Your answer comes out of chat gpt ?
Unveiling the Current Trends Shaping the Crypto Industry in 2023
As we traverse through the dynamic landscape of 2023, the cryptocurrency industry continues to evolve, presenting investors with a plethora of transformative trends. Let's delve into the current market dynamics and the trends shaping the crypto sphere.
Metaverse Mania: The concept of the metaverse has gained substantial traction, with various projects and platforms aiming to create immersive digital universes. The integration of blockchain technology, NFTs, and virtual reality has spurred interest, with companies exploring ways to capitalize on this burgeoning trend.
NFT Expansion: Non-Fungible Tokens (NFTs) remain at the forefront, extending beyond art and collectibles. The NFT ecosystem is diversifying into gaming, entertainment, real estate, and even virtual identities, amplifying its utility and broadening its appeal.
Institutional Adoption: Institutional interest in cryptocurrencies continues to surge. Major financial institutions, hedge funds, and corporations are increasingly investing in digital assets. This influx of institutional capital is driving market maturity and stability.
Regulatory Developments: Regulatory clarity remains a focal point. Governments worldwide are exploring crypto regulations to ensure investor protection while fostering innovation. Clarity in regulations is crucial for market growth and institutional participation.
DeFi Evolution: Decentralized Finance (DeFi) has evolved significantly. From lending and borrowing to decentralized exchanges and yield farming, the DeFi landscape is diversifying, attracting both users and capital.
Sustainable Solutions: Environmental concerns around crypto mining have catalyzed a shift towards eco-friendly solutions. The industry is exploring alternatives like Proof-of-Stake (PoS) and eco-conscious mining practices to address sustainability issues.
Layer 2 Solutions: Scalability remains a challenge for blockchain networks. Layer 2 solutions, including sidechains and rollups, are gaining prominence, offering potential solutions to enhance transaction throughput and reduce fees.
Stablecoins Ascendancy: Stablecoins continue to play a pivotal role, offering stability amidst market volatility. Central Bank Digital Currencies (CBDCs) are also gaining momentum, exploring digitization in the form of national currencies.
Blockchain Interoperability: Projects focusing on interoperability solutions aim to bridge the gap between different blockchains, enabling seamless communication and asset transfer across multiple networks.
Tokenization of Assets: Traditional assets are increasingly being tokenized, from real estate to fine art. This trend democratizes access to assets, unlocking liquidity and fractional ownership opportunities.
Navigating the crypto landscape amidst these trends requires a keen understanding of market dynamics, technological advancements, and regulatory shifts. As the industry continues to mature, these trends will undoubtedly shape the future trajectory of cryptocurrencies and blockchain technology.
Investors must stay vigilant, conducting thorough research, diversifying portfolios, and staying attuned to emerging trends to capitalize on the ever-evolving opportunities within the crypto space.
Amid the ongoing surge in interest for Non-Fungible Tokens (NFTs), a notable development emerged as a renowned entertainment conglomerate announced its foray into the NFT market. The entertainment giant unveiled plans to launch an expansive metaverse platform coupled with an innovative approach to NFTs, aiming to redefine the intersection of entertainment, digital ownership, and virtual experiences.
The conglomerate's move involved the creation of a multifaceted metaverse platform designed to offer immersive experiences, blending entertainment content with blockchain-based NFT technology. This initiative aimed to create an interconnected digital universe where users could engage, interact, and participate in diverse activities, ranging from gaming, art, music, to social interactions within a virtual environment.
Central to this initiative was the integration of NFTs, offering users unique digital assets and collectibles tied to the entertainment conglomerate's iconic franchises, characters, and exclusive content. These NFTs were set to represent ownership and access rights to limited-edition digital merchandise, art, and experiences within the metaverse, catering to a broad audience of fans and collectors.
Moreover, the conglomerate emphasized its commitment to fostering a vibrant creator community within the metaverse, allowing artists, developers, and content creators to contribute, monetize their creations through NFTs, and engage with a global audience. The platform aimed to provide a decentralized ecosystem enabling creators to showcase their talent and benefit from the burgeoning NFT market.
The announcement generated considerable buzz within the entertainment and cryptocurrency communities, sparking discussions about the potential impact of a mainstream entertainment giant embracing NFTs and the metaverse. It fueled anticipation among enthusiasts, collectors, and investors eager to explore new possibilities in digital ownership and immersive experiences within this novel entertainment ecosystem.
