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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Blockchain Crypto News Ethereum NFTs Tezos

The Grammy Awards in January 2022 Will Use NFTs as Awards

The 64th annual Grammy Awards are set to take place in January 2022, and it has been announced that NFT collectibles will be awarded as prizes.

The digital tokens will be produced in a collaboration between the US Recording Academy and NFT platform OneOf, backed by famed music producer Quincy Jones.

Grammys Goes Green for NFTs

Built on the Tezos blockchain, OneOf is hailed as an environmentally friendly NFT platform specifically designed with the music industry in mind. The platform does not charge artists and creator partners any minting fees to create NFTs, and claims to use 2 million times less energy than other blockchains such as Ethereum, which is the network utilised by most NFTs.

The platform also lowers the barrier to entry for fans by accepting debit and credit cards.

At the moment, NFTs do not offer the best user experience in that they are expensive and the only scaling solutions available compromise on security. This is the reason why more environmentally friendly initiatives are needed. Last month, Sydney-based tech business Immutable raised US$60 million for an eco-friendly NFT games platform.

Academy Scholarship Fund

According to the Recording Academy, the collection will include digital collectibles in a similar concept to what World Wrestling Entertainment (WWE) now offers its fans. The Academy added that a portion of the proceeds from NFT sales will go towards its scholarship fund.

According to Recording Academy co-president Panos Panay:

As an academy, we are always looking for ways to help artists discover new forms of creative expression while also creating new ways of income generation and ways for fans to interact with the artists that they love. OneOf shares that vision, and we are proud to work with a sustainable NFT company.

Panos Panay, co-president, Recording Academy
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Australia Crypto News Hackers Ransomware Regulation Scams

Australian Police Seize $1.6 Million of Cryptos Acquired Through Stolen Netflix Accounts

The Australian Federal Police (AFP), in collaboration with the US Federal Bureau of Investigation (FBI), has uncovered cryptos and cash to the value of A$1.66 million during an investigation of a convicted Sydney-based hacker. The man was arrested and subsequently ordered by the Supreme Court of New South Wales to forfeit the ill-gotten gains to the Commonwealth, according to the AFP.

Largest Commonwealth Forfeiture of Cryptocurrencies

Evan McMahon, 23, who was convicted earlier this year of selling stolen Netflix and Spotify subscriptions, has been ordered to hand over proceeds in the form of cryptocurrencies and cash to the value of A$1.66 million, of which A$1.2 million are cryptos – the largest forfeiture of cryptos to date in Australia.

The court was told McMahon conspired with US accomplice Samuel Joyner to steal the log-in details and passwords of streaming service customers, subsequently selling them online at a cheaper rate. McMahon pleaded guilty to various offences in October 2020 and was sentenced to two years and two months’ imprisonment in April 2021.

The investigation began in 2018 when the FBI passed on information to the AFP about an account generator website called WickedGen that sold stolen account details for online subscription services such as Netflix, Hulu and Spotify.

Following sentencing, the AFP-led Criminal Assets Confiscation Taskforce (CACT) obtained restraining orders over cryptos, PayPal and bank accounts held in false names, which were suspected to be controlled by McMahon.

Australia’s Home Affairs Minister Karen Andrews says the funds will be redistributed to support crime prevention, community safety-related initiatives, and law enforcement. Andrews added:

Good work by the AFP has seen a criminal stripped of their ill-gotten gains, and this money redirected to enhancing the safety and security of communities right around Australia.

Karen Andrews, Minister for Home Affairs

AFP Clamps Down on Cryptos

Many criminal organisations have turned to cryptos in an effort to hide their profits, but authorities are now moving to seize cryptos linked to illegal activities.

In the UK, police recently seized 48 bitcoin from a 16-year-old who ran an operation that scammed thousands of victims after extracting their personal details via a copycat website of gift voucher platform Love2Shop.

In Australia, the AFP has executed a series of an initiatives designed to decentralise organised criminal syndicates away from illegally obtained profits by confiscating cryptocurrencies, designer items, homes and luxury vehicles.

The government recently passed amendments to the Surveillance Legislation Bill, granting the AFP and Australian Criminal Intelligence Commission (ACIC) new powers to surveil, intercept data, and also alter data online.

The Australian government has also mapped out plans to permit the seizure of cryptos amid a 15 percent increase in ransomware attacks. The “Ransomware Action Plan”, released last month by the Department of Home Affairs, outlines several measures in an effort to deter and punish cybercriminals. Part of the plan includes confiscating illicit cryptos.

