NFT Lending: How It Works and What It Means for DeFi

NFT lending has become a crucial aspect of the decentralized finance (DeFi) space, providing a way for NFT owners to unlock the liquidity of their digital assets without selling them. Here’s a detailed look at how NFT lending works and its implications:

Definition of NFT Lending

NFT lending allows owners of Non-Fungible Tokens (NFTs) to use their digital assets as collateral to secure loans. This financial arrangement is beneficial for NFT holders who need liquidity but do not wish to permanently part with their assets.

How NFT Lending Works

1. Collateralization: An NFT owner locks their asset into a smart contract as collateral.
2. Loan Offers: Potential lenders provide loan offers, specifying the loan amount, interest rate, and loan duration.
3. Acceptance and Disbursement: The borrower accepts an offer, and the loan amount is disbursed in a cryptocurrency, typically a stablecoin.
4. Repayment and Return: Upon successful repayment of the loan plus interest by the borrower, the NFT is returned. If the borrower fails to repay, the lender claims the NFT as compensation.

Types of NFT Lending

• Peer-to-Peer Lending: Direct lending between individuals, facilitated by NFT lending platforms that ensure security and contract enforcement.
• Peer-to-Protocol Lending: Borrowers interact directly with a DeFi protocol that manages loans through automated smart contracts.
• Fractionalized NFT Lending: Involves lending against a part of an NFT, which has been fractionalized into smaller, more liquid parts.

Platforms for NFT Lending

NFT lending typically occurs on specialized DeFi platforms that support these types of transactions. These platforms provide the necessary infrastructure, such as smart contracts for locking NFTs, assessing loan terms, and facilitating interactions between borrowers and lenders.

Benefits of NFT Lending

• Liquidity: Provides immediate liquidity to NFT holders without needing to sell the asset.
• Flexibility: Offers a flexible way for investors to manage their portfolio by leveraging the value of their NFTs.
• Market Growth: Contributes to the growth and stability of the NFT market by adding financial utility to NFTs beyond just collectible value.

Risks and Considerations

• Volatility: The value of NFTs can be highly volatile; if the market drops, the collateral might not cover the loan value.
• Market Depth: The relatively small and illiquid market for certain NFTs may pose risks for both borrowers and lenders.
• Regulatory Uncertainty: As with much of cryptocurrency, the legal and regulatory framework for NFT lending is still evolving, which could pose future challenges.

The Future of NFT Lending

As the NFT market continues to mature, the mechanisms and platforms supporting NFT lending are likely to become more sophisticated. This evolution will potentially include better valuation models for NFTs, more robust legal frameworks to support lending and borrowing, and enhanced platforms offering more efficient and secure lending services.

In conclusion, NFT lending is a dynamic area of DeFi that provides tangible benefits to NFT owners and contributes to the liquidity and functionality of the blockchain ecosystem. As with any investment, participants should be aware of the inherent risks and perform due diligence before engaging in NFT lending.

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South Korea Regulators Declares Crypto Crime Unit as Official Department

The rise of crypto crime has forced law enforcers to explore ways to shield investors from exploitative activities. In a recent report, the South Korean regulators revealed plans to launch a crypto investigative unit to address the financial crimes in the region.

According to the local news site Segye Ilbo, the existing crypto investigative unit will become a permanent regulatory agency.

South Korea Officiate Crypto Crime Unit

Before the official launching of the new law enforcement unit, the South Korean Ministry of Justice and Public Administration and the Ministry of Interior plan to discuss the matter at the beginning of next month.

Initially, the crypto crime investigative unit operated as a temporary agency working towards combating crime. In the upcoming meeting, the South Korean policymakers will upgrade the crypto crime investigative unit from temporary to permanent status.

This implies that the official launch of the new department will require the South Korean government to finance the project to meet the expected standard.

The report indicates that the crypto crime investigative unit was launched in July last year. The authority appointed 30 professionals from the Southern District Prosecutors Office to support running the new department. 

Regulators Team Up to Address Crypto Crime

With the new changes, the regulators are expected to expand the crypto crime investigative unit workforce. The new department has been working closely with the South Korean Prosecutors Office, the Financial Intelligence Unit (FIU), the National Tax Service and the Financial Supervisory Service. 

The crime investigative unit was launched when South Korea faced increased crypto-related crimes.  In 2023, the FIU team noted that over 16,076 suspicious transactions related to digital assets were reported to South Korean authorities. 

The number of suspicious transactions increased by 48% in 2023.  The surge in crypto-related crimes compelled the South Korean authorities to implement various measures to address the concerns. 

In April, South Korean regulators unveiled plans to launch new guidelines for listing digital assets. The regulators stated that the new provision would restrict the listing of specific tokens on centralized exchanges. 

The new rules are expected to take effect in May 2024. This implies that digital assets with a history of hacking will not be listed on South Korean platforms unless the cause of the hack is identified. 

South Korean Unveil New Crypto Rules

Also, the new rules restrict foreign digital assets from being listed on local exchanges unless the issuer provides a technical manual published in the South Korean market. The latest listing requirements align with the amended Virtual Assets User Protection Act, which will take effect in July this year. 

The revised rules aim to protect investors from any exploitative activity.  The South Korean regulators claimed that the revised Virtual Asset User Protection Act seeks to protect the interest of crypto investors in the region.

Under the new rules, illegal trading, market manipulation, and failure to disclose important information on digital assets will be considered unlawful. The new rules will impose hefty fines and sentencing of non-compliant crypto firms. 

The new rules grant the South Korean FSC the legal power to supervise the operations of crypto firms. The FCS will assess whether local virtual asset service providers’ operation aligns with the new rules.

Reportedly the Virtual Asset User Protection Act was drafted in June last year to prevent the recurrence of another FTX that adversely affected the operation of major crypto firms. Days ahead of the South Korean general election, various politicians have revealed plans oppose the implementation of Virtual Asset User Protection Act if elected. 

In an interview with Bloomberg, the Democratic Party of South Korea revealed plans to ease the prohibitive measures on issuing crypto exchange funds (ETF).  The opposition party plans to create a friendly environment to allow local investors to engage in the buying and selling of ETFs. 

Besides imposing restrictive measures, the South Korean authority plans to collaborate with the global law enforcers to address financial crimes conducted by the North Korean illicit groups.

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DOJ Files Motion Challenging Dismal of Charges against Tornado Cash Developer Roman Storm

In its official publication, the US Department of Justice (DOJ) filed a motion challenging the plea of Tornado cash developer Roman Storm. Earlier this week, Storm urged the court to dismiss charges of his involvement in the  Tornado Cash. 

Storm was indicted alongside the co-founder of Tornado Cash, Roman Semenov, for conspiracy of money laundering and violation of the International Economic Emergency Powers Act. 

DOJ Files Motion on Tornado Cash Developer

The prosecutors proposed that the two should serve a 20-year imprisonment for engaging in money laundering activities. Also, Storm and Semenov will receive an additional five years imprisonment for operating an unregistered money transmitter. 

In retaliation for the charges, Storm urged the court to dismiss the three charges. He claimed that the allegations were fatally flawed and the court should immediately dismiss the charges. 

Working as the developer of the controversial crypto mixer, Storm claimed that there was nothing he could do to prevent the use of Tornado cash in bypassing the Western sanction. 

The defence team claimed the allegation against Storm lacked substantial evidence. On the other hand, the attorney told the court that Semenov only provided the code design for Tornado Cash but was not responsible for its use.

Tornado Cash Developer Charged for Conspiracy of Money Laundering

Storm’s plea for dismissal of charges challenged vital industry players to support him. Days after the court hearing, the Storm supporters filed an amicus brief urging the court to dismiss charges. 

Reportedly, the Storm supporters raised funds to support the defence team in presenting their client’s interest. Despite efforts to prove Storm’s innocence, the DOJ team examined the motion filed by the defendant. 

In the 111-page motion, the prosecutors argued that Tornado Cash was a profit-chasing entity benefiting Storm and other officials. The prosecutors argued that Storm should answer the three charges against him since Tornado Cash has been a crypto mixer since 2019.

