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EU urged to follow El Salvador’s lead with Bitcoin reserves by European MP

European Union Member of Parliament Sarah Knafo has urged the bloc to prioritize a Strategic Bitcoin Reserve instead of moving forward with the European Central Bank’s (ECB) digital euro project.

In a Dec. 17 video shared on X, Knafo criticized the ECB’s plan for a centralized digital currency, arguing it risks financial freedom and overreach. Instead, she advocated for Bitcoin as a decentralized safeguard against inflation and poor monetary policies.

Knafo stated that a strategic Bitcoin reserve would align the EU with global financial trends while fostering resilience against economic uncertainty.

Bitcoin as a strategic asset

Knafo wrote:

NO to the digital euro. YES to a strategic reserve of BITCOIN.”

The lawmaker pointed to El Salvador as a prime example of Bitcoin’s potential. Despite international skepticism, El Salvador adopted Bitcoin as a legal tender three years ago and has since seen its national Bitcoin investment double in value.

Knafo noted that this financial gain has improved economic security and empowered citizens, offering a model that European countries could replicate. She urged EU nations to recognize Bitcoin’s strategic importance and follow El Salvador’s lead by building their reserves.

The lawmaker also referenced shifting attitudes in the United States. Federal Reserve Chair Jerome Powell’s description of Bitcoin as “digital gold” and President-elect Donald Trump’s evolving stance highlight growing recognition of BTC’s potential as a reliable financial asset.

Protecting financial freedom

Knafo warned that the ECB’s push for a digital euro signals a move toward excessive centralized control.

She stated:

“It is time to change the paradigm. It is time to protect our people from inflation and the poor economic choices of our states. It is time to say no to the totalitarian temptations of the European Central Bank, which wants to impose a digital euro entirely in its hands.”

Instead, she argued that Bitcoin offers a decentralized alternative, empowering citizens and fostering financial independence.

Knafo concluded by calling on European leaders to adopt a forward-thinking financial strategy. She argued that Bitcoin would allow the EU to secure its economic future, strengthen resilience, and uphold the principles of financial freedom.

Mentioned in this article

2024-12-17 14:44:29

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Crypto News

Sticker Shop Launches on Telegram With Tradable NFT Decals on TON

Tradable NFT stickers are launching on Telegram via The Open Network (TON).

Open Builders—the team behind viral tap-to-earn game Notcoin—and the DOGS meme coin community announced Tuesday that they have teamed up to open Sticker Shop. The Telegram mini app will sell limited edition digital sticker packs purchased via Stars, the messaging platform’s native in-app currency that’s tied to Toncoin (TON).

Purchased stickers can be shared in chats and bought and sold via marketplaces (such as Getgems) as NFTs. Each sticker series will be capped at a specific number, creating scarcity and potential value for collectors.

« Over 500 billion stickers are sent monthly by users on Telegram. Tokenized stickers are the new mass adoption meta,” said Notcoin and Open Builders founder Sasha Plotvinov, in a statement.

Sticker Shop will feature collaborations with projects such as Pudgy Penguins, Flappy Bird, and the Bored Ape Yacht Club. Telegram trading app Blum is also dropping a series at launch, while the “King Dogs” sticker series will celebrate the DOGS meme coin on TON.

Pavel Durov, the co-founder of Telegram and one of the original builders of TON, said at April’s Token 2049 conference in Singapore that the messaging platform planned to tokenize stickers via the TON blockchain. The move would enable ownership rights for buyers and provide an overwhelming share of the sale price as revenue for creators.

Sticker Shop is inspired by Durov’s vision, an Open Builders representative clarified to Decrypt, but it is not an official Telegram project nor a collaboration with Durov himself.

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2024-12-17 13:44:45

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Aurora Labs Launches TurboChain and TurboSwap for the AI Meme Coin TURBO

Aurora Labs, the developer behind the Near-based next-generation blockchain Aurora, has unveiled a network and decentralized trading platform for the artificial intelligence (AI) meme coin Turbo (TURBO) to advance the token’s ecosystem.

