Cryptocurrency derivatives exchange BitMEX has downplayed its violation of the Bank Secrecy Act (BSA) in the United States, calling it “old news” from 2020.
The company plans to request an expedited sentencing hearing, indicating that no additional charges will be pursued.
On July 10, US Attorney Damian Williams announced that BitMEX had admitted to offering crypto trading services without a proper Anti-Money Laundering (AML) program.
BitMEX responded by pointing out that its founders, Arthur Hayes and Benjamin Delo, had already pleaded guilty to the violation and paid fines in 2022.
At the time, Hayes and Delo admitted to “willfully failing to establish, implement and maintain an Anti-Money Laundering program” at their exchange.
This resulted in BitMEX implementing verification systems to prevent US citizens from using the platform.
Both founders agreed to pay $10 million in criminal fines each for the BSA violations.
Consequently, the exchange does not anticipate any further fines from the US Department of Justice (DOJ).
BitMEX stated, “We have accepted the BSA charge, will seek an expedited sentencing hearing, and argue that no further fine should be imposed, given the substantial amounts already paid by our founders under the BSA charges brought against them, and under our no admission/no denial settlements with the CFTC and FinCEN in 2021.”
BitMEX also mentioned that its Know Your Customer and AML programs have been independently audited. “Needless to say, this charge has no impact on our business operations,” it concluded.
Delo was sentenced to 30 months probation for the BSA violation on June 16, while Hayes received two years probation and six months of home detention on May 21.
Prosecutors had argued that Delo should serve a prison sentence similar to Hayes.
Hayes voluntarily surrendered to US authorities in Hawaii six months after federal prosecutors first levied charges on April 7.
His lawyers stated, “Mr. Hayes voluntarily appeared in court and looks forward to fighting these unwarranted charges.”
In the US, pleading guilty to supporting money laundering is a punishable offense, often carrying a maximum penalty of five years in prison.
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Crypto privacy protocol Railgun has successfully thwarted Inferno Drainer’s recent attempt to launder stolen funds.
On July 10, MistTrack reported on X that Railgun had blocked a July 9 attempt to launder over 174 Ether (approximately $533,000).
This forced the stolen ETH to be returned to Inferno’s original wallet address.
Alan Scott Jr, a Railgun contributor, explained to Cointelegraph that Inferno’s attempt to exploit the Ethereum-based privacy protocol was halted by Railgun’s automated private proofs of innocence (PPOI) system.
Scott said, “The tokens could only return to the attacker’s address — they were not welcome in RAILGUN.”
He elaborated that the PPOI system ensures that tokens sent by malicious actors can only be returned to the initial shielding wallet.
“This is part of PPOI. This technology is brand new, but this is a great example that shows it works.”
Railgun, established in January 2021, employs zero-knowledge (ZK) cryptography to obscure wallet balances, transaction history, and details.
This allows users to interact with decentralized apps (DApps) on Ethereum or other supported chains privately.
Railgun’s PPOI system, launched in January 2023, ensures that tokens entering the Railgun smart contract are not associated with known undesirable transactions or actors.
READ MORE: Mt. Gox Begins Long-Awaited Bitcoin Repayments, Sparking Market Volatility
Users must create a ZK-proof demonstrating their funds are not part of a pre-set list of transactions and wallets.
Scott detailed that the PPOI system detects transactions linked to malicious actors and blocks them from being processed through the protocol.
The only option for the sender is to return the tokens to the original address.
“That transaction flow remains trackable, and attempting to use Railgun provides zero privacy to that actor,” he stated.
Inferno Drainer has stolen over $180 million in crypto from over 189,000 victims since its inception in August 2023, according to Dune Analytics data.
In April, Railgun refuted claims by independent crypto reporter Colin Wu, who alleged the protocol had been used by the North Korean hacking group Lazarus.