A review of the Tornado Cash operation demonstrated that the platform offers a user interface, a series of relayer networks, and multiple smart contracts. The prosecutors noted that Tornado Cash’s popularity attracted a large following of individuals seeking to conceal their source of income. 

A statement from DOJ prosecutor Damian Williams demonstrated that Storm was responsible for the three charges since he was the mastermind of developing a system with anonymity features. With the regulation changes, the prosecutors blamed Storm and Semenov for failing to assess the compliance level of the Tornado Cash with the US sanctions.

The failure to monitor the Tornado operation encouraged notorious criminals, such as the North Korean Lazarus group, to use the crypto mixer to transfer illicit funds. 

US Regulators Clamping Down Unregistered Crypto Mixers

The prosecutors opposed Storm’s motion, stating that Tornado did not operate as a crypto mixer or meet the regulatory requirements for operating as a financial institution.

In September, Storm pleaded not guilty to the three charges and was released with a $2 million bond. His release subjected Storm to numerous restrictions, such as a travel ban to allow the prosecutors to proceed with their investigations. 

The Tornado Cash case obliged the US law enforcement units to step up and shield the customers from exploitative activities. Earlier last week, the US law enforcers arrested the co-founders of Samourai Wallet for supporting money laundering activities.

The arrest of the Samourai Wallet chief executive, Keonne Rodrique, and the chief technology officer, William Hill, compelled US regulators to send early warnings to non-compliant crypto firms. 

The two will face 20 years for conspiracy of money laundering and an additional five years for operating as unlicensed money transmitters. Day after the arrest of Hill and Rodrique, the federal Bureau of Investigation (FBI) warned the Americans from using unauthorized crypto money transmitters. 

The crypto community condemned the regulatory warning. A statement from the chief executive of CryptoQuant, Ki Young Ju, argued that crypto mixers were not hideouts from criminals.

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Apple Inc. Holding Talks with OpenAI to Integrate AI Features on IOS 18

Apple Inc. has initiated talks with the developer of ChatGPT OpenAI to integrate the artificial intelligence (AI) features on IOS 18. The primary objective of integrating the AI feature is to boost the iPhone’s speed. 

According to Bloomberg, the Apple team is having intense discussion with the OpenAI team to explore ways to integrate AI feature into the IOS technology. 

Apple Inc. Plans to Integrate AI Features on iPhone

The announcement came at a time when the giant tech company plans to create its large language model (LLM) to boost the performance and efficiency of IOS 18. During the ongoing talks, Apple and OpenAI discussed integrating chatbot or search components into its latest iPhone.

The talks came days after Apple and Google were planning to license Gemini. The two tech companies contemplates on leveraging Google’s AI-oriented chatbot Gemini for its iOS 18. The Bloomberg team confirmed that the talks between Apple and Google were still ongoing.

Even though Apple has not settled on which AI tool that will perfectly blend with the proposed iOS 18, the tech company is expected to provide its final decision.

Market critics argued that Apple would license OpenAI and Google AI technologies or settle for none. The Apple team has shown no interest in integrating the AI feature for months. 

Growing Demand for AI Tools

With the latest news, Apple has joined other tech heavyweights in integrating AI technologies into their businesses. In an earlier post, the chief executive of Apple.Inc. Tim Cook announced plans to invest heavily in AI technology. 

The executive confirmed that Apple could partner with other companies to integrate advanced technologies such as AI. Cook added that the newly launched M3 MacBook Air will become the leading consumer laptop for AI. 

The CEO confessed that the tech company plans to launch AI-inspired laptops and desktops this year. Apple’s LLMs will support the proposed launching of these AI-fueled laptops. 

Even though the CEO did not disclose much details on the AI features on iPhone and other devices, it seems Apple will invest heavily in developing artificial intelligence technologies. A recent study to demonstrate AI capabilities demonstrated that generative AI tools were unreliable while AI gadgets such as Humane AI pins created disastrous reviews. 

Despite the shortcomings of AI technologies, the Apple team seems interested in this technology. In May last year, the director of machine learning at Apple Inc. Ian Goodfellow revealed plans to leave his role after the tech company to return to the in-person working system.

AI Development Subjects Tech Companies to Fierce Competition

Earlier, the Apple team implemented in-office working policy that required the employees to work from their respective working stations. The resignation of Goodfellow created professional gaps at Apple, forcing the company to reassess its strategy.

Since 2022, the Apple team has extensively researched and developed AI-related projects. A review of the company website depicts that Apple has launched around 8 LLMs equipped with code and training logs. 

Despite Apple’s commitment to developing AI and machine learning technologies, the tech company struggles to outpace the LLMs developed by its top rivals, OpenAI’s ChatGPT and Google’s Gemini.

As the tech industrycontinues to become more competitive, Apple’s top rival, Microsoft, gained a strategic advantage after partnering with OpenAI. According to a recent report, Microsoft’s market capitalization reached $3.019 trillion, followed by Apple with a total market value of $2.614 trillion.

However, to gain a competitive edge in an already crowded market, the Apple team has intensified its effort to enter into a generative AI partnership. The ongoing search for suitable partners for developing generative AI prepares Apple for its Worldwide Developers Conference (WWDC) scheduled for June 2024. 

The event will be held at Apple Park with the aim of building strong social networks between the company developers, students, and other professionals in the software development field. At the event, the Apple team presents its latest development and showcases cutting-edge products.

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Cboe’s Restructuring Plans to Merge Digital Assets Arm with Derivatives and Clearing Division

The Chicago board options exchange parent company Cboe Global Markets has unveiled its restructuring plan. The proposed reorganization plan targets eliminating the existing digital spot market from the Cboe digital arm. 

In the upcoming restructuring plan, Cboe will migrate the digital spot market to Global derivatives and clearing businesses. The American securities company has scheduled to end the digital spot market in Q3 of 2024. 

Review of Cboe Reorganization Plan

A review of the restructuring plans demonstrates that the Cboe will transition the cash-settled Bitcoin futures contracts to the Cboe Futures Exchange from the ordinary Cboe digital exchange in Q1 of 2025.

Before then, the cash-settled Bitcoin futures contracts will undergo a thorough regulatory assessment and corporate approvals. In the upcoming reorganization plan, the Cboe digital clearing division and Cboe Clear Digital will merge with the European Cboe Clear, which Vikesh Patel currently leads.

According to the announcement, the proposed restructuring plan will steer the Cboe toward prosperity and attaining long-term goals. Citing the lack of regulatory clarity for digital assets, the Cboe was obliged to conduct a strategic review to support the attainment of the end plan. 

A review of the Cboe website illustrated that the securities company offers a complete suite of digital assets, including Bitcoin, Ether, Litecoin, Bitcoin Cash, USD, and Litecoin products. The proposed restructuring plans came when the US Securities and Exchange Commission (SEC) stretched its enforcement action on digital assets.

Recently, the SEC has classified some of the digital assets as securities. The SEC listing sparked heated debates among the crypto community. In response to the changes in crypto regulations, key industry players have championed the need for regulatory clarity on digital assets.

Cboe Plans to Eliminate Digital Spot Market

With the ongoing discourse for clear crypto regulation, the Cboe has taken a strategic step to operate compliantly. In its announcement, Cboe explained that the restucturing plan aims to reduce the cost of operating the digital spot division. 

The exchange claimed that the winding down of the digital spot arm would benefit Cboe. According to the Cboe, after the implementation of the restructuring plan, the exchange will have saved around $2 million to $4 million in 2024. 

Thereafter, the exchange will save around $15 million annually. This implies that the restructuring plans aim to minimize Cboe’s operational costs while optimizing its savings.

A statement from the chief executive officer at Cboe Global Market, Fred Tomczyk, revealed that focusing on digital assets enables the exchange to assess its strategy and leverage its strengths in derivative markets. The CEO stated that restructuring was essential to support Cboe in attaining technological excellence and product innovation.

He anticipate that the restructuring plan will support the Cboe in its optimization endeavors aligning its business with the long term objective.

