ProBit Bits — ProBit Global’s Weekly Blockchain Bits Vol. 3
ETH, BTC Lead 2021 Gains for Crypto Investors
Ethereum earned investors a total of $76.3 billion in 2021, outpacing Bitcoin’s $74.7 billion, according to Chainalysis. In a new report, the blockchain analytics firm ties the gain to increased demand for Ether (ETH) since the Ethereum network hosts most DeFi protocols and they use ETH as their primary currency. Geographically, it puts U.S. crypto investors as leading the way with gains of $47 billion in 2021 (following a 476% growth from $8.1 billion in 2020), followed by the U.K. (at a 431% increase), Germany (gains grew by 423%), Japan, and China (up from $1.7 billion in 2020 at a year-over-year growth rate of 194% to reach $5.1 billion in 2021). Based on all cryptocurrencies tracks, it says investors around the world realized total gains of $162.7 billion in 2021, compared to just $32.5 billion in 2020. While the firm also highlights some existential risks that the industry needs to mitigate, it determines that 2021 was another strong year for cryptocurrency, noting that its data shows that crypto asset prices are growing and that cryptocurrency remains a source of economic opportunity for users in emerging markets. Get a chance to buy ETH at a 50% discount in the next ProBit Exclusive event.
First Russian Crypto Mining Company on US Sanctions List
The U.S. has added a Russian cryptocurrency mining firm to its sanctions list for the first time. Through its Department of the Treasury’s Office of Foreign Assets Control (OFAC), the U.S. labeled 10 Russia-based subsidiaries of Bitriver AG operating in the virtual currency mining industry alongside Russian commercial bank Transkapitalbank and a global network of more than 40 individuals and entities led by U.S.-designated Russian oligarch Konstantin Malofeyev as either evading, attempting to evade, or aiding the evasion of U.S. sanctions against Russia following its invasion of Ukraine. These companies operate vast server farms that sell virtual currency mining capacity internationally and help Russia monetize its natural resources, OFAC notes. It adds that considering Russia’s comparative advantage in cryptocurrency mining due to energy resources and a cold climate, the mining companies are vulnerable to sanctions as they use imported computer equipment and fiat payments. Russia is reportedly the third-largest cryptocurrency mining country after the U.S. and Kazakhstan. The development in Russia comes as lawmakers from New York presented and passedT a bill that could see cryptocurrency mining driven out of the state. The bill has put a hold on the use of a carbon-based energy source for cryptocurrency mining making New York the first state in the U.S. to do so as a measure to curb energy use.
First BTC, ETH ETFs in Australia Miss Launch Date
The two funds that were to offer direct access to cryptocurrency investments in Australia for the first time have missed their launch date. Both the ETFS 21Shares Bitcoin ETF and ETFS 21Shares Ethereum ETF, the world’s first Bitcoin and Ethereum ETFs in Australia, were to go live on April 27 but didn#t due to further checks. When approved, both funds will list on CBOE Exchange and will track the prices of Bitcoin and Ethereum in Australian dollars. Their creators, Swiss-based issuer of crypto Exchange Traded Products (ETPs), 21Shares, and ETF provider, ETF Securities (ETFS) cite Bitcoin as the best-performing asset over the past 10 years and Ether as one of the top-performing in five years hence could be used as “side bets in a portfolio” or for diversification as they “are uncorrelated to shares, bonds, and commodities.” Together with ByteTree AM, 21Shares also launched BOLD, a new exchange-traded products (ETP) that tracks a mix of Bitcoin (BTC) and gold, to connect traditional finance and crypto. The news comes as Simplify filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin Strategy Risk-Managed Income ETF. The Fund will enter into reverse repurchase agreements — whereby the Fund sells securities to buy them back at a specified time and price — to increase its income-producing portfolio through leverage.
Optimism protocol in a new chapter for Ethereum scaling
Ethereum layer 2 protocol Optimism said it has onboarded over 300,000 unique addresses and deployed over 6,800 contracts in the past year as it recaps related activities. It also facilitated over $17.4 billion in transaction volume, generated over $24.5 million in revenue and saved users over $1.1 billion in gas fees over the period. The protocol seeks to help run any Ethereum contract cheaper as part of efforts to help meet the network’s scaling needs. Since April 2021, Optimism says more than 50 apps have been deployed on the protocol resulting in over 60,000 ETH bridged in and more than $900 million in total on-chain value. It claimed that upgrades have improved the experience for users and made transaction fees 40% cheaper than they used to be. Optimism removed its deployment whitelist in December 2021 and opened the system up to all. It has now introduced a governance token, OP.
US Issues Advisory for North Korean Hackers’ Crypto Theft, Tactics
The U.S. government has stated that North Korean cyber actors continue to target various blockchain technology and cryptocurrency businesses. Three U.S. agencies issued a joint Cybersecurity Advisory about crypto thefts and tactics used by a North Korean state-sponsored advanced persistent threat. The Federal Bureau of Investigation, the Cybersecurity and Infrastructure Security Agency, and the U.S. Treasury Department say the group — tracked as Lazarus Group, APT38, BlueNoroff, and Stardust Chollima — engages in social engineering of victims through various communication platforms to trick them into downloading trojanized cryptocurrency applications on their operating systems. They then use the applications to gain access to the victim’s computer, propagate malware across the victim’s network environment, steal private keys, or exploit other security gaps to initiate fraudulent blockchain transactions. Targets include exchanges, DeFi protocols, play-to-earn video games, trading companies, venture capital funds investing in cryptocurrency, and individual holders of large amounts of digital assets or valuable NFTs. According to blockchain firm, Chainalysis, Bitcoin makes up less than a quarter of all cryptocurrencies stolen by North Korea.
Adidas Rolls Out Products in Metaverse
Adidas Original is releasing physical products into Metaverse for NFT holders with the guide of gmoney, PUNKS Comic, and Bored Ape Yacht Club. Aside from the NFT value and the ongoing exclusive access they grant, the holders are guaranteed access to four exclusive physical products for free throughout 2022. Called the Into The Metaverse limited edition digital collectible has four phases — or product redemption periods — holders to receive a physical product and a replacement NFT with an increased phase number. For example, Phase 1 token has to be burnt to receive a physical product, and a Phase 2 token. Participants in the final product redemption period have to burn their Phase 1, 2, or 3 ERC-1155 tokens to receive a Phase 4 ERC-721 token.
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