Autor Cointelegraph By Brayden Lindrea

VCs pour $14.2B into crypto in H1 2022, but investments now slowing

Venture capital firms poured $14.2 billion into crypto across 725 deals in the first half of 2022, but big four accounting firm KPMG predicts investments will likely slow for the remainder of the year. According to a newly released KPMG report on Sept. 6, the largest investments in H1 2022 came from German-based crypto trading platform Trade Republic ($1.1 billion), digital asset custody platform Fireblocks ($550 million), crypto exchange FTX ($500 million), and Ethereum software company ConsenSys ($450 million).Authors of the report, including KPMG’s Global Leader of Fintech, Anton Ruddenklau, noted the investment figures for the first half of 2022 alone were already more than double all years prior to 2021, which “highlights the growing maturity of the space and the breadth of technologies and solutions attracting investment.”However, Ruddenklau said that over-investment during the record-breaking 2021 and first half of 2022, along with a looming potential recession, rising inflation, interest rates, and the Russia-Ukraine conflict would bring about a drop off in investment this year. Total global investment activity (VC, PE and M&A) in blockchain & cryptocurrency. Source: KPMG.KPMG’s prediction for a crypto investment downturn appears to already be borne out in data from July, with monthly inflows into the blockchain venture capital market declining 43% in the month, according to Cointelegraph Research. Ruddenklau expects the slowdown of crypto interest and investment to be particularly felt in retail firms offering coins, tokens, and NFTs. Alexandre Stachtchenko the KPMG France Director of Blockchain & Crypto Assets, stated in the report that “well-managed crypto companies with healthy risk management policies, long-term vision, and strong cost and risk management approach” will best position themselves to survive the current bear market.“Of course, some cryptos will die out — particularly those that don’t have clear and strong value propositions. That could actually be quite healthy from an ecosystem point of view because it’ll clear away some of the mess that was created in the euphoria of a bull market. The best companies will be the ones that survive.”Stachtchenko added that financial institutions have become increasingly interested in blockchain infrastructure solutions and stablecoins to capitalize on the operational advantages of distributed ledger technology.Related: Venture capital financing: A beginner’s guide to VC funding in the crypto spaceKPMG also expects further investment efforts in underdeveloped fintech markets, particularly in Africa. Efforts on this front have been made by crypto exchange Binance, which recently entered into early-stage talks with the Nigerian government to build a crypto-friendly economic zone with the aim to generate long-term economic growth through digital innovation.

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Ethereum domain names top Bored Apes on OpenSea's weekly chart

Ethereum Name Service (ENS) domain names have surpassed Bored Ape Yacht Club (BAYC) as the most traded asset on NFT marketplace OpenSea over the last seven days — seemingly ahead of the Ethereum Merge. According to OpenSea data, the weekly volume of the Ethereum domain NFTs eclipsed 2,249 ETH at the time of writing, beating out RTFKT Clone X (1,992 ETH) and Bored Ape Yacht Club (1,777 ETH).ENS domains are a distributed, open and expandable naming system on the Ethereum blockchain that allows users to turn a long string of keys for a crypto address into a single ENS domain such as “vitalik.eth.”This simplifies the complexity of copying and pasting a lengthy wallet address to send and receive crypto, as users only need to share their domain name like any other ordinary address or identification details.These domain names can be bought, sold and traded between users in the form of NFTs. The recent spike in ENS trading volume has seen the average price of ENS items increase 167% from 0.1454 ETH to 0.3895 ETH ($641), while daily volume has risen from 120.7 ETH to 1044.6 ETH.There are now over 2 million ENS items on OpenSea, spread amongst more than 508,000 owners, with total sales now sitting at 2,682 ENS domains sold.60-Day Average Price Change For ENS on OpenSea. Source: OpenSea.According to OpenSea, some of the most expensive ENS domain names are 000.eth, which was bought for 300 ETH and is on sale for 5,000 ETH, along with opensea.eth, crypto.eth, google.eth, and nike.eth.The strong start in September follows an impressive ENS sales month in August, which saw more than 300,000 new “.eth” registrations, and monthly revenue of 2,744 ETH, the third-highest month since ENS was founded in 2018.August 2022 stats for ENS- 301K new .eth registrations (total 2.17m names)- $4.7m in protocol revenue (all goes to the @ENS_DAO)- 2,744 ETH in revenue (3rd highest month)- 34K new eth accounts w/ at least 1 ENS name (total 540k)- >99% of OpenSea domain vol pic.twitter.com/utU8i4cBMT— ens.eth (@ensdomains) September 1, 2022The spike in ENS domain name demand comes around a week before the scheduled date of the Ethereum Merge, which is set for Sept. 15. Related: Ethereum Name Service registrations surge by 200% amid lower gas feesOn Sept. 4, Vitalik Buterin tweeted asked his 4.2 million followers what price tag a five-letter ENS domain name should hold over a 100-year period:What is a fair price that someone should have to pay to register and unconditionally guarantee ownership of a 5-letter .eth domain for 100 years?— vitalik.eth (@VitalikButerin) September 4, 2022

