Categories
Facebook Gaming Social media Virtual Reality

Facebook Promises 10,000 Jobs For Its ‘Metaverse’, but Users Aren’t Buying It

Facebook recently announced that over the next five years it plans to hire 10,000 new employees in specialised fields to start building its metaverse. However, many are calling on the multinational tech company to instead shift its efforts toward creating a safer, more trusted and responsible social network.

According to an official blog post on October 17, Facebook is full steam ahead for its metaverse project. To make this dream a reality, the company will need many more staff with specialised skills. To this end, it will be offering 10,000 new jobs across Europe alone.

Over the next five years, Facebook is looking to find new recruits for roles varying from software engineering to product design, and associated business functions. Many jobs are expected to be remote, which should appeal to a wide variety of EU residents.

Facebook’s global business group vice-president, Nicola Mendelsohn, stated in an interview that “these 10,000 highly skilled jobs are really, for us, going to put Europeans at the heart of our plans for the company’s future”.

Facebook’s Metaverse Will Be ‘Open and Interoperable’

According to Mendelsohn, no single company will own the metaverse. “It’s going to be like the internet – the key feature(s) will be openness and interoperability,” she said. The sentiment stands in stark contrast to the reputation Facebook has garnered, for years, as a not very transparent centralised entity.

Founder Mark Zuckerberg has described the metaverse as an “embodied internet” which will unlock access to “new creative, social, and economic opportunities” for all those who participate. With the aim being that “Europeans will be shaping it right from the start”.

A metaverse is an online world where people can game, work and communicate in a virtual environment, often using VR and AR technologies. In an interview with the BBC, Verity McIntosh, a VR expert at the University of the West of England, stated that:

Part of the reason Facebook is so heavily invested in VR/AR is that the granularity of data available when users interact on these platforms is an order of magnitude higher than on screen-based media […] it’s not just about where I click and what I choose to share, it’s about where I choose to go, how I stand, what I look at for longest, the subtle ways that I physically move my body and react to certain stimuli. It’s a direct route to my subconscious, and that is gold to a data capitalist.

Verity McIntosh, VR expert, University of the West of England

Doubts have previously been voiced about Facebook’s US$50 million investment to build a ‘Responsible Metaverse’, as reported by Crypto News Australia last month.

Some Say Facebook Should Focus Its Attention on More Pressing Matters

Cybersecurity expert Jake Moore told the Daily Mail that there is no doubt the metaverse will make serious amounts of money, but that the current Facebook platform “clearly needs attention” as to how well the platform deals with online abuse and the way misinformation is currently spread. 

Facebook has made building the metaverse one of its big priorities. However, many people feel that they should be focusing their efforts elsewhere. As Ben Sizer, a software engineer from Nottingham, UK, tweeted: “Facebook is a company that has roughly 15,000 moderators who are mostly underpaid outsourcers.” 

The metaverse announcement comes as the company deals with the fallout of a damaging scandal, major outages of its services, and calls for regulation to curb its pervasive influence. Facebook also faced a barrage of criticism after former employee Frances Haugen leaked internal studies showing that it knew its sites could be harmful to the mental health of teenagers. 

Last month, The Washington Post suggested that Facebook’s interest in the metaverse is “part of a broader push to rehabilitate the company’s reputation with policymakers and reposition [the social media giant] to shape the regulation of next-wave internet technologies”.

In April, Ireland’s Data Protection Commission launched an investigation into Facebook over a data leak of hundreds of millions of its users’ personal information. At the moment, Facebook is facing the prospect of defending itself in court, on the one hand, while trying to gain political allies through economic initiatives such as this new jobs pledge, on the other.

Categories
Australia Investing Scams Social media

ASIC Joins Telegram Groups to Warn Investors Against Pump-and-Dump Schemes

Due to the increasing activity of pump-and-dump campaigns coordinated over social media and instant messaging platforms, the Australian Securities & Investments Commission (ASIC) has started monitoring platforms to step in as an early warning system to respond to these schemes.