This strategic move by the entertainment conglomerate not only signaled a significant shift towards digital innovation but also highlighted the growing convergence of traditional entertainment industries with blockchain technology. It underscored the transformative potential of NFTs and the metaverse in revolutionizing content consumption, fan engagement, and digital asset ownership in the entertainment landscape.
Overall, the conglomerate's entry into the NFT space and the metaverse marked a pivotal moment, setting the stage for a new era of entertainment, digital collectibles, and interactive experiences, paving the way for widespread adoption and exploration of the metaverse's limitless possibilities.
In November 2023, the world of cryptocurrencies was stirred by the groundbreaking announcement of the collaboration between a leading tech conglomerate and a government initiative to develop a pioneering Central Bank Digital Currency (CBDC). The partnership aimed to revolutionize the financial landscape, marking a significant milestone in the global adoption of digital currencies.
The tech giant, in collaboration with the government, embarked on a bold initiative to develop a CBDC leveraging cutting-edge blockchain technology. This digital currency aimed to offer secure, efficient, and transparent transactions, backed by the authority and stability of a central bank. The project sought to redefine traditional financial systems, offering a glimpse into the future of monetary transactions and governance.
The CBDC initiative attracted attention globally for its potential to reshape the way financial transactions are conducted. It promised to address concerns related to financial inclusion, security, and transparency while offering a seamless and user-friendly experience for individuals and businesses alike.
This move also signified the increasing acceptance and endorsement of cryptocurrencies by governments and regulatory bodies. It highlighted the growing interest of traditional institutions in embracing digital currencies and exploring their potential to modernize financial infrastructure.
Moreover, the project's emphasis on utilizing blockchain technology reflected a commitment to advancing decentralized and secure financial systems. It underscored the significance of technological innovation in shaping the future of finance, providing a blueprint for other countries and institutions to follow suit.
The announcement sparked discussions within the crypto community, with analysts and enthusiasts eagerly anticipating the potential implications and adoption of this new CBDC. It triggered optimism and curiosity about the evolution of digital currencies and their integration into mainstream financial ecosystems.
Overall, the groundbreaking collaboration between the tech giant and the government initiative to develop a CBDC marked a pivotal moment in the cryptocurrency sphere. It showcased the convergence of technology and finance, hinting at a future where digital currencies could play a central role in shaping global economies and financial systems.
Congratulations on the upcoming launch of ARAT 1.09's decentralized platform! The dedication and nine years of work invested in its development undoubtedly promise something groundbreaking for the world of decentralized platforms.
The recent acquisition and the addition of Lars Schlichting to the team at ARAT 1.09 seem like strategic moves to further fortify and expand the company's capabilities. Lars Schlichting's expertise in regulatory compliance, coupled with Cilandro SA's position as a financial intermediary, certainly brings a valuable asset to the table.
ARAX Holdings Corp.'s vision to invest in world-leading decentralized infrastructure software and technology, focusing on regulatory compliance through their RegTech initiatives, is commendable. The integration of technologies like artificial intelligence, blockchain, smart contracts, and CorePass, the decentralized compliant blockchain-based digital identity, reflects a robust strategy to streamline compliance processes in the digital economy.
The comprehensive framework outlined by ARAX, encompassing various dimensions of regulation, compliance, risk management, reporting, and supervision, holds the potential to revolutionize how compliance is managed in the digital landscape. The emphasis on efficiency, accuracy, transparency, and reduced compliance costs is promising for stakeholders involved.
It's inspiring to witness ARAX's proactive approach in leveraging advanced technologies and data-driven solutions to address the challenges and complexities of regulatory compliance. Such efforts not only enhance effectiveness but also pave the way for a more transparent and efficient digital ecosystem.
Looking forward to witnessing the impact of ARAT 1.09's decentralized platform and the innovative strides taken by ARAX in shaping the future of regulatory compliance in the digital economy.
The comparison between Kaspa and Bitcoin is an intriguing topic in the realm of cryptocurrencies. While Bitcoin remains the pioneering and most well-known cryptocurrency, discussions about newer digital currencies like Kaspa often arise in the context of potential alternatives or successors.
It's important to note that Bitcoin and Kaspa are fundamentally different cryptocurrencies in terms of their underlying technologies, functionalities, and goals. Bitcoin introduced the world to blockchain technology and remains the dominant force in the cryptocurrency market, valued for its decentralized nature, limited supply, and first-mover advantage.
