Connect with us

Crypto Research

Crypto VC becomes so chaotic

Published

on

Did you know you can earn crypto through Honeygain now? Jumptask has partnered with Honeygain to boost your passive income! You can earn more than a 50% bonus through crypto! Check out here for the announcement and join here to earn your $5!

Nothing is as it seems on the surface in recent market. For example, three Arrows Captial (3AC) worth $2.8B was liquidated, and co-founders ran away while filing a lawsuit to against their own company. But this will only be the tip of the iceberg for the crypto industry at large. On one side are those who see opportunity in cryptocurrency; on the other are those intent on destroying it. I will share some changes that will affect the blockchain and cryptocurrency in general as a result of December’s massive purchase in virtual assets by a third-party organization known as “Crypto VC”. 

December’s massive purchase in virtual assets by a third party organization known as “Crypto VC”

Crypto VC isn’t a new concept. Back in December 2017, there were VCs were blow up ever since.

For the first time in history, a public person has bought and sold virtual assets in person. This is amounting to the largest private sale of virtual assets to date. This transaction, which took place in New York City on December 3rd, marks a new milestone in the history of digital assets. The total investment amount involved in this deal is believed to be in the range of $200 million – $300 million. The motivation for this investment can be found in the style of the investments made: most notably, efforts by the investors to clean up their act.

Davan Megawal and the crypto VC scam

Back in May, One97 Capital – the investment vehicle of digital assets manager and investor Davan Megawal – bought complete control of IcoAward, a cryptocurrency fund focused on issuing digital currency. But this is just one incident in a long list of misdirection, misdirection, and misdirection by the fund management. While the bought-and-then-sold-on activities of Megawal and the fund managers are not covered in the facts about the purchase of IcoAward, the activities of the distributed ledger technology (DLT) startup Alexa, which was the core of the deal, are.

The Blockchain and Cryptocurrency Scams of 2017

Blockchain and cryptocurrency are inextricably linked. The first is a technology behind a wide range of industries – financial services, media, tech, insurance, etc. The second is a new and emerging branch of information technology that can support these technologies. The blockchain is a decentralized, distributed, and public digital ledger that can record transactions efficiently and securely. The distributed ledger technologies – MLS, PPC, and SPV – are the latest in a long line of techniques that have been developed to support this new technology.

How to Protect Yourself From VC Investments

There are a few things that you can do to protect yourself from potential conflicts of interest in investments. Some people are going to benefit from investing in companies that have ties to certain developers and investors in the blockchain and cryptocurrency fields. A good example is Facebook’s relationship with Vitalik Buterin, the co-founder of the Bitcoin Foundation, which has been a prominent voice in calling for an end to the digital gold standard. But when Andreea Barys, a former employee at Facebook, became involved in the development of the DAO, a project that was closely associated with Buterin and other prominent blockchain and cryptocurrency developers, she became a prime example of potential conflict of interest.

What is a Crypto VC Investment?

A third party makes a crypto VC investment in exchange for funding the development of a new technology. There are several types of investments that can be made with cryptocurrencies – some are made as a investment and some are made as a reward for investing. What makes a crypto-VC investment different from other forms of funding is that it’s made by a third party. This is also the reason that you should carefully evaluate every investment opportunity with a view to eliminating any potential conflicts of interest.

Can’t beat luck in investing? Here’s how

A few things can prevent you from being a victim of the largest crypto-VC investment scam on record. Read on to learn about some of the most significant changes that will affect the blockchain and cryptocurrency industry in general as a result of the massive investment in virtual assets by a third party organization known as “Crypto VC”. Be sure to keep these major issues in mind when evaluating investments: 

– Is this investment for the right person? 

– Is this investment worthwhile for the right reasons? 

– Is the investment appropriate for my personal finances?