Despite blockchain security firm Elliptic labeling Railgun a “prime alternative to Tornado Cash” after U.S. sanctions against the crypto mixer, Ethereum co-founder Vitalik Buterin has defended Railgun, asserting that privacy is “normal.”
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The SSV-powered distributed validators (DVs) have been launched as part of the new Simple DVT Software Module, which is ready to accept deposits. This technology is a key part of Lido’s strategy, a liquid staking solution for Ethereum, to diversify its node operators and enhance the protocol’s resilience, distribution, and security.
The Simple DVT module is specifically designed to foster a more scalable and permissionless ecosystem for future DVT-based applications. Eridian, the Simple DVT administrator at SSV Network DAO, emphasized the significance of this development, stating, “The Lido middleware utilizing DVT protocols including SSV is an important step towards vastly increasing the number of node operators and enabling solo home stakers to participate as node operators. SSV is optimized to serve as a low/no coordination DVT solution and will facilitate the development of trustless modules in the future.”
The module is integrated into Lido’s latest staking software, with its capacity initially limited to 0.5% of all ETH tokens staked through the middleware, roughly valued at $30.1 billion. This cap was raised to 4% after a Lido DAO vote. The DV clusters initially tested on the Lido testnet are now operational on the mainnet, as confirmed by the LNOSG committee.
The implementation of DVT within Lido’s suite is set to expand the number of node operators significantly, enhance client diversity, improve fault tolerance, and potentially lower bond requirements. Node operators can also look forward to reduced hardware and capital expenses, with options to connect to SSV.Network’s decentralized infrastructure through the upcoming Community Staking Module.
Will Shannon, a contributor to the Lido middleware, highlighted the impact of DVT, saying, “Incorporating DVT is the fastest way to expand the number of node operators using the Lido protocol to run validators. Simple DVT is the first step, with an opportunity to connect over 300 net-new node operators to the middleware in the first six months following the launch of the module. The SSV team has developed a highly performant DVT protocol that over time has the potential to further the decentralization and resilience of node operators across infrastructure, clients, and geographies.”
DVT plays a crucial role in decentralizing ETH staking, reducing network vulnerabilities, and minimizing slashing risks by distributing validator operations among various parties, including professional and at-home node operators. This system counters the centralization risks prevalent in complex systems and is a part of the broader strategy to decentralize the ETH network further. SSV.Network, as an open-source protocol, enables the creation of various DVT-powered applications and has already secured over 1,000,000 ETH with its 700+ node operators.
Crypto exchange Bitget reported a notable $700 million capital inflow and a surge in website traffic during the second quarter of 2024.
The company experienced a 50% increase in traffic compared to the previous quarter, attracting 10 million monthly visitors in Q2.
Additionally, Bitget saw 2.9 million new users and a 10% rise in its spot trading market volume from Q1.
Bitget also reported significant growth in its funds.
The company noted that its Bitcoin (BTC), USDT, and Ether (ETH) holdings surged by at least 70%.
BTC holdings grew by 73%, while USDT and ETH holdings saw increases of 80% and 153%, respectively.
This translates to approximately $700 million in capital inflow, according to Bitget.
In Q2 2024, Bitget formed partnerships with three Turkish national athletes: wrestler Buse Tosun Çavuşoğlu, boxer Samet Gümüş, and volleyball player İlkin Aydın.
This initiative is part of a broader campaign featuring football legend Lionel Messi.
Bitget CEO Gracy Chen expressed gratitude for the community’s support, emphasizing the company’s commitment to Web3’s future. Chen stated:
“Q2 2024 has been a pivotal period for Bitget. Our collaboration with Turkish athletes along with significant growth in users and website traffic is a part of our global expansion.”
In collaboration with Singapore-based investment firm Foresight Ventures, Bitget launched a $20 million ecosystem fund in Q2.
READ MORE: Mt. Gox Begins Long-Awaited Bitcoin Repayments, Sparking Market Volatility
This fund aims to support early-stage projects on The Open Network (TON) and foster the development of the TON ecosystem.