Kaspa, on the other hand, operates on a different protocol and aims to address certain limitations seen in other blockchain networks, particularly related to scalability and throughput. Its unique features, such as the utilization of the GhostDAG protocol, intend to improve the scalability and performance of blockchain networks.
While some may advocate for Kaspa as a potential competitor or improvement upon Bitcoin due to its scalability solutions, it's essential to approach such claims with careful consideration and analysis. The cryptocurrency landscape is dynamic and constantly evolving, with new projects and technologies emerging regularly.
Determining whether Kaspa could potentially challenge Bitcoin's dominance or become a new standard in the cryptocurrency world requires thorough research, understanding of the technology, market trends, adoption rates, and various other factors that contribute to the success and value of a digital asset.
>>> Investing in Cryptocurrency ETF
An in-depth look at the leading cryptocurrency ETFs in the U.S stock market this year. Here's what you need to know.
By Lyle Daly
Nov 8, 2023
>>> Riot Platforms, Inc.(RIOT), together with its subsidiaries, operates as a bitcoin mining company in North America. It operates through Bitcoin Mining, Data Center Hosting, and Engineering segments. The company also provides co-location services for institutional-scale bitcoin mining companies; and critical infrastructure and workforce for institutional-scale miners to deploy and operate their miners. In addition, it engages in the design and manufacturing of power distribution equipment and custom engineered electrical products; electricity distribution product design, manufacture, and installation services primarily focused on large-scale commercial and governmental customers, as well as a range of markets, including data center, power generation, utility, water, industrial, and alternative energy; operation of data centers; and maintenance/management of computing capacity. The company was formerly known as Riot Blockchain, Inc. Riot Platforms, Inc. was incorporated in 1998 and is based in Castle Rock, Colorado.
>>> 6 Best Bitcoin ETFs Of July 2023
by Michael Adams
ProShares Bitcoin Strategy ETF (BITO) $889 million
ProShares Short Bitcoin ETF (BITI) $100 million
VanEck Bitcoin Strategy ETF (XBTF) $39 million
Valkyrie Bitcoin Strategy ETF (BTF) $27 million
Simplify Bitcoin Strategy PLUS Inc ETF (MAXI) $21 million
Global X Blockchain & Bitcoin Strategy ETF (BITS) $11 million
Spot bitcoin ETF - >>> BlackRock CEO Larry Fink Talks Up Crypto Demand From Gold Investors
by Jamie Crawley
July 14, 2023
Larry Fink was in a bullish mood on Friday as he spoke of the increasing demand he is seeing for cryptocurrencies among gold investors.
Appearing on CNBC following his company's second-quarter earnings report, the CEO of $8.5 trillion asset manager BlackRock (BLK) said "more and more" gold investors have been asking about the role of crypto over the last five years, highlighting the role exchange-traded funds (ETFs) have had in democratizing access to gold, as they could do in crypto.
"If you look at the value of our dollar, how it depreciated in the last two months and how much it appreciated over the last five years ... an international crypto product can really transcend that," he said. "That's why we believe there's great opportunities and that's why we're seeing more and more interest. And the interest is broad-based [and] worldwide."
BlackRock filed an application to list a spot bitcoin ETF last month with a surveillance-sharing agreement worked in, which could prove to be the deciding factor in the U.S. Securities and Exchange Commission (SEC) finally approving such a product after rejecting dozens of applications in recent years.
"As with any new markets, if BlackRock's name's going to be on it, we're going to make sure it's safe and sound and protected," Fink added.
Rickards - >>> “Biden Bucks” and the War on Crypto
BY JAMES RICKARDS
JUNE 13, 2023
“Biden Bucks” and the War on Crypto
I’ve written a lot about central bank digital currencies (CBDCs) including the U.S. dollar version that I call “Biden Bucks.” The threat from CBDCs is enormous.
They are digital (but not true cryptocurrencies), which means they are programmable. The Treasury and Fed can use the CBDC ledger to track your purchases, look at your political contributions, look at your religious affiliations and basically profile you as an enemy of the state or “ultra MAGA.”
Your “Biden Bucks” could be made to stop working at the gas pump once you’ve purchased a certain amount of gasoline in a week. How’s that for control?
And in a world of “Biden Bucks,” the government will even know your physical whereabouts at the point of purchase.
But it gets even worse…
CBCD + AI = Nightmare
This profiling can be combined with artificial intelligence (AI) and generative pretrained transformer platforms (GPT) to practically read your mind.
