• Chainalysis released a report that showed 25% of tokens introduced in 2022 were scams.
• Many of these tokens were part of pump-and-dump schemes which involve artificially inflating prices and then running off with the money.
• The ease with which bad actors can launch new tokens and remain anonymous makes pump-and-dump schemes easy to pull off, hurting the reputation of crypto investment.

Chainalysis Report on Fake Tokens

Chainalysis, a blockchain analysis firm, released a report that revealed roughly 25 percent of digital tokens introduced in 2022 were scams designed to make off with investor funds. This was largely due to pump-and-dump schemes, wherein developers or executives talk up a token to get investors interested, causing the price to rise artificially before they run away with the profits.

How Pump and Dump Schemes Work

Pump and dump schemes are typically orchestrated by talking up a token and getting investors interested through fear of missing out (FOMO). Eventually, so many people invest in it that its price reaches an all-time high before those behind it shut down the operation and run away with their profits. It’s an unethical practice that sees innocent traders losing out due to malicious greed.

Ease Of Pulling Off Schemes

According to Chainalysis‘ statement, teams launching new projects and tokens can remain anonymous, making it easier for serial offenders to carry out multiple pump and dump schemes. In addition, launching new tokens is relatively easy compared to other markets which helps fuel this type of fraud.

Effect On Crypto Industry Reputation

The company explained that pump and dump schemes have been damaging for the reputation of cryptocurrency as many believe mass adoption is on the horizon but may be hampered if people view crypto investments as rife with such scams designed at taking advantage of newcomers.

Red Flags To Look Out For

The report recommends keeping an eye out for red flags when investing in digital assets such as seeding initial trading volume or controlling circulating supply. It also emphasizes staying vigilant against any attempts at manipulating prices or engaging in activities which could damage public perception about crypto investments.

• Eddy Alexandre was accused of running a crypto exchange and defrauding investors out of nearly $250 million.
• He promised guaranteed returns through “secret technology” and didn’t invest the funds in cryptocurrencies as he claimed.
• U.S. attorney Damian Williams issued a statement warning cryptocurrency executives that misconduct in the crypto markets will be prosecuted.

Eddy Alexandre Pleads Guilty to Crypto Fraud Scheme

Eddy Alexandre, a man from New York, pleaded guilty in February this year after conducting an illegal crypto fraud scheme that stole almost $250 million from investors. The fraud was conducted between September 2021 and May 2022, through a company called Emini FX.

False Promises

Alexandre falsely promised investors exclusive access to passive income through an automated trading system for both forex and cryptocurrencies, claiming he could guarantee them weekly returns of at least 5%, which is impossible with the volatility of the market. He also promised to double their money within five months by investing through his „Robo-Investment“ platform.

Warning From US Attorney

Damian Williams, the U.S. attorney for the Southern District of New York issued a statement saying any misconduct in the crypto markets will be prosecuted severely and warned other cryptocurrency executives: “Eddy Alexandre admitted today to luring investors to his cryptocurrency investment scam by fabricating weekly returns of at least five percent…His scam caused investors to lose millions of dollars.“

Millions Of Dollars Lost

Alexandre’s promises were too good to be true, as he failed to invest a substantial portion of investors‘ money and even used some funds for personal purchases, resulting in thousands losing out on their investments all together totaling up to millions of dollars lost .

Conclusion

This case should act as an example that misconduct in the crypto markets won’t go unpunished or unnoticed by authorities who are closely watching these activities now more than ever before.

• Tim Draper, a billionaire investor, recently tried to promote the use of Bitcoin in Sri Lanka to the nation’s central bank.
• Regulators were not receptive and stated that Bitcoin would never be adopted by Sri Lanka.
• Despite his efforts, Draper was unsuccessful in promoting Bitcoin as an alternative payment method due to its volatility and uncertainty.

Tim Draper Tries to Promote BTC Use in Sri Lanka

Billionaire investor Tim Draper recently took a trip to Sri Lanka to promote bitcoin to the nation’s central bank only to be kicked out unceremoniously. In his opening statement, he argued that a country known for corruption could keep perfect records with the adoption of bitcoin. Sadly, regulators of Sri Lanka did not welcome him with open arms and commented that the use of crypto or bitcoin would never occur within their borders.