The exchange also emphasized its proof-of-reserves (PoR) report, which shows ratios above 100% for all major assets.
Bitget reported holding more than 100% of cryptocurrencies compared to user funds, enhancing trust and security.
Furthermore, Bitget’s protection fund is valued at over $420 million, providing additional security for its users.
To combat the rising threat of deepfake scams, Bitget partnered with Know Your Customer (KYC) verification provider Sumsub.
This collaboration aims to prevent deepfake scammers from completing the KYC verification process on the exchange.
On June 27, Bitget researchers warned that losses from deepfake attacks within the crypto space could reach $25 billion in 2024.
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Pudgy Penguins, a non-fungible token (NFT) collection, has partnered with Web3 domain provider Unstoppable Domains to allow users to access Pudgy World using .pudgy domain names.
Announced on July 10, this integration enables .pudgy domain holders to sign into the virtual world using only their domain names, enhancing the ownership layer of the Pudgy World experience.
With this new feature, users no longer need to use Web2-based credentials, such as Google or Apple accounts, to log into the virtual world.
This integration also eliminates the need for traditional passwords, streamlining the login process.
Web3 domain names are human-readable addresses that serve as replacements for crypto wallet addresses.
Instead of a long string of random 42-letter characters, Web3 domains offer more straightforward names that represent wallet addresses.
On Jan. 10, Sandy Carter, Unstoppable Domains’ chief operating officer, emphasized the importance of Web3 domains in the adoption of Web3 technology.
Carter noted that these domains have immediate utility, addressing criticisms of the limited use cases for some blockchain-based products like NFTs.
In a press release, Carter highlighted the benefits of integrating Web3 domains with Pudgy World access. She stated:
READ MORE: German Government Continues Bitcoin Sell-Off, Shifts $178 Million in BTC in One Hour
“This latest integration with Pudgy Penguins empowers users to truly own their digital identities and control their virtual experience.”
Carter believes that using .pudgy domains frees users from Web2 constraints, giving them greater sovereignty over their digital identities and shaping their virtual reality.
These domains act as unique identifiers, allowing users to showcase their individuality within the Pudgy Penguins community.
The integration goes beyond simple usernames, representing users’ digital selves in the virtual world.
Unlike conventional logins, .pudgy domains facilitate long-term management of digital identities, providing access to exclusive chats, events, and activities.
This enriches user engagement and makes interactions more meaningful.
Pudgy Penguins CEO Luca Netz also emphasized the importance of this development, stating that it offers “a more unified experience” through the integration with Unstoppable Domains. Netz explained:
“Being able to login with their .pudgy domains provides a uniquely Web3 experience, which is perfect because, in the virtual world, individuality and ownership are hugely important.”
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Central banks globally are increasingly exploring blockchain technology, with the European Central Bank (ECB) being a recent participant.
The ECB recently completed a blockchain experiment for its central bank digital currency (CBDC) with Zama, as announced by Nigel Smart, the firm’s chief academic officer.
During a panel at FHE Summit 2024, Smart stated, “We did one with the European Central Bank on liquidity matching. […] And a number of applications on CBDCs have been actually to remove the central bank out of the equation and replace it with a blockchain.”
Liquidity matching, the process of aligning a bank’s inflows and assets with its outflows and liabilities to ensure sufficient funds to meet obligations, is crucial.
However, Smart highlighted that liquidity matching is challenging for multiple parties transacting on the same blockchain network.
He elaborated, “Then the issue is if you have multiple entities on the blockchain and it’s all encrypted stuff, how do you do liquidity matching? That’s a really big issue.”
Smart, a prominent cryptographer, is developing fully homomorphic encryption (FHE) solutions for blockchain and artificial intelligence at Zama.
FHE allows computations on encrypted data without decrypting it, enhancing data security.
READ MORE: Bitcoin Poised for 300% Gains by 2026 Despite Current Downturn, Analyst Predicts
In early March, Zama secured a $73 million Series A funding round to advance the firm’s FHE stack and provide developers with more tools for data privacy solutions.