Significance of Cboe Restructuring Plan

In an interview with the Cboe Global Market, president David Howson projects that changes in the crypto sector will push for high demand for exchange-traded derivatives. The executive expects that the surge in crypto EFTs will curb risks related to digital assets and improve capital and operational efficiencies.

From 2022, Cboe has demonstrated its growing interest in digital assets after acquiring a renowned spot market dubbed Erisx.The acquisition of ErisX aimed at enabling Cboe to expand its product offering to derivative markets, spot markets, and clearing platforms.

The ErisX was later renamed as the Cboe digital arm. Shortly after the ErisX acquisition, the crypto bears resurfaced, dragging most digital assets to the red zone. Following a bumpy crypto winter, the Cboe expenses rose to around 312% due to the ErisX acquisition.

The Cboe complained that the underperformance of ErisX exposed the exchange to a $460 million goodwill impairment.In the meantime, Cboe confirmed that it would provide further details concerning the restructuring plans in its upcoming Q1 2024 earning call scheduled for May 3, 2024.

Editorial credit: Piotr Swat / Shutterstock.com

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Ace Exchange Founders Might Face 20 Years Imprisonment for Defrauding Customers

On Friday, the Taipei District prosecutor accused 32 individuals of involvement in Ace Exchange. The suspected were accused of committing severe crimes of defrauding the investors and engaging in money laundering activities.

In the report, the prosecutors proposed that the four primary suspects related to the Ace Exchange saga should receive 20 years imprisonment. In this case, the primary suspect included the founder of Ace Exchange David Pan, former chairman Wang Chen-huan and their business partner Lin Keng-hong.

Taiwan Prosecutors Charge Ace Exchange Founders

The indictment of the 30 suspects demonstrated Taiwan’s commitment to addressing financial crime. According to the report, the prosecutors claimed the role of the suspects at Ace Exchange impacted huge financial losses. 

Reflecting on the Ace Exchange case, the prosecutor noted that around 1200 individuals were enticed to invest in NFTC coins and Bitnature token change, among other digital assets. 

The suspect invested in marketing their products through white papers and other promotional approaches to attract a large audience. As the suspect intensified their product promotion in Asia, Lin and Pan agreed to create Ace Exchange. 

The two business partners agreed to invest heavily to position Ace Exchange among the leading blockchain networks supporting the buying and selling crypto assets in Asia. Months after investing in Ace Exchange, the investors noted a sudden decline in the value of their digital assets.

Contrary to the promises made while purchasing the digital assets, the investors observed the value of their crypto assets plummets below the Taiwan dollar. The sudden decline in the price of the Ace Exchange digital assets created fear among investors.

Ace Exchange Founders Accused of Price Manipulation

In retaliation to the predicament, the affected investors filed charges against the Ace Exchange and the officials for luring them into fraudulent schemes. In a subsequent report, the prosecutors noted that the suspect manipulated the prices to attract a large following.

A review of Ace Exchange demonstrated that suspects are accused of selling digital tokens and other blockchain products worth $2.2 billion. The suspect pocketed the profits generated from Ace Exchange to acquire property, including real estate in Yilan County. 

The prosecutors noted that around 340 NT$, equivalent to $10.6 million was lost in the Ace Exchange scandal. After a thorough investigation, the prosecutors revised the figures and noted that the Ace Exchange saga subjected customers to loss of 800 million New Taiwan dollars valued at $24.56 million. 

Based on the severity of the case, the prosecutors proposed that Wang should serve 12 years imprisonment. The official argued that Wang’s role as the director of Ace Exchange was punishable by law. 

Taiwan Law Enforcers Target Ace Exchange

Earlier in January, the Taipei police raided the Ace Exchange, arresting 14 suspects. The arrest of the Ace Exchange officials obliged the Taiwanese law enforcers to probe the operation of the trading platform. 

In their findings, the law enforcers noted that the founder of Ace Exchange, Mr. Pan, was involved in running a fraudulent crypto wallet, Alfred Wallet. Based on the losses caused by the suspect, the Taiwan court ordered the regulators to seize assets worth 3.5 million NT$ owned by the suspects.

In response to the indictment of the suspects, the Ace Exchange provided a comprehensive report explaining that Pan had nothing to do with the platform. The Ace team confessed that since 2022, the David Pan was not involved in the running of the platform.

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Phoenix and Wasabi Wallet Shutting Down Operation in US Cites Heightened Regulatory Pressure

On Friday, the Phoenix wallet revealed plans to exit the US market, citing heightened regulatory pressure. The Phoenix team confirmed that its non-custodial Bitcoin wallet ACINQ would be removed from the Google and Apple marketplace.

The decision to exit from the vibrant US market emanated from enforcement action taken against nonlicensed crypto money transmitters. 

US Crack Down Self Custodial Wallets

A few days ago, the federal agency took legal action against Samourai and Metamask for operating as unauthorized money transmitters. Also, the law enforcers claimed that the two wallets under government investigation supported money laundering activities. 

A review of the court documents demonstrated that the chief executive of Samourai Wallet, Keonne Rodrique, and the chief operating officer, William Hill, will receive 20 years imprisonment for money laundering charges. 

Also, the two will receive an additional five years imprisonment for operating as unauthorized money transmitters. The heightened regulatory action on non-compliant firms sparked heated debates among the crypto community.

Phoenix and Wasabi Wallet Exit US Market

On X, the investors demanded to know whether the ACINQ operations complied with the requirements for the money service business (MSB). 

In response to the questions, the ACINQ team argued that the recent regulatory action on money transmitters has created confusion on whether the self-custodial wallets or Bitcoin lightning service providers operate as MSB. 

The Phoenix team complained that it was still unclear whether the ACINQ wallet should be regulated under the MSB regulation. With the Federal Bureau of Investigation (FBI) and Department of Justice (DOJ) warnings against unlicensed money transmitters, the Phoenix team made the hard decision to exit the US. 

On X, the Phoenix team urged ACINQ users to withdraw their funds on the wallet before May 3. The shutdown of the ACINQ wallet is expected to start next week. 

The Phoenix team has advised their customers to follow the steps provided to withdraw their funds from the platform. The non-custodial wallet advised the customers not to use the force closing option on their wallet due to high on-chain costs. 

Shortly after Phoenix announced plans to wind down ACIQN operation in the United States, the Wasabi team revealed plans to suspend its zkSNACK from operating in the region. 

Global Regulators Teams Up to Address Money Laundering

In a blog post dated April 27, the Wasabi team confirmed that US regulators had imposed restrictive measures undermining the operation of its zkSNACKs wallet. They complained that the US law enforcer were advising the customers to avoid using zkSNACK. 

Following the early warning against the use of unauthorized crypto money transmitters, the Wasabi team commenced the shutting down process. The heightened regulatory scrutiny of crypto firms has elicited embroiled debates among the crypto community. 

On X, the digital partners at Piper Alderman Michael Balcina complained that instead of sending early warnings on the use of certain crypto products, it was important for US lawmakers to consider providing a comprehensive regulatory framework for digital assets. 

The official condemned the warning issued by the regulatory agencies against the use of unregistered money transmitters, which lack finer details on how digital assets should be supervised. Balcina believes that providing regulatory clarity on digital assets will be beneficial to the government and customers. 

The warning came at a time when global regulators exploring ways to address money laundering activities and other financial crimes. In their pursuit to restore financial integrity, the regulators claim that criminals are using self-custodial wallets to transfer illicit funds. 

On Thursday, April 25, the US Securities and Exchange Commission (SEC) issued a Well Notice to Consensys, threatening to take enforcement action against the software development company. 

The SEC claimed that Consensy’s offering, including Metamask swaps and Metamask staking, contravened the law. Also, the market regulators accused Consensys of operating as an unregistered broker and dealer. 

Elsewhere, the European regulators advised the investors to conduct due diligence before transacting with self-custodial wallets. The regulators urged the local crypto exchange to conduct identity verification checks for businesses and individuals transferring above 1000 Euros.