The Reasons Why BTC Was Rejected

The work did not pay off and officials have made it clear that they will not move in the direction of the world’s number one digital currency by market cap. The reason behind this is because it is extremely hard to understand when bitcoin and its crypto family will go up or down when it comes to their prices. Many stores and companies have been reluctant to say „yes“ when it comes to accepting crypto payments for this reason, making BTC rejection understandable from a financial standpoint.

Examples Of Possible Losses

Consider the following scenario: someone walks into a store and buys $50 worth of merchandise with bitcoin. For one reason or another, the store doesn’t trade the BTC into fiat right away and about 24 hours go by. From there, the price of BTC goes down and that $50 becomes $40 – making it so that customer gets everything he or she bought but at an expense for the store who has lost money in the end. Is this a fair situation? Not every business can afford such losses which is why many are hesitant on accepting crypto payments as an option from customers despite its potential benefits long-term wise.

Seeking Balance Between Risk And Reward

It’s important for governments all over the world – including those like Sri Lanka -to find balance between risk and reward when it comes down to regulating blockchain technology, cryptocurrencies such as Bitcoin and other related fintech applications/niches alike so as investors don’t feel discouraged from investing in them while users can still enjoy all their features without worrying about fraud risks/losses etcetera associated with them (especially if these are held over long periods).

Conclusion

In conclusion, while Tim Draper’s mission was ultimately unsuccessful in terms of convincing regulators in Sri Lanka to accept Bitcoin as an official payment method – his efforts serve as proof that more needs done worldwide regarding cryptocurrency regulation & education so people become more comfortable using them day by day instead of being wary about them due their perceived “lack of safety” etcetera

• Nigeria is in talks with potential technology partners to create a new system to manage and control its digital currency, the eNaira.
• The Central Bank of Nigeria has spoken about its early-stage intentions with New York-based technology company R3.
• The CBN is collaborating with various providers to investigate technical advances for their digital infrastructure.

Negotiations for Technological Upgrade Of eNaira

Nigeria is currently in discussions with potential technology partners to create a brand-new system and control their digital currency, the eNaira. The Central Bank of Nigeria (CBN) has spoken about its early-stage intentions with New York-based technology company R3, one of the sources claimed.

Launch Of Central Bank Digital Currency

In October 2021, Bitt Inc., which has offices in Draper, Utah, assisted the West African country in launching its central bank digital currency, or CBDC, making it the first nation to do so on the continent.

Goal To Maintain Control Over Technology

The sources claimed that while a new partner would not instantly succeed Bitt, they would aid the central bank in achieving its long-term goal of controlling the underlying technology. The CBN collaborates with numerous service providers to investigate technical advances for their digital infrastructure.

Digital Payments Encouraged Customers To Become Cashless

The need to keep up with private sector advancements in digital payments have encouraged customers all around world to become cashless and given rise to cryptocurrencies and stablecoins. Bank of England and UK Treasury officials are intensifying work on a digital pound colloquially known as “Bitcoin”..

Bitt Working Closely With Nigerian Central Bank

Bitt stated in a written statement that it is: „currently developing more features and advancements“ and that it „continues to work closely with the Nigerian central bank.“

Top Crypto Gainers Today

• SingularityNET (AGIX): This cryptocurrency project has been active since 2017 and its utility token, AGIX, is used to purchase and sell AI applications on the market. It also provides access to governance and offers token airdrops from projects spun out of SingularityNET.
• ImmutableX (IMX): IMX tokens have seen a long-term increase in price past $1. The price of ImmutableX has established a bullish tenacity pattern and bulls are seeking to keep the value of the IMX coin above exponentially weighted moving averages.

Biggest Crypto Gainers Today – February 15 ByPatrick JenningsPRO INVESTOR

SingularityNET (AGIX)

The price of AGIX rose by 1,285% over 37 days, reaching an all-time maximum of $0.67 on February 8. However, the price promptly dropped after reaching its record high and has since dropped by 37.61%. A bearish split in the everyday RSI occurred before the decline. The price is currently seeking to retake the $0.42 0.618 Fibonacci retracement resistance level. If so, it would be feasible to correct. But if the price doesn’t take back the market, it can go as low as $0.23. A cryptocurrency project called SingularityNET has been active since 2017 and was established by Ben Goertzel, a researcher in artificial intelligence with a goal of creating a decentralized marketplace for AI crypto technology that enables people to purchase and sell AI applications on an open network. Its utility token AGIX serves this purpose, allowing users to stake it for liquidity as well as use it to buy/sell AI applications and gain access to governance features such as token airdrops from projects spun out from SingularityNET.

