FBI Warns About Decentralized Finance Exploits and the Losses Associated With Them

The United States Federal Bureau of Investigation (FBI) has issued a public service announcement about exploits attackers have recently used to steal cryptocurrency from investors that put money on decentralized finance (defi) platforms. The organization also advised crypto investors to do their own research and verify that the decentralized finance platforms chosen were audited by independent parties.

Defi Platforms Under the Eye of the FBI

The FBI has begun to notice the attention scammers are giving to decentralized finance (defi) platforms in order to exploit their operations. The bureau has issued a public service announcement warning investors and defi platforms about this development, and issuing recommendations to try and prevent these exploits from happening.

The FBI has observed three recent hacks, by which attackers have managed to compromise these decentralized finance protocols: initiating flash loans, exploiting signature verifications to empty cross-platform bridges, and manipulating crypto price pairs by exploiting oracles used to update the price of a cryptocurrency asset in real-time. These exploits reportedly caused defi platforms and their investors to lose $358 million.

Advice Issued to Defi Platforms and Investors

While the service announcement does clarify that investments carry risk and that investors in these platforms should seek advice from financial advisors, the FBI also issues a set of recommendations for avoiding questionable defi sites.

These recommendations include researching the platforms before putting funds behind them, investing only in platforms with audits from independent parties to minimize risk of exploits, and being aware of the changes that crowdsourced code underlying these platforms can suffer due to the many actors with access to such repositories.

However, not all recommendations were directed to investors, as decentralized protocols also share the responsibility of minimizing the occurrence and gravity of these events. The organization advises decentralized finance protocols to implement real-time analytics tools that serve to identify the possibility of a threat by examining and detecting suspicious actions, and also to design strategies to deal with such incidents, alerting investors in the process.

In July, the FBI warned about liquidity mining scams and the dangers of fake cryptocurrency apps designed to steal crypto from investors.

What do you think about the latest decentralized finance warning issued by the FBI? Tell us in the comments section below.

from Bitcoin News

SEC Warns Crypto Investors of Scammers Exploiting Their Fear of Missing Out on Social Media

The U.S. Securities and Exchange Commission (SEC) has warned about scammers exploiting investors’ fear of missing out (FOMO) on social media. “If a crypto investment ‘opportunity’ sounds too good to be true, it probably is,” the SEC cautioned.

SEC Says Scammers Often Use Social Media to Defraud Investors

The U.S. Securities and Exchange Commission (SEC) published an Investor Alert titled “Social Media and Investment Fraud” Monday.

The SEC’s Office of Investor Education and Advocacy warned that “fraudsters often use social media to scam investors.” Encouraging investors to be skeptical and “never make investment decisions based solely on information from social media platforms or apps,” the securities regulator described:

Fraudsters may exploit investors’ fear of missing out to lure investors on social media into ‘crypto’ investment scams.

“If a crypto investment ‘opportunity’ sounds too good to be true, it probably is,” the SEC stressed. “Promises of high investment returns, with little or no risk, are classic warning signs of fraud.”

Fraudsters may also post fabricated historical returns on their websites showing high investment returns as a way to lure investors into their schemes.

Anyone considering investing in crypto assets or any crypto-related investments should “take the time to understand how the investment works,” the securities watchdog advised. “Check out the background (including license and registration status) of anyone offering you an investment in securities using the search tool on Investor.gov.”

Besides the SEC, several other U.S. regulators have warned about cryptocurrency scams. Recently, authorities warned of the “pig butchering” cryptocurrency scam becoming alarmingly popular. The Federal Bureau of Investigation (FBI) also recently cautioned crypto investors not to fall for the liquidity mining scam.

According to blockchain analytics firm Chainalysis, illicit crypto volumes were down 15% in the first six months of this year, compared to the previous year. Specifically, “Total scam revenue for 2022 currently sits at $1.6 billion, 65% lower than where it was through the end of July in 2021, and this decline appears linked to declining prices across different currencies,” the firm noted.

What do you think about the crypto investment scam warning by the SEC? Let us know in the comments section below.

from Bitcoin News

Report: Reddit Co-Founder Alexis Ohanian’s Seven Seven Six Targets $177M for a Crypto-Centric Fund Called Kryptós

According to a recent report, the venture capital firm founded by Alexis Ohanian, Seven Seven Six, is planning to raise $177 million for a new crypto-centric fund. The new Seven Seven Six fund called Kryptós will concentrate on investing in cryptocurrencies like bitcoin and ethereum.

Seven Seven Six Launches Cryptocurrency Fund Kryptós — Plans to Go Live in October

On August 29, 2022, The Information reporter Kate Clark published a report that noted Reddit co-founder Alexis Ohanian’s Seven Seven Six is raising money for a new crypto-focused fund called Kryptós. The company has been behind a number of investments tethered to the crypto and Web3 industry. For instance, Seven Seven Six led the Ethereum Web3 wallet platform Rainbow’s $18 million funding round.

In mid-December 2021, Seven Seven Six teamed up with Polygon to launch a $200 million social media Web3 fund. On Monday, The Information’s report says the fund Kryptós is looking to raise $177 million and it will invest in crypto assets. Last April, Seven Seven Six was approved to operate as a registered investment advisor (RIA), and Clark reports that her publication read the Kryptós fund marketing paperwork.

The Kryptós fund paperwork notes that there’s “potentially a unique opportunity” to obtain crypto investment vehicles “at a discount.” Now that Seven Seven Six is a registered investment advisor, it can invest in digital assets and manage the fund for a fee. Clark’s report further cites one of the founding partners at Ohanian’s venture capital (VC) firm, Katelin Holloway, who is quoted as saying “everything is on sale,” when it comes to crypto investment vehicles Kryptós could acquire. Holloway further added:

This is the best time to buy if you’re really long on the industry.

The crypto winter has not slowed VCs and businesses looking to invest in crypto-related products, projects, tokens, and companies in 2022. With the ability to invest directly into crypto assets like BTC and ETH, it can compete with investment funds offered by Sequoia Capital and Andreessen Horowitz (a16z). Seven Seven Six plans to charge a 2.5% management fee for Kryptós and the fund aims to go live in October 2022.

What do you think about the VC firm Seven Seven Six targeting $177 million for a new cryptocurrency fund called Kryptós? Let us know what you think about this subject in the comments section below.

from Bitcoin News

Goldman Sachs Urges Investors to Buy Commodities Now — Expects Equities to Suffer as Inflation Stays Elevated

Global investment bank Goldman Sachs has urged investors to buy commodities now and worry about a recession later. The firm’s analysts see commodities as “the best asset class to own during a late-cycle phase where demand remains above supply.” Meanwhile, “equities could suffer as inflation stays elevated and the Fed is more likely to surprise on the hawkish side,” Goldman noted.

