Author: Lauren Claxton

Lauren is currently a freelance writer with experience in finance writing. She has a growing interest in the metaverse and all things NFTs and expects to graduate in 2022 with bachelors degrees in creative writing and public relations.

Categories
Alchemy Pay Binance Coinbase Crypto News FTX OpenSea

Forbes Releases Rich List for Crypto and Blockchain Billionaires

Forbes’ crypto billionaires list has grown by seven this year, increasing to 19 members, though these new additions have not knocked Binance founder and CEO Changpeng ‘CZ’ Zhao off the top spot.

Recent DLT News Review: New Launches by Forbes and Visa ...
Forbes releases its crypto billionaires list this week.

The Forbes list expanded by 58 percent this year. When it was first compiled in 2018, the bar to qualify was set at US$350 million. However, as the industry has since expanded exponentially, only billionaires qualify in 2022.

Binance founder and CEO ‘CZ’ Zhao is holding tight to his top position on the list for another year. Despite Forbes downgrading CZ’s wealth estimate from US$96 billion to $65 billion, he is still several lengths out in front:

In second place is FTX founder and CEO Sam Bankman-Fried, with a current estimated worth of US$24 billion. Bankman-Fried has grand intentions to donate much of his wealth to charities, keeping only 1 percent of his annual earnings each year, stating “I don’t want a yacht”. Brian Armstrong, CEO and founder of CoinBase, took third place with a net worth of US$6.6 billion.

Among the handful of newcomers are FTX’s co-founder Gary Wang, OpenSea co-founders Alex Atallah and Devin Finzer, Song Chi-Hyung (founder of Upbit), Kim Hyoung-nyon (Upbit’s EVP), and Nikil Viswanathan and Joseph Lau, co-founders of Alchemy.

Crypto Billionaires Line Their Pockets

For a select few, crypto investments have paid off immensely. Aussie billionaire Alex Waislitz bought crypto investments that reportedly increased in value by 400 percent. Nicknamed “Australia’s Warren Buffett”, Waislitz invested through a pre-IPO (initial public offering), which turned out to be a very smart move.

Billionaire PayPal founder Peter Thiel, on the other hand, has stated that he is disappointed he didn’t invest more before the boom.

Categories
Blockchain Fantasy Sports Gaming NFTs Sports

Blockchain Soccer Game GOALS Nets $15 Million Seed Funding for Multiplayer Venture

Young Swedish start-up GOALS has announced that its seed funding round netted a profit of US$15 million. The round was led by venture capital firm Northzone alongside the CEO of Sorare and its strategic adviser, a very well-known football player.

The e-sports game features a play-to-own mechanism with players, clubs and skins available in the form of digital assets. This means that once you own one of these NFTs, it’s yours for as long as you wish to keep it – unlike soccer game giant FIFA, which only lets a player hold a skin for a limited time.

Barcelona Defender Gerard Pique Among the Donors

Despite being barely a year old – GOALS was founded in May 2021 – the venture is receiving a lot of support. Northzone, Cherry and Moonfire venture capital firms were just some of the notable names contributing to the seed funding round.

Nicolas Julia, CEO of Sorare (another prominent blockchain football game), and strategic adviser Gerard Pique, the famous Barcelona FC defender, were also among the donors.

Barcelona FC star defender Gerard Pique, who is also Sorare’s strategic adviser. Source: everythingbarca.com

GOALS is free to play, with the game taking a small cut of each marketplace transaction. You can check out the GOALS project trailer below:

Football Follows in Sorare’s Bootsteps

Sorare Crypto Fantasy Football paved the way for GOALS in the field of blockchain-based football games. The game enables fans to collect and trade player cards to compete for prizes. Since Sorare’s development in 2018, the game has gone from strength to strength, notably raising US$680 million in its September 2021 fundraising round.

If you’re interested in learning more about Sorare and how it works, Crypto News Australia has put together an independent review of the game. You can find it here.

Categories
Australia Crypto News Cryptocurrency Law Regulation

ASIC Releases Guidance Note for Australian ‘Finfluencers’

The Australian Securities and Investment Commission (ASIC) has released a document outlining which financial influencers may be in breach of the law. The move is being met with contention by many of these so-called “finfluencers”:

Digital Assets Are ‘Financial Products’: Senator

Finfluencers have the capability to offer incorrect, or unwise, financial information or products to their followers, either intentionally or accidentally. Some of the points on this guidance note include ensuring finfluencers are properly licensed to deal in a financial product or provide advice on a product, along with managing content to ensure it is accurate and balanced.

