Crypto In Play News 2022 August First Week
The latest cryptocurrency news curated on a weekly basis.
Covered topics include regulation, user adoption, macroeconomy, and technology announcements.
Table of Contents
SEC going after crypto insider trading and fraud putting the crypto industry on notice for possible crackdown
- The US Securities and Exchange Commission (SEC) is using pre-existing rules in traditional finance to police crypto market
- The SEC uses the ‘Howie test’ criteria to designate cryptocurrencies as securities in order to regulate them:
- There is an investment of money
- There are Investors putting their money into a common enterprise that delivers success based on third party expertise
- There is an expectation of profit from the investment
- Investor success is based on a standalone 3rd party’s performance
- Bitcoin and Ethereum have been classified as commodities and NOT securities by the SEC because no ‘executives’ are driving a company to make investments in BTC or ETH more profitable
- 9 cryptocurrencies have been flagged by the SEC in its case against Coinbase employees who had used 25 cryptocurrencies for insider trading. They are: AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, KROM
- SEC may target ‘similar’ cryptocurrencies in the future but the actual criteria remains to be seen
Multiple Massive hacks in crypto exposing user private keys and draining crypto wallets
- Cross-chain protocol Nomad (bridging different crypto blockchains, such as SOL/ETH) suffered hack and lost $200 million. $22 million has been recovered so far
- Over $580 million was stolen from 8,000 crypto wallets on the Solana (SOL) blockchain. Cause attributed to negligence by Solana wallet company Slope sending user non-encrypted password data to a centralized server
- Near Protocol reveals that it discovered a similar security vulnerability to the Solana hack in June and had resolve the issue on the same day but also points out that crypto wallet passwords could have been leaked
U.S unemployment rate in July 3.5%
- July rate is lowest since February 2020
- Following release of data, probability of Fed raising interest rates by 0.75% increased to 62%
- Interest rate hikes tend to negatively impact company earnings (higher interest expenses) and thus lower stock prices / cryptocurrencies tend to be correlated to growth stocks
Coinbase selected by Blackrock to provide clients with access to crypto trading and custody
- cryptocurrency exchange Coinbase announces partnership with BlackRock, the world’s largest financial asset manager, to provide its clients with direct access to crypto, starting with Bitcoin
- Institutional investors can access Coinbase Prime directly via a user interface or as an integrated platform via APIs to offer crypto-related products
Instagram to add support for Flow blockchain-based NFTs
- Instagram has added support for Flow-based NFTs as it expands its NFT initiative into more than 100 total countries.
- Instagram’s NFT integration initiative allows collectors to showcase their verified Flow NFTs on their account. It is still in closed beta testing.
- Flow was created by Dapper Labs is well-known for its NFT projects like NBA Top Shots that enable users to trade NFTs of videos of NBA game footage
- NFT markets have yielded more than $20 billion in sales in 2022
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