Nonfungible tokens and blockchain-based gaming projects saw a breakout in popularity over the course of 2021. This was due to their widespread appeal which attracted the attention of crypto newbies and experienced hodlers alike. This trend helped to further initiate the mass adoption of blockchain technology and from the look of things, its likely to extend throughout 2022.
One project is making moves in 2022 is Phantasma (SOUL), a layer-one blockchain protocol that specializes in the creation of SmartNFTs and decentralized gaming applications. Its prices reflect that it’s about to make a run for a new all-time high.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $2.30 on Dec. 30, the price of SOUL has climbed 61.73% to a daily high at $3.72 on Jan. 3 as its 24-hour trading volume increased from an average of $3 million to $12 million.
Three reasons for the surging price of SOUL are the launch of several new protocols on the Phantasma network, the addition of cross-chain support for multiple networks, and the overall increase in popularity of NFTs and blockchain-based gaming.
New projects launch on Phantasma
One of the biggest developments to come out of the Phantasma ecosystem over the past couple of weeks has been the launch of several projects on the network. This includes the role-playing card game Blood Rune, the mobile game Ghost Festival and the NFT marketplace GhostMarkets.
The GhostMarket NFT marketplace is currently conducting its initial decentralized exchange offering (IDO) on Flamingo Finance and will have its GM token available to operate on the six different networks that GhostMarket supports, but including Ethereum (ETH), Binance Smart Chain (BSC), Phantasma, Avalanche, Polygon and NEO N3.
One of the main draws of using Phantasma over other chains is its dual token system where SOUL token holders can stake their tokens to earn Phantasma Energy (KCAL). These in turn can be used to pay for transaction fees. This essentially makes transactions free for SOUL holders.
Phantasma is also certified as a carbon-negative blockchain which has helped attract positive attention. This sets it apart from other networks like Ethereum, which notoriously has a higher carbon footprint since it utilizes mining.
A second reason for the building strength of Phantasma has been the addition of cross-chain interoperability with multiple blockchain networks including Ethereum, BSC and NEO.
On the 5th day of Christmas #Phantasma gives to you a Layer 1 smart contract ecosystem, quad-chain interoperable with $ETH, #BSC and $NEO for fungible tokens and soon for Non-Fungible Tokens(#NFTs)$SOUL $BNB #smartNFTs #blockchaingaming #GameFi pic.twitter.com/vcpXmqO66r
— Phantasma (@PhantasmaChain) December 29, 2021
On top of the addition of interoperability with other networks, the Phantasma chain itself is capable of reaching high levels of throughput. This is due to the ability to host infinite sidechains while the network as a whole benefit from having native oracles built directly into the core of its design.
With interoperability looking to be one of the major themes in the cryptocurrency ecosystem for 2022, projects that have already started making it a focus of development are likely to outperform the competition that doesn’t. This will incentivize crypto users to become increasingly comfortable with transacting across multiple networks.
NFT and gaming popularity
The third reason for the building strength of Phantasma is the overall popularity of gaming and NFT projects as blockchain adoption is on the rise.
According to data from Google Trends, interest in NFTs has been rising since early 2021 and hit a peak in the middle of December as Phantasma was introducing new projects and touting its low-cost capabilities.
On top of the generalized rise in interest in NFTs, popular blockchain-based games like Axie Infinity have led to the emergence of play-to-earn games across the crypto ecosystem. The high throughput, low-cost capabilities of Phantasma make it an attractive option for gamers looking to maximize their earnings while minimizing transaction costs.
With the interest in gaming and NFTs showing no signs of disappearing in the near future, projects that focus on facilitating their growth and adoption could continue to see their values rise as NFTs become more mainstream.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Wait, what? Former Bitcoin bull Raoul Pal only owns one Bitcoin?
Former Goldman Sachs hedge fund manager and cryptocurrency bull Raoul Pal claimed in a tweet that he now only owns a single Bitcoin.
As the claim was made in the heat of a Twitter fight with self-proclaimed “Bitcoin Strategist” Greg Foss it’s not entirely clear whether it’s an exaggeration or an accurate statement about his holdings. Pal is the founder and CEO of Real Vision and Global Macro while Foss is an executive director at Validus Power Corp.
The revelation of his apparently small holding certainly caused uproar and angst among Bitcoin true believers, who’ve looked at Pal askance ever since he started calling Ethereum “the greatest trade” and predicted that ETH and altcoins will eventually outperform BTC.