Multiparty computation (MPC), which enables multiple parties to compute shared data without revealing the actual data, also shows promise.
Smart noted that the MPC-based experiment with the ECB was successful, but scaling to support the entire European economy will require more time.
He said, “We did an experiment with the European Central Bank where we essentially ran the Finnish economy through an MPC engine, and we could keep track. We could actually keep up with Finland, which is good, but not on the European scale yet.”
Smart added that the financial sector is increasingly exploring MPC technology, which could lead to more use cases for large financial institutions.
This growing interest in advanced cryptographic solutions signifies the financial sector’s drive towards greater security and efficiency through technology.
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In a long-awaited move, Mt. Gox, the infamous Bitcoin exchange that collapsed in 2014, has finally started repaying its creditors.
This resolution to one of crypto’s most notorious scandals is not just closing a chapter to one of Bitcoin’s darkest hours but is also actively shaping the asset’s market dynamics in real time.
On July 5, Nobuaki Kobayashi, the rehabilitation trustee for Mt. Gox, announced the commencement of debt repayments to creditors in Bitcoin and Bitcoin Cash.
The repayments are facilitated through a complex network of exchanges, with each entity playing a crucial role in distributing the funds.
The scale of the repayments is staggering. Approximately 47,288 BTC, valued at roughly $2.7 billion, has already been moved from Mt. Gox-associated wallets to new addresses.
This is just the beginning, with a total of around 140,000 BTC — worth $9 billion at current prices — set to be returned to the victims in the coming weeks.
The sheer magnitude of the transfers has put the entire crypto market on edge, with traders and investors closely monitoring every movement.
On paper, the repayment process seems to be quite a logistical feat, with five exchanges — Bitbank, SBI VC Trade, Bitstamp, Kraken, and BitGo — tasked with distributing the funds. Each exchange has its own timeline for processing the payouts, ranging from immediate distribution to a 90-day window.
Both Japanese exchanges — Bitbank and SBI VC Trade — have already completed their distributions, processing the payments within hours of receiving the funds.
This swift action relieved creditors but also contributed to the ongoing market volatility as some recipients quickly sold their newly acquired Bitcoin.
Bitstamp also pledged to expedite its distributions, with exchange officials stating that it is committed to compensating investors earlier than its given 60-day window.
The immediate impact on Bitcoin’s price was swift. As news of the repayments spread, Bitcoin plummeted from approximately $62,000 to as low as $53,600 on July 4 — a 10% drop in a matter of hours.
This sharp decline triggered a wave of liquidations across the crypto market, with over $425 million in leveraged positions being wiped out.
The volatility wasn’t limited to Bitcoin; the entire cryptocurrency market felt the tremors, with many altcoins experiencing double-digit percentage drops.
However, the market’s reaction wasn’t solely due to Mt. Gox. Coinciding with these repayments was news of the German government offloading hundreds of millions of dollars worth of Bitcoin seized from criminal activities.
On July 8, a German government-labeled crypto wallet sold around $900 million worth of Bitcoin, transferring roughly 16,309 BTC in multiple transactions to various external addresses, marking its largest single-day Bitcoin liquidation.
Some of the transfers were directed to crypto exchanges such as Bitstamp, Coinbase, and Kraken, as well as market makers such as Flow Traders and Cumberland DRW.
With the German government now around halfway through its selling spree, reducing its holdings to 23,788 BTC from 50,000 BTC, traders expect Bitcoin prices to stabilize and potentially climb again once the immediate selling pressure eases.
Founded in 2010 by Jed McCaleb and later sold to Mark Karpelès in 2011, Mt. Gox quickly became the world’s largest Bitcoin exchange, handling a staggering 70% of all global BTC transactions at its peak.
This dominance made it the go-to platform for early Bitcoin adopters and played a crucial role in establishing Bitcoin’s legitimacy in its formative years.
