Melbourne-based Australian crypto gaming startup Immutable has this week laid off at least 20 staff, many of them core members of its NFT trading card game, Gods Unchained.
News of the redundancies hit social media when one of the game’s original developers, James Wakeham, tweeted he’d been tapped on the shoulder and was now looking for work:
Bad news, me and a bunch of people just got made redundant at Immutable. I'm a senior level game designer with 7+ years experience and 4+ years leading the design on a live service TCG. Any help with jobs would help a lot. DM me. Help me feed my cat Oscar! (Oscar not need a job) pic.twitter.com/LQVgdRmKhv
The layoffs, which affect an estimated 6 percent of Immutable X’s total workforce, were jointly announced by recently appointed chief studio officer Justin Hulog and Immutable CEO and co-founder James Ferguson. Staff on leave were given just 24 hours’ notice to attend a meeting at which the pink slips were handed out.
Exponential Growth Gives Lie to Layoffs
Despite the layoffs, Immutable X appears to be growing exponentially. A spokesperson for the company said it had more than doubled its full-time headcount from 120 at the beginning of the year to 280, with plans to reach 360 by the end of the year.
Regarding this week’s layoffs, the spokesperson added that the company had “made a difficult choice” in conducting “a small reorganisation within Gods Unchained to help better enable us to achieve our goal of creating the next generation of Web3 games”.
That said, Gods Unchained’s player base has more than halved since early April from 22,000 unique players logged into the free-to-play game down to 10,000, as per data from Cards Unchained, a privately run site tracking the game. Immutable’s cryptocurrency token, IMX, which is used to trade assets in Gods Unchained, has also seen its value fall from about US$11 in November 2021 to just above $1.
However, according to a bullish internal memo circulated among Immutable staff this week, a reallocation of resources would see the company investing in roles to enable Gods Unchained to scale “to millions of players over the next year”.
Immutable X Still Aggressively Hiring
Post-redundancies, the only remaining workers on Gods Unchained are junior and C-suite staff. However, Immutable is looking to hire a creative director and UI (user interface) designer specifically for the project, as well as listing 22 other general vacancies for remote workers across Australia.
The US Federal Trade Commission (FTC) has shared a media release indicating its intentions to sue Meta and block its acquisition of Within, a VR fitness app maker.
The lawsuit, filed in the US District Court for the Northern District of California, comes off the back of rising concerns over Meta’s plans for metaverse expansion:
FTC suing Meta over acquisition of VR fitness studio Within, stating, among other arguments "Meta would be one step closer to its ultimate goal of owning the entire ‘Metaverse.’”https://t.co/BJQG2NW9iW
The purchase of Within may not be so significant on its own; however, the FTC has concerns it could be Meta’s first step towards holding a monopoly over the metaverse:
1. The FTC is challenging Meta buying Within, a popular fitness app maker in the virtual reality space. Important to note Meta has bought 10 separate VR app firms in the last year or two. This is about stopping an ongoing roll-up.https://t.co/pIOkclH8HW
In its media release, the FTC stated that it sought to block the purchase and alleges that Meta is attempting to stifle VR fitness competition from independent studios. The commission’s final vote was 3-2 in favour of blocking the deal.
With Meta already owning ‘Beat Saber’, which many deem a fitness app, there is concern that the purchase of Within could stifle competitive innovation. However, Nikhil Shanbhag, Meta’s vice president and associate general counsel, has challenged this notion.
The idea that this acquisition would lead to anticompetitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible.
Nikhil Shanbhag, Meta vice president/associate general counsel
The FTC’s plans to prevent the purchase of Within are not the only new information to come to light this week. Meta’s latest earnings report for Q2 revealed that the tech giant’s Facebook Reality Labs (FRL) division recorded a loss of US$2.81 billion, only a slight improvement on its Q1 loss of US$2.96 billion.
Meta is seemingly not fazed by these figures. Instead, the company is focusing on establishing its metaverse sector for what it hopes will be a successful 2030s decade.
Other Metaverse Developments
Of late, there have been multiple developments regarding the metaverse and its adoption. In April, Meta announced plans to open a physical metaverse-themed store in the San Francisco Bay area. Plans for the store include wall-to-wall curved LED screens to display what users would see when using virtual reality (VR) headsets. Its overall purpose is to provide demos and show the public how VR and metaverse tech work.