Goldman Sachs’ Recommendation: Buy Commodities Now

Global investment bank Goldman Sachs has recommended investors buy commodities. In a note titled “Buy commodities now, worry about the recession later,” published Monday, Goldman wrote: “Our economists view the risk of a recession outside Europe in the next 12 months as relatively low.” The firm’s analysts, including Sabine Schels, Jeffrey Currie, and Damien Courvalin, explained:

With oil the commodity of last resort in an era of severe energy shortages, we believe the pullback in the entire oil complex provides an attractive entry point for long-only investments.

In the U.S., Federal Reserve Chairman Jerome Powell said last week: “We are taking forceful and rapid steps to moderate demand so that it comes into better alignment with supply, and to keep inflation expectations anchored. We will keep at it until we are confident the job is done.”

Moreover, European Central Bank (ECB) board member Isabel Schnabel noted Saturday that central banks around the world risk losing public trust and must now act forcefully to combat inflation, even if that drags their economies into a recession.

“From a cross-asset perspective, equities could suffer as inflation stays elevated and the Fed is more likely to surprise on the hawkish side,” the Goldman analysts further noted, elaborating:

Commodities, on the other hand, are the best asset class to own during a late-cycle phase where demand remains above supply.

The late-cycle phase typically involves a rise in inflationary pressures and an economy that moves past the peak rate of economic growth.

Goldman Sachs also cautioned: “We do acknowledge that the macro landscape remains challenging and the U.S. dollar could rise further short term.”

Currie, who heads commodities research at Goldman Sachs, believes that recessions are a natural part of a lengthy commodity supercycle. He told Reuters in November last year: “We expect a structural bull market in commodities, very similar to what we saw in the 2000s or the 1970s.”

The analyst told CNBC in June that we are at the beginning of a commodities supercycle. “This is the first innings of a commodities supercycle — It’s not just oil and gas, it’s metals, mining, it’s agriculture — because the sector has suffered from a decade-plus of underinvestment,” he opined.

Do you agree with Goldman Sachs about commodities? Let us know in the comments section below.

from Bitcoin News

Gala Games Announces Launch Date for Spider Tanks

ΔΕΛΤΙΟ ΤΥΠΟΥ. Τζάκσον, Ουαϊόμινγκ (29 Αυγούστου 2022) – Η Gala Games , η κορυφαία πρωτοπόρος στην ψυχαγωγία web3 και το blockchain gaming, ανακοίνωσε σήμερα ότι το Spider Tanks , το πρώτο Web3 PvP esports brawler, θα κυκλοφορήσει στις 31 Οκτωβρίου 2022 ως το ντεμπούτο παιχνίδι στο Project GYRI , Τα ιδιόκτητα παιχνίδια της Gala Games - το πρώτο blockchain. Εν αναμονή της κυκλοφορίας, από σήμερα το Gala ξεκινά μια περιορισμένη χρονική έκπτωση για το Spider Tanks Planetary Nodes. 

Οι Planetary Nodes θα λειτουργούν από μέλη της κοινότητας που έχουν αγοράσει άδειες σε αυτήν την πώληση. Σε αντάλλαγμα για τη χρήση των υπολογιστικών τους πόρων για την τροφοδοσία του αποκεντρωμένου οικοσυστήματος Spider Tanks, οι ιδιοκτήτες χειριστή του Node θα κερδίζουν τακτικές ανταμοιβές. Περισσότερες πληροφορίες για τους Planetary Nodes μπορείτε να βρείτε στο Gala.Games .

Αναπτύχθηκε από τη βραβευμένη GAMEDIA με έδρα την Ολλανδία, αυτό το φουτουριστικό παιχνίδι δεξαμενής esports είναι δωρεάν για παιχνίδι, αλλά ενσωματώνει επίσης μια ποικιλία μηχανισμών παιχνιδιού για να κερδίσετε που επικεντρώνονται στον ανταγωνισμό βάσει δεξιοτήτων, τη συλλογή πόρων και έναν κύκλο αναβάθμισης με γνώμονα τον παίκτη για να κερδίσετε πραγματικές ανταμοιβές. Στο Spider Tanks , οι παίκτες δημιουργούν τον δικό τους μοναδικό ερπετό διεκδικητή συναρμολογώντας σώματα τανκς και όπλα στο γκαράζ τους. Μόλις ολοκληρωθεί το "Spider Tank" τους, είναι έτοιμος για μηχανικό χάος καθώς τα μηχανικά τέρατα το παλεύουν στους χάρτες της αρένας Spider Tanks .

Αυτό το esports brawler σάς επιτρέπει να παίξετε με μια στενή ομάδα φίλων ή να δοκιμάσετε τις ικανότητές σας σε διαγωνισμούς υψηλού στοιχήματος. Σχεδόν 25.000 παίκτες συμμετείχαν εβδομαδιαίως σε μια πρόσφατη δημόσια δοκιμή παιχνιδιού, η οποία είχε ως αποτέλεσμα συνολικά περισσότερους από 600.000 αγώνες. Πλήρως εμπορεύσιμα και αναβαθμίσιμα όπλα, τανκς και σώματα θα βρείτε στο κατάστημα Spider Tanks .

«Και πάλι εγκαινιάζουμε νέες πρωτιές στο gaming καθώς ετοιμαζόμαστε να κυκλοφορήσουμε το πρώτο Web PvP esports brawler με κέρδη. Τόσο οι παίκτες που παίζουν δωρεάν όσο και εκείνοι που επιλέγουν να κάνουν αγορές μπορούν να ανταμειφθούν για τις προσπάθειές τους», δήλωσε ο John Osvald, Πρόεδρος των Παιχνιδιών στο Gala Games. «Η κυκλοφορία αυτού του παιχνιδιού, σε συνδυασμό με αυτή του δικού μας blockchain, εδραιώνει περαιτέρω τη δέσμευσή μας να ενδυναμώνουμε τους παίκτες μέσω της ιδιοκτησίας».

