Nike, the renowned footwear and apparel giant, has hinted at the possibility of releasing a collection of sneaker nonfungible tokens (NFTs) within the popular online game Fortnite, developed by Epic Games.
This move could potentially open up a significant opportunity for the adoption of Web3 technology among traditional gamers. Fortnite boasts an impressive user base, with over 242.9 million active players in the last 30 days, according to Active Player data.
On June 16, Nike made an announcement on its social media platforms, revealing that the “ultimate Sneakerhunt” would commence on June 20. Accompanying this announcement was a brief video featuring the prominent Air Max logos of both Fortnite and Nike against a backdrop of floating clouds in the sky. The video also showcased the name of the sneaker hunt, “Airphoria,” and presented Nike’s Web3 platform logo, .Swoosh, alongside the Unreal Engine logo of Epic Games.
Although details are scarce at this point, members of the NFT community speculate that Nike may have developed an NFT-related game using Fortnite Creative 2.0. This new feature allows users to create their virtual island game maps utilizing Fortnite assets.
A Twitter user noted that Nike had previously created a game on ROBLOX, but it did not involve NFTs. Therefore, the integration of .Swoosh in Airphoria suggests a potential NFT connection. Furthermore, Epic Games has shown a favorable stance toward NFT gaming.
Nike’s NFT division has been actively working to establish a presence in the traditional gaming space. On June 1, .Swoosh announced its intention to integrate NFTs into games developed by EA Sports, the company responsible for the immensely popular Fifa soccer game franchise and other titles. However, the specific EA Sports games that will incorporate Nike NFTs have yet to be confirmed.
The upcoming Airphoria sneaker hunt in Fortnite showcases Nike’s ongoing efforts to embrace Web3 and explore the possibilities of NFTs in the gaming industry. By leveraging the massive player base of Fortnite, Nike aims to engage a wider audience and introduce them to the world of digital collectibles. As the partnership between Nike, Epic Games, and EA Sports continues to unfold, it will be intriguing to see how NFTs become integrated into the gaming experience, shaping the future of both industries.
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Tether responds to allegations about its reserves
Cryptocurrency entrepreneur Do Kwon, the creator of the failed Terra (UST) stablecoin, appeared in court in Podgorica, Montenegro, facing charges of forging official documents. Meanwhile, a U.S. judge presided over a hearing to determine whether the digital assets produced by Terraform Labs constituted securities. This pivotal question forms the crux of the U.S. Securities and Exchange Commission’s (SEC) fraud case against the company and its founder.
Terraform Labs and Kwon were responsible for two cryptocurrencies that caused significant disruption in global crypto markets last year. They have requested U.S. District Judge Jed Rakoff in Manhattan to dismiss the SEC’s allegations, which assert that they defrauded investors by selling billions of dollars in unregistered securities.
TerraUSD, an algorithmic stablecoin designed to maintain a 1:1 peg to the U.S. dollar, derived its value from another paired token called Luna. Both tokens suffered a substantial loss in value when TerraUSD, also known as UST, fell below its dollar peg in May 2022. Prior to this collapse on May 9, TerraUSD boasted a market capitalization exceeding $18.5 billion, ranking it as the 10th-largest cryptocurrency.
The SEC’s complaint alleges that Terraform Labs and Kwon deceived investors regarding the stability of UST while falsely claiming that their crypto tokens would appreciate in value.
During the hearing, Judge Rakoff raised doubts about whether the offering of Terraform Labs’ Anchor protocol, which promised returns of up to 20% on TerraUSD deposits, should be considered a security. He questioned the nature of this protocol, highlighting that it was exclusive to those who had taken the initial step. Consequently, he pondered why it shouldn’t be regarded as a securities contract.
Terraform Labs and Kwon argue for the dismissal of the case, asserting that their digital assets do not meet the criteria to be classified as securities. Furthermore, they maintain that the SEC lacks the authority to regulate the industry.
The outcome of this legal battle will undoubtedly have significant implications for the cryptocurrency sector, as it could potentially establish important precedents regarding the classification of digital assets as securities. The ruling will shape the future regulatory landscape and provide clarity to market participants and investors alike.
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Sturdy Finance, a decentralized finance (DeFi) platform, recently endured an exploit that led to the temporary suspension of its stablecoin market. The lending platform, on June 16, reinstated the stablecoin market, enabling users to regain access to their assets.
The precautionary halt was emphasized as a measure of “an abundance of caution,” assuring users that their funds were never jeopardized.
The exploit, which cleverly manipulated a flawed price oracle, led to significant drain of funds from Sturdy’s platform.