Last week, a 288-member group of Australian “small investors” got the shock of a lifetime when they received a message from ASIC on a private Telegram group.

The independent government regulator somehow infiltrated the aptly titled “ASX Pump Organization” group’s private messages, involving potentially illegal market tip-offs.

Pumping and dumping refers to an individual or group that buys shares and then hypes the transaction to other prospective buyers, causing the stock’s price to skyrocket. This is done so they can sell their original shares for a profit.

Members of “ASX Pump Organization” tried to persuade others in the group to buy stocks in YPB Group, a NSW-based technology company.

ASIC Warns of Illegal Financial Activity

According to ASIC, there has been an increase in the number of Australians using social media forums, including Telegram, to coordinate pump-and-dump activities in the sharemarket. On September 23, ASIC published a warning about a “concerning trend” of social media groups engaging in “blatant” pump-and-dump campaigns.

ASIC has been working closely with market operators to identify and disrupt pump-and-dump campaigns, and we will continue to target actions that threaten the integrity of markets and to take enforcement action where appropriate.

Cathie Armour, ASIC commissioner

ASIC has previously warned that pumping and dumping can “amount to market manipulation”, which carries hefty penalties since it breaches the Corporations Act. The penalties for breaking this law can be a fine of more than A$1 million and up to 15 years in prison. Crypto trading is also still on the radar, with ASIC chairman Joe Longo stating that crypto trading is still a “significant area of concern”, especially for those using unlicensed crypto companies.

The campaign is not solely focused on crypto, according to an ASIC spokesperson, but instead “the campaign is targeting listed stocks, but the messaging is relevant for all financial products, including any crypto assets that may be, or involve, financial products”.

ASIC also knows who is behind every share bought and sold on the stock market and they have recently made it very clear that they are targeting these chat forums, as well social media finfluencers who talk about financial products including stocks.

Dale Gillham, chief analyst, Wealth Within

Pump and Dump Group’s Disbelief

Many of the group’s members assumed the account to be fake; however, ASIC confirmed the validity of the now-deleted message to The Australian newspaper.

Some members even stated that:

What ASIC needs to do is go after the corporates who inside-trade and short companies all the time, and not spend valuable time here hassling 300 small investors who are doing nothing wrong by sharing stock recommendations. This has to be the biggest joke in history,

ASX Pump Organisation group member

The increase in popularity and frequency of pump-and-dump schemes comes after the r/wallstreetbets and Robinhood saga in January, which saw a major pump and dump of GameStop (GME) and AMC Entertainment (AMC) shares.

Categories
Crypto News DeFi Hackers

Another Day, Another DeFi Hack: Indexed Finance ‘Incident’ Costs Users $16 Million

The decentralised finance (DeFi) platform Indexed Finance has suffered its first hack, bleeding two of its pools of an estimated US$16 million.

The platform announced on October 15 that there was something going on affecting the DEFI5 and CC10 pools.

Rebalancing Mechanism Exploited

After further inspection, it was found that hackers had exploited a weakness in one of the mechanisms used to balance pool token weightings. The attack affected the way index pools are rebalanced, with a more detailed description supplied in a post-mortem:

Security firm PeckShield reported that the attacker had stolen 15 ETH, 226.9K UNI, 7.5K AAVE, 6.4K COMP, 845.8K CRV, 516 MKR, 45.4K SNX, 33.2K LINK, 5.2K YFI, 17.8K UMA and 131.6K BAT, totalling around US$16 million. At the moment the $16M is sitting in the attacker’s account (0xba5ed1488be60ba2facc6b66c6d6f0befba22ebe) with security firms keeping an eye out for movement.

According to the bot on Discord, the two pools that are now inaccessible have been left with US$288,000 and US$2 million in TVL, respectively.