Gala Games has recently released information on new game features including:

Build Your Army – Experiment with unique combinations of tank bodies, weapons and special items in the battle arena. There are more than 30 hero tanks, 45 weapons, and 45 bodies in different levels of rarity to mix and match

Upgrade Your Army – With each level upgrade, the tanks part’s power increase will vary depending on a random chance. Players can grind out upgrades that increase the scarcity and value of their Spider Tanks. The levels of the upgraded items are random making each item unique and special in its own way while the chances for a fully optimized item are slim making it very attractive and valuable.

Game Modes – There will be more game modes coming to the game.

• • Team Deathmatch: In this all-out brawl style match, the team with the most kills gets the victory.
  • Capture the Chicken: Your team’s goal is to capture as many moving chickens as possible.
  • Capture the Flag: There is only one flag, and the team who holds it in their possession the longest will be victorious in this match.
  • Ways to Play – There are a number of ways to play:
    • Pilot – Jump in and control your Spider Tank directly, to fight in the PvP Maps, engaging in exciting moment-to-moment combat.
    • Captain – Build out your own army of Spider Tank pilots that fight for YOU on the PvP Maps.
    • Baron – Own a PvP Map and receive rewards from the battles that take place in your map.

Ways to Earn – The game’s blockchain reward token system allows participants to earn Victory Points in a number of ways including winning matches, owning maps/land that host battles, and running Nodes.

Choose Your Battleground – There are currently six maps including a safe haven with old mines, trepidatious tracks and rickety boardwalks, a jungle temple with wild and ancient ruins, a death canyon for a wild west showdown and a subzero arctic base. There will be more maps available when the game is launched.

About GAMEDIA

GAMEDIA is an award-winning game studio from the Netherlands with an extensive track record and history. The long list of games they have developed are mostly based on well-known entertainment IP’s and have seen the light on a wide range of platforms and hardware. Currently they are focused on creating their own high quality multiplayer games for PC and consoles, as well as mobile.

About Gala Games

Gala Games is a pioneer in Web3 games that uses decentralization, player ownership and reward economies to create a revolutionary new way of gaming. With dozens of games on the horizon and several already in various stages of presale or beta play, Gala is quickly becoming the world leaders in own-your-experience gaming. Learn more at Gala.Games.

For more information please visit

Gala.Games

Λάβετε μέρος στη συζήτηση Discord @GalaGames.Chat

@GoGalaGames

#GoGalaGames

Επαφές πολυμέσων

Παιχνίδια Gala:

Susan Lusty: [email protected] 415-269-0226

Lori Mezoff: [email protected] 201-637-2895

 

 

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από Bitcoin News

Singapore Considers Stricter Rules for Retail Crypto Investors — Regulator Says Cryptocurrencies Are ‘Highly Hazardous’

Singapore’s central bank, the Monetary Authority of Singapore (MAS), is contemplating imposing stricter rules on retail crypto investors. “MAS regards cryptocurrencies as unsuitable for use as money and as highly hazardous for retail investors,” said the central bank chief.

New Rules May Be Coming to Retail Crypto Investors in Singapore

Ravi Menon, the managing director of the Monetary Authority of Singapore (MAS), the Singaporean central bank, talked about cryptocurrency regulation at the Green Shoots seminar Monday.

He outlined five areas of risk in digital assets that the central bank’s regulatory approach is focused on. They are combating money laundering and terrorist financing risks; managing technology and cyber-related risks; safeguarding against harm to retail investors; upholding the promise of stability in stablecoins; and mitigating potential financial stability risks.

The central bank chief noted:

MAS regards cryptocurrencies as unsuitable for use as money and as highly hazardous for retail investors.

“Cryptocurrencies lack the three fundamental qualities of money: medium of exchange, store [of] value, and unit of account,” he emphasized.

Menon explained that the new regulatory measures will make it more difficult for retail investors to trade cryptocurrencies. “Adding frictions on retail access to cryptocurrencies is an area we are contemplating,” he revealed, elaborating:

These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading.

However, the central banker stressed:

But banning retail access to cryptocurrencies is not likely to work.

“The cryptocurrency world is borderless. With just a mobile phone, Singaporeans have access to any number of crypto exchanges in the world and can buy or sell any number of cryptocurrencies,” he opined.

“MAS’ development strategy makes Singapore one of the most conducive and facilitative jurisdictions for digital assets,” Menon concluded. “At the same time, MAS’ evolving regulatory approach makes Singapore one of the most comprehensive in managing the risks of digital assets, and among the strictest in areas like discouraging retail investments in cryptocurrencies.”

What do you think about the comments by the head of the Singapore central bank? Let us know in the comments section below.

from Bitcoin News

Preserve Childhood With Love: CoinEx Charity Delivers Warmth to Sick Children in Venezuela

On August 19, a group of loving volunteers visited Hospital Universitario Antonio Patricio de Alcalá (HUAPA) in Cumaná, Venezuela. Wearing costumes and acting as cartoon characters such as Spider-Man and Elsa popular with children, they shuttled between pediatric wards while carrying books and toys as gifts to sick children in the hospital. This is a charity event meticulously planned by CoinEx Charity, a global charity, for kids suffering from illness in Venezuela. During the event, the organization hired actors to play cartoon characters and provided sick kids with gifts, including 500 cakes, 300 fruit packages, and 130 toys. CoinEx Charity hopes that the warmth and fun brought by the cartoon characters and gifts could ease their pain and help them forget about their illness for a while.

On the day of the event, children welcomed their special “friends” and received toys and gifts. They also got to play games with their favorite cartoon characters, filling the wards with laughter and joy. The cheerful mood made kids less nervous: they forgot about their pain for a moment and immersed themselves in the joy and gifts brought to them by their heroes.

Care for sick children as the guardian of childhood

Kids are confident and carefree because childhood, the best beginning of life, is full of joy and wonder, but illness deprives some kids of such privileges. In 2022, CoinEx Charity introduced the Multi-Million-Dollar Charity Fund to improve the living conditions of vulnerable groups worldwide. With a focus on the well-being of kids and teenagers, the organization has funded poor families with sick children to ease their financial and mental strain.

To help children in the hospital ease their mood and to improve their well-being, CoinEx Charity recruited local actors who are enthusiastic about charity and planned this surprise party. The actors dressed up as children’s beloved cartoon characters, bringing them closer to their heroes, and encouraged them to fight their illness bravely. The organization created a wonderful cartoon world, as well as a happy childhood memory, for the kids. During the event, CoinEx Charity prepared gifts and snacks for over 120 sick children in HUAPA Hospital, including 200 breakfasts, 300 fruit packages, 200 juices, 80 infant supplements, 500 cakes, etc. These loving gifts were a huge surprise to the kids who were receiving treatment in the ward. In the hospital, CoinEx Charity received plenty of thanks from parents and doctors, and the kids also expressed their gratitude with happy smiles.