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The Smart Bettor’s Guide to Crypto Sports Betting

Sports betting has become a popular pastime globally, transcending borders and uniting fans through the thrill of the game and the exhilaration of wagering. The advent of cryptocurrency in this arena has introduced a new layer of excitement and complexity.

This guide aims to provide you with comprehensive strategies to not only enjoy but also potentially profit from crypto sports betting.

Fundamentals of Bankroll Management

Effective bankroll management is the cornerstone of successful sports betting. Here are essential tips to manage your funds wisely:

Setting a Budget

Treat sports betting as a form of entertainment. Allocate a monthly or weekly budget similar to how you would for dining out or cinema visits. This budget is the total amount you are willing to risk. It’s crucial never to exceed this limit to maintain financial health and enjoyment of the game.

Consistent Bet Sizing

Instead of erratic wager amounts, establish a consistent unit size for bets—for instance, 1% of your total bankroll per bet. This method helps mitigate the risk of rapid losses and discourages the detrimental practice of chasing losses.

Avoiding Additional Deposits

Stick to your predetermined budget and avoid topping up your bankroll within the set period. This discipline helps maintain a sustainable and enjoyable betting practice.

Deepening Sports Knowledge

Understanding the sport you are betting on enriches your betting strategy significantly:

Research and Analysis

Invest time to learn about team dynamics, player conditions, recent forms, and historical performance against opponents. This knowledge allows you to make more informed decisions rather than placing arbitrary bets.

Tactical Considerations

Consider how different teams or players perform under various conditions, such as different venues or against certain opponents. This understanding can be pivotal in making profitable betting decisions.

Shopping for Best Odds

Choosing a Sportsbook

While having a preferred sportsbook is common, always compare the odds offered on similar events across different platforms. Sportsbooks can aid in this comparison, though remember that not all platforms include crypto sportsbooks.

Promotional and Event-Based Bets

Look out for sportsbooks offering enhanced odds or promotions, especially those related to specific events or sponsorships, as these can offer additional value.

Understanding Betting Markets

Familiarize yourself with the common types of betting markets:

Moneyline Bets

These are straightforward bets on which team or player will win a match. They are ideal for clear favorites.

Point Spread

This bet type considers the strength disparity between opponents, offering a more balanced risk.

Over/Under (Totals)

This option involves betting on whether the total score will be over or under a predetermined figure, avoiding the need to pick a specific winner.

Once comfortable, explore more complex bets like Prop bets, which focus on specific in-game occurrences.

Identifying Value Bets

Value betting involves identifying bets where the odds appear more favorable than the actual likelihood of the event. This requires a deep understanding of the sport and the ability to interpret odds effectively.

Keeping Records

Maintain detailed records of all bets placed, outcomes, and financial impacts. This historical data is invaluable for refining strategies, understanding betting patterns, and improving future decision-making.

Managing Emotions

Emotional Discipline

Sports betting can be emotionally charged. It’s crucial to remain disciplined, making decisions based on logic rather than emotion, particularly after losses.

Sticking to the Plan

Adhere to your betting strategy and budget regardless of recent outcomes. Avoid the temptation to chase losses with impulsive bets, as this can lead to greater financial and emotional distress.

Conclusion

Crypto sports betting offers a unique blend of excitement and potential financial reward, but it requires discipline, research, and a structured approach.

By adhering to these strategies, you can enjoy the thrills of sports betting while minimizing risks and enhancing your potential for success. Whether as a casual pastime or a more serious endeavor, mastering these strategies can greatly improve your betting experience in the crypto sports betting landscape.

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Philippines SEC Issue Directives to Remove Binance App on Apple and Google Marketplace

• Philippines regulators claim that Binance operated as an unregistered entity.
• Binance to suspend operation in the Philippines.
• The Philippines authorities directed Google and Apple to eliminate the Binance app from their app stores.

In an official communication, the Securities and Exchange Commission in the Philippines issued directive orders to giant tech firms Google and Apple. The SEC ordered Google and Apple to scrap the Binance application from their app stores. 

The directive aimed to safeguard Philippine investors from exploitative activities that might lead to financial losses. In an April 23 update, the SEC pledged to collaborate with renowned tech firms to remove the Binance mobile app from their platforms entirely.

Binance to Suspend Operation in the Philippines 

 The market regulators claimed to share a series of letters with tech firms about removing Binance from their local marketplace. The regulators claimed that the operation of Binance would harm Filipino investors. They argued that Binance’s operation in the region threatened the financial sector. 

A statement from the SEC chair Emilio B. Aquino stated that the operation of Binance in the Philippines was unlawful. Citing the securities law, Aquino argued that the buying and selling unregistered securities in the region was illegal. 

Also, the executive admitted that the operation of unauthorized brokers breached the securities regulations. The official described the removal of Binance from the local marketplace as a strategic step in addressing illegal activities in the Philippines. 

Aquino regretted that failure to suspend the operation of the Binance app would have a detrimental effect on the national economy. The new directives came days after the SEC and the National Telecommunication Commission (NTC) restricted access to the Binance website. 

Philippines Authority to Collaborate with Tech Firms to Halt Binance Operations

In March, the Philippine regulators claimed that the operation of Binance was unauthorized. The financial regulators in the region accused Binance of violating the Securities Regulation Code by offering investment products, including leveraged trading services and crypto saving accounts, without completing the necessary registration processes.

Based on the risk associated with Binance’s operation in the Philippines, the regulators advised the regulators to be careful while investing in offshore crypto exchanges such as Binance. The government authority added that the controversial crypto exchange must obtain a license to operate compliantly in the region.

In a subsequent report dated April 8, the SEC official stated that the authority had issued three months for Filipino investors to withdraw their funds from the platform. After the extension period for the withdrawal lapsed, the regulators claimed that Binance’s operation would be permanently suspended in the region. 

The Binance users in the region are advised to expedite the withdrawal process to avoid losing their funds. The regulators claimed that the attempt to suspend Binance’s operation aims to restrict unlicensed crypto exchanges from operating in the region. 

Binance Facing Legal Action in Asian Countries

Inspired by the desire to safeguard customers from unlawful activities, regulators vowed to ban the operation of non-compliant firms. The Philippine move mirrors the regulatory action taken against Binance in India, Thailand, and Canada.

In an April 23 publication, the Canadian authorities issued a new class action lawsuit against Binance for violating the securities regulations. The Canadian market regulators accused Binance of facilitating the buying and selling of crypto derivatives to institutional clients without completing the primary regulatory registration.

The lawsuit came when Binance accounts for 58% of total spot trading volumes for centralized exchanges. Binance has also cemented its market position in the derivatives markets, followed by Bybit and OKX. 

Having attained the sustainable customer base and desired market position, the crypto exchange vowed to leave Canada by next month to pursue other markets. Besides expanding to other regions, Binance has demonstrated its commitment to comply with the existing law.  

On April 18, the Binance team agreed to settle a $2 million penalty with the Indian authority. The controversial crypto exchange pledged to comply with Indian law and return to the region. 

The Binance return to India marked a significant milestone for the exchange to expand its regulatory portfolio. Earlier this week, the Binance team secured a crypto license to operate as a virtual assets services provider (VASP) in Dubai.

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Scammers Preying on Messaging App Telegram to Steal Toncoin

Following the launch of Telegram on the Open Network (TON) blockchain, bad players have been seen looming on the platform to steal Toncoin from the token holders. Cybersecurity company Kaspersky uncovered the news concerning the ongoing suspicious activities on Telegram.

The security team noted that the criminals employed advanced techniques to drain measurable Toncoin tokens from the global Telegram users. The Kaspersky team regretted that the criminals shifted their focus to Telegram in November last year after Ton attained the desired popularity.

Hackers Exploit Telegram to Drain Toncoin

Driven by the desire to attain financial gains, the bad players have been actively targeting to steal from the messaging application and TON network. Kaspersky lamented that criminals devised various strategies to devise the Telegram users. 

Firstly, criminals have been promoting referral schemes that promise Telegram users high returns. To attract a large audience to the suspicious referral system, criminals are seen sharing links to their contacts and friends on the messaging app. 