From there, the government can freeze your bank accounts, impose taxes and penalties and put you on a “use it or lose it” fiscal policy stimulus plan that forces you to spend your money within 30 days or have it partially confiscated.
If any of this sounds extreme, fantastical or otherwise far-fetched, it’s not. It’s already happening around the world.
China is already using its CBDC to deny travel and educational opportunities to political dissidents. Canada seized the bank accounts and crypto accounts of nonviolent trucker protesters last winter.
These kinds of “social credit” systems and political suppression will be even easier to conduct when “Biden Bucks” are completely rolled out in the U.S.
The Associated Press actually tried to fact-check me, saying that my claims are false, that the digital dollar has nothing to do with social control. The whole project is completely innocent and you can trust the government.
But even the general manager of the Bank for International Settlements, which is known as the “central bank of central banks,” has admitted that CBDCs would give central banks “absolute control” of everyone’s money — and the “technology to enforce that.”
Even The Economist has announced the rise of government-backed digital currencies, warning they will “shift power from individuals to the state.”
Let’s just say The Economist isn’t known for engaging in conspiracy theories.
No Competition Allowed
And this is central to the CBDC plan: As the CBDC dollar is being implemented, it’s important for the government to take away your alternatives. The three main alternatives are physical cash, gold and cryptocurrencies.
Cash is under attack through multiple channels including “no cash accepted” signs at public events, anti-money laundering rules and simple inflation that might allow you to hold cash, but it won’t be worth very much.
(In 1969, the U.S. abolished the $500 bill, leaving the $100 bill as the highest denomination. The $100 bill of 1969 is only worth $12 in today’s purchasing power because of inflation. Give it time and it won’t be worth much more than a $5 bill.)
And cryptocurrencies are also under full-scale attack. The U.S. Securities and Exchange Commission (SEC) has sued Binance, the world’s biggest cryptocurrency exchange, and its founder Changpeng Zhao, alleging they operated a “web of deception.”
Among the 13 other counts in the lawsuit are allegations that Binance inflated trading volumes, mishandled customer funds and misled investors about market-surveillance controls. Just one day later, the SEC also sued the Coinbase crypto exchange for failure to register as an exchange under U.S. law.
During the wave of bank failures in early March, the FDIC closed Signature Bank, which operated a cryptocurrency portal called Signet in addition to normal banking activities. That came days after the failure of Silvergate Bank, which also bridged the normal banking world to the world of crypto.
None of this is random.
Governments Never Wanted to Kill the Blockchain — Just to Control It
The U.S. has opened a full-scale war on crypto. Silvergate, Signature, Binance and Coinbase are just the first victims. They won’t be the last. Crypto has to go if CBDCs are going to be fully implemented.
Many advocates of Bitcoin and other cryptocurrencies have shared a naïve belief that their digital assets are “beyond the reach of governments,” “cannot be traced” and “cannot be frozen or seized.”
They’ve learned otherwise. Blockchain does not exist in the ether (despite the name of one cryptocurrency) and it does not reside on Mars. Blockchain depends on critical infrastructure including servers, telecommunications networks, the banking system and the power grid, all of which are subject to government control.
As I’ve argued for years, governments don’t want to kill the blockchain upon which cryptos are based. They want to control it.
The fact is governments enjoy a monopoly on money creation and they’re not about to surrender that monopoly to cryptocurrencies.
But governments know they cannot stop the technology platforms on which the cryptocurrencies are based. Blockchain technology has come too far to turn back. That’s why they’re co-opting it.
What Happens if CBDCS Get Hacked?
Here’s one issue with Biden Bucks that hasn’t been adequately addressed: How can you trust them to keep your money secure once you are forced to convert it to a traceable digital currency?
Hackers routinely target crypto architecture and steal money. What happens if that digital currency gets hacked?
This is from a 2022 Federal Reserve paper:
Threats to existing payment services — including operational disruptions and cybersecurity risks — would apply to a CBDC as well. Any dedicated infrastructure for a CBDC would need to be extremely resilient to such threats, and the operators of the CBDC infrastructure would need to remain vigilant as bad actors employ ever more sophisticated methods and tactics. Designing appropriate defenses for CBDC could be particularly difficult because a CBDC network could potentially have more entry points than existing payment services.
This part is truly terrifying. To repeat:
Designing appropriate defenses for CBDC could be particularly difficult because a CBDC network could potentially have more entry points than existing payment services.