This week also saw new initiatives from Sandbox creator Animoca Brands, which has announced an alliance with several prominent Web3 companies to develop a new decentralised autonomous organisation (DAO). The DAO will prioritise users’ asset ownership capabilities and return autonomy to the owners of digital assets.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. SKALE Network (SKL)
Skale SKL is described as an elastic network designed to bring scalability to Ethereum. As well as boosting transaction capacity, the decentralised project aims to reduce latency and ensure that payments can be made as cheaply as possible. SKALE Network is geared towards improving both the security and decentralisation of Ethereum-based apps. Token holders on the network are incentivised and earn rewards by helping to improve the scalability and security of the platform by serving as validators.
SKL Price Analysis
At the time of writing, SKL is ranked the 140th cryptocurrency globally and the current price is US$0.05502. Let’s take a look at the chart below for price analysis:
Since the beginning of Q2, SKL has been in a gentle downtrend. The future likely holds more stop runs and erratic volatility until the chart forms more substantial high-timeframe levels.
A retracement might uncover support near $0.04920, which is the daily high of the last swing low. The high of the wick beginning near $0.04571 may also provide support. However, bulls will likely remain wary of the current downtrend, making the low at $0.04230 the probable next bearish target.
Just above, the daily gap beginning near $0.06088 may provide resistance to bulls, possibly marking a future range high. A push through this level is likely to target the swing high near $0.06493 – perhaps running to probable resistance near $0.07044. Strength above this level may signal the start of a bullish trend, encouraging bulls to “buy the dip”.
2. Algorand (ALGO)
The Algorand ALGO blockchain is a permissionless, pure proof-of-stake blockchain protocol. Unlike proof-of-work (PoW) blockchains, where the root block must be validated by randomly selected validators (using computing power), in the pure proof-of-stake approach all of the validators are known to one another and only have to agree on the next block in order to create a new block. Algorand was invented to speed up transactions and improve efficiency in response to the slow transaction times of Bitcoin and other blockchains.
ALGO Price Analysis
At the time of writing, ALGO is ranked the 30th cryptocurrency globally and the current price is US$0.3411. Let’s take a look at the chart below for price analysis:
After creating a second equal low during last month, ALGO gained nearly 25% into resistance that starts near $0.4322.
Swing traders looking for a continuation to the nearest cluster of relatively equal highs around $0.5012 might look for bids near $0.5536. More significant resistance rests above, near $0.6025. A group of significant swing highs at $0.6410 and $0.6618 provide possible targets if this resistance breaks.
A stop run on the recent low at $0.2835 into possible support beginning near $0.2530 might see stronger bidding. This area also has a confluence with the recent monthly lows.
3. THORChain (RUNE)
ThorChain RUNE is a decentralised liquidity protocol that allows users to easily exchange cryptocurrency assets across a range of networks without losing full custody of their assets in the process. The native utility token of the THORChain platform is RUNE. This is used as the base currency in the THORChain ecosystem and is also used for platform governance and security as part of THORChain’s Sybil resistance mechanisms – since THORChain nodes must commit a minimum of 1 million RUNE to participate in its rotating consensus process.
RUNE Price Analysis
At the time of writing, RUNE is ranked the 53rd cryptocurrency globally and the current price is US$2.88. Let’s take a look at the chart below for price analysis:
RUNE has dropped 85% from its early Q2 high. It’s currently breaking down from its consolidation range formed in May and early June.
The price might find its closest resistance in an inefficiently traded area on the daily chart between $2.99 and $3.10. This level has confluence with the past week’s swing high.
The price may be forming a triple-sweep (three lower lows) before returning into its consolidation range. If so, an inefficiently traded area near $3.25 could provide another resistance. This level also shows distribution on the weekly chart near the 18 EMA.
A more extended rally could reach an inefficiently traded area on the monthly chart between $3.42 and $3.90. Yet this is less likely to happen soon, given the current bearish market conditions.
Below, $2.65 could offer support. This level is an area of inefficient trading below a daily swing low from June. It also shows accumulation on the weekly.
The following daily swing low, near $2.35, could offer the next bearish target. This level shows inefficient trading on the daily and weekly charts.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
The Australian consumer price index (CPI) has risen to 6.1 percent for the 12 months ending June 30, the country’s highest inflation level since June 2001:
— Australian Bureau of Statistics (@ABSStats) July 27, 2022
Just over a year ago, some raised alarm bells as the CPI increased to 3.8 percent. At the time, academics provided a host of reasons not to worry, and this view was supported by the Reserve Bank of Australia (RBA), which expected inflation to reduce to 1.5 percent in 2022. As it turns out, the projections were all wrong.
According to the latest report by the Australian Bureau of Statistics (ABS), the CPI has risen by 1.8 percent over the past quarter and 6.1 percent over the past year.
