The US Securities and Exchange Commission (SEC) has filed a complaint against Dragonchain, a blockchain venture that allegedly failed to register US$16.5 million in digital asset sales over a period of five years:
[DB] SEC Sues Dragonchaon and It's Founder for Unregistered Crypto Asset Security Offering
Unregistered Securities Here, There and Everywhere
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.
Michael Saylor, as well as current SEC chairman Gary Gensler, are of the opinion that the vast majority of tokens constitute unregistered securities, and the regulator’s actions are beginning to gain steam. Already this year we’ve witnessed a veritable feast of lawsuits and probes relating to unregistered securities, most notably against Coinbase.
Dragonchain Flies Too Close to the Sun
The complaint alleges that chief executive John Roets violated securities laws by raising millions of dollars from the sale of Dragon (DRGN) tokens in an initial coin offering (ICO) in 2017. The firm then diverted the proceeds into marketing and development:
Dragonchain undertook its distribution of DRGNs without registering its offers and sales of DRGNs with the SEC as required by the federal securities laws, and no exemption from this requirement applied.
SEC complaint
“Through this offering, the defendants allegedly raised approximately $14 million from approximately 5,000 investors worldwide, including in the United States,” the SEC wrote. The SEC argues that DRGN was marketed to crypto investors by touting the token’s investment value, pricing, and “listing” on trading platforms.
Despite marketing itself as a hybrid blockchain for “solving business problems at an enterprise scale”, Dragonchain has to date demonstrated little to any real-world value.
Interestingly, this isn’t the firm’s first encounter with authorities. In 2021, a court filing by the State of Washington also called DRGN tokens a security, arguing the firm was “not currently registered to sell its securities in the state of Washington and has not previously been so registered”.
Dragonchain was subsequently fined US$50,000 and issued with a cease and desist order. The SEC is now looking to follow suit by seeking a permanent injunction, the return of what it believes are wrongfully obtained profits, and civil penalties.
Dragonchain appears to have embraced regulatory arbitrage to circumvent laws designed for investor protection. Bitcoiners such as Saylor would likely argue it is but one, and there are around 20,000 remaining:
Today @GaryGensler discussed #Crypto regulation with @WSJ. Relevant comments from 7:45 to 18:15 in this video. Other than #Bitcoin, most cryptos (especially PoS networks) represent unregistered securities lacking the full & fair disclosures necessary to protect investors. https://t.co/WW814yfnGD
Embattled Asia-Pacific crypto exchange Zipmex has been granted protection from its creditors until December 2, with the Singapore High Court allowing it three months to come up with a funding and restructuring plan:
The Singapore High Court has granted Zipmex three(3) months to resolve its liquidity issues, the exchange had initially sought an extension of six months.🇸🇬🐳
The moratorium amounts to half the period sought by Morgan Lewis Stamford, lawyers for Zipmex, who had applied for six months’ protection under Singapore’s insolvency law across the exchange’s outlets in Singapore, Thailand, Indonesia and Australia after they abruptly suspended withdrawals last month.
Court Orders Town Hall Meeting for Creditors
According to a statement this week from Zipmex, the court also directed that the exchange convene a town hall-style meeting with its creditor and customer base within one month from the date of the court’s moratorium decision:
[At this meeting], it will minimally be explained what the proceedings in Singapore mean for creditors and customers, the state of proposed investments, the likelihood for the completeness of investors’ proposals and how serious they are, and when customers will be able to access their Z Wallets.
Zipmex statement, August 16
Last week, Zipmex announced its Z Wallet customers would be able to “partially withdraw” some of their Bitcoin and Ether holdings, naming August 11 and 16 as respective dates for releasing “a specific amount” of ether and bitcoin. These amounts turned out to be 0.08 ETH and 0.0045 BTC (about US$150 and US$110, respectively).
Earlier this month, Zipmex said it was “exploring multiple avenues” to secure funding, adding that it was expediting due diligence after signing a memorandum of understanding (MOU) with two investors.
CEO Pressured to Step Down
Meanwhile, Zipmex shareholders and potential investors have reportedly urged CEO Marcus Lim to step down over management decisions they believe led to Zipmex’s liquidity crisis:
Breaking News: Zipmex Seeks Resignation From CEO Marcus Lim
Zipmex is not the only Singapore-based firm to secure a moratorium against its creditors. Crypto lender Vauld was granted a three-month protection order by the same court earlier this month after it, too, froze withdrawals without notice in July.
