Cryptocurrency Tracker

Blockchain ETFs are thematic exchange-traded funds (ETFs) – consisting of cryptocurrencies – that own the stocks of companies that use or develop blockchain technology. ETFs typically monitor an index or basket of assets, although crypto ETFs track the price of one or more digital tokens.

Share prices of crypto ETFs fluctuate daily – based on investors’ sales and purchases, and like common stocks, are traded daily too. Blockchain ETFs tend to invest in a much wider range of assets when compared to things like Bitcoin ETFs that focus on tracking the price of a single cryptocurrency.

ETF investment is spread across many different industries that can be broken down into a few categories:

Companies that own cryptocurrency: Companies such as MicroStrategy and Tesla have big amounts of Bitcoin and other digital assets on their balance sheets.

Crypto exchanges and crypto miners: Coinbase, for example, is a leading cryptocurrency exchange, while Marathon Digital is a Bitcoin mining company.

Financial services firms: Take Galaxy Digital Holdings, the company that manages crypto assets that attain their value from the blockchain. In addition, global banks HSBC and BNP Paribas finance blockchain initiatives and are creating their own blockchain applications.

Tech companies: Microchip makers such as NVIDIA Corp and Advanced Micro Devices supply hardware that is widely used to support blockchain systems. Moreover, software companies like VMW, which lead cloud computing technology, also have blockchain-focused businesses. 

Variations of blockchain ETFs

There are two types of blockchain ETFs.

The first type is backed by physical cryptocurrencies, and the investment companies managing the fund buy crypto. Ownership of these cryptocurrencies is represented as shares. Essentially, buying ETF shares will indirectly make investors the owners of cryptocurrencies, exposing them to digital assets without any expense or risk.

The second type of ETF is a synthetic variant that monitors crypto derivatives such as futures contracts and crypto exchange-traded products (ETPs). ETF share prices mimic the price movements of derivatives instead of the actual prices of cryptocurrencies. Essentially, the price of shares of a specific crypto ETF will rise with an increase in futures contract prices.

Why invest in blockchain ETFs?

Blockchain technology is still in its infancy when it comes to development, with many industries and established companies using blockchain technology to improve their operational models. With that being said, investing in a diversified blockchain ETF is a fantastic way to gain exposure to the world of crypto without actually bearing much of the risk.

Investors typically spread the crypto ETF investment to safeguard themselves from undue risk further. When considering how quickly the blockchain space is developing, it makes perfect sense to invest in blockchain ETFs for your portfolio – especially as more and more companies and industries across the globe start implementing its technology.

Benefits of ETFs

As mentioned above, one of the biggest attractions of blockchain ETFs is that they give exposure to the crypto market without incurring expenses of ownership. Physical ownership of cryptocurrencies means additional expenses with custody charges, annual digital wallet fees, and transaction and network fees. All of these expenses can be avoided with a blockchain ETF investment.

Shares in blockchain ETFs offer exposure to promising asset classes at a fraction of the actual cost of buying crypto. When you think about how the values of certain cryptocurrencies have skyrocketed in the past 12 months – those prices may appear inaccessible to the average investor. By choosing to invest in blockchain ETFs instead, investors stand a chance of getting equally attractive gains for much less investment.

Cryptocurrency jargon can become a hindrance for those who are looking to adopt crypto – especially with all the technical terms that the average investor may find hard to understand. For investors who are not entirely familiar with crypto technology, making a blockchain ETF investment effectively outsources the complicated aspect to analysts. Investors are free to concentrate on easier matters pertaining to their crypto ETF investment.

It’s no secret that the world of crypto is a prime target for hackers who want to get their hands on your investments. While major exchanges and wallets have ramped up their security protocols in recent times, there is always an element of risk to your crypto investments. Those who choose to invest in cryptocurrency ETFs can rest a little easier as all security functions to the providers are outsourced – adding that extra layer of protection.

Final thoughts

Blockchain ETFs are steadily establishing a presence in the crypto market, and investors have increasingly warmed to diversifying their portfolios with blockchain-based products. Considering how the world of NFTs took the spotlight with exponential growth in the last year – overshadowing cryptocurrencies in the process – there’s every chance that blockchain ETFs could follow suit in the coming months. Investors will do well to commit early while the prices are favourable and then sit back while their investments flourish. Time will tell how quickly blockchain ETFs take to reach the top!

The world’s number one cryptocurrency – Bitcoin – has plunged to its lowest levels in almost a year, leaving investors in a tailspin amidst of flurry of sell-offs. 10 May 2022 might be regarded as a watershed moment for Bitcoin as its value sunk to under $30,000 for the first time since June 2021.

This crypto bloodbath saw sell-offs with $1 billion worth of digital assets wiped off in just 24 hours – staggering! Industry sentiment is that due to rising inflation, a large number of investors are taking a risk-off approach by selling both crypto and stocks.

Why has Bitcoin’s value plunged?

With the institutional adoption of crypto around the globe, the crypto market has become more intertwined with the stock market – something bound to have a ripple effect somewhere along the line. That’s precisely what happened when stocks fell sharply earlier this week, causing Bitcoin to follow suit.

Bitcoin and stocks have had to bear the brunt of rising inflation, global economic issues with the conflict in Ukraine, and tighter monetary policies across the globe. Such conditions brewed the perfect storm and created extra volatility in an already uncertain market.