Summary

A variety of changes will affect the blockchain and cryptocurrency industries in general due to the purchase of cryptocurrency by a third party. The most significant change will be the creation of a dedicated regulatory authority – known as a “Decentralized Autonomous Organization” (DAO”) – to manage and regulate the new industry. Additionally, the introduction of a new “blockchain-based” technology called the “Decentralized Autonomous Organization” (Dao) will allow the industry to shift away from a centralized system and into a newer and more agile model. To make sure that you’re on the right track with your investment decision, stay current by following these steps: -evaluate the pros and cons of every investment opportunity with a view to eliminating any potential conflicts of interest. 

Keep in mind that each investment opportunity is different and that this is only the tip of the iceberg. You can protect yourself from potential conflicts of interest by following these steps: 

– Establish clear and consistent investment goals. 

– Only invest in companies that have a clear investment objective. 

– Don’t invest in companies that have any connection to illegal or unethical activities. 

– Don’t invest with funds that you’re not completely sure about.

Buy me a coffee here if you want to support my writing.

Photo by Towfiqu barbhuiya on Unsplash

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Crypto Research

The Future of Machine War II

Published

on

In late 2021, I wrote an article about A.I. vs. Blockchain. I realized it was closer than I expected.

https://medium.com/@xuanling11/artificial-intelligence-vs-blockchain-the-future-of-machine-war-b685d208ba20?sk=874af90c7acbe857fa004c0ebe0d5e28

Web2 is leading a future of technological centralism. 

The way we see the world in ancient is what we saw became what we believed. Later, the enlightenment process helped humans realize what they had seen was disguised by the nature principle. Once we tested our assumption and received accurate results, we thought we had mastered the nature principles. Yet, we did not make the world better than we thought we could. 

We are living in a world in which companies know more than you than yourself. Companies can likely tell you what you should believe without letting you know. 

The secret weapon that companies like Google invented is A.I. or Artificial Intelligence. 

If A.I. can think like a person, it can easily replace you! Since companies got all your data, you freely offer them by using their free services, and they can replace you one day without you realizing it. 

Without all conspiracy theories behind what Google may or will secretly develop, A.I. reaching consciousness is … impossible.

If it does, Google has successfully made a human – dumb!

The most advanced A.I. – Tesla Autopilot Program cannot distinguish objects between humans and other moving objects during driving.  

Using technology makes people dumber than they think because it takes away your consciousness – the ability to think uniquely!

Blockchain is the future of decentralization.

We need a peer-to-peer system to regain consciousness and break the chain from Web2. 

It gives individuals the power to rethink information.

Think about today’s media; all information is filtered to offer readers without any surprise. News is data that Web2 selected specifically for you to read. 

We need a decentralized system so that you can receive unfiltered information and gives you a surprise that sparks ideas of imagination.  

Web2 is afraid of the blockchain because they are too big to fail. 

 They mimic the blockchain by creating a centralized node system – social media network. 

It is a net growing outward through a single point. Only the problem is that connection is facilitated by technology. And the biggest failure is such technology has a single point of failure problem. 

And they cannot escape the law of economics – the law of diminishing. So we will see Web2 grow slower due to the law of diminishing that they require more data with few increments of advancement through A.I. without any breakthrough because A.I. is a deterministic system that works with a lack of randomness. 

In Web2, they assumed everyone was stupid, and they offered solutions to everyone.

In Web3, everyone is good and should anticipate solving a problem together.

If you enjoy reading my articles, buy me a coffee here.

Photo by Aideal Hwa on Unsplash

Continue Reading

Crypto Research

Financial sanction to mixers

Published

on

Have you heard about financial sanctions from the US on virtual currency? At least, I have not yet. But the US Department of Treasury has issued sanctions on two crypto services: Blender.io and Tornado Cash.

To clarify, the US sanctions on tools but not target specific entities or groups of people.

So why bother to sanction something that the government probably won’t be able to sanction in the first place?

What is a mixer?

A cryptocurrency mixer, sometimes referred to as a tumbler, is a tool for money laundering. The sole purpose of the invention is to make transactions untraceable.

How to mix?

Even crypto is pseudo-anonymous, but it is traceable through your wallet address. A mixer is a black box service to filter your traceable wallet address into the untraceable wallet address.

