Crypto Pirates

While the announcement is brief in its details, it demonstrates the company's interest in blockchain gaming.

Significant Points to Ponder

* Square Enix's CEO announced the company's strategy for non-financial tokens, blockchain-based games, and the Metaverse.

* President Yosuke Matsuda dubbed 2021 "year one" for NFTs and suggested that as the technology becomes more prevalent, prices will correct.

* According to the CEO, in 2022, blockchain will be a "significant strategic theme."

Square Enix, a game developer, announced plans for blockchain and near-field communication (NFT) development on New Year's Day.

NFTs and the Metaverse: A CEO's Perspective

Square Enix announced its plans to develop blockchain, NFT, and Metaverse initiatives this weekend in a letter from company president Yosuke Matsuda on New Year's Day. Matsuda noted in the letter that last year, non-fungible tokens, or NFTs, drew considerable attention. Due to the rapidly growing user base of NFTs, he dubbed 2021 "year one."

Matsuda acknowledged that NFTs have increased the liquidity of digital goods, but noted that NFT trading has become somewhat "overheated" and speculative in nature. Matsuda anticipates that as NFTs become more prevalent, price corrections will occur.

Matsuda also brought up the Metaverse, the virtual reality trend that Facebook sparked in October. He expressed hope that as the Metaverse concept takes shape, it will "induce changes that have a more significant impact on Square Enix's business."

This Year Will Begin the Implementation of a Blockchain Strategy

Matsuda made no specific NFT or Metaverse product announcements. He did mention, however, that Square Enix developed a medium-term strategy in 2020 that would prioritise investments in artificial intelligence, cloud gaming, and blockchain games.

He added that "starting in 2022, Square Enix will make decentralised blockchain games a major strategic theme."

Matsuda explained that games that incorporate blockchain tokens can offer players incentives to play while also rewarding users for creating user-generated content for those games.

Square Enix has faced public backlash, as has a number of other corporate NFT strategies. Users have criticised NFTs as faddish and expressed concerns about blockchain mining's environmental impact.

The Cryptocurrency Gaming Industry Is Growing in Popularity

Prior to March 2021, Square Enix created a series of NFTs for its Million Arthur franchise. These NFTs did not contain any game content, but rather contained digital artwork.

Additionally, the company invested $2.01 million in Animoca Brands in 2020, the company behind the blockchain VR game The Sandbox and other blockchain games.

Square Enix is one of a growing number of video game companies exploring blockchain technology. Ubisoft recently announced the launch of its own near-field communication (NFT) platform. Meanwhile, EA and Epic Games have indicated an interest in the technology, and GameStop is developing its own NFT marketplace.

Other companies, such as Steam, have outright prohibited crypto and NFTs, while others, such as Xbox, are cautious.

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Investors who were previously anti-crypto are increasingly turning to Bitcoin and its brethren as a hedge against concerns about fiat currency inflation. One role model is Hungarian-born billionaire Thomas Peterffy, who stated in a Jan. 1 Bloomberg report that it would be prudent to have 2-3% of one's portfolio in crypto assets in the event that fiat currency "goes to hell." According to reports, he is worth $25 billion.

Peterffy's firm, Interactive Brokers Group Inc., announced in mid-2020 that it would begin offering cryptocurrency trading to its customers in response to increased demand for the resource class. The organisation currently supports Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, but will add another 5-10 coins this month.

In early December, the billionaire predicted that Bitcoin would reach $100,000 before markets began to retrace their steps.

According to Bloomberg, Peterffy, who owns an undisclosed amount of cryptocurrency, stated that it is possible for digital assets to generate "extraordinary returns" even if some go to zero. "I believe it is possible for it to go to zero, and I believe it is possible for it to go to a million dollars," he added before concluding, "I have no idea."

Ray Dalio, the founder of Bridgewater Associates, is another well-known billionaire who disclosed last year that his portfolio included some Bitcoin and Ethereum. This revelation comes just months after he cast doubt on crypto's ability to act as a store of value.

Dalio stated in late December that he was impressed with the longevity of crypto, before adding, "Cash, which most investors believe is the safest investment, is, in my opinion, the worst investment."

He has since shifted his position and now views crypto asset investments as "alternative money" in a world where "cash is trash" and purchasing power is eroding due to inflation.

Paul Tudor Jones, a billionaire hedge fund manager, also purchased Bitcoin last year, describing the purchase as a hedge against inflation.

Pandemic-induced stimulus packages have wreaked havoc on economies worldwide, with long-term consequences. In the United States, inflation has reached a four-decade high of 6.8%. As the cost of daily goods continues to rise, this has resulted in an increase in the Consumer Price Index (CPI).

The billionaires have already recognised the dangers associated with fiat currencies and central bank manipulation, and are increasingly gravitating towards crypto assets. By 2022, if the trend continues, more wealthy investors may join their ranks.

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You may live in this world now, but there will be others to populate in the not-too-distant future (no, we're not talking about Mars, sorry Elon). Enter the metaverse, the year's hottest topic. Between the third and whatever pandemic wave we're currently experiencing, the term crept into our lives - and hasn't left. The latest tech buzz has the usual suspects (read: Facebook/Meta, Microsoft, and the rest of the Silicon Valley crowd) scrambling for a piece of the action, but smaller players are also getting in on the act. But what is the point of all this metaverse fanfare? And what does this have to do with blockchains, NFTs, or living in the internet 24 hours a day? There is a great deal to unpack, so let's get started.

What is the metaverse, then?