Fascinating to see that since inception ETH has outperformed BTC by 250%. It only fell below its initial price in BTC for the first 5 months of its existence in 2015.
Let that put rest to the idea that all other tokens trend towards zero in BTC terms. pic.twitter.com/ulCpsjG8up
— Raoul Pal (@RaoulGMI) April 7, 2021
Pal first purchased BTC in Nov 2013. He sold for a 10X profit in the so-called “fork-wars” of 2017 (missing out on an even bigger gain later that year) before adding to his collection in 2019 through 2020. In May 2021, he confirmed that he owned more ETH than BTC. At time of writing, Bitcoin (BTC) is worth $40,925.
The barney was instigated by Foss, who tweeted “Raoul is soft” followed by another intellectual tweet, “Raoul sucks and blows” shortly after. After some back and forth between Pal and the Bitcoin maxi, Pal posted that people like Foss and the Bitcoin community’s exclusionary ideology are why he only holds one Bitcoin.
And that is your issue. I don’t share your philosophy, so you attack me? Really? This is why I hold only one bitcoin, the community has lost sight of inclusion and you sir, are helping reduce the network effects by excluding people who dont share your view from the network.
— Raoul Pal (@RaoulGMI) January 20, 2022
This upset the Bitcoiner community, many who claimed he had let emotion cloud logic. “His feelings are hurting his future,” commented one user Emanuel in a reply to Bitcoin Meme Hub tweet. “I knew when he started to sip Vitalik’s coolaid he was a goner,” added another user, Jalan Foster.
The founder of Synaptic Ventures Marc van der Chijs complained that the fact Pal only owns one BTC based on the makeup of the community and not on the potential return “goes totally against the gospel he preaches on RealVision.”
However, some defended Pal, pointing to his impressive track record and reminding followers that he is in fact a trader, not a holder. Crypto analyst and founder of Crypto My Way “Coach T” wrote that he appreciates Pal’s “diverse views and intelligent thinking.”
Foss vs. Pal: a Twitter feud
It appears that the argument was in response to a disagreement on Pal’s stance on inflation and bonds as a trading vehicle. Foss explained that he didn’t support Pal promoting his trading strategy to others who don’t entirely understand how it works.
Pal disagreed, explaining that his views on bonds are “a trade, not a philosophy.” Despite this, in a following comment on the thread, Pal claimed that he doesn’t own any bonds.
Ok, lets do math. If Im right and bonds can rally 20% in 12 months (just use TLT) that is faster than the balance sheet expansion, thus its a net win to your purchasing power. If you hold bonds to maturity you lose. Issue?
— Raoul Pal (@RaoulGMI) January 20, 2022
Three hours after posting the original tweet attacking Pal, the argument eventually culminated in Foss tweeting an apology saying that he “regrets his actions,” adding that he “made a rookie error” and that he has “bigger battles to fight.”
Just weeks ago, Pal said that he believes there is a “reasonable chance” that the crypto market capitalization will increase 100 times by the end of this decade. Hoping he’s right about that is perhaps something on which we can all agree.
Cointelegraph reached out to Raoul Pal via Real Vision and will update the story with any response.
Multichain hacker returns 322 ETH, keeps hefty finders fee
Owing to a security vulnerability in six tokens, Multichain users lost more than $3M over the week. A white hat hacker returned 322 ETH, but in excess of 527 ETH is still exploited.
2084 Total views
18 Total shares
In a dramatic twist, one of this week’s Multichain hackers has returned 322 ETH ($974,000 at the time of writing) to the cross-chain router protocol and one of the affected users.
However the hacker kept 62 ETH ($187,000) as a “bug bounty”, and a total of 528 ETH (worth $1.6M) remains outstanding after the exploits.
Earlier this week, news emerged of a security vulnerability with Multichain relating to the tokens WETH, PERI, OMT, WBNB, MATIC, and AVAX, and $1.43 million was stolen. Multichain announced on Jan. 17 the critical vulnerability had been “reported and fixed.”
However, publicity about the vulnerability reportedly encouraged a number of different attackers to swoop in, and more than $3 million in funds were stolen. The critical vulnerability in the six tokens still exists, but Multichain has drained around $44.5m of funds from multiple chain bridges to protect them.
