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Crypto News Facebook Social media

Doubts Raised Over Facebook’s $50 Million Investment in Building a ‘Responsible Metaverse’

In what’s widely viewed as a “never mind that mess, look over here” move, troubled social media giant Facebook is to spend US$50 million over the next two years on metaverse-related initiatives and partnerships.

Advocates of the metaverse, a system of shared online spaces used for social interactions, games and more, believe it will also help change the nature of work and offer new digital economic opportunities to users around the world.

But as decentralised projects try to create future online experiences free from oversight and control, it’s exactly the pervasive influence of centralised entities like Facebook they seek to avoid.

FB Attempts to Create a Diversion

In an attempt to diffuse criticism of its track record on user privacy and cultivating misinformation, Facebook vows it will build metaverse products “responsibly”. Australian journalist and digital consultant Abhishek Baxi summed up the reaction of many in the crypto community with this tweet:

We’ll work with experts in government, industry and academia to think through issues and opportunities in the metaverse. For instance, its success depends on building robust interoperability across services, so different companies’ experiences can work together. We also need to involve the human rights and civil rights communities from the start to ensure these technologies are built in a way that’s inclusive and empowering.

Facebook post, September 27

Facebook’s initial partners in the metaverse initiative include the Organisation of American States, Women in Immersive Tech, and African organisations Electric South, Africa No Filter and Imisi3D. It says it will also consult with researchers at Seoul National University, the University of Hong Kong, and the National University of Singapore on these efforts.

No Single Entity Can Rule the Metaverse

Facebook stresses it doesn’t intend to singlehandedly create or oversee the eventual metaverse. “The metaverse isn’t a single product one company can build alone,” tweeted Nick Clegg, Facebook’s Global Affairs VP. “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.”

Both Clegg and colleague Andrew Bosworth, Facebook Reality Labs VP and co-author of the company’s metaverse post, drew Twitter fire from digital media veteran Jason Kint:

Clegg and Sheryl Sandberg, Facebook’s operations chief, have effectively replaced Mark Zuckerberg as the company’s frontline promoters. In turn, last week Zuckerberg replaced his chief technology officer with Bosworth, a close friend and the company’s longtime head of hardware, in a move that underscores Facebook’s intended transition from troubled social media purveyor to futuristic tech provider.

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Banking Bitcoin Bitcoin ATMs Crypto News

El Salvador’s Bitcoin Wallet Outperforms Banks in Opening Weeks

More than two million El Salvadoreans are already actively using the Bitcoin wallet Chivo, according to the president of the Central American republic.

In just three weeks since bitcoin (BTC) officially became legal tender in El Salvador, roughly one-third of the population is using the wallet.

On legalising BTC, President Nakib Bukele promised locals they could receive US$30 worth of the asset if they downloaded a Chivo wallet. Despite technical issues with the app’s launch, engagement levels show there are now more users than there are bank account holders in El Salvador.

It’s Been a Bumpy Roll-Out

The roll-out of El Salvador’s brave new bitcoin world has not been without its pitfalls. Just over a week after BTC was legalised, protesters set fire to a Chivo ATM machine in the Plaza Gerardo Barrios, located in the nation’s capital city centre. The September 15 pro-democracy demonstration coincided with the bicentenary of El Salvadorean independence.

Three times this month, the government has “bought the dip” as the price of bitcoin fluctuated and it now has an accumulated stash of 700 BTC. The practice has attracted its share of critics, with economist and long-term gold proponent Peter Schiff warning: “Be careful what you wish for. The dip may end up being a much larger plunge than you expect.”

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Crypto Art Crypto News Ethereum NFTs

Time Magazine NFT Disaster Highlights Problem with Mint Bots

When Time magazine announced a new collection of NFTs offering “unlimited access” to its website throughout 2023, all 4,676 tokens tied to the digital artworks sold out in minutes.

But the sale rush also clogged the Ethereum blockchain, sending gas fees through the roof. So much so that buyers spent almost four times as much on transaction fees as they did on the NFTs themselves.

