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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Crypto News Cryptos Google Scams

Google Report: 86% of Hacked Cloud Accounts are Used to Mine Crypto

According to the Threat Horizons report for November released by Google, the majority of recently attacked accounts on the search engine’s Google Cloud Platform (GCP) service are being used to mine cryptocurrencies. Hackers are also accessing cloud accounts to find new targets and to host malware and phishing scams.

86% of Hacked Accounts Used for Illegal Crypto Mining

The report indicates that “malicious actors were observed performing cryptocurrency mining within compromised Cloud instances”. It adds:

“Of 50 recently compromised GCP instances, 86 percent of the compromised Google Cloud instances were used to perform cryptocurrency mining, a cloud resource-intensive for-profit activity, which typically consumed CPU/GPU resources, or in cases of Chia mining, storage space.” The remainder of the hacks included ransomware and phishing scams.

Poor Security Opens the Doors For Scammers

In nearly 75 percent of all cases, malicious actors were able to access the Google Cloud by taking advantage of users’ poor security practices, mostly via customers’ weak passwords or absence thereof. Hackers were also able to gain access through vulnerable third-party software. When hackers used accounts to mine cryptos, mining software was installed within 22 seconds of the attack, leaving manual intervention useless.

The team at Google made recommendations to prevent such attacks, with guidelines including the use of two-factor authentication and implementing Google’s “Work Safer” product.

Scams on the Rise

Due to the unregulated nature of the market, exploits in the digital asset space remain common. Earlier this month, Google issued a “Google Ads Scam Alert” after US$500,000 was stolen using fake crypto wallets. Users of crypto swap platform PancakeSwap and MetaMask and Phantom wallets had been targeted in a phishing scam when hackers stole funds while users tried to install the wallets. Scammers used Google Ads to divert users to fake crypto wallets.

Also in October, Google’s Threat Analysis Group (TAG) had to fend off numerous hackers after they attacked the accounts of various YouTubers, hijacking and repurposing the accounts to run crypto scam ads.

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Blockchain Crypto News Ethereum NFTs Play to Earn Solana

First Projects Set to Launch on ‘StarLaunch’, Solana’s IDO Launchpad

The creators of CardStarter have delivered “StarLaunch”, an initial DEX offering (IDO) launchpad for the Solana (SOL) blockchain, and new Solana based projects are ready to launch.

StarLaunch is an incubator for blockchain projects built atop Solana, which aims to connect them with their community of backers. As the first insured IDO launchpad and incubator for Solana blockchain projects, its stated goal is to connect its “community of backers with trusted and thoroughly vetted Solana blockchain projects”.

What is an IDO?

An initial DEX offering platform, or IDO platform, is one where crypto projects are listed and work as an investor pool. Investors can then invest in projects listed on the launchpad with the IDO model, whereby the crypto coin or token is launched via a decentralised liquidity exchange to fund the projects.

Think of an IDO as a sort of decentralised and permissionless crowdfunding platform, which now opens up a whole new way of fundraising in the cryptosphere.

About StarLaunch

starlaunch.com website

The StarLaunch model could be compared with that of Polkastarter which has been successful at crowdfunding Polkadot-based projects in a similar way over the past year or so. Check out the StarLaunch Slide Deck to learn more about the project.

StarLaunch promotes these three key aspects:

  • Selective listing – employing stringent and formulaic project vetting.
  • Insurance fund – offering insurance to protect its community. Your IDO investments are insured for the first three months after staking.
  • Propulsion program – offering advisory support for its approved projects.

For comparison, and to see what sets StarLaunch apart, this table will prove insightful:

Comparison between StarLaunch and CardStarter. Source: StarLaunch

The $STARS token itself has seen quite an increase, rising from under US$3 to more than US$15 within the past week or so.

STARS/USD – source coinmarketcap.com

How to Participate

Disclaimer: Before you get started with these new projects and tokens, please understand that you may lose all your capital. DeFi projects get rugged all the time and some investors lose everything.

In order to get started with StarLaunch, stake your $STARS tokens to generate $N2H4, which is the token used to participate in the initial IDOs that launch on the platform.

So a typical process for option 1 might look like this:

  1. Do your own research
  2. Make your plan
  3. Complete KYC on starlaunch.com
  4. Buy SOL (from your exchange or such)
  5. Send SOL to your Solana Phantom wallet (or such)
  6. Use Raydium.io to swap SOL into STARS (or such)
  7. Go to app.starlaunch.com and stake your STARS
  8. When the IDO launches, you can stake your $N2H4 into the project

There is a more detailed explanation of everything on the Starlaunch blog post.