CPI fluctuations over the past decade. Source: ABS
Of course, the CPI metric is in itself not uncontroversial, since virtually everyone has a different rate of inflation depending on levels of income, consumption habits, location and the like.
Furthermore, when the method of calculating inflation changes, as it frequently does, it almost never results in an increase in CPI, only a decrease. Cynics would call that political expediency.
Transport, Housing Largest Contributors to CPI
Notwithstanding, a weighted average across Australia’s capital cities provides insight as to the largest overall contributors to the official CPI figure, most notably transport (13.1 percent) and housing (9 percent):
Weighted average of eight capital cities. Source: ABS
Australian Treasurer Jim Chalmers described the latest inflation figures as “confronting”, adding that things would likely get worse before improving:
These numbers are obviously for the June quarter, and there is price pressure to follow the period that we are learning more about today.
Jim Chalmers, Australian Treasurer
Given the current inflationary pressures, the RBA is expected to once again hike interest rates next week, with analysts pointing to 0.5 percent and 0.75 percent as being the most likely increases.
Crypto Market Rises
Across the pond, shortly after the US Federal Reserve increased the federal funds rate, the overall crypto market lifted from around US$970 million to just shy of US$1.05 trillion at the time of writing.
BTC and ETH both posted strong overnight gains of 9 and 12 percent respectively, amid growing signs that the broader crypto market contagion may be somewhat contained.
Nonetheless, the broader macro environment remains uncertain and highly volatile. In the short to medium-term, however, it remains to be seen whether this latest relief rally is an indicator of a market sentiment shift or merely a temporary respite from the biting crypto winter.
Entitled ‘Business in the Metaverse Economy’, the course seeks to educate students about the expanding metaverse and provide them with the tools to address issues within it:
NEWS: #WhartonExecEd has launched “Business in the Metaverse Economy," an online certificate program.
The course, which includes interactive learning experiences, is designed to help leaders develop strategies to capture value in the emerging market.
Wharton, one of the world’s leading business schools, has teamed up with consulting firm Prysm Group to design the course, taking the form of more than 50 lectures by industry faculty representatives along with six case studies. The Aresty Institute of Executive Education course has already attracted guest speakers from Adobe, Animoca Brands, R/GA, RLY Network, The New York Times, Second Life and The Wall Street Journal, among other organisations.
According to the program’s academic director, Professor Kevin Werbach:
The metaverse is a significant and broad phenomenon that is still poorly understood. We hope to equip business leaders, consultants, and entrepreneurs with an understanding of the impending opportunities the metaverse brings, as well as the practical knowledge to build solutions of value.
Kevin Werbach, academic program director, Aresty Institute of Executive Education
Australia at Investment Forefront
Wharton claims that the metaverse will become a US$13 trillion market with five billion users by 2030. In fact, research from Analysis Group estimates that as the metaverse increases in popularity, it could make a US$3 trillion global GDP contribution in its first decade.
If growth estimations are realised, a lot more investment will be needed in terms of research and development. An investment of US$100 million was recently made into the launch of the Metaverse Research and Development Centre in Melbourne that will ensure Australia is ready for when the market truly takes off.
The New York Times reports that the Kraken exchange is under investigation by the US Treasury Department’s Office of Foreign Assets Control for allegedly violating economic sanctions against Iran:
According to the NYT report, Treasury has outlined its suspicions that Kraken permits Iranian users to access its services, thereby violating US federal sanctions:
Breaking 4 mins ago: The US Treasury Dept has launched an investigation into Kraken, for potential violations of US sanctions on Iran.
My thoughts: Regulators are making moves. I'm optimistic it's for the best but there are risks this could hurt a few big players in the space.
It is alleged that five people, either associated with the company or possessing knowledge of the inquiry, came forward to share information with the newspaper. These sources requested anonymity for their own safety but discussed how Kraken allegedly allows customers from both Iran and other sanctioned countries to use its exchange despite the illegalities.
Marco Santori, Kraken’s chief legal officer, stated that his company would not comment on regulator discussions, other than saying:
Kraken has robust compliance measures in place and continues to grow its compliance team to match its business growth. Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.
Marco Santori, chief legal officer, Kraken
However, it is known that Kraken’s CEO and co-founder, Jesse Powell, has in the past stated his willingness to challenge what he deems to be “unfair regulations”. International sanctions are one such regulation.
While there is no current timeline for enforcement action, it is understood that Kraken will receive a fine.
OpenSea and Economic Sanctions
The debate surrounding crypto operations in various countries has kicked into gear this year, with leading NFT marketplace OpenSea at the centre of controversy. On March 5, both OpenSea and MetaMask users from Iran and Venezuela were blocked from making Ethereum transactions.
