When ConstitutionDAO was outbid in its effort to buy a rare, first-edition copy of the United States Constitution earlier this week, the community announced it would give donors a choice – either accept refunds, or remain in the DAO and receive a new “We The People” (WTP) governance token.
Refund Option Largely Ignored
Left with US$47 million worth of crowdfunded ETH reserves in its multi-signature wallets, ConstitutionDAO was probably unsurprised when many among its Discord community opted against refunds because of the associated high gas fees.
Why would anyone want the classic refund when they can swap their $PEOPLE tokens on Uniswap for 3x the amount?
Most instead chose to receive WTP tokens without having to pay a gas fee at the rate of 1 PEOPLE per WTP, pumping the former token’s price by 200 percent. Meanwhile, ConstitutionDAO got to retain the capital in ETH. Win-win, with the bonus that the future price of WTP would rise in tandem with Ether.
Funny how the doom and gloom pieces about @ConstitutionDAO fail to mention that $PEOPLE is soaring and a $250 donation is now worth almost $1,400. Is it really a “failure” if everybody 5x’d their investment? pic.twitter.com/CsNvQlIpz7
DAOs are proving what a community can do when it chooses to achieve a collective goal. The day after ConstitutionDAO’s failed bid for the US Constitution, Krause House – an internet group named after late Chicago Bulls manager Jerry Krause – announced its intention to buy an NBA franchise, funded by the sale of NFTs. The group hit its goal of 200 ETH in the first 15 minutes of launching the sale via Mirror.
Hong Kong-based gaming software and venture capital firm Animoca Brands has reassured victims of the recent hack of its upcoming “Phantom Galaxies” game’s Discord Server that the company intends to cover their losses.
The “Phantom Galaxies” game, which is being developed by Animoca Brands’ Australian-based subsidiary, Blowfish Studios, was hacked at around 3am on November 19. The hack involved stolen money in a fraudulent non-fungible token (NFT) sale on Discord.
Animoca Brands provides an update about the hack of the Phantom Galaxies Discord server that occurred in the early hours of 19 November 2021, and reassures the victims of the hackers’ scam that we will cover their losses!https://t.co/8DDbK8dNSO@the_phantom_g#wecare
The hack involved 1,571 fake minting transactions over the course of three hours. According to Animoca, there was no evidence that smart contracts were compromised, and no money was stolen from the game, its developer, or its publisher. Hackers directed users to a website charging users a 0.1 ETH fee, which then sent the funds to the hackers’ Ethereum address.
Animoca Brands and @blowfishstudios will cover the losses of all victims of this scam, being 265 ETH, or ~US$1.1 million. It will involve transfers to users to cover the amounts stolen by the hackers, or the delivery of equivalent value.
The Phantom Galaxies Discord server has about 94,000 members to date. Animoca Brands has said the method of compensation for their lost ETH will be determined following discussions within the Phantom Galaxies community. Both Animoca and Blowfish took to Twitter to apologise to their users:
Animoca Brands and Blowfish apologize to all those affected by this incident. We care deeply about our users and wish to assure them that we are taking steps to further increase security and prevent such incidents in the future.
Hacks on Discord are becoming increasingly common. Similar to this hack, earlier in the year MetaMask wallet was hacked for US$10,000 by a deceptive Discord member. One user lost about US$10,000 from their MetaMask Wallet at the hands of a scammer in Discord using a fake WalletConnect app.
Last month, Crypto News Australia reported on a 17-year-old who sold fake NFTs in a US$500,000 scam. Iconic Sol, an NFT project built on the Solana (SOL) blockchain, had apparently rugged investors after failing to deliver the promised NFTs and disappeared with US$500,000.
The teenager had promised to deliver 8,000 NFT artworks on the project’s Discord channel, and some of the tokens were supposed to be available in a presale on October 1. A total of 2,000 NFTs were up for grabs for a price of 0.5 SOL each, and many of them sold out quickly.
With Facebook rebranding to Meta amid news of celebrity partnerships including Snoop Dogg entering The Sandbox, tokens of metaverse virtual realities and blockchain-based games are on fire and have been outperforming the market as a whole.
Move over meme coins, the metaverse is now dominating the buzz across the crypto market. Here are three of the top performers:
Axie Infinity (AXS)
The most impressive performer of all has been Axie Infinity, a P2E (Play-to-Earn) NFT-based online video game developed by Vietnamese studio Sky Mavis. Axie Infinity is “a digital nation” where players can “battle, collect, and earn”.