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. Filecoin (FIL)
Filecoin FIL is a decentralised storage system that aims to “store humanity’s most important information”. The project was first described back in 2014 as an incentive layer for the Interplanetary File System (IPFS), a peer-to-peer storage network. Filecoin is an open protocol backed by a blockchain that records commitments made by the network’s participants, with transactions using FIL, the blockchain’s native currency. The blockchain is based on both proof-of-replication and proof-of-space-time.
FIL Price Analysis
At the time of writing, FIL is ranked the 33rd cryptocurrency globally and the current price is US$8.22. Let’s take a look at the chart below for price analysis:
FIL has dropped 85% from its Q2 highs, finding support near $5.16 before starting a consolidation range. This level, near the lows, could continue to provide support. A year-long consolidation from 2019 to 2020 pivoted around this level many times. It’s also near the middle of the last down candle before 2020’s massive rally. A retest of this level would run bulls’ stops under swing lows formed in late June and early July.
The price is testing a closer area of possible support near $7.83. Bulls rejected bears many times in early July at this level. It’s also in the upper part of July’s swing low candle. The closest resistance is likely near $8.65. This area, up to $9.40, shows inefficient trading on the daily chart. It also contains the 9 and 18 EMAs.
If the price breaks through this level, it may aim for bears’ stops above $9.72. Even if it doesn’t reach these stops, the area between $9.96 and $10.18 could provide a bearish setup. Here, bears rejected bulls near the bottom of an area of inefficient trading on the weekly chart.
If the market turns more bullish, a rally beginning in this range may be aiming for the new monthly highs, near $10.40. This level is near the bottom of an area of inefficient trading on the daily chart.
2. Chiliz (CHZ)
Chiliz CHZ is the leading digital currency for sports and entertainment, powering the world’s first blockchain-based fan engagement and rewards platform, Socios.com. Here, fans can purchase and trade branded fan tokens as well as having the ability to participate, influence, and vote in club-focused surveys and polls. Founded in Malta in 2018, the company states its vision is to bridge the gap between active and passive fans, providing millions of sports fanatics with a fan token that acts as a tokenised share of influence.
CHZ Price Analysis
At the time of writing, CHZ is ranked the 46th cryptocurrency globally and the current price is US$0.2196. Let’s take a look at the chart below for price analysis:
CHZ‘s stunning rally to $0.2550 plummeted over 13% to sweep consolidation lows at $0.1925. This could set the stage for a new bullish cycle to begin.
The price is currently balancing around the monthly open. A quick stop run into support beginning near $0.1820 could set the stage for a move into the daily gap beginning near $0.1735, potentially reaching resistance near $0.2437.
A sweep of the highs near $0.2558, followed by a sharp sell-off, hints that bulls are preparing to run the swing high near $0.2647. This run could find the next resistance around $0.2846 in the candle wick that created the monthly high. If the market remains bullish, the price will likely reach into possible resistance near $0.3028.
3. Horizen (ZEN)
Horizen ZEN is an interoperable blockchain system supported by a decentralised node infrastructure. Its sidechain platform focuses on scalable data privacy, and as such enables businesses as well as developers to build private or public blockchains using the unique sidechain technology known as Zendoo. Horizen claims to be completely decentralised, fully customisable with privacy features, and supports low costs associated with building blockchains with configurable revenue models and an unlimited number of tokens and digital assets.
ZEN Price Analysis
At the time of writing, ZEN is ranked the 126th cryptocurrency globally and the current price is US$20.98. Let’s take a look at the chart below for price analysis:
ZEN saw an energetic run during Q1, climbing approximately 70% before cooling off into resistance beginning near $32.85 that pinned down last month’s attempt to rally, which is likely to retest possible support near $15.64.
A deeper marketwide retracement could take out the relatively equal lows below the weekly open and support near $18.23. This move may offer entries near probable support between $17.47 and $16.78.
However, more bullish market conditions may prompt a rally to the relatively equal highs near $24.67 into resistance beginning at $26.46. If the price reaches this level, the last high at $29.58 gives the next likely target before price discovery begins.
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.
Online security company NetSkope has discovered a new crypto phishing scam that utilises Google and Microsoft Azure to trick users into handing over their information. The tactic involves using SEO techniques to distribute links to copycat pages.
NetSkope has made a new phishing scheme discovery.