According to a press release shared with CryptoPotato, Aurora Labs has launched TurboChain and TurboSwap in collaboration with the Near Protocol. TurboChain is the first AI meme coin blockchain and a virtual chain for TURBO, while TurboSwap offers decentralized trading with cross-chain liquidity for the ecosystem.

Aurora Labs Unveils TurboChain and TurboSwap

Per the announcement, TurboChain will offer its users scalability, customization, and unmatched speed. Built using Aurora’s advanced Virtual Chain technology, the network allows developers to create decentralized applications and enables cross-chain compatibility with Ethereum, Near Protocol, and other major chains.

“By blending advanced technology with a thriving community-driven approach, TurboChain pushes the boundaries of blockchain innovation and exemplifies the future of AI-powered meme coins,” Aurora Labs stated.

The launch of the TurboChain will enhance Turbo’s utility as the asset will become the network’s native token, powering all transactions and playing a central role in the ecosystem. The community-run meme coin, created from the ChatGPT prompt “create the next great meme coin, starting with a budget of just $69,” currently operates on the Ethereum blockchain.

Noteworthily, TurboSwap will enable users to access liquidity from several networks, including Ethereum, Near, Bitcoin, Solana, Arbitrum, Base, and TurboChain.

Alex Shevchenko, CEO of Aurora Labs, said: “TurboChain and TurboSwap show the power of Aurora Virtual Chains. They can turn ideas into scalable blockchain ecosystems. With the Turbo Token community, we’re setting a new standard for seamless blockchain innovation and interoperability.”

Powering Communities to Use Aurora Cloud

Aurora Labs intends to launch 1,000 interconnected blockchains in 2025, and TurboChain and TurboSwap represent the start of this plan. This plan aims to empower communities to use Aurora Cloud, which enables innovation at a low cost and with simplicity.

Aurora Cloud allows innovators to deploy scalable virtual chains without any tech skills and at a very low cost compared to traditional financial systems. Aurora Labs says launching a blockchain on Aurora Cloud is as easy as launching a Shopify store.

Meanwhile, TURBO recently hit an all-time high, rallying to $0.014 on December 11, per data from CoinMarketCap. At the time of writing, the token was worth $0.010, slightly up in the past 24 hours.

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2024-12-17 14:00:08

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Hong Kong’s path to crypto-friendly leadership expands with tax framework adoption

The Hong Kong government has reaffirmed its intention to adopt a global crypto tax reporting framework by 2028, according to a recent statement.

This decision followed recent discussions with the Organization for Economic Cooperation and Development (OECD) Global Forum on Transparency and Exchange of Tax Information.

The framework, introduced in June 2023, expands the existing Common Reporting Standard (CRS) to cover crypto asset transactions. It establishes an automated system for sharing crypto account data across tax jurisdictions where users reside, aiming to improve transparency and curb cross-border tax evasion.

Hong Kong authorities are preparing legislative amendments to align with the framework, with completion expected by 2026.

Once enacted, the first automatic exchange of crypto-related information with participating jurisdictions will take place in 2028. The shared data will enable tax authorities across countries to effectively enforce global tax compliance.

Since 2018, the city has been sharing financial account information with tax partners annually to support assessments and detect evasion.

Secretary for Financial Services and the Treasury Christopher Hui highlighted the initiative’s significance, underscoring Hong Kong’s dedication to international tax cooperation.

Hui emphasized that this step is vital to maintaining the city’s status as a global financial and business hub while reinforcing its responsible approach to tax governance. He stated:

“The implementation is crucial for maintaining Hong Kong’s reputation as an international financial and business centre. It also reflects Hong Kong’s ongoing efforts in promoting international tax co-operation as a responsible tax jurisdiction.”

The move is part of Hong Kong’s broader efforts to solidify its status as a leading crypto-friendly hub. Authorities have rolled out initiatives such as proposed tax breaks for hedge funds and private equity firms to attract global investors.

Additionally, a stablecoin regulation bill published earlier this month outlines guidelines for issuers and marketers, reinforcing Hong Kong’s push for regulatory clarity in the digital asset space.