While the guide does not explicitly mention the crypto industry and its advisers and influencers, as crypto is counted as “investing services”, the rules still apply. This is backed up by pro-crypto NSW Senator Andrew Bragg.

https://www.linkedin.com/in/andrew-bragg-3296b823/overlay/photo/

ASIC’s current policy applies the law to crypto to the extent that digital assets fall within the definition of a financial product.

Australian NSW Liberal Senator Andrew Bragg

The move from ASIC is being heavily critiqued online by several financial influencers, with many suggesting the guide is all-encompassing in the sense that almost anything in the way of advice could still influence someone to invest.

The tighter regulations will come with penalties of up to five years’ jail for individuals and extreme fines for corporations.

ASIC Cautions Investors and Exchanges

ASIC has issued finfluencer warnings in the past, with the commission last year urging young investors in particular to be cautious. ASIC has stated that while using social media is a viable means of collecting background information on a topic, such info may be unlicensed and inaccurate.

More recently, ASIC has issued a warning aimed at crypto companies, informing them that they should expect tighter regulations in the future with the aim of pulling the crypto industry into line with traditional financial industries.

Categories
Airdrop Metaverse NFTs Tokens

Controversial Pudgy Penguins NFT Collection Sold for 750 ETH

The Pudgy Penguins NFT collection has sold for 750 ETH (US$2.6 million), separating its inherent cuteness from its controversial roots. LA-based entrepreneur Luca Netz, of Netz Capital, is now leading the project and plans to use it to “spread love across the Meta”:  

Pudgy Penguins Eye the Future

Netz has purchased full control of the collection – totalling 8,888 Pudgy Penguins – from the four original co-founders, alongside future royalties. Full ownership of the project means that Pudgy Penguins can now release its own token, $PENGU, and investigate the option of potential airdrops to existing penguin holders:

This follows the ousting of the founders via a January Discord vote over their failure to meet project goals. Co-founder ColeThereum had promised a game, an educational book, and a token, all of which the project failed to deliver. With turmoil behind the scenes and threats issued regarding the project, controversy had been rife within the community.

The sale of Pudgy Penguins will offer a fresh start for the collection. While the originators will no longer be a part of the project, they acknowledge that Netz has the connections and experience to level up the collection in the future.

NFT Controversies and Acquisitions

Pudgy Penguins isn’t the only collection with a controversial history. In February, YouTube ‘Internet Detective’ CoffeeZilla helped to expose a US$20 million crypto scam. Thanks to the joint efforts of CoffeeZilla and the NFT community, the ‘Squiggles’ project was foiled before it came to pass.

In other big acquisition news, last month the creators behind Bored Ape Yacht Club (BAYC) purchased CryptoPunks – another highly successful NFT collection. Yuga Labs now owns the IP and commercial rights to BAYC, and the company’s first move after doing so was to give full commercial rights to NFT holders.

Categories
Bored Ape Yacht Club NFTs Scams

35 NFTs Stolen in Twitter Phishing Attacks Last Week

A Mutant Ape and a Bored Ape were among 35 NFTs stolen last week via a handful of hacked verified Twitter accounts. The combined value of the phishing attack is assumed to exceed US$900,000.

The phishing incident disguised itself off the back of a Bored Ape Yacht Club (BAYC) airdrop that happened earlier this month. BAYC had airdropped ApeCoins to Mutant Ape and Bored Ape holders, which allowed for a copycat attack by scammers who hacked verified Twitter accounts and spread fake URLs impersonating a BAYC link:

Victims of the link who were prepared to pay 0.33 ETH to take part instead encountered code that allowed the hackers access to their wallets. Some victims claimed that, although the links appeared strange, they would nonetheless be safe as they were shared by trusted public figures.

Twitter is yet to comment on the incident, despite many users feeling the social media giant is partly to blame.