Other Big Names Not Immune
It’s been discovered that hackers have improved their strategies and are utilising specific SEO techniques to increase interaction with phishing sites for imposter wallet apps and exchanges impersonating notable names such as MetaMask and CoinBase.
These phishing sites are often built on Google Sites or Microsoft Azure and can take a user’s info in two ways. They will either acquire the private seeds of the user’s wallet by prompting data importation, or will pilfer info from the accounts of the exchanges being impersonated using error messages:
In this campaign, we found that the attackers are abusing Google Sites and Azure Web App to host the pages, likely due to cost, ease-of-use, and to slightly increase the victim’s trust.
NetSkope blog post
NetSkope has strongly recommended that “users never enter credentials after clicking on a link” and instead navigate directly to the site they wish to use, and that organisations should employ secure web gateways that can block these types of attacks.
Security Firms Have Their Work Cut Out
With crypto theft an ongoing concern on the radars of most investors and regulators, luckily security firms are keeping a watchful eye out. At the beginning of April, global cybersecurity firm ESET uncovered a criminal plot to steal users’ digital assets via apps impersonating popular cryptocurrency wallets. The plot involved more than 40 copycat crypto wallet sites intended to promote downloads of malicious apps.
Earlier in the year, blockchain security firm CertiK identified a US$10 million rug pull on Arbix Finance. The firm warned users who had engaged with the protocol to avoid it, along with its ARBX token. CertiK allegedly found several red flags in Arbix via its Skytrace tool, which analyses fraud risk.
Despite this year’s bear market of “historic proportions”, pension funds across North America remain bullish on the crypto sector, according to The Wall Street Journal (WSJ).
Pension Funds at a Crossroad
According to the report, the interest is reflected in asset management firm VanEck, which notes that many pension funds have reached a crossroads in 2022, wondering whether to double down on crypto or otherwise throw in the towel.
Last year, one Houston-based firefighter pension fund put US$25 million into bitcoin and ethereum. While its investment is underwater, leadership understood at the time that “volatility and large swings are expected”.
Other pension funds are viewing the bear market as a potential opportunity for further investment at a substantial discount. While many funds don’t necessarily have conviction in the underlying crypto assets, some are willing to chase yields by engaging in yield farming.
Most notably, this has been adopted by a Virginia-based pension fund that told the WSJ approximately 4.5 percent of its US$6.6 billion in assets under management was being utilised for this purpose:
“Virginia county police pension fund getting into crypto yield farming is one of the most 2022 headlines ever.” – @alexgourevitch
Not All Funds Got the Memo
Of course, not all pension funds have adopted this “forward-thinking” approach. Representing the views of most pension funds, one US$300 billion fund for teachers in California recently pronounced it was avoiding crypto altogether, due to its inherent volatility.
Recently it emerged that a Canadian pension fund had invested in Celsius, a crypto “bank” that has since declared bankruptcy. For those paying attention, it was self-evident that the yields were unsustainable, and more importantly the risk far outweighed any potential benefits. Unfortunately, this wasn’t sufficiently clear for many:
First the CDPQ invests in Celsius and now the Ontario Teachers' Pension Plan Board has invested in FTX.
Canadian pension fund managers are in serious need of a why "Bitcoin, not crypto" lesson.
— ₿itcoin Gandalf the Orange (@BTCGandalf) June 28, 2022
Institutions continue to lump Bitcoin and crypto in the same sentence. Until they take the time to understand the difference, malinvestment is likely to persist for the foreseeable future.
Despite their innate differences and fierce rivalry on the pitch, Spanish football superclubs FC Barcelona and Real Madrid have filed a joint metaverse trademark application encompassing virtual reality gaming/clothing and crypto transaction management software:
Football powerhouses REAL MADRID and BARCELONA have filed a joint trademark application covering:
FC Barcelona and Real Madrid filed the application over a week ago but the news has only just been confirmed by trademarks lawyer Mike Kondoudis. The filing indicates that both clubs may be interested in offering their own cryptocurrency wallets.
The alliance has raised eyebrows in that each team represents totally different values. FC Barcelona symbolises the separatist Catalan region, while Real Madrid is linked to the royal family and represents traditional Spanish culture and nationalism.
The derby between the clubs is known as “El Clasico” and is one of football’s premier events. Both clubs have a global fanbase and are the world’s two most followed sports teams on social media.
Back on the Crypto Bandwagon
News of the joint venture has also created interest in light of the fact that FC Barcelona, along with English Premier League champions Manchester City, discarded its crypto sponsors last year in controversial circumstances.