IDOs Set to Launch Soon

It has been announced that MonkeyBall, a SOL-powered play-to-earn game, has been selected as the launch partner of StarLaunch, courtesy of the game’s large community, investor backing and strong fundamentals, all of which cement it as a top play-to-earn game in the future.

We’ll keep you updated on any other IDOs set to launch on the platform as soon as we find out about them.

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Blockchain Crypto News Ethereum Gaming Hackers NFTs Scams

Blockchain Gaming Company ‘Animoca’ to Repay Users 265 ETH After Fake NFT Discord Hack

Hong Kong-based gaming software and venture capital firm Animoca Brands has reassured victims of the recent hack of its upcoming “Phantom Galaxies” game’s Discord Server that the company intends to cover their losses.

Losses incurred totalled 265 Ether (ETH), worth about US$1.1 million. The details of the reimbursement have yet to be announced, according to the company’s website.

Fraudulent Minting Leaves Users Out of Pocket

The “Phantom Galaxies” game, which is being developed by Animoca Brands’ Australian-based subsidiary, Blowfish Studios, was hacked at around 3am on November 19. The hack involved stolen money in a fraudulent non-fungible token (NFT) sale on Discord.

The hack involved 1,571 fake minting transactions over the course of three hours. According to Animoca, there was no evidence that smart contracts were compromised, and no money was stolen from the game, its developer, or its publisher. Hackers directed users to a website charging users a 0.1 ETH fee, which then sent the funds to the hackers’ Ethereum address.

The Phantom Galaxies Discord server has about 94,000 members to date. Animoca Brands has said the method of compensation for their lost ETH will be determined following discussions within the Phantom Galaxies community. Both Animoca and Blowfish took to Twitter to apologise to their users:

Hacks and Scams on the Rise

Hacks on Discord are becoming increasingly common. Similar to this hack, earlier in the year MetaMask wallet was hacked for US$10,000 by a deceptive Discord member. One user lost about US$10,000 from their MetaMask Wallet at the hands of a scammer in Discord using a fake WalletConnect app.

Last month, Crypto News Australia reported on a 17-year-old who sold fake NFTs in a US$500,000 scam. Iconic Sol, an NFT project built on the Solana (SOL) blockchain, had apparently rugged investors after failing to deliver the promised NFTs and disappeared with US$500,000.

The teenager had promised to deliver 8,000 NFT artworks on the project’s Discord channel, and some of the tokens were supposed to be available in a presale on October 1. A total of 2,000 NFTs were up for grabs for a price of 0.5 SOL each, and many of them sold out quickly.

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Bitcoin Crypto News Gaming Metaverse

Pokémon Go Developer Releases Augmented Reality Game Where You Can Earn BTC

US software company Niantic, best known for creating augmented reality (AR) mobile games such as Pokémon Go, has revealed it has partnered with bitcoin (BTC) rewards company Fold. In announcing their partnership in a November blog post, the companies jointly revealed a new AR game that will allow users to earn BTC in the metaverse.

Earn BTC By Exploring the Metaverse

Fold, in partnership with Niantic, will forge and develop a new game called Fold AR, which will be available for users leveraging the Fold mobile app. The game will allow users to earn BTC and in-app benefits by exploring the metaverse.

According to Fold chief executive officer Will Reeves, “This is the easiest, most fun way to get your first piece of bitcoin … Anyone can use our app to earn bitcoin and other rewards by exploring the world around them. For us, it’s always been important to make participating in the bitcoin economy easy for anyone, regardless of education or technical expertise.”

What is a Metaverse?

The partnership has said that it intends to “forge an alternative version for the metaverse – one that promotes human freedom and happiness through bitcoin and fun”. The term “metaverse” was coined by American science fiction writer Neal Stephenson to describe a “dystopian future where technology dominates the human experience”.  

Fold, which is focused on BTC and the metaverse as a vision for the internet, intends to build a place where technology can unleash human freedom and happiness.

Rewards vs Risks

The team has started rolling out a limited beta of the experience in the Fold App. In order to get started, users open the “Play” tab in the Fold App to discover BTC and other hidden rewards around them. Every 10 minutes, a new block appears somewhere around the user and if opened triggers an explosion of rewards.

Rewards include satoshis, extra spins to get more rewards, time extensions to remain in the game longer, and an orange pill that protects players against harmful surprises. Users should beware as “shitcoins and poison pills” are lurking, threatening to take away hard-earned BTC. Fold AR is joining a host of methods of earning free BTC.