To begin, defining the metaverse is a tall order. We can all agree that there has been plenty of yada yada, but at the end of the day, would you be able to explain what a metaverse is to your grandfather over Sunday roast? Due to the fact that we are discussing something that does not yet exist, it can become perplexing. To keep it simple, a metaverse is a shared virtual space that is hyper-realistic, immersive, and interactive due to the use of augmented and virtual reality technology.

Within a metaverse, there may be multiple virtual worlds where people can engage in a variety of activities as a result of the fusion of physical and digital. Rather than staring at a screen as you do now, a metaverse will allow you to immerse yourself in all your online experiences, such as shopping, meeting friends and family, attending a concert, and even completing official paperwork.

The metaverse offers several significant advantages over what you currently receive for your screen time (have you been watching a lot of television lately? We're also guilty of this), so it all comes down to integrating your daily activities into a highly interactive platform that enables you to accomplish more in a single location.

This concept has existed for a long period of time, at least since Neal Stephenson coined the term metaverse in his 1992 dystopian novel 'Snow Crash' (to be fair, he has distanced himself from any metaverse plans). And many of us have encountered meta references in pop culture, such as in The Matrix, Ready Player One, or Tron, so the concept's fundamentals are not unfamiliar.

To begin, here is a breakdown of some of the characteristics that define a metaverse:

BOUNDLESS - As a 3D virtual space, the metaverse transcends all physical and non-physical barriers. It's an infinite space with no restrictions on the number of people who can use it concurrently, the types of activities that can take place, or the industries that can enter. It significantly increases accessibility compared to current internet platforms.

PERSISTENT - A metaverse is impervious to unplugging, rebooting, or resetting. Users can access it at any time and from any location in the world, ensuring that their experience is always consistent. A metaverse evolves over time as a result of the collective contributions of its users, such as the content and experiences they create.

DECENTRALIZED - The metaverse is not owned by a single corporation or platform, but by its users, who can also exercise control over their personal data. Blockchain technology plays a significant role in this (more on that later), as it ensures that all transactions within a virtual world are transparent, easily traceable, and secure at all times.

IMMERSIVE - Whether you're wearing a virtual reality headset, augmented reality glasses, or simply your smartphone, you'll be able to experience a new level of immersion and interactivity, where all human senses are engaged fully and users feel more present in their experiences. As a highly realistic space, the metaverse will also be able to adapt to its users, who will have direct control over its environments, objects, colours, and lighting, among other things.

VIRTUAL ECONOMIES - Participants in the Metaverse can participate in decentralised virtual economies powered by cryptocurrency (such as Sensorium Galaxy's own SENSO. This includes marketplaces where users can purchase, sell, and trade digital assets such as avatars, virtual clothing, non-fungible tokens, and event tickets.

SOCIAL EXPERIENCES - The metaverse's lifeblood is its users. Each participant in a virtual world shares experiences and contributes to the metaverse's future through user-generated content, ranging from virtual creations to personal stories and interactions with AI-powered avatars.

Indeed, experiences resembling the metaverse existed prior to Facebook's recent Meta rebranding. Earlier iterations can be found in games such as Second Life and The Sims, in which users have complete control over their online avatars' lives. Even as recently as 2009, Facebook was experimenting with pre-metaverse experiments such as Farmville, a game that allowed players to manage virtual farms and sell their produce in exchange for Farm Coins. And, while these platforms incorporate elements of the metaverse, they remain isolated events with little effect outside of their original platform.

True metaverses are continuous experiences that incorporate elements from multiple platforms and audiences. Now that we've nailed down this component, what else could make the metaverse tick?

Cryptocurrency keeps the metaverse afloat.

Within the metaverse, anything is possible. And by anything, we mean anything, because nobody truly knows what the future holds. For the time being, gaming and entertainment are leading the race, as they have the most developed infrastructures capable of being adopted and evolving within a virtual world. A significant factor in this is their virtual economies. Consider the games Roblox, Axie Infinity, and Fornite. These metaver-inspired platforms have soared to prominence, not just for their entertainment offerings, but also for their thriving marketplaces, where users can buy, sell, and exchange items in exchange for native tokens such as V-Bucks or AXS. All of these digitally native spaces rely on a thriving virtual economy to generate new assets (such as NFTs), experiences, and activities, laying the groundwork for the metaverse's economics.

There is no point in living in a metaverse if the economy cannot support the users' activities (and financial ambitions). Thus, creating easily monetizable value is a critical component of any virtual world. Bear in mind that the metaverse is capable of hosting a variety of activities, and users require a compelling reason to enter and remain. Competition, scarcity, supply and demand are all examples of real-world economics that anyone can understand.

Blockchain-based currencies enable the creation, exchange, sharing, and tracking of all assets within the metaverse to be done easily and securely, potentially allowing items to be moved seamlessly between worlds or meta destinations by their users. For example, one SENSO token is worth $10 within Sensorium Galaxy. This rate is applicable to those purchasing SENSO using conventional fiat currency. However, SENSO is also traded on cryptocurrency exchanges at a price slightly above $2.5 at the time of press, which means that purchasing SENSO on the open market can provide users with a dynamic discount.

Additionally, holding SENSO provides metaverse users with additional benefits, such as participation in metaverse governance via a DAO, where users can join the Council and gain voting rights on product decisions, among other perks.

A blockchain-based decentralised economic model bridges the gap between gaming and the metaverse, ushering in a new era of digital-native assets and monetisation opportunities. Unlike when playing a game, where the developer owns and controls all in-platform assets via a centralised server system, users own and control their entire experience in the metaverse. This category includes artistic endeavours such as works of art, music, and dance choreographies. These can be minted as NFTs and sold in exchange for SENSO in metaverses such as Sensorium Galaxy, in a completely secure environment where ownership and authenticity are always preserved by the blockchain.

