The floodgates have opened on Bitcoin Exchange Traded Fund (ETF) applications, with 34 currently pending approval and more joining the queue by the day.
Here's the current list of #Bitcoin and Crypto ETF filings with the SEC. Next big date is still 11/14/21 for VanEck's spot Bitcoin ETF. It will be either approval or denial from SEC — no more delays. https://t.co/Z8phpVlsOKpic.twitter.com/g9ayoibmQN
Advocates for a Bitcoin ETF argue that the complexities of exchanges, crypto wallets and private keys still present a barrier to entry into the crypto space for newcomers. A Bitcoin ETF would enable these investors to gain exposure to Bitcoin without actually having to hold their own cryptocurrency.
A Long and Winding Road
The road toward a Bitcoin ETF has been long and tortuous. Since the Winklevoss twins first filed for a Bitcoin ETF-like trust in 2013, the US Securities Exchange Commission (SEC) has cited concerns over the lack of transparency of trading information, possible market manipulation, and the notion that Bitcoin is fundamentally different from other assets it regularly deals with. It is also worried about a lack of liquidity in the markets, Bitcoin’s inherent volatility, and fears over associated fraud.
Part of the case against a futures-based Bitcoin ETF is the 1 percent annual fund management fee, which detractors warn tends to quietly accumulate, and the added complexity of trading futures, whether they be soy, crude oil, or cryptos.
Ahead of the first Matrix reboot in 18 years, Warner Brothers is set to release a range of non-fungible tokens (NFTs) for just US$50 each from November 30.
In conjunction with social NFT platform Nifty’s, Warners will launch 100,000 avatars themed around The Matrix Resurrections, the fifth instalment of the blockbuster film franchise and the first since 2003’s twin release of The Matrix Reloaded and The Matrix Resolutions, set to open in Australian cinemas on January 1.
Wake up
On 11/30, collect your Matrix avatars exclusively on Nifty’s. Created by Nifty's and @warnerbros, and made using Epic Games’ MetaHuman Creator, these NFTs bring to life this iconic franchise in a whole new way.
The series centres on a cyberpunk story of humanity’s technological fall, with the creation of artificial intelligence (AI) heralding a race of self-aware machines that imprison mankind in a virtual reality system – the Matrix – to be farmed as a power source. Some of the prisoners break free from the system and, considered a threat, are pursued by the AI both inside and outside of it.
Your Choice: Red Pill or Blue Pill?
A central theme of The Matrix is the dilemma of choice versus control, symbolised by the red pill and the blue pill: you can learn a life-changing truth by taking the former or remain in a state of blissful ignorance by taking the latter.
Similarly, buyers of the Matrix NFTs have a choice: choose the blue pill, and their avatar’s character remains in the Matrix; choose the red pill, and their avatar transforms into a resistance fighter.
If you think about all the ways fans of content can interact with their favourite characters and stories in 2021 – via retail stores, theme parks, social media, collectibles, or online shops – digital art and collectibles are certainly on that list now. NFTs are another touchpoint for fans to engage.
Pam Lifford, president, Warner Bros consumer products
Scene from The Matrix Resurrections, opening in Australia on January 1. Source: techbriefly.com
Warner Bros are far from the only filmmakers exploring the potential of NFTs for creative and commercial purposes. New 2021 feature films Lockdown and Zero Contact were both released as NFTs, while 2015 martial arts movie Kung Fury director David Sandberg has launched a line of NFT characters that may feature in his upcoming movies. And just last week, Pulp Fiction director Quentin Tarantino announced the release of a line of NFTs based on his celebrated 1994 film.
Interim orders and injunctions have been filed by ASIC against the company and its directors, Aryn Hala and Heidi Walters, to protect investors.
Self-Managed Super Funds Misappropriated
It’s alleged that Hala misled investors by convincing them to loan their superannuation funds to A One Multi and receive annual returns of over 20 percent.
Between January 1, 2019, and June 30, 2021, more than 60 self-managed super fund investors deposited approximately A$25 million into A One Multi’s accounts. ASIC alleges Hala used more than A$5.7 million of those funds for his and partner Walters’ personal benefit, including acquiring real estate and luxury vehicles in their names, and that a further A$2.4 million was transferred from A One Multi to buy crypto-assets.
On October 21, the Federal Court in Queensland made the following orders to protect investors:
that A One Multi be placed in receivership;
that asset preservation orders be issued against Hala, Walters and A One Multi;
that Hala transfer crypto-assets in his name to the receivers;
that orders be issued requiring the disclosure of information to ASIC against Hala, Walters and A One Multi, including in relation to the crypto-asset holdings; and
that travel restraint orders be issued against Hala and Walters.