While Bitcoin has somewhat rallied to around $30,500 at the time of writing, industry experts anticipate that this downward spiral is far from over. There is light at the end of the tunnel, however, as some analysts anticipate Bitcoin’s recovery to boost its value above $150,000 in the coming months – something that seems like a distant dream for investors at the moment.

For both seasoned and fresh investors, this is certainly a nerve-wracking time – circumstances where they may be tempted to join the crowd, cut their losses, and sell off before their entire investment goes up in smoke. Such decisions in the world of crypto are regarded as panic investment decisions and rarely bode well for those who have cut their losses in the past.

With that being said, panic selling is the last thing you want to do – if the history of the crypto market is anything to go by.

What is panic selling?

Panic selling happens when a specific event – like Bitcoin’s recent plunge – forces investors to sell off their investments, in part or full. Typically, this happens when short-term investors try to pull the price of a cryptocurrency down in an attempt to trigger long-term stop losses.

Such panic investment decisions can be irrational and tend to snowball with a herd-like mentality as investors follow each other’s habits. Fluctuations in the market are a scary proposition and can cause investors to make crazy decisions – especially the new investors. They may justify their sell-offs as playing it safe in a volatile market – not realising the ramifications of their actions.

With that being said, all crypto investors should understand that the crypto market is fundamentally volatile and that, historically, any drop in the value of a cryptocurrency is usually followed by an even stronger recovery. Looking at past market performance, it is clearly evident that panic selling is a bad idea – let’s explore some ways to avoid it.

Ways to avoid panic selling

Remind yourself that the market will recover

While your investment may be looking all doom and gloom at the moment, it is important to remind yourself that the market always recovers – if history is anything to go by. At some point in the future, the crypto market will bounce back, and your Bitcoin’s value will get back to much healthier levels.

The value of your current Bitcoin investment is just a figure on your screen right now – so if you sell now, that figure will remain the same, and you won’t benefit from future gains since you locked in your losses. Buying high and selling low is no way to invest smartly, so ride out the storm as brighter days will surely follow.

Keep your emotions in check

It is vital that you keep your emotions in check – especially when you feel your investment is a losing cause. Acting emotionally will lead to impulsiveness and cause you to make irrational investment decisions that you may later regret.

By keeping your mind calm and clear, you will think rationally and not sell off in haste at the first sign of volatility. Remember, the markets are always going to behave like this – for the foreseeable future – so keeping your emotions in check will help you look at the bigger picture.

Think of the long-term

Before making panic investment decisions, think back to when you first invested in Bitcoin. Surely, you did your research and had some idea that the markets would not always be rosy. Think about the projections that were anticipated when your first made your BTC investment – how does it compare with what you currently have.

By looking at your long-term objectives, you will soon realise that things are not as bad as they seem. Considering that some analysts believe Bitcoin will breach $100,000 this year – there’s a lot to look forward to with your investment. With that being said, panic selling is the last thing you want to do.

Know how to manage risk

Your cryptocurrency investments should vary with a diversified portfolio as this helps to manage your risks. This not only means investing in altcoins, but also equities, cash, and real estate – things that will help you manage situations like a Bitcoin crash.

Buying a high-risk asset like Bitcoin, hoping to reap untold riches doesn’t mean that you shouldn’t anticipate occasional slumps in value. However, by diversifying your investment portfolio, you will be better positioned to exercise resilience with those investments – like Bitcoin – that are not performing as you like.

Final thoughts

There are absolutely no guarantees when it comes to investing in Bitcoin – like other cryptocurrencies. Hope does lie in the crypto market’s historical performance, and that should bring solace while reaffirming your belief and perseverance that the markets will improve.

Considering that Bitcoin is the number one cryptocurrency on the market, there’s every chance that your investment will start bearing fruit as 2022 rolls along, so keep the faith during these turbulent times and who knows – you may be pleasantly surprised that you chose not to panic sell after all! 

May is rolling along quite nicely, and with all the Mother’s Day celebrations done and dusted, it’s been another eventful week in the world of crypto. Indian crypto firms consider moving to UAE; Madonna launches new NFT; Ukraine government launches new crypto trading platform; and El Salvador buys 500 Bitcoin amid market slump.

Indian crypto firms consider moving to UAE

Reports from the UAE have revealed that a whole host of Indian blockchain startups are planning to shift operations to the Middle East region – due to its favourable laws and innovation with blockchain technology.

Crypto policies in India have become increasingly restrictive, and crypto entrepreneurs now want to set up shop in the UAE, where the environment is more conducive to their activities. It is said that at least three crypto firms from India – including DigitX, CGCX, and PCEX – are looking to move their operations to Dubai.

Both Dubai and Abu Dhabi are spearheading efforts to make the UAE the crypto capital of the world – easily offering trading licences to crypto firms like Binance, FTX and Bybit in recent times. Aside from the clear crypto regulations, Dubai also has a zero tax policy for personal income – something that appeals to crypto enthusiasts globally.