Several Telegram users have unknowingly fallen for the scammer’s trap, losing substantial TON tokens. Besides sharing the suspicious link, Kaspersky observed that the criminal had been hyping a Telegram bot for storing crypto assets and links to their Web3 wallets. 

Also, the scammers instructed the Telegram users to acquire more Toncoin through the official Telegram bot, peer-to-peer (P2P) platforms, and crypto exchanges, purporting that the purchase would boost their credibility scores and add an extra layer of security. 

Rise of Crypto Scam

The Kaspersky team noted that the criminals enticed the Telegram users to purchase boosters through a separate bot. After completing these processes, the scammers assured the Telegram users that they will start earning money from the platform. 

The security expert for Kaspersky regretted that after the victims purchased the booster, the criminal gained unauthorized access to the user account. This implies that the final steps for acquiring the booster allowed scammers to steal customers’ funds.

The probing team stated that the boosters, including bikes, trains, planes, and rockets, varied in cost. These boosters were priced between 5 to 500 Toncoins. The Kaspersky team noted that the Telegram users who purchased the booster were urged to register for the referral program and invited friends to earn rewards. 

The security experts regretted that the Telegram user registered for the referral program lost $2 to $2700 in the ponzi scheme. A review of the suspicious referral program demonstrated that the link shared with Telegram users and their friends consisted of numerous instructions. The referral links shared by the scammers were in English and Russian versions. 

Investors Advised to Avoid Quick Wealth

According to Kaspersky, the scammers urged the users to invite more than five referrals to start earning rewards. Initially, the criminals had assured the customers of considerable returns before completing the earning program. 

This earning will be distributed in two primary approaches, including a fixed payment of 25 TON for every invite. Consecutively, the scammer promised the Telegram users that they would earn a commission per the number of boosters purchased.

A statement from the lead content strategist at Kaspersky, Olga Svistunova, described the boosters as an effective tool for earning from their crypto investments. The executive observed the similarity of the booster with those used in online games that allow the player to earn additional rewards.

The official noted that in the Telegram case, the pyramid scheme allows the participants to become partners instead of freeloaders. In this case, all the Telegram users registered for the referral program lost all their investments.

Upon contacting the Kaspersky team to enquire about the number of customers affected by the pyramid scheme, the security team vows to provide the final investigation report. The Kaspersky warned investors to be hyper-vigilant when making investments that promise high yields. 

Also, the investors are urged to conduct their due diligence and avoid quick wealth. The probing team advised the Telegram team to implement adequate security measures to shield users from scams and fraudulent schemes.

Editorial credit: nikkimeel / Shutterstock.com

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Thailand Regulators Set to Restrict Operation of Unauthorized Crypto Exchanges

The rise in crypto-related crimes has forced the Thai government to take decisive action to restrict the operation of unregistered exchanges. In an April 19 announcement, Thai regulators confirmed that the restrictive measure on noncompliant exchanges addresses money laundering and online crimes. 

The new provision compels the Thai Securities and Exchange Commission (SEC) to provide a comprehensive report on unregistered crypto exchanges to the Digital Economy and Society Ministry.

Thai Regulators to Ban Unlicensed Crypto Exchanges

During the Technology Crime Prevention and Suppression Committee meeting, the secretary general for the Thai SEC, Pornanong Budsaratragoon, issued new directives on the need to suspend the operation of unregistered exchanges. 

The decision to ban unregistered crypto exchange mirrors the strategic action taken by regulators in India and the Philippines. A few weeks ago, the Indian and Philippine authorities banned unlicensed foreign crypto exchanges. 

The ban aimed at addressing financial crimes and strengthening investors’ protection. The commission underlined the risk associated with the operation of unlicensed crypto exchanges in Thailand. 

According to the SEC, to reduce the inherent threat associated with the operations of unauthorized exchanges in Thailand, the regulators advised the customers to withdraw their funds from platforms under regulatory scrutiny.

The SEC urged the customer to expedite the withdrawal process before the new rules take effect. In the latter, the SEC warned Thai investors to be hyper-vigilant when receiving services offered by unlicensed crypto exchanges since they are not recognized under the existing law. 

Rise of Crypto Crime

Besides noncompliance with the licensing requirement, the unregistered exchange has become a breeding ground for scammers and money launders. The commission advised the Thai investors to conduct due diligence with the SEC before conducting any transaction or investment with the exchanges under scrutiny. 

Also, the traders were urged to check the compliance level of the crypto exchange with the SEC Check First platform. For instance, after an analysis of the compliance of Binance in Thailand, the commission noted that the controversial crypto exchange was not registered in the region. This implies that the Binance operation will be seized immediately after the new rules take effect.

Apart from Binance, the market regulators noted that renowned offshore exchanges, including KuCoin, OKX, Coinbase, and Kraken, operated in Thailand illegally. Despite restricting measures on unauthorized exchanges, Thai regulators have remained at the forefront of the ongoing push for crypto adoption. 

The criminal activities witnessed in the crypto sector have limited the plans to promote the mainstream adoption of crypto assets. A few weeks ago, the Thai authority allowed wealthy investors and institutional clients to invest their holdings in crypto exchange-traded funds (ETFs). Also, Thai regulators allow retail customers to invest in gold-backed digital assets. 

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Tether Unveils its Restructuring Plan, Going Beyond Stablecoin Offering

Tether, the world’s largest stablecoin issuer, USDT, has revealed plans to undergo a significant restructuring that will cement the company at the desired market position. Having gained dominance in the stablecoin industry, the Tether team unveiled its restructuring plans to broaden its product offering to other digital assets. 

In an April 18 announcement, the Tether team announced that the restructuring plan will consist of four major divisions: Tether Data, Tether Finance, Tether Edu, and Tether Power. 

Tether Announces Four Divisions of its Restructuring Plan

Launching the four divisions aims to enable the stablecoin issuer to offer a wide range of products and services in investment solutions. According to the announcement, Tether Finance will oversee the issuance of USDT stablecoin, while Tether Power will oversee the company’s broader investment in Bitcoin mining.

Consequently, Tether Data will guide the company in expanding its investment in technology such as peer-to-peer platforms such as Holepunch, Pear Runtime, and Keet. This division will support Tether to expand its artificial intelligence (AI) investments.

The three divisions will help Tether Edu conduct various educational programs and training. Launching the four divisions demonstrated Tether’s commitment to redefining the global financial model. 

Besides offering USDT, the Tether team has remained at the forefront of financial empowerment. The Tether aims to provide sustainable solutions that blend with the community’s diverse needs. 

The stablecoin issuer vows to champion responsible crypto mining and support the development of AI and decentralized platforms.

Tether Seeks to Expand its Product Offering

An announcement conveyed by the chief executive of Tether Paolo Ardoino revealed that the stablecoin issuer made significant changes to the conventional financial system. The executive described USDT as the most trusted and reliable stablecoin. 

The CEO admitted that Tether plans to launch an inclusive infrastructure solution to revolutionize the traditional financial system. Citing the dynamic nature of the financial sector, the CEO confessed that Tether seeks to promote innovation and the development of cutting-edge technologies.

 The executive confirmed that Tether’s ongoing development aims to eliminate hurdles that limit technological advancement. Since 2014, Tether has become the largest company offering the largest stablecoin USDT by market capitalization and trading volumes. 

Reviewing Tether’s Past Achievements

In the last month, Tether attained its all-time high market value of $100 billion. Besides gaining popularity as a leading stablecoin issuer, Tether offers other digital assets, including Euro-pegged Tether Token EURT (EURT) and Chinese Yuan (CNH₮). 

With the proposed restructuring, Tether has showcased its commitment to expand its stablecoin offering to other digital assets. For the past few years, the stablecoin issuer has been launching various investments to expand its revenue-generating streams and remain profitable. 

Last year, Tether launched a Bitcoin mining facility and groundbreaking software to support firm operations. Also driven by the desire to attain Tether’s long-term objective, the stablecoin issuer conducted multiple educational and training programs. 

In February, the Tether team launched an education division to equip the community with fundamental skills in blockchain and crypto technologies. In May 2023, the Tether team invested an undisclosed amount in CityPay.io to allow customers to make USDT payments. 