Other Recent Phishing Attacks

This isn’t the first large-scale phishing attack this year. Earlier in March, US$790,000 worth of Rare Bears were stolen. The phishing scam behind the NFT theft utilised the weakened security of Discord groups to share around a ‘corrupt’ link.

More recently, a crypto venture capitalist lost US$1.7 million worth of NFTs. Arthur Cheong, the founder of Web3 and DeFi venture capital firm Defiance Capital, had his hot wallet account hacked and 59 NFTs taken.

Categories
Australia Banking Crypto Exchange Crypto News

Mastercard Partners with Aussie Crypto Exchange in Effort to Tackle Debanking

Australian crypto exchange BTC Markets has entered a partnership with Mastercard, allowing it to accept card payments. This will mean more options for users and a positive step toward tackling debanking on Mastercard’s behalf.

Wider Range of Banking Options

Under the terms of the agreement, Aussies will be able to deposit and withdraw Australian dollars without fees via a broad range of means. Prepaid, direct debit and credit card payments will now be available on the exchange, whereas previously BTC Markets only permitted bank transfers:

The strategic merchant partnership is also about solving the issue of debanking, where a financial institution terminates, or denies, services to a client. While the practice is not illegal, a reason must be given for the termination. Typically, a bank will claim it seeks to mitigate risk by debanking a client, particularly in cryptocurrency-related cases.

Integrating traditional financial services with blockchain technology may be a remedy to this issue.

Past Debanking Cases in Australia

Allan Flynn, the owner of Australian exchange BitcoinCanberra, managed to settle a complaint against ANZ bank in October 2021 after being suddenly debanked. It took 20 months for Flynn to reach this outcome and appeared to be a turning point in the crypto industry’s fight against the practice.

Following this case, AUSTRAC – Australia’s anti-money laundering regulator – issued a warning to banks closing unsuspecting accounts. The financial watchdog stated that “businesses vulnerable to exploitation should not automatically have their accounts closed simply to avoid managing risk”.

Banks are expected to assess risks on a case-by-case basis, without bias towards crypto-related businesses.

Categories
Australia Blockchain Crypto News

ASX Blockchain Upgrade Delayed for the Fourth Time

The Australian Securities Exchange’s (ASX) Clearing House Electronic Sub-Register System (CHESS) has been delayed yet again. The fourth setback for the blockchain-based upgrade is being blamed on the firm building the software, and is believed to have already cost A$187 million.

https://www2.asx.com.au/markets/clearing-and-settlement-services/chess-replacement
An updated clearing and settlement system is planned for CHESS. Source: ASX

Another Delayed ASX Upgrade

Thanks to this latest setback, the ASX’s data warehouse is reportedly facing “several months of delay”. It was initially scheduled to go live in 2023, but this latest news is placing a lot of doubt on the timeline.  

https://www2.asx.com.au/about/our-board-and-management/our-executive-team

We recognise the impact these changes will have on our customers’ programming activities and apologise for the inconvenience.

Tim Hogben, ASX group executive

It is unlikely that accreditation schedules can begin until July or August of this year at the earliest. The ASX is shifting the blame for the delay to Digital Asset, the company developing the world’s first industrial-scale use of this technology.

Past ASX Blockchain Developments

In August 2020, the ASX looked to upgrade CHESS sooner than originally expected due to an increase in market pressure. However, in July of 2021, it was reported that ASX brokers were spending millions to adapt to the new blockchain-based upgrade, with CHESS making it difficult for SAFAA (Stockbrokers and Financial Advisors Association) members to interact.

Finally, the first of the Industry Test Environments (ITE1) for CHESS opened in December 2021. At the time it was a major step toward the final version of the system, which was set to go live next year.

Categories
Australia Crypto Exchange Cryptocurrency Law Regulation

Australia Announces ‘Badge of Approval’ Certificates For Crypto Exchanges

The Australian Securities and Investments Commission (ASIC) has announced that crypto exchanges can now receive a tick of approval. Any exchange that is government-approved will earn a “badge” signifying a uniquely Australian stamp of quality.

Senator Jane Hume, federal Minister for the Digital Economy, announced a market licensing regime for crypto exchanges at Australian Blockchain Week 2022.

https://www.senatorhume.com/about/about-senator-hume

Australian investors will be sure that if they use a licensed Australian exchange, they can trust that exchange will deliver on its commitments to customers and have appropriate protections.