Blockchains such as Wakatta add another layer of functionality by introducing new types of non-fungible tokens (NFTs) that are upgradeable, time-limited, and text-based. This adds to the excitement of the metaverse because you will be able to not only create NFTs of your work but also collaborate with other creators or artists to build on top of existing art without it being illegal (read infringing on copyrights, intellectual property or ownership rights). Similarly, Wakatta's NFTs can assist metaverse event organisers in tokenizing tickets and game developers in issuing in-game assets tied to specific time periods.

At the end of the day, the metaverse is synonymous with large sums of money. According to some estimates, the annual revenue potential for virtual worlds could reach $1 trillion, spanning segments such as advertising, digital events, and e-commerce. Thus, it is reasonable to conclude that - given the metaverse's current state of development - now is not the time to fall asleep at the wheel.

Fasten Your Seatbelts, We're Going Meta

Thus, you've chosen to swallow the red pill and discover just how deep the metaverse's rabbit hole truly extends. What happens now? To begin, you'll require hardware. The good news is that you don't have to go out and purchase an expensive piece of high-tech equipment. Your smartphone is sufficient to enter the metaverse, and there are numerous meta features available in Sensorium Galaxy's mobile application, for example. The only caveat is that you may end up missing out on much of the meta experience, as you will be missing out on the immersive aspect of the metaverse, which is truly spectacular.

While a phone is ideal for a sneak peek, for the full experience, you may want to consider investing in a VR headset or, if you're not ready to go all-in, a pair of augmented reality smart glasses. There are numerous factors to consider when determining how to enter a metaverse. Choosing the right VR headset is probably the most critical factor that will determine whether your experience is a success or failure. The advantage of VR over other mediums is that you become completely immersed in the metaverse and can achieve a genuine sense of presence. Additionally, depending on your headset, you'll be able to communicate with others via your chosen avatar and engage all of your senses.

When it comes to headsets, Meta (formerly Facebook) is miles ahead of the competition, with its Meta Quest 2 headset continuing to be the most sought-after on the market, followed by Playstation VR and Valve Index. Demand for VR headsets has increased in recent years, but it is expected to increase even more in the coming years, no doubt as a result of all this talk about the metaverse. Apple is also rumoured to be entering this hotly contested race.

After a decade of hype, it appears that both technology and high-quality virtual reality offerings are catching up, and not just in gaming. Applications have proliferated across a variety of industries, including fashion, music, education, and sports, resulting in a dramatic increase in demand.

This trend is likely to continue as more platforms migrate to virtual reality and make their first foray into the metaverse.

Meta, everywhere

As previously stated, some metaverse-like experiences are already available. Roblox, a video game platform, has experimented with meta events, such as hosting Gucci's 100th anniversary or opening the NFL's first meta store. Meanwhile, rival Fortnite is not far behind, having hosted massively successful virtual concerts featuring Ariana Grande, Travis Scott, Marshemello, and others. However, there are numerous perspectives on the metaverse's evolution, and they are likely to follow some of the current trends:

Corporate: With a large portion of the world's population shifting to remote work during the COVID-19 pandemic, many of us are already accustomed to working online. As Facebook (sorry Meta) has already attempted to demonstrate with Horizon Workrooms, the metaverse would be a continuation of that. Others, such as Microsoft, are following suit, and we can only anticipate more businesses attempting to send their employees into the metaverse.

Gaming: Is enjoyable, you can meet new people and earn a lot of money. That is why Axie Infinity, Sandbox, Illuvium, and Decentraland are leading the metaverse race. With a robust social network and a decentralised economy at their core, these are the platforms that are most likely to attract users to the metaverse.

Entertainment: Downtime in the metaverse can quickly take on a life of its own. From interacting with real-world users and making friends with AI-powered avatars to witnessing your favourite performers headline a mind-blowing virtual concert, the metaverse elevates entertainment to new heights. Sensorium Galaxy is a metaverse devoted to out-of-this-world encounters. Constructed in collaboration with some of the world's most prominent artists, including David Guetta, Armin van Buuren, and Steve Aoki, this metaverse features an expansive musical catalogue that appeals to a vast universe of fans. Sensorium Galaxy will also include additional content hubs, such as a world dedicated to meditation and self-actualisation practises.

Real Estate: Are you experiencing a rent crunch? Are you unable to purchase a home? Is there no obvious way to escape the rat race? While real-world real estate may be out of reach, purchasing a plot of virtual land could make you extremely wealthy. Only a few days ago, Decentraland set yet another metaverse record with the sale of a $2.4 million 'virtual estate.' And there is plenty more to purchase in virtual worlds such as Sandbox. You'll find not only land, but also houses and yachts (complete with helipads, hot tubs, and DJ booths) for those interested in more exotic real estate options.

However, when it comes to the metaverse, you're likely to find whatever you're looking for, regardless of your field of interest. With this many players, the only limit to the possibilities of virtual worlds is one's imagination.

Enter the metaverse... but when?

A fully developed metaverse may be years, if not a decade, away. There are still numerous technical obstacles to overcome, beginning with the fact that the world lacks an online infrastructure capable of supporting millions (or even billions) of people simultaneously accessing the metaverse. Additionally, an uninterrupted and reliable internet connection is a critical component of the metaverse, as a glitchy, 'loading' virtual world scenario is the polar opposite of what a genuine metaverse should look like. However, 5G and edge computing technologies are still in development and are currently incapable of meeting the demands of a complex infrastructure such as a metaverse. Additionally, there are other concerns regarding data privacy and security. Only time will tell when entering the first true metaverse will become a reality - but when it does, we'll be there to greet you.

