Crypto Pirates

Cryptocurrencies are struggling to overcome rising bond yields. With regulatory constraints also increasing, the asset class may be approaching a tipping point.

Bitcoin was down 2% in early trading, trading at $41,700. Ether, the second-largest cryptocurrency, fell 3.4% to $3,140. The yield on the 10-year Treasury note increased to 1.84 percent, continuing a rapid rise this year and exerting particular pressure on the technology sector.

According to CoinMarketCap, the worldwide cryptocurrency market is down 2.9 percent to $2 trillion in market value, with Bitcoin accounting for 40% of the total.

When the "risk-free" yield on Treasuries climbs, investors withdraw funds from technology and other highly speculative assets. Increased risk-free yields boost the discount rate used by investors to determine the present value of future cash flows. Because technology valuations are predicated on future cash flows, the logic predicts that today's prices for the assets should be lower.

Increased rates also imply a drying up of market liquidity, syphoning out some of the leverage that has developed in crypto futures and other derivatives markets.

The regulatory environment is also becoming more challenging as a number of foreign governments and banking institutions place additional regulations on cryptocurrency.

Singapore issued a sweeping warning against cryptocurrency on Monday, emphasising that "the public should not be encouraged to engage in cryptocurrency trading." According to the Monetary Authority of Singapore, the country's central bank, cryptocurrency promotion should be limited to company websites and official social media accounts. Regulators appear to be outlawing cryptocurrency ATMs as well, claiming that they "mislead the public into trading...on impulse."

According to analyst Marcus Sotiriou of digital-asset broker GlobalBlock, over 170 companies that applied for crypto licences in Singapore have either withdrawn their applications or been denied.

Elsewhere in Asia, Pakistan and India are tightening regulations on cryptocurrency trading and deterring residents from participating. China, however, has taken a harsh line, declaring commercial transactions unlawful in September and renewing a ban on Bitcoin mining in November.

Cryptocurrency also faces challenges as bond yields rise and global liquidity tightens. If these trends continue, the coming year might make it significantly more difficult for crypto assets to gain value, particularly the smaller "alt currencies" being generated for various blockchain applications and DeFi applications.

Governments' perspectives on cryptocurrency are also divergent. While China and several other Asian governments are tightening down, El Salvador has gone the other way, legalising Bitcoin and announcing plans to issue a $1 billion "Bitcoin bond" with a 6.5 percent coupon.

According to media sources in Brazil, the government of Rio de Janeiro may invest part of the city's assets in cryptos, following comments from the city's mayor that "we are going to start Crypto Rio and invest 1% of the Treasury in bitcoin."

According to a recent research from Fidelity Digital Assets, the trends indicate that crypto is moving down distinct regulatory paths.

"There is a very high stakes game theory at work here, where countries that secure some Bitcoin today will be competitively better off than their neighbours," Fidelity added. "Even if other governments reject Bitcoin's investment thesis or acceptance, they will be compelled to acquire some as a sort of insurance."

One effect is that countries may be forced to purchase some Bitcoin as a hedge against future cost increases. "As a result, we would not be shocked to see more sovereign nation governments buy Bitcoin in 2022, and possibly even a central bank," Fidelity adds.

For the time being, though, crypto investors appear to be negative, as bond yields increase and demand for riskiest assets declines.

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What investors should keep in mind when it comes to Bitcoin, the world's largest cryptocurrency (BTC).

Today has been another wild ride for Bitcoin (BTC) and the other leading cryptocurrencies. While the crypto sector has been difficult to nail down in terms of direction recently, the majority of attention has been focused on Bitcoin. This top token is frequently regarded as a barometer of the overall market.

Bitcoin is the first and largest cryptocurrency by market capitalisation, and its directional swings have a tendency to move the market. As a result, investors have numerous concerns about Bitcoin this year. Will momentum be regained? Or will we see a year-long gradual and steady decline?

Let's take a look at a few things to keep an eye on with Bitcoin this year.

Bitcoin price projections on a grand scale continue to surface.

Indeed, one trend that is sure to persist in 2022 is the continuation of outrageous price estimates. Whether it's Cathie Wood or other crypto bulls announcing big price targets, it's the potential returns investors might earn with Bitcoin that has attracted so much attention.