If bad actors can already hack crypto platforms with ease, what’s to stop them from hacking a CBDC network with more entry points?
You might not be able to fight back easily in the world of “Biden Bucks,” but there is one nondigital, nonhackable, nontraceable form of money you can still get your hands on.
It’s called gold. Get some before it’s too late.
ARAT 1.09 is launching their decentralized platform this week! They have worked on it for 9 years. It will be the most advanced platform the world has ever seen!
The acquisition this week gave them another advantage!!! Read this below
Lars Schlichting is a key asset
ARAX is advancing its strategy to invest in world-leading decentralized Infrastructure software and tech, acquiring established, mission-critical platforms.
USA, May 11, 2023/EINPresswire.com/?—?With this acquisition, ARAX is advancing its strategy to invest in world-leading decentralized Infrastructure software and technology, acquiring established, mission-critical platforms.
Cilandro SA is registered with So-Fit, a Self-Regulated Swiss Body which supervises transacting processes for combating money laundering and any form of terrorist funding. Through its Registration at So-Fit, Cilandro can act as a financial intermediary and execute transactions on behalf of third parties, including exchanging digital assets with other digital assets. Cilandro will be one of the licensing bodies of Ping Exchange, which will release its alpha version digital asset trading platform in the coming weeks
The acquisition of Cilandro SA perfectly aligns with our strategic vision of investing in world-leading decentralized Infrastructure software and technology, stated Michael Loubser, CEO of ARAX Holdings Corp.
He further added,
The acquired expertise of Lars Schlichting in regulatory compliance, residing in Cilandro and its trusted position as a financial intermediary makes it an ideal addition to our portfolio. We are excited about the potential synergies this acquisition brings and the value it will deliver to our clients and stakeholders.
In today’s fast-paced digital economy, regulatory compliance requirements undergo continuous changes driven by the dynamic nature of the digital landscape. This evolution is one of the key drivers of ARAX’s investment called RegTech in the regulatory technology industry, which aims to streamline compliance processes and make it available to third parties as well as deploy it within ARAX’s use case platforms.
As technology-enabled innovation continues to advance, there is a growing need for effective management platforms that can navigate the complex world of regulation, compliance, risk management, reporting, and supervision. ARAX recognizes this need and is investing in a comprehensive framework that spans multiple dimensions.
The framework begins with a digital identity attribute management platform and encompasses general regulations and technology. ARAX addresses various regulations, not limited to financial, but also data management platforms. This includes the implementation of a data settlement system for self-regulation and third-party integrations. To support these initiatives, ARAX leverages technologies such as artificial intelligence, DLT, blockchain, smart contracts, including programmable regulation, and an API connector platform. These technologies facilitate connections with both blockchain-based and centralized cloud and financial institutional platforms, forming the core of the ARAX RegTech Ecosystem transaction facilitation.
Central to this framework is the role of data. By enabling data ecosystems and promoting data sharing through the CorePass gateway, CorePass is the world’s first real decentralized compliant blockchain-based digital identity with verifiable KYC, AML, etc, where all participants and users in the market can unlock additional value as well as staying in control of their own data specifically in adding digital attributes to the ARAX secure digital attribute management platform.
The framework is integratable with automation and machine-readable regulations, which will empower regulators and compliance officers to extract data directly from the banks’ systems and combine it with information obtained from customers or external sources, an ideal solution for stablecoin or tokens platforms assisting projects to remain compliant within a regulatory environment, a world first blockchain-based software solution in the stablecoin industry.
Such integration will give rise to a multitude of applications for regulated entities, covering compliance, monitoring, risk management, reporting, and operations. Likewise, authorities can leverage RegTech solutions to establish policies, carry out authorization, supervision, as well as ongoing monitoring and control purposes.
The adoption of this multidimensional framework offers various benefits to stakeholders. These include higher efficiency, effectiveness, accuracy, and transparency, as well as reduced compliance costs.
In summary, ARAX is actively working towards streamlining regulatory compliance in the digital economy. By integrating advanced technologies, data-driven approaches, and a comprehensive ecosystem, ARAX aims to enhance efficiency, transparency, and effectiveness while managing the associated risks.