Leading Indian crypto analyst – Jitendra Kale – was enthusiastic about the move saying, “Indian crypto community plans to expand its footprint in the Middle East as Dubai is at [the] forefront of crypto-related activities. Dubai has been encouraging the growth of the crypto sector by creating a regulatory environment to attract crypto businesses and talent to the city. Additionally, Dubai has no personal income tax. There is zero tax on any gains, including gains on Cryptocurrency. It also means there is no need for extensive record keeping and filing. Entrepreneurs say it has advantages such as networking opportunities, no restrictions on innovation, access to global opportunities, and resources that outweigh the cost of living in Dubai.”

This is fantastic news for crypto exchanges globally who are finding local crypto laws restrictive and want to operate freely. Wisly will keep you in the loop with the latest news on this.

Madonna launches NFT collection

Evergreen music icon Madonna has collaborated with the world-renowned digital artist Beeple to launch a three-NFT collection dubbed Mother of Creation. Madonna is no stranger to the world of NFTs, with her Twitter profile picture featuring an image of the Bored Ape Yacht Club NFT.

Madonna joins other famous artists like Nirvana, Ice Cube, David Bowie, and Snoop Dogg, who have all entered the highly-lucrative NFT space in recent times. In an announcement on Twitter, Madonna revealed the new NFT collection that will be up for auction on the SuperRare NFT marketplace today, 11 May, at 15.00 PST.

Madonna also revealed that all proceeds from the auction with benefit The Voices of Children Foundation, The City of Joy, and Black Mama’s Bail Out. Madonna said that she has been working with Beeple on the project for the past year and created something “utterly connected to the idea of creation and motherhood.”

A proud Madonna said, “Using the opening of each video is essentially me giving birth, whether I’m sitting on a tank in a post-apocalyptic city or I’m in a hospital bed in a very sterile laboratory environment, I’m doing what women have been doing since the beginning of time, which is giving birth.”

Wisly will keep you updated on the latest with this story.

Ukraine government launches new crypto trading platform

On Monday, the President of Ukraine – Volodymyr Zelenskyy – announced that the country had launched a new crypto fundraising platform called United24, with donations from over 100 cryptocurrencies being accepted.

The usual suspects like Bitcoin, Ethereum, and Binance Coin are on the list as well as a string of popular altcoins. Amidst the conflict in the country, this new initiative will allow donors to choose where to allocate their donations – much different from other fundraising efforts since the Russian military came to the scene.

There are currently three focus areas for the donations – defence and demining, humanitarian medical care, and reconstruction of damaged property and assets. A defiant Zelenskyy said, “Everyone can donate in one click from any country. Anybody may participate: concerned individuals, entrepreneurs, and large technology corporations. We fight with the enemy every day for the values of freedom and democracy. United24 is to become a digital service that will unite the entire civilized world in supporting Ukraine.”

This new platform will make crypto donations to Ukraine’s cause much easier and help the country to stabilise economically. Donors will receive weekly reports on how the donations have been spent – enhancing efficiency and transparency in the distribution of donations.

Wisly will keep you informed of the latest developments on this story.

El Salvador buys 500 Bitcoin amid market slump

With Bitcoin slumping to dramatic lows in the last week, El Salvador has decided to buy the dip again. President of El Salvador – Nayib Bukele – announced on Twitter that the nation had got its hands on 500 Bitcoin at an average price of $30,744.

El Salvador became the first country in history to adopt Bitcoin as legal tender and has taken full advantage of the sharp drop in BTC’s price. This is the lowest price that the country has bought Bitcoin for and marks the biggest single purchase of BTC by El Salvador.

The nation’s current holdings stand at 2,301 Bitcoin, with a value of around $72 million at today’s price. Since making BTC legal in the country, El Salvador had continually bought BTC when its value was favourable – with this being the tenth crypto purchase. The country previously bought 410 BTC in January at an average price of $36,585 – making the most recent purchase even more enticing.

While organisations like the International Monetary Fund (IMF) have lambasted El Salvador for its adoption of BTC as legal tender, officials in the country are confident that they will have the last laugh.

It remains to be seen whether this latest purchase will bear fruit, and Wisly will keep you posted on the latest on this story.

The world of crypto is a hive of activity with many exciting projects underway and incredible new developments that will take the world by storm. One such project is OVR – an open-source, Augmented Reality platform that is built on the Ethereum blockchain. Read on as we discover what OVR is all about and why everybody is rushing in for their slice of the proverbial pie. 

OVR explained

OVR is a digital layer that covers the entire globe – like a virtual world that sits on top of the real world, which users can explore digitally. The OVR platform allows users to engage in interactive augmented reality experiences that are customised in the real world by using smart glasses or a mobile device.

Users can trace their surrounding environment with such precision that Augmented Reality blends effortlessly with the real world. It can be likened to Pokemon Go except with much more interactive content – like 3D games, video, audio and images. The OVR metaverse – the virtual world – comprises 1.6 trillion hexagon plots, each 300 square meters, that overlay the entire planet. 

These hexagons are referred to as OVRLands, and they each have their own specific geographic location to mirror those in the real world. The OVR platform allows users to fully customise the land that they own and the experiences they create for other users. The possibilities are truly endless, with games, live entertainment, sports, treasure hunts, music performances, virtual shopping, tourism and so much more available.

Dynamics of OVR

Users can create 3D content on OVR and own the space where it is hosted in the form of an NFT. They can then place this NFT in any corresponding location anywhere in the globe – unbelievable! In terms of virtual land ownership, the process of buying a plot of virtual land is similar to owning a web domain. 