Dubbed “TIMEPieces”, each token in the collection was priced at .1 ETH, or around US$310. But because of the exorbitant transaction fees, one address paid US$70,000 for just 10 Time NFTs.

Scalping Arrives in the Crypto Space

In a mirror image of what happens when highly sought-after concert tickets are snapped up by automated “bots” and on-sold at inflated prices (otherwise known as “scalping”), the 100 addresses with the most NFTs now own around 24 percent of the total minted supply.

The Ethereum blockchain complicates the issue with what it calls a “priority fee”, an incentive payment to miners to accept their transactions ahead of other users who haven’t put up as much cash. Users who can afford those fees can effectively jump the queue as too many people try to use the network at once, causing it to crash.

Buyers Don’t Know What They’ve Bought

The ultimate irony with the NFTs in Time’s collection is that they simply point to a red Time logo rather than an actual digital artwork, so at the time of writing buyers still didn’t know exactly what they’d bought.

With masterful understatement, TIME Inc president Keith Grossman said that the high fees and inequitable distribution of Time‘s NFTs were probably “not ideal”.

I think we learned a lot about gas in general. There are things that you can’t control … in the gas space. We’re going to make sure that the next time that we do this, everything that we have seen that went wrong, or that didn’t go as we planned, is fixed.

Keith Grossman, president, TIME Inc

In June this year, US television news network CNN showed Time how it’s done by sharing “moments” from its archives as NFTs. CNN used the Flow blockchain, which seems to have handled the demand far more comfortably than Ethereum did in Time‘s case.

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Crypto Art Crypto News NFTs

Crypto Twitter Dunks on NBA Star’s Cheap NFT Stunt

When Houston Rockets NBA player John Wall announced he was releasing a line of “Baby Baller” non-fungible tokens (NFTs) to raise US$100,000 for charity and the “Ballers community”, sharp-eyed social media users noticed the artwork’s background looked to have been lifted from popular online video game Fortnite.

The design team behind Wall’s NFTs was most likely responsible for the apparent deception after Wall posted a preview of the tokenised artwork on Twitter.

The contentious image, from season 5 of Fortnite by Epic Games, shows a basketball court adjacent to a building near a grove of palm trees. Though Wall’s preview included one of the Baby Ballers on the court spinning a basketball on his finger, many commented that the artwork looked like a lazy attempt to get into the NFT game.

“If you’re putting a 600 ETH [US$1.7 million] valuation on your project, you might want to make sure all your art is unique,” commented Twitter user hotlneblng.

Potential Legal Issues for Using Non-Original Artwork

Others warned of potential legal issues if Wall’s team didn’t secure Epic Games’ permission to use the background image. While the company website allows users to create fan art and other content with “no commercial objective”, most other use cases are prohibited.

Crypto Twitter user Ox_fxnction, an NFT creator and collector, defended the artists behind more reputable digital creations:

Celebs really think they can come into an industry they know nothing about, never interact with the community, then launch a scam project they’ll abandon in three months?

Twitter user Ox_fxnction, an NFT creator and collector

Not the First Time NFT Artwork Has Been Filched

Wall’s NFT creation is not the first instance of appropriating art in the crypto space. Earlier this month, Dan Hindes, creator of an indie game named Wildfire, accused the team behind ‘Epic Hero Battles’ of stealing his artwork. Hindes later reported the creation had been removed, with the team blaming a web developer for the alleged error.

In a related story reported by Crypto News Australia on September 7, the US National Football League (NFL) has banned its teams from selling NFTs or sponsorships to cryptocurrency trading firms, although the ruling does not seem to apply to specific players.

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Australia Blockchain Crypto News

Blockchain Jobs to Attract Top Tech Talent to Australia in 2022

Almost one in eight applications under Australia’s Global Talent Visa Program relate directly to the financial services and fintech sector, which offers roles in IT biochemistry, digital health, resource robotics and, most importantly for the local crypto industry, blockchain.