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Bitcoin Crypto Exchange Crypto News Investing Market Analysis Markets

Bitcoin Slips to $58,000 Amid $1 Billion Liquidity Flush

After hitting new all-time highs, a sharp market correction and a US$930 million “liquidity flush” has knocked bitcoin back to US$58,000, according to data from analytics firm Bybt.

Due to a price drop in “digital gold” and the overall crypto market in the past 24 hours, a series of liquidations was triggered across exchanges as traders were unable to meet margin requirements in their leveraged positions.

The total value of liquidations reached more than US$930 million, with 87,135 traders liquidated. The largest single liquidation order happened on Bitmex-ADA, with a value of US$3.85 million.

Total liquidations observed. Source: Bybt

Recent History Repeats

Crypto analyst and investor Justin Bennett took to Twitter to explain to his followers that despite the dip, bitcoin seems to be primed to follow the same pattern as it did in September:

Bennett went on to say that he believes the worst is probably over for the altcoin market, and even if bitcoin sees further price drops, altcoins will likely not be greatly affected. At the time of writing, the price of bitcoin was sitting at US$61,165 according to data from CoinGecko.

Bitcoin Dump or Short-Term Flushout?

Although bitcoin’s price is trending down amid signs of excess leverage and greed in the market, many are wondering whether this is it, or is it just the beginning of a more extensive correction needed to liquidate the high leverage recently exercised by retail investors?

All signs seem to point to the correction being short-lived, with bitcoin having stabilised. If all goes well, we should see a recovery take place, but only once leveraged investors have been flushed out.

William Clemente, lead insights analyst at Blockware Solutions, took to Twitter to share his view:

Just Buy the Dip!

The first US-based Bitcoin exchange-traded fund (ETF) has been greeted with mixed emotions. All things aside, this is certainly a massive move in the right direction for Bitcoin and crypto adoption.

Overall, the picture for the bitcoin price is bullish. Over the past five months, about 70 percent of the total supply of bitcoin has not moved, indicating that the majority is held by long-term holders or HODLers.

The market has also seen traces of whales, with Bitcoin addresses with 100 to 1,000 BTC accumulating over 85,700 BTC in a two-week period. Along with an increased demand for bitcoin, a supply squeeze is being created that looks bullish in the long term.

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Crime Crypto Art Crypto News NFTs Scams

Adobe Photoshop to Add ‘Prepare as NFT’ Feature to Help Verify Art Authenticity

An unfortunate side-effect of the booming non-fungible token (NFT) market is that scammers are grabbing the opportunity to exploit it. In an effort to combat NFT art theft, Adobe will soon launch a “prepare as NFT” option to its Photoshop software.

Adobe’s Content Credential is a system built into Photoshop that can assist in proving that the person selling an NFT is the one who made it. The system will allow NFT sellers to link the Adobe ID with their crypto wallets, thereby allowing compatible NFT marketplaces to show a verification certificate to prove the art is authentic.

Fighting Theft in an Exploitable Market

Art theft has become rife in the NFT industry, chiefly because anybody can mint an NFT – even if they don’t own the content’s copyright. As it stands, there is not much the blockchain can do to stop this. Earlier this month, a 17-year-old 3D artist promised to deliver 8,000 NFT artworks but disappeared with US$500,000, leaving investors with the rug pulled right out from under them.

To help prevent similar events, Adobe’s authentication system is designed to counter an otherwise highly exploitable market. Scott Belsky, Adobe’s chief product officer, revealed in a recent Megaphone interview that the new feature will preview by the end of October.

The Content Credential attribution data will live on an InterPlanetary File System (IPFS), a decentralised method of hosting files where a network of people, rather than a single company or entity, is responsible for safeguarding data and making it available.

According to Adobe, NFT marketplaces such as Rarible, OpenSea, KnownOrigin and SuperRare will be able to integrate with its attribution data system.

To further enhance NFT copyright security, Crypto News Australia recently published a guide to the best 10 NFT websites to buy digital collectibles.

This system doesn’t make it harder to mint an NFT of media you don’t own the rights to, but it could make that NFT less attractive to the market.

Scott Belsky, chief product officer, Adobe

While Adobe concedes that it is still possible to click on an existing image of an NFT and mint it again, and that this may still fool buyers, it says its new system at least provides a means to prove that if you are selling an NFT, it is not stolen.