Integrating digital elements into the physical world can be quite beneficial for business owners. Imagine an avatar giving customers information about a product or service that your business offers – opening your doors to an entirely new audience. Virtual landowners can also rent out their land and generate passive income, as they would in the real world, or buy plots and sell them later at a higher price for a generous profit.

As of January 2022, OVR moved over to Polygon – thereby creating more decentralisation for OVRLand ownership and allowing for decentralised renting, exchange, and mapping of OVRLands. With this move, OVR now has the capacity to mint and transfer NFTs cost-effectively, and this will allow all objects that exist in OVR to be NFTs – making them a permanent fixture of this virtual world and live in a cross metaverse. 

The OVR community will have full control of their OVRLands and OVR experiences, making it a truly immersive virtual world filled with wonder and imagination.

What is OVR Token?

OVR Token is OVR’s very own cryptocurrency that users need to have in order to buy, rent, or sell assets on OVRLands. In addition, those who own tokens are able to generate passive income by staking – a technique where users put their coins to work and earn rewards without having to sell their coins, akin to having a bond in the traditional world of finance.

OVR Token is based on ERC-20 of smart contracts on the Ethereum network. OVRLands are parcels that are stored in a blockchain-based ledger that allows for tokenising the subdivision layer of the planet into hexagons – that’s the technical bit out of the way.

Pros and Cons of OVR

Pros

OVR allows users to buy land, stack OVR tokens, or trade them on exchanges. They can also deploy creations and files directly in OVR and then view them through a mobile device or smart glasses in real life. OVR also has many virtual rooms where users can showcase their creations and art.

Cons

When users want to buy a property, they need to wait for 24 hours in a public auction where the highest bidder gets the land. The waiting game is not guaranteed to bring you the piece of land that you want. In addition, the gas fees for the tokens in your wallet can become quite high. The payment methods are also limited, and the OVR virtual community is small when compared to other virtual projects out there currently.

Final thoughts

OVR has paved the way for a future brimming with possibilities as technology moves towards greater adoption of the metaverse. Virtual worlds are becoming a bigger part of daily life as projects like OVR provide more flexibility for users to exercise their creativity.

Users have the freedom to create their own experiences in a virtual world that is free from the shackles of rules and regulations. It’s no surprise that NFTs have largely contributed to the ecosystem of the OVR platform, and with the current trajectory of this exciting project – the sky’s the limit.

Time will tell what impact OVR has on the metaverse and how its users transform this real world that exists into one filled with fantasy and vivid imagination!

With May already upon us, there have been some incredible developments in the world of crypto that are sure to dominate talk amongst crypto circles. Central African Republic makes crypto official tender; Wikipedia stops accepting crypto donations; Argentinian banks to allow crypto trading; and New York fitness club accepts crypto payments from members. 

Central African Republic makes Bitcoin official tender

The Central African Republic (CAR) has become just the second country in history – after El Salvador – to make Bitcoin official tender. The use of digital currencies has been legalised and all cryptocurrency exchanges in the country will be exempt from tax.

This ground-breaking announcement was made by the office of the President of CAR where it stated that the country’s legislators unanimously voted to adopt BTC as legal tender alongside CAR’s traditional currency – the CFA Franc – after which the CAR President signed it into law.

The statement issued by the office of the president reflected its delight as it stated that the new law “places the Central African Republic on the map of the world’s boldest and most visionary countries.”

Members of the opposition were not too happy, however, as they said that the new crypto law aimed to undermine the regional currency that was backed by France and pegged to the EURO. The International Monetary Fund (IMF) also slammed CAR citing “large risks for financial stability” – mainly due to the highly volatile nature of the crypto market.

These are certainly exciting times indeed for citizens of CAR as new payment and transaction options make it easier for the world’s unbanked to engage in the economy. Wisly will keep you posted on the latest developments with this story.

Wikipedia stops accepting crypto donations

The Wikimedia Foundation – a non-profit organisation that operates Wikipedia and other Wiki-branded online tools – has announced on 1 May that it would no longer be accepting crypto donations of any form. This decision was based on ethical and environmental concerns about the payments using blockchain currencies.

The Wikimedia Foundation held a vote to determine if crypto donations should be stopped, with 232 in favour of canning crypto donations while 94 voted to continue with it. All new and unregistered accounts had their votes discounted from the final result.

Crypto donations were introduced by the Wikimedia Foundation in 2014 and contribute a small portion of the organisation’s income. It is estimated that around $130k in crypto donations were received from 347 donors last year – constituting only 0.08% of its total revenue.

The organisation said, “The Wikimedia Foundation has decided to discontinue direct acceptance of cryptocurrency as a means of donating. We began our direct acceptance of cryptocurrency in 2014 based on requests from our volunteers and donor communities. We are making this decision based on recent feedback from those same communities.”

This decision follows a trend of online companies pausing crypto donations while they evaluate if blockchain technology would be consistent with climate and environmental goals. Wisly will keep you informed of the very latest with this.

Argentinian banks to allow crypto trading

Two of Argentina’s largest banks – Banco Galicia and Brubank – have announced that they will soon allow their clients to make crypto purchases with 4 crypto assets initially.  After a recent poll by the banks about greater access to crypto, more than 60% of the respondents indicated that would like more access to it.