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The world's largest card company has just increased its bet on crypto. Visa announced today the launch of a crypto advisory practise within its Visa Consulting and Analytics (VCA) division for its clients and partners.

The announcement comes just months after Cuy Sheffield, Visa's head of cryptocurrency, declared the asset class "cool" at a fintech conference last month.

The payments behemoth made headlines earlier this year when it acquired a CryptoPunk NFT, but its decision to open a dedicated crypto consultancy demonstrates that its efforts to capture crypto market share in a crowded field extend beyond marketing stunts.

Visa's partnerships with cryptocurrency exchanges have more than doubled in the last 18 months, Sheffield told TechCrunch. Consumers have also spent about $3.5 million on crypto-linked card programmes, up from $1 million in July, Sheffield said.

Additionally, it announced the findings of a new global survey it conducted on consumer attitudes towards cryptocurrency, which revealed that 40% of its 6000 + respondents would consider switching primary banks to one that offers crypto products.

Sheffield said the company has received "an incredible volume of inbound calls from hundreds of clients, partners, and traditional financial institutions" interested in integrating cryptocurrency into their offerings. Visa's consulting arm employs approximately 700 people, though the company did not disclose the number of employees associated with the crypto practise.

"We believe Visa is well-positioned as a global neutral brand with deep expertise in crypto, capable of abstracting away some of the complexity associated with these emerging technologies and assisting banks in incorporating them into their core products," Sheffield said.

Visa recently announced a $60 million Series B investment in blockchain compliance firm TRM Analytics. American Express and Citibank also contributed to the fundraising effort. Visa is just one of several card issuers scrambling to gain a foothold in cryptocurrency, which is threatening their fee-based business model by serving as the new underlying infrastructure for payments.

Mastercard, for its part, launched a cryptocurrency rewards programme in October, utilising Bakkt as its digital asset custodian.

Visa does not hold crypto assets directly, but rather partners with Anchorage Digital – a company in which it first invested in 2019. Visa is expanding its crypto API platform on top of Anchorage, Sheffield explained, enabling other banks to access their custodial services.

Sheffield anticipates growth in both Visa's crypto-linked debit card programmes and use cases such as central bank digital currencies (CBDCs). Although only seven countries have established CBDCs to date, The Atlantic Council reports that 87 more are considering them.

Visa hopes to capitalise on this interest by assisting banks in developing CBDC-related products, according to Sheffield.

"We've spent a great deal of time researching the infrastructure that CBDCs would use to deliver consumer experiences and the way consumers would interact with them.

We're taking that expertise and the engagements we're having with central banks and assisting banks in considering their role in preparation, as we believe a number of countries will take this path," Sheffield explained.

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Is 2022 going to be the year of DAOs? 2021 was unquestionably an explosive start.

The explosive and disruptive innovations associated with blockchain appear to stem from a shared ontological hunger: that deeper aspect of the human being that yearns to fill in the void that separates us from other animal species.

Spoiler alert: the void is unfillable.

However, attempting to do something with it – creating, innovating, going against the system, etc. – is what keeps us moving, conscious, and alive. The alternative is to devolve into mindless zombies that do exactly what they are told.

What You Should Know About Decentralised Autonomous Organisations

Thus, Daos. Smart contracts, decentralisation, and collectively devising an alternative to traditional structures: three powerful men at the top and thousands of workers unable to participate in major decisions affecting the environment to which they devote their lives. Essentially, the majority of corporations.

Web3, DeFi, the metaverse, NFTs, and DAOs all flourished in 2021. It has all begun to gain mainstream acceptance. It's growing in size and popularity, and it's becoming ubiquitous. However, there is so much happening so quickly that the larger picture of these innovations is not yet defined.

Nonetheless, it's critical to approach the urge that underpins everything that's exploding around us, as it's almost certain to become ingrained in everyone's life.

Therefore, what are DAOs? Correct, but that didn't tell you much.

"They represent a sea change in the way humans coordinate," Spencer Graham, DaoHaus' project lead, explained. He believes that many future businesses and organisations will be structured as DAOs.

Additionally, he noted that the word "decentralised" is probably the most critical one in there. Nowadays, the majority of these groups are focused on distributing an organisation's power among its members in order to make decisions and changes: there is no one man in charge.

They enable the achievement of collective goals without requiring complete trust in all team members – because they simply cannot corrupt the process, and trust is based on the algorithm as the sole intermediary – or an external legal framework to keep things on track.

The governance of DAOs is designed to ensure that each vote is taken into account. Nothing will be carried out if a quorum is not present. You are not required to be suspicious of ballot tampering. Consider how straightforward presidential elections would be.

Review of the Year 2021

A word of caution: I'm not about to compile a list of trendy blockchain startups. Let us discuss what is occurring.

DAOs are becoming more difficult to define. To begin, they serve as a means of coordination. However, when we delve into the details, we discover that there are numerous types of DAOs.

Variations are largely determined by the purpose for which the organisation is being used: what is the organisation being used for?

DAOs have the potential to displace large entities and give small businesses a chance to compete against venture capitalism. They could also be an investment club, with members pooling their funds to achieve a common financial goal.

Primarily, I believe that the majority of people in crypto are either attempting to earn money, create something of value, or both. All of the options are acceptable.

Individual members of a DAO are unlikely to be able to accomplish their objectives on their own. As a result, people require people.