NDX Token Drops 28%

Unsurprisingly, the protocol’s native NDX token has dumped 28 percent from US$3.35 to US$2.34 where it currently trades according to CoinMarketCap. The coin was trading at an all-time high of US$27.71 in February and is down 90 percent since then.

Those who have lost everything live in hope that the situation might resolve the way August’s Poly Network hack played out, with the hacker returning the funds and highlighting a major vulnerability.

As for compensating people who lost funds, this is – so soon after the event – still up in the air […] The core team will be discussing with the community how best to handle this situation.

Indexed Finance statement

They’ll be talking to similarly affected protocols for insights into their own approaches. It is still unclear whether the incident is a tombstone for the DeFi project or whether there will be a way to recover the funds or compensate users and restart.

Categories
Banking CBDCs Crypto News Payments Worldwide

Study Postulates: Nearly 45% of Consumers Around the World Will Use Crypto for Payments by 2023

According to a report on worldwide payments by the Capgemini Research Institute, the global leader in independent analysis, the payment industry “faces intensifying, multi-dimensional disruption” with next-gen payment methods like cryptocurrency increasing to 45 percent usage within the next two years.

Capgemini surveyed customers and industry stakeholders to provide an overview of the current global payments landscape. The research team analysed statistics from the Bank of International Settlements, the European Central Bank, the International Monetary Fund, the World Bank, and other central banks.

The report details how payment networks aim to become faster and more cost-effective. Capgemini predicts nearly 45 percent of customers will use the cryptocurrency payment method within the next one to two years due to the growing need for cross-border payments in addition to concerns about high transaction fees.

Newfound Payment Technology Drives Regulators to Mitigate Risk

The study states that the outlook for cryptocurrencies and stablecoins is “hazy”, citing the mixed reactions to crypto assets by governments and regulators around the world.

According to the report, regulators are focused on Key Regulatory and Industry Initiatives (KRIIs), which recently have been centred on customer protection and risk mitigation for new payment methods. The nature of cryptocurrency means there are very low barriers to entry – anyone, knowledgeable or not, can use the technology, creating a potential financial risk to novices as well as exposure to illicit financial activity.

Capgemini reported that Russia, India and the United Arab Emirates see potential in the adoption and regulation of crypto assets and stablecoins. Meanwhile, the study also noted other countries such as China and Egypt have moved to ban crypto assets due to the rising risk of illicit transactions.

CBDCs as an Alternative to Private Cryptocurrencies

Central banks want to leverage blockchain technology such as smart contracts in order to better manage monetary policy functions like money supply, interest rates, and direct stimulus payments to individuals. Therefore CBDCs have become a trending topic for banks and regulators alike.

CBDCs aim to facilitate frictionless payments and create a gateway for the unbanked to join the digital economy as the payments landscape evolves. Considering the potential benefits of CBDCs, several central banks have started experimenting with the technology.

Currently, the main challenges for CBDCs are that the ecosystem requires collaboration with payment infrastructure companies and various other entities. With the current hype and speculation, it’s important that the necessary action is taken with regards to “implementation, migration, tax structures, settlement speed, governing regulation, integration of players, and checks and controls”.

If introduced, retail CBDCs should be developed and implemented through public/private sector collaboration from the start to ensure that deployment complements other payment methods and leverages payment service providers’ expertise, market knowledge, and customer relationships.

Etienne Goosse, director general, European Payments Council, Belgium

It may yet take years for the CBDC concept to transition to reality, according to the Capgemini study:

It’s too soon to count on nascent central bank digital currency (CBDC) as an alternative to unregulated cryptocurrencies or an additional pathway to financial inclusion.

Capgemini Research Institute

Crypto Credit Cards Spurring Adoption

Currently, major names including PayPal, Yum brands and Coca-Cola accept payments in crypto, but a major driving factor is crypto-linked cards “fuelled by global card player initiatives to create a fertile crypto-payment ecosystem”.

Cryptocurrency market volatility indicates a lack of maturity. Still, crypto-linked cards are taking the lead in the crypto-payments space.