The first tranche of crypto-assets held in Hala’s name was transferred to the receivers on October 25, and the court has since ordered the defendants to attend an ASIC office to facilitate the transfer of remaining crypto-assets.
In what was clearly a busy week for crypto-related financial activities in Queensland, an A$100 million class-action lawsuit was filed against the Gold Coast-based issuers of controversial token Qoin.
Australian crypto exchange ACX came in for criticism “multiple times” last year from concerned traders and users who reported they were unable to withdraw funds.
Now the developer of the failed ACX trading platform, Blockchain Global (BGL), has entered voluntary administration, owing creditors A$21 million.
BGL has variously claimed to be the developer, operator and owner of ACX. Administrators were appointed on October 19, less than a month after BGL was ordered to disclose its assets by Victorian Supreme Court Justice Peter Riordan.
$12.3 Million Shortfall in BGL Assets
Sam Lee, CEO of BGL, claims to have stepped down as a director in March 2019 but he retains ownership of the brand. A preliminary administrators’ report dated October 24 revealed a $12.3 million shortfall in assets.
It’s a business decision for existing directors that it is in the best interest of creditors and shareholders to wind up the company. I abstained from all decision-making after my appointment as I didn’t have enough visibility to make informed decisions.
Sam Lee, CEO, BGL
According to the preliminary administrators’ report, BGL has A$8,264,764 in assets including A$5,729,175 in crypto spread across bitcoin, ethereum, MobileGo and XEM, plus A$1.3 million in shares along with another A$1 million in cash held in accounts with the Bank of Melbourne.
The value of BGL’s assets and uncollected debts, however, is far exceeded by its creditors. Since ACX ceased trading and froze the accounts of its users in March last year, an estimated 200 investors – who are understood to have lost as much as A$10 million – have been kept in the dark.
ACX Banned For Life, Digital Currency Licence Revoked
ACX was banned for life by the peak industry body while the financial intelligence regulator AUSTRAC revoked its digital currency licence. Many of those investors have since given up hope of ever getting their money back.
One of them, University of Queensland research fellow Khaled Said, invested “a few thousand dollars” in popular currencies such as Ripple and Ethereum with ACX during the first bitcoin boom in 2017. He lost interest during a downturn but returned to the platform when prices began to recover in 2019, only to find he was one of many who could put money into ACX but could not take it out.
As far as we can tell there are 10 or 20 [investors] who lost a lot, who lost more than half a million, and the rest are people like me who lost a few thousand each.
Khaled Said, ACX investor and creditor
‘Nobody Wants to Take the Case’
Investors say the collapse of the platform has been reported to the Australian Securities and Investments Commission, the Australian Competition and Consumer Commission, the Federal Police, various state police, the Australian Signals Directorate’s Cyber Crime Unit and several members of parliament.
Said personally reported his loss to ASIC in August 2020. He was sent a few links to fact sheets and has not heard anything since. “Nobody is willing to take our case, which is really concerning,” Said complains.
Last month, El Salvador’s laser-eyed President Nakib Bukele announced the nation would build an animal hospital using a portion of its bitcoin profits. This month it’s 20 new schools, also to be funded from the surplus of the Salvadorean Trust for the Adoption of Bitcoin.
"Además, quiero anunciar que con unos millones que nos quedan de las ganancias de #Bitcoin vamos a construir las primeras 20 escuelas #Bitcoin, totalmente equipadas y modernas", Presidente @nayibbukele. pic.twitter.com/qU4nMgrEDb
Translation: “I announce that with a few million that we have left from the profits of #Bitcoin we are going to build the first 20 #Bitcoin schools, fully equipped and modern.”
Bukele’s latest announcement was made just after he laid the foundation stone of the public veterinary hospital, a first for the Central American republic and a project that will employ 300 Salvadoreans.
The president took the opportunity to mention that both the veterinary hospital and the forthcoming schools construction were made possible because opposition to his bold national Bitcoin adoption strategy was ignored.
The 20 new bitcoin-funded schools are additional to the 400 schools already announced under the El Salvadorean government’s My New School Program, as reported locally.
El Salvador ‘Buys the Dip’ Again
Late last month, Bukele confirmed via Twitter that El Salvador had again “bought the dip” on bitcoin, with its latest purchase of 420 BTC bringing the nation’s holding to 1120 BTC, or US$70.5 million at the time of writing.
News of the additional schools building plan comes just a week after bitcoin’s price hit an all-time high of nearly US$67,000.
