Autor Cointelegraph By Jesse Coghlan

Moody’s downgrades Coinbase due to bear: Warns it may not be the last

Credit ratings agency Moody’s has downgraded the Corporate Family Rating (CFR) and guaranteed senior unsecured notes of crypto exchange Coinbase, and stated that both ratings have been placed under review for further downgrade.The CFR, a rating assigned to reflect Moody’s opinion of a company’s ability to honor its financial obligations, was downgraded from Ba2 to Ba3 which is considered as below non-investment grade.Senior unsecured notes are a type of debt a company holds that is not backed by any assets and in the event of bankruptcy must be repaid before any others. Moody’s downgraded Coinbase’s from Ba1 to Ba2.Earlier in May, Cointelegraph reported Coinbase’s junk bonds tanked in response to an underwhelming first quarter and since the report, the bonds have continued to fall a further 9.5%.In its rationale for the downgrades, Moody’s highlighted Coinbase’s revenue model “is tied to trading volumes, transaction activity per user and overall crypto asset prices.” It said the steep price decline in crypto over the past months has caused customer trading activity to wane, which in turn caused weaker revenue and cash flow to the company.The uncertain environment forced Coinbase to layoff about 18% of its staff on June 14. But even with this measure, Moody’s said it expects Coinbase’s profitability to “remain challenged in the current environment”.Competition for customers has also been heating up in the United States after Binance.US began offering zero-fees spot trading for Bitcoin (BTC). The offer follows in the footsteps of trading platform Robinhood which pioneered no-commission crypto-trading in 2018.In a bid to attract users to the platform, on June 23 Coinbase added five new Ethereum (ETH) ERC-20 tokens plus the ability for users to send and receive some assets on the Polygon (MATIC) network along with USD Coin (USDC) on Solana (SOL).Related: Coinbase to shut down Coinbase Pro to merge trading servicesMoody’s said it could call out for further downgrades should crypto prices continue to fall and if trading volumes on the exchange remain the same or fall further. It will also look at whether the firm can reduce expenses, its ability to maintain talent as well as potential “crypto asset regulatory developments.”The ratings agency added that Coinbase’s ratings could be upgraded again in the future if it can generate a profit even during a bear market and diversifies its revenue through other streams not associated with trading and cryptocurrency prices, noting that crypto transaction-based revenue represented 87% of Coinbase’s net revenue in Q1 2022. Coinbase’s shares were up 13.4% to close at $58.88 on Thursday, but fell just over 1% in after hours trading. Year to date, its shares are down nearly 77%.

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A ‘very ambitious’ $100M Metaverse R&D hub is being built in Melbourne

Thailand based metaverse startup Translucia Global Innovation has partnered with the Australian software development firm Two Bulls and set aside an initial budget of $100 million to build a Metaverse Research and Development Center (MRDC) in Melbourne.Translucia is a subsidiary of art and entertainment company T&B Media Global which in October 2021 launched its “Translucia Metaverse” project, with a first stage investment of $283 million for the virtual world.Now, T&B are partnering with Two Bulls to build the MRDC to bring the project to life with a slated soft-launch for November this year.Two Bulls Founder and CEO James Kane told Cointelegraph that T&B undertook a worldwide search for a partner that could help realize the Translucia Metaverse project“There was an understanding there would need to be significant research and development,” he said. “It’s a very ambitious project.”A series of conversations between the two organizations this year resulted in the realization that Two Bulls’ best role would be in as a hub for research and development (R&D) to help build it.“We’ve been there really early on in the conversations around the innovative elements of this metaverse project. What it’s going to look like, what the experience is going to be and what sort of technology platforms it’s going to run on.”“The center itself is really an extension of what Two Bulls already does,” added Kane.Melbourne’s skilled local workforce and an R&D tax incentive of up to 45c for every eligible $1 spent helped seal the deal. “The R&D incentives we receive is a decisive factor in T&D setting up a center like this in Australia”What they need to researchA lot of new areas will need to be explored for the project not only in terms of hardware and software, but in the system’s economics and gamification also. Part of the project will focus on improving the energy consumption of the metaverse also.The MRDC will focus on the technology, creating demonstrations to get feedback from users and creating what he calls a “GDD”, or Game Design Document.“It’s much bigger than that because we’re really designing a whole world. It has to have a functional economy, it has to be properly moderated, it has to have all of these different components that is going to make it an enjoyable place to be.”Related: Metaverse could be worth $5 trillion by 2030: McKinsey reportDespite much work to be completed before the MRDC and the metaverse opens, Kane says there’s already plenty of interest. He gave the example of Magnolia Quality Development Corporation, a large Thai property development company who have already signed on to be a “galaxy”.“Within the metaverse there will be ‘galaxies’ and some businesses have already signed on to be galaxies within that larger metaverse […] T&B are having conversations with dozens of others and there’ll be announcements around that.”Kane said a notable difference to other metaverses like Decentraland and Sandbox was that the Translucia metaverse was committed to sustainability, and has a more people friendly vision. He discussed some of the concerns about the philosophy and vision of some other unnamed metaverses, saying:“A lot of metaverses are around profiteering and opportunism, whereas in this metaverse there really is a strong central vision around putting people first before coins, putting people before profit, and putting the environmental concerns before profit.”