Post-exploit, the team at Sturdy Finance is engaging in collaborative efforts with security specialists, focusing on on-chain analysis to reclaim the lost funds. An alliance with global law enforcement has been formed to aid in information collection and potential asset recovery.
To incentivize the return of the funds, Sturdy Finance has proposed a bounty of $100,000 to the perpetrator. The DeFi protocol’s team pledged to put the issue to rest if the stolen funds are returned to their crypto wallet. If this fails to occur, the same bounty is offered to anyone who can aid in either arresting the hacker or recovering the stolen funds.
Simultaneously, as digital theft grows in complexity, hackers are devising increasingly cunning techniques to obscure their ill-gotten wealth. According to a report by blockchain analytics company, Chainalysis, published on June 15, hackers have been found utilizing mining pools to camouflage their stolen assets.
This method transforms the stolen funds into what appears to be legitimate earnings from mining activities, effectively diverting suspicion from illicit ransomware activities.
Celsius, the bankrupt crypto lender, has adjusted its bankruptcy filing and awaits approval from a New York court, following an acquisition by the Fahrenheit crypto consortium. The reorganized plan, filed on June 15, involves conversion of all customer altcoins, barring those in “Custody and Withhold accounts,” into Bitcoin and Ethereum, commencing from July 1.
The restructuring agenda also proposes to manage retail borrowers’ claims using the ‘set off treatment’, which involves balancing losses against profits in the same year. Any losses not offset against income could be rolled over for offsetting against future years’ income.
However, David Adler of law firm McCarter & English, warned that Celsius’ approach might not sit well with borrowers. Despite demanding repayment of loans, Celsius plans not to honor certain contractual obligations, such as returning borrowers’ collateral. Adler warned, “This proposed ‘treatment’ violates every consumer lending law out there (state, federal) and the ad hoc Borrower group will be opposing this plan.”
As part of its restructuring strategy, Celsius seeks to appoint Chris Ferraro as the foreign representative to handle its U.K. assets in line with the U.K.’s Cross-Border Insolvency Regulations. This would secure the company’s U.K. assets and recognize the U.S. Chapter 11 as the “foreign main proceedings” for a global solution.
On May 25, the Fahrenheit crypto consortium, including venture capital firm Arrington Capital and US Bitcoin Corp, secured the bid to purchase Celsius’s assets, valued at around $2 billion. The new agreement anticipates the new company will garner about $450–500 million in liquid cryptocurrency, while US Bitcoin Corp has plans for a 100-megawatt Bitcoin mining plant.
Celsius suspended withdrawals on June 13, 2022, after it was caught up in poor investments and a crypto market downturn following the failure of the Terra ecosystem.
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Bybit completes integration with Copper’s ClearLoop network
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Bybit, one of the largest crypto exchanges in the world, has announced that its integration with Copper’s ClearLoop network has been completed.
This integration will allow investors to trade on Bybit’s exchange while settling off-chain, to ensure the near-instant settlement of their trades. This is especially useful during periods of heightened market volatility, as blockchain transaction confirmation times typically increase significantly during such periods.
As the assets will be safeguarded under secure Multi-Party Computation custody at Copper, Bybit’s integration with ClearLoop also empowers institutions with its clear English Law trust structure.
Copper’s ClearLoop network provides clients with off-exchange settlement which mitigates counterparty risk and improves capital efficiency.
Clients can also benefit from Copper’s market-first trust documentation, which mitigates both exchange counterparty and insolvency risk.
By joining the ClearLoop network, Bybit has demonstrated its commitment to transparency, accountability, safety, and effective governance.
Ben Zhou, co-founder and CEO of Bybit, hailed the integration, saying: “Bybit now sits alongside major industry players within the ClearLoop network that honor the pillars of good governance by being transparent, accountable, and, above all, secure.
“A little over a year ago, security was the biggest concern for institutional investors, but we are now removing concerns by partnering with custodians like Copper that offer the right set of tools for our institutional clients,” Zhou added.
Meanwhile, Copper CEO Dmitry Tokarev said his company is “excited to join forces with Bybit, who share our commitment to asset security, user experience and to setting higher standards for the crypto industry to reach its full growth potential.”
Amidst the lawsuits by US regulators against leading competitors Binance and Coinbase, cryptocurrency exchange Bitget has observed a significant upsurge in new account registrations from Latin America. The platform reported a 43% increase in new users from the region between June 6 and 9 compared to the daily averages, with Brazil and Argentina driving the growth, as per a Bitget spokesperson.
In Brazil, the number of new Bitget clients soared by 54%, with total deposits experiencing a 208% spike. In Argentina, the customer base and total deposits grew by 33% and 87% respectively. The crypto exchange, which also operates in Venezuela, Colombia, and Mexico, reported a 134% rise in total regional deposits during this period.