Queensland-based Australian crypto dispute specialist law firm Salerno is preparing a A$100 million class-action suit against the issuers of Qoin, a controversial token promoted by the backers of Bartercard, a 30-year-old trading exchange based on the Gold Coast.
Salerno Law began collecting expressions of interest just a week ago, seeing more than 100 merchants, agents, consumers and other clients declare their intention to join the class action.
The firm says it is investigating potential breaches of the Corporations Act, the Australian Securities and Investments Commission (ASIC) Act, and Australian consumer law, including (as quoted):
misleading and deceptive conduct;
making false or misleading representations;
pyramid selling of financial products;
failure to comply with financial services obligations and consumer guarantees; and
fraud.
Bartercard Australia Directors Linked to Lawsuit
The lawsuit targets Southport-based BPS Financial Limited, controlled by co-directors Tony Wiese and Raj Pathak who also oversee Bartercard, a firm that allows businesses to exchange goods and services without direct cash payments.
BPS launched Qoin in late 2019 and claims to have more than 35,000 merchants signed up, along with 50,000-plus “wallet holders’’ who have acquired the digital product. It’s estimated that in excess of A$20 million worth of Qoin has been transacted since.
Qoin tokens can be swapped as a digital currency only via Block Trade Exchange Limited, aka the BTX Exchange, which is linked to BPS and has the same two directors, Wiese and Pathak. Critics allege this is a closed system that creates a potential conflict of interest.
According to Salerno’s website, “Qoin has entered into an exclusive trading arrangement with BTX Exchange which, according to its terms, limits users to one daily transaction with a $125 sell limit per day per person, subject to buyer demand.
It has been alleged by holders and merchants that they are either unable to accept Qoin payments or exchange the token for fiat currency due to the terms of BTX Exchange, leaving them with a token of no utility. For merchants, this is alleged to have caused a significant loss in revenue.
salernolaw.com.au
BPS Executive Denies Wrongdoing
Senior BPS executive Andrew Barker denies the company has done anything wrong and blames the impending lawsuit on a single disgruntled merchant. “We have reviewed the alleged potential grievances and consider them baseless,” the company stated on its own website. “We have received no direct communication and therefore have no further comment to make at this time.”
The threatened lawsuit follows Qoin’s expulsion earlier this year by Blockchain Australia (BCA), who in a statement in February asked for its name and logo to be removed from Qoin marketing material but did not provide details as to why.
Qoin’s issuers responded angrily that the timing of BCA’s statement “aligns with the emergence of false and misleading comments … made by certain antagonists on social media platforms, including a previous board member”. This was in reference to a former BCA director who had previously alleged in a tweet that Qoin was the nation’s “biggest crypto scam’’.
Qoin Clients Voice Concerns on TrustPilot
Consumer review website Trustpilot lists several more recent Qoin critics, among them former clients and representatives:
QOIN are basically worthless. Don’t believe me? Try selling some through BTX exchange as directed to by Qoin. BTX don’t want them either. Not many retailers accepting them in NSW. They wiped my wallet clear and kept my money after I complained. RUN a mile … and keep running.
Peter, Trustpilot.com reviews
Can’t cash out and the local “recruiter” was rude and forceful. His sales pitch was basically telling you to avoid paying tax by trading a dodgy QOIN you can’t sell.
Jackson, Trustpilot.com reviews
Absolutely a Ponzi scheme. Can’t sell. If you are lucky enough to it’s at half the value … Disgraceful they are allowed to continue operating in this country.
Jih, Trustpilot.com reviews
Crypto News urges Australian and New Zealand retailers and local businesses to stay vigilant and do your research before getting involved in any new ventures offering “free” cryptocurrency.
Elon Musk’s namesake memecoin Dogelon Mars (ELON) mimicked his SpaceX corporation in October by rocketing a massive 3,780 percent in value.
Much of the monthly gain in performance occurred at the back end on October 29 and 30, when the token rallied by more than 200 percent alongside its listing on OKEx and Crypto.com last Friday.
Thank you Martians for all of your overwhelming support to get us listed on OKEx. It is only one of many stops on our intergalactic mission. $ELON emissions are being transported to your wallets right now!
In what could be called the Year of the Dog for memecoins, Shiba Inu (SHIB) also shot up in October by more than 850 percent to hit a market cap of around US$38.5 billion, surpassing even Dogecoin, which has gained an astronomical 10,360 percent year-to-date.
The Dogs (All 45 of Them) Are Barking
Since the Dogecoin network launched on December 6, 2013, there are now no fewer than 45 meme-based crypto assets with dog-related nomenclature. Samoyedcoin (SAMO), for example, surged by around 2,925 percent to reach a market valuation of around US$458 million last month.
