Crypto Market Newsreel \ August 13-27, 2022

The Tornado of Security Concerns

This summer there wasn't a dull week in the crypto market. After the first signs of the end of 'crypto winter' started showing up, a dramatic saga with Tornado Cash caught everyone's attention and raised fair questions about crypto security protocols and the nature of security in the Decentralized Finance (DeFi) market.

Find out more about this story and other highlights of the past two weeks in this newsreel. Let's roll!
Market Cap
In the last two weeks, the market cap lost 16.2%, reaching $0.972 Trillion, according to CoinMarketCap. Bitcoin price fell to $20,201.8 and Ether is currently trading at $1,504.7 on the Aximetria app.
$972 Billion
* Crypto market capitalization is the total value of a cryptocurrency. It is calculated by multiplying the cryptocurrency price with the number of coins in circulation.
BTC Treasuries
BTC Treasures are alternative inflation hedges and stores of value that are especially popular in the times of world economic destabilization.
Exchange Traded Funds
808,688 BTC
50,779 BTC
46,351 BTC
Public Companies
257,047 BTC
129,699 BTC
Private Companies
316,067 BTC
Mt. Gox
141,686 BTC
Grayscale Bitcoin Trust
643,572 BTC
Top 3
Top 3
Top 3
Top 3
Learn more at Buy Bitcoin Worldwide
2,381 BTC
El Salvador
1,981 BTC
40,000 BTC
Galaxy Digital Holdings
Voyager Digital LTD
12,260 BTC
140,000 BTC
The Tezos Foundation
17,500 BTC
CoinShares / XBT Provider
48,466 BTC
Purpose Bitcoin ETF
25,284 BTC

  • Tornado Cash saga continues

Tornado Cash
USD Coin
On Aug. 12, the Tornado Cash developer Alexey Pertsev was arrested for suspicions of being involved in money laundering through the Tornado Cash mixer. Authorities in the Netherlands said that the mixer was used to hide huge money flows from criminals and utilized for crypto scams and hacks.

The news comes shortly after the United States Treasury Department placed several Tornado Cash addresses on the sanctions list of the Office of Foreign Asset Control (OFAC) on Aug. 8.
* Mixer is an offering that helps obfuscate potentially identifiable or tainted cryptocurrency funds with others to erase any trails linked with the assets, thus making it impossible for anyone to trace the tokens back to their original source
Circle, a major cryptocurrency firm and the issuer of USD Coin (USDC), froze 75,000 USDC linked to OFAC-sanctioned addresses.

Last week, Tether said it won't freeze sanctioned Tornado Cash addresses unless requested by law enforcement.

A judge in the Netherlands ruled that Alexey Pertsev has to stay in jail for 90 more days while waiting for charges, which spiraled into hot debates in the crypto community. In Amsterdam, protestors gathered to demand the release of the developer. Chanting "open source is not a crime," the protestors urged the government to catch the criminals and not the developers.

  • Cardano's Vasil hard fork is 'ever closer'

On August 25, Input Output Hong Kong (IOHK), the blockchain company behind the Cardano network, shared its latest "rollout status" of the Vasil upgrade to its 265,800 followers, with updates on "three critical mass indicators," which will determine when the mainnet update will go ahead.

This includes having 75% of mainnet blocks produced by nodes running 1.35.3, around 25 exchanges upgraded (representing 80% of liquidity) as well as the top ten key mainnet decentralized applications (DApps) also having upgraded.

On Thursday, the blockchain company noted that Stake Pool Operators (SPOs) running the latest node 1.35.3 now account for 42% of mainnet block production in the current epoch, which is now more than halfway to the 75% required.
*The anticipated Vasil upgrade is aimed at reducing transaction size and allowing for more network activity while lowering costs. After a roadmap was released by IOHK on May 19, which planned for a hard fork on June 29, the Vasil upgrade has been plagued by delays while developers ensure the network transition proceeds smoothly.

  • Ripple partners with Travelex to launch enterprise crypto payment service in Brazil
Last week Ripple announced that foreign exchange company Travelex will utilize RippleNet's ODL to facilitate cross-border payments between enterprises by utilizing XRP. It also stated that Travelex Bank is the first bank approved by Brazil's central bank to operate exclusively in foreign exchange.

The Central Bank of Brazil's approval makes this the first time a Latin American bank has utilized ODL.

  • Beijing presented two-year Metaverse innovation and development plan
The Beijing municipal government announced a two-year (2022–2024) Metaverse innovation and development plan that would require all districts to adhere to the newly released Web3 innovation plan.

The innovation plan focuses on promoting the development of Metaverse-related industries and helping Beijing build a benchmark city for the digital economy. The action plan demands that various districts build technological infrastructure at a city level and promote its use in various fields, including education and tourism.

The development program would see the Integration of technical means such as 3D visualization and GIS (Geographic Information System) to build a visual urban space digital platform and appropriately advance the layout of digital native intelligent infrastructure.