CoinEx Charity has never stopped pursuing its charitable goals. Apart from its visit to Venezuela, the organization also went to Uniuyo Teaching Hospital in Nigeria and donated medical supplies for sick children. Recently, it partnered up with the Turkey-based KAÇUV (Hope Foundation for Children with Cancer) to fund children with illness, giving them access to quality education. The organization has been impressed by the significance of charity during each program that focuses on kids. CoinEx Charity calls on everyone around the world to care for disadvantaged kids and improve their living and learning conditions through acts of charity. Together, we can help every child thrive in a happy childhood!

Charity never stops

Charity requires dedicated efforts. Always committed to its original mission, CoinEx Charity keeps contributing to the charitable cause of protecting disadvantaged groups worldwide. Focusing on the living conditions of children around the world, it aims to evolve into a caring, compassionate organization devoted to charitable causes while honoring its corporate responsibilities through real actions.

In the future, CoinEx Charity will pay constant attention to the educational and living conditions of these kids with special needs. It also calls on kind-hearted individuals around the world to care for vulnerable groups such as sick kids and those struggling with all sorts of difficulties, going all out to help and protect children. CoinEx Charity strives to build an enabling social environment for kids and give them a happy childhood.

 

 

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from Bitcoin News

Dubai Regulator Announces Virtual Assets Marketing and Advertising Guidelines

The Dubai virtual assets regulator, the Virtual Asset Regulatory Authority (VARA), has unveiled digital assets marketing and promotion guidelines that are applicable to any entity using Dubai-based media sites and publishing channels. The guidelines will “ensure factual accuracy, explicitly demonstrate any promotional intent, and in no way mislead on the guaranteed nature of their returns.”

Guidelines Applicable to Dubai Licensed VASPs

Dubai’s regulator of virtual assets, the Virtual Asset Regulatory Authority (VARA), recently announced the guidelines governing the marketing and promotions of digital assets. According to a Khaleej Times report, the guidelines reflect the regulator’s mission to provide a legal framework that brings economic opportunities without compromising the market’s security.

As per the report, the VARA guidelines encompass “all forms of outreach, communications and advertising, including publication of information, awareness building, customer engagement, and/or investor solicitation.” They also extend to all virtual assets related to marketing by any entity using Dubai-based media sites and publishing channels that specifically target customers in Dubai.

The report added: “Guidelines further detail the obligations of Dubai licensed VASPs [virtual assets service providers] and any advertising platforms that are positioning VA [virtual assets] content across traditional and new-age media channels for the Dubai market, to ensure factual accuracy, explicitly demonstrate any promotional intent, and in no way mislead on the guaranteed nature of their returns.”

Guidelines Ensure Users Get Needed Information Before Making a Decision

Remarking on the VARA’s advertising guidelines announcement, Kokila Alagh, the founder of KARM Legal Consultants said the “regulations will go a long way in ensuring that users have the needed information before making their decisions.” Faisal Zaidi, the co-founder and CMO at Crypto Oasis said the announcement ensures companies in the digital assets industry act appropriately thus helping protect consumers and investors.

Atul Hegde, the founder of YAAP is quoted in the report describing the move as one that “augurs well for Dubai’s ambitions of being among The top global destinations for cryptos, blockchain, and the metaverse.”

What are your thoughts on this story? Let us know what you think about this subject in the comments section below.

from Bitcoin News

Robert Kiyosaki Says Real Estate, Stocks, Gold, Silver, Bitcoin Markets Are Crashing — ‘Millions Will Be Wiped Out’

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, has warned that all markets are crashing, specifically naming real estate, stocks, gold, silver, and bitcoin. Referencing his earlier prediction of a bigger crash than during the 2008 financial crisis, Kiyosaki said: “That crash is here. Millions will be wiped out.”

Robert Kiyosaki Predicts Market Crashes

The author of Rich Dad Poor Dad, Robert Kiyosaki, is back with dire warnings about market crashes. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.

Kiyosaki described in a tweet Friday that every market is crashing and the middle class will be wiped out by “higher oil inflation.” He wrote:

All markets crashing: real estate, stocks, gold, silver, bitcoin. Middle class wiped out by higher oil inflation.

On Sunday, he followed up with a tweet referencing a book he published in October 2013 titled “Rich Dad’s Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming … And How You Can Prepare Yourself and Profit From It!”

He detailed that 2008 was a great time to get rich since everything “went on sale.” Noting his prediction of a bigger crash outlined in his book, the renowned author wrote: “That crash is here. Millions will be wiped out.”

Kiyosaki urged his 2 million Twitter followers not to be among those who get wiped out, adding that it is time for them to “get richer.” Last week, he explained that “It’s not what’s in your wallet … It’s what’s in your head,” emphasizing: “Change what’s in your head first… then get richer.”

The famed author has warned about market crashes on several occasions. He recently predicted the biggest bond crash since 1788, stating that stocks and bonds are crashing. Asserting that a depression and civil unrest are coming, he further cautioned that inflation may lead to the Greater Depression.

Last week, he revealed that he changed his mind about treasury bonds after listening to economist Harry Dent. The Rich Dad Poor Dad author has been recommending investors buy gold, silver, and bitcoin for quite some time, stressing that the U.S. dollar is dying. In July, he said silver was the best investment value today.

Kiyosaki has also been waiting to buy bitcoin at a lower price. In June, he said he was waiting for the cryptocurrency to test $1,100 before buying. In July, he noted that he was in cash position waiting to buy BTC. This week, BTC dipped below $20K. At the time of writing, bitcoin is trading at $19,629, down over 9% in the last seven days. The overall cryptocurrency market stands at about $944 billion, based on Coinmarketcap’s data.

What do you think about the warnings by Rich Dad Poor Dad author Robert Kiyosaki? Let us know in the comments section below.

from Bitcoin News

Onchain Ethereum Fees Remain Low Ahead of the Merge, 4 L2 Networks Offer Transfers Below a Nickel

With just over two weeks until The Merge, Ethereum network fees have reduced significantly as the average ethereum transfer fee has dropped to 0.00092 ether or $1.37 per transaction on August 28. Median-sized fees have slid to 0.00036 ether or $0.544 per transfer, and etherscan.io’s gas tracking tool notes a priority fee will cost 11 gwei or $0.34 to get a transaction confirmed in roughly 30 seconds.