As a result, a recent JPMorgan client poll indicates that retail investors accept the hype. According to the majority of responders, BTC might trade at or above $60K this year. This would represent an almost 50% increase above current levels.

Perhaps these findings are unsurprising. After all, investors who hold digital currencies do so in the hope of earning exorbitant returns. As a result, there should be some benefit to owning such valued goods.

While there are Bitcoin bears, it appears that the majority of retail investors believe this token has more upside potential than downside risk in 2022. As a result, Bitcoin investors are hoping that the wisdom of the crowd prevails this year.

In conclusion

As the first and hence the most established cryptocurrency, Bitcoin's track record is one worth studying. This cryptocurrency has experienced a number of price swings in the past. As a result, near-term sentiment appears to be negative, with many anticipating a sustained selloff is possible, at least through the start of 2022.

Such a scenario is probably plausible if bad attitude persists. Indeed, when Bitcoin enters a bear market, it is severely battered. Without any real financial flows, the majority of cryptocurrencies, such as Bitcoin, are purely supply and demand processes.

I expect the crypto world's supply and demand fundamentals to remain under pressure, at least in the near term. Rate hikes and a selloff in risk assets appear to be on the horizon. However, anything is possible in the long run. As a result, it is possible that dip buyers will materialise until the end of the year and beyond.

For the time being, I'm keeping a close eye on Bitcoin. However, individuals who have invested in Bitcoin, or any cryptocurrency, should brace themselves for a wild ride in 2022.

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With cryptocurrency-related scams getting increasingly sophisticated, falling for them is easier than ever. Here's how to safeguard your NFTs.

If you Google "NFT frauds," you're likely to end up in a rabbit hole filled with genuine cartoon bunnies.

In the last 12 months alone, non-fungible tokens (NFTs) have blossomed into a multibillion-dollar segment of the cryptocurrency business. Rare collector's goods, such as those from the Cool Cats and Bored Ape Yacht Club collections, can fetch upwards of $30,000 or more.

If you think that five- and six-figure price tags for a JPEG are excessive, the NFT developers offer one word for you: usefulness. Due to the fact that NFTs create an irreversible digital record of your ownership on the blockchain (the same technology used to create cryptocurrency), owning a digitally tokenised work of art can also serve as your membership ticket to exclusive online clubs, gaming communities, Discord chat rooms, and interactive experiences.

That is, in theory. However, in practise, NFTs are still in their infancy and can be a bit clumsy. While blockchain aficionados regard them as an encouraging indicator that mainstream cryptocurrency adoption is on the horizon, NFTs present some extremely lucrative chances for scammers due to the sheer volume of money exchanged.

Following that, we'll discuss the most typical NFT scams, how to avoid them, and why they're growing more prevalent.

Typical NFT frauds (and how to avoid them)

Scams using phishing and dubious pop-up windows

To purchase your first NFT, you'll need to create an account with a wallet that supports Ethereum transactions. For NFT collectors, MetaMask is probably the most popular Ethereum wallet. However, MetaMask users were recently the target of a phishing scheme that used bogus adverts requesting users' private wallet keys or 12-word security seed phrases (a big red flag). Additionally, malicious pop-ups are being distributed via Discord, Telegram, and other public forums, linking to legitimate-looking login pages for MetaMask and other prominent websites.

If a rogue actor obtains your private information through a phishing attempt, they can deplete your digital wallet of all cryptocurrency.

How to avoid falling victim to these con artists

As a general rule, you will only need your seed phrase if you are building a hardware backup of your crypto wallet or if you need to recover it. Never enter data into the MetaMask pop-up window, or any other pop-up window for that matter. Always submit your information directly on the verified website, never via links, pop-ups, or your email. Create a paper copy of your seed phrase and never distribute it to anyone – don't even save a photo of it in your phone.

Catfishing and the use of fictitious identities

Because NFT sales are conducted online and all marketing is conducted via social media, it's easy to become a victim of catfishing. Popular NFT groups frequently employ influencers and celebrities to promote them, making it difficult to determine which are authentic.

How to avoid falling victim to these con artists

Never respond to a direct message from someone claiming to be a creator, celebrity, or influencer. It is well accepted etiquette in the NFT community that C-level personnel will never DM you unless you first send them a message or reach an agreement in a public Twitter thread or Discord channel. It's similar to when you were a child and your parents warned you not to give up any personal information to a telemarketer who called your house. The same holds true in the NFT realm — if someone DMs you first, refrain from clicking links or disclosing any information.