Analytics firm CoinGecko reported that ASX was the second-best performing asset of the market in Q3 2021. The game’s native token AXS has soared accordingly, printing an all-time high of US$164.90 from only $4 at the end of June. AXS is up about 113,003 percent in a single year, and with a market cap just shy of $10 billion ($9,213,638,614), it’s currently ranked #23 in the market.
$AXS price chart. Source: CoinGecko
Decentraland (MANA)
Decentraland is a 3D virtual reality world where players can use the game’s native token, MANA, to buy in-game items such as virtual land and costumes for their avatars. Users also have governance rights and can vote on future developments in Decentraland.
The price of $MANA has increased 572.4 percent in the past 30 days and has printed its all-time high of US$5.46. It is currently ranked #34 and has a market cap of almost US$7 billion.
$MANA price chart. Source: CoinGecko
The Sandbox (SAND)
The Sandbox is a P2P (play-to-earn) blockchain-based virtual world developed by Pixowl. Players in The Sandbox can explore digital universes within the metaverse. It is a world where users can interact with each other, build their own spaces and even attend Snoop Dogg concerts and visit the rapper’s own virtual mansion. Players can also monetise their in-game assets by trading NFTs created within the game and earn SAND tokens just by spending time in the metaverse.
In the past 30 days, the $SAND token has shot up 847.2 percent and is at its all-time high, printing US$8.01. It is currently ranked just after Decentraland at #35 and has a market cap of around US$6.5 billion.
In a shocking plot twist, India will ban all private cryptocurrencies bar a select few in a bill seeking to regulate digital currencies announced by parliament.
The Indian government will allow a limited number of cryptos to promote their underlying technology and uses, and the country is set to launch its own digital currency in December following “serious concerns” regarding private cryptos.
An estimated 15 to 20 million Indian crypto investors will be affected after the government announced it was looking to ban most private cryptos, except those it will allow according to a legislative agenda. Bitcoin and Ethereum are among the digital assets set to be banned as legislative bodies cite “serious concerns” surrounding cryptos in general.
‘Financial Terrorism’ a Symptom of Unregulated Cryptos
Indian Prime Minister Narendra Modi has said countries should work together to ensure the safety of cryptos so they do not “end up in the wrong hands”. Modi has also claimed that the unregulated nature of digital assets makes them prone to money laundering and financial terrorism.
Through the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, India looks to restrict the domestic marketing and advertising of cryptos. In a country where many well-to-do citizens have traditionally turned to gold as an investment, the new ban will see some 15 to 20 million investors no longer able to go the crypto route as an alternative.
One Indian crypto user took to Reddit to express his dismay at the situation in detail:
Like many others, the country has fallen on difficult times during the Covid-19 pandemic and is struggling in its fight against the virus. Australian cricketers Pat Cummins and Brett Lee have stepped in to help, each donating a generous amount of money. Lee turned to cryptos to fund his donation, giving one bitcoin to Crypto Relief, which went towards boosting the oxygen supply for Covid patients on the subcontinent.
India to Pilot CBDC in 2022
The Reserve Bank of India (RBI) is looking at the feasibility of a Central Bank Digital Currency (CBDC) and may launch one in the upcoming fiscal year. The CBDC is a digital derivative of a legal tender issued by a nation’s central bank.
Yet many are raising concerns regarding India trying to make its own digital currency that will be held by the reserve. Arguments are being put forward such a currency will defeat the entire purpose of cryptos.
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. Ethereum (ETH)
Ethereum ETH is a decentralised open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralised smart contracts. Ethereum’s own purported goal is to become a global platform for decentralised applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime, and fraud.
ETH Price Analysis
At the time of writing, ETH is ranked the 2nd cryptocurrency globally and the current price is US$4,326.81. Let’s take a look at the chart below for price analysis:
ETH‘s long-term range from November’s high could be coming to an end. The 9, 18, and 40 EMAs flipped bullish at the beginning of October after late September’s retracement, showing strength as BTC rallied. Currently, the price is hovering just under the all-time high as bulls take some profits.
Two swing highs and the 9 EMA could mark $4180.87 to $4026.72 as an area of possible support. A deeper retracement will likely find some buyers around the 61.8% retracement near $3867.59.
The all-time high will likely see some profit-taking, but the area near the 27% extension, at $4650.12, could also provide some resistance. The 61.8% extensions of the last two swings converge near $4820.54, which could be the target for an all-time high break before a new setup emerges.
2. Ripple (XRP)
Ripple XRP is the currency that runs on a digital payment platform called RippleNet, which is on top of a distributed ledger database called XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open-source and is not based on blockchain, but rather the previously mentioned distributed ledger database.
