Decentralized finance presents a new set of risks and variations on the existing ones
Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The goal of DeFi is to get rid of the third parties that are involved in all financial transactions. The system removes the control banks and institutions have on money, financial products, and financial services. It is a new vision of banking and financial services that is based on peer-to-peer payments through blockchain technology.
DeFi allows “trust-less” banking, sidestepping traditional financial middlemen such as banks or brokers. DeFi presents us with a new set of risks and variations on the existing ones which deal with how we handle our non-custodial hot wallets. Crypto wallets are digital storage devices that keep the codes needed to access and exchange your crypto assets safely. A cold wallet is a specially built hardware device that you can use to store cryptocurrencies. A hot wallet, on the other hand, is connected directly to the cloud infrastructure and provides a plethora of features.
DeFi apps leverage cryptography to manage access and control of blockchain accounts, and users usually have keys that give them access. These hot wallets have public and private keys. A Custodial Wallet is defined as a wallet in which the private keys are held by a third party. With a non-custodial wallet, you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours.
Public keys can be shared with others and used to receive crypto and private keys act as a password that grants access to a smart contract call. Cold wallets also are a great self-custody way to hold your crypto if you have plans to hold it for the long term and because they are not connected to the internet, they prove a safer way to store crypto. A cold wallet stores private keys in a secure physical device, it is one of the best ways to protect your cryptocurrency.
The most notable hacks involved in decentralized finance, or DeFi, projects, with more than $10 billion lost to DeFi theft and fraud. Private keys, or a string of letters and numbers similar to a password, are used to unlock access to a holder’s cryptocurrency. To protect your crypto from hackers or any outside threat, it’s important to understand the type of wallet options available. With a non-custodial, or self-custody, wallet, you are in control of your private keys and you own your cryptocurrency holdings.
Cold wallets are less risky and the information remains with the customers. Decentralized finance has the potential to complement traditional financial activities. DeFi’s vulnerabilities are severe because of high leverage, liquidity mismatches, built-in interconnectedness, and the lack of shock-absorbing capacity. Both new and advanced users can fall for phishing attacks This is why it’s important to get knowledgeable about DeFi security measures before investing in any crypto investments.
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Pro-Russian Groups Raised $400,000 In Crypto Since Ukraine Invasion, Report Reveals
Groups supporting Russia’s war effort in Ukraine have been actively collecting cryptocurrency to fund paramilitary operations and evade sanctions, researchers say. According to a new report, these organizations use Telegram to raise money then used to pay for equipment and training.
Paramilitary Groups Employ Cryptocurrency to Fund Russian Operations in Ukraine
Pro-Russian groups have reportedly raised a serious amount of cryptocurrency for Russia’s military activities in Ukraine, circumventing U.S.-led sanctions. According to a study carried out by the digital asset compliance and risk management firm TRM Labs, the total had reached $400,000 as of Sept. 22, CNBC reported on Monday.
The study unveiled that these organizations were using the popular encrypted messaging app Telegram to offer supporters options to send funds, which were later spent to purchase supplies for Russian-affiliated militia groups and pay for their combat training at locations near the Ukrainian border.
One of these, Task Force Rusich, has been labeled by the U.S. Treasury as a “neo-Nazi paramilitary group that has participated in combat alongside Russia’s military in Ukraine.” The department’s Office of Foreign Assets Control (OFAC) has placed it under sanctions. It was trying to raise money for items such as thermal imaging equipment and radios on a Telegram channel.
Another group identified by TRM Labs, the Novorossiya Aid Coordinating Center, raised about $21,000 in cryptocurrency, mainly bitcoin (BTC), with the aim of buying drones, the report added. The organization was established in 2014 to support Russian operations in Ukraine.
The findings come amid mounting sanctions against Russia over its decision to attack Ukraine in late February, which have severely limited its access to the global financial system. The Russian government is now working to legalize crypto payments for international settlements in order to circumvent the restrictions.