Schemes based on pump-and-dump operations

Unfortunately, pump-and-dump techniques have become rather predictable in the bitcoin and NFT realms. The term refers to when a group of individuals purchases a large quantity of NFTs or cash and artificially inflates demand. Once successful, the schemers pay out at inflated prices, leaving others who were not involved with worthless possessions.

Similarly, you may have heard the term "paper money" in regard to non-financial transaction (NFT) ventures that are not technically fraudulent but have limited liquidity due to a small number of competitive buyers.

"When you have 5,000 NFTs controlled by twenty of the world's top collectors and none of them is under any obligation to sell, anyone interested in buying into that collection must do so at a very high floor price," explained a pseudonymous NFT collector known as Whale Shark, who owns over 400,000 NFTs. If you're investing in NFTs, your prospects improve when the project has a larger buyer base and hence more liquidity.

How to avoid falling victim to these con artists

Examine the project's history and wallet data. This is where the transparency provided by blockchain technology comes in helpful. View the number of transactions and buyers for the NFT collection on OpenSea or any other NFT marketplace. With EtherScan, you can view all incoming and outgoing Ethereum blockchain transactions.

Additionally, join the project's Discord channel and follow it on Twitter. To ensure a project's liquidity and/or long-term communal or aesthetic value, it must attract a sufficient number of engaged investors and collectors, as well as an active community where individuals may interact, engage, and share information.

Bidding swindles

Bidding scams occur most frequently on the secondary market, after you have purchased your NFT and wish to sale it to the highest bidder. Once you've listed your NFT for sale, bidders may change the cryptocurrency they're using without informing you. Instead of 5 ETH (about $15,000 to $20,000) for your preferred NFT, you may receive $5.

How to avoid falling victim to these con artists

Verify the currency used and never accept a bid that is less than what you want.

NFTs that are counterfeit or plagiarised

It's worth noting that minting an artwork as an NFT does not imply ownership of the artwork's intellectual property (IP). Anyone, regardless of whether they hold the rights to the IP, can convert any photo or image into an NFT using OpenSea's user-friendly software. Scammers and other unscrupulous actors can easily steal an artist's work and create a bogus OpenSea account to sell counterfeit artwork. This effectively renders your NFT worthless once the community discovers what the scammer is up to – and there is no way to recover your money.

How to avoid falling victim to these con artists

Before purchasing an NFT from any marketplace, conduct your own investigation to ensure that the artwork is being sold by a verified user. On OpenSea or other NFT markets, look for the blue check mark next to the artist's profile photo. If there isn't one, you can contact the artist via Twitter, their website, or other social media outlets. Inquire directly with the artist if the artwork you wish to purchase is theirs and if you have the appropriate user profile. Additionally, check to see if the artist or NFT project has a Discord channel and enquire with other members of the community.

Keep an eye out for forged blue checks. True verified accounts display a blue check on the profile image's perimeter, not on the interior. Consider this excerpt from an NFT fraud quiz prepared by Curious Addys' Trading Club. The second instance is correct.

Unreliable storage facilities

This is another ethical grey area, albeit one that is less likely to be a hoax. Once purchased, NFTs may go missing. That is because the contract that is stored on the blockchain (the NFT) is distinct from the artwork itself. Consider uploading an mp3 file of original music to a portal such as OpenSea. When a collector is ready to purchase it, they put a bid and pay you in ether, which results in the creation of a smart contract, which serves as a record of ownership.

What is truly minted on the blockchain is the smart contract. However, the file you uploaded (i.e. the content and metadata) are distinct. It may sound esoteric, but keep in mind that NFTs are just about the ownership of an asset, which may be anything.

Therefore, if you choose to keep the artwork, house deed, or other digital content associated with the smart contract on a centralised site, ensure that the platform is trustworthy. Additionally, avoid purchasing an NFT that only refers to a URL via an image. Whatever website or artwork is stored at that URL can be modified at any time without your consent, leaving you with a token that effectively leads to nothing.

In conclusion

If you purchase an NFT, ensure that you also own the tangible or digital product outright (in the form of a JPEG, mp3 or PDF file).