The program attracted 9,584 migrants in the 2020-2021 year as the government seeks those with clearly delineated skills to help the country rebound from Covid-19 and drive its economic recovery.

Of those 9,584 applications, 7,375 came from migrants already in Australia while 2,209 came from outside the country.

Delivering a full program meant drawing on the pool of onshore applicants due to global Covid-19 restrictions. This has been very successful given the difficult circumstances this year. We will continue to give priority to skilled visas that drive economic growth, job creation and investment in Australia.

Alex Hawke, Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs

To qualify for the program, candidates need to be highly skilled in one of 10 target sectors, including fintech. They must provide evidence they would be an asset to Australia, and have a recognised organisation or individual in the country nominate them as a global talent.

The largest source citizenship countries of migrants in 2020-2021 were China (22,207 places), India (21,791), and the UK (12,703). In the upcoming year, the migration program has a planning level of 160,000 places and applicants will be able to move within the skill stream to provide flexibility.

Momentum Continues Despite Recent Market Correction

Massive amounts of capital have been pouring into blockchain and cryptocurrency companies from venture capital and direct investment in recent months, and the momentum has continued despite the recent crypto market correction.

As the crypto industry continues to flourish, industry groups are stepping up efforts to support the ecosystem. Blockchain is one of the most in-demand skills, according to LinkedIn, but there is a gap between available jobs and qualified talent.

According to a recent report, blockchain technology has boomed in recent years and organisations need to expand their hiring policies to meet demand. As reported by Crypto News Australia in May, TAFE Queensland is leading the world in blockchain education with Australia’s first registered Diploma of Applied Blockchain.

Last month, NSW Senator Andrew Bragg pushed for the provision of industry incentives for new investors to create more job opportunities for Australians in the crypto sector.

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Bitcoin Bitcoin Mining Crypto News

El Salvador Buys the Dip Again, Now Owns 700 BTC

For the third time this month, El Salvador’s President Nayib Bukele has “bought the dip”, adding another 150 bitcoins to the Central American republic’s stash of 550.

The bitcoin price was around US$45,700 at the time of Bukele’s tweet announcing the latest purchase, down from earlier highs near US$50,000. “They can never beat you if you buy the dips,” Bukele told the El Salvadorean media.

El Salvador Starts With 200 BTC, Adds 500 More

On September 6, the day before bitcoin officially became legal tender in El Salvador, Bukele announced his government had bought 200 BTC, adding to its initial reserve of 200. Thus El Salvador became the first country in the world to publicly put bitcoin on its balance sheet.

After bitcoin was declared legal tender in El Salvador the next day, its price declined from around US$51,000 to $43,000 and Bukele announced that El Salvador had again bought the dip. That bumped up the country’s total bitcoin reserves from 400 to 550 BTC.

The latest purchase on September 20 took El Salvador’s bitcoin reserves to 700 BTC, with the price at US$40,683 at the time of writing.

After El Salvador, among interested second nations to publicly adopt bitcoin and flag bitcoin mining are Laos and Ukraine. Bitcoiners are watching and waiting to see who will be next to adopt bitcoin as nations opt to either compete or be left behind.

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Bitcoin Mining Crypto News

Bitcoin Mining Supports Renewable Energy: Expert Explains Why Governments Need to Tax Carbon Emissions

In a recent video, Bitcoin advocate, tech entrepreneur and author Andreas M. Antonopoulos explains the correlation between bitcoin mining’s energy consumption and environmental regulation, and why “bitcoin isn’t the villain”.

Entitled The Real Truth About Bitcoin’s Energy Usage, the video prosecutes a case for why governments need to tax carbon emissions to subsidise energy production and thus enable bitcoin mining.

Andreas M. Antonopoulos. Source: peakd.com

“What both critics and supporters of bitcoin mining try to ignore is the fact that miners are anonymous,” Antonopoulos says in the video. “We don’t know exactly where the miners are, and what electricity they use.”

Antonopoulos states the obvious when he says mining can take place anywhere there is electricity, though the primary driver is how much that electricity costs. If it’s cheap, then miners will be attracted to it.