This played a large part in fast-tracking both banks’ decision to begin allowing crypto trading. Clients of the banks will be allowed to trade Bitcoin, Ether, USD Coin and Ripple while other altcoins are in the pipeline. Argentina currently has the sixth-highest crypto adoption rate in the world with an estimated 21% of citizens having owned or used crypto by 2021.

There is hope that by allowing clients to trade and buy crypto through the banks, Argentines can stay ahead of massive inflation in the country – currently at 55%. The Argentinian town of Sorraduno recently bought mining rigs and planned to start crypto mining operations to earn Bitcoin to fight inflation.

In addition, mayor of Buenos Aires – Haracio Rodriguez Larreta – announced that the city would accept crypto payments for public finance services while also launching a blockchain-based digital identification platform for residents.

Crypto adoption in the South American country is really gaining traction with wider adoption of crypto across many industries highly anticipated. Wisly will keep you in the loop with the latest news on this. 

New York fitness club accepts crypto payments from members

A luxury gym in New York – Equinox – has revealed that it will soon start to accept cryptocurrencies for gym memberships – much to the delight of those who want to get in shape in the Big Apple. By doing so, Equinox will become the first gym in the city to accept digital currencies for membership fees.

A well-placed source close to the deal said, “Equinox wants to meet members where they are both digitally and physically, and is partnering with BitPay, a major bitcoin and crypto payment service.”

Gyms in the city have been hard-hit by the effects of the pandemic and are doing everything in their power to boost the numbers. Equinox sales in Q1 for 2022 were up 122% when compared to Q1 of 2019, and with membership fees upwards of $250 per month – the luxury gym hopes to attract elite clients with a penchant for crypto.

Crypto lovers in New York will certainly be eager to part with their crypto at Equinox – giving them the opportunity to shed some pounds in style while mingling with the rich and famous in the crypto community. Wisly will keep you up to speed on the latest with this.

With an increasing number of people and industries across the globe seemingly gripped with crypto fever, banking institutions are facing growing demand from their clients who want access to crypto-related products and services in a regulated and safe way.

One such bank is Commerzbank – Germany’s second-largest listed bank, partly owned by the government. Commerzbank has started formalities in introducing crypto-related services by announcing its application for Germany’s Federal Financial Supervisory Authority (BaFin) licence for a crypto custody business.

As of 1 January 2020, the German government has encouraged banks in the country to offer crypto services by acquiring s BaFin licence – providing a regulatory element to digital currencies. Commerzbank applied for its licence earlier in 2022. Once approved, it would allow the bank to offer exchange services along with custody and protection of cryptocurrencies – making it the first German bank to move towards crypto adoption.

Commerzbank’s upcoming crypto custody services will be directed mainly to its institutional clients – approximately 28,000 corporate clients and almost 11 million private and entrepreneurial German clients.

Why is the BaFin license necessary?

As mentioned above, as of 1 January 2020 – any German business that wants to offer cryptocurrency services must first get approval from BaFin. At the time of writing, only four German companies have acquired this BaFin licence, although the regulatory body currently has 25 pending applications from companies that want to operate crypto custody businesses – Commerzbank included.

For German companies that want to operate regulated financial services without having the necessary licences in place can have dire consequences – risking criminal penalties of up to five years in prison for those responsible. While that may be the case, the law allows for generous transitional provisions for companies that have already been conducting related transactions before this directive was enforced.

With regards to Commerzbank, their application is on the waiting list at the moment, like 24 other companies in Germany who are eager to kick-start their crypto services journey and tap into a crypto market filled with possibilities.

Commerzbank’s involvement in blockchain projects

Commerzbank is no stranger when it comes to the world of crypto, having been involved in blockchain-based projects from as far back as 2018. 

In addition, the German banking giant has carried out some of the very first transactions on a distributed ledger technology (DLT) security lending platform with other major banks in the country – around 2019.

In more recent times, Commerzbank worked with strategic partners through 2021 to create blockchain-based digital marketplaces for existing asset classes like real estate and art.

Considering their history of crypto-related interest, it appeared the most sensible move for Commerzbank to go ahead with a crypto-related service for its institutional clients – something that seems to have resonated well with its client base.

Banks expanding cryptocurrency services to high net worth clients

This strategic move by Commerzbank to edge towards crypto adoption is not a world-first, as many leading banking institutions across the globe have taken strides to provide crypto-related services to their clients amidst a wave of interest in digital assets.

Goldman Sachs has grand plans to offer crypto services to their high net worth clients in the coming months, with mid-2022 earmarked. The global banking giant will offer investment vehicles for Bitcoin and other popular cryptocurrencies with its ultimate goal being to introduce a full spectrum of digital assets to its ecosystem of private wealth clients.

JP Morgan started offering access to cryptocurrency funds to all its wealth management clients in July 2021 – making it the first major US bank to provide crypto access to retail clients. While the big-wigs at the bank are not the biggest fans of crypto, they believe that the bank should extend its crypto offering to satisfy the insatiable thirst for digital assets from its clients.

Morgan Stanley is another early adopter of crypto as it provided its wealthy clients – those with $2 million or more in invested assets – with exposure to Bitcoin, giving them access to three Bitcoin products for alternate investments. In addition, the bank has introduced its own crypto research team and has a total exposure of around $300 million in BTC at the time of writing.