The definitive guide to avoiding NFT frauds

Scammers are constantly infiltrating the NFT sector, which is why you cannot go it alone. The best approach to avoid current and future NFT frauds is to keep educated, which is why networking with other NFT fans becomes critical.

Your journey towards NFT may begin with self-education, according to Denise Schaefer, co-founder of cryptocurrency teaching platform Surge. However, you will ultimately run into a brick wall and become overwhelmed - at which point you will need to rely on more seasoned collectors and makers with whom you identify.

"As I began investigating independently and down the rabbit hole, two concerns were clear to me that I wanted to assist in resolving," Schaefer explained.

"For starters, I felt as though there was a dearth of simply accessible and digestible content available. And the other was that the place had an overwhelming male presence."

If you're new to NFTs and unsure where to start, check out Surge's free Discord channel for women and non-binary persons interested in creating and collecting NFTs, or Curious Addys' Trading Club, a crypto community for novices.

"It's been incredible to see how quickly things have grown," Schaefer told CoinDesk. "We now have a newsletter and a Discord server that is a safe area for women."

Within the Surge Discord channel, you may come across someone who has never created a Metamask wallet before receiving guidance from someone operating a decentralised finance (DeFi) group, Schaefer explained.

"It's fantastic to have people of various levels assisting one another on their path," Schaefer remarked.

Why is it that NFT scams are so prevalent?

"NFTs are essentially at the ICO [initial coin offering] stage right now," said Nelson Merchan Jr., co-founder and CEO of blockchain public relations firm Light Node Media. "Anyone can simply hire an artist to design a specified amount of NFTs and then leverage crypto influencers to generate a lot of publicity."

This "hype" makes it difficult to determine who is a trustworthy creator in the NFT sphere and who is a bad actor, all the more so now that so many NFT collectors and makers employ popular cartoon NFT profile images (PFPs) and anonymous Twitter handles.

And it is not just cryptocurrency newcomers who are at risk: Merchan, who has been investing in cryptocurrencies since 2017, has bought NFTs from the popular Pudgy Penguins collection since it launched in July 2021. Now facing what some sites are referring to as a coup, the founders of Pudgy Penguins are under fire from irate collectors who allege the initiative fell short of its promise to create an in-depth virtual game.

"People are developing these NFTs for between $50,000 and $60,000 – and sometimes even less – and then earning a million dollars in NFT sales if they do it well," Merchan explained. This raises issues of governance and transparency, as collectors naturally expect an NFT inventor or community founder to follow through on a $1 million commitment.

"They're quite well compensated," Merchan stated. "However, at that point, the NFT's value is effectively zero. There is no commerce, there is no game, and there is hardly any community. They have a big treasury fund, but a project that is a complete failure. And it is extremely concerning."

However, are these types of endeavours synonymous with scams? Merchan stated that time will tell.

"When the market turns against everyone, which I believe will take some time, these people will be deemed essentially criminals, because collectors spent all this money on their NFTs, which are now effectively worthless. What are the founders' plans for the money? Are they going to return it? What did they do with it?"

Along with the ethical grey areas associated with NFTs, there are a number of well-known NFT scams in which the bad actors are readily identifiable – and the damages are quite real. Therefore, remain vigilant, make the most informed investment selections possible, and never invest more than you can afford to lose.

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Kevin O'Leary, a successful entrepreneur, investor, and host of "Shark Tank," has made headlines for his perspective on NFTs. According to O'Leary, '22 will be the year of NFTs. Indeed, O'Leary stated that NFTs will exceed Bitcoin in the coming year. O'Leary, chairman of O'Shares Investments, told Yahoo Finance Live that he believes NFTs have true value since they make it simple to digitally account for the inventory, authenticity, and ownership of physical objects in the actual world.

O'Leary cites the possibility of NFTs to digitally document ownership of old watches, works of art, sports trading cards, souvenirs, and other valuable goods as an example. The shark continued by describing how he and his fellow collectors and business experts are confronted with the inventory management and authenticity challenges.

The expectation is that NFTs will alleviate such difficulties, making it significantly easier to authenticate things of significant value, such as vintage timepieces. O'Leary noted that determining the authenticity of a vintage watch consumes a significant amount of time and work. The emergence of NFTs has the potential to remove this work by providing instant confirmation that a vintage watch or other rare object is authentic and worth a significant amount of money.

