ashes hat-trick in 2010, and Ellyse Perry’s double century in 2017 will now be available to own and trade.

Fans of the sport are understandably excited by the news:

Environmental Concerns Bowled Out

NFTs have long been criticised for their associated high carbon emissions, but in a joint statement, Rario, CA and the ACA say they are “committed to a partnership that [will see] NFTs produced in a sustainable manner”. The cricket NFTs will make use of the Ethereum side-chain Polygon, which they say “translates to more eco-friendliness and considerably fewer carbon emissions”.

Cricket Australia CEO Nick Hockley said in a statement:

We are excited to step into the metaverse with our partners Rario, BlockTrust and the ACA for this historic deal, which will open up huge opportunities for innovation and fan engagement. The game’s deep connection with its past, the passion of our fans and the appeal of Australian cricketers to a global audience means the incorporation of NFTs is another way that fans can engage and be part of the sport. This is just the start and I have no doubt we will see enormous benefit for fans, players and the sport itself as we build this exciting partnership.

Nick Hockley, CEO, Cricket Australia

Todd Greenberg, CEO of the ACA, issued his own statement:

Once you begin to learn about NFTs you soon understand [that] the engagement possibilities between past and present players [and] fans are huge. We all look forward to bringing this program to life in the coming months with new and innovative concepts.

Todd Greenberg, CEO, Australian Cricketers Association

Cricket NFTs Are No New Idea

Although this collection of NFTs will capture memorable moments in Australian cricket history, it is not the first time the sport has entered the NFT space. Last year, Crypto News Australia reported how Aussie legend Adam Gilchrist would digitise cricket moments to NFTs. The world’s first cricket-based NFTs were also launched last year ahead of the T20 World Cup.

Categories
Australia Crypto News Cryptocurrencies Investing Surveys

Over 1 Million Australians Own Cryptos According to Recent Roy Morgan Survey

According to a study conducted by Australian research firm Roy Morgan, over one million Australians now own cryptocurrencies such as Bitcoin, Ethereum, Ripple, Cardo, Dogecoin and Shiba Inu.

The February survey investigated Australians’ investments and revealed that 5 percent, or just over one million Australians over the age of 18, now own at least one cryptocurrency. Over two-thirds, or 742,000 (69 percent), of Australian crypto investors are men, compared to only 332,000 (31 percent) who are women, indicating a massive gender difference when it comes to crypto investments.

Most Crypto Investors Are Younger Than 35

The study revealed that people under 35 were more likely to be holders of cryptocurrencies, with over one-in-10 people in this cohort. Participants over 35 were less likely to be invested in digital assets, but still made up 40 percent of the total investor market, including 296,000 aged 35-49 (28 percent of all investors) and 138,000 aged 50 and older (13 percent).

Cryptocurrency investors by age and gender. Source: Roy Morgan

Older Cohort Has Biggest Average Crypto Investments

Although they might be less likely to invest in cryptocurrencies, Australians aged 35 and older are a significant part of the crypto market in the country, given the average size of their investments.

The study revealed that participants aged 50 and older had the largest average crypto investments, averaging around A$56,000. The volume of investments in this cohort means the value of all crypto holdings of people aged 50 and up is around A$7.6 billion, higher than any other age group and accounting for 35 percent of the total market.

Although more inclined to invest in cryptocurrencies, Australians aged 18-24 only hold an average of A$2,600, making the total value of investments for this group just A$630 million, or about three percent of the total market valuation.

The market shares for Australians aged 25-34 and 35-49 were similar, with the former cohort averaging about A$18,200, while those in the latter group came in at A$21,600. Those aged 25-34 were more likely to invest in the market and thereby made up A$7 billion, or 32 percent, while those aged 35-49 owned A$6.4 billion, or 30 percent.

Gender Differences Are Significant

The analysis by gender revealed that men’s average investments totalled A$23,400, almost double those of women (A$12,800). This gender disparity shows that men hold 81 percent (A$17.4 billion) of the market, while women own just 19 percent (A$4.2 billion).

Total value of cryptocurrency investments by age and gender. Source: Roy Morgan

The results of this study are significant and indicate positive sentiment toward crypto adoption, given that Australia lagged in the most recent global ‘Crypto Awareness’ survey, although another 2021 survey revealed that most Australians still have no idea about cryptos or NFTs.