The integration of USDT on CityPay.io will allow diverse customers to settle their bills conveniently. The Tether team plans to use the excess profit to acquire a measurable amount of crypto assets to gain strategic advantage. In an earlier report, the Tether team acquired 8888 Bitcoin worth $618 million. 

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Sam Bankman-Fried Defense Team Files Appeal on Conviction and 25 Years Sentencing

Following the court ruling on the Sam Bankman Fried case, the defence lawyers plan to challenge Judge Lewis Kaplan’s decision. On Thursday, April 11, the legal team representing SBF filed an appeal notice seeking to challenge their client’s conviction on seven charges. 

Also, the defence team will appeal the 25-year sentencing of SBF. The filing was submitted by the renowned attorney Alexandra Shapiro at the US Southern District Court. 

Legal Team Representing Former FTX Boss Seeks to Appeal

Shapiro lodged his filing weeks after Judge Kaplan ordered Bankman Fried to be arrested for 25 years. During the sentencing, SBF confessed that his contribution to the collapse of FTX was based on his selfish decision.

Also, he lamented that a measurable amount of customers’ funds emanated from the FTX staff’s mismanagement of customers’ accounts. Bankman regretted that the FTX operation exposed the customers to loss of funds. 

He expressed remorse that he made a big mistake while running the operation of FTX. The 32-year crypto investor regretted that his decision on FTX haunted him daily.Besides the sentencing, Kaplan ordered the SBF team to relinquish assets worth $11 billion. 

Depending on the complexity of the case, the defence team urged the court to consider the decision of transferring SBF from the Metropolitan Detention Center to a federal prison in San Francisco. In his ruling, Judge Kaplan directed Bankman Fried to serve his imprisonment in the California Bay Area. 

Damages Caused By Collapse of FTX

Citing the risks of transferring SBF to another prison, Kaplan believes that Bankman’s wealth status and social skills could threaten other inmates. According to a court report, Judge Kaplan’s ruling aimed to ensure that SBF would not become a threat in the future. He argued that SBF showed no sign of remorse during the court proceeding.

The lawyers argued that Bankman Fried should remain at the Metropolitan Center to allow the appeal process. Even though it is still unclear what procedure the SBF appeal will take, the defence team vows to challenge the court decision. 

Guided by the existing law for filing an appeal, the defence team anticipates that the submission will be presented to the Second Circuit Court of Appeal for further review.

At this stage, the judge will assess the suitability of proceeding with an appeal or affirm the decision to convict SBF.

After a lengthy court proceeding, the disgraced crypto was charged with violating existing law and contributing to the liquidation of the Bahamas crypto exchange. He was charged with seven charges and profiled as the mastermind behind the collapse of the FTX.

He was accused of organizing one of the largest financial crimes that exposed thousands to loss of substantial amounts.

Lawyers Challenge Court Ruling on Bankman Fried Case

Following the implosion of FTX, the embattled crypto exchange filed for Chapter 11 of bankruptcy protection, outlined to refund the affected customers. Before then, SBF was featured as the poster boy for cryptocurrency, earning billions from his venture. 

The launching of FTX propelled Bankman’s career upward, attending events and being featured in magazines.

With the ongoing efforts to repay the FTX customers, the court decided to convict SBF and place him behind bars for 25 years. The court ruling has faced backlash from key industry players.

Some of the crypto die-hards on X argued that the 25 years of imprisonment was insufficient for SBF. 

Citing the aftermath of the collapse of FTX, the X users complained that SBF should have been imprisoned longer. Elsewhere, other crypto enthusiasts argued that the detention of SBF will serve as a lesson for individuals planning to commit financial crimes. 

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Auradine Nets $80M in Series B Funding Round, Ahead of Bitcoin Halving

In its advanced announcement, the renowned Web infrastructure and crypto mining hardware development company Auradine announced the successful completion of an $80 million funding round. The April 10 series B funding round was led by fast-paced crypto and fintech companies. 

The participants included Celesta Capital, Marathon Digital Holdings, StepStone Group, Mayfield Fund and MVP Ventures. Other active participants were Maverick Capital and Top Tier Capital partners. The Auradine team described the Series B funding as an overbooked event with over $200 million in bookings. 

Auradine Yields $80M in Funding Round

A statement from the chief executive of Auradine Rajiv Khemani confirmed that the multimillion investment will be used in optimizing production. The CEO admitted that Auradine has gained recognition for its exemplary work of bringing innovation to the industry. 

The official applauded the Auradine team for developing cutting-edge products that are secure and cost-effective. Reflecting on Auradine’s customer base, the CEO was pleased to state that the giant tech firm boasts of having a strong relationship with its customers.

Khemani added that Auradine has been receiving strong orders and pipelines from its diverse customers. He believes that the $81 million investment will play a critical role in maximizing production capabilities and enhancing product development. 

Revisiting the 2023 Series A funding round, the CEO noted some similarities with the Series B funding round. He observed that both funding rounds generated $81 million, which comprised equity and debt.

In the previous funding round, the Auradine valuation reached $500 million. The CEO admitted that Auradine has been targeting to reach a $1 billion valuation in the coming days. He believes that the tech firm continues advancing the products to reach a large audience.The executive projected that Series B would yield $70 million but generated more.

A review of the Auradine website demonstrated that the company offers a complete suite of web infrastructure solutions, artificial intelligence (AI) applications and Teraflux miners. 

Bitcoin Miners Manufacturer Auradine Seeks to Optimize Production

In 2023, Auradine debuted the Teraflux Bitcoin miners to support the mining of crypto assets. Currently, the Auradine team have delivered its Teraflux miners to around 30 mining sites.

The Auradine has acquired a strategic advantage by leveraging advanced technology to boost the privacy, security and convenience of its products. The report indicates that the Auradine Miners version AI3680 has the massive potential of producing an output of 375TH/s and 15J/TH optimal efficiency. 

The Auradine AI3680 model ranks among the fastest miner, slightly above Bitmain’s Antiminers S21 Hydro model, which produces an output of 335 TH/s. In an earlier report, the Auradine revealed plans to ship two Teraflux ASIC miners in mid-year. 

Crypto Miners Prepare for 2024 Bitcoin Halving

The proposed shipment will consist of an AI3680 miner and an air-cooled AT2880 whose output ranges from 0 to 260 TH/s and optimal efficiency amounts to 16 J/TH. The shipment collides with the 2024 Bitcoin halving, which will reduce the miner’s rewards by half. 

To tap the benefits of the Bitcoin halving, the miners have invested heavily in acquiring new mining machinery to maximize production. Commenting on the 2024 Bitcoin halving, Khemani argued that halving will require more energy and will increase the demand for crypto assets. 

With the ongoing development of Auradine products, the CEO believes that its EnergyTune potentials, highest terahash capabilities and energy-saving silicons will perform best after the Bitcoin halving. 

In his statement Khemani noted that Auradine has emerged as the first product line for Bitcoin miners. To meet the ever-changing consumers’ needs, the CEO admitted that they would be launching more product that blends with the objective of most blockchain and AI firms. 

At the moment, the Auradine team is working on developing unique blockchain and AI products. The CEO expects the products under development to be launched soon. With the changes in the tech sector, the Auradine team plans to expand its workforce to increase performance.

The executive anticipates that Auradine will soon poach for professionals in the research and development (R&D) and supply chain divisions.

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HashKey Debut Global Crypto Exchange After Securing Bermudan License

In its Monday update, the renowned crypto firm Hashkey revealed plans to launch HashKey Global, a regulated platform that will facilitate the buying and selling of digital assets. The launching of HashKey Global came days after the exchange secured a license to operate in Bermuda as a regulated entity.

In an X post dated March 8, the HaskKey team confirmed that the new platform will support trading licensed digital assets globally. 

HashKey Obtain Bermuda License

The significant milestone will enable HashKey to expand its footprint in viable markets. Initially, HashKey cemented its market presence in Hong Kong and other promising markets. 