Wells Fargo has also been caught up with crypto fever, perhaps not wanting to feel left out. It has started exposing its high net worth wealth and investment management clients to cryptocurrencies – describing it as a great diversifier of portfolio holdings.

Final thoughts

With all signs pointing towards greater adoption of cryptocurrencies by companies, financial institutions and governments around the world in 2022, it makes perfect sense for Commerzbank to lead the way in Germany for crypto-related services on a regulated platform.

It’s only a matter of time before the BaFin licence is granted, and the sky is the limit going forward for Commerzbank and its crypto journey. The sentiment is high amongst customers of the German bank who are excited to have more opportunities to diversify their portfolios under the banking structure.

Banks across Europe will certainly be watching with eagle eyes, hoping to offer similar crypto-related services in the future. Exciting times indeed, and Wisly will keep you informed of the latest developments with Commerzbank’s progress.

With the Easter festivities done and dusted, it’s been another whirlwind week in the world of crypto with some fascinating developments that are sure to dominate talk amongst crypto circles. Ireland bans political crypto donations; Nestlé launches very first NFT; Iran increases penalties for illegal crypto mining; and Singapore ride-hailing app expands crypto payment offering.

Ireland bans political crypto donations

Officials in Ireland have proposed a host of fresh political and electoral integrity laws that will now ban crypto donations to political parties in the republic – mainly due to concerns about foreign interference in politics.

Minister Darragh O’ Brien proposed these amendments that also include rules around foreign donations, misinformation, and other transparency requirements for political parties to adhere to – with an undertone of fear regarding Russian interference in Ireland’s elections.

An optimistic O’ Brien said that the new laws would protect Ireland’s democratic system “given the escalating threat of cyber warfare targeting free countries,” with a newly established Electoral Commission overseeing all legal compliance in this regard.

While it is unclear how many crypto donations are contributed to Ireland’s political landscape, this reformation of the current laws has been fast-tracked due to the escalating conflict between Russia and Ukraine.

A specialist taskforce comprising legal experts and political scientists has advised on measures that would create a legal and digital bulwark against election interference in the country that includes political parties providing streamlined accounting reports and declarations in accordance with the new laws.

Ireland joins US states like California, Oregon, Michigan and North Carolina, which have also banned crypto political donations in recent times. This is certainly news that concerns some political parties in Ireland who rely on crypto donations for effective campaigning. Keep an eye on Wisly for the latest developments on this story. 

Nestlé launches very first NFTs

Nestlé has launched its very first NFTs – commemorating the launch of the TRIX® Breakfast Cereal brand in the Middle East & North Africa (MENA). The world-renowned food brand dropped its NFTs on the popular marketplace – Opensea.io – with the TRIX® Globe, an exclusive limited-series NFT available for bidding from 18 March to 13 May.

Nestlé will donate 100% of the NFT sales to charity “in line with our promise for Better Lives,” according to an official statement. This NFT launch is the first blockchain-based initiative in the region that targets a humanitarian cause, with the Emirates Red Crescent being the major beneficiary.

Brand Manager Cereal Partners Worldwide, Middle East & North Africa – Bahaa Boulmona – was visibly delighted as he said, “We are excited to announce that TRIX® is the first and only breakfast cereal brand in the world to have launched its own NFT series – showcasing how daring and adaptable our brands are.”

This is fantastic news as more companies across the globe explore NFTs and their positive impact on society. Wisly will keep you in the loop with the very latest on this story.

Iran increases penalties for illegal crypto mining

Finance officials in Iran have drafted new laws that will increase the penalties for those who illegally mine cryptocurrencies in the country. These penalties include additional fines and imprisonment – in extreme cases – with the country’s administration expecting to approve these new rules very soon, as per Iran’s Power Generation, Distribution, and Transmission Company (TAVANIR).

In 2019, the Iranian government-approved crypto mining, with over 1,000 licences being issued for crypto mining operations. In December 2021, official miners were asked to stop crypto mining activities temporarily to avoid a winter blackout. However, these mining activities have become problematic, as unauthorised miners are using household electricity, causing severe strain to the national electricity grid.

State official – Mohammad Khodadi Bohlouli – explained, “The increased penalties include raising fines by at least three and at most five times, imprisoning the offender, and revoking the offender’s business licence. Any use of subsidised electricity intended for households, industrial, agricultural, and commercial subscribers for mining cryptocurrencies is prohibited.”

Wisly will keep you posted on the latest news on this story.

Singapore ride-hailing app expands crypto payment offering

A popular Singapore ride-hailing app – Ryde – is improving its crypto payments capability by expanding its options for users. Ryde has partnered with Request Finance to offer its more than 200,000 active monthly users more variety for payments.

Ryde made history in the country by becoming the first ride-hailing company to accept crypto payments during the advent of the pandemic in 2020 and has now taken the next step in its crypto journey.

Starting from the 2nd half of the year, Ryde users will have the flexibility to choose from a plethora of supported cryptocurrencies to top up their in-app wallets. Again, request Finance was the preferred partner as they offered many more crypto options – over 70 actually – when compared to competitors like Coinbase Commerce, which only support seven cryptocurrencies.

Request Finance also has a more extensive network with support for over ten blockchain networks and ten fiat currencies, while it offers much lower transaction fees of just 0.1%, capped at $2 per transaction with no subscription required.