Waste Energy is the Cheapest Form of Electricity

“The cheapest form of electricity is waste energy, whether it be from the flaring of gas, hydro-electric, solar or wind, and it can be provided at very low cost,” Antonopoulos says. He might have added to that list geothermal energy from volcanoes and the like, which countries from Iceland to El Salvador (volcano mining) are already harnessing.

“If you have a government that is unconcerned about climate change and carbon output, and they don’t either regulate production to prevent pollution or tax the production of carbon, then bitcoin miners will locate there to consume that energy too,” Antonopoulos says.

“But if you tax carbon emissions, then a polluting energy source is no longer profitable to miners. The electricity cost is too high, forcing miners to migrate to places where there is renewable energy.

“It’s really not about demand. It’s about the quality of energy production. If governments regulate and tax carbon, then bitcoin demand actually supports and incentivises, and in a way subsidises, the installation of renewable energy.”

Bitcoin is neither good nor bad. It’s simply a demand for energy, and if it’s matched with politics that are environmentally friendly, then bitcoin mining is essentially green. Governments should be focused on having the political will to reduce pollution and damage to the environment. Bitcoin isn’t the villain here.

Andreas M. Antonopoulos, Bitcoin advocate, tech entrepreneur and author

In July, more than 25 bitcoin mining companies joined forces with the greening of bitcoin their common aim. This took place under the auspices of the Bitcoin Mining Council (BMC), founded by MicroStrategy CEO Michael Saylor and backed by the likes of Galaxy Digital and Hive Blockchain.

Categories
Crypto News DeFi Hackers Tokens

SushiSwap Hacked for $3M but Funds Returned Almost Immediately

A mystery rogue developer who allegedly drained 864.8 ETH (US$3 million) from a MISO auction has returned the funds to the original token contract.

SushiSwap’s token launch platform suffered a supply chain attack last week that targeted its ‘Jay Pegs Auto Mart’ auction contract.

The exploit was first identified on September 17 by Sushi’s CTO Joseph Delong, who tweeted a link to the transaction that drained the funds from the protocol.

According to Delong, an anonymous contractor injected malicious code into the MISO front end, replacing the original contract for the Jay Pegs Auto Mart token auction – a parody NFT project imitating the value of a 2007 Kia – with a personal Ethereum address. A total of 864.8 ETH was transferred to the address, but no other auctions were affected.

Threat of Legal Action Prompts Return of Funds

In a string of since-deleted tweets, Delong said that Sushi had “reason to believe” the attacker was eratos1122, a pseudonymous developer who worked with Sushi and other DeFi projects. Delong put up a trail of transactions linked to the hacker’s original address and an ultimatum was also posted threatening the hacker with legal action if the funds weren’t reinstated.

A couple of hours later, the hacker returned 865 ETH to the original MISO contract. Data from Etherscan showed that the hacker’s address was almost completely empty, with Delong himself confirming the news on Twitter.

Accused Developer Threatens Retaliation

It’s still not clear who the attacker was and Delong’s original tweets accusing the former MISO developer have been deleted. The accused person threatened to release some of the MISO code he was working on in the absence of an apology from Sushi and Delong.

While many saw this as a clear sign of the developer’s involvement in the incident, neither Sushi nor any of its founders have commented further on the issue.

Some among the crypto community have slated Sushi and Delong for their handling of the situation. With the protocol mostly built by anonymous developers, making accusations without a proper investigation has negatively affected Sushi’s reputation.

Just last month, a collective effort from the crypto community saved SushiSwap’s token fundraising platform from a potential US$350 million heist.

Almost simultaneous with the MISO exploit, SUSHI gained 23 percent in 24 hours following a growth spurt for decentralised exchange tokens (DEX).

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Crime Crypto Wallets Hackers

Apple Faces $5 Million Class Action Lawsuit Over Fake Wallet That Led to Crypto Theft

Apple is facing a US$5 million class-action lawsuit from crypto investors after one of its applications allegedly enabled hackers to steal their coins.

