The crypto world is unpredictable and it’s not blockchain

Brother Yuppie will tell you a few small news today. You can taste it carefully.

1. Tell me, is it a rogue trader or a rogue exchange?

A trader placed a very low pending order on Ripple’s XRP token and watched with ill will, and the value of XRP plummeted very briefly in what was called a flash crash. But its price quickly recovered, and the trader found himself $458,000 richer. However, when he tried to withdraw some tokens from the exchange he used, LAToken, the withdrawal was rejected and their account was restricted for 24 hours for violating unspecified terms of use. When the trader re-entered their account, the XRP he had purchased was nowhere to be found.

The crypto world is unpredictable and it’s not blockchain

2. Giant whales appear and loot $123 million in airdrop tokens

A blockchain protocol called Juno launched in October 2021, and the project will airdrop their $JUNO tokens to members of the Cosmos ecosystem based on the amount of $ATOM tokens users hold. The protocol agreed through a community vote that they would cap the amount they would give to a single person at $50,000 $JUNO to “ensure a fair distribution across the network.” However, there was no limit to having one cryptocurrency wallet to claim the airdropped tokens, so a single “whale” account ended up receiving over $3.1 million in $JUNO in dozens of wallets, which they later added to These wallets are combined into one. Due to the huge value of tokens concentrated in one wallet (equivalent to about 123 million US dollars), if a “whale” sells their $JUNO, he is enough to wipe out the liquidity of a centralized exchange and make the price of the token reset to zero. They can also conduct a 51% attack on the network since he already has half of the fiat “hash power”.

On March 10, a community proposal for the project was submitted that, if successful, would take most of the “whales” tokens (worth about $121 million), leaving them with $50,000 in JUNO (slightly lower). $2 million) tokens, which was originally the cap per person. While the impact of tokens remaining on one person is severe, voting through also makes the value of “your keys, your coins” have a significant negative impact in the ecosystem, that is, if you control the keys to your wallet, Your assets cannot be taken away. This is in the spirit of Web3.

The crypto world is unpredictable and it’s not blockchain

3. This underwear company wants to print the BAYC NFT it owns on bras, and consumers are strongly opposed to it

Trust me, I’m as shocked as you are to discover that the MeUndies lingerie brand has a “community”.

But the community apparently opposed the brand’s purchase of the Bored Ape NFT, which they had intended to use as a print for their lingerie line.

A MeUndies spokesperson wrote on Reddit: “We don’t make any excuses, we just didn’t take into account the feelings of our users and made such a hasty decision.”

After learning about the carbon footprint impact of NFTs and cryptocurrencies, they will cancel their plans to stamp and sell their Bored Ape.

Their user’s NFT appears to be BAYC #3986, which was last sold in January for around 107 ETH ($260,000).

The crypto world is unpredictable and it’s not blockchain

4. Facebook bans cryptocurrency scammers who posed as economists for up to $140,000

The crypto world is unpredictable and it’s not blockchain

The Snopes website found that a Facebook personal account posing as economist David Rosenberg attracted around 3.4 bitcoins of stolen money, ostensibly believing that the victims were investing in the real David Rosenberg. Fake David Rosenberg profiles, and others associated with it, posted about how he could help them get out of debt or make big bucks. The scammer’s account was originally created in 2012, and when it started being used in a cryptocurrency scam in 2021, the operators edited old posts to make it appear that the “investment” action had been going on for years. Facebook banned the account shortly after the Snopes website published the report.

The crypto world is unpredictable and it’s not blockchain

5. OpenSea bans all Iranian artists, which is very unblocked

Last week, the NFT community was shocked to learn that both MetaMask and OpenSea had carried out mass bans and deletions of accounts linked to Iran. And there was no prior warning before deletion.

Since the incident, it has been discovered that in both cases, the root of the problem was U.S. sanctions law. Since Iran is a country sanctioned by the United States, both MetaMask and OpenSea are forced to comply with Iranian trading and sanctions.

