A Week In Crypto (13-19 Nov 2023)

Welcome back to another weekly capture of some of the biggest stories in crypto from this week! We will always bring you the good, the bad, and the ugly in the crypto space so you are equipped with information from which to form your own well-educated opinions. This week we will cover the latest in rising crypto scams, Argentina’s bullish crypto news, and the SEC’s latest BTC ETF update. Closing out this week’s edition is the crypto fear and greed index, our weekly Token Watch, and a few worthy crypto memes. Enjoy!

Crypto Scams Unveiled: Understanding the Risks

The crypto industry, with its vast wealth building potential, is not without risks

Crypto is a tool. While the tool itself remains an impartial entity, some actors use it for good, while others use it for nefarious purposes. It is important to remember that while crypto scams appear to be on the rise, it is not the tool, but the individual abusing the tool that is the issue. The current state is reminiscent of the rise of online scams during the infancy years of the Internet in the early 90s.

Several factors contribute to crypto’s susceptibility to scams:

1. Privacy Concerns: Transactions on a blockchain are pseudonymous, traceable to digital wallets but not necessarily to individuals.

2. Transaction Irreversibility: Blockchain transactions, even illicit ones, generally cannot be reversed, adding an element of permanence to fraudulent activities.

3. Regulatory Gaps: Cryptocurrency regulations are lacking in many jurisdictions, allowing scammers to operate with impunity where regulations are weak or nonexistent.

4. Technological Complexity: The intricate nature of blockchain technology poses a challenge for many crypto holders, creating opportunities for scammers to exploit knowledge gaps.

5. High Return Potential: The allure of quick riches in risky digital assets may cloud investors' judgment, making them susceptible to offers that seem too good to be true.

6. Rapid Industry Growth: The swift expansion of cryptocurrency as an asset class and industry makes it challenging to monitor new market entrants, leading investors to struggle in differentiating between legitimate opportunities and clever scams.

AI Deep Fake Scams:

Scammers employ various tactics, including the use of advanced technology for deception. A recent example involves scammers using deep fake technology to simulate Ripple CEO Brad Garlinghouse, announcing a fraudulent XRP giveaway. The scam encourages users to transfer XRP to a specified address with the promise of receiving double the sent value within a minute. It's crucial to emphasize that this is a hoax, and falling for it could result in the loss of all sent XRP tokens.

Deep fake scams are not limited to the XRP community. Amazon, Google, and Binance have all experiences scammer’s attempt at swindling unexpecting investors using advanced technology. Many of these attempts experienced quick success through popular social platforms such as TikTok and Youtube. Avoid clicking on suspicious links or using QR codes from suspicious websites.

Please conduct your own diligent research and if it seems to good to be true, it likely is. Stay informed, stay safe!

Argentina Elects Bitcoin-Friendly President:

Javier Milei Emerges Victorious

Source: Cointelegraph

In a historic turn of events, Javier Milei, a strong advocate for Bitcoin and its potential, secured a significant victory in Argentina's presidential run-off election on November 19. Milei's win, with over 55% of the votes and a nearly 3 million vote lead, marked a decisive moment for the country.

As the country grapples with a prolonged inflation crisis, Milei's outspoken criticism of Argentina's central bank resonated with voters. He has denounced the institution as a "scam" and a tool for politicians to impose inflationary taxes on the public. Milei sees Bitcoin as a means to return control of money to the private sector, emphasizing its role in breaking free from traditional financial constraints.

Despite his Bitcoin-friendly stance, Milei has not signaled any immediate plans to make Bitcoin legal tender in Argentina. His victory comes at a time when discussions about the future of money, banking, and cryptocurrency are at the forefront of global economic conversations.

Milei's opponent, Sergio Massa, who served as the country's minister of economy, holds views that appear to be in stark contrast to Milei's. Massa, in October, pledged to launch a central bank digital currency (CBDC) as a solution to Argentina's persistent inflation challenges.

The election process witnessed a significant shift, with Milei winning over voters in the final run-off after securing victory in Argentina's primary election against Messi and other candidates in August. As Javier Milei prepares to assume office on December 10, his presidency is poised to bring about notable changes in Argentina's economic landscape, with the crypto community closely watching the developments.

Bitcoin's Remarkable Surge Fuels Speculation Amid SEC Scrutiny

Source: BusinessNews

In the last 12 months, Bitcoin has experienced a notable resurgence, more than doubling its price and reclaiming attention in the media. This resurgence is occurring despite initial concerns that the potential introduction of a Bitcoin spot exchange-traded fund (ETF) by the U.S. government and BlackRock could negatively impact Bitcoin's status.

As the crypto community eagerly anticipates the possibility of a BlackRock breakthrough in the crypto space, insights from a prominent ETF analyst suggest that leaked discussions from the U.S. Securities and Exchange Commission (SEC) reveal close monitoring of crypto ETF applications and active negotiations with exchanges. The SEC is reportedly advising that the ETF should generate cash rather than in-kind, with discussions ongoing for potential amendments in the coming weeks.

The distinction between cash and in-kind redemption methods is crucial, with in-kind redemptions allowing investors to exit the fund with assets instead of cash. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, shared these insights on Twitter, noting that while it was not entirely unexpected, it remains a positive sign for the industry.

James Seifert, another ETF analyst at Bloomberg Intelligence, echoed the sentiment, stating that there was no significant change in the predicted 90% probability of the SEC approving a Bitcoin spot ETF this year. The developments indicate ongoing progress in navigating the regulatory landscape.

However, Gábor Gurbacs, founder of Pointsville and an advisor to investment manager VanEck, expressed caution. He interpreted the SEC's preference for a cash-based Bitcoin spot ETF as a signal that regulators might not fully grasp or be unwilling to accept the optimal aspects of ETFs and Bitcoin. Gurbacs emphasized that in-kind creations are more efficient, a sentiment echoed by those experienced in managing ETFs.

The overall market sentiment remains optimistic, with Bitcoin's price surging throughout the year and heightened expectations surrounding the potential approval of a Bitcoin spot ETF, especially after BlackRock's application in collaboration with Coinbase as custodian. The crypto community continues to closely follow these developments, anticipating further advancements in the regulatory landscape.

Crypto Fear and Greed Index

Token Watch: Weekly Top Movers Within the Top 100

Bittensor (TAO), Coin #44, 72.8%, $263.86

Rollbit Coin (RLB), Coin #93, -22.8%, $0.176054

Crypto Meme Corner

Source: Google Images

Thank you for joining us in this edition of the Token Mindset newsletter. We're thrilled to witness the continuous growth of our community amidst the escalating interest in the crypto realm. Stay tuned for our next update, coming your way next week, packed with more insightful crypto news. Your engagement is valued, and we appreciate your ongoing support.

Stay educated.

-The Token Mindset Team

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