Autor Cointelegraph By Stephen Katte

19 celebrities called out by consumer watchdog group for shilling NFTs

Consumer watchdog group Truth in Advertising (TINA.org) has called out 19 celebrities for allegedly promoting non-fungible tokens (NFTs) without disclosing their connection to the projects. The not-for-profit consumer advocacy organization said on their website they investigated “celebrities who promote non-fungible tokens (NFTs) on their social media channels”, finding that “it is an area rife with deception.”Among the star-studded list are sports stars Floyd Mayweather and Tom Brady, music icons Eminem and Snoop Dog, and several actresses, including Gwyneth Paltrow, all of whom have been sent letters urging them to immediately disclose any material connections they have to NFT companies or brands they have promoted, stating:  “The promoter often fails to disclose material connection to the endorsed NFT company.” NFTs are digital certificates stored on the blockchain proving ownership of a digital or physical asset, often an artwork, with many high-profile projects often attracting celebrity endorsement and promotion. While no real legal penalty has been attached, TINA.org noted that it sent letters to the celebrities involved on Aug. 8 outlining their grievances and advising them of the potentially harmful effect shilling NFTs can have on the public.One of the group’s primary concerns outlined in the letters is that the possible financial risks associated with investing in such speculative digital assets are not being disclosed.TINA.org previously sent letters to Justin Bieber and Reese Witherspoon’s legal teams on June 10 for promoting NFTs on their social media accounts without disclosing their connection to the projects. Bieber’s legal team responded on July 1, denying any wrongdoing but stating the posts would be updated. While Witherspoon’s legal team contacted TINA.org on July 20, claiming the actress is not receiving any material benefits from promoting NFTs. Shilling could violate FTC guidelinesIn a blog post on their website, TINA.org wrote that the previously mentioned celebrities could be violating the Federal Trade Commission (FTC) rules regarding the Use of Endorsements and Testimonials in Advertising and the requirements for influencers. The advocacy group links to the FTC website which outlines that influencers must disclose any material connections to brands they are endorsing, and make the disclosures clear, unambiguous, conspicuous, and within the endorsement.So far, there has not been a publicized case of celebrities facing legal penalties for shilling NFTs or crypto. Though there are several ongoing class action suits, most famously against Elon Musk for his endorsement of Dogecoin, and Mark Cuban for promoting Voyager crypto products. A handful of other celebrities like Matt Damon caused a significant stir when he appeared in an ad promoting crypto products, which saw the actor relentlessly mocked and ridiculed for his involvement. Don’t listen to celebs: SECIn 2017, the U.S. Securities and Exchange Commission (SEC) warned investors about celebrity-backed initial coin offerings in a post on their website. “Investors should note that celebrity endorsements may appear unbiased, but instead may be part of a paid promotion.” Related: Snoop Dogg may be the face of Web3 and NFTs, but what does that mean for the industry?”Celebrities who endorse an investment often do not have sufficient expertise to ensure that the investment is appropriate and in compliance with federal securities laws.” According to the SEC, celebrities and influencers using social media to encourage their followers to purchase stocks or other investments could be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly.

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Scaramucci highlights key factors why crypto market will soon recover