2024-12-17 12:50:25

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Crypto News

India Tax Regulator: Pre-2022 Crypto Gains Are Subject to Capital Gains Tax

The Income Tax Appellate Tribunal, or ITAT, in Jodhpur, India, has ruled that profits from crypto sales prior to the introduction of the Virtual Digital Asset, or VDA, regime in 2022 are to be treated as capital gains.

The decision classifies crypto, including Bitcoin, as capital assets, resolving ambiguity that previously surrounded crypto taxation.

The ITAT’s decision ensures fair treatment under long-term capital gains laws, reducing the tax burden for early adopters.

The ruling derived from a case where an individual purchased Bitcoin worth $6,478 (₹5.05 lakh) in 2015-16 and sold it for $78,8063.84 (₹6.69 crore) in 2020-21.

The individual argued that the gains from the sale should be treated as long-term capital gains since the holding period exceeded three years. The assessing tax officer initially disagreed, contending that cryptos lacked inherent value and could not be classified as property.

Since the holding period exceeded three years, the tribunal ruled the profits qualified as long-term capital gains, allowing the taxpayer to claim deductions under existing law.

The ITAT dismissed the tax officer’s argument, holding that under Section 2(14) of the Income Tax Act, crypto constitutes property rights.

The tribunal stated “property of any kind held by an assessee,” including a right or claim on an asset, falls under the definition of a capital asset.

“The present ruling provides long-term crypto holders with a well-reasoned precedent to challenge and oust unjustified tax demands or scrutiny for the period up to FY 2021,” Hargun Singh, Web3 lawyer and associate at Luthra and Luthra Law Offices India, told Decrypt.

The tribunal reiterated that taxation ambiguities should favor taxpayers, citing the Supreme Court of India’s principle: “Where two reasonable constructions of a taxing provision are possible, then the construction which favours the assessee must be adopted.”

In its ruling, the ITAT highlighted that crypto, even before the Finance Act of 2022, represented a clear right attached to an investment.

“The ITAT Jodhpur’s decision holding Bitcoin as ‘property’ under the Income Tax Act is significant for all hodlers, especially if they have booked profits prior to the insertion of the term ‘VDA’ into the IT Act,” crypto lawyer Dhrupad Das, founding partner at Panda Law, told Decrypt. “This judgment bridges the pre- and post-amendment regimes for digital assets and aligns Indian tax jurisprudence with international standards.”

This ruling is particularly relevant for transactions conducted before April 1, 2022, when the government introduced the VDA-specific tax regime.

Under the post-2022 framework, all crypto gains are taxed at a flat 30% rate, with no distinction between long- and short-term holdings and no scope for deductions.

For pre-2022 transactions, however, gains are taxed as capital gains, with long-term holdings benefiting from lower tax rates and available deductions.

“Some classified their profits under capital gains to avail lower tax rates, while others conservatively reported them under income from other sources, incurring higher taxes,” Singh added. “This ruling ensures consistency, decisively classifying pre-2022 crypto gains as capital gains.”

In February 2022, Indian Finance Minister Nirmala Sitharaman announced plans to introduce a 30% tax on any income made on cryptos, with no deductions or exemptions.

The announcement received a huge backlash from the Indian crypto community, with many expressing concerns over the steep tax rates coupled with a lack of regulatory clarity.

Edited by Stacy Elliott.

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2024-12-17 12:12:23

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Bitcoin Still in Bull Phase But Far From Euphoric Peaks: Bitfinex Alpha

Bitcoin is currently trading above $107,000, but analysts at the cryptocurrency exchange Bitfinex say the asset is still far from “euphoric peaks.” Historical data cited by the analysts suggest the crypto market is in the middle of the bull phase and could peak in Q3 or Q4 2025, roughly 450 days after the April 2024 halving.

In a weekly report detailing expectations for bitcoin’s price in 2025, Bitfinex analysts said it could peak at $339,000 or $145,000 due to diminishing returns moderating the level of gains seen in previous cycles.

BTC Still Far From Euphoric Peaks

Bitcoin has rallied 573% from its bear market lows of $15,487 in November 2022 and 130% on a year-to-date basis. This bull market has been driven by strong institutional demand, spot accumulation, and consistent purchases by Bitcoin exchange-traded funds (ETFs).