Twitter Gets on the Verification Train

Twitter recently announced it would be rolling out Bitcoin Tips, but is also looking into plans to integrate NFTs into its workings. The social media giant has said that it intends to “explore NFTs for authentication”.

According to Twitter executive Esther Crawford, “it’s a way to support creators making this art with a stamp to demonstrate authenticity”, and that “by allowing people to connect their bitcoin wallets, they can track and showcase their NFT ownership on Twitter”.

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Crypto Art Crypto News Events Investing NFTs

Why Are Buyers Forking Out $7 Million for NFTs Not Yet Minted?

Non-fungible token (NFT) investors have piled US$7 million into Tyler Hobbs’ “Incomplete Control” NFT collection, without being able to view them. Participants poured money into an auction to stand a chance to win one of 50 Golden Tokens, which will grant them ownership over unminted NFTs.

Yes, you read that right. Investors have put US$7 million into a Dutch auction that has sold 50 tokens to confer them ownership of NFTs they have not yet been able to view, and that will only be minted in December this year.

The artist behind the popular NFT series “Fidenza”, Hobbs will soon launch 100 one-of-a-kind NFTs in his latest collection, “Incomplete Control”, from December 9-13 at Bright Moments Gallery in New York.

NFT Madness Scales New Heights

On October 22, fans of Hobbs contributed 1,800 Ether (ETH), worth an estimated US$7 million, in exchange for 50 of the 100 “Golden Tokens”, which will grant holders ownership rights to one of the NFTs that will only be minted during the exhibition.

The Golden Tokens were sold through a Dutch auction hosted by Mirror Protocol that lasted only 90 minutes. Each token was priced at 500 ETH, scheduled to reduce every five minutes until it reached 5 ETH. All tokens sold were priced between 30 ETH (about US$120,000) and 80 ETH (about US$320,000).

The 50 remaining Golden Tokens will be randomly distributed on November 5 to 50 wallets of those who currently hold works from the artist’s earlier series, “Fidenza”, or the “CryptoCitizens” NFT projects. Owners who receive the tokens will be able to buy a 15 ETH “Incomplete Control” NFT at a 50 percent discount.

According to Hobbs, this new collection reflects the theme of control in the analogue and digital worlds. On his website, the artist says:

Every work takes a certain amount of time to achieve impact, another length of time to achieve understanding, and a further length of time to reach exhaustion. The forces of chaos and entropy give the natural world a certain warmth, and there are patterns and lessons there that we can use. I like to introduce these elements into the digital world, and Incomplete Control continues that work.

Tyler Hobbs

Do You Think the NFT Market is Overheated? Then Short It!

Many are starting to think the NFT market is overheated, with some NFTs fetching absolutely ridiculous amounts of money. Recently, an EtherRock, a simple grey and black illustration of a rock, sold for over US$100,000.

If you, like many, are sceptical as to the longevity of this craze, Singapore-based decentralised derivatives exchange SynFutures is launching NFTures, a product that will allow its users to short, or bet against, the future prices of NFTs. Currently, the only way to derive profit from NFTs is by buying or selling them, but SynFutures is looking at ways to change this.

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Australia Crypto News Melbourne NFTs Victoria

Melbourne Cup Enters the Metaverse in Historic Deal with Digital Horse Racing Platform

First run in 1861, the Melbourne Cup is Australia’s most famous annual thoroughbred horse race, garnering an estimated viewership of 750 million people worldwide. Next week’s race will see the coming together of the old and new worlds following a deal between the Victoria Racing Club and local digital horse racing platform ZED RUN.

Horse Racing in the Metaverse

ZED RUN is a futuristic horse racing game built on the blockchain, where thousands of stable owners participate in more than 1,500 live races a day which are broadcast 24/7 to millions.

In July this year, Crypto News Australia reported that Australian-based digital horse racing start-up, Zed Run, had raised over US$20 million to “build the future of virtual entertainment“. Since then, the company has grown in leaps and bounds.

‘The Race That Stops a Nation’

Following its recent success in raising funds, ZED RUN is now joining forces with the Victoria Racing Club, the custodians of the Melbourne Cup carnival, where their famous Flemington racetrack will be featured on the blockchain. In celebration, there will be a virtual event at ZEN RUN HQ , held in the metaverse.

Think of it as a watch party, but instead of attending in person, attendees transport themselves to a virtual land called the ‘metaverse’ where they can gather together and enjoy the festivities.