Crypto Said to Lack Liquidity for Large-Scale Russian Transactions
While the crypto space may not have the sufficient liquidity Russia would need to move large sums of money, as experts have pointed out, it has enough to allow paramilitary groups to make transfers for the items they need to acquire. Ari Redbord, head of legal and government affairs at TRM Labs, elaborated:
They’re probably using non-compliant exchanges to off-ramp those funds… Of course, there’ll be more. But will it be billions of dollars? Highly unlikely.
To pinpoint the groups, TRM Labs used publicly available wallet addresses and cross-checked other websites and online activity. Redbord remarked, however, that it’s not possible to establish with certainty whether they were working with the Russian government.
“I think an interesting part of this story is that crypto is just a form of payment in these cases. It’s a way to move funds. And there’s an example of it being used for good and example of it being used for bad in this context,” the executive added. Ukrainian volunteer groups and government have been also relying on crypto donations to fund their defense and humanitarian efforts.
The latest research on the topic comes after, earlier this year, a report by blockchain analytics firm Chainalysis identified 54 pro-Russian groups that had collectively received over $2.2 million in various cryptocurrencies. Although most of the crypto funds were sent to several of these organizations, the rest had received considerable amounts as well, the company said.
Tags in this story
conflict, Crypto, Crypto Donations, Cryptocurrencies, Cryptocurrency, fund raising, Funds, Groups, invasion, operations, organizations, paramilitary, Russia, russian, transactions, Ukraine, ukrainian, War
Do you think groups on both sides in the conflict in Ukraine will continue to raise funds in cryptocurrency? Share your thoughts on the subject in the comments section below.
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
BudBlockz Ganja Guruz; The Best NFT Collection Since Crypto Cannabis Club
There is something so effortlessly thrilling and risqué about the Cannabis culture. That is why NFT projects like the Crypto Cannabis Club’s NFTokers and BudBlockz’ Ganja Guruz are so enthralling.
Founded by Jimmy and Kevin Fitzpatrick, the Crypto Cannabis Club immediately had a significant impact on the Cannabis community on the Blockchain. In a little over a year after the club’s launch in July 2021, CCC has already attracted over 6000 registered members.
Unifying the Blockchain cannabis community
The NFTokers collection sold out its 10,000 collectibles a week after the club’s launch as well. This, in addition to its jam-packed events, goes out to show just how popular the NFTokers collection is in terms of unifying the Cannabis Blockchain and Metaverse community.
And while many other Cannabis NFT collections have been launched since the Crypto Cannabis Club, none seem to have prospects as strong as those of the upcoming Ganja Guruz NFT collection.
So what makes Ganja Guruz a worthy successor and, frankly speaking, a worthy challenger to the Crypto Cannabis Club?
A premier Cannabis NFT collection
The Ganja Guruz NFT collection is the premier collection from BudBlockz – a one-of-one decentralized Cannabis e-commerce platform. The following are some of the qualities that make the Ganja Guruz NFT collection the best since Crypto Cannabis Club;
1. Fractional ownership
The Ganja Guruz collection will enable holders of its NFTs to have ownership stakes in Cannabis dispensaries, stores, and farms across the world. This is immensely beneficial as it will not only provide NFT holders with a reliable source of passive income.
Rather, it will also eliminate barriers to participation and enhances inclusivity. This is because people with limited resources will also get a chance to own portions of income-generating assets. This is without necessarily acquiring the large capital outlay that would otherwise be required.
2. Exclusive access to membership benefits
Owning Ganja Guruz NFTs will grant BudBlockz fans unrestricted access to Cannabis facilities in the BudBlockz ecosystem worldwide. This is because the NFTs will act as membership licenses that will prove the eligibility of users.
Additionally, Ganja Guruz NFT holders will enjoy various benefits intended for verified members only. For instance, holders will receive promotional codes with which they will be able to purchase Cannabis products from Cannabis stores at discounted rates.