Ethereum’s Onchain Transfer Cost Remains Low, L2 Transfer and Swap Fees Are Still Cheaper

On August 16, the Ethereum Foundation updated a previously published blog post in order to make it clear that The Merge would not reduce gas fees and improve throughput. While The Merge is a little more than two weeks away, Ethereum gas fees have been far less expensive than they were before mid-June.

At that time, in the middle of June, Ethereum’s average gas fees started to drop lower from $3.86 per transaction to 0.00086 ether or $1.46 per transfer during the first week of August. Gas fees are even lower today, as the average fee is currently 0.00092 ether or $1.37 per transaction, according to bitinfocharts.com data.

Bitinfocharts.com metrics further show that the median sized Ethereum fee on Sunday is 0.00036 ether or $0.544 per transaction. Etherscan.io data shows gas prices are lower, according to the website’s dedicated gas tracking tool.

Presently, at 4:30 p.m. (EST) on August 28, 2022, the highest “priority” gas fee according to etherscan.io is 11 gwei or $0.34 per transfer. An Opensea settlement will cost $1.17 per transaction, a Uniswap trade will cost a user $3.03 using the priority transfer setting, and to send an ERC20 token like tether (USDT), etherscan.io estimates the cost is around $0.89 per transaction.

While ETH fees are lower, they are two times the size of bitcoin’s (BTC) average transfer fees, which are 0.000039 BTC or $0.785 per transaction on Sunday. Median-sized fees on the Bitcoin blockchain are 0.000013 BTC or $0.258 per transaction, which is also lower than ETH’s median-sized transfer fees.

In terms of 24-hour rewards, ETH miners obtained $41,107,170 in block rewards, while BTC miners acquired $35,976,600 in block rewards plus transaction fees. As onchain Ethereum data fees have dropped a great deal, it is still much cheaper to transact via Ethereum-compatible layer two (L2) payment rails.

Metis Network is the cheapest transfer fee today as l2fees.info indicates the estimated cost to transfer ether via Metis is $0.01 per transfer, and to swap coins via Metis it is around $0.06 per transaction. A Loopring ether transaction will cost an estimated $0.03 per transfer; to trade via Loopring the L2 estimated cost is $0.37 per transaction.

L2 fees via Zksync, Arbitrum, Boba Network, Optimism, Aztec Network, and Polygon Hermez are all lower than onchain transfer fees. Swap fees via these networks are also less expensive than onchain swap fees via a traditional trade on a decentralized exchange (dex) like Uniswap.

What do you think about Ethereum network fees remaining low ahead of The Merge? Let us know what you think about this subject in the comments section below.

from Bitcoin News

Amid Ethereum’s Merge, Cardano Founder Charles Hoskinson Says ADA’s Vasil Fork Is Coming Soon

Cardano founder Charles Hoskinson detailed on Friday that the Vasil hard fork is coming soon and noted that it may occur “sometime in September.” The crypto asset’s upgrade has been overshadowed by the upcoming Ethereum upgrade called The Merge.

Vasil Hard Fork Due ‘Sometime in September,’ Input-Output Global’s Charles Hoskinson Says

• The proof-of-stake (PoS) blockchain Cardano (ADA) has plans to implement a hard fork roughly around the same time The Merge is expected to be implemented. Ethereum’s Merge is roughly 16 days away from now and the change will transition Ethereum’s proof-of-work (PoW) consensus mechanism to a PoS blockchain.
• Speaking during a Twitter live stream on Friday, Hoskinson told the public that while “extensive testing” is still being conducted, the Vasil hard fork could take place in mid-September. Much like The Merge, Cardano’s hard fork was postponed at the end of June.

• The Vasil hard fork aims to add four Cardano Improvement Proposals (CIPs) into the mix. The CIPs include CIP-31 (Reference Inputs), CIP-32 (Inline Datums), CIP-33 (Reference Scripts), and CIP-40 (Collateral Outputs).
• One particular change, CIP-31, will reduce Cardano’s transaction costs a great deal, developers detailed a few months ago. “Reference scripts reduce your transaction costs,” the Cardano development team at Input-Output Global (IOG) explained during the first week of May.
• During the live stream, Hoskinson said Vasil will take place “sometime in September” and he further stressed that the “next major lift is to get the exchanges on board.” Hoskinson mentioned that it was difficult to make sure major exchanges and third parties upgraded.

• Larger crypto exchanges pushing to upgrade, typically help smaller exchanges follow suit. Amid the discussion of a Cardano hard fork, the blockchain’s native currency has lost significant value against the U.S. dollar in recent times.
• Over the last 14 days, cardano (ADA) has shed 21.1% in USD value and during the last day ADA’s 24-hour price range has been between $0.441044 to $0.454171 per unit. The crypto asset is down 85.7% since the all-time high on September 2, 2021, and ​​84.9% year-to-date against the U.S. dollar.

What do you think about the upcoming Vasil hard fork taking place roughly around the same time as The Merge? Let us know what you think about this subject in the comments section below.

from Bitcoin News

Bank of Russia Eases Restrictions on Purchases of Dollar and Euro Cash

The Central Bank of Russia has relaxed some limitations for Russian banks selling U.S. dollars and euros to the public. The increased supply of foreign cash may affect the crypto market in the country as currency restrictions have been a driver of increased demand for digital coins.

Monetary Authority of Russia Expands Citizens’ Access to Foreign Cash

The Central Bank of the Russian Federation (CBR) has lifted one of the restrictions on the sale of U.S. dollars and euros in cash to private individuals imposed amid Western sanctions over the war in Ukraine, the Interfax news agency reported.

Until recently, Russians could buy only dollars and euros sold to the banks at their cash desks after April 9, 2022, by other physical persons. Now the CBR has allowed Russian lenders to sell the two convertible currencies if they are also obtained from other sources.

The regulator explained that these may include transactions with non-resident banks as well as foreign cash deposited by Russian legal entities. The adjustment will allow banks to increase the supply of cash dollars and euros, its press service said, noting that other restrictive measures will remain in place until March 9, 2023, as announced earlier this year.

In August, the Bank of Russia extended restrictions on U.S. dollar and euro cash withdrawals for another six months. At the moment, Russian banks are not limited in the sale of other foreign fiat currencies, the report notes.

Moscow’s decision to invade Ukraine in late February was met with harsh economic and financial sanctions introduced by the West. They have limited Russia’s access to global finances, including its foreign currency reserves.