Melbourne Cup ZED RUN

In the metaverse, users will have everything provided, from musical entertainment and livestreaming of the event to free ‘fashion in the metaverse’ and Birdcage-esque attire giveaways that attendees will be able to wear. Attendees can also, if they so choose, buy additional custom-made avatar wearables to further impress at the carnival party.

Metaverse carnival schedule. Source: Melbourne Cup ZED RUN

NFT Auction From October 30 

A rare collection of 10 nostalgic NFTs will become available by auction from October 30 to November 4. Some of the more valuable NFTs will include the most legendary races, together with real-world experiences. In addition, all 10 NFTs will include a pair of tickets to the 2022 Melbourne Cup and one Victoria Racing Club VIP experience.

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Crypto News NFTs Reddit

Is Reddit Building an NFT Platform for its 450 Million Users?

A new job posting for a senior backend engineer has many speculating whether social media giant Reddit might be building its very own non-fungible token (NFT) platform. If so, Reddit will join a host of companies that have recently announced native NFT marketplaces, such as Coinbase and FTX.US.

As the NFT market continues to grow at an explosive rate, more and more are joining in on the craze. Among other things, Reddit’s job posting said:

[We are] a new and exciting, rapidly growing team that aims to build the largest creator economy on the internet, powered by independent creators, digital goods, and NFTs. We are looking for strong engineers and leaders to help us seed the team, set its strategy, and build for the future.

Reddit job posting for senior backend engineer

With over 450 million monthly visitors coming to the site for news updates and discussion threads, Reddit needs to keep up the interest level. The news of a potential NFT marketplace comes soon after the company’s valuation shot up to US$10 billion following a Series F round funding.

Reddit is an important platform in the crypto world, allowing its users to vent their frustrations and generally share their views on cryptos. Its stated intention is to use the capital infusion to improve product features and upgrade the platform for newcomers to understand and explore.

According to the posting, the social media giant is looking for someone who can “design, build and ship backend services for millions of users to create, buy, sell and use NFT-backed digital goods”.

There is No End in Sight

Many thought NFTs would be a short-lived craze, but surely nobody can deny the phenomenon has solidified itself in the cryptosphere. Reddit concurs that the future growth of NFTs cannot be ignored:

With every new NFT project, a vibrant community of owners pops up with it. Fans of today’s biggest creators and brands are now flocking to buy digital goods directly from them – to support them, to gain exclusive access, and to feel a greater sense of connection with them. Over time, we believe this will only grow, and NFTs will play a central role in how fans support their favourite creators and communities.

Reddit job posting

Bestselling author and “new wave” entrepreneur Daniel DiPiazza tweeted his views on Reddit and NFTs, making no secret as to where he stands:

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Bitcoin Crypto News Ethereum Investing Regulation

US Firefighter Fund Invests $25 Million in Crypto, Sparking a New Trend?

An American firefighters’ pension fund has invested US$25 million in bitcoin and ether, marking the first time a US public pension plan has invested in digital currencies, according to an October 21 announcement. This bold move is leading many to reconsider their stance on cryptos.

Houston Firefighters’ Relief and Retirement Fund (HFRRF) announced its crypto purchase through NYDIG, a digital assets manager and subsidiary of Stone Ridge Assets Management. The investment was made through a customised private fund that will be managed by NYDIG.

Taking the First Step into the World of Cryptos

In the context of the announcement, HFRRF’s chief investment officer Ajit Singh spoke of the importance of investing in cryptos:

This investment expresses our belief in the disruptive potential of distributed ledger technology for the development and democratisation of value accumulation through disintermediation.

Ajit Singh, CIO, HFRRF

Singh went on to say:

We have been studying digital assets’ transformative potential for some time, and we are pleased to have a partner of NYDIG’s calibre to ensure secure, robust and efficient execution, and enhanced compliance, as we enter this new market.

Ajit Singh, CIO, HFRRF

HFRRF’s benefactors include more than 6,600 active and retired firefighters and survivors of firefighters, and the fund holds over US$4 billion in total assets. Since 2004, HFRRF members have been contributing 9 percent of their salaries to the fund.

This purchase marks an important milestone for cryptos and their potential role in public pensions and superannuation funds. Nate Conrad, NYDIG’s global head of asset management, said the investment represented a watershed moment for bitcoin.

Entrepreneur and crypto investor Anthony Pompliano took to Twitter to share his opinion and make a bold prediction:

As crypto adoption becomes more widespread, many institutional investors are realising the importance of crypto exposure. Specifically, Australian superannuation funds are being urged to rethink their stance on cryptos or risk falling behind.