While MetaMask has addressed the situation — albeit with a two-sentence blog post — OpenSea has largely ignored it. The company, which manages the world’s largest NFT marketplace, has been ignoring any announcements of its own, other than responding to one user’s tweet.

The crypto world is unpredictable and it’s not blockchain

what happened

When accounts by Iranian-born creators started disappearing from OpenSea on March 3 without any warning, many in the NFT community concluded that the marketplace must have been depriving artists from Iranian IP addresses of access. rights (that is, those Iranian users who have access in the first place). To some extent, many Iranian users have been unable to access OpenSea, and some have had to use a VPN to access the site. However, hours after the news broke, it was revealed that many Iranian NFT enthusiasts, who were not actually permanent residents of the country, were also affected.

Artist and NFT community member Parin Heidari expressed her frustration on Twitter. Although Haidari has lived outside Iran for the past 13 years and was even hailed by OpenSea as an “amazing woman you should know,” her Opensea homepage has still been removed from the platform. While Palin received a lot of support from the community that eventually helped her case get vindicated, countless Iranian artists and collectors got no help.

While OpenSea may not have properly communicated the situation, the basic truth is that it was not an option for the company — they must comply with US sanctions or face hefty fines and other repercussions. We reached out to OpenSea for comment but received no response. When requested by ArtNews for further comment, a spokesperson for OpenSea shared the following statement.

“OpenSea prevents users from regions on the U.S. sanctions list from using our services – including the purchase, sale or transfer of NFTs on OpenSea, and our Terms of Service expressly prohibit sanctioned users or users in sanctioned regions from using our services. Sanctioned individuals or entities and those located in sanctioned countries have a zero-tolerance policy on using our services. If we find an individual has violated our sanctions policy, we take prompt action to ban the account in question.”

Isn’t blockchain decentralized?

The crypto world is unpredictable and it’s not blockchain

Blockchain, at its core, is decentralized. The community around blockchain and web3 technology is even built on this idea of ​​a decentralized internet without gatekeepers. However, the vast majority of popular services (OpenSea, Coinbase, MetaMask) that enable these communities to access blockchains and assets on blockchains are highly centralized.

A week after these general bans began, the question now is the need for better, more neutral decentralized services and platforms. When draconian regulations are introduced, it highlights how easily businesses and governments can decide who can and cannot access blockchain-based services. Yes, OpenSea bans users based on their country of origin, which in itself doesn’t feel right, but ultimately, US-based companies must follow US law.

What should we do now?

Those affected by the OpenSea ban have little chance of their accounts and assets being returned. Many have suggested LooksRare and other NFT marketplaces as an alternative, but the problem continues to spread that most of the well-known NFT platforms are based in the United States or other countries that abide by Iran sanctions. However, the few platforms that seem to be working for Iranian NFT enthusiasts at the moment are Rarible and Foundation.

Some have suggested that OpenSea may have the power to reverse these bans, using the argument that art is classified as informational material and therefore not subject to Iran deal and sanctions regulations. However, this assumption is incorrect. In order for an artwork to be considered information or informational material, it must be classified under the U.S. Harmonized Tariff Schedule.

In the Harmonized Tariff Schedule, works of art are generally defined as handmade paintings, sculptures, lithographs, etc., but there is no mention of digital products. Considering U.S. President Joe Biden’s recent confirmation that NFTs are digital assets in the eyes of the government (soon after various bodies such as Wikipedia refused to classify NFTs as works of art), the art exemption claim may not go very far.

Given the sanctions the US has imposed on Iran since 1979, we shouldn’t hold our breath waiting for the country (not to mention its OpenSea users) to be allowed to use US services anytime soon. Likewise, since NFTs and blockchain technology are still widely misunderstood, we cannot expect policies and regulations to help the accessibility of blockchain technology in the near term.

Probably the only innovation that can prevent such bans for users in Iran and other sanctioned countries is the launch of a truly autonomous marketplace or NFT trading Dapp (decentralized application). Until there is a borderless service or platform with absolutely no state ties, access to blockchain can and will continue to be limited.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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