O'Leary Is a Bitcoin Critic

It's worth noting that O'Leary has previously made a point of referring to Bitcoin as "trash." O'Leary currently believes that investing in cryptocurrencies such as Bitcoin and other alternative stores of value such as NFTs is comparable to investing in Google and Amazon when they initially launched. The shark stated that investing in Google and Microsoft is, at its core, a software investment. He emphasised that Bitcoin is not a physical coin but rather a type of software. Additionally, the underlying blockchain is software that functions as a digital store of value and a mechanism for digitally protecting that wealth.

Investors, O'Leary says, will be eager to invest in software since it is utilised to boost productivity, provides a valued service, and simplifies global economic transactions. Additionally, the shark indicated that federal regulators will provide guidance on cryptocurrency regulation in the coming year, stating, "If we regulate it, if we get institutions involved and figure out a way for them to be compliant, there are going to be trillions of dollars flowing into this space, because it has a pragmatic use."

Complete Transparency

While O'Leary's statements on NFTs and cryptocurrency are undoubtedly encouraging, it is worth noting that he has a conflict of interest. O'Leary has investments in the industry, including WonderFi, which recently acquired Canada's largest cryptocurrency exchange. O'Leary also owns a stake in Immutable Holdings (HOLD.NE), the company that owns NFT.com and the Circle digital payments platform. To maintain complete honesty, it's worth noting that O'Leary is a paid sponsor and spokesperson for the FTX cryptocurrency exchange.

O'Leary Expects NFTs and Cryptocurrencies to Expand in '22

The grumpy shark discussed how NFTs and cryptocurrency are likely to go much beyond their existing boundaries in the coming year. He said that the government of the United Arab Emirates, Canada, and Switzerland are warming to the idea of NFTs and crypto. O'Leary believes that significant capital will flow into such locations in the coming year.

Though the shark is quick to acknowledge that bitcoin is extremely unpredictable, particularly when compared to tech companies, he believes it is a risk worth taking. As cryptocurrency holders are aware, Bitcoin has fallen 40% from its November peak, while the entire crypto industry has slumped since the start of '22.

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One co-owner of a cryptocurrency exchange situated in Kosovo's capital Pristina told Bloomberg he was aware of numerous miners actively looking to sell their equipment. In comparison to other regions where a crackdown has occurred, there have been only "a few instances" of miners relocating to other nations.

"Mining occurred in Kosovo because it was able to conduct it illegally," said Ardian Alaj, co-owner of the exchange. "Exporting activities would entail additional costs that local miners are unfamiliar with."

Kosovo's cryptocurrency

Due to the country's low energy costs, young people in Kosovo have gravitated towards crypto mining in recent years. This was particularly true in the northern region of Mitrovica, one of the country's four Serb-majority regions, which exempts its citizens from paying power bills.

However, in response to rising import costs and power plant breakdowns late last year, the government implemented power cutbacks and proclaimed a 60-day state of emergency. The government then outlawed cryptocurrency mining in response to this energy problem. Kosovo officials have seized 429 equipment used to mine cryptocurrency since the ban was implemented, according to the publication Gazetta Express.

Kazakhstan's case

In Kazakhstan, a similar situation has been unfolding. Cheap energy rates paired with Kazakhstan's geographic proximity attracted enough of China's fleeing miners to increase Kazakhstan's share of the global hash rate from 8% in April 2021 to 18% in August last year. As a result, it surpassed the United States as the world's second largest producer of Bitcoin.

However, the surge of miners strained the Central Asian nation's electrical grid, which is likewise getting weary with the business. Internet failures earlier this month as a result of societal upheaval resulted in a decline in the worldwide hash rate. Although practically all of these enterprises have been rebuilt, some miners continue to ponder their own relocation.

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Concerns about the environment, particularly around Proof-of-Work mining, have hampered the growth of the digital asset industry.

Intel is slated to unveil its new energy-efficient "Bonanza Mine" CPU this February at the International Solid-State Circuits Conference. The processor is characterised as a "ultra-low-voltage, energy-efficient Bitcoin mining ASIC," and it may represent a more environmentally friendly method of Bitcoin mining.