Jane Hume, Minister for the Digital Economy

Senator Hume stated that she believes the way forward for the Australian crypto industry is through the regulation of exchanges. While ASIC badges of approval represent only a small change, it is seen as a positive step toward local cryptocurrency integration.

ASIC Busy on the Crypto Front

ASIC has had to deal with a plethora of cryptocurrency-related concerns recently, issuing a variety of warnings to Australian exchanges and investors. Most recently, it warned crypto companies to expect greater regulation in future, in line with those governing traditional finance companies.

In July 2021, ASIC chairman Joe Longo declared crypto trading a “significant area of concern“, particularly in the wake of the Covid-19 pandemic. And, in November 2021, ASIC shut down A One Multi, an unlicensed financial services business based on Australia’s Gold Coast, for suspected unlawful activity.

Categories
Australia Cryptocurrencies Cryptocurrency Law Regulation

ASIC Warns Aussie Crypto Companies to Expect Higher Regulation Moving Forward

The Australian Securities and Investments Commission (ASIC) has warned cryptocurrency companies that they will be held to the same standards as traditional finance companies, as the prospect of digital asset regulation strengthens.

The news was shared by ASIC commissioner Cathie Armour at Blockchain Australia’s crypto conference on March 24.

Higher Crypto Regulations Coming

Armour detailed to conference attendees that the “growing maturity” of the crypto industry means that crypto businesses may need to alter how they interact with the regulator. Businesses looking to offer crypto-related products will be expected to meet the same requirements as all other companies in the wider finance industry.

https://www.linkedin.com/in/cathie-armour-50b89013a/overlay/photo/

We’re doing this because we’re keen to maintain our robust regulatory framework. We’re really looking for industry to work closely with us and to do a lot of their own homework to navigate the details.

ASIC commissioner Cathie Armour

This isn’t the first time Armour has bestowed a warning on the financial industry. She has previously stated that Aussie influencers – specifically, “finfluencers” – could face up to five years’ jail time for breaking financial advice laws.

Past ASIC Warnings to Investors

ASIC is repeatedly warning investors about various dubious practices occurring within the financial industry. Most recently, the regulator cautioned against switching to a self-managed super fund (SMSF) to invest in crypto. Following an increase in crypto marketing for “investment opportunites”, Aussies were being “enticed” to switch to an SMSF before investing.

In October 2021, ASIC began joining investor Telegram groups to warn about an increase in pump-and-dump schemes. ASIC contacted one particular private Telegram group of 288 members, involving potentially illegal market tip-offs, to warn those involved that they were being monitored.

In August 2021, ASIC again cautioned Aussies to beware of unlicensed crypto companies. The warning was warranted due to an increase in losses from trading crypto-related products.

Categories
Australia Cryptocurrency Law Queensland

QLD Construction Company Moves into Liquidation After Buying $3 Million of Qoin

Liquidator FTI Consulting has announced that a significant purchase of troubled token Qoin is behind Queensland construction company Privium’s collapse, leaving hundreds of homes across the state unfinished and their prospective occupants fuming:

According to this week’s FTI report, Privium took an A$3 million gamble on cryptocurrency Qoin, transferring another half a million dollars to a Christian charity.

FTI stated that Qoin sales were limited to a few hundred dollars each day, describing the token as an “extremely illiquid” asset. When commenting on the company’s collapse, Privium CEO and founder Rob Harder proved a master of understatement when it came to placating disgruntled clients:

I understand that this is not the news you wanted to hear and that this will create real difficulties.

Rob Harder, Privium chief executive and founder

Both Harder and his wife are members of Hillsong Church in Brisbane’s southern suburban Mt Gravatt. While sources claim Privium had no connections with the church, the FTI’s investigation is ongoing.

Qoin Has Form

This isn’t the first controversy Qoin has been embroiled in. In February 2021, Blockchain Australia terminated Qoin’s membership via a notice of member disciplinary resolution, with locals at the time calling the token a scam.

In November, Salerno – an Australian crypto dispute specialist law firm – began preparations for a class action suit against Qoin for A$100 million. The firm was investigating Qoin’s potential breaches of Australian consumer law and the Corporations Act on counts of fraud and pyramid-like selling of financial products.