However, in February 2014, Mt. Gox suspended all Bitcoin withdrawals, citing technical issues.
The truth soon emerged that the exchange had lost approximately 850,000 BTC in a long-standing security breach.
READ MORE: Singapore High Court Orders Multichain to Compensate Fantom Foundation $2.187M for Hack Losses
This loss, valued at roughly $450 million at the time, would be worth over $48 billion at today’s prices.
The event sent shockwaves through the crypto community and severely damaged Bitcoin’s reputation, setting back mainstream adoption efforts by years.
Mt. Gox filed for bankruptcy, leaving thousands of customers in limbo.
In 2018, the case shifted to civil rehabilitation, offering a glimmer of hope to creditors.
In 2019, Karpeles was convicted of falsifying financial records, adding yet another layer to the complex legal saga.
The commencement of Mt. Gox repayments has injected a new level of volatility into an already dynamic crypto market.
However, as the dust settles, a more nuanced picture seems to be emerging.
For instance, Bitcoin has shown immense resilience since July 5, rebounding to around $59,000 after its initial plunge to $53,600.
The market’s ability to absorb such a large influx of supply speaks to the increased liquidity and maturity of the cryptocurrency ecosystem compared to its state during Mt. Gox’s collapse.
Some analysts believe that much of this selling pressure was already “priced in” before the event itself, thus explaining the relatively quick price recovery.
Furthermore, some large investors viewed the price dip as a buying opportunity, as evidenced by increased inflows into US-based spot Bitcoin exchange-traded funds (ETFs).
This institutional support has counterbalanced the selling pressure while simultaneously demonstrating BTC’s acceptance within the financial mainstream.
The broader crypto market also shows signs of decoupling from Bitcoin’s movements. Ether, for instance, has stayed above the $3,000 mark despite BTC market volatility.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Technology giants Microsoft and Apple have decided not to join the board of artificial intelligence firm OpenAI due to increasing regulatory scrutiny.
On July 10, Bloomberg reported that Microsoft had sent a letter to OpenAI announcing its decision to withdraw from the board.
This move came about a year after Microsoft made a substantial $13 billion investment in OpenAI in April 2023.
Following Microsoft’s departure, OpenAI will have no board observers.
In its memo to OpenAI, Microsoft stated, “Over the past eight months we have witnessed significant progress from the newly formed board and are confident in the company’s direction,” adding, “We no longer believe our limited role as an observer is necessary.”
Contrary to earlier reports that Apple would also get an observer role on OpenAI’s board as part of a landmark agreement announced in June, OpenAI confirmed it would have no board observers after Microsoft’s exit.
OpenAI expressed gratitude towards Microsoft, stating, “We’re grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership.”
READ MORE: Bitcoin Poised for 300% Gains by 2026 Despite Current Downturn, Analyst Predicts
Cointelegraph reached out to both Microsoft and OpenAI for comments regarding the board membership but did not receive a response by the time of publication.
This news comes amid growing regulatory pressure on Big Tech firms over their potential impact on AI and industry dominance.
In June, European Union regulators announced that OpenAI could face an antitrust investigation over its partnership with Microsoft.
EU competition chief Margrethe Vestager noted that local regulators would seek additional third-party views and survey firms like Microsoft, Google, Meta, and ByteDance’s TikTok regarding their AI partnerships.
Previously, the European Commission stated that Microsoft could be fined up to 1% of its annual revenue in the EU if it fails to respond to requests for information related to its Bing search engine and associated generative AI services.
In April 2024, Apple and OpenAI were reportedly in active discussions about integrating generative AI technologies on iOS.
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The term artificial intelligence (AI) has been part of mainstream parlance since late 2022. However, whenever discussions surrounding this revolutionary technology surface, the focus seems to primarily be centered on aspects like its use of cutting-edge algorithms and the powerful hardware driving these systems.