With over 8 million customers in 100 countries, Bitget didn’t disclose the total user count in Latin America. The uptick in figures is attributed to the recent regulatory developments in the US, where the SEC sued Binance on June 5 on 13 charges, leading to Binance net outflows of $3.128 billion over the past week, while Bitget’s deposits increased by $14.8 million.
Gracy Chen, Bitget’s Managing Director, expressed her confidence in the industry’s resilience despite recent upheavals, stating that “favorable policies are being implemented in places like Hong Kong, Dubai, Singapore and new opportunities are emerging.”
On June 6, Coinbase, another major crypto exchange, was sued by the US SEC for allegedly dealing in unregistered securities. The SEC Chair accused Coinbase of failing to provide adequate protection against fraud, manipulation, and conflicts of interest, leading to an overnight change of 113.06% in Coinbase’s trade volume, which reached $1.5 billion.
Interestingly, both Binance and Coinbase have been actively expanding their local operations in Brazil, a market of significant importance to these exchanges.
READ: Hackers steal almost $1 million after hijacking crypto influencers’ accounts
Crypto.com, the Singapore-based cryptocurrency exchange, has announced the suspension of its service to institutional clients in the United States, effective from June 21. The move is attributed to limited demand from institutional customers, a situation that has been aggravated by challenging market conditions. The platform’s institutional users were given advance notice about the service suspension.
Despite this, Crypto.com’s retail mobile application and platform will continue to operate in the U.S. The retail customers can still access cryptocurrency derivatives trading regulated by the Commodity Futures Trading Commission, as well as the exchange’s UpDown Options feature. This allows users to speculate on the future movements of various cryptocurrencies, by opening long or short trading positions.
The company remains open to the possibility of reinstating its institutional exchange service in the U.S. in the future.
While the firm’s U.S. institutional offering is being suspended, Crypto.com recently received a major payment institution license from the Monetary Authority of Singapore for digital payment token services. This enables the company to continue offering its services in Singapore.
June 2023 has been a volatile month for cryptocurrency exchanges operating in the U.S. The Securities and Exchange Commission (SEC) initiated legal actions against Binance.US and Coinbase, citing various alleged violations of securities laws.
These developments come as part of a growing regulatory crackdown on the cryptocurrency industry in the U.S., which has been intensifying over the past eight months, following the collapse of the FTX exchange. The wider cryptocurrency ecosystem has responded critically to the SEC’s actions, highlighting the ongoing tension between the crypto industry and regulatory authorities.
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In a recent spate of attacks, fraudsters have taken over at least eight Twitter accounts of crypto influencers, promoting phishing scams and swindling nearly $1 million in digital assets, reports blockchain investigator ZachXBT. He identified several wallets connected to these scams through on-chain links associated with the hijacked accounts.
Among the victims are high-profile individuals like Pudgy Penguins’ Cole Villemain, DJ and NFT collector Steve Aoki, and Bitcoin Magazine’s Pete Rizzo. Even staunch crypto critic Peter Schiff’s account was exploited to push a suspicious link related to tokenized gold in DeFi.
ZachXBT suggests some of these breaches might have occurred through a Twitter admin panel, in addition to SIM swapping. Once the scammers gained control, they instantly began posting phishing scams. Lackluster response times from Twitter allowed some fraudulent tweets to remain active for several hours, sometimes even days.
OpenAI’s CTO Mira Murati and The Sandbox co-founder Arthur Madrid were also among those targeted. The scams often involved promoting fake airdrops of ERC-20 tokens, with Murati’s account used to promote a counterfeit OPENAI token airdrop.
The investigator urged users to adopt security keys for two-factor authentication rather than SMS-based options. He called on Twitter to thoroughly investigate these incidents, given the substantial amount stolen.
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Poloniex is one of the most well-known names in the world of cryptocurrency, launched in 2014. Since its inception, it has established a reputation for being a leading digital asset exchange offering a wide range of cryptocurrency trading options, including spot trading, margin trading, and lending.
Aesthetics and User Interface
On first landing on Poloniex’s platform, it’s evident that they’ve put effort into developing an appealing and easy-to-navigate interface. The overall look is clean and modern, with a dark theme that is friendly to the eyes, especially for those who tend to spend long hours trading. The layout is intuitive and self-explanatory, with tabs and dropdown menus providing easy access to different functions and markets.
The trading interface, complete with charts, order books, and trading history, offers all the critical information on one screen. Advanced traders will appreciate the extensive range of technical analysis tools integrated into the charting feature. On the flip side, beginners may initially find the interface slightly overwhelming due to the wealth of information displayed.