ImmutableX (IMX)

Long-term investors now have optimism as the price of IMX tokens increased past $1; showing resilience above the 200-day exponential moving average while forming a bullish tenacity pattern with 21% weekly growth rate in sight.. To increase this longevity of this new milestone at $1 breakthrough bulls are attempting at keeping IMX/USDT pair afloat above exponentially weighted moving averages with current intraday trading up 3.61% at $1 .092 24 hrs traffic-to-capitalization value overall still increasing steadily for ImmutableX coins holders

• Investment options have expanded beyond traditional stocks and properties with the introduction of cryptocurrency and non-fungible tokens (NFTs).
• Luxury watches, particularly Rolex models, have become popular investments due to their craftsmanship and resale value.
• Jacob & Co. recently released the world’s first luxury watch NFT, a 10-second animation of their SF24 Tourbillon timepiece.

Alternative Investments

The digital age has opened up a range of alternative investments that go beyond stocks, bonds and property. Cryptocurrencies and Non-Fungible Tokens (NFTs) have been gaining traction as investment tools in recent years.

Luxury Watches as Investments

Luxury watches are becoming increasingly popular as an investment option due to their high resale value and craftsmanship. Rolex is one of the most sought after brands when it comes to investing in watches, with prices on the secondary market reaching dizzying heights due to its artificial exclusivity and high demand. Other notable players include Omega, Patek Philippe, Breitling etc.

Jacob & Co.

Jacob & Co., a premium jeweler and watchmaker in New York City recently took this concept further by creating the world’s first luxury watch NFT – a 10-second animation of their SF24 Tourbillon timepiece. The model’s stand-out feature is the split-flap system; on the NFT version it displays ten different crypto currencies while on the physical version it functions as a GMT watch showing dual time zones simultaneously.

A Combination of Craftsmanship & Crypto

This unique combination offers investors something tangible yet novel with its integration of both craftsmanship and technology – making it an attractive proposition for those looking for both aesthetic pleasure or financial gains from their investments.

Conclusion

. Luxury watches are becoming more popular as investments due to their craftsmanship, design elements and resellability while Jacob & Co.’s luxury watch NFT combines both aspects into one product offering investors something new yet reliable at the same time.

• U.S. court-ordered examiner report revealed that the bankrupt cryptocurrency lender Celsius Network inflated its balance sheet as two of its founders paid out millions using investor funds and client deposits to support its own coin.
• During the COVID-19 pandemic, cryptocurrency lenders such as Celsius saw a surge in business, luring depositors with high interest rates and convenient loan access.
• Following the suspension of customer withdrawals from its platform, New Jersey-based Celsius filed for bankruptcy in the United States in July of last year.

Celsius Network’s Bankruptcy

U.S. court-ordered examiner report made public on Tuesday revealed that the bankrupt cryptocurrency lender Celsius Network inflated its balance sheet as two of its founders paid out millions by using investor funds and client deposits to support its own coin (CEL). During the COVID-19 pandemic, cryptocurrency lenders like Celsius saw a surge in business, luring depositors with high interest rates and convenient loan access. Following the suspension of customer withdrawals from its platform, New Jersey-based Celsius filed for bankruptcy in the United States in July of last year.

Examiner Appointed

Shoba Pillay, a former prosecutor was designated as an independent examiner by U.S. Bankruptcy Judge Martin Glenn who is presiding over the Chapter 11 case in September 2020. She was given responsibility to look into complaints from Celsius clients that it ran like a Ponzi scheme and also reporting how it handled bitcoin deposits.

Deposit Collection & CEL Currency Creation

Retail clients‘ cryptocurrency deposits were collected by Celsius which then used them to buy cryptocurrency in equivalent amount at wholesale market prices to fund their business by inventing and selling their own crypto currency called CEL . The company promised customers that it would purchase CEL on secondary market and deliver it to them as rewards which will increase CEL pricing while simultaneously bringing new customers creating what they termed self sustaining “flywheel” effect but beginning 2020 ,Celsius went on “purchasing spree” driving up price of CEL higher than what it should have been under normal circumstances .

Insiders Benefits

The report showed that cofounders Alex Mashinsky & Daniel Leon had accumulated more than $25 million worth of crypto assets from company funds during their tenure at Celsius . This was done through several transactions benefiting both parties . It is alleged that these transactions were not properly disclosed or authorized by board or investors .