However, an equally crucial component that often flies under the radar is the data sets that fuel these AI models. Over the past year, it’s become increasingly clear that the quality and quantity of information being fed to these complex systems are paramount to the success of AI systems. But who collects this data, and how can we ensure it is diverse, accurate, and ethically sourced?
Traditionally, AI data collection has been the domain of experts and specialized teams. This approach, while undoubtedly producing high-quality datasets, often leads to bottlenecks in the AI training process, especially when it comes to the introduction of individual biases. Therefore, it’s not just about having enough data; it’s about having the right data that represents a wide range of perspectives and use cases.
In this context, discussions pertaining to ‘decentralized AI infrastructures’ are beginning to gain a lot of traction recently, especially since they offer a legitimate solution to democratize AI data collection and accelerate innovation in the field. To this point, NeurochainAI, a ready-to-use AI infrastructure provider, leverages a community-powered module called “AI Mining,” allowing individuals to participate in various data collection and validation tasks — effectively turning its backers into a vast, diverse data collection network.
Simplifying the Complex
From the outside looking in, the genius of decentralized AI data collection systems lies in their ability to break down complex tasks into manageable, bite-sized pieces that don’t require specialized knowledge. This approach, often referred to as ‘microwork,’ allows virtually anyone with basic training to contribute to AI development.
NeurochainAI’s ‘Data Launchpad’ embodies this approach such that AI developers or companies start by submitting data collection or validation tasks. These tasks are then meticulously broken down into instructions that anyone can follow. Community members, referred to as “AI Miners,” can select tasks that interest them and complete them using their consumer hardware within their respective DePINs (Decentralized Physical Infrastructure Networks) — i.e. localized digital ecosystems leveraging consumer hardware to perform computational tasks, thus distributing the workload across a network of devices.
The collected data is subsequently validated by other community members, ensuring both accuracy and quality. Contributors are duly rewarded for their efforts, fostering a mutually beneficial scenario for both AI developers and the community.
Additionally, NeurochainAI’s model addresses one of AI’s most pressing challenges: its monumental energy consumption. Traditional AI data centers consume vast amounts of power, with some estimates suggesting that by 2027, they could consume as much electricity as the entire Netherlands.
Not only that, a study by the International Energy Agency estimates that these data centers could see their power use increase to between 620 and 1,050 TWh by 2026 — equivalent to the energy demands of Sweden and Germany, respectively. NeurochainAI’s approach distributes this computational load, potentially reducing the overall energy footprint of AI development.
Unlocking New Frontiers
As things stand, the implications of democratized AI data collection seem to be quite far-reaching and exciting. By removing some of the bottlenecks associated with “expert-only data collection” practices, it is possible that we could witness an explosion of AI applications across fields that have been historically underserved due to a lack of relevant data sets.
For instance, one can imagine AI models that can understand and generate high-quality information in rare languages (thanks to data collected by native speakers around the world). Similarly, novel medical AI use cases can also emerge, such as those that can recognize symptoms of rare diseases, trained on data contributed by patients and healthcare workers globally. The possibilities are literally endless!
Last but not least, this democratized approach could lead to more ethical and transparent AI development. When data collection is a community effort, there’s inherently more oversight and diversity in the process.
Therefore, as we look toward an AI-driven future, platforms like NeurochainAI are not just changing how we gather information for AI data training; they’re reshaping the landscape surrounding this domain altogether.
The blockchain gaming ecosystem has slowly faded from the spotlight in 2024, as other ecosystems, such as artificial intelligence and memecoins, rise to prominence. Regardless, Web 3 gaming remains a powerhouse in blockchain, with the total market capitalization standing at $15 billion, as of writing. The constant developments across the space majorly influence this – as the once simplistic one-click games become more playable and interactive and can now fairly compete with their Web 2 counterparts.
Games like Axie Infinity have pushed Web 3 gaming to greater heights, setting the standard on what play-to-earn (P2E) game models should be. As such, new games entering the blockchain gaming realm need to be of a very high standard to capture the attention of players, investors and partners. One such game, My Pet Hooligan, built on Unreal Engine 5, is doing exactly that with its enhanced gaming model that is unique for a blockchain game.