Fold AR metaverse. Source: Fold App

Have Fun While Getting Rich

While the term “metaverse” is gaining a lot of traction, metaverse tokens are soaring amid the buzz as they allow users in the virtual world to add real-world value.

AR has paved the way for gamers and users alike to engage in a virtual world while earning real-world money at the same time. The future is sure to be in the metaverse.

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Crypto Art Crypto News NFTs

‘NFT’ Named Collins Dictionary Word of the Year

In announcing its annual 10-word shortlist in a November 24 blog post, Collins Dictionary has officially declared “NFT”, albeit an acronym, as its word of the year. “NFT” surpassed the likes of “crypto”, “metaverse” and “double-vaxxed” to claim the top spot.

2021: The Year of the NFT

Although technically an abbreviation, “NFT” is accepted shorthand for non-fungible token. Collins defines an NFT as “a unique digital certificate, registered in a blockchain, that is used to record the ownership of an asset such as an artwork or a collectible”. NFT is a noun that describes “an asset whose ownership is recorded by means of a non-fungible token”.

Collins continued to explain its view of what NFTs signify:

A chunk of digital data that records who a piece of digital work belongs to … what’s really captured the public’s imagination around NFTs is the use of this technology to sell art.

Collins Dictionary

This has truly been the year of the NFT, with the assets amassing almost incomprehensible amounts of money and enticing a wave of celebrities, influencers and Web 3.0 fanatics to engage in the space. The market surged to new heights when it reported a trading volume of US$10.67 billion in Q3 alone – a 700 percent increase over Q2 2021.

Total sales for collective and art NFTs have surpassed US$7.4 billion for Q4, while art and collectible sales respectively generated US$17.8 million and US$55.5 million in comparison.

Collins cited infamous NFT artist Beeple as a key contributor to the space and made specific reference to his landmark magnum opus, “Everyday: The First 5000 Days”. The piece was auctioned off for a staggering US$69 million in March this year.

Other noteworthy crypto projects such as CryptoPunks and Bored Ape Yacht Club have also sold for unthinkable amounts of money and the avatars have become a “flex” for celebrities on Twitter. The likes of Quentin Tarantino and Martha Stewart have joined the race to launch their own set of NFTs, along with big brands such as Nike and Vodafone.

Scepticism Over NFTs is On the Rise

Although the NFT market has boomed in recent times, many are starting to doubt whether its massive upside can be sustained. Gary Vaynerchuk, aka Gary Vee, anticipates a bear market ahead for NFTs. He posits that too much short-term greed will likely result in a market downturn and a significant pullback in NFT valuation. Nonetheless, he has stated that he remains bullish on NFTs.

Many agree with Vee and consider the market is overheated. SynFutures is now looking to address concerns over the purpose of NFTs by launching NFTures, a product that will allow users to short the future prices of NFTs.

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Bitcoin CBDCs Crypto News Ethereum India

India to Ban All Cryptocurrencies But Its Own

In a shocking plot twist, India will ban all private cryptocurrencies bar a select few in a bill seeking to regulate digital currencies announced by parliament.

The Indian government will allow a limited number of cryptos to promote their underlying technology and uses, and the country is set to launch its own digital currency in December following “serious concerns” regarding private cryptos.

An estimated 15 to 20 million Indian crypto investors will be affected after the government announced it was looking to ban most private cryptos, except those it will allow according to a legislative agenda. Bitcoin and Ethereum are among the digital assets set to be banned as legislative bodies cite “serious concerns” surrounding cryptos in general.

‘Financial Terrorism’ a Symptom of Unregulated Cryptos

Indian Prime Minister Narendra Modi has said countries should work together to ensure the safety of cryptos so they do not “end up in the wrong hands”. Modi has also claimed that the unregulated nature of digital assets makes them prone to money laundering and financial terrorism.

Through the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, India looks to restrict the domestic marketing and advertising of cryptos. In a country where many well-to-do citizens have traditionally turned to gold as an investment, the new ban will see some 15 to 20 million investors no longer able to go the crypto route as an alternative.

One Indian crypto user took to Reddit to express his dismay at the situation in detail:

I am an Indian and I am ashamed to admit it today! from CryptoCurrency

Like many others, the country has fallen on difficult times during the Covid-19 pandemic and is struggling in its fight against the virus. Australian cricketers Pat Cummins and Brett Lee have stepped in to help, each donating a generous amount of money. Lee turned to cryptos to fund his donation, giving one bitcoin to Crypto Relief, which went towards boosting the oxygen supply for Covid patients on the subcontinent.