Capgemini Research Institute
Categories
Bitcoin Crypto News

Bitcoin Up 10% in a Week, Smashes 5-Month High and Soars Past A$75k

Bitcoin (BTC) is encroaching on its all-time high, with some calling this month “Uptober”. The digital asset has moved nearly 12 percent in just over a week and has around 9 percent to go before reaching its previous ATH of A$83,000.

With a host of driving factors coming together, the fourth quarter looks promising for the crypto industry, but mostly Bitcoin (BTC), which analysts are now confidently comparing to the bull runs of 2013 and 2017.

During the past week, Bitcoin has been on a run, making some of the most noteworthy gains in months. At the time of writing it was floating around A$77,000, leaving many of the altcoins behind as BTC dominance increases.

The bitcoin supply squeeze is also contributing to the gain in momentum, pushing BTC back to a US$1 trillion asset.

Welcome to Bitcoin Season

Bitcoin’s market capitalisation is well above US$1.050 trillion. Dominance over the altcoins reached 44 percent on October 13 as most of them have stalled.

On-chain analyst William Clemente says Bitcoin’s outlook for the final quarter of this year remains “highly bullish”.

Macro: highly bullish. Supply dynamics (HODLing behaviour) remain strong, hash coming back on the network, retail still out of the market. Still standing on my thesis for a strong Q4.

William Clemente

However, on-chain analysis shows there are multiple factors that could lead to short-term BTC volatility, such as whales taking profits and highly liquid entities taking possession of BTC.

Underperforming altcoins led to predictions of a “Bitcoin season” before some form of alt season re-emerges later. In the meantime altcoins have been bleeding out, with most down around 10-20 percent versus the BTC pair since October 10.

The situation is particularly visible in Ether (ETH), the largest altcoin by market capitalisation, now at its lowest against BTC since the start of August. According to Michaël van de Poppe, CEO and founder of crypto consultancy and education platform Eight, “ETH/BTC [is] breaking down, while Bitcoin is consolidating”.

Binance Coin, Solana, Polkadot, Cardano, Ripple and Avalanche have marked minor losses against the US dollar, while DOGE, LUNA and UNI have dropped even more.

Cryptocurrency Market Overview. Source: coin360.com

Bitcoin Fundamentals Hitting New Records

With the hash rate and difficulty all but recovered and nearing all-time highs, fresh data shows that other aspects of Bitcoin are setting records of their own.

Categories
Banking Bitcoin Crypto News

Vitalik Buterin Says El Salvador’s Bitcoin Law is ‘Opposed to Crypto’s Idea of Freedom’

Vitalik Buterin has responded to a post regarding the Salvadorean Bitcoin rollout, calling it “contrary to the ideals of freedom” that the crypto space embodies as well as highlighting some of his own issues on the rollout.

Ethereum (ETH) co-founder Buterin commented on a post in r/CryptoCurrency Reddit titled “Unpopular opinion: El Salvador President Mr Nayab [sic] Bukele should not be praised by Crypto community”. Buterin said there was “nothing unpopular about this opinion”, adding that by “making it mandatory for businesses to accept a specific cryptocurrency”, [El Salvador is] going “contrary to the ideals of freedom that are supposed to be so important to the crypto space”.

According to article 7 of El Salvador’s Bitcoin Law, “Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service […] Those who, by evident and notorious fact, do not have access to the technologies that allow them to carry out transactions in bitcoin are excluded from the obligation.”

As it stands there seems to be some mismatch between the text of the law and what Salvadorean president Bukele wrote in a Twitter thread about the use of bitcoin as legal tender, which was intended to be “totally optional” and that the government would not force any of the nation’s residents to receive bitcoin as a form of payment.

Buterin may also be referring to the fact that only BTC is accepted as legal tender and not a more expansive list of cryptocurrencies. As one Reddit user asked, would he say the same about Ethereum if El Salvador had selected ether (ETH) as its sole digital legal tender?