In contrast to previous Web 3 games, My Pet Hooligan introduces cutting-edge technology, artificial intelligence, AAA-quality gaming models, and an exciting realm that offers better asset rewards. The question that arises is how well My Pet Hooligan will fare in a stacked Web 3 gaming market.
In this piece, we delve into the technology, gameplay, community, and potential of My Pet Hooligan, comparing it to the best of Web 3 games – Axie Infinity.
Axie Infinity: The Rise of Playable Web 3 Games
Axie Infinity is a Web 3-based gaming ecosystem that combines the aspects of traditional gaming, crypto, NFTs, and blockchain. Set in a metaverse named Lunacia, Axie Infinity allows players to buy, breed and battle creatures (Axies) for an opportunity to earn real money rewards. The game utilizes an in-game cryptocurrency called AXS, which allows players to purchase and trade Axies and use them in battles to earn rewards.
The play-to-earn game was launched in 2018 by Trung Nguyen, Aleksander Leonard Larsen, and Jeffrey Zirlin.
The associated assets and transactions are conducted via the Ronin sidechain, a Layer-2 EVM-compatible blockchain built to scale Axie Infinity. Ronin is home to most digital assets used in the Axie Infinity ecosystem, and the project team is expanding the network to allow third-party game development studios to launch additional games.
Strengths
- Marketplace: Axie Infinity includes its marketplace that allows players to directly purchase and sell items, as well as collectible digital creatures.
- Unique Gameplay: Players in the game can buy, earn and breed their digital creatures to advance in the game.
- Early-to-market: One of the biggest strengths for Axie Infinity is launching in 2018, years before the GameFi craze during the pandemic years.
- Vibrant community: The game has attracted nearly 1 million community members across its social media pages – X (formerly Twitter), Discord, and Telegram.
Weaknesses
- Sustainability: As is with early blockchain games, Axie Infinity struggled with inflation as more players joined the game, setting back the price of its $AXS token.
- Complexity: The game requires prior knowledge in the blockchain space, which provides a barrier for new players, who require a significant amount of time and effort to understand fully.
- Cost barriers: Axie Infinity requires players to have a starting capital to buy Axies. Some of these digital assets can cost hundreds of dollars.
Technology & Market Performance
Axie Infinity is a P2E game that uses a delegated proof of stake (DPoS) consensus mechanism, with its assets and transactions housed on the Ronin sidechain. Ronin is a layer 2 EVM-compatible blockchain aiming to scale Axie Infinity and conduct faster transactions with minimized fees. The network is secured by 22 validators, 10 of which are operated by community members with the highest total combined RON stake. The remaining 12 are classified as Governing Validators and are operated by parties selected by the project team.
The game’s native token, $AXS launched in April 2018 and later was issued via a token sale on the Binance Launchpad in November 2020. Over the past year, the $AXS token has slightly dipped in value – to trade at $5.32, representing a 10% dip since July last year.
My Pet Hooligan: Building an AI-based Web 3 Gaming Ecosystem
My Pet Hooligan is the flagship interactive entertainment experience from AMGI Studios. It is a free-to-play Web 3 game that allows multiplayer competitions and socializing. The game involves players creating characters to battle against the evil overlord Metazuckbot, within the Hooliland City metaverse. Players can also fight against each other, destroy buildings and other artefacts, skate like a pro skater, hang out with friends and much more. The game developers confirmed that My Pet Hooligan will be a cross-platform game spanning PC, console and mobile.
Insert Video: https://youtu.be/dAqHfm3yhQo
Crucially, the game offers gamers several gameplay modes that cater to unique player preferences. The three major player modes include:
- Coinpocalypse: This is a treasure hunt game mode that allows players to collect coins from different players and within the game.