India to Pilot CBDC in 2022

The Reserve Bank of India (RBI) is looking at the feasibility of a Central Bank Digital Currency (CBDC) and may launch one in the upcoming fiscal year. The CBDC is a digital derivative of a legal tender issued by a nation’s central bank.

Yet many are raising concerns regarding India trying to make its own digital currency that will be held by the reserve. Arguments are being put forward such a currency will defeat the entire purpose of cryptos.  

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Crypto News DeFi NFTs

Capital Raising May Have Changed Forever as New DAO is Formed to Buy an NBA Team

Another decentralised autonomous organisation (DAO), Krause House, is hot on the heels of ConstitutionDAO, though aiming to buy something a little bit more extravagant – a National Basketball Association (NBA) franchise. The leaderless internet group is aiming to raise 1,000 ether (ETH) in the hopes to pool enough money to buy an NBA team, according to its website.

Only One Goal in Mind

Krause House, a community-run internet group named after late Chicago Bulls manager Jerry Krause, launched earlier this year and has only one goal in mind, that of buying an NBA team. The DAO began its funding drive last week by selling non-fungible tokens (NFTs). Thus far, the DAO has successfully raised 411 ETH, or about US$1.7 million. The group hit its goal of 200 ETH in the first 15 minutes of launching the sale via Mirror:

Krause House contributor Adam Soffer said: “I’ve been following the news around ConstitutionDAO, and it occurred to me there’s a high probability a DAO will attempt a bid on a professional sports team within the next 10 years.” He added: “I tweeted this and someone responded, ‘There’s a DAO for that’, and pointed me to Krause House DAO.”

DAOs offered them a solution. The co-creators have said they have both been involved in crypto since 2017 and were “very excited” by what DAOs could offer them. To date, more than 1,300 people have joined the Krause House Discord server. The duo is quoted in saying:

We decided to create a DAO focused on achieving our lifelong passion, and it turns out a lot of folks have the same dream too.

Krause House was co-created by friends Flex Chapman and Commodore (both opted for pseudonyms) who had dreams of playing in the NBA as children but were unable to do so. They later instead readjusted their dream to owning a team. It comes, however, at a notoriously astronomical price. In December 2020, the Utah Jazz team sold for US$1.6 billion and the Brooklyn Nets for US$2.35 billion in August 2019.

NFT Craze Drives Fundraising

In order to raise the vast amounts of money needed to realise the dream, Krause House is selling NFTs in three membership tiers:

Three NFT membership tiers available for purchase. Source: krausehouse.mirror.xyz

Courtside is selling at 10 ETH apiece, Club Level at 1.0 ETH and Upper Level at 0.1 ETH apiece. Each of the three different tiers grants different levels of access to $KRAUSE tokens. Additionally, a limited-edition NFT will be awarded to the top three donors of the campaign.

DAOs Generate Astronomical Amounts of Money

DAOs are showing us exactly what a community of people can do when they choose to achieve a collective goal. Krause House is on its way to raising some serious capital, following in the footsteps of ConstitutionDAO’s US$47 million.

Earlier this year, Australian trading platform Tracer DAO managed to raise US$4.5 million in a strategic round of funding, backed by various cryptocurrency companies. Tracer is an Ethereum-based decentralised finance (DeFi) protocol that introduces a derivatives marketplace, which is owned by a DAO.

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Blockchain Crypto News Ethereum

Wall St Prevails as ConstitutionDAO Fails in Bid to Buy US Constitution

Crypto group and decentralised autonomous organisation (DAO) ConstitutionDAO has been outbid in its effort to buy a rare, first-edition copy of the United States Constitution at auction house Sotheby’s, as announced on Twitter. The community had pulled together US$47 million worth of ether (ETH) but was ultimately beaten by Citadel founder Kenneth Griffin.

Wall Street Wins Again

ConstitutionDAO was born less than two weeks ago yet managed to raise over US$47 million from its 17,000 contributors. Griffin, however, won ownership of the historic document after a successful bid of US$43.2 million, a Sotheby’s record. Griffin intends to lend his newly won copy to an Arkansas art museum.

Although the group had come in on a bid of US$41 million, it was unable to beat Griffin’s bid due to hidden expenses such as transport and preservation costs, and a Sotheby’s auction fee of 13.9 percent. Still, the loss has not overshadowed the on-ramping of swaths of people into crypto.

DAOs were recently legally recognised as business entities in the US state of Wyoming. The ConstitutionDAO not only managed to raise an astronomical amount of money in a very short timespan but also took the internet by a meme storm:

But What About the Money?