How to wash your money clean in the traditional way?

https://dimensiongrc.com/the-stages-of-money-laundering/

The assumption is you will not get caught at each stage, and then you place your dirty money in a bank through companies and use the funds to purchase legal goods like houses or luxury goods.

There are mature regulations and rules to stop you from putting your dirty money into banks.

Digtial money landury

https://www.eurospider.com/en/know-how/compliance/211-what-is-a-cryptocurrency-mixer

A Crypto mixer or tumbler is a service to pool dirty digital currency in their favor and redistribute it into designated wallet addresses or addresses randomly generated. 

It is a challenge to stop transactions because there is no entry point for law enforcement to stop at each stage. 

https://home.treasury.gov/news/press-releases/jy0768

Ultimate Mixer

Tornado Cash is the king of the mixer. Unfortunately, there is just no way to trace transactions anymore. It is a smart contract with zk-SNARKs (zero-knowledge proofs) that does not require revealing a wallet address during transactions and ghostly distributed funds without leaving any traces.

This tool is the ultimate weapon that the government has to shut down, or there is no way to prevent transactions.

In Conclusion

Let’s change the future – legally. 

If you enjoy reading my articles, buy me a coffee here.

Photo by Espen Bierud on Unsplash

Continue Reading

Crypto Research

Why there is not crypto banking exist

Published

on

We have always heard about cryptocurrencies, crypto exchange, banking, and trading platforms, but we do not really grasp the idea of crypto banking. Crypto banking is a contradicted idea. If crypto is to replace banks and give users full control of digital money, why do you put your crypto into the bank? The new research paper argued that there are risks for banks to adopt crypto, but they did it anyway.

Banks want crypto

Cryptocurrency has a rough road at the beginning and continues to experience a bumpy road ahead. The institutional investors were watching its performance. In early 2017, institutional investors had opportunities to adopt crypto, but they found out the return of the investments was less than traditional financial assets. Regulations were not a concern for some individual institutional owners, but banks were conservative at the time. As a result, some investors adopted it in early 2018 than banks did. Then suddenly, the crypto market took off in 2020, leaving many banks to regret their decision in 2017. Many banks set up their digital investment group to rush into the market and increase prices. Of course, many of their investment positions are instead of shadow positions. It is unclear how much they have been invested in and what vehicles they took to invest in cryptos.

Crypto Exchange

Crypto exchange is a bank-like platform for crypto. Banks offered a place to purchase fiat currency. Crypto exchange did the same duty as traditional banks did. Since there was a gap between the crypto and banks, the crypto exchange took responsibility and offered crypto services. The crypto exchange took off after 2020, and they left banks in the dust. Then, crypto winter came in early 2022, and banks again hesitated to enter the crypto and started denouncing crypto usage, particularly in the Defi area. But interestingly, they tried to find ways to get into crypto without being directly exposed to cryptocurrencies—hint: through hedge funds.

How much banks exposure to crypto

We do not know how much banks have been exposed to crypto. We learned that the big Wall Street players were exposed to the services of the digital asset through State Street of their $41.7 trillion assets. Some have been exposed due to Luna’s collapse and 3AC bankruptcy. But again, no specific dollar amount was provided. 

Survivors

Since the crypto winter, institutional investors have been cautious about crypto exposure. However, crypto exchanges are the winner again. They are exposed to crypto and take risks more than banks do. As a result, they likely will weather the uncertainty. Furthermore, there is no need for crypto banking to handle your crypto assets since many such services will not survive long in the crypto environment. 

Crypto is resilience

Despite its fluctuating price and unsecured assets, crypto is resilient to phase out any bad business ideas and bad actors in the economy who wants to or try to dominate the market but who transfers risks to users to believe they are the one who should take responsibility for their carelessness. Unfortunately, those business models will not survive long.

If you enjoy reading my articles, buy me a coffee here.

Photo by Luke White on Unsplash

Continue Reading

Trending