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The 5 strangest tales of the trade in 2022

The 5 strangest tales of the trade in 2022

admin December 24, 2022 Cryptocurrency News
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From Terra to FTX, 2022 has given us many bizarre crypto tales. Whereas buyers have been enduring a bear market that noticed the crypto trade sink beneath the $1 trillion market capitalization mark, adoption within the house has been rising, and previous mysteries have been lastly solved.

From the unimaginable quick squeeze of a bankrupt firm’s token to previous anti-crypto arguments utilized by a significant central financial institution, we’re getting bizarre with 5 tales the very best fiction writers couldn’t dream up.

“Comedic rapper” charged over Bitfinex hack

Again in 2016, standard cryptocurrency trade Bitfinex suffered a significant safety breach that noticed attackers steal 119,756 Bitcoin (BTC), value roughly $72 million on the time. It was one of many largest crypto hacks in historical past, and though Bitfinex continued working, its fame was broken for years to come back.

This 12 months, Heather Morgan, recognized by her rap identify “Razzlekhan,” and her husband Ilya Lichtenstein have been arrested by the Federal Bureau of Investigation for allegedly conspiring to launder crypto related to the Bitfinex hack.

Throughout a court docket look in New York, the pair proclaimed their innocence and have been launched on multimillion-dollar bonds. The bizarre a part of this story is the main points surrounding Morgan’s work as a “comedic rapper” and social media influencer. One in all her songs even says it’s devoted to “the entrepreneurs and hackers, all of the misfits and sensible slackers.”

Morgan, who calls herself the “crocodile of Wall Road,” was labeled a grasp of “deceit and deception” by federal authorities. Whereas her residence was being searched, Morgan allegedly requested federal brokers for permission to retrieve her cat from beneath the mattress and, whereas doing so, tried to lock her cellphone.

Morgan and Lichtenstein reportedly traveled to Ukraine in 2019 to achieve false identities and create pretend passports, and have “established monetary accounts” in Ukraine and Russia.

She was a daily contributor to Forbes. The day earlier than the Bitfinex hack, she posted an image subsequent to Lichtenstein with a caption saying she is going to “all the time love entering into hassle w/ this loopy man.”

Commenting on Morgan and Lichtenstein’s arrest, Dymtro Volkov, head of world improvements at crypto trade CEX.io, informed Cointelegraph that with the right technical assets, “it’s attainable to trace the movement of most funds transferring on a blockchain community” and that “hiding an enormous quantity of stolen funds is definitely fairly a posh activity.”

Notably, the pair isn’t being charged with the hack however laundering the stolen funds. The sordid particulars of the story have even caught the curiosity of filmmakers. Hulu is producing a true-crime restricted sequence about Morgan’s life, and Netflix has ordered a docuseries on the story.

Bankrupt Celsius Community’s CEL token surges 4,000%

Shortly after cryptocurrency lending platform Celsius Community filed for chapter, the worth of its native utility token, CEL (CEL), jumped by more than 4,100%. In solely two months, the worth climbed from a backside of $0.093 to a close to $4 excessive.

The surge got here amid rumors that Ripple, an organization engaged in a authorized battle with the USA Securities and Change Fee, may take over Celsius’ belongings. Different rumors recommended Goldman Sachs deliberate to amass Celsius for $2 billion.

Merchants organized an enormous quick squeeze. Quick squeezes happen when an asset’s value rises abruptly, forcing quick sellers to purchase again the asset at a better value to shut their positions.

The quick squeeze was attainable as a result of a freeze on Celsius token transfers considerably decreased the circulating provide of CEL.

Click on “Accumulate” beneath the illustration on the high of the web page or follow this link.

On the time of the quick squeeze, Cointelegraph reported that FTX had about 5.1 million CEL tokens, amounting to 90% of the entire circulating provide on exchanges.

It’s at the moment believed merchants on FTX pulled off the quick squeeze, however deleted tweets counsel that the origins of the motion is probably not absolutely understood, and a few imagine Alameda Analysis was instantly concerned. We do know that at the very least some merchants are nonetheless trying to get a CEL quick squeeze going once more, even after the token dropped to $0.50.

Binance’s letter of intent

Binance’s shocking letter of intent to amass the collapsing FTX trade is one other bizarre story of 2022. On the time, many in crypto believed FTX was a solvent, well-run firm. When Binance introduced its intent to liquidate its holdings of FTX Token (FTT) following hypothesis concerning the solvency of FTX, what was seen as a rivalry between Binance and FTX quickly became a possible buyout nobody was anticipating.