Spot ETFs are now considered a dominant force in the Bitcoin market. The products hold more than 1.13 million BTC and have a cumulative inflow of over $50 billion.

With institutional investors and the spot Bitcoin ETF market driving demand for BTC, analysts expect corrections in this bull cycle to remain relatively small. Data from previous cycles also show that BTC has recorded minimal corrections after entering price discovery post-halving. In 2017, the maximum decline during such phases was 33.2%, while the 2020 cycle was minimal at 27.1%.

“In the current bull cycle, which began in mid to late 2023, Bitcoinʼs corrections have been smaller, particularly since the launch of Bitcoin ETFs in early 2024. With institutional and ETF demand providing consistent buying pressure, we expect this trend to continue, keeping future corrections limited and potentially shorter in duration,” Bitfinex stated.

Optimistic Expectations for 2025

Although analysts have optimistic expectations for BTC in 2025, they have warned that the cryptocurrency may not see rallies as high as recorded in previous cycles. In 2021, BTC rose roughly 40% from its moving averages; however, the trend of diminishing returns could place the surge at 15-20% above the moving averages.

This translates to BTC peaking at $160,000 or $200,000 in mid-2025 or, in a less likely scenario, $290,000 by early 2026.

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2024-12-17 11:28:59

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LastPass-linked crypto theft climbs to over $250 million after latest $5.4 million hit

Blockchain investigator ZachXBT has revealed that malicious actors, identified as the “LastPass threat actor,” have siphoned off approximately $5.36 million in cryptocurrencies.

In a Dec. 17 post on his Telegram Channel, ZachXBT stated:

“Today an estimated $5.36M was drained by the LastPass threat actor from 40+ victim addresses. Stolen funds were swapped for ETH and transferred to various instant exchanges from Ethereum to Bitcoin.”

This exploit traces back to a December 2022 security breach, when LastPass disclosed that attackers accessed archived backups of encrypted vault data stored on a third-party cloud platform. At the time, LastPass, a popular password manager, warned that the breach exposed user vault data, including usernames, passwords, and secure notes.

However, LastPass assured users that brute-forcing master passwords would be extremely challenging due to strong encryption protocols.

Despite this claim, recent attacks have shown that the hackers have systematically targeted users who stored their private keys or seed phrases in their LastPass vaults.

Over $250 million now lost

The Security Alliance (SEAL), a team of cybersecurity experts, reported that crypto losses connected to the breach have now exceeded $250 million as of May 2024.

According to SEAL, these attacks could have been prevented as many victims—despite practicing caution—unknowingly placed their digital assets at risk by relying on centralized storage for private keys.

Considering the latest wave of attack, SEAL stated:

“Don’t be a part of the statistic. If you used LastPass in the past and think there’s a chance you stored your private key or seed phrase in your vault, take the time and move all your tokens  [and] transfer ownership of any contracts/multisigs/etc.”

Security experts noted that this incident highlights the dangers of trusting password managers with sensitive crypto-related data. To mitigate further losses, crypto holders must immediately safeguard their assets and reduce exposure to similar vulnerabilities.

Posted In: Crime, Featured

2024-12-17 10:03:06

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Crypto News

The 7 Prominent Theories Explaining the Mystery Drones

President-elect Donald Trump took to the podium Monday to claim that “the Government knows” what’s behind the mysterious drone sightings from New Jersey to California. “Something strange is going on,” he added.

You can say that again.

As sightings surge across the globe, a pressing question lingers: who—or what—is controlling these unknown aerial phenomena?

To date, over 3000 sightings have been reported across several states, including New Jersey, New York, and Maryland. The first sightings began in mid-November, sparking a flurry of speculation ranging from extraterrestrial visitors to foreign adversaries.

Here are some of the most prevalent theories on social media attempting to explain the phenomenon.

The Missing Nukes/Dirty Bomb Sweep Theory

One of the most prominent theories advanced during the weekend suggests the drones are a federal operation trying to find missing nuclear weapons or radioactive material trafficked by terrorists.

This nightmare scenario, suggested by Saxon Aerospace CEO John Ferguson, has gone viral on social media.