XRP Price Analysis
At the time of writing, XRP is ranked the 7th cryptocurrency globally and the current price is US$1.05. Let’s take a look at the chart below for price analysis:
XRP‘s 87% climb during early August returned to the monthly open, sweeping lows several times down to $0.9233. Last week, the price bounced from the monthly open near $1.03 again, creating possible support near $1.10. A quick sweep of this recent swing low could reach into a support area near $0.9834, while a sharp downturn in the market is likely to run for the relatively equal lows near $0.9160.
If the price breaks through the closest significant resistance near $1.17, the swing high at $1.25 is a likely target. This move could reach the daily gap near $1.28.
Strong bullish momentum could propel the price to resistance near $1.3o. If this move occurs, the significant swing high near $1.33 provides a reasonable goal.
3. Terra (LUNA)
Terra LUNA is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its whitepaper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin and offers fast and affordable settlements. Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
LUNA Price Analysis
At the time of writing, LUNA is ranked the 14th cryptocurrency globally and the current price is US$42.01. Let’s take a look at the chart below for price analysis:
After breaking its October highs, LUNA began a range that has been whiplashing both bulls and bears.
Resistance beginning near $49.35 held the price down for the second half of November, although bulls have shown some strength near the 9 and 18 EMAs.
A quick drop to $40.37, or into the zone beginning near $44.87, could give bulls the fuel to push through the nearby resistance. If this resistance breaks, the high near $50.47 provides a reasonable target.
A break of this level could move further into uncharted territory with the nearest probable resistances projected around $58.28 and $60.57.
More patient bulls might be waiting far below the 40 EMA with bids near the higher-timeframe range’s 61.8% retracement, near $35.59.
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Where to Buy or Trade Altcoins?
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.
Crypto group and decentralised autonomous organisation (DAO) ConstitutionDAO has been outbid in its effort to buy a rare, first-edition copy of the United States Constitution at auction house Sotheby’s, as announced on Twitter. The community had pulled together US$47 million worth of ether (ETH) but was ultimately beaten by Citadel founder Kenneth Griffin.
We didn't get the Constitution, but we made history nonetheless.
We broke records for the largest crowdfund for a physical object and most money crowdfunded in 72h, which will of course be refunded to everyone who participated.
ConstitutionDAO was born less than two weeks ago yet managed to raise over US$47 million from its 17,000 contributors. Griffin, however, won ownership of the historic document after a successful bid of US$43.2 million, a Sotheby’s record. Griffin intends to lend his newly won copy to an Arkansas art museum.
Although the group had come in on a bid of US$41 million, it was unable to beat Griffin’s bid due to hidden expenses such as transport and preservation costs, and a Sotheby’s auction fee of 13.9 percent. Still, the loss has not overshadowed the on-ramping of swaths of people into crypto.
Although it lost the bid, the question now stands, what happens to the money? Since its inception, ConstitutionDAO has maintained that if it lost the auction, contributors would be refunded if they had so requested. However, many of the donors were new to the Ethereum ecosystem and did not realise the network’s high gas fees meant that nobody would have their full donation returned.
The community announced it would give donors a choice – either receive refunds or remain in the DAO and receive a new “We The People” governance token, or make a decision later. Donors choosing to remain can vote on governance matters in the future.
The Community Stands Together
This is a prime example of what the crypto community can do when it stands together. When popular Tezos-based marketplace Hic et Nunc discontinued its services last week and its founder stepped back, the community banded together to transition the marketplace into a DAO.
As it stands, in Australia DAOs are currently construed as partnerships or unincorporated associations, but The Digital Law association is looking to change that. Despite DAOs gaining traction in Australia, they are not recognised as legal entities as they have been elsewhere.
The crypto market is experiencing a sharp correction after approximately US$840 million was liquidated this week, draining nearly US$400 billion from the market.
Data from Coinglass (previously known as Bybt.com) shows at least 78,358 traders were liquidated in a span of just 24 hours. The largest single liquidation occurred on Bybit – ETH/USD, US$3.1 million.
ETH holders were by far the most affected compared to other cryptocurrencies such as BTC, which in 24 hours had a total of 1.13k BTC ($68.14 million) liquidated across most exchanges.
Most Currencies in the Red – Bitcoin Retests 58K Support
Liquidations were triggered when BTC plunged over 10 percent this week, dragging most of the market with it. Altcoins such as Binance Coin (BNB), Cardano (ADA), Solana (SOL), and Dogecoin (Doge) were in the red by double digits as well.