As FTX’s solvency was hardly being questioned, CEO Sam Bankman-Fried introduced an “settlement on a strategic transaction” with Binance. It was a weird and unexpected revelation as a result of, till that time, Bankman-Fried had dismissed issues concerning the solvency of FTX.

Binance CEO Changpeng Zhao added to these issues when he tweeted, “This afternoon, FTX requested for our assist. There’s a vital liquidity crunch. To guard customers, we signed a non-binding LOI, intending to totally purchase FTX.com and assist cowl the liquidity crunch. We will likely be conducting a full DD within the coming days”.

The deal fell by way of the subsequent day after Binance carried out its due diligence, with the explanations turning into clear quickly after.

European Central Financial institution spreads FUD

In late November, the European Central Financial institution (ECB) revealed a weblog publish through which it argued that Bitcoin’s restoration from $17,000 to $20,000 was probably an “artificially induced final gasp earlier than the street to irrelevance.”

The ECB mentioned that Bitcoin is “not often used for authorized transactions” and that “actual Bitcoin transactions are cumbersome, sluggish and costly.” The central financial institution daringly wrote that Bitcoin has by no means been used “to any vital extent for real-world authorized transactions.”

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In line with the ECB, Bitcoin has benefited from “waves of latest buyers” whereas not being appropriate as an funding. It doesn’t generate money movement or dividends, nor can it’s productively used or “present social advantages.”

The assertion argues that blockchain expertise has “created restricted worth for society” and that the “Bitcoin system is an unprecedented polluter.” It additionally recommended that cryptocurrency promotion bears a “reputational threat for banks.”

Each level the ECB introduced up has been used to assault the cryptocurrency group, and each single level has been rebuffed.

The ECB has recycled a number of crypto myths which were used to hold the industry back. The publish comes because the ECB accelerates progress on growing a digital euro. One of many publish’s authors, Ulrich Bindseil, has authored quite a few posts on central financial institution digital currencies.

In addition to the recycled myths, what’s bizarre is the ECB’s unclear angle, as many don’t think about CBDCs to be competing with cryptocurrencies, which are sometimes seen as a approach to exit the shortcomings of fiat forex techniques.

Talking to Cointelegraph, Anton Bukov, co-founder of 1inch Community, mentioned the ECB’s publish was good for the cryptocurrency group, because it means the “authorities got here to the second and even third stage of Gandhi’s thought: First they ignore you, then they snigger at you, then they combat you, you then win.”

Central African Republic’s crypto plan

The Central African Republic (CAR) grew to become the second nation to undertake Bitcoin as a authorized tender earlier this 12 months, permitting round 5 million residents to make use of the flagship cryptocurrency alongside the nation’s fiat forex, the Central African CFA franc.

The transfer got here after Central African Republic President Faustin-Archange Touadéra signed a invoice into regulation establishing a regulatory framework for Bitcoin as authorized tender. Whereas the crypto group initially celebrated the transfer, the bizarre facet of this quickly grew to become obvious.

Though the CAR is a mineral-rich nation, its individuals are among the many poorest on the planet. It has been devastated by a decade-long civil warfare, and it’s estimated that 9 out of 10 residents don’t even have entry to the web. CAR’s determination was accompanied by little to no rationalization, with President Touadéra tweeting a easy “extra to observe.”

The tweet was referring to an anouncement concerning the nation’s “visionary” plan to create a “incredible alternative for anybody who believes in crypto investing.” That chance is the Sango mission, which seems to now be an preliminary coin providing for the nation’s CBDC.

The mission claims that the nation’s treasury can have a devoted Bitcoin reserve and permit residents to have a “voice and probability to form the longer term” by way of a governance system. Citizenship may be acquired by locking mounted collateral in Sango. Different advantages embrace e-residency, land possession and 0% earnings tax for digital belongings.

Whereas attracting international funding is an clever transfer from CAR, a Bitcoin-based preliminary coin providing from a war-torn nation is a bizarre growth. CEX.io’s Volkov informed Cointelegraph that cryptocurrencies are “nicely positioned to assist rising economies fill gaps within the providers their home monetary techniques are missing” and will assist join home monetary techniques to world markets. Volkov added that the transfer might assist the nation’s economic system:

“Making crypto authorized tender, or at the very least making a authorized framework that defines its utilization, permits monetary firms to introduce low-cost and quick monetary providers that prospects can entry even with unreliable entry to the web.”

He additionally mentioned cryptocurrencies can have a “vastly optimistic impact on international locations with growing monetary techniques trying to take part within the world economic system.”

The tales coated on this article make it clear how unpredictable the cryptocurrency house may be throughout bear and bull markets. If something, anybody following what’s occurring is having fun with a rollercoaster journey they are going to always remember.