Founder and managing partner of Skybridge Capital, Anthony Scaramucci, has an optimistic outlook for the future of crypto markets, advising investors to “see through the current environment” and “stay patient and stay long term.”In an interview with CNBC, the hedge fund manager spoke about his belief that several recent developments in the crypto space could spark “a lot more commercial activity.”In particular, he highlighted the ever-improving Lightning Network, the two-layer payment protocol layered on top of Bitcoin (BTC), BlackRock’s partnership with Coinbase, and their subsequent establishment of a BTC Private Trust Fund as positive signs for the future. Finally, CEO Larry Fink is seeing institutional demand for digital assets. Otherwise, he wouldn’t be setting up those products, and he wouldn’t be teaming up with Coinbase.”I just want to remind people that there are only 21 million Bitcoins out there, and you’ll have a demand shock with very little supply,” he added. Ethereum Merge on the horizonScaramucci cited the upcoming Ethereum (ETH) Merge scheduled for Sept. 15, which will change the network’s consensus mechanism to proof of stake, as an event that could affect the market price of the second largest cryptocurrency.In his opinion, traders are buying the cryptocurrency based on the potential positives the merger could bring, but he also notes they could turn around and sell just as fast. “A lot of traders are probably buying that rumor; they will probably sell on the news of that merger,” he said, add that “I would caution people not to do that; these are great long term investments,” he added. Recovery slow but steady over the last monthDespite the ongoing crypto bear market, many top cryptocurrencies have posted modest gains. BTC is up 20% in the last month to sit at $ 24,959 USD at the time of writing, while the price of ETH has surged a hefty 62% to $1999 USD, according to data from Scaramucci noted that he’d seen a resurgence of investor interest, and with better-than-expected inflation numbers in July, he believes the global economy can return to its strong 2019 Quarter 4 status within 6 to 12 months.Overall, Scaramucci has a positive outlook for the crypto market and cautions investors to take care with knee-jerk reactions to bad news and emotion-based trading.His firm believes that BTC could see an unprecedented upswing over the next six years. “If we are right, if BTC goes to $300,000 USD a coin, it will not matter if you bought it at $20,000 USD, $60,000 USD; the future is upon us; it’s happening sooner than I thought,” he said. “If you’re out of the market for the ten best days, you’ve reduced your return from a 7.5% return to a 2% return; I don’t want us to start herking and jerking the portfolio based on emotion.””I think that’s the message I’m trying to send to investors; just relax; we see a pretty optimistic scenario for BTC, ETH, ALGO and Solana (SOL) over the next 12 to 24 months, he added.Scaramucci mentioned his firm has a position in ETH competitor Algorand (ALGO), but by far their two most significant positions are still in BTC and ETH.

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21-year-old got ‘thought-provoking’ questions after teaching crypto to old folks

When assisted senior living home The Preston of the Park Cities approached Owen Robertson to hold a course on crypto, NFTs, and the Metaverse for their residents, the 21-year-old didn’t expect how quickly they’d pick up on the complex topics. Speaking to Cointelegraph, the Quai Network marketing associate, board member of the Mccombs blockchain initiative, and guest lecturer at the University of Texas said he was more than eager to assist when he was first approached to put a class together.”A senior living community has almost no exposure to the crypto ecosystem unless their grandchildren tell them about it.”The 21-year-old found that throughout the lecture, residents were mostly quiet as they learned about an industry that even the experts have trouble keeping up with, but in the end, he was left impressed with how fast some attendees picked up the complex topics.”I got some thought-provoking questions at the end from the residents wanting to learn more about the technology, which was awesome to see.” The Preston of the Park Cities offers a wide variety of activities through their Watermark University program, from knitting, music therapy; traditional exercise, and fitness to gardening, yoga, Tai Chi, and meditation. However, the idea for a lecture on crypto, NFTs, and the metaverse is a relatively new addition to their lineup. Debra Dickerson, Director of Community Life at The Preston at Park Cities told Cointelegraph that one of the main goals was to help residents improve their overall digital security.“In the current news cycle, we are often seeing stories about these subjects but even I have a hard time truly understanding what each of these entities is.”“We wanted to bring in an expert to provide a basic understanding of these concepts while also making them aware of the dangers technology can bring, how to identify internet scams looking to take advantage of seniors, and how to improve overall digital security.”Robertson said he wanted to run the course as he knew that senior citizens are often “extremely vulnerable to scams.” “So I wanted to ensure that, before talking about the positives in the later sessions, I covered all of the negatives such as the numerous hacks and exploits that have happened over the years,” explained Robertson. “After hearing the lecture and my recommendations, the residents concluded the risk outweighs the potential benefits, which was the point of the class,” he added.Twitter response divided Despite Robertson’s good intentions, the reaction on Twitter was somewhat polarized, with some airing concerns that he may have been swindling the senior citizens, while others, who were there, were won over. I was skeptical of the class but was impressed with the advice he gave. No scammer vibes. To sum up, he said he wouldn’t recommend they invest in crypto bc it needs 5-10 years for “the dust to settle.” But if they really want to, he’d only recommend Bitcoin, nothing else.— Natalie Walters (@NatalieReporter) July 30, 2022Regardless of what the crypto community has said about the course, the residents appear keen to learn more, says Robertson. “The residents seem very interested and are looking forward to participating in the next two classes taking place this summer,” said Robertson, adding he’s already been asked to teach two more classes, diving into more specific topics like the history of Bitcoin, NFT’s and the Metaverse. “My hope is that over time, education about the original values that Bitcoin and Quai were founded with will help deepen the public’s understanding about the technology and make it more approachable.” As a bonus, attendees will even get to walk away with their own NFT of the selfie taken in the first lesson.Pictured: Owen Robertson’s ‘selfie’ that will soon become an NFT