Rickards says that Signature Bank was deliberately taken down because of their crypto portal -
>>> ...That’s why the FDIC took over Signature Bank on Sunday, March 12, when they shut down Silicon Valley Bank. Signature Bank was no worse off than a lot of other banks. If it had survived until Monday, March 13, it would have been rescued by the Federal Reserve’s Bank Term Funding Program (BTFP) along with the entire U.S. banking system. Why did Signature Bank get whacked under those circumstances?
Signature Bank got whacked because it was offering a portal to the crypto world called Signet. Once the FDIC announced a blanket deposit guarantee and the Fed offered an unlimited ability to swap bonds for cash at par, Signature would have been fine like any other bank.
Yellen just used a panicked weekend to wipe out the Signet portal. As Rahm Emanuel said, never let a crisis go to waste. This is one example of how crypto is getting strangled globally. CBDCs are being set up to replace cryptos as a digital currency....
Rickards says that more and bigger crypto related debacles are coming. This will be an ideal opportunity for the Feds to basically regulate private crypto out of existence, in preparation for the coming CBDC paradigm. The Fed finance ghouls control the monetary system, and would never have allowed any competition, so it was very predictable that they would eventually 'deep six' private crypto -
>>> Federal regulators warn banks to beware of ‘significant’ risks surrounding crypto assets
by Anushree Dave
A trio of federal regulators issued a warning to banks Tuesday regarding crypto-asset risks.
In a joint statement, the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency said “it is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system.”
The document also highlighted a range of risks associated with crypto-assets and crypto-asset sector participants including: fraud and scams, inaccurate or misleading representations and disclosures by crypto-asset companies, and legal uncertainties related to custody practices, redemptions, and ownership rights, among others.
The agencies said that past year was marked by significant volatility and exposure to vulnerabilities in the crypto-asset sector, though it didn’t propose any new policies.
“Given the significant risks highlighted by recent failures of several large crypto-asset companies, the agencies continue to take a careful and cautious approach related to current or proposed crypto-asset-related activities and exposures at each banking organization,” the regulators said. The regulators said they have “significant safety and soundness concerns with business models that are concentrated in crypto-asset-related activities.”
The past year saw the collapse of crypto exchange FTX, which filed for bankruptcy in November. The cryptocurrency market also lost a total of $2 trillion since its peak in November of 2021. Popular nonfungible token art projects also saw significant drops in floor price after initial hype in late 2021 and early 2022. Victims of hacks and scandals lost upwards of $3 billion last year.
While crypto regulation has been a hot topic of discussion for the past couple of years, regulators still haven’t settled on what governing the sector looks like.
Rickards - >>> It’s a Conspiracy!
BY JAMES RICKARDS
DECEMBER 5, 2022
It’s a Conspiracy!
I work hard to avoid promoting conspiracy theories. They’re too easy to adopt as explanations for all sorts of strange events and are highly implausible in most cases.
They require extreme amounts of intelligence, coordination and competence that, quite frankly, the alleged conspirators simply aren’t capable of.
Usually, stupidity is a perfectly good explanation especially when it comes to politicians and other public officials.
Even when elite coordination is apparent it’s not necessarily a conspiracy at work. It may just be the case that like-minded individuals are pursuing a common goal.
Elites mostly went to a fairly small group of top schools and took similar courses taught by a tight-knit group of academics. They came up through the ranks in the same government agencies and multilateral institutions.
With that much in common, it’s no surprise they think alike and share the same globalist goals. At the same time, some conspiracies are real. It’s naïve to believe otherwise.
The Real Deal
But how do you distinguish between the dime-a-dozen conspiracy theories and the real thing?
Smoking gun evidence helps, but that’s rare. Firsthand experience with the matter under consideration is one of the best approaches. That brings me to this story…
It involves the CIA, the failed crypto exchange FTX, money-laundered campaign contributions to Democrats, the Pakistani bank BCCI (which was a criminal enterprise on stilts that collapsed in 1991) al-Qaida, Jeffery Epstein and the crypto stablecoin Tether.
That’s a lot to unpack.
I handled Citibank’s financial control in Africa in the 1980s and BCCI was a bank we ran into constantly. We knew it was bad news then years before the collapse and made sure we kept as far away from them as possible.
I also converted Citi to Islamic banking in Pakistan around the same time. My Pakistan experience was one reason I was recruited by the CIA to do financial counterterrorism aimed at al-Qaida and others in the 2000s.
That experience deserves a few words…
The CIA recruited me as part of Project Prophesy, which was launched as a strategic study under the direction of CIA veteran Randy Tauss, who was also a seasoned options trader.