The launching of HashKey Global will enable the exchange to offer around 21 crypto trading pairs to eligible retail clients. The crypto exchange plans to debut futures related products to meet the market’s needs. 

The exchange has sought an extensive regulatory portfolio to ensure that HashKey operates as a compliant platform. A few days ago, the Bermudian authorities greenlighted the HashKey license.

The approval of the license allowed the HashKey team to offer a wide range of digital assets, including futures trading, leveraged trading, and launchpad services.

An announcement conveyed by the chief operating officer at HashKey, Livio Weng, stated that the exchange plans to establish the world’s most largest clusters of licensed crypto exchanges by 2029.

Role of HashKey Global Exchange

The COO believes HashKey’s ongoing development will propel the exchange to gain competitive dominance. The official highlighted that the Bermuda license mirrors other licenses acquired by HashKey in Japan, Hong Kong, and Singapore. 

Weng remains optimistic that HashKey’s past development will bore the desired fruits. The projects that HashKey will gain global recognition and attract success. To attain the desired result, the HashKey team launched a $100 million fundraising that propelled the firm’s value to unicorn status. 

The multimillion-dollar funding will promote innovation and boost the firm’s compliance level. During the fundraising, the HashKey team confirmed plans to comply with the strict rules in Hong Kong, including the Know Your Customer (KYC) and anti-money laundering rules. 

The successful fundraising encouraged the HashKey team to explore viable opportunities. Speaking exclusively with the Hong Kong Economic Journal, Weng confessed that HashKey plan to launch another funding round this year. 

The COO added that HashKey plans to invest more resources in its 2024 global expansion. The executive anticipates that HashKey’s recent investment will be profitable by next year.

Overview of HashKey Global Expansion Plan

The exchange underlined the need to comply with the existing measures to meet the needs of institutional and retail clients. In the report, the HashKey team demonstrated its interest in pursuing crypto-friendly states.

In 2022, HashKey led other exchanges to secure Hong Kong’s new crypto trading license. Months after establishing its headquarters in Hong Kong, the HashKey OTC obtained the in-principle approval of the Monetary Authority of Singapore (MAS). 

The approval allowed HashKey’s over-the-counter division to offer regulated digital payment services to Singaporean customers. HashKey’s expansion to Bermuda mirrors a recent move made by its top rival, Coinbase. 

A statement from the HashKey Global managing director, Ben El-Baz, stated that the expansion of Coinbase to Bermuda challenged the exchange to follow suit. The executive admitted that Bermuda was the most suitable for HashKey compared to other markets.

Citing the aftermath of the fallout of FTX, the executive believes that the world now understands the counterparty risk associated with crypto exchanges. Weng confessed that HashKey sought to curb the gap between user and product experiences. 

El-baz stated the primary objective of HashKey Global was to offer unique products and services that outpace what is currently available in the market. Commenting on the amount spent to establish HashKey Global, El-Baz confirmed that the exchange was adequately capitalized.

The official added that Bermuda offers a great awareness of the different capitalization requirements that suit licensed institutions.

Editorial credit: Yu Chun Christopher Wong / Shutterstock.com

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Bitcoin Above $70K After Biggest Quarterly Options Expiry In History

The price of Bitcoin (BTC) remained above $69,000 on March 29, 2024, despite the market experiencing the largest quarterly Bitcoin futures options expiry event in history.

According to the global head of derivatives trading at Bybit exchange, Hao Yang, the event was the biggest option expiration in history for Deribit and Bybit. Investors might decide to roll over or unwind their hedging position during the expiration time, and the action of unwinding might have a small impact on the price movement in the near term.

More than $15.1 billion worth of cryptocurrency futures options expired on Deribit on March 29, according to a March 28 X post by Deribit. Of that amount, $9.53 billion represented the notional value of Bitcoin options expiring at a put/call ratio of 0.84, with a ‘maximum pain’ price potential of $51,000.

Despite the expiry, Bitcoin remained above $69,000 and later surged above $70,000, suggesting that the pre-halving retracement might be over.

While options expiry can result in increased volatility, day traders can benefit from such a scenario by using AI trading tools like Finance Phantom, which guarantees increased profits while trading. Nonetheless, the max pain price point in such cases does not offer an accurate reflection of Bitcoin’s long-term price potential, which is linked to its fundamental values, according to Yang.

In the same way that a trendy PC case does not directly affect the performance of the hardware inside, max pain is a notable indicator that offers some insight but eventually has minimal influence on the real price action of Bitcoin.

Despite this colossal expiry, the price impact was minimal, as highlighted by the project manager at Nexo’s prime brokerage division, Andrey Stoychev. He explained that with the current scenario where calls are majorly in the money while puts keep converging to zero, delta hedging has mostly concluded, and he expected minimal interruptions from the expiry.

Nonetheless, the integral question remained: will the call profits get reinvested into new contracts, and if that happens, what strikes and maturities are eventually favored?

The Pre-Halving Bitcoin Correction Might Be Over

Bitcoin’s price lost 0.7% within 24 hours to trade at $69,924, according to CoinMarketCap data. The world’s biggest cryptocurrency is up more than 11.9% on the monthly charts.

Bitcoin’s historic pre-halving retracement happened in line with past historical retraces. The current pre-halving correction might be over in case the price of Bitcoin can flip its old all-time high of $69,000 into support, said Rekt Capital in a March 26 video analysis.

Bitcoin is now peaking and consolidating above its old all-time high, possibly positioning itself for the pre-halving retracement to be over. With more gains expected in the year, investors keep buying every dip that arises resulting in a strong bullish rally currently.

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Hard Wallets and Cold Storage: The Safeguards of Cryptocurrency Wealth

In the world of cryptocurrency, the terms “hard wallets” and “cold storage” are synonymous with security and protection. As newcomers venture into the crypto realm, understanding these concepts becomes crucial for safeguarding digital assets.

Just as one wouldn’t leave physical cash unattended, the same level of care and precaution is necessary when handling cryptocurrencies. Here, we’ll explore the essence of hard wallets and cold storage, unraveling their significance in the digital currency ecosystem.

The Basics: Understanding Wallets and Storage

A crypto wallet functions as a digital tool for storing, sending, and receiving cryptocurrencies. Similar to traditional wallets that hold cash and cards, crypto wallets keep digital assets accessible yet secure.

However, the distinction between physical and digital wallets extends beyond their form. In the crypto world, wallets are further categorized based on their connection to the internet and their physical existence, leading to the classification of hot/cold and soft/hard wallets.

Hot and Cold Wallets

The temperature analogy in cryptocurrency storage speaks volumes about security and accessibility. Hot wallets, which are connected to the internet, offer convenience for frequent transactions but at the expense of heightened security risks.

Conversely, cold wallets thrive in offline environments, prioritizing security over immediate access. This clear demarcation sets the stage for understanding the more nuanced terms of hard wallets and cold storage.

Hard Wallets

Hard wallets, also known as hardware wallets, are physical devices resembling USB drives, designed to store cryptocurrencies securely. They serve as a vault for digital assets, safeguarding them from online threats.

When disconnected, these wallets transform into impenetrable fortresses, immune to hacking attempts and unauthorized access. Brands like Ledger and Trezor dominate this space, offering users peace of mind through robust security features.

Cold Storage

Cold storage encapsulates the concept of keeping cryptocurrencies offline, away from the vulnerabilities of the internet. This method encompasses hard wallets but also includes other forms of offline storage like paper wallets. Cold storage is akin to a safety deposit box for digital assets, providing a sanctuary where cryptocurrencies can reside, untouched by the digital chaos of the online world.

The Trade-Off: Security vs. Convenience

The decision between using a hot or cold wallet, a soft or hard storage solution, hinges on the classic trade-off between security and convenience. Hard wallets and cold storage sit firmly on the security end of the spectrum, offering unparalleled protection at the cost of reduced accessibility. This strategic choice caters to long-term investors and those holding significant amounts of cryptocurrency, who prefer the fortress of cold storage over the convenience of hot wallets.

