The R Roundup: Ex-Coinbase Product Manager Arrested For Insider Trading — Issue #46
Bad actors and team members going rouge seem to be a characteristic of the arduous bear market however when one of the largest exchanges has its ex-product manager arrested for insider trading, it poses the question of just how far the authorities will allow this issue to grow.
Coinbase isn’t a stranger to making headlines due to the size and influence of its company however it was reported this week that former product manager Ishan Walhi was arrested in Seattle on the US government's first insider trading case involving cryptocurrencies. Two others were also arrested as the group also are facing charges from the SEC.
Market participants are often excited to see their assets listed on Coinbase due to the exposure of users that interact with the platform daily. Wahi was accused of sharing information about assets that Coinbase was considering listing on their exchange and prosecutors claim they have profited at least $1.5m USD.
CEO and co-founder of Coinbase, Brian Armstrong, tweeted the following as a response to the situation:
Blurred regulation can lead to situations of this nature as people feel like the blockchain can be a mask for illegal activity however this occurring at Coinbase can be an example that there is certain authoritative pressure mounting on Web3 institutions and companies.
Dubai Sets Out To Be Metaverse Leaders🪐
The metaverse has seemed to be a talking point attached to “Web3” and is often seen as the most obvious step up for how we interact with one another through technology. NFTs emerging with the level of success that they have inspired a new reality perceived as the metaverse.
With there yet to be a major state people can rely on as a hub for the metaverse, Dubai has recently emerged as a candidate with the launch of their Metaverse Strategy that which they aim to be part of the world’s top 10 metaverse economies.
Part of the strategy is the introduction of more than 40,000 “metaverse jobs” by 2030 to “enhance the metaverse’s economic contributors”.
The Dubai Metaverse Strategy is said to aid research and development with the main aim of attracting companies and projects on a global scale.
Epic Games Snub Minecraft NFT Ban🕹
Gaming institutions have been wary of the global disruptor blockchain which has impacted the majority of mediums we are accustomed to. Blockchain gaming specifically has been a heavily funded angle with the inevitable connections NFTs and the Metaverse have with gaming.
It was announced last week that Microsoft’s Mojang Studios, the creators of the popular game “Minecraft”, will be soon banning the use of NFTs on their community-run game servers.
In response, Epic Games CEO, Tim Sweeney claimed that the Epic Games Store will not ban “NFTs” with multiple NFT-powered games expected to come later this year.
The exposure that NFTs and blockchain can bring to the gaming industry certainly is an area all developers should be exploring however it seems Mojang and Epic Games are in disagreement on how that should operate.
Tesla Q2 Report Shows $936m $BTC Sold🚘
Tesla and Elon Musk have a prominent relationship with crypto as in 2021, they famously bought $1.5billion USD worth of Bitcoin shortly before they announced it as a payment method for their products. After making a U-turn on this decision due to environmental concerns, Tesla’s Q2 report shows them selling 75% of that $1.5billion USD in Bitcoin amounting to $936m USD.
Elon Musk went on to claim that the sale was with the intention of “maximising” the company's cash position.
The fragile crypto market saw a slight sell-off as this news broke however Musk confirmed that Tesla is open to increasing Bitcoin exposure in the future.
Elon also felt the need to express that this decision doesn't amount to any verdict on crypto as a whole as they still hold their $DOGE but more of re-aligning with the main goal of Tesla which is accelerating sustainable energy.
JP Morgan Claims Retail Crypto Demand On The Climb🧗
Anyone participating in the crypto economy will have the understanding that the past few months have proven to be a testing time to hold any crypto with the collapse of Terra and hedge funds like Three Arrows Capital proving the volatility is far from mature in the markets.
JP Morgan has given some light at the end of the tunnel with the claim that demand from retail investors is improving with the “intense phase” of deleveraging appearing to be over.
The bank cited “May and June” as the most “extreme phase of backwardation” since 2018 which they believe is soon to be over. They also referenced the increase in Ethereum network activity as an explanation to as why the “max-pain” could soon be over.
As a reminder this is not a trading signal nor is it investment advice, it is an opinion and each trader/investor should know and understand the risks attached to trading cryptocurrencies. At no point should this be regarded as financial advice, feel free to familiarise yourself with our NFA disclaimer.
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