Yeah, bridge contract need pause function. https://t.co/lPjLsE5EtR
— Zhaojun (@zhaojun_sh) January 20, 2022
One of the hackers, calling himself a “white hat” has been in communication with both Multichain and a user who lost $960,000 in the past day or so, to negotiate returning 80% of the money in return for a hefty finders fee.
According to a Jan. 20 tweet from ZenGo wallet co-founder Tal Be’ery, the hacker claimed they hadbeen “saving the rest” of the Multichain users who were being targeted by bots, in an act of defensive hacking.
The funds were returned across four transactions. On Jan. 20 the hacker returned 269 ETH ($813,000) in two transactions directly to the user he stole it from and kept a bug bounty of 50 ETH ($150,000).
The relieved user responded to the hacker:
“Well received, thank you for your honesty.”
Overnight, the hacker also returned 50 ETH ($150,000) across two transactions to the official Multichain address, and kept a bug bounty of 12 ETH ($36,000).
Multichain (formerly Anyswap) aims to be the “ultimate router for Web3.” The platform supports 30 chains at the moment, including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Litecoin (LTC), Terra (LUNA), and Fantom (FTM).
In a tweet on Jan. 20, the Co-Founder and CEO of Multichain Zhaojun conceded that Multichain bridge contracts need a pause function to deal with similar incidents in future..
Cointelegraph has contacted the project for comment.
Australia’s plan to create a crypto competitive edge in 12 steps
In October 2021, the Senate Committee for Australia as a Technology and Financial Centre released its much-awaited recommendations for how cryptocurrency should be regulated. The 168-page final report boils down to 12 recommendations aimed at striking the right balance between creating legitimacy without stifling innovation.
This is a landmark report that demonstrates Australia’s clear efforts to put itself at the forefront of crypto investment globally. The chair of the committee, Senator Andrew Bragg, believes that “Australia can be a leader in digital assets” and is confident that it can particularly “be competitive with Singapore, the UK and the US.”
Four key recommendations
First, the introduction of a range of new crypto-specific licenses and regulations. For too long, regulators around the world have been trying to put square pegs (cryptocurrency) into round holes (traditional financial regulation). This approach underestimates the fundamental differences that exist as well as the potential that digital assets have to transform the world. This report acknowledges crypto’s potential and calls for a range of bespoke cryptocurrency licenses in Australia. It recommends a specific market licensing regime for digital exchanges as well as a bespoke custody regime for digital assets. Details will still need to be fleshed out but if we get these frameworks right, then this will create the legitimacy that the sector needs to take off into the mainstream.
Second, the introduction of a decentralized autonomous organization (DAO) entity type into Australian corporate law. This recommendation is a very big deal, as it shows that the Australian government is open to decentralized finance (DeFi) as well as crypto innovation. Wyoming is the only region I have heard of that has something like this in place, so this could put Australia on the front foot. If approved, DAOs could provide a unique utility that may bring the Australian economy a decade ahead into a decentralized future. However, this will also be the hardest thing for the Committee to get approved, as changes to the Corporations Act are infamously rare in Australia. If anyone can do it, it’s Senator Bragg though.
Third, improved tax rules for crypto-to-crypto transactions. Recent Finder research shows that over 17% of Australians own cryptocurrency — the third-highest rate of adoption in the world. However, this growing group has had to grapple with tax rules that are confusing at best. Historically, crypto-to-crypto transfers have been considered a capital gain by the Australian Tax Office. The new recommendation calls for tax only when there has been “a clearly definable capital gain or loss.” Again, the devil will be in the detail on this one but active Australian crypto users could be the real winners.
Fourth, new tax incentives to encourage green crypto mining. The Committee recommends a 10% company tax discount for crypto mining businesses that use renewable energy. This looks like a smart move to support two high-growth Australian industries: renewable energy and cryptocurrency. This will be especially important as the Committee tries to get these recommendations signed off against a backdrop of COP26 and rising concerns about climate change.
Three tough issues
- Timelines for turning recommendations into law. Right now, these are all just recommendations, and are worth as much as the political will that exists to enact them. As with other countries, politics in Australia moves slowly and this will be no different. Senator Andrew Bragg is bullish that he can get all the recommendations passed in 12 months and I back him to get it done. His cause could also be supported by a growing view that crypto innovation could be a vote-winner with young Australians in a looming federal election, as nearly a third of Generation Z already own cryptocurrency.