In the case of FC Barcelona, the club announced it had cancelled a deal with NFT marketplace Ownix after the arrest of one of its consultants, Moshe Hogeg, owner of Israeli football team Beitar Jerusalem, for suspected crypto fraud.
Also in November 2021, the Catalan club announced it would be auctioning non-fungible tokens (NFTs) of memorable moments from the club’s 122 years in the game. It was whispered at the time that the auction would serve to offset a debt crisis afflicting the club.
Fan Tokens Part of Metaverse Strategy
Earlier this year, FT Barcelona confirmed music streaming giant Spotify as its jersey sponsor. It also issued its own fan token and has since been linked with fan engagement token company Socios.com in a US$100 million deal to reshape the strategies of the club in the Web3 and metaverse space.
In 2020, Real Madrid partnered with NFT collectible company Sorare and the following year announced it would issue Smart Tickets in the form of NFTs for its audience in partnership with LAVA.
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. Burger Swap (BURGER)
BurgerSwap BURGER is one of the first democratised, decentralised automated market makers (AMMs) on the Binance Smart Chain (BSC). It was built without the control of any centralised authorities through the use of smart contracts. BURGER token staking allows any user to create proposals and influence the adjustment of transaction fees, block rewards, and other system parameters of the Burger Swap exchange via voting.
BURGER Price Analysis
At the time of writing, BURGER is ranked the 470th cryptocurrency globally and the current price is US$1.56. Let’s take a look at the chart below for price analysis:
After a 45% retracement from its June highs, BURGER found a temporary low near $1.45. A recent move above $1.70 could be the first sign of a bullish shift but could also be a stop run before the next drop lower.
If the market adopts a more bullish tone, the price could run through the most recent swing high. If this bounce occurs, it would likely find some resistance near $1.93, possibly reaching up to $2.10.
However, a move below the closest support near $1.40 makes stop runs on the swing lows near $1.35 and $1.26 likely. A confluence of several levels near $1.15 could provide a temporary bounce. Still, a sustained bullish market will likely target $2.00 and even $2.07.
2. Quantum (QTUM)
Quantum QTUM is a proof-of-stake (PoS) smart contract open-source blockchain platform and value transfer protocol, aiming to bring together the strengths of Bitcoin and Ethereum in one chain. QTUM is built on Bitcoin’s UTXO transaction model, with the added functionality of smart contract execution and DApps. Recently, the platform added support for DeFi applications.
QTUM Price Analysis
At the time of writing, QTUM is ranked the 99th cryptocurrency globally and the current price is US$4.02. Let’s take a look at the chart below for price analysis:
QTUM retraced 70% from its Q2 highs before forming a new low near a cluster of older relatively equal lows in late June.
Last week’s sharp rally reached probable resistance near $4.67. This level is near the 61.8% and 78.6% retracements of the last significant move upward.
Possible support rests just below the monthly open, near $3.80. This area saw significant consolidation in late July. It remains to be seen whether this is a run on bears’ stops before a more substantial move down, or a bullish shift in market structure that could lead to a more significant rally.
With the overall market being bearish and significant numbers of equal lows enticing bears below, traders may want to watch possible support near $3.65. This area is inefficiently traded and borders the last accumulation before Q1’s stunning rally.
Suppose this is the start of a more significant rally. In which case bulls might target $4.38, where higher timeframes show an inefficiently traded area near multiple bearish rejections during December 2021. A powerful bullish swing could reach up to $5.20, where early December saw inefficient trading and the bulk of Q3 2021’s trading took place.
3. 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$0.3545. Let’s take a look at the chart below for price analysis:
After creating a second equal low during last month, ALGO gained nearly 20% into resistance that starts near $0.4022.
Swing traders looking for a continuation to the nearest cluster of relatively equal highs around $0.4712 might look for bids near $0.5326. More significant resistance rests above, near $0.5925. A group of significant swing highs at $0.6310 and $0.6518 provide possible targets if this resistance breaks.
A stop run on the recent low at $0.3071 into possible support beginning near $0.2430 might see stronger bidding. This area also has a confluence with the recent monthly lows.
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.