Categories
Australia Events NFTs

NFT Music Marketplace ‘Serenade’ Raises $6 Million Backed by Hugh Jackman

After launching an artist/fan-centric NFT platform last year, Australian music technology company Serenade has now announced its raising of US$6 million in a round of funding backed by several high-profile investors, including Australian actor Hugh Jackman:

Still Early Days For Music NFTs

The funding round was led by Bain Capital Ventures, with participation from AngelList, Boost VC, and others. Serenade was launched with the aim of allowing musicians to retain the copyright to their work. The platform allows artists to upload their music and mint it as an NFT, which can then be sold on the platform.

As the artists retain the copyrights, they can also set the price. Proceeds from sales on the platform are split between Serenade and the artist, with the company taking a 10 percent cut of each sale.

Serenade founder Max Shand has said the mission of the platform is to “enable artists to build closer relationships with fans while creating dynamic new revenue streams”.

Serenade has already collaborated with music bigwigs at the Brit Awards 2022. The result is the Genesis NFT collection, 13 NFTs that celebrate the Awards’ 13 winners:

NFTs are a new and exciting way for artists to monetise their work. Serenade provides artists with a simple and efficient way to mint and sell their NFTs, while also providing buyers with a one-stop shop for buying NFTs.

Hugh Jackman, actor

In the words of Serenade CEO and co-founder John Palfreyman, “We believe that NFTs are going to be a key part of the music ecosystem.” Echoing a comment made by A-list actor Hugh Jackman, he added: “They provide a new way for artists to monetise their work and connect with their fans.”

The seed funding will be used to grow the team at Serenade and launch new features on the platform. Although Serenade is still in private beta, it plans to launch publicly later in the year.

NFT Marketplaces Popping Up Left, Right, and Centre

As the NFT market continues to boom, many are trying to cash in on the craze while it lasts, and this has led to the proliferation of new NFT marketplaces. In January, Crypto News Australia reported on the launch of LooksRare, which has since exploded in sales volume. Even the New York Stock Exchange is considering getting on board the NFT train.

Categories
DAO NFTs Sports

WAGMI United DAO Completes Acquisition of Crawley Town Football Club

The crypto sports brand WAGMI United has acquired Crawley Town Football Club, but the “pioneering purchase” is already proving to be controversial among its fans.

They Shoot, They Score!

WAGMI United is now the first cryptocurrency company to own a football club after it announced the acquisition of the Crawley Town Football Club, based in West Sussex, England, via a press release. WAGMI – which stands for “We’re All Gonna Make It” – is a new brand that exists between the “intersection of crypto and sports”. WAGMI United last year failed in its takeover bid of another English club, Yorkshire’s Bradford City, which has aimed to rely on NFTs as an ownership model.

The group now says it wants to “empower fans to take a personal stake in telling their team’s story and shaping its future” at Crawley. Ziya Eren, the club’s chairman and owner, and chief executive Erdem Konyar are set to exit the board, with WAGMI co-founder Preston Johnson and Eben Smith taking over.

Johnson has said, “Crawley Town Football Club is a club with more than 125 years of rich history that we revere and respect. However, a conventional approach to ownership hasn’t worked and the club is losing hundreds of thousands of pounds while its fans suffer through year after year of uninspiring results on the pitch.

We’re going to shake up the status quo, try out some new ideas, and build a worldwide community of fans new and old that can be excited to cheer on the Red Devils together – stretching from West Sussex to anywhere in the world with an internet connection.

Preston Johnson, WAGMI co-founder

The pair say they want to harness the power of Web3 to expand the club’s global fanbase and open up new revenue streams, such as selling NFTs that give “fans” influence over the way the club operates.

Supporters of Crawley Town Football Club are, however, a little apprehensive and have taken to Twitter to express their reservations:

DAOs Try to Take Over Sport

This is not the first time a decentralised autonomous organisation (DAO) has tried to buy a sports club, though WAGMI has succeeded in its attempt. Earlier in the year, another DAO, ‘BuytheBroncos DAO’, tried to purchase US National Football League (NFL) team the Denver Broncos for US$4 billion.

Categories
CEEK VR Events Metaverse

Metaverse Token ‘CEEK VR’ Surges 100% Following Exposure at Grammy Awards 

CEEK VR (CEEK) has witnessed a growth spurt of 100 percent amid metaverse development after it received priceless exposure at last week’s Grammy Awards.