Currency restrictions enforced by the CBR led to a spike in demand for crypto. Many Russians have been buying bitcoin, other cryptocurrencies, and stablecoins to use them for money transfers abroad, among other purposes. It remains to be seen how their loosening now will affect the local crypto market. A recent poll showed that close to a third of Russians are ready to buy coins in the next six months.

Do you think the easing of foreign cash restrictions will influence crypto demand in Russia? Share your thoughts on the subject in the comments section below.

from Bitcoin News

Latvian Extradited to US for Wire Fraud Involving Crypto Investments

A Latvian national has been handed over to the United States where he is accused of fraud through several companies offering false crypto investment opportunities. Ivars Auzins will appear in a federal court in Brooklyn to face multiple charges of wire and securities fraud.

Latvian Authorities Transfer Alleged Crypto Fraudster to US Custody

Ivars Auzins, a citizen of the small Baltic nation of Latvia, was extradited to the United States on Friday. The Latvian has been handed over to the American judiciary on a six-count indictment charging him with wire fraud, securities fraud, and conspiracies to commit wire and securities fraud in connection with the operation of eight businesses that purported to offer, invest in, or mine digital assets.

Auzins will be arraigned on the indictment on Saturday in a federal court in Brooklyn before the Honorable Roanne L. Mann., the U.S. Department of Justice said in a press release. The charges were announced by United States Attorney for the Eastern District of New York Breon Peace and Michael J. Driscoll, assistant director-in-charge of the New York Field Office of the FBI:

Auzins perpetrated a brazen scheme in which he fleeced investors who funneled millions of dollars into fraudulent cryptocurrency. This Office will continue to vigorously investigate and prosecute those who lie and steal from investors, including those like the defendant who operate from abroad.

According to the indictment, the Latvian allegedly ran several companies, the “Auzins Entities,” which advertised through email campaigns, social media, and websites dedicated to cryptocurrencies. They suggested valuable investment opportunities and solicited investments before suddenly disappearing.

Two of these, Denaro and Bitroad, raised funds through initial coin offerings (ICOs). Impressio Estate, Broi Investments (Bankroi), Changepro, Gemneon Investments, and Lycovest presented themselves as crypto investment platforms providing different investment plans and profit rates. Innovamine offered investments in mining a number of coins, including bitcoin (BTC) and ether (ETH).

Auzins and his co-conspirators allegedly enticed investors to put money into their projects through a series of material misrepresentations and omissions about the offered products and services, the profits that investors would earn by investing in the Auzins Entities, and the individuals who operated them.

Between approximately November 2017 and July 2019, individuals in the United States and other jurisdictions transferred at least $7 million in digital assets to Auzins’s companies. Shortly after receiving these investments, these entities disappeared without providing their promised services, the DOJ pointed out.

The Justice Department’s Office of International Affairs worked with Latvian law enforcement agencies to secure the arrest and extradition of Ivars Auzins to the United States, and the U.S. Marshals Service carried out the extradition, the announcement details. The New York Regional Office of the U.S. Securities and Exchange Commission assisted the investigation.

Auzins’s transfer to the U.S. comes after the recent extraditions of two Russian nationals accused by American authorities of crypto-related crime. Last week, the Netherlands transferred 29-year-old Denis Dubnikov, who is accused of laundering proceeds of ransomware attacks on individuals and organizations in the United States, including hospitals and healthcare providers. Earlier this month, Greece extradited 42-year-old Alexander Vinnik, alleged operator of BTC-e, who allegedly laundered at least $4 billion through the now-defunct digital asset exchange.

Do you expect more extraditions to the U.S. of people suspected of crypto-related crime? Tell us in the comments section below.

from Bitcoin News

Binance to Help South Korean City of Busan Grow Crypto Adoption, Develop Blockchain Ecosystem

Binance is helping the South Korean city of Busan “grow crypto adoption within the city and beyond.” The global crypto exchange will also support the development of the city’s blockchain ecosystem and the Busan Digital Asset Exchange.

Binance Signs MOU With Busan City

Cryptocurrency exchange Binance announced Friday that it has signed a Memorandum of Understanding (MOU) with Busan Metropolitan City. Busan, located on the southeastern tip of the Korean peninsula, is the second largest city in South Korea with approximately 3.4 million residents.

“As part of the agreement, the city of Busan will receive technological and infrastructure support from Binance for the development of the city’s blockchain ecosystem and promotion of the Busan Digital Asset Exchange,” Binance explained.

“Another form of cooperation between the two parties will be order book sharing,” the company added, noting that it will be establishing a presence in Busan by the end of the year.

Binance CEO Changpeng Zhao (CZ) said: “We are happy to be working with the city of Busan to bring tangible blockchain-related developments that benefit and support the city’s innovation efforts.” The executive opined:

Through our industry-leading position and technological expertise, combined with the city of Busan’s strong support for the blockchain industry, we hope to help grow crypto adoption within the city and beyond.

“We look forward to our close cooperation with the city to support the establishment of digital asset exchanges and various blockchain industries,” Zhao added.

The mayor of Busan, Heong-Joon Park, commented:

With this agreement, we are one step closer to establishing the Busan Digital Asset Exchange as a global integrated platform for digital assets.

“By making Busan a blockchain-specialized city that is attracting worldwide attention, we will boost a new growth engine for the local economy and make it a global digital finance hub,” he further said.

What do you think about Binance working with the city of Busan to grow crypto adoption? Let us know in the comments section below.

from Bitcoin News

SEC Probes Twitter Over Spam Accounts — Court Orders the Social Media Giant to Provide Additional Data to Elon Musk

Twitter Inc. has been ordered to provide additional data relating to spam and bot accounts to Elon Musk. The social media giant has sued the Tesla CEO for terminating his $44 billion offer to buy the social media platform. The U.S. Securities and Exchange Commission (SEC) has also questioned Twitter about the number of spam accounts.

Court Orders Twitter to Give Additional Data to Elon Musk

Chancellor Kathaleen St. J. McCormick, a judge on the Delaware Court of Chancery, signed an order Thursday requiring Twitter Inc. (NYSE: TWTR) to provide additional data to Tesla and Spacex CEO Elon Musk. Plaintiff Twitter has sued defendants Musk and his two companies, X Holdings I and X Holdings II, for terminating the $44 billion deal to buy the social media platform. Musk has countersued Twitter.

Judge McCormick stated in her order:

Defendants’ data requests are absolutely abroad.