Response From Celcius

Requests for comment sent to several addresses including email address on Celcius website , PR company representing Celcius at time of bankruptcy & CEO Alex Mashinsky attorney did not receive any response immediately following publication although later night demands were made .

• The address linked to the theft of $323 million worth of Ethereum (ETH) from Wormhole began shuffling assets.
• The hacker transferred the funds onto a decentralized exchange (DEX) and then cycled funds around different DeFi protocols.
• The hacker swapped 95,630 ETH ($157.2 million) into staked ether (stETH) through OpenOcean, the famous decentralized exchange (DEX) aggregator.

The address linked to the theft of a whopping $323 million worth of Ethereum (ETH) from Wormhole has recently shown signs of activity, according to records on Etherscan. The news about the activity on the cross-chain protocol was first brought to light by Twitter user @Spreekaway on Monday, January 23.

Wormhole is a communication bridge that links Solana to other Decentralized Finance (DeFi) blockchain networks. The theft occurred back in 2022 and is considered to be one of the biggest of its kind. Fortunately, the losses were refunded by the crypto division of trading giant Jump, which is a major force behind Wormhole.

When the activity on the address related to the theft began, it looked like the hacker was consolidating Ether before making a colossal swap for 95,630 ETH ($157.2 million) into the staked ether (stETH) through OpenOcean, the popular decentralized exchange (DEX) aggregator. After that, the hacker swapped the stETH for 86,473 wrapped Bitcoin (WBTC) using the decentralized exchange Uniswap.

The threat actor then proceeded to move the WBTC to the decentralized trading platform Kyber Network, where he swapped it for USDC and then transferred the USDC to MakerDAO’s decentralized autonomous organization (DAO). The hacker then used the USDC to take out a loan of $12.7 million in DAI.

Given the sophisticated nature of the hacker’s movements, it is likely that he is using the funds to launder his ill-gotten gains. It is also possible that he is attempting to remain anonymous by swapping between different assets and protocols.

The hacker’s actions are of grave concern as it could lead to a significant increase in the already high levels of money laundering taking place in the crypto space. It is therefore important for users to remain vigilant and take the necessary precautions to protect their funds from being stolen. Moreover, the industry must continue to work together to identify and stop this kind of criminal activity.

• Gala price has increased by 6.6% over the last 24 hours, after being lifted by a partnership with Dwayne Johnson (The Rock) earlier this month.
• The 200-day Exponential Moving Average (EMA) has been holding the ground at $0.05236, preventing Gala price from reaching a new 2023 high.
• A daily close above the 200-day EMA is required to ensure the continuation of the uptrend, first to $0.07 and then above $0.10.

Gala Games‘ play-to-earn (P2E) blockchain token, Gala price, has been one of the best-performing tokens in 2023, with gains exceeding 180% in 30 days. With the rise of new blockchain gaming platforms such as Meta Masters Guild (MEMAG) and Calvaria (RIA), gamers are on the lookout for blockchain games that are actually enjoyable to play. This, in turn, has sparked an increased interest in the crypto economy, which has pushed Gala price up by 6.6% in the last 24 hours.

The rally was initially ignited by the partnership between Gala Games and Dwayne Johnson (The Rock) earlier this month, which pushed Gala price above $0.04. The bulls‘ aggressiveness extended the leg even further, allowing it to break the critical resistance highlighted by the lower yellow band on the daily time frame chart. Although the 200-day Exponential Moving Average (EMA) (in purple), which is holding the ground at $0.05236, has put a cap on the movement to the upside, Gala price still managed to tag a new 2023 high at $0.0566 before retracing to trade at $0.0527 at the time of writing.

This brings us to the question; is Gala price ready to pick up the pace to $0.1? To ensure the continuation of the uptrend, a daily close above the 200-day EMA is required. If this occurs, it could provide the much-needed momentum for the token to reach $0.07, and then eventually stretch the bullish leg above $0.10.

However, it is important to note that the selling pressure from the 200-day EMA is likely to be strong, and therefore, the buyers will have to be extra aggressive to break through. If the buyers pull this off, then the next major resistance will be at the upper yellow band, which is currently sitting at $0.0633.

In conclusion, the performance of Gala price in the coming days will depend on the ability of the buyers to break through the 200-day EMA and push the token to higher levels. If successful, the token could pick up the pace to $0.1 in the coming weeks.