The poll found that 49.8% of the 91,130 voters went with “Under $100”, while 18.9% of voters thought “$10,000 or more” could be considered a fair price over a 100-year period. According to OpenSea, the average price of an ENS domain is 0.3207 ETH.

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74% of Ethereum nodes ‘Merge ready’ ahead of Bellatrix upgrade

As many as 73.5% of Ethereum nodes are now marked as “Merge ready” ahead of the upcoming Bellatrix upgrade for Ethereum on Sept. 6, according to data from Ethernodes. The Bellatrix upgrade is seen as one of the last necessary steps prior to the official Merge, which will see Ethereum transition to a proof-of-stake consensus mechanism between Sept. 10-20.To become Merge ready, Ethereum node operators must comply with the Bellatrix upgrade by updating its consensus layer clients prior to epoch 144896 on the Beacon Chain, which is scheduled to take place on 11:34:47am UTC on Sept. 6, 2022, according to the Ethereum Foundation. Percentage of Ethereum clients that are Merge Ready. Source: Ethernodes.However, with as many as 26.7% of nodes marked “Not-Ready” for the Ethereum Merge, Ethereum co-founder Vitalik Buterin and core developer Tim Beiko and has taken themselves to Twitter to push the remaining node operators updates their clients.Bellatrix is tomorrow Last chance to upgrade your node if you haven’t yet! We’re mergiiiing https://t.co/0VQ9zb6wjN— Tim Beiko | timbeiko.eth (@TimBeiko) September 5, 2022According to the Ethereum Foundation, node operators that don’t make the update prior to the Bellatrix upgrade will cause the Ethereum clients to “sync to the pre-fork blockchain,” warning: “[Node operators] will be stuck on an incompatible chain following old rules and will be unable to send Ether or operate on the post-Merge Ethereum network.”According to Ethernodes, most of the “Not-Ready” nodes are found on the geth client, who have yet to upgrade to Geth v1.10.23 or higher. Other Ethereum clients that require updating include Erigon, Besu, and Nethermind. Ethereum nodes are required to validate blocks and can be run by different Ethereum client software that varies in the programming language used and code base. All of my validators are merge ready — sassal.eth (@sassal0x) September 6, 2022

Following the Bellatrix upgrade, the last part of the Ethereum Merge will occur in what is called the “Paris event,” which will be triggered when the Terminal Total Difficulty (TTD) reaches 58750000000000000000000, which is estimated to occur around Sept 15. Related: The Merge Q&A: A triumph for Ethereum — or a disaster waiting to happen?Once the execution layer exceeds this TTD, the next block will be produced by a Beacon Chain validator. The finalization of this block will mark the complete transition of Ethereum’s blockchain to the proof-of-stake mechanism. According to the Ethereum Foundation, Ethereum users do not need to do anything with their ETH and Ethereum-based assets during the Merge but should be on the lookout for scams that suggest otherwise.

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Crypto app targeting SharkBot malware resurfaces on Google app store

