From Australia taxing almost everything in DeFi to Delaware DoJ investigating the fake XRP ETF filing, here is a 2-minute breakdown of everything important that happened in crypto today.
Hey, Spotlight readers! CoinMarketCap is back again to catch you up on the latest headlines making waves across the blockchain universe.
First, a quick rundown of the top stories we’re gonna cover:
- Tornado Cash users appeal sanctions ⚖️
- Australian tax authority targets DeFi gains with expanded rules 🫠
- Disney enters the NFT space with a collectible character platform 🔔
- Major investment in Hong Kong exchange 💱
- Fake BlackRock filing briefly pumps XRP price 📈
- NFT rug pull scheme leads to first criminal charges 🚔
Let’s dive in!
Tornado Tug-of-War ⚖️
A group of Tornado Cash users is appealing the government's decision to ban coin mixers. They argue the Treasury overstepped its authority by blocking a decentralized smart contract. But Uncle Sam won't let go of this privacy clash easily.
Appeals take ages though. For now, crypto anonymity hangs in limbo as both sides lawyer up for a long battle.
What case did the Treasury make? Read the full story!
Taxman Cometh for DeFi 🫠
The Australian tax authority is laying down the law for crypto profits. Just about every DeFi and token activity can trigger capital gains taxes now. Wrapping, unwrapping, swapping - nothing escapes the taxman's eye.
While it provides clarity, the aggressive rules could hinder local crypto innovation. With a laid-back lifestyle, Australia was a natural fit for crypto to thrive. But the tax crackdown casts a cloud over future growth.
As worldwide adoption spreads, other countries may soon face similar tax headaches. Of course, governments want their cut of surging crypto gains. But harsh regulations risk killing the golden goose. More information on what else will become a taxable income!
Disney's NFT Adventure 🔔
Disney is belatedly jumping on the NFT bandwagon, partnering to launch a platform featuring tokenized versions of beloved characters. From Mickey to Vader, fans can soon collect digital pins to trade.
Disney's dipping its toes into blockchain after ditching metaverse plans. The company's no stranger to profiting off its vast catalog of icons.
Some question whether Disney's late NFT foray has a chance of success as the hype fades. But let’s remember: nostalgia is a powerful force!
Read the full story!
Major Investment in Hong Kong 💱
A leading Hong Kong crypto exchange scored a sizable investment this week from an industry player. This comes amid acquisition rumors swirling around the company.
It aligns with Hong Kong's goal of becoming a crypto and Web3 hub in Asia. The country's pro-crypto policies make it a standout, even as regulators elsewhere still clamp down.
For now, Hong Kong remains a rare bright spot for crypto development in a tense global regulatory environment.
But how much did the exchange get? And who’s the investor? Read the full story!
XRP Fake-out 📈
The price of XRP spiked last week after a fake crypto fund filing appeared under asset giant BlackRock's name. But the firm quickly confirmed it was fake.
Delaware prosecutors are now investigating the document fraud. In the rush for the next pump, people abandon caution. Maybe when something seems too good to be true in crypto, it usually is.
Find more details on Delaware DOJ’s plan!
And that brings us to our Word of the Day!
It’s ‘Fakeout’!
A "fakeout" in crypto refers to those occasions when the market briefly tricks you into thinking you're either going to be gloriously rich or devastatingly bankrupt.
It usually starts with an enthusiastic green candle getting your hopes up that your crypto token is finally going to moon and make you a millionaire overnight. You start planning your early retirement. But then, just as your Lambo order is being confirmed, a sea of red candles shows up to crush your dreams in an instant.
Or sometimes a fakeout begins with a flash crash plunging prices into the abyss, giving you a mini heart attack as you visualize your net worth evaporating before your eyes. You frantically open your exchange app to salvage what's left of your funds. But wait, just as you're about to sell everything, the price bounces right back.
So in summary, a fakeout is crypto's version of Lucy tempting Charlie Brown to kick the football over and over, only to pull it away at the last second, laughing at his misfortune. The euphoric sense of hope turning into despair. The smell of realized gains becoming missed opportunity.
Learn how to spot fakeouts quickly!
Now back to our daily stories!
Sweet NFT Rug Pull Dreams 🚔
The founder of a Mutant Ape Planet NFT collection has pleaded guilty to defrauding holders out of millions in the first criminal conviction involving an NFT rug pull scheme in the US. Fool us once, shame on you. Fool us twice, enjoy five years in prison and forfeit the stolen funds.
The scammer admitted the NFT community had become "too toxic," which apparently justified running away with their money.
More details on how he got caught!
And that's all she wrote for today's episode of What Happened in Crypto Today! CoinMarketCap signing off for now. See you at the same time tomorrow!
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