Whenever one of these coins starts to pump a little bit, everyone starts to think this could be the next nonsensical rally. It’s a casino, and it’s more fun than a roulette table.
Eric Wall, chief investment officer, Arcane Assets
Dogelon Mars is the fifth-largest meme-based crypto-asset, as rated by CoinGecko. Baby doge coin (BABYDOGE) ranks #7, and even it has spiked 560 percent in the last month.
ELON’s price corrected by almost 30 percent after topping out for the year at US$0.00000233, waving what looked a lot like a Bull Flag in the process.
Facebook’s parent company rebrand to Meta, announced this week, could cost it dearly in terms of retaining existing employees and attracting new ones.
“I doubt this will redeem or protect the employer brand much,” says Georgetown University business professor Brooks Holtom, who is also a corporate human resources specialist based in Washington DC. “With Facebook facing so many missteps and public criticism tarnishing the brand, people in the know won’t be fooled by this rebranding.”
Is the Facebook Rebrand a Convenient Distraction?
Mark Zuckerberg launches Facebook’s Meta rebrand. Source: latimes.com
Scrutiny of CEO Mark Zuckerberg and Facebook has intensified in recent weeks over its handling of misinformation, fake news and hate speech, as well as ongoing criticism over its failure to answer allegations that some of its platforms are damaging the mental health of children and teenagers.
Earlier this month, former Facebook employee turned whistleblower Frances Haugen released internal company documents that show Facebook knows its products and services can cause harm but that it struggles to address the issue. Zuckerberg has denied the claims, saying they “paint a false picture of our company”, and that the problems Facebook experiences are simply “a reflection of society”.
News of the company’s rebrand, already labelled by some as a distraction from its slate of allegations, could spark higher employee turnover, according to Holtom.
Facebook has talented people, and competitors in the market are looking for that talent. It [the tech market] is extremely competitive. You can be sure other companies are preparing to reach out selectively to inquire about people thinking of moving. It’s a precarious time for Facebook from a talent perspective.
Brooks Holtom, professor of business, Georgetown University, Washington DC
Facebook’s reputation as a top company to work for has slid since it claimed the top rung in 2018, based on employee ratings on US review site Glassdoor. It dropped one spot in the 2019 list after reports that political consulting firm Cambridge Analytica had improperly accessed the data of 87 million Facebook users. Its ranking plummeted to #23 in 2020 and this year clawed its way back to #11.
Jobs for Metaverse Specialists, For Others Not So Much
The Meta rebrand could bolster retention and hiring efforts for highly specialised employees involved in metaverse operations for “the chance to work on something really revolutionary with a large budget”, Holtom allows. But he says it’s unlikely the company will see a positive impact among the public or employees not involved in metaverse work: “I think they’re at big risk.”
Facebook is already experiencing employee churn at third-party sites in the US that hire content moderators for its social media platform. Earlier this month, flagship TV current affairs program 60 Minutes aired a harrowing story headlined “Thumbs down” in which former Facebook moderators described the horrors they were forced to deal with on a daily basis.
“I saw a lot of child abuse, a lot of gore. We had quite a few beheadings,” ex-Facebook employee Allison Trebacz told the program. “It was really messed up.”
“You see a whole lot of nudity, you see aborted foetuses, people killing themselves live,” said Spencer Darr, another former moderator. “Within the first week or two I was having nightmares about some of the content I’d seen.”
$15 an Hour to Witness the Worst of Humanity
Former Facebook moderator Shawn Speagle (right) with podcaster Patrick Bet-David.
Also this month, in a shocking YouTube interview with US podcaster Patrick Bet-David, former Facebook “graphic violence and hate speech” moderator Shawn Speagle attested to witnessing bestiality, live shootings, animal cruelty, public stonings, violence against children and women – including vivisection and organ harvesting – and all manner of sexual exploitation in his six months as an employee of Cognizant Technology Solutions, a third-party Facebook site in Tampa, Florida. All for a princely US$15 per hour, in less than ideal working conditions.
“When I started at Facebook, I thought the least I could do was try to help the people and animals whose last moments were being desecrated,” Speagle said, stressing he had no “revenge motive” against Facebook.
Still Waiting For Compensation
Without admitting any wrongdoing, Facebook agreed in May 2020 to pay $US52 million in damages to former moderators who had suffered severe mental health disorders as a result of their employment. The settlement was to include a US$1000 payment for each and additional funding for a shared support service. All are reportedly yet to receive either consideration.
“It’s just not enough, especially for a company that makes US$55 billion a year in revenue,” commented Spencer Darr in his 60 Minutes interview. “It felt like an insult.”