Indeed, people require other people.

We've all become a little too cynical at this point to believe it, but it's true.

When you truly observe how the most critical aspects of crypto operate – those that have the potential to have a direct impact on society – it becomes an unavoidable reality that we require one another to accomplish the greater goals.

In 2021, a DAO attempted – and nearly succeeded – in acquiring one of the most valuable copies of the constitution. Their efforts became so valuable and popular that additional DAOs were formed to purchase items such as Jodorowsky's Dune Manuscript and even an NBA team.

While this may sound geeky, it's also heartwarming to see how people are discovering ways to gain access to things they could never have imagined – and stick it to the establishment.

It's also worth noting that 2021 was a year of despair. People are fed up with oppressive and toxic work environments.

What Is the Issue?

While the organisations' passion for resolving large systemic, institutional issues sounds admirable and encouraging, passion always has a dark side. There are concerns about smart contracts and decentralised autonomous organisations (DAOs): could they be a scam? Is it possible that reliance on smart contracts will become a hindrance to business decision-making?

In some cases, information has been withheld from the community and public, defeating the purpose of decentralisation and calling into question the legitimacy of certain organisations. Additionally, in 2021, we saw that some DAOs can be wolves dressed as sheep.

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Summary

* Going into 2022, the most valuable cryptocurrency narratives are about NFTs, Ethereum scaling solutions, and crypto-gaming and metaverse environments.

* It is highly likely that decentralised web 3 networks will eventually supplant FANG's hegemony over the 'future of technology' narrative.

* Investing in Ethereum is the best way to capitalise on the overlapping growth of these cryptocurrency sectors.

The objective of cryptocurrency investors is to profit financially from the widespread adoption of virtualisation. However, the optimal method is not as straightforward as 'selecting the best technology.' While the best technology will always win in a Web 2 environment, the Web 3 market operates according to entirely different rules.

To be a successful Web 3 investor, I believe it is necessary to understand investment narratives in addition to technology-induced network effects.

The Most Significant Cryptographic Narratives

While the overarching cryptocurrency investment thesis is that centralisation is bad and decentralisation is good, this broad concept is subdivided into multiple layers in the crypto market based on purpose and technology.

NFTs

NFTs have unquestionably been the year's biggest surprise mover. This appears to be for a variety of reasons:

* Psychologically - NFTs satisfy an innate human desire for community and companionship (a demand which has increased due to Covid).

* Scarcity - NFTs amplify digital scarcity, frequently with circulating supplies of fewer than 10,000 unique pieces.

* Virality - communities of voluntary NFT holders are financially rewarded for spreading the word about their respective projects. This results in organic and cost-free marketing for the NFT initiative.

NFTs are fundamentally distinct from coins or tokens. Their customisability, in combination with their proclivity for forming closed and anonymous communities, is a novel concept for the human race. NFTs have successfully evolved into a distinct and new sector of the cryptocurrency economy as of now.

To comprehend NFTs, it's necessary to remember that everyone desires to feel significant and recognised. This is precisely why projects like CryptoPunks and Bored Ape Yacht Club have exploded in popularity over the last year.

I believe that NFTs are much larger than the majority of people realise. According to JPMorgan's November analysis, the total NFT market cap is currently over $7 billion (although other sources claim $22 billion and $44 billion). To my mind, holding Ethereum (ETH) is the best way to benefit from the NFT market's rapid and upcoming growth.

Scaling Ethereum Solutions & Alternatives

Polygon (MATIC), Terra Luna (LUNA), Solana (SO), and Avalanche (AVAX) are the market's top gainers at the moment in the scalability/bridges/layer-1 sectors. I believe that in 2022, there is a compelling bull case for Ethereum scaling solutions and various layer-1 alternatives to make significant gains.

Currently, the market consensus is that FANG stocks are the future of technology. Alternatively, I believe that web 3 is the future of technology. My justification is straightforward:

* As people spend an increasing amount of time online, they will naturally desire property rights within these virtual networks.

* Decentralised networks are superior to institutions or corporations because they enforce property rights through unbiased mathematics.

As society becomes more virtualised, it appears likely that individuals will gravitate towards the most equitable and valuable networks. At the moment, Ethereum is the best fit for this outcome.

However, due to Ethereum's strong network effect, there is still a highly competitive market for Ethereum alternatives. While this market is significantly smaller than the ETH network as a whole, it is still extremely valuable.

Polygon is my personal favourite token in the scalability investment narrative (MATIC). Polygon is a scalable, high-throughput sidechain that is connected to the Ethereum network. This means that Polygon benefits directly from Ethereum's growth and can compete with the technology and scalability of alternative cryptocurrency networks.

Environments for Crypto-Gaming and the Metaverse

This final narrative is inextricably linked to the growth of NFTs. Until now, the crypto economy has concentrated its efforts exclusively on the development of decentralised networks. As successful implementations of these networks mature, demand from users seeking to do something with them will increase.

I am most bullish on play-to-earn (P2E) cryptocurrency gaming and metaverse environments. The Axie Infinity (AXS) play-to-earn game, as well as the Decentraland (MANA) and Sandbox (SAND) metaverse environments, have all seen explosive growth over the last year.

Crypto-gaming is expected to gain traction in the near future, as hundreds of gaming studios are currently developing crypto-native titles. It is critical to note, however, that this growth will extend beyond the traditional definition of gaming.

There is an emergence of decentralised metaverse environments. These 'games' are designed solely for the purpose of allowing players to exist - there is no specific purpose to these games. Users in these environments retain the option of purchasing and developing virtual land, as well as attempting to earn money from it.

