Crypto News, Feb. 1: The NFT World Has a BIG Problem
Crypto News

Crypto News, Feb. 1: The NFT World Has a BIG Problem

Created 6mo ago, last updated 6mo ago

You'll either come across endless praise for NFTs and everything they stand for… or visceral hatred. There doesn't seem to be an in between — and that's not good.

Crypto News, Feb. 1: The NFT World Has a BIG Problem

Table of Contents

The biggest, best crypto news ever

But first — subscribe to our newsletter.

Listen to the CoinMarketRecap podcast on Apple Podcasts, Spotify and Google Podcasts

Editor's Note: NFTs — A Massive Tug-of-War

A flurry of news stories has exposed a major problem with non-fungible tokens.

On one hand, you have A-listers proudly sharing their Bored Apes — with Disney's former CEO declaring that NFTs have huge potential.
On the other, there's a vocal crowd who want NOTHING to do with them. Ye has declared that he wants to focus on creating things in the real world. Meanwhile, a small games developer has announced it will no longer work with Team17… all because the company is releasing NFTs inspired by the Worms franchise.

Supporters point to how NFTs are democratizing art, empowering creators, modernizing the art of collecting, and unlocking cutting-edge use cases. Critics balk at the prices seen on OpenSea… and criticize the impact that blockchains have on the environment.

Discourse on social media and in the press reflects this. You'll either come across endless praise for NFTs and everything they stand for… or visceral hatred. Is there actually an in between?
There's no real solution to this problem. What I'm pointing out is this: NFT naysayers are loud, and they're not going anywhere. This could have a big impact on mainstream adoption — and the crypto community may need to make greater efforts to allay their fears.

India crypto ban looking unlikely 🇮🇳

After years of uncertainty, it seems India may not ban cryptocurrencies after all. But there's a catch. The government plans to tax profits from trading digital assets at 30% — one of the highest rates in the world. Local crypto exchanges are welcoming the news, and say it's a crucial step to finally receiving regulatory clarity. A Deloitte poll also suggests millions of consumers may make an investment once the rules are clearer. India also plans to launch a central bank digital currency by 2023.

Kanye REALLY doesn't like NFTs

Kanye West has just delivered a blunt message to crypto bros. On Instagram, he posted a photo of a note that said: "My focus is on building real products in the real world. Real food. Real clothes. Real shelter. Do not ask me to do a f****** NFT." It is worth noting that Ye is keeping the door open to working on NFTs in the future. The picture he shared on Insta tells people to "ask me later" — and his post says he has no interest in launching digital collectibles "for now." It's already received 1.6 million likes.

Is Wonderland's Sifu laundering ETH? 🚨

The man at the heart of a DeFi protocol's collapse has started laundering crypto through a coin mixer. Michael Patryn was the treasury manager of Wonderland, but it has since emerged that he is a convicted fraudster who also co-founded QuadrigaCX. On-chain data shows that an address linked to him has sent 2,000 ETH to Tornado Cash in regular batches of 100 ETH. This crypto haul is worth $5.5 million at current market rates. Tornado Cash is used to obfuscate transaction histories.

El Salvador refuses to abandon BTC 👀

El Salvador has issued a more formal — and angry — response to the International Monetary Fund's pleas for the country to abandon Bitcoin as legal tender. The Central American nation's treasury minister, Alejandro Zelaya, furiously told a local television channel: "No international organization is going to make us do anything, anything at all … Countries are sovereign nations and they take sovereign decisions about public policy."
19 people liked this article