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. Unifi Protocol DAO (UNFI)
Unifi Protocol UNFI is a revolutionary approach to decentralised finance (DeFi). Launched in 2020, the network aims to bring modern technology to the financial world. By employing the innate security and decentralisation features of blockchain technology, and the automation of smart contracts, Unifi Protocol DAO offers users the ability to develop DeFi solutions for their enterprise. This project combines the power of several blockchains and relies on the foundation of Ethereum DApp and DeFi development.
UNFI Price Analysis
At the time of writing, UNFI is ranked the 386th cryptocurrency globally and the current price is US$12.82. Let’s take a look at the chart below for price analysis:
UNFI has been in a massive consolidation for the past year. Something prompted a 1,595% gain within two days on June 6 yet the price completely retraced this abnormal move, making it less significant when studying the chart.
The 9 and 18 EMAs are near $10.405, which may offer the closest support. This area shows inefficient trading on the daily chart and saw distribution last December on the weekly chart.
A stronger drop could reach the base of the most recent rally, near $7.423 or $6.569. This move would sweep bulls’ stops under early August’s consolidation into the upper part of high-timeframe accumulation. If this move occurs, it may signal an end to the current bullish trend and require waiting for the start of a new trend.
Relative equal swing highs near $13.500 provide the first target and may act as resistance. It’s also at the high point of the current range’s candle bodies. Just above, $15.500 to $16.723 may also draw the price over these highs. It shows previous inefficient trading on the daily, weekly, and monthly charts.
A more sustained bullish trend may reach near $19.014. Bears rejected early June’s massive price spike here. It also shows inefficient trading on the weekly chart and was the origin of a late April 2021 rally.
2. Seedify.fund (SFUND)
Seedify.fund is a blockchain innovation ecosystem, with a community-driven Seed Stage Fund, Decentralised Incubator, and Launchpad. Seedify.fund cross-bridges a community-driven DAO with an incubator/seed fund to provide seed investments to projects selected by community votings.
SFUND Price Analysis
At the time of writing, SFUND is ranked the 290th cryptocurrency globally and the current price is US$2.68. Let’s take a look at the chart below for price analysis.
SFUND has had a long, steady downtrend since late December 2021. It created a bullish market structure break in late July on the weekly chart and is now retracing part of its previous downtrend.
The price is dropping into an area of inefficient trading on the daily chart. This area, down to $2.3204, may offer support. It overlaps with the August monthly open and may soon contain the 40 EMA.
A sharper drop could sweep the nearest swing low into another area of inefficient trading, from approximately $2.0278 to $1.8307. This level has confluences with previous and new regions of inefficient trading on the weekly chart.
The nearest resistance has shown itself at $2.9766. This level is just above the high of inefficient trading on the monthly chart and may not hold on a retest.
If it breaks, bulls may target the swing high at $3.2930. The weekly chart shows inefficient trading from this level up to $3.4504.
Continuation could reach further into an area from approximately $3.6165 to $3.9400. This zone is in the upper half of inefficient trading on the monthly chart. It also shows inefficient trading on the weekly chart and distribution on the daily chart.
3. Luffy (LUFFY)
LUFFY is a community-driven token that was first built on the most secure and well-established blockchain, “The Ethereum Network”, allowing investors and fans to stay decentralised. Due to the growth of the BNB Chain, Luffy Team has decided to develop the ETH/BNB Bridge. Luffy is creating a safe and exciting space for investors and fans alike with modernised tooling, advanced DeFi platforms, education, P2E gaming, metaverse innovations and world-class artwork, as well as helping underpaid anime and manga artists.
LUFFY Price Analysis
At the time of writing, LUFFY is ranked the 2780th cryptocurrency globally and the current price is US$0.000004456. Let’s take a look at the chart below for price analysis:
LUFFY has been consolidating inside a range it formed in mid-June. During August, it made an aggressive move toward this range’s high.
The price is testing what may become the closest support at $0.000004347, near the 18 EMA. Here, August 9 saw a partial rebalance of inefficient trading on the daily chart. The price could rally after retesting this range. If so, it may sweep August 9’s swing low first.
A sweep of the August 9 low could reach slightly lower, near $0.000003781. This area also shows inefficient trading, is the origin of the last rally, and has confluence with the July and August monthly opens. Should the market turn significantly more bearish, it may revisit the range lows near $0.000002910.
If today’s high doesn’t reach past $0.000004785, this area could offer the closest resistance. It would show inefficient trading on the daily chart. It also overlaps with the 9 EMA.