  • MTV introduces the 'Best Metaverse Performance' award category
The 2022 MTV Video Music Awards (VMAs) added a new category to its list of competition categories. This year, artists are eligible to compete under the category of "Best Metaverse Performance" for a coveted award.

In its inaugural year, six artists are up for nomination. The list includes BTS (YouTube), "the Rift Tour," featuring Ariana Grande (Fortnite), Charli XCX (Roblox), Blackpink's "The Virtual" (PUBG Mobile), the "Twenty One Pilots Concert Experience" (Roblox) and "Justin Bieber — An Interactive Virtual Experience" (Wave).
Featured on Aximetria
Curve DAO Token
Curve DAO Token
Market Cap is $541,726,213.

The total CRV supply is 3.03 billion tokens, the majority of which (62%) are distributed to liquidity providers. The remainder is divided as follows: 30% to shareholders, 3% to employees and 5% to a community reserve. The shareholder and employee allocations come with a two-year vesting schedule.

Curve is a decentralized exchange for stablecoins that uses an automated market maker (AMM) to manage liquidity.

Launched in January 2020, Curve is now synonymous with the decentralized finance (DeFi) phenomenon and has seen substantial growth in the second half of 2020.

In August, Curve launched a decentralized autonomous organization (DAO), with CRV as its in-house token. The DAO uses the Ethereum-based creation tool, Aragon, to connect multiple smart contracts used for users' deposited liquidity. Issues such as governance, however, differ from Aragon in their weighting and other respects.
Crypto Regulation Updates
Uzbekistan blocks access to foreign crypto exchanges
Read more
Canadian regulatory council builds new preregistration filing for crypto trading platforms
Read more
Bank of Finland governor states digital euro could facilitate pan-European services to consumers
Read more
Analysts Talk
The first half of 2022 brought many challenges to the crypto industry. The rising interest rates, inflation and economic uncertainty caused by Russia's invasion of Ukraine, severe waves of crypto hacking created a perfect storm for TerraUSD implosion, and then, Crypto winter.

But the industry is only in its infancy and constantly evolving. That's a big part of why every new Bitcoin or Ethereum high can be easily followed by huge falls.

So what is going to happen with crypto in the second half of 2022? Let's hear what crypto analysts have to say about it.
  • David Carlisle
    David Carlisle is vice president of policy and regulatory affairs at Elliptic. Before joining Elliptic, David worked for the U.S. Department of the Treasury, including in the Office of Foreign Assets Control (OFAC).

    #1 More regulation in DeFi

    "DeFi developers and those participating in the ecosystem will seriously need to consider working with regulators on compliance issues if they want their projects to succeed.

    The Tornado Cash saga has shown that the costs of failing to factor regulation into DeFi development are now too great to ignore.

    Compliance activities inevitably come with costs too, but as the institutionalization of DeFi looks increasingly inevitable, it is those who actively look to embrace regulatory compliance as they build out the DeFi ecosystem that will tread the path to growth as others fall to the wayside."
  • Ben Weiss
    Ben Weiss is the CEO and co-founder of CoinFlip, a cryptocurrency buying platform, and crypto ATM network

    #2 Broader Institutional Adoption

    "...What we're looking at is institutions getting involved in crypto, whether it's Amazon or the big banks. A huge retailer like Amazon could "create a chain reaction of others accepting it, and would "add a lot of credibility."
  • Neil Dundon
    Neil Dundon is a blockchain recruitment firm CryptoRecruit founder

    About Neil
    #3 Prioritization of Security

    "There's always been a demand for security auditors [...]

    But since DeFi apps have been out there, there has been quite a big increase in demand for security audits across the space because one small vulnerability in the protocol can potentially lead to the loss of hundreds of millions of dollars."
Subscribe to receive bi-weekly Crypto Market Newsreel by Aximetria and stay up-to-date with the most relevant and influential updates about cryptoverse.

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
In case you missed one of our previous digests, here's a link to the list of all Crypto Market Newsreel issues

The AML policy of Aximetria GmbH complies with the following laws and regulations of the Swiss Confederation.
Federal Act on Combating Money Laundering and terrorist financing of 10 October 1997

Ordinance on Combating Money Laundering and Terrorist Financing of 11 November 2015

FINMA Circular 2016/7 on "Video and online identification" of 3 March 2016

Regulations of the Self-Regulatory Organisation pursuant to the Anti-Money Laundering Act VQF Financial Services Standards Association regarding the Combating of Money Laundering and Terrorist Financing of 28 September 2015
VQF-Circular 2016/1 concerning Applicability of regulations issued by FINMA of 14 June 2016

VQF information leaflet for the engagement of third parties for the performance of duties of due diligence and / or as AMLA Special Department

VQF Information leaflet for issuing internal directives

Swiss Criminal Code of 21 December 1937
© 2022
Aximetria GmbH
Dammstrasse 16, 6300
Zug, Switzerland
Aximetria is a VQF SRO member (ID 100637). VQF is officially recognized by FINMA.