Intel Makes a Significant Contribution to Bitcoin Mining Innovation

The world's top semiconductor maker may join the market for Bitcoin mining hardware with a more environmentally friendly device.

According to the agenda for the ISSCC conference in February, Intel will present "Bonanza Mine: An Ultra-Low-Voltage Energy-Efficient Bitcoin Mining ASIC." According to the title's text, Intel is interested in developing an environmentally friendly ASIC.

ASICs, or application-specific integrated circuits, are processors that are optimised for specific rather than general-purpose applications. ASICs, rather than CPUs or GPUs, are generally used to mine Bitcoin.

While the specifics of Intel's plans remain unknown, there are some indications of the company's trajectory in this area. The business applied for a patent in November 2018 for a "optimised SHA-256 datapath for energy-efficient high-performance Bitcoin mining." SHA-256 is the cryptographic hash function that is utilised in the Proof-of-Work mining technique used by Bitcoin.

Additionally, Raja Koduri, Intel's senior vice president and general manager of accelerated computing systems, revealed last month that the company was trying to address a variety of issues related to the efficiency of blockchain validation. Koduri stated that "doing considerably more efficient" blockchain validation was a "very solved challenge" and that Intel intended to provide certain "interesting hardware" in the near future.

Bitcoin mining presently requires approximately 137.4 terawatt-hours of electricity per year, which is more than many countries consume. However, a significant percentage of this electricity is generated by renewable sources, as the University of Cambridge estimated in 2020 that 39% of "Proof-of-Work" mining is "fueled by renewable energy."

On February 23, Intel is set to unveil Bonanza Mine.

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The Treasury introduced new legislation to address deceptive crypto-asset advertising.

Although 2.3 million people in the United Kingdom possess crypto assets, the government is concerned that some buyers may be unaware of what they are purchasing.

Bitcoin and other crypto-assets are highly unregulated, and investors lack numerous protections.

Similarly, non-fungible tokens are not covered by the new restrictions.

Exaggerate the benefits

The government intends to pass legislation that will subject "qualified crypto-assets" to the same Financial Conduct Authority (FCA) requirements as other financial marketing, such as those for stocks, bonds, and insurance products.

According to a 2018 report by the Crypto-assets Taskforce, which includes the Treasury, the Bank of England, and the Financial Conduct Authority, crypto advertising frequently exaggerates benefits and rarely warns customers about the risk of losing their investment.

The FCA's subsequent research indicated that public knowledge of crypto-assets was deteriorating even as more individuals invested.

Chancellor Rishi Sunak stated that the new regulations would safeguard consumers "while simultaneously fostering innovation in the crypto-asset market."

"Crypto-assets can open up fascinating new avenues for people to interact and invest - but it's critical that customers are not misled by false claims," he said.

Speculation in finance

The government has stated that it is still working on defining the crypto-assets that would be covered by the new legislation.

However, it will exclude non-fungible tokens.

NFTs are frequently used as a method of digital receipt and for the exchange of digital art or "collectibles."

Several of the most precious items are up for sale for millions of pounds.

And the authorities confirmed that many were exchanged in speculative financial markets.

However, it noted that "new sorts of non-fungible tokens have appeared, blurring the line between financial services and digital collector items."

Furthermore, "the government's objective was not to apply financial promotion regulation to non-financial products."

The Treasury, on the other hand, stated that it will closely watch the situation.

'Priority red alert'

The FCA is not the only regulatory body concerned with cryptocurrency advertising.

The Advertising Standards Authority has declared that monitoring crypto-assets such as Bitcoin is a "red-alert priority," in response to concerns that many advertisements do not adequately represent the risks associated with investing.

It has prohibited various crypto-asset promotions, including those from a pizza company and a sports club, and is developing new criteria for advertisers.

Regulators are also taking action on a global scale.

According to Reuters, the Spanish National Securities Market Commission has established new rules governing crypto-asset advertising, including promotions by social media influencers.

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The circumstances behind the strange activity investors noticed on their Crypto.com accounts are beginning to clear significantly.

Several reports yesterday appeared to indicate that a slew of assets had been stolen from investors' accounts, including Shiba Inu, Dogecoin, Ethereum, and Bitcoin. And as a result of this suspicious behaviour, the exchange temporarily halted withdrawals.