- Implications for crypto businesses during the pre-reform period. If it takes a year to introduce new laws then there are still questions about what crypto businesses can do in the meantime. Many submissions called for a “safe harbor” against regulation until rules had been finalized but this was not explicitly recommended by the Committee. However, the direction of travel has been set and there is clear support for crypto innovation and an acknowledgment that new rules and licenses are needed. I would be surprised if we saw much in the way of regulatory action until then.
- Specifics for the licensing and tax proposals. Many of these recommendations were light on detail and it looks like the Australian Treasury will now lead on these matters. The industry will be very interested to know what the requirements for being a custodian or digital exchange will be, particularly when it comes to capital requirements. If there’s too much regulatory burden, then businesses will move offshore. Likewise, consumers will need more clarity on what a “clearly definable capital gain or loss” is for tax purposes. In many ways, the work starts now.
Learnings for governments around the world
The crypto industry is ready to talk policy. It’s fair to say that this Select Committee was inundated with engagement from crypto businesses, academics, peak bodies and regulators. More than 100 written submissions contributed and there were three full days of public hearings. It’s not often that an industry is asking for more regulation but that is what is happening here. The crypto industry around the world wants clarity and is ready to have a conversation about policy.
Broad reviews are more effective than siloed approaches. One key reason that this consultation had so much engagement was that it looked at the digital asset industry holistically rather than from one angle only. A problem we’re seeing around the world is regulators interested in looking at crypto assets from their specific regulatory view, but broad innovation shouldn’t be assessed through such a narrow lens. This consultation managed to look at the industry holistically while still getting into the specific issues. I welcome more reviews like it around the world.
Bespoke digital asset policy approaches will be needed. Digital assets have hit critical velocity and the revolution can no longer be ignored. Piecemeal changes to legacy financial services policy will not work. We need policymakers around the world to work together to create bespoke policies that are fit-for-purpose. Coinbase captures this well in pillar one of its Digital Asset Policy Proposal (DAPP). The DAPP calls for “a new framework for how we regulate digital assets” that “will ensure that innovation can occur in ways that are not hampered by the difficulty of transitioning from our legacy market structure.” These recommendations in Australia are an attempt at doing exactly that which many can learn from.
What is clear is that the world is changing. This Senate Committee in Australia should be applauded for taking a holistic approach and recommending bespoke policy instruments. It’s time for policymakers around the world to follow suit and take a broad look at their approach to digital assets.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Fred Schebesta is an Australian-born entrepreneur and early-stage investor, founder of global fintech Finder, now worth over half a billion dollars. Fred recently launched blockchain investment fund Hive Empire Capital and co-founded Balthazar, a DAO platform for NFT gaming. With 22 years of experience in building businesses, Fred just released a Number One Amazon Best Selling book, Go Live! 10 Principles to Launch a Global Empire.
Canadian bitcoin exchange and transfer service Shakepay raises $44M in Series A
UnionBank of the Philippines to utilize METACO and IBM for its crypto custody operations
Crypto staking protocol pSTAKE raises $10M in public token sale on CoinList
Crypto exchange ecosystem ShapeShift launches new version of its web platform
Wait, what? Former Bitcoin bull Raoul Pal only owns one Bitcoin?
‘Continue to ebb and flow over time’: Denny’s chief brand officer on how consumers’ moods inform brand messaging
Bitcoin hits $45K ahead of July inflation report, but one fractal hints at looming correction
Smart Marketing Token (SMT) Is on a Mission to Help Blockchain Projects Reach Their Goals
Identity management org Sailpoint unveils no-code tool
Japan crypto exchange bitbank upgrades performance of its matching engine by 4x
Tech3 months ago
Report: 65% of brands say commerce content is a vital component of marketing
Tech3 months ago
Nvidia’s GeForce Now for Edge means you can play your Steam games on Xbox
Tech3 months ago
Facebook leak shows inner turmoil over approach to conservative content
Tech3 months ago
Why Gigi Levy Weiss is eying NFT gaming with his $450M NFX fund
Ethereum3 months ago
This CryptoPunk NFT just sold for $530 million. Kind of
Bit Coin3 months ago
Bitcoin Sells for a Bargain in German Auction
Tech3 months ago
Intel CTO Greg Lavender interview — Why chip maker is spending on both manufacturing and software
Bit Coin3 months ago
Education Ecosystem Is Set to Become the Biggest Crypto Channel for Developers on YouTube