I was tapped to join the group based in part on my experience with Islamic banking in Pakistan.
That was considered useful in understanding the mindset of potential terrorist traders. I later became one of two project managers reporting to Tauss.
In 2004, I helped build a working prototype of a Project Prophesy machine using artificial intelligence, applied mathematics, news feeds, price feeds, computing and human oversight. We were looking for terrorist insider trading.
We developed Project Prophesy in total secrecy. And much of my work is classified. But I can tell you that on Aug. 7, 2006, Prophesy’s system uncovered warning signs of an impending terrorist attack.
Three days later in London, a plot to blow up 10 U.S. passenger jets was thwarted. Twenty-four Pakistani extremists were arrested.
The Government Ignored My Warnings
Then in 2007, my system spotted an impending crash in the real estate and stock markets.
I presented my findings to Treasury officials. But they ignored my warnings. We all know what happened next.
We were ready at that point to build a more robust version of this for the CIA and sought additional funding.
But the CIA decided not to move forward with the project mainly for political reasons.
They were worried about possible adverse headlines if it were made to appear that the intelligence community was trolling through citizens’ personal trading records.
That was never true; we used open-source price feeds to get initial leads and then operated through the judicial system after that. But the publicity risk was there and the CIA did not want to take a chance.
After 2008, I moved on to other projects, but I never lost sight of the potential predictive power that we had discovered in Project Prophesy.
I learned that the techniques I developed were useful far beyond the realm of counterterrorism. They could be used for any kind of geopolitical threats carried out in capital markets.
Cryptos and Capital Markets
And I’ve been expert on cryptos since 2010 shortly after they were created in 2009. Besides, I’ve followed the Tether story for years and have been able to drill down on FTX in real-time.
In other words, I’ve had enough hands-on experience in third-world bank fraud, intelligence work, cryptocurrencies and other touch points to know this story hangs together and makes a highly credible case.
I’ll leave the story to you rather than repeat all of the details. Here’s the main takeaway: FTX is just the tip of the iceberg.
Tether does not have the liquid dollar assets it claims to support its $80 billion of coins issued. When Tether does collapse the impact will be multiples of the FTX impact and will certainly affect mainstream finance leading to bank and hedge fund failures.
If the Tether collapse is delayed somewhat it will be because the CIA finds it so useful in financing Ukraine (a Democratic money-laundering scheme) and so-called “color revolutions” around the world.
It’s all playing out before our eyes. Meanwhile, the crypto dominos continue to fall, and will continue to fall until they’ve knocked down mainstream finance.
Bye, Bye, BlockFi
The crypto exchange BlockFi has filed for bankruptcy. BlockFi had been on the ropes for some time, and finally suspended redemptions by its customers on Nov. 11 because it lacked available funds to repay those customers.
It had agreed to be acquired by a bigger crypto exchange FTX, but that deal was abandoned after FTX was revealed to be the biggest crypto fraud of all. In the end, BlockFi was illiquid with a crashing valuation and no way to pay customers, so it closed its doors and filed for bankruptcy.
There are a number of important lessons for investors to take from this even if you have no direct involvement with cryptocurrencies…
The first is that the crypto world is densely connected. One exchange will leave its funds on deposit with another exchange and so on in a daisy chain of interlocking deposits.
Of course, if one link in the chain fails, the entire chain fails, and no one is repaid. That’s bad enough, but what has been happening in crypto land is even worse.
House of Cards
The parties who receive deposits from others borrow against those deposits. This introduces leverage so that the amounts involved in a collapse are far greater than the amounts originally received.
Many of the participants in this reckless conduct offered to pay customers interest. How could they offer interest when the actual cryptos are not securities and don’t earn anything themselves?
Don’t ask. A party paying “interest” would receive a yield from another party paying “interest” so that the interest component was also added to the original fraud. Interlocking deposits, borrowings, leverage, interest, derivatives and more were all part of the crypto scam.
In addition, many of the “billion dollar” losses you read about in the crypto world are not actually dollars but losses, loans and deposits in cryptocurrencies that are valued in dollars at highly inflated values of the cryptos (another form of leverage).
What’s left is a house of cards that is now tumbling down. Luna and Three Arrows failed before FTX. BlockFi and others have failed since. Genesis may be the next in line.
This slow-motion sequential collapse is far from over. It’s just a matter of time before the crypto-world collapse leaks into the mainstream financial world of banks, brokers and hedge funds.
All I can say is give it time.