Bitcoin Maximalists Support President Bukele’s Decisions

Buterin’s post added that: “This tactic of pushing BTC to millions of people in El Salvador at the same time with almost no attempt at prior education is reckless, and risks a large number of innocent people getting hacked or scammed. Shame on everyone (OK, fine, I’ll call out the main people responsible: shame on Bitcoin maximalists) who are uncritically praising him.”

The decision to make bitcoin legal tender in El Salvador was received very well by bitcoin maximalists, individuals who believe bitcoin is the be-all and end-all of the crypto world.

He’s [Bukele] a human being like the rest of us, he just loves being praised by people he considers powerful (ie, Americans). Bitcoin maximalists are a very easy community to get to praise you: you just have to be in a position of power and do or say nice things about them and their coin.

Vitalik Buterin

One Salvadorean business owner, requesting anonymity, told Decrypt: “It crushes my soul to see Bitcoin maximalists around the world cheering this when, if they actually sat down and read the law and regulations, it is completely opposite to everything they preach.”

An Adjustment to Start Using Bitcoin

At this month’s TOKEN2049 conference in London, Blockchain.com co-founder Nicolas Cary said during a panel discussion: “I think there’s some valid criticisms of how the program [has been] rolled out in El Salvador in terms of being top down. [A] main ethos of crypto is that there’s really grassroots adoption, and people are doing it voluntarily.”

Multiple surveys in the country have found that the majority of Salvadoreans are not in favour of bitcoin as legal tender.

Other countries may yet follow El Salvador’s example. Earlier this month, Lord Fusitu’a, a member of the Tongan parliament, made a case for the Pacific island nation to accept bitcoin as legal tender in order to cut down on remittances costs.

Categories
Banking Blockchain Crypto News Payments Stablecoins Stellar

Payment Juggernaut Partners with Stellar and USDC for Blockchain-Based Payments

MoneyGram, one of the major global remittance services, has partnered with the Stellar Foundation (XLM) to provide a bridge between digital assets and local currencies for consumers, with United Texas Bank serving as the settlement bank between USDC issuer Circle and MoneyGram.

A Bridge From Traditional Finance to Digital Assets

On October 6, MoneyGram announced it would be using the Stellar blockchain to facilitate instant and cheap transactions. The bridge will allow “money transfers and enables near-instant settlement in USDC, a stablecoin pegged to the US dollar developed by Circle”.

The pilot project started in the fourth quarter of this year and will be rolled out slowly during early 2022. The blockchain-enabled bridge for USDC stablecoins and local currencies will connect MoneyGram’s 150 million or so consumers to the blockchain.

Denelle Dixon, CEO and executive director of the Stellar Development Foundation, stated that “we’re trying to go as big as we can”.

Working with MoneyGram allows end consumers to have on- and off-ramps everywhere that MoneyGram’s vast agent network supports it. So this is just transformational in terms of being able to exchange crypto for fiat and fiat for crypto,

Denelle Dixon, CEO and executive director, Stellar Development Foundation

This means that any digital wallet connected to the Stellar network can leverage any of MoneyGram’s 400,000 locations across the globe to send and receive remittances in various fiat currencies.

MoneyGram has joined Visa, which is also in the process of creating a blockchain-based bridge for international Central Bank Digital Currencies (CBDCs) to increase the ease, cost and speed with which people can make payments.

Ripple’s Relationship with MoneyGram Winding Down

Ripple (XRP) has had a longstanding relationship with MoneyGram that started in 2019, but it has been winding down since the US Securities and Exchange Commission filed suit against Ripple in December 2020, saying the firm had violated federal securities laws.

However, MoneyGram’s chairman and CEO Alex Holmes has stated that the partnership with Stellar is an entirely different animal from the relationship MoneyGram had with Ripple, which leveraged the crypto firm’s on-demand liquidity (ODL) to facilitate foreign exchange (FX) trading.