She added: “Read literally, Defendants’ documents request would require Plaintiff to produce trillions upon trillions of data points reflecting all of the data Twitter might possibly store for each of the approximately 200 million accounts included in its mDAU count every day on every three years.”

The social media company defines monetizable daily active users (mDAU) as “Twitter users who logged in and accessed Twitter on any given day through Twitter.com or Twitter applications that are able to show ads.”

The order further reads:

Plaintiff is ordered to produce a subset of what Defendants have requested: the 9,000 accounts reviewed in connection with Plaintiff’s Q4 2021 audit, which the parties refer to as the ‘historical snapshot.’

“Plaintiff represented that, with considerable effort, these documents could be produced in under two weeks, and Plaintiff shall strive to meet that timeline. In addition, Plaintiff must produce documents sufficient to show how those 9,000 accounts were selected for review,” the order details.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) has probed Twitter over its method of identifying spam accounts, according to a new regulatory filing made public Wednesday.

In a letter dated June 15, the SEC asked Twitter CEO Parag Agrawal to provide some information regarding how the company calculates the number of bot accounts. “We note your estimate that the average number of false or spam accounts during fiscal 2021 continues to represent fewer than 5% of mDAU,” the SEC wrote, adding:

To the extent material, please disclose the methodology used in calculating these figures and the underlying judgements and assumptions used by management.

Twitter responded to the SEC inquiry with a standard description of the methodology on June 22. The social media giant informed the securities regulator that it has “adequately” disclosed the methodology that it uses, noting that it randomly selects thousands of accounts to be reviewed by people each quarter.

The SEC sent another letter to Twitter on July 27 stating: “We have completed our review of your filings. We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.”

Earlier this month, Musk sold nearly 8 million Tesla shares. The Tesla boss said that in the event that Twitter forces the buyout deal to close and some equity partners do not come through, it is important to avoid an emergency sale of Tesla stock.

Do you think the court will force Elon Musk to go through with the deal to buy Twitter? Let us know in the comments section below.

from Bitcoin News

Applied Blockchain Changes Name, Enters Purchase Agreement for Land in North Dakota

This week the mining operation Applied Blockchain announced that it is changing its company name to Applied Digital. Furthermore, the mining operation released 2022 financial results and operational updates that noted that the mining firm entered a purchase agreement on August 15 for land in North Dakota.

Applied Digital Enters Purchase Agreement on August 15, Groundbreaking Planned for Q3 2022

Another mining company is reporting expansion updates as Applied Digital (formerly Applied Blockchain) has revealed it has entered a purchase agreement on August 15. The deal will add a second mining facility in the state of North Dakota. The company’s news follows the firm getting a $15 million loan to fund growth and “buildout of its data centers.”

Applied Digital said, on August 25, that it changed the company name to “reflect the company’s broader business opportunities within larger high-power computing (HPC) applications.” On the same day, it released a financial and operational update that reveals the new purchase agreement.

“[Applied Digital’s] third co-hosting facility will be in North Dakota, at a different location than its current Jamestown facility. As previously announced, the Company has executed a letter of intent with a utility and is in the late stages of design and pre-construction,” the company detailed. “On August 15, 2022, [Applied Digital] entered into an agreement for the purchase of raw land in North Dakota for construction of the facility. Groundbreaking is planned for the third calendar quarter of 2022.”

The company added:

A meaningful portion of the power capacity at this site has already been contracted by Marathon as part of their 200MW contract with an option for the remaining capacity at the site.

Applied Digital joins a slew of mining operations expanding in 2022 despite the harsh crypto winter and low digital asset market values. Genesis Digital Assets announced that the firm secured 708 megawatts (MW) in capacity during the first half of 2022. Cleanspark recently revealed it acquired a plug-in-ready facility with 86 MW of capacity after it noted it secured thousands of ASIC mining devices at a “discounted price.”

What do you think about Applied Digital’s purchase agreement announcement? Let us know what you think about this subject in the comments section below.

from Bitcoin News

Crypto Economy Slides Under $1 Trillion, as Bitcoin and Ethereum Dive Below Previous Support Zones

On Saturday, August 27, 2022, the global market capitalization of all the crypto assets in existence dropped under the $1 trillion mark and the leading crypto asset bitcoin slipped below the $20K region for the first time since mid-July.

Crypto Economy Craters — More Than $240 Billion Erased in 13 Days

Digital currency markets this weekend are feeling the pain as the global cryptocurrency market capitalization today is just under $1 trillion, down 4% during the last 24 hours. That was after the crypto economy shed more than 6% the 24 hours prior. The crypto market’s major decline took place almost immediately after Fed chair Jerome Powell gave his speech at the annual Jackson Hole Economic Symposium on Friday.

At the time of writing, bitcoin (BTC) is down 3.5% today and 4.5% over the last seven days and the leading crypto asset is trading for $19,968 per unit. BTC fell to a daily low today tapping $19,766 per unit at 11:39 a.m. (EST). Ethereum (ETH), the second largest crypto asset by market valuation slid 5.1% on Saturday and lost 8.8% this week.

There is $67.44 billion in 24-hour global trade volume across the twenty thousand crypto assets in existence, but tether (USDT) commands $34.07 billion of the aggregate. Centre’s usd coin (USDC) has recorded $7.75 billion out of the $67.44 billion total as well. The volume between USDT and USDC represents 62.01% of today’s global trade volume.

While ETH lost 5.1% on Saturday, solana (SOL) lost 5% as well and dogecoin (DOGE) shed 3%. The biggest losers today include lido dao (LDO) down 11%, radix (RDX) lost 6.8%, and ethereum classic (ETC) shed 6.9%. The tokens internet computer (ICP), chiliz (CHZ), defichain (DFI) and polygon (MATIC) managed to gain between 2.3% to 5.2%.

The crypto economy is a whole lot lower in USD value than it was on August 14, when the market capitalization of all the coins in existence was $1.24 trillion. That day, bitcoin (BTC) jumped over the $25K zone, and ethereum (ETH) managed to rise above $2K per unit. Billions have been erased since that day, in a matter of just under two weeks, more than $240 billion is gone.

PSA: MtGox is *NOT* distributing any coins this week, or the next week, or the week after that.

Source: I’m a MtGox creditor. The repayment system is not live yet.

Next step: Go and block @TheAltcoinHub for spreading this misinfo.

