An interesting British documentary about how money mules are recruited by larger money launderers, and how easy it is to lure young people into crime for a few grands.
Nigeria had banned cryptocurrencies earlier this year (to little effect). It has now introduced its CBDC, the eNaira. Currency and government stability are the likely reasons. Other countries will follow.
There are structural issues in both the crypto and regulated worlds. But how deep and how frequent are they? Here is a review of Cryptos’ pros and cons.
A few interesting comments from Fed officials about the likelihood of a US CBDC (a Central Bank Digital Currency would be fungible into our daily US dollar).
You remember our cryptocrook? Quant WizKid, market-neutral hedge fund, Cryptocurrency arbitrage great returns, $90m AUM… Except that it was a Ponzi.
His sentence just came out: 7½ years of jail. Here are the explanation & the context.
Not all central bankers and diplomats have a good opinion of cryptocurrencies.
They are assessing their costs & benefits through articles in prime newspapers.
One diplomat/economist just called for their outright ban.
Central Bank Digital Currencies are very different from cryptocurrencies. Cryptos will be used by unsavory countries. CBDCs will be used by democracies and bad actors alike.
Here are examples of both types, as well as the challenges the Federal Reserve faces in creating a digital dollar.
The Rosen Law Firm has filed the first NFT class action, which accuses Dapper Labs and the NBA of selling $500m of unregistered securities to US investors, as per the Howey test. The firm is also slow to pay back investors who sell their NFTs.
The case will be followed closely by the new digital litigation industry.
PwC released its annual Crypto Hedge Fund report; it contains many interesting statistics – fees, size, investor source, strategies, liquidity, performance…
Pump-and-dump are ubiquitous in crypto currencies. The schemes are well organized online groups, acting for the explicit purpose of manipulating currencies.
Organizers are front-running their groups and make great returns for themselves, so why would other participate? For hubris and gambling fever, say academics.
Regulators are absent, and the situation will deteriorate. This is the long-form review of this Far West of modern ages.