“Drones have no reason to be in the air at night unless you’re doing some type of ISR work, intelligence, surveillance, reconnaissance, looking for bad guys or looking for a victim, a search and rescue victim, or law enforcement or some type of military project,” Ferguson said in a clip uploaded to TikTok.

Ferguson recalled what he believes could be a similar event a few years ago in which drones were reportedly sighted flying in grid formations at night along the Interstate 70 corridor in eastern Colorado and western Nebraska. The sightings began in mid-December and carried into January, with reports of convoys as large as 19 drones.

“It was believed that those drones were looking for radioactive material because there had been some material that come up missing here in the United States, and they felt like it was a high probability that the nuclear or the radioactive material would be taken along interstate 70 corridor, heading east or west or south.”

The PSY-OP/Government Conspiracy Theory

A far less horrifying theory suggests the drones may be experimental technology undergoing public testing. While less prevalent, this idea aligns with speculation that the drones could be part of a psychological operation, or PSY-OP, designed to influence public perception or government policy.

The usual social media conspiracy theorists take this notion further, pushing the idea that the increase in drone activity is aimed at diverting attention from more important government activities attendant to the waning days of the Biden Administration.

Certainly, the federal government isn’t doing much to get to the bottom of the drone story, further fueling suspicion. “I generally believe in government, but this is testing my faith in their honesty,” New Jersey State Senator John Bramnick said Monday.”My guess is there is information, but they’re holding it back. And now what you have is panic.” He added that “the Department of Defense has to come clean with the American public.”

The ET Theory

No mystery involving unidentified aerial phenomena would be complete without extraterrestrial speculation.

Mitch Horowitz, UFO expert and host of HBO Max’s “Alien Encounters: Fact or Fiction,” believes the term “drones” might serve as a psychological crutch to help the public process the idea of alien visitors.

“I think we’re using the term drones because it’s reassuring to employ a familiar term; it stands to reason that if we put a familiar name on bizarre phenomena, it’s reassuring in a certain way,” Horowitz previously told Decrypt. “I haven’t met anybody of any quality of intellect who professes any degree of confidence in what is going on.”

The Mass Hysteria Theory

At the other end of the spectrum are people who say that the drone sightings across the U.S. are mass hysteria rather than a real phenomenon, despite government officials saying they are investigating. They consistently point out that many reports of unexplained aerial phenomena are, in fact, nothing more than airplanes.

The Copycats/Hoaxers Theory

The simplest explanation may be that people are pulling a prank—though if the drones being reported are as big as some claim, that’s unlikely. Still, increased public and media interest has likely encouraged hobbyists and more likely pranksters to fly their drones in areas where sightings have been reported..

« When a story like this gets attention, it draws more people in—some flying drones to look for others, and some just flying them to mess with people,” Grant Jordan, the CEO of San Diego-based drone detection software company SkySafe, told Decrypt. “People are now seeing these drones in San Diego and the videos that were shown, it’s just standard air traffic going into the San Diego Airport.”

The Iranian Mothership/Foreign Spy Theory

Earlier this month, U.S. Representative Jeff Van Drew floated the idea that the drones were being launched from a “mothership” in the Atlantic Ocean controlled by Iran, which had somehow managed to avoid detection as it sat off the Eastern Seaboard.

This theory was swiftly debunked by the U.S. Department of Defense.

“There is not any truth to that,” Pentagon Press Secretary Sabrina Singh told reporters last week. “There is no Iranian ship off the coast of the United States, and there’s no so-called mothership launching drones towards the United States.”

The Angels Theory

Meanwhile, a surprising number of people seem to think that the drones are angels.

Edited by Josh Quittner and Sebastian Sinclair

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2024-12-16 22:08:49

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Ripple (XRP) Reclaims 3rd Spot After 7% Daily Surge, Bitcoin (BTC) Neared $108K (Market Watch)

Bitcoin is in a price discovery mode once again as it continues to chart fresh all-time highs daily, with the latest coming hours ago at just under $108,000.

Many altcoins have followed suit, including XRP, XLM, and CRO. In Ripple’s case, the asset managed to overcome USDT in terms of market cap once again.