Both platforms cited compliance issues behind the blockage; however, it was confirmed soon after that Ethereum’s Infura cut off users to separatist areas in Ukraine, and Venezuelan users were accidentally cut off. However, the block was intentional for Iranian users.
Three days later, on March 8, OpenSea updated its list of banned countries to align with the US sanctions list, blocking North Korea, Syria and Russia, along with Iran. The decision reignited the conversation on decentralisation and sparked outrage from NFT collectors.
Anti-counterfeit tech company Security Matters will delist from the Australian Securities Exchange and merge with a SPAC (special purpose acquisition company) on the Nasdaq in a deal that will increase its value more than 14-fold:
Blockchain recycling firm SMX sees valuation skyrocket 14 fold in SPAC listing . Blockchain startup Security Matters (SMC) is listing on Nasdaq through a SPAC merger. Its valuation has increased 14 fold overnight.
The soon-to-be merged Security Matters and Nasdaq-listed Lionheart III, a new company to be known as SMX, will be registered in Ireland. Together, both companies command a pro forma equity value of US$360 million (A$518 million).
As part of the deal, Security Matters was valued at US$200 million on a pre-revenue basis – a huge increase on its A$18.3 million (US$12.7m) market capitalisation on the ASX.
Specialist in Digital Markers
Originally a blockchain startup focusing on traceability for recycling and the circular economy, Security Matters has developed a molecular marker that permanently marks solids, liquids and gases to enable identification. That marker then allows a digital twin to be stored on the blockchain, which can be used for authenticating products or providing traceability.
The company has also developed conveyor belt technology to read digital markers for sorting and recycling facilities. Its previous joint ventures include assisting Western Australia’s Perth Mint to track gold and ensure the supply chain is ESG-compliant.
Nasdaq Places Higher Value on SMX
Security Matters CEO Haggai Alon said the business had been undervalued by local investors, who still favoured natural resources-based companies. “The Nasdaq, perhaps the most liquid market in the world, emphasises technology and other high-growth sectors like ours,” Alon told the Australian Financial Review.
We are on the precipice of commercialising our technology across a number of large global markets – from gold to food and wine, to fashion, rubber and plastics – and the valuation reflects that.
According to a report by Bloomberg, the SEC is looking into whether Coinbase improperly let Americans trade digital assets that should have been registered as securities. On release of the news, Coinbase stock dropped by 20 percent but recovered shortly thereafter.
Coinbase share price. Source: Google Finance
What Are Unregistered Securities Anyway?
The term “securities” refers to tradeable financial assets, and under US securities law a company may not offer or sell securities to the public unless the offering has been registered with the SEC. Registered offerings are subject to a plethora of laws and regulations that purport to protect investors.
Full disclosure is one of the core elements required within a public listing, designed to help investors make informed choices, and this is typical not just in the US but across virtually all capital markets.
Some of the required information to be disclosed includes the history of the company and its founders, shareholding structure, financial statements, executive compensation, risk factors (both current and future), management’s explanation of operations, and any other material facts relevant to the offering.
If 90 percent of cryptocurrencies are securities, as has been alleged by SEC chairman Gary Gensler, the question then becomes whether relevant disclosures have been made and if not, who should be prosecuted – the project founders or the listing exchange?
Coinbase Denies It Lists Securities
For its part, Coinbase has previously stated that it does not list securities, arguing that:
Coinbase has a rigorous process to analyse and review each digital asset before making it available on our exchange – a process that the SEC itself has reviewed. This process includes an analysis of whether the asset could be considered to be a security, and also considers regulatory compliance and information security aspects of the asset.
Coinbase statement
It also argues that “the majority of assets that we review are not ultimately listed on Coinbase”. The company’s statement went on to criticise the SEC’s approach of “regulation by enforcement”, and stressed the need for a “concrete digital asset securities regulatory framework”.
Coinbase is now facing a SEC probe on crypto listings
They had a quarterly loss of $430 million in Q1.
The SEC has already warned that some crypto exchanges were trading against clients…
Clearly, regulators are cranking up the regulatory pressure and, given that some 20,000 tokens exist across the world, the most viable mechanism for regulation appears to be with exchanges. Centralised exchanges should no doubt be expecting increased scrutiny over the coming months.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Dash (DASH)
Dash is an open-source blockchain and cryptocurrency focused on offering a fast, cheap and decentralised global payments network. According to the project’s white paper, Dash seeks to improve on Bitcoin by providing stronger privacy and faster transactions. Dash’s governance system, or treasury, distributes 10% of the block rewards for the development of the project in a competitive and decentralised way.