The relationship MoneyGram and Stellar have is based around the direct link between consumer payments. According to Holmes, the challenge is to create a foreign exchange market in a completely new and different environment.

United Texas Bank to Facilitate Crypto Settlements

Banks are quite skittish to start dealing with crypto due to the murky regulatory space in which the industry now finds itself. Holmes stated that “United Texas bank is an established bank here and very focused on the opportunities in the crypto space. Not every bank is willing to step into the crypto world, and I think it says a lot about how progressive that bank is trying to be.”

Unfortunately, a lot of regulation ends up being a look back. I think the blockchain and digital asset worlds [have] really accelerated, and now I see a lot of regulators looking to catch up.

Alex Holmes, chairman and CEO, MoneyGram
Categories
Crypto News DeFi

DeFi Protocol Compound Finance Looks to Restore Confidence by Passing Repair Bug

Compound Finance (COMP), the fifth-largest DeFi pool, has applied Proposal 064 to fix a bug in the distribution mechanism that has been plaguing it for the past week.

Bug Takes Its Toll

The lending protocol had released Proposal 062 over that period, which caused a bug in the COMP distribution mechanism and lost it an estimated US$80 million in the process.

The protocol has since passed Proposal 064, titled “Fix COMP Accurial Bug”, that aims to “patch the bug introduced in Proposal 062 and pessimistically allow COMP reward withdrawals until the bad COMP accruals can be fixed”.

Voting by COMP community to pass Proposal 064.

But before the next patch could be applied, a malicious entity exploited the drip() functionality, transferring US$68.8m from the reservoir to the Comptroller, which increases the pool for incorrectly distributed COMP rewards, allowing the hacker to get away with some more COMP before the issue was resolved.

Long Governance Process Drags Out Fixing Time

Attempts to rectify the crisis were immediately instigated through Proposal 063, which took seven days to reach production due to the protocol’s governance procedure of reviewing, voting and time lock, which lasts seven days.

Proposal 063 by @Arr00c@tylerether and other community members “prevents further COMP from being distributed until the correct logic is restored, but causes issues for protocols that integrated with Compound and required the claim functionality”. Soon after, Proposal 064 followed:

No Rewards Until Issue Fully Resolved

Users who interacted with the cTUSD, cMKR, cSUSHI, cYFI, cAAVE, and cSAI markets while the bug was active will not be able to claim rewards from their entitled staked COMP tokens until after the issue is fully resolved.

The update also advised that “after this proposal passes, we’ll have a state where we’ll be able to compute an exhaustive list of users with bad COMP accrual values. From there, we’ll submit another proposal to fix the bad COMP accrual values and return everything to normal.”

Proposal 064 was expected to resolve Compound’s accrual issues by October 9 but the lost funds can only be reclaimed on an individual basis, meaning it’s a decision left to each user’s moral discretion whether or not to return the funds.

Categories
Crypto News Fantasy Sports NFTs Sports

Sorare Fantasy Football Partners with German Bundesliga

Sorare is back at it again, this time signing another partnership deal with the major German football league, Bundesliga, as well as Bundesliga 2. The deal will also debut the video-type Bundesliga “NFT Moments” on the platform.

Deal Follows Partnership with La Liga

Sorare, one of the major players in the non-fungible token (NFT) sports space, has added its second high-profile football league to a growing list of partners. The deal will allow fans to play and trade with new NFTs from Bundesliga (first division) and Bundesliga 2 (second division), with the collectibles poised to launch by the end of this month.

After announcing its partnership with La Liga on September 9 and with its newest German addition, Sorare now represents over 200 clubs, a major breakthrough as it approaches its goal of partnering with the top 20 leagues in the world.

The Bundesliga is one of the best leagues in the world, home to some of the most exciting clubs and footballers on Earth […] We are very proud to partner with them to launch our first NFT Moments – we are building the future of fandom together.

