FreeCryptoCurrency.Me

Quick Take

• Generative art NFTs have defied the downward spiral of the broader NFT market in recent months.
• Art Blocks full curated sets have become the holy grail among high-end generative art collectors who have scrambled to complete their sets recently.
• Fxhash has become a major pillar for generative art NFTs and has uncoupled even more distinctly from the overall NFT market than Art Blocks.

This research piece is available exclusively to
members of The Block Research.
You can continue reading
this Research content on The Block Research.

Binance Labs, the venture arm of the Binance crypto exchange, has made a strategic investment in hardware wallet maker Ngrave.

The investment is part of Ngrave’s series A funding round that Binance Labs will be leading, an Ngrave spokesperson said. The amount of funding wasn’t disclosed. 

Ngrave makes a hardware wallet called Zero, which aims to compete with larger providers like Ledger and Trezor. The devices, which secure private keys of crypto assets inside hardware in an attempt to guard users against hacks, can offer what some perceive to be better security than web-based private wallets, including MetaMask and TrustWallet.

Binance Labs said the company is eager to capitalize on the emerging hardware wallet sector and partner with Ngrave, it said in a statement. 

The investment comes at a time when hardware wallets are gaining traction among cryptocurrency investors who may want to self custody their assets in a secure manner in the wake of the collapse of centralized exchange FTX earlier this month.

A spokesperson from Trezor, one of the top two hardware wallet manufacturers, told The Block that demand for its product jumped by more than 300% in mid-November. A similar trend was reported by hardware wallet leader Ledger, which told TechCrunch it had the company’s biggest sales week in November as well.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

FTX Japan plans to resume customer withdrawals by the end of the year, according to Japanese public broadcaster NHK.

Withdrawals cannot be resumed immediately as the exchange uses the same suspended payment system as its parent company FTX, said the report, citing an unnamed executive. It is now developing its own system to allow customers to withdraw assets.

The country’s Financial Services Agency ordered FTX Japan to suspend operations on Nov. 10. It held 19.6 billion yen ($138 million) in deposits at the time it ceased operations.

FTX, which filed for bankruptcy protection earlier this month, itself owes approximately $3.1 billion to creditors. As a result, it may may sell off subsidiaries including FTX Japan, NHK reported. 

FTX Japan isn’t FTX’s only subsidiary facing trouble in the country. It also owns crypto exchange Liquid, which announced the suspension of withdrawals on its Liquid Global Platform on Nov. 15. 

On Nov. 20 it also suspended trading on its platform on instruction of the legal team acting for FTX.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Uniswap, the largest Ethereum decentralized exchange, published a new privacy policy to provide transparency on the data it collects. The privacy policy states that the DEX collects certain on-chain and off-chain data connected to users’ crypto wallets.

It clarified that publicly-available on-chain data is analyzed to help make informed decisions. As far as off-chain data goes, Uniswap claimed it does not gather sensitive personal data like names, emails or IP addresses.  However, other off-chain web identifiers related to users are still scraped, the exchange noted.

“Our first priority is to protect user data and privacy, but we do want to make data-driven decisions that improve user experience. That includes public on-chain data and limited off-chain data like device type, browser version, etc.,” Uniswap said. 

The privacy policy notes that the decentralized exchange and other “third-party services providers” may gather data related to users’ mobile deviceID, cookies, information from localStorage, operating system, device or browser language. Such information can be used to remember which tokens users have imported, as well as learn their preferences and interactions, Uniswap said.

Furthermore, the decentralized exchange confirmed that it screens user wallets with the help of certain blockchain analytics providers to help identify illicit activity. This comes a few months after the exchange — working with blockchain analytics firm TRM Labs — blocked 253 crypto addresses tied to mixing service Tornado Cash.

“When you connect your non-custodial blockchain wallet to the Services, we collect and log your publicly-available blockchain address to learn more about your use of the Services and to screen your wallet for any prior illicit activity,” the privacy policy stated.

Uniswap is the highest-volume decentralized exchange on the Ethereum blockchain. So far in November, Uniswap has accounted for roughly 60% of Ethereum’s on-chain volume, according to data from The Block.

Uniswap Labs, the developers of Uniswap, raised $165 million in a Series B round at a $1.6 billion valuation last month.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The European Union should hold off on more crypto regulation following the collapse of exchange giant FTX, European Parliament member Stefan Berger said on Twitter. The lead negotiator on the Markets in Crypto Assets (MiCA) file added that regulators should wait until new EU laws about crypto come into force.

“The FTX disaster is the result of missing regulation,” MEP Berger originally tweeted in German, adding: “Governments should not excessively over-regulate now, but follow MiCA. With global MiCA rules, you would have internal control mechanisms, separation of customer assets/funds, proof of good management, white paper.”

