Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
Brad Sherman, US representative for California’s 30th congressional district, will be introducing a bill in the House to crack down on US businesses handling crypto transactions for Russian banks and individuals. The bill will accompany Senator Elizabeth Warren’s legislation, which will give the Biden administration “explicit authority” to require crypto exchanges subject to US law to “stop facilitating transactions with Russian-based crypto wallets”. Sherman said he looked forward to ensuring the administration had the “ability to tell crypto exchanges” doing business in the US that they couldn’t “do business with Russia-based crypto wallets until this crisis is over”.
The Central Bank of Russia (CBR) seems to have done a 180 less than two weeks after doubling down on its suggestion to ban crypto in Russia, adding Sberbank, the country’s largest lender, to its register of information system operators for digital financial assets. In a press release published yesterday, CBR said, “Inclusion in the registry allows companies to issue digital financial assets and exchange them between users within their platforms.” Legal entities on Sberbank can soon issue digital financial statements certifying monetary claims, acquire digital assets allocated in Sberbank’s system and conduct crypto transactions.
The European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA) and European Securities and Markets Authority (ESMA) have issued a joint warning on crypto assets, saying they are “not suited for most retail consumers as an investment or as a means of payment or exchange”. The 3 European Supervisory Authorities (ESAs) added that “many crypto assets are highly risky and speculative” and that consumers “face the very real possibility of losing all their invested money if they buy these assets”. They further warned of the “risks of misleading advertisements” and “lack of recourse or protection available” to consumers, as crypto and its related products and services “typically fall outside existing protection under current EU financial services rules”.
Within its first 2 hours of trading, ApeCoin, the token affiliated with the Bored Ape Yacht Club (BAYC) NFT collection, was already down by approximately 80%. ApeCoin was announced yesterday and airdropped earlier today, only to have holders swiftly selling it and causing its price to drop from a high of $39.40 to a low of $6.48. The token’s price is now stable at $8.90 and its total market cap a whopping $2.4 billion, making it the 49th largest token at the moment. BAYC NFT owners were each airdropped 10,000 ApeCoins, with 15% of the total supply available this morning. Of the remaining supply, 47% will be sent to the Ape DAO treasury, 16% to parent company Yuga Labs, 14% to launch contributors and 8% to BAYC founders.
NFT project Rare Bears has been attacked, with the hacker stealing almost $800,000 in NFTs. The attacker made off with 179 NFTs, including Rare Bears and other NFTs like CloneX, Azuki and 6 LAND tokens, most of which have been sold. This netted the hacker 286 ETH (worth over $795,500), which have largely been put through crypto mixer Tornado Cash to obfuscate the funding source. A full security audit of the Rare Bears Discord has found that the head of the Discord account was compromised, after which the hacker used the account to ban other members or remove their roles from the server, and invited a bot to lock all servers on the channel. This made it impossible for anyone to delete or alert others to the phishing link. Rare Bears said it was able to regain control of the server and remove the compromised account, transferring ownership to a new one and increasing the server’s security.
The Australian Competition and Consumer Commission (ACCC) is taking Meta Platforms, Inc. (formerly Facebook) to Federal Court for allegedly engaging in “false, misleading or deceptive conduct” by publishing fraudulent crypto ads featuring prominent Aussie personalities like entrepreneur Dick Smith, TV host David Koch and former NSW premier Mike Baird. Users have reportedly lost hundreds of thousands of dollars to long-running scams tied to such ads, with a “shocking instance” of one user being defrauded of over $650,000. The ACCC believes Meta “aided and abetted” fraudulent advertisers and as such, is arguing that the company has breached either Australian Consumer Law (ACL) or the Australian Securities and Investments Commission (ASIC) Act, and is seeking “declarations, injunctions, penalties, costs and other orders”.
Show me the money
According to data from Huobi Global, BTC continued to trade sideways last night, while ETH continued to rise overnight. Daily charts show signs of an upward trend for ETH, though it saw a slight drop in the morning. In terms of contracts, Huobi Futures data show stable open interest (OI) in both BTC and ETH futures, with slightly decreased volume amid a relatively inactive contract market.
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