A newly upgraded version of a banking and crypto app targeting malware has recently resurfaced on the Google Play store, now with the capability to steal cookies from account logins and bypass fingerprint or authentication requirements.A warning about the new version of the malware was shared by malware analyst Alberto Segura and treat intelligence analyst Mike Stokkel on Twitter accounts on Sept. 2, sharing their co-authored article on Fox IT’s blog. We discovered a new version of #SharkbotDropper in Google Play used to download and install #Sharkbot! The found droppers were used in a campaign targeting UK and IT! Great work @Mike_stokkel! https://t.co/uXt7qgcCXb— Alberto Segura (@alberto__segura) September 2, 2022According to Segura, the new version of the malware was discovered on Aug. 22, and can “perform overlay attacks, steal data through keylogging, intercept SMS messages, or give threat actors complete remote control of the host device by abusing the Accessibility Services.”The new malware version was found in two Android apps — “Mister Phone Cleaner” and “Kylhavy Mobile Security,” which have since amassed 50,000 and 10,000 downloads respectively. The two apps were able to initially make it to the Play Store as Google’s automated code review did not detect any malicious code. However, it has since been removed from the store. However, the 60,000 users who installed the apps may still be at risk and should remove the apps manually, observers have suggested. An in-depth analysis by Italian-based security firm Leafy found that 22 targets had been identified by SharkBot, which included five cryptocurrency exchanges and a number of international banks in the US, UK, and Italy.As for the malware’s mode of attack, the earlier version of the SharkBot malware “relied on accessibility permissions to automatically perform the installation of the dropper SharkBot malware.” But this new version is different in that it “asks the victim to install the malware as a fake update for the antivirus to stay protected against threats.”If installed, once the victim logs into their bank or crypto account, SharkBot is able to snatch their valid session cookie via the command “logsCookie”, which essentially bypasses any fingerprinting or authentication methods used.This is interesting!Sharkbot Android malware is cancelling the “Log in with your fingerprint” dialogs so that users are forced to enter the username and password(according to @foxit blog post) pic.twitter.com/fmEfM5h8Gu— Łukasz (@maldr0id) September 3, 2022

Related: Sneaky fake Google Translate app installs crypto miner on 112,000 PCsThe first version of the SharkBot malware was first discovered by Cleafy in Oct. 2021.According to Cleafy’s first analysis on SharkBot, the main goal of SharkBot was “to initiate money transfers from the compromised devices via Automatic Transfer Systems (ATS) technique bypassing multi-factor authentication mechanisms.”

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Nigeria, Binance in early-stage talks for crypto-friendly economic zone

The Nigerian government has held a preliminary meeting with crypto exchange Binance to potentially establish a special economic zone aimed at supporting crypto and blockchain-related businesses.According to a Sept. 2 post from the Nigeria Export Processing Zones Authority (NEPZA), the authority has held preliminary talks with Binance and technology infrastructure company Talent City to discuss the proposed digital city, referred to as a “Virtual Free Zone.”NEPZA managing director Adesoji Adesugba said the proposed zone will be a first in West Africa and act similar to Dubai’s virtual zones, which are designed to provide crypto-friendly laws, regulations, and tax incentives for crypto businesses.Professor Adesoji Adesugba (NEPZA MD/CEO), Sameera Kimatrai (Binance Senior Legal Counsel), Luqman Edu (CEO Talent City), Sikiru Lawal (NEPZA Director). pic.twitter.com/73scHU4hYE— NEPZA (@officialNEPZA) September 2, 2022Nigeria has one of the highest rates of cryptocurrency adoption worldwide, with over 22 million crypto owners according to Triple A.Adesugba said the zone would help develop Nigeria’s digital economy and “widen employment opportunities” for Nigerian citizens, stating: “Our goal is to engender a flourishing virtual free zone to take advantage of a near trillion dollar virtual economy in blockchains and digital economy.” The early-stage plans were discussed on Friday during a meeting between Adesugba, Binance Executive Director Nadeem Ladki, Talent City CEO Luqman Edu, and NEPZA director Sikiru Lawal in Dubai.Adesugba added that the move would be part of Nigeria’s economic development agenda, with the vision to further drive crypto adoption in the West African region. “We seek to break new grounds to widen economic opportunities for our citizens in line with the mandate of the Authority, the directive of the Honorable Minister and the economic development agenda of President Muhammadu Buhari,” he said. Related: Safe Space: A Guide to Special Economic Zones for Crypto, From China to SwitzerlandFueled by an inadequate financial system and unstable government policies and inflation, crypto adoption across Africa has continued to rise over the last few years. A recent CoinGecko survey found Nigerian residents to be the most crypto-obsessed nation, having searched the terms “cryptocurrency” and “buy crypto” more than any of the other 14 countries surveyed. Nigeria also launched eNaira in Oct. 2021 – the nation’s first central bank digital currency (CBDC), which is currently in its second phase and is aimed to drive financial inclusion by onboarding the unbanked citizens of Nigeria. Cointelegraph has reached out to Binance for more details about the discussions but did not receive an immediate reply. 

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