Security
Security is always a key consideration when assessing any cryptocurrency exchange. Poloniex has learned from past experiences, like the Bitcoin hack back in 2014, and made substantial strides in this area. All deposits are now stored in air-gapped cold storage. Additionally, they offer two-factor authentication (2FA) for accounts, email confirmations for withdrawals, and have stringent AML and KYC checks to prevent illicit activity.
However, it’s worth noting that, like all centralized exchanges, it’s not fully immune to risks. Users must exercise individual security measures, such as enabling 2FA, regularly updating passwords, and not clicking suspicious links.
Trading Options and Liquidity
Poloniex stands out due to its extensive variety of trading options. Its margin trading feature allows users to borrow funds to leverage their trades. Their lending feature allows users to earn interest by lending their assets.
In terms of cryptocurrency pairs, Poloniex offers a wide selection, making it an attractive option for those looking to trade less popular or more niche cryptocurrencies. The platform’s liquidity is generally strong, ensuring quick trade execution and lower slippage. However, the liquidity can vary across different pairs, with lesser-known pairs potentially having lower liquidity.
Fees
Poloniex operates a maker-taker fee schedule, which is dependent on the user’s 30-day trading volume. The fees are competitive, particularly for more active traders who benefit from lower fees as their volume increases.
However, the fee structure can be complex for new users or those not trading regularly. While the fees are generally lower compared to other exchanges, it’s always important to understand the costs associated with trading on the platform.
Customer Support
Customer support is an area where Poloniex has faced criticism in the past. The platform offers 24/7 support and a comprehensive knowledge base, but the response times can vary significantly, leading to some frustration among users. However, the company appears to be addressing this, with noticeable improvements in response times and resolution efficiency.
Regulation
Poloniex is a US-based exchange, and it adheres to the regulatory environment. It was acquired by Circle in 2018, a company with a strong focus on compliance and regulation. Since October 2020, it’s been operated by Polo Digital Assets, Ltd., who have pledged to continue focusing on compliance with all relevant laws and regulations.
Mobile App
The Poloniex mobile app offers a seamless experience, mirroring the desktop platform’s functionality. The design remains consistent, ensuring that users can easily navigate and execute trades on the go. The app is responsive, user-friendly, and offers real-time updates, making it a reliable tool for traders.
Conclusion
Overall, Poloniex remains a prominent player in the cryptocurrency exchange arena. With its wide selection of cryptocurrencies, array of trading options, and focus on security, it’s an appealing option for both novice and experienced traders.
However, it’s essential for potential users to understand the platform’s intricacies, particularly in terms of fees and the sometimes complex trading interface.
Improvements in customer support and a continued focus on security will be vital for Poloniex moving forward, given the intense competition within the industry. That said, Poloniex’s solid track record, established reputation, and commitment to staying at the forefront of cryptocurrency innovation make it a compelling choice for anyone seeking a versatile and secure trading platform.
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Jack Dorsey, an outspoken Bitcoin proponent, has found himself in a Twitter debate with crypto industry personalities after confirming in a reply that he views Ether as a security. Udi Wertheimer, a Bitcoin Ordinals developer at Taproot Wizards, labeled Dorsey as a “clown” in a June 6 tweet.
In response, Dorsey challenged, “ETH is not a security? Teach me wizard,” causing Wertheimer to post a five-year-old clip of SEC chair Gary Gensler declaring that ETH was “sufficiently decentralized” and therefore not a security.
Gabor Gurbacs, strategy advisor to Tether and VanEck, countered by suggesting that Ethereum’s recent shift to a proof-of-stake consensus algorithm could have reactivated securities laws. This dispute occurred amidst the SEC’s lawsuits against cryptocurrency exchanges Binance and Coinbase on June 5 and 6, accusing them of offering unregistered securities tokens.
Dorsey seemed to support a 2015 post by Coinbase CEO Brian Armstrong, suggesting that altcoins were a “distraction” and that Coinbase should primarily focus on Bitcoin. Continuing his Bitcoin-centric tweets, Dorsey retweeted a video by Jack Mallers, CEO of Bitcoin Lightning app Strike, criticising Armstrong’s prioritization of altcoins over Bitcoin and the Lightning Network development.
Despite Twitter selling 140 Ethereum-based non-fungible tokens (NFTs) when Dorsey was at the helm in 2021, Dorsey had dismissed investing in Ether. He also expressed skepticism about Ethereum’s potential to disrupt big tech in August 2021.
Most recently, Dorsey has backed and championed Nostr, a decentralized network designed to compete with Twitter. This network incorporates Bitcoin Lightning-based payments on its “Damus” platform.
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