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Crypto influencers allegedly weaponize conspiracies to fleece QAnon followers

Two QAnon-affiliated conspiracy theorist influencers allegedly caused their followers millions of dollars in losses by running a cryptocurrency pump-and-dump scheme.The pair reportedly persuaded their thousands of followers to invest in a portfolio of cryptos, presenting a misleading mix of conspiratorial and genuine content along with claims about institutions backing the tokens to generate hype and raise the price of the portfolio.The allegations are included in an investigation by Logically, a group of data scientists and developers. It reported the two influencers running the Telegram channels “WhipLash347” and the “Quantum Stellar Initiative” (QSI) coordinated to promote lists of Stellar (XLM) altcoins which have been marked as fraudulent by the Stellar network.WhipLash347 is a Telegram group with 277,000 followers and QSI has 35,000. They reportedly told their followers the cryptocurrencies would succeed based on their insider knowledge, claiming they had access to secret military intelligence.The publication said the two mixed conspiratorial content and misinformation to target those distrusting of mainstream financial and media institutions to give authenticity to the cryptocurrencies they promoted. The losses are believed to be in the millions, and Logically claimed one man committed suicide after losing $100,000 in the scheme.A user known as PatriotQakes, leads the QSI main channel, which has multiple regional affiliates. The ownership of the WhipLash347 account is believed to have changed hands more recently due to changed behavior.Rocky Morningside, a former admin of the QSI group told Logically he believes that “without doubt that WhipLash347, PatriotQakes, and QSI are scam artists,” who were promoting “pump and dumps.”Cointelegraph requested a response to the allegations from PatriotQakes, an account seemingly belonging to the person behind Whiplash347 and an admin of a regional QSI group regarding the allegations but did not receive a reply by the time of publication. Neither of the groups have publicly acknowledged or responded to the allegations.A former investor in one of the schemes using the name “Cutter” now runs a Twitter account aimed at exposing WhipLash347. He told Cointelegraph that he is a member of a Telegram group with 3000 other disgruntled investors and said of the person behind WhipLash347: “He’s created a huge list of crypto’s with now dead domains, as well as bogus white papers claiming to be affiliated with real companies. We’ve talked to so many of the coins’ real creators that he mimics through copycat assets who have to continually tell people WhipLash is full of shit.”Cutter says WhipLash creates trust with his followers through sharing similar political views, perpetuating the scheme by claiming “upcoming events” will cause the value of the assets to skyrocket.According to Cutter, WhipLash responded to the claims by saying all information is under non-disclosure agreements and anybody affiliated with the assets isn’t allowed to talk until the “event”.“There’s always a timeline, but when the dates pass and nothing happens, he creates new timelines. It’s never ending.”He also apparently claimed to be in communication with figures like Elon Musk, and said the crypto-friendly billionaire backs the cryptocurrencies WhipLash is promoting.Cutter said that anyone raising questions is kicked out of the group.“Anyone who questions his narrative is removed from his Telegram group, and he continues to rinse and repeat among his followers. As people exit, new people join. It needs to stop.”Related: Social media blamed for $1B in crypto scam losses in 2021

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BTC Markets becomes first Australian crypto firm to get a financial services license

Australian-based cryptocurrency exchange BTC Markets has become the first crypto company in the country to gain a financial services license.The license was issued by the country’s financial regulator, the Australian Securities and Investments Commission (ASIC), to BTC Markets’ sister company BTCM Payments. We have an exciting announcement to make: BTC Markets is the first Australian crypto exchange to successfully go through the full AFSL application process via our sister company, BTCM Payments!✅AFSL attained✅ISO Certified✅SOC 2 on the way!#crypto #bitcoin #finance— BTC Markets (@BTCMarkets) June 21, 2022An Australian Financial Services (AFS) license allows the holder to give advice, deal in, and create a market for a financial product. It also permits the provision of custodial or depository services, amongst other perks.While crypto and digital asset companies don’t require an AFS to provide services due to the lack of regulation in the country, BTC Markets says the move allows it to more closely bridge the gap between traditional finance and crypto while offering new products to its customers.It marks the end of an almost two-year wait for the firm for the AFS license, which was registered in August 2020.BTC Markets has certification from the International Organization for Standardization (ISO) for information security management and is certified by the country’s crypto industry body, Blockchain Australia.BTC Markets CEO Catherine Bowler said the license would prepare her exchange business for what she believes is impending regulation and complements its progress in obtaining a System and Organization Controls (SOC) 2 certification.Related: Binance Australia CEO: Regulations will establish higher standards in cryptoBTC Markets has established itself as a key player in the Australian crypto industry with $US4.7 million in daily volume, according to CoinGecko.  In February, the exchange signed a deal with the stock market trading platform SelfWealth to offer SelfWealth users access to trade Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Chainlink (LINK), and Uniswap (UNI) from June 30.Other exchanges have followed suit. Earlier this month, Australian crypto exchange Swyftx completed a $1.5 billion merger deal with online stock market investing platform Superhero.