BTC Keeps Pumping

It was just a week ago when the primary cryptocurrency struggled to maintain its momentum and was pushed south hard on a couple of occasions to $94,400. However, the bulls managed to defend that level and initiated a leg-up that drove the asset to $98,000 on Thursday and beyond $100,000 on Friday.

Since then, BTC has predominantly traded within six-digit territory. Moreover, it broke its early December all-time high of $103,800 on Monday by surging past $106,000.

After a brief retracement in the afternoon, the cryptocurrency went on the offensive in the evening, and especially during the Tuesday morning Asian trading session, when it exploded to $107.800 to chart its latest peak.

Despite losing some ground since then, BTC is still above $107,000. Its market cap has skyrocketed to well above $2.1 trillion, and its dominance over the alts has risen to almost 54% on CG.

Bitcoin/Price/Chart 17.12.2024. Source: TradingView

XRP on the Rise

Perhaps the biggest news in the cryptocurrency industry yesterday came from Ripple as the company said its stablecoin has been approved and is ready to be deployed today – December 17. This sent the other native token – XRP – soaring immediately, as it pumped from under $2.37 to a multi-day peak of almost $2.6 earlier today. Additionally, XRP has reclaimed the third spot in terms of market cap by surpassing USDT.

XLM and CRO are the other notable gainers from the larger-cap alts, surging by 9% and 7%, respectively. ETH is above $4,000 once again after a minor daily increase, similar to those of SOL, BNB, ADA, and AVAX.

In contrast, TON and LINK have retraced by around 4% each.

The total crypto market cap has gained another $90 billion in a day and is at a peak of its own of nearly $3.950 trillion.

Cryptocurrency Market Overview. Source: QuantifyCrypto
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2024-12-17 09:45:10

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SEC Serves NFT Project CyberKongz With Wells Notice Citing Securities Violations

The U.S. Securities and Exchange Commission has issued a Wells Notice to NFT gaming project CyberKongz, marking the latest regulatory probe into an entity of its type.

“The SEC’s Division of Enforcement have approached us with very concerning rhetoric that you can not have a token (ERC-20) in tandem with a blockchain game without registering it as a security,” the project said in a statement posted to X on Monday.

A Wells Notice informs recipients that the regulator is thinking of undertaking enforcement actions based on what it discovers from preliminary investigations. Once served, the notice typically gives recipients 30 days to respond before the SEC decides whether to pursue it.

A full-blown investigation and subsequent charges against CyberKongz could present “major implications” for the blockchain gaming industry, it said, adding it would “defend against this stance for the wider space.”

In particular, projects combining NFTs with utility tokens could be affected. CyberKongz, which operates without venture funding or significant treasury reserves, said it plans to challenge the notice.

« We have been suffering in silence for the last two years, ever since we first received contact from the SEC, » CyberKongz said, alleging the regulator has « a complete lack of understanding of blockchain technologies, » which has resulted in « unjust accusations and information inaccuracies. »

CyberKongz and the SEC did not immediately respond to Decrypt’s requests for comment.

The SEC’s concern is centered on the NFT project’s April 2021 Genesis Kongz contract migration, which regulators interpreted as a token sale, according to the company’s statement. CyberKongz maintains this was purely a technical upgrade rather than a securities offering.

« If they cannot distinguish between a primary sale and a contract migration, what hope do we currently have for a clear regulatory pathway going forward? » the project said.

As a gaming platform, CyberKongz provides users with features such as randomly generated 2D and 3D avatar NFTs used in « play & kollect » games on the Ronin blockchain.

The notice served to CyberKongz follows similar regulatory scrutiny leveled against NFT platform Immutable in November, in which token sales were also put into question.

« You know you’re part of a revolution when you start to become persecuted, » says Jihoz Zirlin, co-founder of Axie Infinity, commenting on X. “I stand with CyberKongz.”

Despite the revelation, the project’s floor price remains steady at 8.2 ETH ($32,800), up 14.4% over 24 hours, CoinGecko data shows.

Edited by Sebastian Sinclair

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2024-12-17 06:12:21

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