— Eric Wall (also supports X 🏴) (@ercwl) August 27, 2022

While yesterday’s downturn was blamed on the Fed, today’s drop is surrounded by speculation and rumors on social media that the Mt Gox bitcoin stash of 140,000 BTC is soon to be released. Some believe Mt Gox will release the BTC really soon, while others are calling the rumors “fake news.” Despite any veracity to the Mt Gox coin chatter, there are hundreds of tweets discussing the subject on Twitter.

What do you think about the cryptocurrency carnage that has seen the global market capitalization of all the crypto coins in existence drop under $1T? Let us know what you think about this subject in the comments section below.

from Bitcoin News

Afghanistan Closes Down 16 Cryptocurrency Exchanges, Arrests Operators

Law enforcement in Afghanistan has shut down over a dozen crypto exchanges in Herat, detaining the people who were running them. The offensive comes after the introduction of a ban on online foreign exchange that the Taliban seem to have applied to coin trading as well.

Taliban Government Goes After Crypto Trading in Afghanistan Citing Scamming as Motive

Afghan security forces have closed down a number of crypto exchanges in the western Herat province in the past week, the English-language Ariana News portal reported on Tuesday. At least 16 platforms trading digital currencies have been shut down, the outlet unveiled.

The report quotes the head of the counter-crime unit of the Herat police Sayed Shah Sa’adat who reminded that Da Afghanistan Bank (DAB), the country’s monetary authority, said in a notice that crypto trading had caused lots of problems, including scamming people. He also stated:

We acted and arrested all the exchangers involved in the business and closed their shops.

Ghulam Mohammad Suhrabi, who leads the Herat Money Exchangers’ Union, explained that Afghan companies open cryptocurrency accounts outside the country. “This currency is new in the market and has high fluctuation,” he noted.

The Afghan officials are probably referring to a statement by the central bank in Kabul which, according to a Bloomberg report from late June, declared that online forex trading is against Islam and banned it. Through a spokesman, the regulator warned that anyone engaging in this activity would face prosecution. The bank’s representative elaborated:

Da Afghanistan Bank considers online forex trading illegal and fraudulent, and there is no instruction in Islamic law to approve it. As a result, we have banned it.

In mid-July, DAB issued another statement reinforcing the order, according to Ariana News. The bank said that Afghans, especially in the capital city, were still trading despite the prohibition. The authority emphasized it had not licensed any person or company to trade online and those who continue to do so were breaking the law.

Following the return of the Taliban to power in Kabul, Afghanistan’s weak economy fell into an even deeper crisis. The U.S., which pulled out its forces in 2021, seized $10 billion of DAB’s assets and imposed sanctions.

Financial restrictions and the withdrawal of Western companies made it harder for the Afghan diaspora to send money home. As a result, many Afghans turned to crypto, which also helped them to preserve their savings and prevent potential seizure by the government.

Do you think Taliban-ruled Afghanistan will continue to crack down on crypto exchange platforms? Share your thoughts on the subject in the comments section below.

from Bitcoin News

China’s Yuan Continues to Depreciate Against Greenback, Real Estate Crisis Exposed 2 Decades of Accumulated Risk

China’s sovereign currency, the yuan, has slid significantly in value during the last few months as it has shed 8% against the U.S. dollar during the first half of 2022. China’s fiat currency is currently the weakest it has been against the U.S. dollar in roughly two years. Amid the depreciating yuan, China is suffering from a significant real estate crisis as the overextended Chinese housing sector has been collapsing.

China’s Yuan Slides to a 2-Year Low Against the US Dollar, PBOC Slashes Rates to Bolster Liquidity

The global economy is not looking great these days and cracks are starting to show in nearly every single country worldwide. This week while the U.S. dollar and Russian ruble remain robust, the Chinese yuan has been weak against the greenback and more so than it has been in two years. At the time of writing, the yuan is trading for 6.86 to the dollar, or levels not recorded since August 2020. Of course, the country’s central bank, the People’s Bank of China (PBOC), has tried to bolster the yuan and the Chinese economy.

Less than a week ago today, the PBOC lowered the country’s benchmark bank rate from 2.1% to 2%. Additionally, the PBOC slashed the one-year lending facility rate from 2.85% to 2.75%. At the time, the Chinese central bank explained the moves were made to “maintain reasonable and sufficient liquidity in the banking system.” China’s cabinet also published a new spending policy package, which aims to double infrastructure spending. The PBOC’s 2.1% to 2% rate cut was considered “bearish,” ING economists wrote in a note to investors after the central bank cut rates.

On August 22, the PBOC reduced specific lending rates again, as it trimmed the five-year loan prime rate to 4.30% from 4.45%. China’s central bank also revised the one-year prime rate to 3.65% from 3.70%. The same day, Atilla Widnell, a market analyst and managing director for Navigate Commodities, detailed in a note to investors that the central bank’s rate cuts the week prior did not see many positive reactions.

“Fresh monetary easing/stimulus was seen as futile as ‘flogging a dead horse,’ given that China’s economy desperately needs consumers back on the streets spending money,” Widnell wrote.

The Domino Effect of China’s Real Estate Issues, FX Watchdog Warns Several Chinese Banks Against Aggressively Selling Renminbi

China’s economic issues and the weak yuan stem from the country’s troubling real estate issues, according to a myriad of reports littered all over the web. Senior lecturer in economics and theconversation.com author Zhirong Ou explains that China’s real estate sector is a “traditionally strong housing market,” but these days the sector is stifled by a massive “funding crisis.” The domino effects have led to real estate buyers refusing to pay mortgages, while construction and development loans in the country have been overextended.

“The recent spate of mortgage strikes by homebuyers across China has exposed the risk that has accumulated in the market as it has developed over the past two decades,” theconversation.com’s author opines. Zhirong Ou further notes that the strikes initially started with the Evergrande fiasco but it has since spread like a contagion. When Evergrande started to crack at the seams, the author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, stressed that the Evergrande situation was a “house of cards.”

Meanwhile, the situation for the yuan has been dreary as the currency’s recent depreciation has caused a few Chinese banks to limit the fall by fixing the onshore spot rate. Chinese megabanks and the PBOC understand that a weakening yuan introduces market volatility, and the lack of faith in the official Chinese currency will accelerate capital outflows.

Two days ago, Reuters reported that the country’s FX watchdog has warned a variety of banks. “China’s foreign exchange regulator phoned several banks on Wednesday to warn them against aggressively selling the Chinese currency, people with direct knowledge of the matter said,” Reuters explained on August 24.

What do you think about the yuan’s recent depreciation? What do you think about the mortgage issues the country is facing at the moment? Let us know what you think about this subject in the comments section below.

from Bitcoin News