At the moment, functional metaverse environments such as Decentraland and The Sandbox replicate the gameplay of Grand Theft Auto V or Minecraft. What distinguishes metaverse environments from other virtual worlds is their incorporation of tokens, non-fungible tokens, and decentralised networks.

I concur with Bill Gates' prediction that "within three to five years, the metaverse will host the majority of your office meetings." This outcome, I believe, is an unavoidable byproduct of society's virtualization. Once again, as we become more virtualized, people will seek out the best environments in which to spend their time. Currently, many businesses operate via countless and monotonous Zoom calls due to a lack of other options. I can see these Zoom calls eventually relocating to the metaverse.

Conclusion

Finally, I believe Ethereum is the best overall investment for 2022. If you want to outpace Eth's growth, I recommend looking for high-quality projects that fit the NFT, scalability, crypto-gaming and metaverse narratives.

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What transpired

Altcoins endured a difficult day that began late Monday night and continued into Tuesday. While major cryptocurrencies led the decline on Tuesday, smaller coins magnified the losses of larger market cap coins.

In the last 24 hours, XRP has fallen 8.3 percent, Cardano (ADA) has fallen 7.7 percent, Chainlink (LINK) has fallen 12.4 percent, and Crypto.com Coin (CRO) has fallen 10.3 percent, to name a few. Several factors are likely to have an effect on trading today.

Thus, what

The first thing to note is that all cryptocurrencies are in the red, which could result in a cascading decline across the market. Coinglass.com reports that in the last 24 hours, $521 million in long crypto trades has been liquidated from 164,115 accounts. The selling began on Monday with the liquidation of $418.5 million in long positions, and the pace appears to be picking up on Tuesday.

This may seem insignificant, but when traders borrow money on margin to take a long position (bet on an asset's appreciation) or a short position (bet on an asset's decline in value), they may be forced to sell immediately if they lose too much money. Brokers and exchanges require that a certain percentage of an account be held in cash or the market value of a security, allowing these positions to be liquidated if a portfolio contains an excessive amount of leverage.

The last time cryptocurrencies fell this precipitously was on December 2 and 3, when over $2 billion worth of cryptocurrency was liquidated across multiple exchanges. Cryptocurrencies stabilised in the days following the crash, but today's selling has pushed some to levels close to a month ago's lows.

What is the next step?

Given the market's lack of real news, I'd chalk today's move up to normal volatility. This week, the market has seen a general decline in trading volume, which can result in bizarre price movements. Many traders use a lot of leverage in crypto, which can result in the type of liquidations I mentioned previously, triggering a rapid sell-off.

As the market resumes normal trading in early 2022, I believe it is critical to see increased adoption of crypto as a utility product, whether through NFTs or decentralised finance products.

I believe that the cryptocurrencies that can best develop their ecosystems will ultimately be the investors' winners. Investors have been bullish on XRP, Cardano, Chainlink, and Crypto.com because they are all developing their own versions of a cryptocurrency ecosystem. Long term, investors should focus on these ecosystems, not on the volatility of a few days of trading, which is why today's big move should be ignored in the short term.

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Crypto gaming is a hot topic right now, particularly in a world where blockchain technology is transforming numerous industries. We've seen some fantastic crypto projects and some that have flopped spectacularly. As a result, while some users have benefited from blockchain technology, others have fallen victim to scammers.

'A gaming guild is a group or collection of gamers who come together to play video games and share data.' While the term 'guild' is the most frequently used in the gaming world, such groups may also be referred to as factions, clans, or communities.

For decades, gaming guilds have existed. However, esports (competitive gaming) is the reason gaming guilds have recently grown in popularity. Competitive gaming guilds like FaZe Clan, Cloud9, and Team Liquid exemplify traditional gaming.

Crypto gaming guilds all have their own distinct visions. While some are interested in amassing millions of dollars through P2E gaming, others are interested in developing strong communities that produce the best alpha and ultimately the best projects.

How It Began

The Philippines has been dubbed the originator of today's play-to-earn concept. While Covid-19 was wreaking havoc on the world, gamers in this country were earning money from the Axie Infinity game. #ThankYouAxie was a popular hashtag during this time period, as people cashed in their winnings, photographed their shopping, and captioned their photos with this hashtag.

As interest in this game grew, so did its demand. As a result, demand for Axies, the game's in-game tokens, increased. Dizon, the founder of Yield Guild Games (YGG), recognised an opportunity and began leasing his Axies through what are referred to as 'scholarships.' Scholars would receive 70% of the proceeds, the guild would receive 10%, and community managers would receive 20%. Others quickly adopted the model, resulting in the formation of new guilds.

The Best Cryptocurrency Gaming Guilds

Yield Guild Games

Yield Guild Games is one of the most well-known crypto gaming guilds, with a $420 billion market capitalisation. YGG operates a Decentralised Autonomous Organisation (DAO) that invests in virtual world non-fungible tokens (NFTs). Gabby Dixon, a gaming veteran and Axie player, founded the guild in 2020. 

YGG is one of the largest crypto gaming guilds on Discord, with over 74,000 members. It's also worth noting that it's the originator of P2E gaming guilds. YGG has adopted the moniker "Guild of Guilds" in recognition of the fact that it encompasses nearly every other popular guild in the space.

Merit Circle

Merit Circle is governed by a DAO, which serves as the primary holding company for all subDAOs. The most visible collaboration is with Axie Infinity, though plans exist to collaborate with Illuvium, Hash Rush, and Star Atlas.