Accessing cryptos remains one of the biggest obstacles. To this end, Vault International Bitcoin Fund has established the first bitcoin-only fund in New Zealand. One of the main reasons for launching the fund is to remove the hassle and risk of direct crypto ownership.

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Blockchain Crypto News Facebook Regulation Social media

US Lawmakers Ask Facebook to Terminate Crypto Pilot

Just hours after it had made the announcement of a pilot of its cryptocurrency wallet, Novi, Facebook was ordered by US lawmakers to cease the project in a letter to CEO Mark Zuckerberg.

In the letter, five Democratic Senators urged the company to halt the pilot, citing concerns over the handling of cryptos by the social media giant.

‘Facebook Cannot Be Trusted’

Many concerns have been raised surrounding Facebook in recent times regarding the company’s “relentless pursuit of profits at the expense of its users”. Joining the backlash the company has received, the senators’ letter stated that:

Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient.

Letter to Facebook signed by five Democratic US Senators

When Facebook first unveiled plans for its crypto project in mid-2019, it already faced a global regulatory backlash. Concerns were raised that the launch of private money by a company of Facebook’s magnitude and user base could destabilise the entire monetary system.

The backlash prompted several partners to leave the project, and the project underwent a rebranding from Diem to Libra.

Facebook responded by saying lawmakers misunderstood the relationship between Diem and Facebook. “Diem is not Facebook”, wrote the company, making it clear Diem is an independent organisation, and that Facebook’s Novi is only one of more than two dozen members of the Diem organisation.

Facebook has said that Novi, once it goes live, will make cross-border payments more efficient and reduce transaction costs.

Lawmakers Remain Critical of Facebook

In the letter issued to Zuckerberg, the senators wrote:

Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape.

This is certainly not the response Facebook was hoping for, though it is not entirely unexpected. Earlier this month, Facebook announced it would hire 10,000 new employees over the next five years to start building its metaverse. However, many are sceptical of this effort and are instead calling on the company to move toward creating a safer, more responsible, and ultimately more trustworthy social platform.

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Bitcoin Crypto News Regulation

Bitcoin Futures ETF Records $1 Billion in Trading Debut

The first US-based Bitcoin exchange-traded fund (ETF) has finally listed and surpassed all expectations. ProShares Bitcoin Strategy ETF, trading under the ticker $BITO, recorded a historic US$1 billion in its first day of trading, easily the biggest day one of any ETF in terms of ‘natural’ volume.

 

Since ProShares’s Bitcoin (BTC) futures ETF listed on the New York Stock Exchange on October 19, it has been met with explosive interest. The news comes soon after Jacobi Asset Management, a London-based multi-asset investment manager, announced it had received approval to launch the first European Bitcoin ETF.

Biggest Day One Recorded

$BITO has had the biggest first day in terms of ‘natural’ trading volume and has also traded more than 99.5 percent of all ETFs, according to Bloomberg ETF correspondent Eric Balchunas.

Futures, and Not Spot ETF

Interestingly, $BITO listed on the New York Stock Exchange, not after approval from the US Securities and Exchange Commission (SEC) but rather due to the SEC’s lack of objection within 75 days of the initial application.

$BITO will not provide any direct exposure to the BTC spot price. In usual instances, when you buy a regular ETF, the value of the share is based on the price of the asset underlying the fund. However, in the case of a futures ETF, a number of additional factors may lead to the price of the shares diverging from the asset.

The narrative surrounding ETFs has always been that if granted, a Bitcoin ETF would open the door for many new participants who are otherwise not interested, nor able to navigate the complexities of entering the world of cryptos. Accordingly, an ETF would then expose institutional and retail investors to BTC in a simple, trusted and familiar way.

Moving in the Right Direction

Although $BITO or any other futures-based ETF will not entirely allow for the traditional narrative of ETFs, it is certainly a step in the right direction. While $BITO does give BTC more recognition and credibility, it has been suggested that the futures-based ETF will ultimately act as a bridge for others to launch spot market-based ETFs.

Following the launch of the ProShares ETF, it has been reported that Valkyrie Bitcoin Strategy ETF may also commence trading early next week. As all eyes are on the company, most focus has however been on Twitter as the ETF’s ticker symbol, in an apparent nod to the community, changed from $BTF to $BTFD, or ‘buy the f*cking dip’.