Custody: The Core of Cryptocurrency Control

Central to the discussion of wallets and storage is the concept of custody. In cryptocurrency, custody refers to who holds the keys to the digital assets – literally. Private keys, akin to ultra-secure passwords, grant access to cryptocurrencies.

In non-custodial setups, the individual holds these keys, embodying the principle of self-sovereignty. Custodial services, however, entrust a third party with the keys, trading a measure of control for convenience or additional services.

The Cryptocurrency Storage Landscape

For those venturing into the cryptocurrency world, the choice between hard wallets, cold storage, and their various counterparts is more than a technical decision; it’s a reflection of one’s priorities, risk tolerance, and investment strategy.

Hard wallets and cold storage, with their emphasis on security, represent the gold standard for those seeking to protect their digital wealth from the myriad threats of the online world.

In conclusion, as the cryptocurrency market continues to evolve and expand, understanding and leveraging the security offered by hard wallets and cold storage becomes paramount. These tools not only safeguard digital assets but also embody the ethos of cryptocurrency: empowerment, self-sovereignty, and security in the digital age.

Whether for long-term investment, significant holdings, or peace of mind, hard wallets and cold storage offer a bulwark against the vulnerabilities of the digital frontier, ensuring that one’s digital wealth remains secure, today and into the future.

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What are Indicators of a Bitcoin Bear Market?

The cryptocurrency world, especially Bitcoin, is one where sentiment significantly influences market dynamics. With Bitcoin’s value plummeting by more than 50% from its May 2021 all-time highs, the crypto community is abuzz with speculations of entering a bear market, characterized by declining prices and prevalent pessimism.

But how do we objectively identify a bear market in such a sentiment-driven landscape? Let’s explore the key indicators that signal a downturn in the Bitcoin market.

Sentiment as the Market’s Driving Force

Understanding that the cryptocurrency market thrives on sentiment is crucial. Unlike traditional assets, cryptocurrencies are nascent technologies with unproven business models and, often, no current revenue streams.

This lack of tangible data means market sentiment, shaped by perception rather than hard facts, plays a pivotal role in driving price movements. When negative sentiment overshadows, a bear market emerges, marked by a self-reinforcing cycle of pessimism.

Signs of a Looming Bear Market

1. Exchange Inflows & Dormant Addresses: A surge in Bitcoin inflows to exchanges indicates a growing intent to sell, acting as a proxy for negative market sentiment. Similarly, changes in dormant Bitcoin addresses, which haven’t seen activity for an extended period, can signal shifts in investor sentiment, with increases in active addresses often preceding market downturns.
2. Futures & Funding Rates: The futures market, where investors speculate on future Bitcoin prices, and funding rates, which dictate the cost of holding long or short positions, offer insights into market expectations. Positive funding rates suggest bullish sentiment, while negative rates indicate bearish outlooks. A significant divergence in futures prices from spot prices can also hint at market instability.
3. Death Crosses & Golden Crosses: These technical indicators, derived from moving averages, provide a graphical representation of market sentiment over time. A death cross, where a short-term moving average dips below a long-term average, signals weakening confidence and potential bearish trends. Conversely, a golden cross, where the short-term average rises above the long-term average, suggests a bullish turn.

External Factors Influencing Market Sentiment

External events significantly impact Bitcoin’s sentiment-driven market. For instance, negative news such as regulatory crackdowns or environmental concerns can trigger sell-offs, while positive developments like legal tender announcements can bolster market confidence. The interplay of these external factors with the indicators mentioned above shapes the market’s direction.

Navigating Through a Bear Market

Recognizing the signs of a bear market is just the first step. The real challenge lies in navigating through it. Historical patterns suggest Bitcoin bear markets can be prolonged, but the current landscape is markedly different due to increased institutional involvement, the prevalence of stablecoins, and the rise of leveraged trading. These factors could potentially shorten the duration of bear cycles or result in sideways market movement, offering a silver lining to investors bracing for a downturn.

The Importance of a Balanced Perspective

In the volatile world of Bitcoin, adopting a balanced perspective is vital. While understanding bear market indicators is essential, it’s equally important to consider the broader ecosystem’s evolution and the increasing role of mainstream acceptance and regulatory frameworks.

The market is continually influenced by a complex mix of sentiment, technological advancements, and external factors, making flexibility and informed decision-making key to navigating the crypto landscape.

Conclusion

The Bitcoin market is a complex interplay of sentiment, technology, and external influences, making definitive predictions challenging. While certain indicators can signal a bear market, the crypto ecosystem’s rapid evolution suggests future cycles may differ from the past.

Investors must remain informed, adaptable, and prepared for the rollercoaster ride that is Bitcoin investing, acknowledging that sentiment will continue to play a dominant role in shaping the market’s trajectory.

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What to Know About Bitcoin Maximalism

The Rise of Bitcoin Maximalism

In the diverse world of cryptocurrency, Bitcoin Maximalism stands out as a fervent ideology, championing the supremacy of Bitcoin as the ultimate decentralized digital currency.

This belief system argues that Bitcoin, with its pioneering blockchain technology and digital scarcity, outmatches all other cryptocurrencies—deemed “shitcoins” by maximalists. Understanding Bitcoin Maximalism offers insight into the ongoing debate over the future of crypto and its role in reshaping financial systems.

The Genesis of Crypto Tribalism

Cryptocurrency’s inception promised a unified front against traditional financial systems. However, the reality is far from monolithic. The crypto space is fractured into tribes, each with its vision for digital currency’s future. Bitcoin Maximalists, or “Maxis,” form one of these tribes, advocating for a world where Bitcoin reigns supreme, based on principles of decentralization, scarcity, and resistance to censorship.

Bitcoin’s Immutable Foundations

Bitcoin Maximalists assert that Bitcoin’s unique attributes—enshrined in the Bitcoin Protocol—render it the only true form of sound money in the digital age. They argue that the decentralization achieved through Satoshi Nakamoto’s anonymous stewardship and the expansive network of nodes makes Bitcoin resistant to manipulation, ensuring its longevity and stability.

The Controversy Surrounding Maximalism

Maximalists are notorious for their dismissive stance towards other cryptocurrencies, branding them as inferior or opportunistic. This has sparked accusations of toxicity within the crypto community. Yet, maximalists defend their position as a necessary defense against dilution of crypto’s founding principles and a bulwark against centralized control.

The Blocksize Wars: A Defining Clash

The ideological rift within the Bitcoin community reached its zenith during the Blocksize Wars, a heated debate over Bitcoin’s scalability. The conflict led to the creation of Bitcoin Cash and later Bitcoin SV, underscoring the challenges of maintaining consensus in a decentralized system. This schism highlighted the complexities of governance and innovation within blockchain networks.

Beyond Bitcoin: The Spectrum of Crypto Beliefs

While Bitcoin Maximalists occupy one end of the crypto ideological spectrum, a broad range of beliefs exists between them and proponents of centralized digital currencies, like CBDCs. This middle ground is populated by various cryptocurrencies and blockchain projects, each proposing different solutions to the limitations of traditional finance and the challenges faced by Bitcoin.

The Empire Strikes Back: Regulation and Resistance

As crypto adoption grows, governments and financial institutions are mobilizing to maintain their grip on monetary systems through regulation and the development of CBDCs. This pushback from traditional power structures sets the stage for a prolonged struggle over the future of money, with Bitcoin Maximalists advocating for total independence from state control.

The Importance of Bitcoin Maximalism

Bitcoin Maximalism is more than just a preference for one cryptocurrency over others; it’s an ideological stance on the nature of money, privacy, and freedom in the digital age. By championing Bitcoin as the epitome of decentralized finance, maximalists challenge the existing financial paradigm and envision a future where financial sovereignty is paramount.

Conclusion

The debate surrounding Bitcoin Maximalism underscores the broader struggle to redefine money in the 21st century. Whether one aligns with the maximalists, embraces a more pragmatic approach to cryptocurrency, or advocates for government-led digital currencies, it’s clear that the battle for the future of finance is far from over.

As the crypto landscape evolves, understanding the ideological underpinnings of Bitcoin Maximalism is crucial for navigating the complex interplay of technology, economics, and politics shaping our digital future.

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