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New video revives debate over Bored Ape Yacht Club's alleged 'racist' imagery

A video released by investigative YouTuber Philip Rusnack, known as ‘Philion,’ has revived the debate over whether Yuga Labs’ flagship Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection employs racist imagery and white supremacist esotericism.In the hour-long video released June 20 on YouTube, Rusnack laid out his case, claiming that BAYC is “one massive alt-right inside joke” using language, symbols, and memes from the anonymous image board website 4chan.He alleged the NFT images featured racist caricatures of Black and Asian peoples and drew comparisons between the symbology and language used by Yuga Labs and the BAYC with that used by the Nazis.For instance, an example widely used by supporters of the claims draws a comparison between the BAYC logo and the Nazi Totenkopf symbol used by the SS Panzer Division in World War II.BAYC logo (left) alongside the Totenkopf (middle) symbol with an overlay (right) to present the similarities. Source: gordongoner.comAt the end of the video, Rusnack makes a call to action, asking his viewers to pressure BAYC NFT owners to “burn” their token in a process where the NFT is sent to an unusable and unrecoverable wallet address.“I want every celebrity actor, athlete, and influencer to burn their f*cking ape. I want to make such a f*cking shit storm that everyone from Steph Curry to Post Malone to Jimmy Fallon is forced to act.”The claims of racist symbology within the collection have been a hot topic on social media this year but hit the spotlight when artist Ryder Ripps published a compilation of what he claims is evidence of Nazi imagery and antisemitism in early 2022.Ripps bought the domain gordongoner.com, the same pseudonymous moniker adopted by Yuga Labs co-founder Wylie Aronow to host a website that details numerous examples of the esoteric symbolism. The video details information acquired by Rusnack and the research conducted by Ripps.Rusnack says in the video there is a “point at which these similarities are no longer coincidences,” adding:“If I bring up one instance that highlights deliberate Nazi, fascist, or alt-right messaging, you may think to yourself, ‘I see it, but that’s a reach.’ So I ask you: What is your number? At what point do all of these examples become crystal clear in front of your eyes?”Without directly citing the controversy, Yuga Labs responded to some of the claims, tweeting in January that apes were used as many in crypto refer to themselves as such. Likely regarding the crypto-slang term “ape in,” used to denote when someone invests heavily into cryptocurrencies or projects with little prior research.A little a bit about us to start off the new year and what’s coming. 1. What’s the inspiration behind the name Yuga Labs? We’re nerds, and Yuga is the name of a villain in Zelda whose ability is that he can turn himself and others into 2D art. Made sense for an NFT company.— Yuga Labs (@yugalabs) January 3, 2022Addressing the BAYC logo, Yuga Labs said the purpose was to make the “club” look “ramshackle and divey” and on why they chose a skull:“We went with an ape skull to help convey just how bored these apes are – they’re ‘bored to death.’”A senior research fellow at the Anti-Defamation League’s (ADL) Center on Extremism, Mark Pitcavage, often cited as an extremism expert, said in a February interview with Input he saw no correlation between the logo and the Totenkopf and was quoted saying:“The Nazi Totenkopf is one very specific graphic design of a skull and crossbones, and the monkey skull resembles it in no way except insofar as all skulls resemble each other to a certain degree.”Pitcavage did agree, however, that traits and attributes of some NFTs were problematic such as the “hip hop” trait with a gold chain and the “sushi chef headband” being stereotypes of Black culture and a Japanese person, respectively.Related: Binance embarrassed after unveiling swastika-like emoji on Hitler’s birthdayOverall though, Pitcavage and another ADL researcher Carla Hill said the research complied by Ripps doesn’t point to a specific group of extremists.Ripps has faced allegations that his complied research is a publicity tactic to sell his own BAYC derivative NFT collection called “RR/BAYC,” featuring over 6,000 NFTs based on the original collection.Ripps says the collection is a satire and protest aimed to educate those about the BAYC’s alleged extremist ties. However, these allegations don’t present a counter-argument to the claims presented by Ripps in his research.Cointelegraph contacted Rusnack, Ripps, and Yuga Labs for comment but did not hear back before publication.[embedded content]

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