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Cross-chain bridge RenBridge laundered $540M in hacking proceeds: Elliptic

Cross-chain bridges have been the target of more than a few hacks this year, but new data from blockchain analytics provider Elliptic alleges one has been used to launder over half a billion dollars in ill-gotten crypto assets. According to an Aug. 10 report, crypto bridge RenBridge has facilitated the laundering of at least $540 million in proceeds of crime since 2020 through a process known as chain hopping — converting one form of cryptocurrency into another and moving it across multiple blockchains.Elliptic said that decentralized cross-chain bridges provide “an unregulated alternative to exchanges for transferring value between blockchains.”Rogue states and hacker groupsFor the most part, cross-chain bridges or blockchain bridges are used for legitimate purposes, enabling users to move cryptocurrencies seamlessly across blockchain networks. Users typically deposit their tokens from one chain to the bridge protocol, which is locked into a contract, then the user is issued the equivalent of a parallel token in another chain. However, Elliptic noted these bridges have also been used by ransomware gangs, exploiters, and hackers to launder proceeds of crime, with RenBridge accounting for at least $540 million of laundered proceeds since 2020. Most recently, at least $2.4 million in crypto assets stolen during the Nomad hack on Aug 2 went through the cross-chain bridge, according to the firm. Elliptic also noted that assets from decentralized finance (DeFi) services worth at least $267.2 million have been laundered using RenBridge in the last two years, while a portion of the $80 million stolen from Liquid Global exchange last year, allegedly by North Korea, has passed through RenBridge. The Conti ransomware group, which famously attacked the Costa Rican government back in June, has also laundered over $53 million through RenBridge so far. Authorities concernedElliptic noted that blockchain bridges such as RenBridge poses a challenge to authorities trying to clamp down on individuals and groups using the emerging technology for illicit activities. “Blockchain bridges such as RenBridge pose a challenge to regulators since there is no central service provider that facilitates these cross-chain transactions,” it said. Related: Is there a secure future for cross-chain bridges?In a Jun. 30 status report from the Financial Action Task Force (FATF), the intergovernmental organization highlighted increasing risks associated with “chain hopping,” particularly in the DeFi space:“The rapid growth and evolution of the Defi sector is a cause for concern as it could cause risks to accelerate and proliferate.”

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KBW 2022: Crypto.com hits key regulatory milestone in South Korea

Crypto exchange Crypto.com says it achieved a key milestone in South Korea after securing two local companies, giving it access to crypto and payments registration in the country. The news came during Korea Blockchain Week 2022 after the company announced it acquired payment service provider ‘PnLink Co. Ltd.’ and virtual asset service provider ‘OK-BIT Co. Ltd.’The move means they have now secured Electronic Financial Transaction Act and Virtual Asset Service Provider Registration in South Korea.We’re excited to share that we’ve achieve another key regulatory milestone:EFTA + VASP registration in South Korea https://t.co/vCNztABJoG is committed to being the industry leader in regulatory compliance.Full Details https://t.co/5D9hVQIDAl pic.twitter.com/kWjy7XaK4r— Crypto.com (@cryptocom) August 8, 2022Virtual Asset Service Provider registration will allow Crypto.com to provide crypto asset exchange and custody services. While Electronic Financial Transaction Act registration keeps them in compliance with the law regarding the safety and reliability of electronic financial transactions.However, the company did not disclose whether this means it can offer its full suite of crypto trading services in the country, or if there are other requirements needing to be fulfilled. Crypto.com CEO Eric Anziani, who presented at the conference also confirmed the announcement separately on Twitter on Aug. 7, stating: “Today we announced that we have secured both payment and crypto registrations in South Korea, one of the most advanced #crypto market globally” In a press statement, General Manager Patrick Yoon said: “We believe our services can not only help further evolve and empower commerce in Korea but also support the greater creation and development of our Web3 ecosystem.”The announcement follows Crypto.com receiving in-principle approval for a Major Payment Institution License from the Monetary Authority of Singapore and provisional approval of its Virtual Asset License from the Dubai Virtual Assets Regulatory Authority.They also have registration in Italy from the Organismo Agenti e Mediatori (OAM), in Greece from the Hellenic Capital Market Commission, and Cyprus from the Securities and Exchange Commission.

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