Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
BTC reached a two-week low of $37,300 on Monday morning, amid rising tensions in eastern Europe, before stabilizing at around $39,000. However, analysts are doubtful this rebound will last, as Russia has written off any chance of a dialogue between president Vladimir Putin and US president Joe Biden, and Ukraine has reported shelling from Russia-backed separatists. Meanwhile, ETH has dropped by 6.8% in the past week to barely above $2,700. In contrast, Metaverse- and gaming-related tokens are doing better; AXS has risen by 5% in the past 24 hours, while Decentraland Games has seen a 3% increase.
11 people in India have been arrested in connection with a crypto scam that has cheated around 2,000 investors of $5.4 million. The main accused, Nishid Wasnik, along with his wife Pragati and two other associates had been in hiding since Mar 2021 before their arrest last Saturday. Police said Wasnik would use his flashy lifestyle to lure investors to a firm he claimed was dealing in ETH, and “manipulated” the firm’s website to show a steady rise in investment value while “transferring money into his accounts fraudulently between 2017 and 2021”. All 11 arrested have been charged under IPC, the Maharashtra Protection of Interest of Depositors Act, and the Information Technology Act provisions by Yashodhara Nagar police.
Over £4 million ($5.43 million) in crypto has been returned to 23 victims of a fake trading scam, after Greater Manchester Police (GMP) seized ETH and other cryptocurrencies worth more than £16 million ($21.7 million) in July last year. A man and woman who were arrested on suspicion of money laundering and fraud were later released under investigation. GMP said it was working on returning the remaining seized crypto to the other 127 victims of the scam, who are based in the UK, US, Europe, China and APAC. They had deposited money into what they believed was an online savings and trading service, after which the scammers shut down the website and transferred the funds to their own accounts.
A new proof-of-concept DAO called FriesDAO aims to democratize access to the fast food industry. FriesDAO advisors Brett Beller and Bill Lee intend to used the DAO to acquire and scale fast food franchises like Burger King, Popeye’s and Taco Bell by inviting FRIES token holders to run a decentralized network of Quick Service Restaurants (QSR). Lee said that for legal reasons, FriesDAO did not directly own any of the stores. Instead, the governance model allows FriesDAO members to decide how to spend treasury funds and which stores to acquire. Beller and Lee also plan to provide NFT membership cards with perks like free food or discounts at FriesDAO network stores. The DAO has so far raised $5.4 million, and former Domino’s president Kory Spiroff recently joined its advisory board.
Just weeks after the Singapore government cracked down on crypto marketing in the country, state investment firm Temasek has contributed to a funding round valuing crypto trading platform Amber Group at $3 billion. Other shareholders who participated in the $200 million financing include Sequoia China, Pantera Capital and Tiger Global Management; Temasek was the only new investor in this latest funding round. Amber Group will use the funds for hiring in Europe and the Americas, as well as to expand coverage of a mobile app it launched internationally in 2021.
Show me the money
According to data from Huobi Global, BTC fell to its current location near 37,000, while ETH also saw a dip to near 2,580, and daily charts show signs of a downward trend for both. In terms of contracts, Huobi Futures data showed stable open interest (OI) in BTC futures and increased OI in ETH futures, with a significant decrease in volume for the former and a slight decrease for the former amid a relatively inactive contract market.