CEO of Ryde – Terence Zou – beamed with delight as he said, “Since 2020, we have accepted crypto payments, but only in Bitcoin. Today, we are expanding the range of crypto payment options available to our users, thanks to an integration with web3 startup, Request Finance.” 

This is fantastic news for crypto users in Singapore, who will now have even more options to pay for their ride-hailing journeys. Wisly will keep you informed of the latest developments with this story.

For those who are not familiar with Axie Infinity, it is a blockchain-based game where players buy NFTs or little Pokemon-type creatures called Axies. Players can collect these Axies in this online universe and keep them as pets with the intention to breed, collect, raise, build kingdoms, and battle with one another.

Based on the Ethereum blockchain, players can use their own virtual assets and earn SLP tokens during their gameplay, which can be traded for money at selected exchanges. Such has been the popularity of Axie Infinity that a growing play-to-earn movement has emerged around the game – with a current fanbase running close to a million players around the globe.

With big money involved in such an exciting entertainment venture that has taken off unbelievably, there is always the risk of attracting unwanted attention. Regrettably, this is what happened recently as Axie Infinity suffered a $625 million loss from hackers who breached their systems – one of the biggest heists in the crypto industry to date. 

Axie Infinity’s $625 million hack

Axie Infinity fell victim to a vicious cyber-attack when hackers breached blockchain company – Ronin Systems – and made off with approximately $625 million. The hack took place around 23 March 2022 when 173,600 Ether tokens and 25.5 million USD tokens were stolen. Incredibly, users began to notice their funds disappearing a whole six days before the news became public on 29 March 2022.

Ronin Systems revealed that the hackers had stolen private keys and passwords to access players’ crypto funds on the platform. Axie Infinity uses the NFT – AXS – that is powered by Ronin blockchain, and Ronin admitted that many AXS tokens were unlocked – perhaps as hackers wanted its price to plummet after news of the hack became public.

Ronin has since been working directly with various government entities to find the hackers and bring them to justice. Axie Infinity has received global support since the hack took place, with popular crypto exchange – Huobi – tweeting, “Huobi will fully support @AxieInfinity as it deals with the aftermath of the attack and theft on its Ronin chain. Any stolen crypto assets that have been discovered to have traversed our exchange and related networks will be dealt with expediently.”

This devastating breach came just days before Sky Mavis – developer of Axie Infinity – was due to release a new version of the game, Axie Infinity Origins – a free-to-play edition with improved graphics and gameplay.

According to Sky Mavis officials, the attack was a direct result of trade-offs due to the popularity of the game soaring in 2021. With such exponential growth, the platform struggled to keep pace with the increasing need for security – something the hackers knew all too well. While promises of improved security have since been played on repeat, gamers are feeling hard done by Axie Infinity’s lax security measures and subsequent silence when the breach occurred.

How Axie Infinity Creators is helping users

Sky Mavis – the Vietnam-based blockchain company that developed Axie Infinity – has publicly stated that they would reimburse the money lost by players due to this hack. This would be done through internal balance sheet funds as well as millions raised by global crypto exchange – Binance, amongst other contributors.

Sky Mavis has come under fierce criticism from all corners for not discovering and disclosing the cyber-attack sooner. However, the CEO of Sky Mavis – Trung Nguyen – reiterated the company’s stance by saying, “Sky Mavis is committed to reimbursing all of our users’ lost funds and implementing rigorous internal security measures to prevent future attacks.”

Sky Mavis has secured $150 million from Binance as well as existing backers that include Andreessen Horowitz, Accel, and Animoca Brands. The bulk of this $150 million investment will take the form of a secondary offering in which Sky Mavis founders sold their personal shares in the company.

Chief Operating Officer of Sky Mavis – Aleksander Larsen – claimed that the cash proceeds from the sale of those shares would be used primarily to pay back gamers who had their funds stolen. A dumbstruck Larsen said, “We are taking responsibility for this situation — we feel we should have done better.”

 CEO of Animoca – Yat Siu – believes that this selfless gesture will help to win back the respect and trust of investors, while Andrei Brasoveanu – partner at Accel – was confident that Sky Mavis had made the right moves to secure its tech platform from future cyber-attacks and, in doing so, managed to retain the goodwill of a large number of its gamers. Brasoveanu said, “The team has been a class act and I’ve been really impressed with how they handled this.”

While all this sounds promising, the hackers have started to hide their tracks – shifting around 1,400 to Tornado Cash, a crypto mixing service.

Final thoughts

While it is noble of Sky Mavis to take responsibility for this unprecedented hack and look at positive solutions to reimburse those who have lost funds, this is not the end of it by any stretch of the imagination.

There are concerns that if Axie Infinity’s developer does not provide clear timelines on reimbursements, players are likely to walk away from the brand as they would have lost trust in the platform and would likely move over to competitor games. Bad news, indeed, for Axie Infinity which has experienced an almost 45% decline in player numbers over the past few years.

Time will tell how successful this reimbursement process is, and if the hackers are eventually found. It is rumored that most of the stolen funds are still in the hacker’s crypto wallets, and considering the decentralized nature of the crypto market – finding them would be akin to finding a needle in a haystack. For the sake of the victims, we can only hope that things work out for the better. We watch with bated breath!