The center-right MEP previously told The Block that “MiCA is the bulwark against Lehman Brothers moments such as the FTX case.” FTX, previously valued at $32 billion, saw a dramatic downward spiral throughout the month of November. The exchange filed for bankruptcy protection on Nov. 11. The filing cited a “complete failure of corporate controls.”

Many EU policymakers and experts agree that MiCA’s rules on regulating crypto asset service providers would have mitigated the impact of the meltdown. However, other politicians are more reserved about how much MiCA could have solved since the meltdown was a result of a broader linkage of financial bodies, and because FTX is not registered in the EU. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The individual or entity behind suspicious withdrawals from embattled crypto exchange FTX — commonly called the “FTX Drainer” — has continued to swap ether for bitcoin. It has now moved $72 million worth of value across both blockchains via the Ren BTC Gateway, a crypto bridge used to move transfer tokens from one network to another.

The main FTX drainer wallet held 250,000 ether ($302 million at the time) on Saturday after consolidating ether holdings from other wallets. Following this consolidation of funds, the alleged hacker began swapping ether for bitcoin. This process usually involved sending a batch of ether to a new wallet before swapping for bitcoin, which was done by trading ether for renBTC, a tokenized version of bitcoin issued by Ren. After the swap, the hacker bridges the renBTC to the Bitcoin blockchain using Ren’s crypto bridge service.

The individual or entity in question swapped 20,000 ETH ($22.4 million) for 1,023 renBTC ($16.3 million) on Monday. This follows the 50,000 ETH exchanged for 3,517 renBTC on Sunday. Blockchain security outfit PeckShield has been monitoring these transactions and on-chain data shows the hacker has bridged all 4,540 renBTC ($72.6 million) to Bitcoin, as of the time of publishing. PeckShield also tracked a Bitcoin wallet holding some of the bridged funds — this wallet currently holds 2,444 BTC ($39.4 million).

These fund movements have caused the FTX drainer to drop slightly down the list of addresses holding the most ether. On Saturday, the hacker was the 27th-largest ether holder but now has fallen to the 36th position.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Decentralized finance protocols do not yet provide an effective way to manage risk, the Bank of England deputy governor warned on Monday. 

The claim by DeFi advocates that a code can manage risk, rather than intermediaries, is unproven, Jon Cunliffe told an audience at the Warwick Business School. ”From the standpoint of a financial stability authority and a financial regulator, I have yet to be convinced that the risks inherent in finance can be effectively managed in this way,” he said.

Cunliffe compared DeFi protocols to driverless cars, saying they were only as good as the rules, programs and sensors which organize their operations. 

”Moreover, it is not clear the extent to which these platforms are truly decentralized,” he added. ”Behind these protocols typically sit firms and stakeholders who derive revenue from their operations. Moreover, it is often unclear who, in practice, controls the governance of the protocols.”

The Bank of England will hold a consultation next year on the regulatory framework around a digital asset payment system, including the use of services, such as wallets, Cunliffe said.

The central bank and the Financial Conduct Authority will have additional powers to oversee stablecoins and other crypto-related technologies, once the so-called Financial Services and Markets Bill passes through parliament and becomes law. 

The UK Treasury will also do a consultation on how to extend investor protection, market integrity and other regulatory frameworks that cover the promotion and trading of financial products to activities and entities involving crypto assets, Cunliffe said.

At the moment, only anti-money laundering legislation applies to those activities, he added.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Episode 115 of Season 4 of The Scoop was recorded live with The Block’s Frank Chaparro, CoinShares CSO Meltem Demirors, and Aglaé Ventures’ Managing Partner Vanessa Grellet.

Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests can be sent to podcast@theblockcrypto.com.

In this venture capital-focused segment of The Scoop, CoinShare Chief Strategy Officer Meltem Demirors and Aglaé Ventures Managing Partner Vanessa Grellet explain which crypto verticals are oversaturated, and examine how market dynamics have changed since last year.

Although the crypto industry has experienced many boom-and-bust cycles before, Demirors says “2021 will be one of the worst years for crypto venture returns.”

Demirors explains that one of the reasons for this is a mismatch in block space supply and demand that was created during the proliferation of competing Layer 1 blockchains last year:

“We’re seeing that now with all of these overfunded L1s — there’s just more block space than there is demand for block space.”

Instead of mimicking existing successful projects, Grellet suggests that up-and-coming crypto projects should identify how they plan to differentiate themselves early on:

“The question is, if you are a new platform coming into space or a new marketplace, what is distinctive that you bring that will allow for the end user to come to your platform rather than going to the existing incumbents?”