Many say the drop is due to the $1.2 trillion infrastructure bill that US President Joe Biden signed into law on November 15. The bill is embedded with various crypto tax provisions for entities considered “brokers” by US law, even if they aren’t, such as node validators. The unclear and biased language caused outrage in the crypto community, with many industry leaders calling for opposition of the bill.
Going back to Bitcoin, the daily RSI pulled back to 40k levels but the price is currently hovering above 60k, though a further drop is expected in coming weeks.
Compared to previous dips, this one represented only 12 percent off its all-time high (ATH), but the emotional reaction appears to be much more intense. Back in September, BTC retraced -25 percent before jumping to new ATHs.
As the vintage song by Dr Hook said, “Gonna see my picture on the cover / wanna buy five copies for my mother / gonna see my smilin’ face / on the cover of the Rolling Stone …”
And now, almost 50 years later, it has come to pass – for the glazed-eyed primates of the Bored Ape Yacht Club, at least, and while they’re not exactly smiling, they’re surely celebrating on the inside.
Rolling Stone has added to its presence in the non-fungible token (NFT) market by auctioning two of its digital magazine covers created in partnership with the simian-themed art collection that has so far generated around US$1 billion in secondary trading volume.
The collaboration debuted in physical form last week, with the instant sale of 2,500 limited-edition Rolling Stone magazines featuring a Bored Ape on the cover.
Bids Push Toward $50,000
That same magazine cover is now on auction as an NFT, with bidding live on the SuperRare marketplace. Set to last five days from November 11, the auction initially attracted bids beyond 10 ETH, or around US$47,000 at the time of writing. Bidding for another Rolling Stone magazine cover NFT featuring a “Mutant Ape” went live on SuperRare at the same time, and will also last five days.
Rolling Stone's NFT collection, in partnership w/ @boredapeyc, features art from the Bored Ape community.
The covers are the first of seven planned NFT releases by Rolling Stone in collaboration with Bored Ape creators Yuga Labs. The remaining five digital pieces, to feature signature Bored Ape characters, will be created by various NFT artists.
In July, Australian pop artist Tones and I featured on Rolling Stone‘s first NFT magazine cover. Four months earlier, Playboy magazine began issuing NFTs that chronicled nearly seven decades of photography and art from the magazine, including pictures of classic centrefolds.
The American digital artist known as Beeple is making headlines again with his latest installation artwork, Human One, paired with an NFT, selling at auction house Christie’s 21st Century Evening Sale for almost US$29 million.
Human One, by Michael Winkelmann, aka Beeple.
Human One is a 3D mobile sculpture of a person in a spacesuit moving through different landscapes. In what is the first physical piece of art from Beeple (aka Michael Winkelmann), the life-sized astronaut-like figure is contained inside a translucent box, which the artist describes as “the first portrait of a human born in the metaverse”.
The accompanying digital piece is the NFT containing the deed of ownership, minted on the Ethereum blockchain.
A huge congratulations to .@Beeple whose “Human One” artwork sold at the Christie’s 21st Century Evening Sale for $28.9M USD.
Another huge moment for NFTs and for the culture we are all trying to build within the traditional art world. Keep going my friends! pic.twitter.com/PcCoGMpYuQ
One of the largest messaging and digital distribution platforms, Discord, could soon allow support for Ethereum, as hinted by its founder and CEO, Jason Citron.
On a Twitter thread on November 9, Citron posted a screenshot of what appears to be Discord connecting to Ethereum through MetaMask and WalletConnect, with a caption that reads: “probably nothing”.
The screenshot is probably a private development not yet released:
Citron was responding to Packy McCormick, founder of Not Boring Capital and the Not Boring newsletter. McCormick posted a link to the latest issue of his newsletter called Discord: Imagine a Place. The post highlighted various features of the social network, saying it has the potential to lead the web3, considered the next stage of the internet – a decentralised version of it.
There are more than 150 million monthly active users on Discord, and many of them are crypto users, so Discord could benefit from ETH and ERC-20 transaction fees performed on the platform.
However, not everyone in Discord is so happy about this scenario.
Community Divided on the Issue
Citron’s tease divided the Discord community, with one side saying the integration of cryptos into the platform is the right step towards innovation, and the other saying cryptos and NFTs are mainly used for money laundering or tax evasion.
Several users cancelled their subscriptions to Discord Nitro, the platform’s premium membership:
I am literally in the process of cancelling as I come across this tweet, so yes, on the off chance someone from Discord is paying attention to the social media backlash; stop this shit. I like stickers and all but I'm not willing to give you money if you start doing this.