Both YGG and Merit Circle have subDAOs. That is, Axie Infinity has a subDAO within Merit Circle that is limited to holding only Axie assets. If one of the subDAOs is compromised, the other games are unaffected.

$MC is the guild's native token. This guild offers two staking options. For the MC token, a single stake is required, as is Liquidity Pool in the MC/ETH pair.

UniX Gaming

UniX Gaming runs a DAO with over 1,200 scholars. UniX is compatible with a variety of games, including Axie Infinity, Star Atlas, and Splinterlands. Each of these games has its own subDAO that stores its own assets.

$UNIX is the guild's native. The DAO generates revenue in a variety of ways, including through Axie breeding, launchpads, scholarship revenue, and revenue generated by the NFT marketplace.

Astra Guild Ventures

Astra is governed by a DAO, which receives 20% of all guild revenue. On Axie Infinity, the guild has over 2,000 scholars. Transparency is one of the characteristics that set Astra apart from other guilds. The earnings dashboard is conveniently located on the website, allowing users to see how much the DAO is earning and the total amount of assets held by each subDAO. $AVG is the guild's native token, with a total supply of 2 billion tokens.

Good Games Guild

The Good Games Guild is another well-known organisation, with over 300 scholars enrolled in its programme. The guild boasts exciting features such as its game incubator and investment arm, Good Game Labs. The Good Games Guild has a DAO that receives 20% of all guild revenue.

Titan Hunter, DopeWars, Gamestation, and The Monopolist are just a few of the brands with which GGG has partnered. AU21 Capital, Animoca Brands, Basics Capital, and OKEx Blockdream Ventures are among the notable investors in Good Games Guild. The guild's native token is $GGG, and the total supply is capped at 100 million tokens.

GuildFi

GuildFi is a guild dedicated to establishing an interconnected ecosystem of games, communities, and NFTs that enables metaverse interoperability while also maximising player benefits. The guild is dedicated to resolving access and discovery issues while also maximising players' performance and rewards.

Finally,

GameFi and play-to-earn opportunities are reshaping the gaming landscape, and the guilds mentioned previously have been pioneers in offering these opportunities. This is an ideal strategy for earning money in the virtual world while avoiding some of the drawbacks of the real world. The GameFi space is still in its infancy, and we can only speculate on the future of the entire blockchain space.

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Cryptography, eh? We've all heard digital currency evangelicals sing seductive, utopian platitudes: It is altering the world (or, as one BitConnect employee put it, "The world is no longer as it once was!")! It is reshaping finance (no banks required)! It's going to make you filthy rich, you moron! All of this is excellent. However, here's what it's likely to do: Empty your pockets and abandon you to wander the streets of the nearest city, singing the blues about how a hacker stole your life savings. 

It's a well-known fact that cryptocurrency fraud and theft are prevalent in the industry. Numerous reports from various watchdog organisations have demonstrated that the largely unregulated landscape of digital finance is rife with criminal activity, which is to be expected in unregulated industries. Add to that the pervasive cybersecurity flaws in crypto infrastructure, the hordes of money-hungry cybercriminals scouring the internet for an unsecured hot wallet or exchange zero-day vulnerability, and you have the perfect recipe for getting your shit robbed. 

Additionally, it is abundantly clear that ripoffs and theft appear to be worsening, not improving. According to a study published in August by Crypto Head, this year was one of the worst on record for cryptocurrency hacks and robberies — with 32 incidents reported and associated losses totalling approximately $US2.99 billion ($4 billion-ish). That appears to be an increase over last year's figures, which were a 40% increase over the reported incidents for 2019. And, since the publication of Crypto Head's report, a smattering of exchange hacks has served to confirm the report's central thesis. 

In that vein, here are six of the biggest cryptocurrency scams of 2021. 

BadgerDAO 

As expected, December has been a busy month for cryptocurrency thieves. Indeed, a few weeks ago, BadgerDAO, a decentralised finance platform, was ripped off. According to the platform's blog post, on Dec. 2, an unknown party gained access to a number of different user accounts. What will be the cost? Stolen funds totalling approximately $US120 million (approximately $166 million). Following that, Badger explained that it appears as though the hacker injected a malicious script into its website, allowing the criminal to intercept active users' transactions and redirect them to the hacker's wallet. 

BitMart 

Only days after BadgerDAO was robbed, $US150 million (approximately $208 million) vanished in a cloud of digital smoke from the coffers of popular cryptocurrency exchange BitMart. On the day in question, the platform announced that it would be "temporarily suspending withdrawals until further notice" following the discovery of a "large-scale security breach" involving two "hot wallets" — digital cryptocurrency accounts that are connected to the internet. Peckshield, the cybersecurity firm that first brought the incident to light, described the hack as a "fairly straightforward: transfer-out, swap, and wash" operation. Regrettably, BitMart's previous slogan ("The most trusted cryptocurrency trading platform") is unlikely to resonate with current and potential customers. 

Poly Network 

The story of Poly Network is one of the most massive and bizarre cryptocurrency heists in history. On August 10, the exchange was allegedly hacked, resulting in the loss of approximately $US600 million (approximately $831 million) in investor funds — one of the largest windfall thefts in cryptocurrency history. Poly's leadership scrambled to create an online missive pleading with the hacker to return their money. "Dear Hacker," the letter began amusingly — before pleading with the anonymous token thief for a secure "return of the hacked assets." 

On the internet, the letter was largely met with mockery and bemused sympathy, and nobody believed the stolen money would ever be recovered. Poly's tactic, on the other hand, was successful! The hacker, whoever they are, began returning stolen funds — later claiming in blockchain-encrypted memos that they hacked the exchange "for fun" and to expose a critical security flaw in Poly's system. By the end of August, the thief was said to have returned the entire haul. 