2021 proved to be a landmark year in the world of crypto as the markets welcomed an unprecedented number of investors and traders who all wanted a piece of the pie. While many would think that Bitcoin was the main attraction, that couldn’t be further from the truth as altcoins and specific sectors in the crypto market outperformed BTC spectacularly – with the smart contract sector proving to be extremely impressive.

What are smart contracts?

A smart contract is a program that is written on a blockchain – an online record of programs and transactions – and self-executes when specific conditions are satisfied. Developers use code to define and enforce the rules of the smart contract. Once a smart contract is deployed, it runs independently without the need for an intermediary to make sure that a specific smart contract is fulfilled.

With smart contracts, software developers can build blockchain-based applications on top of them – similar to how apps are developed for smartphones. Such blockchain-based applications are extremely useful tools as they run automatically once specific conditions are satisfied – leading to greater efficiency and reduced human error.

Smart contracts enable automated blockchain systems – something that has taken off in 2021. It is for this reason that a plethora of investors have flocked towards smart contract-focused cryptocurrencies in the past year – outperforming Bitcoin by over four times in 2021 with the trend set to continue in 2022.

Smart contract use cases

The beauty about smart contracts is that they can add value and effectively contribute to almost any industry – including finance, law, and gaming.

You wouldn’t be wrong in thinking that finance would be the perfect fit for smart contract technology as many developers have leveraged them to build complex decentralised finance (DeFi) systems. 

Smart contracts are particularly effective in providing financial services as:

• Users can become liquidity providers by lending their own crypto funds into a smart contract with a decentralised exchange (DEX).
• The DEX uses those funds for crypto trading and lending.
• Users can swap crypto or put up collateral and get a loan on the DEX. Smart contracts would execute these transactions and collect all transaction fees.
• All liquidity providers would then earn a portion of the transaction fees – akin to a reward for lending their crypto funds.

By using smart contracts on a decentralised exchange, there are no third parties like payment processors or banks involved in the transaction. This means that users from across the globe can trade crypto and borrow, lend and earn interest on funds – without any middleman involved.

In terms of the legal field, smart contracts as well suited as they can easily be classified as legally binding contracts that execute or terminate upon specific conditions. Here, smart contracts would drastically reduce the time and costs that are typically involved in executing business deals.

Non-fungible tokens (NFTs) – unique digital assets stored on a blockchain – have taken off in the past year. With smart contract technology, the unique information of each NFT can be stored and recorded, together with information of ownership – providing a timeline from the creator throughout the various owners of that NFT. 

Blockchain games also include characters that appear in the form of NFTs that players can buy. Whenever a player buys a new character, they are essentially buying an NFT with statistics and other information that is stored on the blockchain in a smart contract – once again providing specific details of their purchase.

Benefits of smart contracts 

By now, you may have gauged how beneficial smart contracts can be to us in everyday life. Let’s touch on some of the major benefits of smart contracts.

Cost-efficient – Smart contracts are a cost-efficient way to do business as they run on their own and self-execute without relying on intermediaries.

Quick transactions – Smart contracts can execute immediately once all conditions have been satisfied with practically no wait time.

Transparency – Smart contracts have clear terms and conditions that are available for all parties to evaluate and agree on. In addition, smart contracts cannot be reversed, so once it is executed, the results cannot be disputed.

Trustworthy – Smart contracts eliminate possible biases that could affect the agreement as the terms cannot be manipulated to favour any particular party. 

Smart contracts to watch 2022

There is fierce competition in the crypto market when it comes to smart contract cryptos, as they are all vying to attract developer interest and key projects. With that being said, let’s touch on some exciting smart contract cryptos to keep an eye on for 2022.

Ethereum

Ethereum is the largest smart contract crypto around, and after its recent upgrade to Eth2 will provide an even faster network with cheaper gas fees – what’s not to like about that? Ethereum holds the lion’s share of smart contract applications and is the second only to Bitcoin in terms of its market cap. Ethereum’s shift to Eth2 is staged and will only be finalised in 2023, so that provides an opportunity for other smart contract cryptos to close the gap – somewhat.

Solana

Solana enjoyed fantastic gains in 2021 and moved from 120th place at the beginning of last year to 5th place before the new year dawned upon us – truly incredible and underscoring how well this smart contract crypto has performed. With a price increase of over 11,000%, cheap transaction fees and transaction speeds of more than 50,000 per second, there’s no wonder why Solana is one to keep a watchful eye on this year.

Cardano

Cardano has quietly gone about its business using a slow-and-steady approach to its development. Developers here prefer to test and peer review new initiatives thoroughly before rolling out new functionality, although that hasn’t deterred investors from seeing value in its projects. 

While Cardano has only launched smart contracts under six months ago, there are over 100 projects in the development stage within Cardano’s ecosystem. Incredibly, around 30 of these projects are anticipated to launch in the near future – exciting times indeed and perhaps the perfect opportunity for Cardano to come to the party and close the gap on both Ethereum and Solana.

Final thoughts

These are certainly exciting times to look forward to as smart contract technology begins to evolve and gain traction in 2022. As more industries across the globe begin to leverage smart contracts in their operational model, there will be far greater adoption of this innovative technology – something that investors, developers, and the world at large is anticipating with bated breath.