CEEK attracted the attention of many investors as it hosted a booth at this year’s Grammy Awards. Also contributing to the surge in price is that the project is constantly working towards trending concepts such as DeFi, NFTs, and the metaverse. CEEK aims to capitalise on these concepts by helping to enhance users’ experience but also contributing to the global adoption of blockchain technology.

CEEK Partners with Universal Music

CEEK is a developer of premium social, virtual and augmented reality experiences and its mission is to empower creators to generate new revenue streams by providing them with digital tools. CEEK connects fans and artists through its virtual world for long-term engagement.

The company helps athletes, musicians, digital content creators and event organisers to create fan experiences and monetise their work. CEEK has undertaken a partnership with major record company Universal Music, which grants it the right to conduct live performances with top-tier artists such as Lady Gaga, Katy Perry, Sting, and Ziggy Marley.

Contributing Factors to CEEK’s Growth

CEEK hit a daily high on April 7 as its 24-hour trading volume spiked 178 percent. At the time of writing, CEEK was trading at US$0.4465 according to data from CoinMarketCap. The surge in price is due to several reasons, including deeper integration with the BNB Smart Chain (BSC), various new cryptocurrency exchange listings, and getting featured in the gift lounge at the Grammys.

Along with Universal Music, CEEK has also collaborated with Apple, Meta Oculus, and Microsoft, three of the biggest names working on the development of virtual reality technology.

Could 2022 Be the Year of the Metaverse?

With growth akin to that of NFTs in 2021, it looks like 2022 will be the year of the metaverse. HSBC Bank has launched a metaverse fund for its wealthy clients in Asia, allowing them to invest in the project, though they are still not allowed to purchase crypto. Payments giant American Express has joined peers Visa and Mastercard in venturing into the metaverse and will explore Web3 applications while firmly planting itself in the space.

Categories
Bitcoin Crypto Exchange Crypto News Crypto Wallets Ethereum Lightning Network

Robinhood Unveils Plans to Support Lightning Payments for 2 Million Users

At this week’s Bitcoin 2022 conference, Robinhood announced the rollout of wallets to two million eligible users with further plans to integrate the Lightning Network, according to a blog post by the crypto broker.

Robinhood chief product officer Aparna Chennapragada announced that customers who have been waitlisted for the digital wallet can now send and receive cryptocurrencies. The wallet will not, however, support Ethereum-based services such as NFTs and ERC-20 tokens.

Lightning Strikes Again

The platform is also planning to integrate the Bitcoin Lightning Network to reduce the time and cost of transactions, along with their carbon footprint. It’s another win for the Lightning Network, which has grown parabolic with an additional US$70 million raised to bring stablecoins to the network earlier this month.

The wallet will not be available to users in the US states of Hawaii, Nevada and New York “due to local regulations”. Robinhood has been testing its digital wallet feature since September 2021, completing its first alpha transfer in November and launching a beta version for tens of thousands of users in January 2022.

The reaction from the Robinhood community has been mostly positive, though according to the firm’s FAQ, any NFTs or unsupported tokens sent to a Robinhood Ethereum address will be lost.

Categories
Australia Crypto News NFTs Sports

AFL Set to Launch NFT Collection with 20% of Revenue Going to the Players

In a goal kicked firmly between the posts for the code’s ongoing NFT adoption, the Australian Football League (AFL) has struck a unique revenue-distribution deal that could see players get 20 percent of the spoils from the sale of non-fungible tokens associated with the sport.

It’s a Goal for NFTs, the AFL and Animoca Brands

CEO Gillon McLachlan has revealed that the AFL has plans in place to team up with Hong Kong-based Animoca Brands, one of the world’s leading blockchain gaming and NFT studios, collectively worth more than US$5 billion.

AFL CEO Gillon McLachlan. Source: Fox Sports

McLachlan has also confirmed that a deal with the AFL Players Association will ensure that players receive a 20 percent cut of the revenue derived from the sales of official AFL NFTs.

And for all the fans out there still talking about the 1,000-goal milestone achieved by Sydney Swan Lance “Buddy” Franklin (pictured, below), there will be an NFT for that, and multiple other NFTs based around the March 25 event.