A more significant resistance may rest near $0.000005380. Bears have rejected bulls here multiple times. It also shows inefficient trading on the weekly chart. Since the swing highs in this area offer a tempting target for bulls, this weekend’s VC announcement could help propel the price to or beyond this level.
If the rally continues, $0.000006800 is the next higher-timeframe point of interest. Bears rejected bulls here on the monthly chart. The weekly and daily charts show distribution here, and the daily chart shows inefficient trading.
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.
MailChimp has suspended the accounts of several crypto-related firms including intelligence platform Messari, crypto wallet provider Edge, NFT artist Ocarina, and Jesse Friedland, founder of NFT collection Cryptoon Goonz. Content creators and media outlets in the space have also been affected.
According to an email received by at least one of the above list: “[MailChimp] cannot allow businesses involved in the sale, transaction, trading, exchange, storage, marketing, or production of cryptocurrencies, virtual currencies and any digital assets.”
Twitter in Overdrive in Response to MailChimp Action
Messari founder Ryan Selkis was among the first to take to Twitter to register his disappointment at the action taken by MailChimp:
well @Mailchimp has suspended the Messari email account for no reason.
Anyone have good recommendations for email subscription services with solid API integrations? Or any that don't pull the plug on paying customers without any notification or justification? https://t.co/Cjg2kkqwoT
Cory Klippsten of Swan Private, a Bitcoin investment advisory firm for corporations and high net worth individuals, joined the tweetstorm regarding MailChimp’s ban, calling on other marketing agencies in the industry to “step up” in light of this incident and others:
You know we plan, and work our a**es off. Swan security is TIGHT.
There's no in-house solution for decent email marketing. These are huge co's w complex functionality. Best u can do is limit what u share w them. Ours just first name, email, and IP loc (center of city, state).
In a limited response to the complaints, MailChimp said accounts were being disabled or “temporarily suspended” due to service violations. According to its website, the clause falls under the “Acceptable Use” policy, which outlines prohibited content.
In that same section, MailChimp states that “cryptocurrencies, virtual currencies, and any digital assets related to an Initial Coin Offering” are prohibited due to “higher-than-average abuse complaints”, adding that its site policy was updated in May of last year. Incidentally, it was in 2021 that the email marketing service provider was acquired by financial services giant Intuit.
Speaking on behalf of crypto-related content creators and media outlets, Analyse Asia founder Bernard Leong tweeted:
For all the #crypto newsletters, ghost is a better option and u can export & control your mailing lists and have total control. Abandon @Mailchimp a long while ago. https://t.co/UkbjcNpJAK
This is not the first time MailChimp has gone after after crypto-related content. Such action can be traced back to 2018, the year Facebook also banned crypto-related advertising on its site due to breaches of regulatory guidelines.
Pudgy Penguins, one of the cutest of NFT collections, has announced on Twitter that it will be turning select penguins into physical collectibles to be known as Pudgy Toys:
Introducing our Pudgy Toys Lineup, licensed directly from the community.
This is the first of many instances where the Pudgy Penguins IP will allow Web2 to meet Web3.
Congratulations to the Penguins who were selected. More is coming, just look… pic.twitter.com/82iblNKCa3
Following the announcement, the collection registered a sales spike of 370 percent, representing a threefold increase over the previous day.
Pudgy Penguin Plushies?
Described by the PP creators as “the first of many instances where the Pudgy Penguins IP will allow Web2 to meet Web3”, this latest news seems to have renewed community interest.
According to OpenSea, the collection saw a transaction volume of 256 ETH post-announcement. Pudgy Penguins’ floor price rose to 2.73 ETH, up 18 percent on the previous day. Though the exact form these collectibles will take has yet to be revealed, it has been stated that the new line of Pudgy Toys will be directly licensed from the community:
Pudgy Penguins en fuego. What's driving this? Nice to see some of the older sets kick into gear. pic.twitter.com/2yOkoHUM7s
This update coincides with the ongoing debate regarding licensing rights for NFT holders. It’s an issue recently highlighted by the Moonbirds collection, whose floor price tanked following the switch to a CC0 (creative commons) licence.
Netz Spreads the Pudgy Love
In April, the Pudgy Penguins NFT collection sold for a whopping 750 ETH (US$2.6 million), separating the 8,888 penguins from their allegedly controversial roots. Luca Netz, the LA-based entrepreneur of Netz Capital, now leads the project and intends to use it to “spread love across the meta”.
Netz’s complete project ownership means Pudgy Penguins now has its own token, $PENGU.