Troubled social media giant Facebook sees the growing metaverse – think of it as the internet on steroids – as the future of its business, and has now made it official by announcing the company will henceforth be known as Meta.
Announcing @Meta — the Facebook company’s new name. Meta is helping to build the metaverse, a place where we’ll play and connect in 3D. Welcome to the next chapter of social connection. pic.twitter.com/ywSJPLsCoD
Meta will be the name for the overall company, although most of its individual apps and services – such as Facebook itself, Messenger, WhatsApp and Instagram – will maintain their current branding under the Meta umbrella.
“The metaverse isn’t a single product one company can build alone,” tweeted Nick Clegg, Facebook’s Global Affairs VP, exactly a month ago. “Just like the internet, the metaverse exists whether Facebook is there or not. And it won’t be built overnight. Many of these products will only be fully realised in the next 10-15 years.”
It’s clear that, by very definition, Meta fully intends to own the metaverse, starting right now. “I think we’re basically moving from being Facebook first as a company to being metaverse first,” CEO and founder Mark Zuckerberg said after announcing the name-change during the streaming keynote for this week’s annual Facebook Connect event.
What, Exactly, Is the Metaverse?
So what, exactly, is the metaverse? It’s a term loosely describing the future evolution of the internet, in which the flat apps and websites used today are gradually replaced by 3D environments and shared spaces, making interactions more “immersive”, to use a word Zuckerberg is especially fond of.
The metaverse won’t be a single entity, rather a conceptual collection of open worlds and settings joined by interoperable assets and experiences. Collectible NFT assets, for example, could be turned into 3D avatars that owners could place into all sorts of web spaces, whether for work, play, exercise, or social interactions.
The metaverse is the next evolution of social connection. It's a collective project that will be created by people all over the world, and open to everyone. You’ll be able to socialize, learn, collaborate and play in ways that go beyond what’s possible today. pic.twitter.com/655yFRm8yZ
The company has said it will help build the metaverse “responsibly”, and took time in this week’s keynote to highlight its focus on privacy and open collaboration with external creators and firms. Cynics might say that’s a direct response to criticisms directed at Facebook over the years (and especially lately, by whistleblower and former employee Frances Haugen) in regards to privacy, security, its failure to control fake news, misinformation and hate speech, and accusations of incipient harm to teenagers’ mental health.
The US Federal Trade Commission has also filed an antitrust lawsuit against (pre-Meta) Facebook accusing it of anti-competitive practices. As Forrester Research director Mike Proulx has said, changing FB’s name to Meta “doesn’t suddenly erase the systemic issues plaguing the company”. In other words, never mind all that, look at our new, shiny name!
On December 1, FB/Meta shares will start trading under a new ticker symbol, MVRS. Hmmm … wonder what that stands for?
World Wrestling Entertainment (WWE) has formed a tag team with LA studio Bento Box to launch a new line of NFTs in a multi-year deal with Blockchain Creative Labs.
After WWE entered a five-year media deal with Fox Entertainment in 2018, Fox announced a US$100 million investment in its then-new blockchain division.
The WWE NFT drop is the first from Blockchain Creative based on a property not owned by Fox, after it released an NFT line based on popular TV competition The Masked Singer earlier this month.
Fans Will Need a Digital Media Wallet from Eluvio
Like those tokens, the WWE collectibles are on the Eluvio blockchain, in which Fox is also an investor. Fans will need to create a digital media wallet via Eluvio to allow them to purchase NFTs with credit cards or crypto, as well as trade and sell them.
Each of the WWE tokens will be tied to images of past and present WWE superstars and tentpole events such as Wrestlemania and SummerSlam. The NFTs will be listed on WWE’s NFT Marketplace, the name of which and official launch date to be announced in the “next few weeks”.
This is not WWE’s first foray into NFTs. In April, timed to coincide with WrestleMania 37, it dropped a set highlighting the career of recently retired star Mark Calloway, better known as the Undertaker.
We know WWE’s passionate fan community will love owning authentic digital goods across the organisation’s creative universe, from past and present stars to classic, culture-defining moments.
Scott Greenberg, CEO, Blockchain Creative Labs and co-founder/CEO, Bento Box Entertainment
Still Think Wrestling Is Fake? Adobe May Have a Solution
In the same week as news of the WWE NFTs broke, Adobe Photoshop announced the upcoming launch of a new security feature in its Photoshop software that can assist in verifying an NFT’s authenticity. Perhaps Adobe could talk to the WWE about a possible solution for those cynics who continue to doubt the authenticity of professional wrestling.