3. Robust and inclusive NFT marketplace
Most NFT marketplaces promote and sell the collectibles/products of the parent NFT project almost exclusively. However, the BudBlockz Ganja Guruz NFT marketplace will be unique in this regard.
This is because Ganja Guruz community members will also be allowed to join in on the action. Verified holders will be allowed create their own Cannabis-themed NFT collectibles, promote, and sell them in the BudBlockz NFT marketplace along with original Ganja Guruz NFTs.
Additionally, holders of Ganja Guruz NFTs will be able to sell their NFT collectibles and transfer their fractional ownership stakes to everyone including unregistered users who are neither BudBlockz community members nor NFT holders.
This will serve to infinitely expand the income possibilities for BudBlockz community members beyond owning Ganja Guruz NFTs and staking $BLUNT tokens.
A worthy successor to the Crypto Cannabis Club
All the qualities outlined above prove that Ganja Guruz will significantly transform the Cannabis NFT landscape in terms of utility, membership benefits, inclusivity, and accessibility.
Therefore, investors should definitely look forward to be part of the project once it is launched. This will set them up to reap the future benefits of Ganja Guruz and BudBlockz infinite potential in the decentralized Cannabis market.
Learn more about BudBlockz (BLUNT)
Official Website: https://budblockz.io
Presale Registration: https://app.budblockz.io/sign-up
Telegram Group: https://t.me/BudBlockz
Discord Server: https://discord.gg/s7hBFgvTmN
All BudBlockz Links: https://linktr.ee/budblockz
To purchase your $BLUNT tokens
Step 1: Visit the official BudBlockz website https://budblockz.io
Step 2: Click the “sign up” button at the top of the page
Step 3: Create a Budblockz account. Ensure you use a valid email address.
Step 4: From your client dashboard, click the “buy $BLUNT” button
Step 5: set the amount you want to purchase and the currency you want to order in
Step 6: Make the payment to the provided wallet address
Step 7: Receive your tokens!
The post BudBlockz Ganja Guruz; The Best NFT Collection since Crypto Cannabis Club appeared first on Analytics Insight.
Tether Strives To Regain Community Trust, Slashes Commercial Paper Holdings
In an effort to increase transparency, Tether has recruited a new accounting company to undertake routine audits and attestation reports to guarantee that its stablecoin is appropriately backed by US dollars. As of September 30, 2022, Tether, the company that issues stablecoins, had less than $50 million’s worth of commercial paper units in its portfolio.
Unsecured, short-term debt instruments known as “commercial paper” are issued by corporations. It is frequently employed to finance short-term commitments like payroll, accounts payable, and inventories. While treasury bills are touted as more reliable than commercial papers, they offer “zero default risk” because investors are assured of recouping the purchase price.
Tether’s chief technology officer Paolo Ardoino made the statement in a tweet on October 3 and added that the percentage of US Treasury bills in Tether’s overall portfolio grew to 58.1%, up 25.1% from the 43.5% it held as of June 30.
To increase the stability of its ecosystem and the USDT stablecoin, Tether stated in June that it planned to roll USDT’s commercial paper backing into short-maturity U.S. Treasury bills, eventually reducing it to “zero.”
To increase transparency and frequently provide audit and attestation reports, it recruited BDO Italia, a European accounting firm, as a new auditor to independently assess its stablecoin reserves in July.
The United States District Court in New York ordered Tether to prove that the USDT stablecoin was backed 1:1 by US dollars on September 19.
Tether is well along the way to selling off all of its holdings of commercial paper by the end of 2022, having reduced its reserves from 20 billion units in Q1 2022 to 8.4 billion units in Q2 2022.
As of the writing of this article, USDT is trading at $1, with a market value of $70,163,891,644, and a 24-hour trading volume of $41,421,937,703. There is a market supply of 67.95 billion USDT. All the indicators are displaying a bullish momentum at the moment.
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