Crypto.com's Denial of Existence?

Today, Peckshield, a blockchain security and data analytics startup, announced that about $15 million in crypto assets, including 4.6k ETH, were lost in a hack on Crypto.com yesterday.

The strange activity detected yesterday has now been determined to be the result of this hack.

However, Crypto.com's CEO appears to be denying any losses, stating that the team fortified the infrastructure in the aftermath of the attack. A full report detailing their side of the story is awaited.

Regardless, investors are not pleased, as despite the fact that withdrawals have resumed after 14 hours of outage, some users are still experiencing login troubles 19 hours later.

Numerous others have held Crypto.com accountable for this and are demanding justice by requesting that the exchange reimburse their lost monies.

In any case, if these reports prove to be genuine, this might become the greatest crypto attack of 2022, surpassing the $1.3 million Frosties' NFT rug pull on January 12.

Is There Any Significant Impact on CRO?

While it is true that the incident had an effect on the exchange's token, the impact has not been as severe as one might think. Although the altcoin dropped about 4.3 percent, this does not necessarily represent the claimed hacker's concern.

The coin is clearly following the broader market's cues, which could explain the red candle. Fortunately, the price decline was not severe, owing to the asset's negative 0.38 correlation to Bitcoin.

Going forwards, the only crucial level will be $0.40, as it will act as vital support for the coin. As long as CRO remains above it, investors are protected from immediate losses.

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Jeff Pratt delves into the Mastercard-Coinbase partnership, which will enable customers to purchase non-fungible tokens (NFTs) without using cryptocurrency.

The globe is expanding, and so is DraftKings. As NFTs continue to increase in popularity, this article will act as a clearinghouse for the latest industry news and developments.

If you're new to the Metaverse, have a look at my concise explanation of what NFTs are and how they work.

MasterCard and Coinbase Form a Partnership

Purchasing NFTs is about to get significantly easier. Mastercard announced a partnership with Coinbase, the largest bitcoin exchange company in the United States, on Tuesday. The terms of the arrangement suggest that consumers will be able to purchase NFTs on Coinbase's future marketplace using a credit or debit card, removing crypto from the equation.

The two industry titans are partnering in the intention of streamlining the NFT purchasing process. Currently, in order to acquire an NFT, you must build a wallet, purchase cryptocurrency, then wait several days for the funds to be transferred to your wallet before proceeding.

Since October, when Coinbase announced the impending debut of its NFT Marketplace, over 2.5 million users have joined the business's waitlist, fueling speculation that the startup could emerge as a viable competitor to OpenSea.

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China police have arrested no fewer than eight persons in connection with a rug grab worth RMB 50 million ($7.8 million). The notification was issued on January 14 via the local police department's official WeChat account, along with confirmation that the authorities have also frozen another RMB 6 million ($944,000) in assets.

Suspects in Rug Pulling Arrested in China

Three suspects have been apprehended in three different provinces: Hunan, Guangdong, and Sichuan, following many reports by victims and a series of investigations by the Police from Chizhou city, Anhui province.

Additionally, the police seized expensive automobiles and residences worth "tens of millions" of dollars from these individuals, which are thought to have been obtained from their unlawful operations and the profits generated by them.

However, evidence acquired during the investigations has revealed how the perpetrators carried out the rug pull. They (the suspects) were transferring monies without the investors' authorisation from their accounts to a "anonymous pool." And, the post claims, the monies were subsequently laundered through this pool.

It's worth noting that the entire project had already been scrutinised. However, despite the fact that it passed the security audit, recent results indicate that the founders used alternate code that incorporated a backdoor.

Another Argument in Support of China's Cryptocurrency Ban

China is one of the countries that has officially prohibited all sorts of cryptocurrency activity, including trading and mining. The country announced the move in September, with the goal of controlling activities that could harm individual investors and the economy. And instances such as the one described in this article serve to further demonstrate why China may be taking such a strong position against cryptocurrency.

In June 2021, a single investor lost his entire RMB 590,000 in a typical rug pull when the project founders transferred the funds, shut down the website, and disappeared, according to Chizhou authorities. The post claims that the swindle cost more than RMB 50 million.

Meanwhile, Chainalysis statistics reveal that investors will lose nearly $2.8 billion in 2021 alone due to rug pulls.

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