- Anarchy: This is a PVP game mode that allows players to fight and compete against each other in a designated zone in an elimination battle.
- Hang Out: For players who do not want to constantly battle, this mode provides a setting whereby players can explore the city at their leisure, engage in activities like skateboarding, or just chill and watch content in the game’s movie theatre.
Strengths
- AI Innovation: My Pet Hooligan ranks as the first-of-its-kind blockchain game that implements AI technology to enhance the gameplay.
- AI Entertainment: The game also offers an in-game AI entertainment studio that allows users to stream and create content and interact as their in-game avatars.
- Team strength: One of the most important factors driving My Pet Hooligan’s growth is the strong team from AGMI Studio that has worked on popular gaming titles such as Toy Story.
- Next-generation gaming: The game implements next-generation technologies such as AI to help bridge the gap between traditional gaming and Web 3 gaming, building exciting games for all players.
AMGI Studios was co-founded by Roger Paglia, Colin Brady, and Luke Paglia.
Weaknesses
The only weakness of My Pet Hooligan is that the game is still relatively young in the Web 3 gaming space and hence could be susceptible to a few bugs. Nonetheless, the team works round the clock to ensure the game is running smoothly by removing any critical bugs.
Technology and Market Performance
My Pet Hooligan is built on the KARRAT Protocol, a decentralized gaming infrastructure layer supported by its native $KARRAT token. The protocol aims to revolutionize Web 3 gaming and entertainment by integrating artificial intelligence technologies into its games.
By integrating AI, My Pet Hooligan offers players an immersive and exciting experience across Hooliland City, interacting with other gamers and earning rewards in the process. The addition of AI-driven non-playable characters (NPCs) allows gamers to build real-time animation that establishes a living, and breathing world that reacts to player interactions.
The KARRAT Protocol not only provides gaming products but also allows game developers to build products that support other industries including retail, telecom, education, and other industries. The protocol provides tools that support the creation and adoption of these industries within their games. The decentralized communities decide how these are integrated and progressed.
My Pet Hooligan leverages the $KARRAT token within its ecosystem. The $KARRAT token launched in 2024, and despite the recent downturn in crypto market fortunes has performed relatively well. The token currently trades at $0.61, an 8% growth in the past 24 hours, having reached a peak price of $1.18 in June 2024.
Futuristic Overview & Potential
My Pet Hooligan development team has a solid roadmap for the coming months, showing its potential to take over Web 3 gaming. The game has introduced AI-integrated NPC characters within its metaverse, actively contributing to the immersive nature of the game experience. Advanced AI NPCs represent the next phase in the evolution of non-player characters. According to its roadmap, the game will also include AI-driven game characters training that will be modeled on organic player behaviour.
Additionally, the game also includes staking features for NFTs, rewarding stakers with $KARRAT tokens.
Table comparing features of Axie Infinity and My Pet Hooligan
| Features | Axie Infinity | My Pet Hooligan |
| Barrier to entry | High due to entry costs | Low – Free-to-Play |
| Blockchain | Ronin | Ethereum |
| Gaming engine | Unity | Unreal 5 |
| Community | Over 1 million community members | Slightly less than 300K members |
| Tokenomics (Total supply) | 270,000,000 $AXS tokens | 1,000,000,000 $KARRAT |
| Economic Maturity | High | Medium (Growing) |
Final Words
The blockchain gaming ecosystem has seen a massive shift in attention over the past two years, with investors and crypto aficionados moving towards new technologies in the space. Nonetheless, the ecosystem continues to thrive in development and innovation. Axie Infinity has laid a strong foundation for play-to-earn models, demonstrating both the potential and challenges of blockchain gaming. On the other hand, My Pet Hooligan is pushing the boundaries with innovative AI integration and a focus on immersive, next-generation gaming experiences.
As the gaming landscape evolves, new technologies employed by projects such as My Pet Hooligan will be important in providing compelling, accessible gameplay that can compete with traditional Web 2 games.