Nicolas Julia, Sorare CEO

Bundesliga Moments Launch in 2022

Sorare Bundesliga Moments will be launched in 2022 with the company also stating that “if there is a moment from the current Bundesliga season that you think deserves its [own] NFT, let us know on Twitter using #SorareMoments”, giving fans direct input into the minting of NFTs.

Player Pool Expands Along With the Company

Players who want to experiment with their fantasy football teams now have many to pick from with the addition of world-class football clubs such as Borussia Dortmund, RB Leipzig, Borussia Mönchengladbach, Wolfsburg and Union Berlin. The platform also stated that at the moment there are no immediate plans to release Bundesliga 2 cards.

The Bundesliga holds the accolade for the highest average attendance in football stadiums. The German football league generated approximately US$4.5 billion in revenue during its 2020-21 season, reflecting fans’ commitment to their favourite clubs.

As the company expands, adding more clubs to its list of partners in Sorare’s fantasy football game also expands the pool of players users can choose from to add to their fantasy football teams. Last month, Sorare raised US$680 million in a series B funding round for the project.

We are delighted to be partners with such a dynamic and exciting company. NFTs are a digital technology of the future that should not be underestimated – especially in the sport sector. I am therefore convinced that this collaboration will give rise to further impulses.

Robert Klein, CEO, Bundesliga International
Categories
Crypto News NFTs Scams

Developer Behind ‘Evolved Apes’ NFT Project Makes Off With $2.7 Million

A non-fungible token (NFT) project on the OpenSea marketplace has been hit by a rug-pull of note, with the developer running away with US$2.7 million and leaving the community to rebuild from the ruins.

Found on the OpenSea NFT marketplace, the project is described as “a collection of 10,000 unique NFTs trapped inside a lawless land […] fighting for survival, only the strongest ape will prevail”, referring to the project’s hyped fighting game, which never materialised.

A week after the launch of the Evolved Apes NFT project, the developer, aptly named Evil Ape, vanished along with the project’s funds, which were siphoned in multiple transactions.

The Great NFT Rug Pull

The funds, attained from the initial public sale of NFTs and commissions on the secondary market, which were meant for project-related expenses, were stolen by the developer. Along with the disappearance of 798 ETH (US$2.7 million), the project’s official Twitter page and website have also been taken down.

An investor in the project who chose to remain anonymous stated that there were several red flags after the public sale that took place on September 24. Some of the main leaders vanished and communication with the community became conspicuous and unprofessional.

Investors active on the project’s Discord server contacted Mike_Cryptobull, who spent 3 ETH (around US$10,200) on 20 Evolved Apes, and was appointed as their existing investigator for the situation. According to Mike_Cryptobull, winners of the social media competition never received their prizes and the artists went unpaid.

What has happened is that Evil Ape has washed his hands of the project, taking away the wallet with all the ETH from minting that was to be used for everything from paying the artist, paying out cash giveaways, paying for marketing, paying for rarity tools, developing the game and everything else in between.

Mike_Cryptobull

Community Fights Back 

Even though the money is gone, the Evolved Apes community plans to carry on. Unlike with cryptocurrencies, NFT rug pulls leave behind JPEGs and a narrative surrounding them. Mike_Cryptobull explained in the report that he and others would build a new project called Fight Back Apes out of the ashes of Evolved Apes.

The new community notified Evolved Apes holders that they would be automatically approved for a Fight Back Apes token linked with the art from the old project:

We will become the Fight Back Apes, fighting as a community against our nemesis, Evil Ape.

Mike_Cryptobull

New Community to Use Multisig Wallet

Evolved Apes used a single signature wallet, allowing Evil Ape to manage the wallet as he saw fit without consensus from the community or other leaders. In opposition to that, Fight Back Apes stated they will be using a multi-signature wallet to ensure something similar doesn’t happen.

However, that doesn’t stop leaders from colluding and pulling a fast one again. Investors in new projects should keep in mind the golden rule of doing your own research (DYOR).