The suit levels accusations of negligence, fraud and several computer-specific privacy torts against Apple. It details how hackers planted a phishing application disguised as a crypto wallet called “Toast Plus” in the tech giant’s App Store and lured unwitting users into installing a criminal portal on their devices.

For all intents and purposes, the app resembled a version of popular crypto wallet Toast Wallet but had no connection to it other than sharing a similar name.

According to the suit – filed on behalf of first plaintiff Hadona Diep – Apple is liable for all victims’ losses due to its failure to vet the application before placing it on the App Store. The compensation sought is specified in the complaint as upwards of US$5 million.

Diep, a resident of Maryland who describes herself as a “full-time cyber-security IT professional”, linked her private XRP key or seed phrase into Toast Plus only to later discover her crypto assets – a total of 474 Ripple (XRP) coins – had been drained.

Court documents show that as well as compensation, all class-action plaintiffs demand that Apple be prevented from allowing similar schemes to operate in its App Store in future.

Apple User Agreement Disclaimers Do Not Apply

Apple has yet to respond to the lawsuit or make any public comment on the matter, but it seems the disclaimers in its user agreement don’t apply in this case. The fact that Toast Plus was not an actual application, but instead a medium for the commission of fraud, makes any existing contract using it as subject matter void.

As the lawsuit points out:

While the App Store does have terms and conditions, including limitations on liability, those terms and conditions are the product of adhesion, in that consumers have no other practical ability to access applications for iPhones and iPads if they do not use the App Store; those terms and conditions are therefore not applicable to this case.

Class-action complaint, Diep v Apple Inc, Maryland District Court

Just last month, fake Ronin wallets were reported to be circulating on Google and Apple app stores. The bogus wallets were designed to trick users into giving up their account information, only to find their funds or collectibles removed soon thereafter.

Also last month, Apple announced the settlement of a separate class-action suit filed by US-based software developers, promising better terms for those who make the software that iPhone users run.

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Charity Crypto Art Crypto News NFTs

Freddie Mercury NFTs Go On Sale for AIDS Charity

Four non-fungible token (NFT) artworks inspired by Freddie Mercury are to be auctioned off for charity to mark what would have been the late Queen singer’s 75th birthday.

The quartet of works by transatlantic artists Blake Kathryn, Chad Knight (US), Mat Maitland and MBSJQ (UK) will be sold in a timed auction on digital art marketplace SuperRare over 75 hours from September 20, according to the organisers.

Three are portraits of Mercury while the fourth is a dreamlike depiction of a white grand piano with a crown on its stool, surrounded by a pond of swimming goldfish (see video below).

Proceeds will go the Mercury Phoenix Trust, an AIDS charity established by Queen founding members Brian May and Roger Taylor and band manager Jim Beach in the singer’s memory.

The collection is curated by LA-based 6 Agency, whose co-founder Georgio Constantinou commented:

Six was honoured to curate an incredible collection of artists to celebrate the life and impact of Freddie Mercury. After meeting with the Mercury Phoenix Trust, we knew that if Freddie were alive today, he would be excited about the creative potential of the NFT space.

Georgio Constantinou, co-founder, Six Agency

Mercury, who studied graphic art and design before joining Queen in 1970, would have turned 75 on September 5. He died from AIDS-related pneumonia in 1991.

Mercury Was Fully Qualified When It Came to Art Appreciation

Before joining Queen, Mercury attained a degree in graphic art and design and later became an avid collector of classical and contemporary art and glass works. He was recognised as having what experts considered one of the world’s finest collections of Japanese antique woodblock prints.

The singer left a very simple creative brief to the world on his passing: “You can do whatever you want with my work, just never make me boring.” This brief was given to the four digital artists for each to create an NFT artwork inspired by different aspects of Mercury’s flamboyant persona.

The auction goes live at 0800 hrs on September 20 and the collection can be viewed at www.superrare.com/freddiemercury

As well as raising money for charity, NFTs are also being sold in support of wildlife conservation, as Crypto News Australia reported last month.