Buddy Franklin moment. Source: AFL

“There’ll be a Buddy 1,000 NFT,” confirmed McLachlan, adding: “The team is working on that at the moment. There’ll be lots of NFTs that come out of that because it was a pretty unique event. That was one that will have a lot of value.”

It looks like the Sydney star’s 1,000th-goal NFT will entail a range of different takes on his achievement, which could include animation or perhaps video footage.

“There’ll be one official NFT of him kicking that [1,000th] goal. Whether it’s animated [or not], there’ll be different versions of it,” McLachlan said. He also hinted that there will be plenty of other AFL NFTs to be sold at reasonable prices, and “some unique stuff that will be among some of the most expensive [NFTs] we do”.

AFL Approaches Mainstream Crypto Adoption

As Ben Simpson, CEO of Melbourne-based crypto research and education platform Collective Shift, has said, “I think we’re really starting to hit mainstream adoption in crypto and NFTs.” He pointed out that cryptocurrency companies now account for a significant percentage of the AFL’s major sponsors.

Two months ago, the AFL signed an A$25 million five-year sponsorship deal with Crypto.com, and the Australian digital assets exchange Swyftx also announced a major two-year partnership with the Brisbane Lions. Other AFL clubs, including premier Melbourne, the West Coast Eagles, Adelaide Crows, Sydney Swans and the Western Bulldogs, also have crypto sponsors.

“What is most exciting in my opinion about NFTs in sport is that the players can take a share of the revenue of all sales of those NFTs forever. Lance [Franklin] will earn a direct percentage cut from that 1,000th-goal NFT,” Simpson said. He added that in the past, only the sporting organisations or governing bodies took revenue and profits, but NFTs and smart contracts can enable a percentage of the revenues to be distributed to players.

Matt Willemsen, head of research at Collective Shift, spoke in a YouTube video about the revenue-distribution aspect of the deal:

Categories
Australia Investing Regulation

Former ASIC Chairman Calls for Urgent Australian Crypto Regulatory Clarity

Former Australian Securities and Investment Commission (ASIC) chairman Greg Medcraft has urged Australian regulators to join the crypto start-up race. He is joined by venture capitalist Mark Carnegie in pushing regulators to develop a plan that encourages digital asset technology and investment, according to the Australian Financial Review.

Sydney businessman Mark Carnegie shares his vision for a 'better society' to kickstart debate - ABC News
Investor, entrepreneur, Mark Carnegie. Source: ABC

Get On Board or Risk Losing Out

Australia is at risk of losing out on a multitrillion-dollar opportunity to generate revenue from companies in the digital asset sectors, business leaders have warned, after Britain released an ambitious plan to lure cryptocurrency players with tax and start-up incentives.

Medcraft and Carnegie have asked for a bipartisan approach in the face of elevated global competition to attract crypto start-ups building on blockchain technology. Their comments come soon after ASIC warned cryptocurrency companies that they would be held to the same standards as traditional finance companies.

Medcraft and Carnegie were speaking ahead of this week’s Australian Financial Review Cryptocurrency Summit in which Medcraft, a personal investor in Ethereum, the network that powers decentralised finance (DeFi) and NFTs, and Carnegie, who has invested in various crypto businesses from Singapore, said Australia risked falling behind other nations putting in place initiatives to attract players in the digital asset sector.

It’s a global competition.

Greg Medcraft, former ASIC chairman

EU Is Setting the Pace

Medcraft helped lead the digital asset policy at the OECD in Paris for almost four years before returning to Australia. As we know, the European Union is preparing a comprehensive regime for digital assets including cryptocurrencies in its Markets in Crypto Assets (MiCA) legislation. Medcraft added: “What is happening is governments around the world are realising you want to have an enabling environment to be the centre for crypto technology.”

Medcraft celebrated the landmark crypto plan announced by Britain’s Chancellor of the Exchequer, Rishi Sunak. Among the reforms, Britain plans to regulate stablecoins – digital currencies whose value is linked to fiat money – to pave their way for use in the country as a recognised form of payment.

“This area is so damn dynamic,” Medcraft said. “Do we want barriers or do we want encouragement? What is increasingly happening is a comprehensive government approach.”

Australia may not be progressing according to the pace Medcraft and Carnegie expect, but there is some action being taken by Australian regulators to reform its cryptocurrency plan.