Recession Signals, Coinbase Lawsuit & NFT Failures

Over the last week, there’s been increased signals of economic woes due to big tech layoffs, housing bubbles, and stock declines (across both traditional and crypto markets).

Craig Wright, who’s been mentioned before in this newsletter, has also filed a multi-billion dollar lawsuit against exchanges Coinbase and Kraken. He won his last court case late last year, worth 1.1 million Bitcoins, on all counts except one. What’s interesting about this new lawsuit is the accusation of both exchanges “passing off fake Bitcoin” (referring to BTC), and the fact that Coinbase has stated that revealing Satoshi Nakamoto’s identity is its biggest threat.

On the NFT side, it seems like sales are flatlining. This comes as no surprise since the hype recently hit a crescendo similar to what was seen in 2017/18 when ICOs were all the rage. This doesn’t mean NFTs are gone for good - on the contrary, it’s just a reflection of the wider market and a much-needed correction.

Even though celebrities like Snoop Dogg and Gary Vaynerchuk are continuing to experiment with NFTs, governments like China and even the United States’ Department of Justice, are cracking down. So while you may hear about all the “money being made” in crypto and NFTs, the reality is that more and more bad actors are going to jail.

What this means for you is to do your research, choose your blockchains wisely, and keep track of everything (for future auditing purposes). Pay attention to the [enterprise] blockchain patent wars, actual on-chain transaction volumes, and international “crypto task force” actions. Governments are slow, but they do eventually catch up with the market(s).

Speak soon,

George Siosi Samuels, Managing Director

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