Monday, Jun 6th 2022

Crypto Three Things (6/6)

Commentary

“If you want to live a happy life, tie it to a goal, not to people or things.”― Albert Einstein

1) Japan passes stablecoin legislation to protect investors: The Japanese government codified a stablecoin law after the Terra collapse shook the crypto realm, wiping away tens of billions of dollars. The law envisions that stablecoins will be defined as digital money and only licensed banks will be allowed to issue them, guaranteeing that holders can redeem them at face value. The new regulatory guardrails will take effect in 2023.

Titan’s Takeaway: The landmark legislation could prove to be an example for other countries like the U.S. to imitate as they attempt to regulate the cryptocurrency industry. Stablecoins, which currently represent a staggering $161B in aggregate market value, are generally crypto assets preferred for their safe-haven appeal so regulating the assets and creating a well-functioning asset class should be top of mind.

2) Bored Ape Yacht Club Discord server compromised: Over the weekend, an attacker made off with roughly 200 ETH ($360K) after they took hold of a community manager’s Discord account. The bad actor proceeded with posting phishing links across the project’s Discord groups, luring users with a promise of exclusive giveaways. Yuga Labs, the company behind the Bored Apes NFTs, confirmed the exploit and said it is actively investigating the incident.

Titan’s Takeaway: Whether it’s traditional web clients such as Discord, or Web3 platforms and bridges, crypto is an attractive target for bad actors. A recent report by the Federal Trade Commission estimated that over $1B has been stolen by crypto scammers since the start of 2021 – an alarming sign to prompt users to be careful and vigilant in their crypto activities.

3) Economist crypto survey highlights investors see growing demand: The “Digimentality 2022” report published by The Economist found that respondents considered digital assets useful tools for portfolio diversification. The study was completed by 3,000 consumers, 150 of whom were institutional investors. Web3 and the Metaverse, according to the poll, will also see an accelerated pace of growth.

Titan’s Takeaway: This report shines a light on a view we all share – crypto is here to stay. As the market continues to enjoy increasing capital inflows, it is only natural that the space will be grabbing more attention as its adoption rates go up.

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