During this episode Chaparro, Demirors, and Grellet also discuss:

• The Ethereum Foundation’s Devcon in Bogota
• How macro events have impacted valuations
• The financialization of NFTs

This episode is brought to you by our sponsors Tron, Ledn, Athletic Greens
About Tron
TRON is dedicated to accelerating the decentralization of the internet via blockchain technology and decentralized applications (dApps). Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized web3 services boasting over 100 million monthly active users. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. | TRONDAO | Twitter | Discord |

About Athletic Greens
Build a Foundation for Better Health. It’s time to reclaim your health and arm your immune system with convenient, daily nutrition! Fill nutrient gaps, promote gut health, and support whole-body vitality with AG1. One daily serving delivers a potent blend of 9 health products—a multivitamin, minerals, probiotics, adaptogens and more—working together to help you feel like your healthiest self. For more information visit AthleticGreens.com/Scoop

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Billionaire investor and hedge fund manager Bill Ackman is bullish on cryptocurrency, even after the collapse of one of the world’s largest crypto exchanges.

“I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to believe that crypto can enable the formation of useful businesses and technologies that heretofore could not be created,” Ackman said Sunday in a Twitter thread.

Ackman, the founder and CEO of Pershing Square Capital Management, said he believes crypto “has the potential to greatly benefit society, as long as the industry wipes out bad actors.

His praise for the technology comes after crypto exchange FTX filed for bankruptcy protection. The troubled firm was once valued at $32 billion and has sent fears of contagion through the industry.

“I think crypto is here to stay and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy,” Ackman said. “All legitimate participants in the crypto ecosystem should therefore be highly incentivized to expose and eliminate fraudulent actors as they greatly increase the risk of regulatory intervention that will set back the positive potential impact of crypto for generations.”

Ackman highlights Helium

In his thread, Ackman pointed to Helium, a blockchain-based network, as a positive example for crypto.

“@helium created a global Wi-Fi network used by @limebike and others to track devices globally as well as for other uses which benefit by access to global Wi-Fi networks,” Ackman said in a tweet.

Ackman invests in several crypto projects, venture capital funds and companies that reduce fraud in crypto, which he claims represent less than 2% of his assets.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Crypto markets and equities tied to the industry felt the pressure last week as the situation around crypto exchange FTX continued to unravel.

Bitcoin was changing hands at around $16,550 at 2:15 p.m. ET Sunday, representing a decline of about 0.8%. Ether fared somewhat more poorly, losing about 3% in the past day. ETH was trading at roughly $1,170 at 2:15 p.m.

BTCUSD Chart by TradingView

Bitcoin is down about 1% over the past seven days while ether is down roughly 6%.

Other cryptocurrencies were trading in a similar range Sunday afternoon, according to data from CoinGecko. Cardano (ADA) was down 3.1% on the day, while dogecoin (DOGE) and polygon (MATIC) lost 4.2% and 4.7%, respectively. 

Crypto contagion

Crypto-related stocks largely suffered a tough week as well.

Coinbase ($COIN) shares fell more than 18% last week, according to Nasdaq data, after initially climbing higher on Tuesday compared to Monday’s open.

Block ($SQ) slid 6.3% while MicroStrategy ($MSTR) gyrated to close the week 0.7% in the red.

The stock price for Silvergate Bank ($SI) closed the week down more than 30% and was among the worst-performing crypto-related stocks tracked by The Block. The company drew scrutiny this week over its links to FTX.

Beyond the realm of stocks, contagion from FTX’s collapse continued to unfold as more industry firms revealed the degree to which they were exposed to the crypto exchange.

Genesis announced Wednesday it would halt all customer withdrawals and loan originations on its platform after taking a significant hit from the fallout of Three Arrows Capital (3AC) and FTX.

“Genesis Lending’s failure will have far-reaching implications within the space, especially in the institutional segment,” QCP Digital said Friday. “Genesis has close business ties to Silvergate bank – the venue for the bulk of crypto’s institutional banking needs; and was running the staking programs of Gemini and Circle – USDC, the former of which Gemini Earn itself has had withdrawals halted since.”

“Many are now expecting DCG to use the most liquid part of the business — Grayscale — to shore up Genesis and other parts of the business,” the note said. QCP had written off a potential sale of GBTC’s bitcoin assets in its 2022 year outlook, but it then said, “we never expected it to be under such circumstances.”

However, those perhaps expecting GBTC to allow a one-off redemption for Genesis to meet liquidity needs are misguided, according to QCP’s analysts, as Grayscale would need the SEC’s approval.

GBTC is currently trading at a discount of -42.7%, its lowest point ever, according to The Block’s Data Dashboard. 

The Grayscale’s ETHE product also hit an all-time low. ETHE was trading at a discount of -40.1%, according to The Block’s data. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.