News
Crypto NFT Today: Week 4 of May
Welcome to another edition of Crypto-NFT today! The last two weeks have been full of unmissable events that will set the tone for the future of blockchain, cryptocurrency, and NFTs.
With great support for the bitcoin market this week, Gemini returning over $2 billion in cryptocurrencies, and more, there is a lot of essential news you should know. So, let’s dive in and see what’s going on!
Great support for the Bitcoin market
The Bitcoin market found support again on May 30, with the $67,000 level remaining an area of significant interest. This level, previously a resistance point, now offers strong support, marking the bottom of a broader consolidation zone that extends up to $73,000.
Gemini returns over $2 billion in cryptocurrencies
Bankrupt cryptocurrency lender Genesis and cryptocurrency exchange Gemini have returned over $2 billion in cryptocurrencies to 232,000 retail customers in their jointly run Gemini Earn program, providing a 242% return on assets since January 2023. Gemini announces on May 29th.
TrendJustin Wren, an unlikely champion
Unlike others crypto companies which went bankrupt after the 2022 market crash, Genesis managed to return customers’ cryptocurrencies instead of liquidating assets and paying back in cash.
Customers who lent a Bitcoin to Genesis will receive a Bitcoin back, benefiting from the dramatic increase in the coin’s price since the company went bankrupt. The price of Bitcoin has more than tripled since January 2023, reaching over $67,000.
Reports show that NFTs are susceptible to fraud
The US Treasury published its first risk assessment report on May 29, examining vulnerabilities associated with non-fungible tokens (NFTs). The report highlights that NFTs are “highly susceptible to being used in frauds and scams,” mostly involving traditional schemes.
The findings highlighted several potential risks, security issues and challenges related to NFTs. According to the 29-page report, criminals use these digital collectibles “to launder the proceeds of predicate crimes.”
New developments with the bankruptcy of FTX
When FTX has filed for bankruptcyexperienced cryptocurrency traders have seen a profitable opportunity. The bankruptcy team, mostly inexperienced in cryptocurrencies, initially faced embarrassing losses of tens of thousands of dollars while trying to consolidate the funds.
In September 2023, the firm hired the asset management arm of billionaire Michael Novogratz’s Galaxy Digital Holdings to manage its vast crypto assets. This involved selling, hedging, and staking digital tokens, allowing token holders to earn passive income by helping validate transactions on a blockchain network.