Although it lost the bid, the question now stands, what happens to the money? Since its inception, ConstitutionDAO has maintained that if it lost the auction, contributors would be refunded if they had so requested. However, many of the donors were new to the Ethereum ecosystem and did not realise the network’s high gas fees meant that nobody would have their full donation returned.

The community announced it would give donors a choice – either receive refunds or remain in the DAO and receive a new “We The People” governance token, or make a decision later. Donors choosing to remain can vote on governance matters in the future.

The Community Stands Together

This is a prime example of what the crypto community can do when it stands together. When popular Tezos-based marketplace Hic et Nunc discontinued its services last week and its founder stepped back, the community banded together to transition the marketplace into a DAO.

As it stands, in Australia DAOs are currently construed as partnerships or unincorporated associations, but The Digital Law association is looking to change that. Despite DAOs gaining traction in Australia, they are not recognised as legal entities as they have been elsewhere.

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Crypto News Events NFTs Sports

NFL Launches NFT ‘Virtual Tickets’, Potential Future Trend in Sports Ticketing?

The US National Football League (NFL) is now attaching non-fungible tokens (NFTs) to its tickets, adding them as “virtual commemorative tickets” that will be automatically sent to fans’ Ticketmaster wallets moments after attending live games.

NFL Makes Plays into the Cryptosphere

The NFL has officially launched NFTs to replace ticket stubs for its fictures, at least for the remainder of matches this year. The league announced that fans who attend games through to the end of 2021 will be able to receive a “virtual commemorative ticket” (VCT) as an NFT in a Ticketmaster digital wallet. Virtual tickets will be live on the Polygon network.

The first VCT game took place on November 7 when the 49ers played the Cardinals, and the next event is scheduled for Thanksgiving for the Detroit Lions/Chicago Bears match. The announcement of NFL NFTs comes just two months after the league prohibited teams from selling NFTs and engaging in sponsorships from crypto trading firms.

Chicago Bears NFT. Source: NFL Commemorative Tickets Website

Some Users Critical of Download Format

NFT club business development senior vice-president Bobby Gallo has said:

Leveraging the emerging world of NFTs is a new and exciting way for us to create additional value and to further engage with fans who attend select games by providing a virtual commemorative ticket. There is no better time than the upcoming holiday season to kick off this fun and engaging fan experience, starting with the Chicago Bears and Detroit Lions Thanksgiving Day matchup.

For fans to claim their NFTs, they need to have bought their match tickets through one of the licensed NFL Ticketing Network vendors – either Ticketmaster, SrubHub, SeatGeek, or a team’s corresponding ticket office.

However, some users are not entirely happy with the download format of NFL NFTs. Sportswriter Jacob Feldman took to Twitter to express his irritation:

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Blockchain Crypto News NFTs Tezos

Shutdown Tezos NFT Marketplace Revived by Its Community, Begins Transition to DAO

After popular Tezos non-fungible token (NFT) marketplace Hic et Nunc shut down its services last week, founder Rafael Lima stepped back and the community banded together to transition the marketplace into a decentralised autonomous organisation (DAO).

Community Bands Together

Lima took to Twitter to explain that the marketplace’s services were now “discontinued” and a message sharing Hic et Nunc’s smart contract was posted to social media, fuelling speculation among users.

Only days later, the Hic et Nunc marketplace community has banded together around a clone of the original marketplace named “Hicetnunc.art”, after its founder opted to leave the project in the hands of the community. As it stands, Hic et Nunc is again fully operational and the community is transitioning the marketplace to a DAO.

The ecosystem is forging into the future in a transparent, open process, and is in a first-of-its-kind Web3 transition from platform ownership to community ownership.

When Hic et Nunc discontinued its services, it did not entirely go away. The ecosystem is built in open source by default, and metadata, sale data and image files were stored on the Tezos blockchain and InterPlanetary File System (IPFS) directly, not on the marketplace’s website.

Hours after the website was discontinued, over 50 mirror sites went live where artists were able to continue browsing, minting and collecting NFTs on Hic et Nunc.

Fees Lowered to the Limits

Following the speculation surrounding the entire ordeal, Lima lowered the platform fees to one percent. Although he remains the founder and developer, Tezos infrastructure-provided TezTools has become the caretaker of the original Hic et Nunc smart contract until a DAO is set to take over the operations.

Although Hic et Nunc is still a very contentious topic of conversation, and it is now a community-driven project, many believe a name change would be appropriate if Lima were to leave the project completely.

Would you agree?