Liquid Exchange 

In August, the Japanese cryptocurrency exchange Liquid reported a loss of $US97 million (approximately $134 million) due to a cyberattack on its systems that targeted its multiparty computation (MPC) system of custody — a supposedly secure cryptographic digital asset mechanism. Blockchain analysts observed as the funds were then funnelled through a series of wallets and mixers, obscuring their trail and ultimately allowing the anonymous bandit (or bandits) to flee with the loot. At least for now. 

Vulcan Forged 

Vulcan Forged is yet another unlucky casualty. The company operates a variety of cryptocurrency-related services and products, including a DeFi platform, an NFT market, and several play-to-earn token-based video games. Anyway, Vulcan was reportedly robbed of $US140 million (just shy of $200 million) earlier this month, when a hacker obtained the private keys to 96 of the platform's wallets and emptied them of all funds. The hacker stole an average of $US1.46 million (that's $2 million!) per wallet, according to estimates. Unlike many other cryptocurrency platforms, Vulcan actually refunded investors for money they had lost — a very charitable move that likely helped the company regain its reputation. 

Thodex 

Then there's the unfortunate story of Thodex, a Turkish cryptocurrency exchange whose young, weasel-like CEO allegedly stole approximately $US2.7 billion (approximately $4 billion) in investor funds this spring. After attracting significant investment since its launch in 2017, Thodex abruptly shut down in April, prompting Faruk Fatih Ozer, the platform's 27-year-old founder, to fly to Albania. One of the last known images of the dude shows him hustling through Istanbul's airport before jetting off to who knows where. The collapse of the exchange sparked widespread unrest in Turkey, with authorities arresting and detaining 83 people, including members of Ozer's family. Except for Ozer! Is this guy still around? If you do, approximately 400,000 people are interested in receiving a copy of his current address.

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Admits He Doesn't Understand Ethereum And Makes A Mars Prediction For Dogecoin Amid Crypto Price Crash.

Elon Musk, the Tesla (TSLA) billionaire who has both boosted and crashed the bitcoin price this year, has established himself as one of the most influential figures in cryptocurrency.

The bitcoin price has plummeted significantly this week, wiping out over $100 billion from the combined cryptocurrency market. The price of ethereum has also fallen, with several of ethereum's largest rivals leading the market lower and the meme-based dogecoin losing nearly 10%.

Now, Musk has weighed in on the Satoshi Nakamoto mystery, arguing that the true identity of the bitcoin inventor is less important than the evolution of ideas that led to it—and naming crypto pioneer Nick Szabo as the driving force behind that evolution.

"You can look at the evolution of ideas prior to the launch of bitcoin and see who wrote about those ideas," Musk explained to podcaster and artificial intelligence researcher Lex Fridman, who had inquired whether the fact that Satoshi Nakamoto's identity is unknown is a feature or a bug—"It's an interesting quirk of human history that there is a particular technology with an entirely anonymous inventor."

"Obviously, I don't know who invented bitcoin... but it appears as though Nick Szabo is more responsible than anyone else for the evolution of those ideas," Musk said, adding that "he claims not to be Nakamoto... but he appears to be more responsible than anyone else for the ideas behind it."

Szabo is best known as the inventor of one of bitcoin's forerunners, Bit Gold, and digital smart contracts, which evolved into a critical component of the ethereum blockchain. Szabo previously denied being Satoshi Nakamoto, telling financial author Dominic Frisby in 2014, "I'm afraid you got it wrong when you doxed me as Satoshi, but I'm used to it."

"Perhaps singular figures aren't even as significant as those involved in the evolution of ideas that resulted in things," Musk suggested to Fridman, adding: "It's unfortunate to think about history, but perhaps the majority of names will be forgotten." What is a name in the first place? It is a name, a name associated with an idea. What does this actually mean?"

Satoshi Nakamoto's disappearance shortly after bitcoin's launch sparked a decade of feverish speculation about who created it, igniting a larger cryptocurrency gold rush that resulted in the creation of thousands of different coins.

Meanwhile, the mystery surrounding Satoshi Nakamoto has aided bitcoin's development as an autonomous, decentralised technology. Rival cryptocurrency creators, such as Ethereum cofounder Vitalik Buterin, have struggled to overcome their disproportionate influence over their projects, raising concerns about centralisation.

Musk also admitted to Fridman that he is unfamiliar with ethereum-based smart contracts—blockchain-based, self-executing contracts that execute when predefined conditions are met.

"I've never quite understood how this whole smart contract thing works," Musk joked, adding, "I'm too stupid to understand smart contracts." Musk continued, "My general approach to any kind of deal or whatever is to ensure there is clarity of understanding."

Musk continued, however, by predicting that the meme-based bitcoin competitor dogecoin, or possibly another cryptocurrency, will eventually become the official currency of Mars—a possibility Musk previously hinted at with a proposal to use his rocket company SpaceX to "put a literal dogecoin on the literal moon."

"Mars, I believe, will require a unique currency... I'm not sure if Mars would have a cryptocurrency, but it seems likely," Musk said, adding that "the future of Mars should be decided by the Martians.""

Musk, who earlier this year urged dogecoin developers to upgrade the meme-based cryptocurrency in order to compete with bitcoin and ethereum, has weighed in on a crypto-wide debate over web3—the idea that a decentralised crypto and blockchain-based version of the internet could eventually replace Silicon Valley's web 2.0—explaining why he is "pro doge.

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