DASH Price Analysis
At the time of writing, DASH is ranked the 76th cryptocurrency globally and the current price is US$44.57. Let’s take a look at the chart below for price analysis:
During Q2, DASH retraced over 70% before finding support near $43.10. Consolidation above this level has created a series of relatively equal lows, which are likely to be swept before any longer-term bullish trend begins.
In the shorter term, the price might establish support near $40.25 before running the swing high at $49.88. If this bullish move occurs, the price could reach resistance near the weekly open around $54.12, and may even sweep the swing high near $58.22.
Some support might exist at the daily gap near $43.12. A move this low would also fill the monthly gap and set the stage for a possible bullish reversal.
2. Tranchess (CHESS)
Tranchess CHESS is a yield-enhancing asset tracker with varied risk-return solutions. Tranchess provides a different risk/return matrix out of a single main fund that tracks a specific underlying asset. The name Tranchess was inspired by the game of chess, as well as the French word “Tranche”, which is often associated with tranche funds that cater to a different class of investors with varying risk appetite. Tranchess was launched on June 24, 2021. The project leverages on smart contracts, making it transparent and automated across processes.
CHESS Price Analysis
At the time of writing, CHESS is ranked the 504th cryptocurrency globally and the current price is US$0.3555. Let’s take a look at the chart below for price analysis:
CHESS dropped 80% from its early Q2 highs before beginning a consolidation range in June. Most trading occurred between the June monthly open and $0.3150. Here, relatively equal lows have formed under the oldest historical low, around $0.2870.
These lows might serve as a magnet for a stop run reaching near the last swing low, between $0.2562 and $0.2470. A continued move down could run more bulls’ stops below May’s low at $0.2140.
No historical price action exists under May’s low to pinpoint possible support. Round numbers suggest that $0.1935 could offer some support on an initial stop run under May’s low.
Below this level, the 50% and 100% extensions (projected from two swings in the current range) overlap near $0.1840. This confluence could offer a weak hint at another possible support. Bulls should be highly cautious given the bearish chart and market conditions.
3. SushiSwap (SUSHI)
SushiSwap SUSHI is an example of an automated market maker (AMM). An increasingly popular tool among cryptocurrency users, AMMs are decentralised exchanges that use smart contracts to create markets for any given pair of tokens. SushiSwap aims to diversify the AMM market and also add features not previously present on Uniswap, such as increased rewards for network participants via its in-house token, SUSHI.
SUSHI Price Analysis
At the time of writing, SUSHI is ranked the 148th cryptocurrency globally and the current price is US$1.27. Let’s take a look at the chart below for price analysis:
After retracing nearly 80% from its Q2 highs, SUSHI set a low near $0.9410 as it formed its current range.
Last week, the price swept highs near $1.48, which now also marks the previous monthly high. Relatively equal daily highs near $1.50 provide a reasonable target, although resistance beginning near $1.56 could cap the move. A break of this resistance is likely to target the swing high near $1.66 into higher-timeframe resistance beginning near $1.74.
The current area near $1.19 could provide support, although bulls may be more likely to buy around the price fractal near $1.12 if a retracement reaches this level. A break of this area could continue down to sweep the low near $1.00 into possible support beginning near $0.9012.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Tether and Bitfinex have joined forces with software company Hypercore to launch a fully encrypted, peer-to-peer video chat application.
Keet is the first app to be built on Holepunch, a platform that allows developers to incorporate Web3 applications. It will initially only be available on desktop, though all three companies predict there will soon be a mobile app featuring “amazing” video quality:
Tether, Bitfinex and Hypercore Launch Holepunch 🕳️🥊 , a Platform for Building Fully Encrypted Peer-to-Peer Applications
Holepunch, which is closed-source but expected to become open-source later this year, doesn’t run on a blockchain but uses the Lightning Network, a “second-layer solution” that speeds up Bitcoin transactions while reducing costs.
This would enable a payment app to be built on Holepunch, with the Tether stablecoin (USDT) supporting a default payment system. In late May, USDT was integrated into Polygon, enabling 19,000 decentralised applications (DApps) on the ecosystem to use it.
More Investment Dollars to Come
Tether, Bitfinex and Hypercore have already poured US$10 million into Holepunch, which could see tens more millions of dollars in further investments, they added.
The Keet app, like Holepunch, is free to use and is expected to be more private and secure than Web2 centralised peers such as Zoom or Google Meet. This is because Keet users can make calls directly to another individual’s computer, with nothing stored on a server.
As Holepunch CEO Mathias Buus has said, “This app is for everyone.”
