NFTs
Crypto NFT Today: Week May 4
Welcome to another edition of NFT Crypto Today! The last two weeks have been full of unmissable events that will define points for the future of blockchain, cryptocurrency and NFTs.
With massive support for the bitcoin market this week, Gemini returning over $2 billion worth of crypto, and more, there’s a lot of essential news you should know about. 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 a significant area of interest. This level, previously a point of resistance, now offers strong support, marking the bottom of a larger consolidation zone extending up to $73,000.
Gemini Returns Over $2 Billion in Crypto
Failed crypto lender Genesis and crypto exchange Gemini have returned more than $2 billion in crypto to 232,000 retail customers in their jointly managed Gemini Earn program, delivering a 242% return on assets since January 2023. Twins announced on May 29th.
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Unlike others crypto companies which went bankrupt after the 2022 market crash, Genesis was able to return customers’ crypto rather than liquidating assets and paying in cash.
Customers who lent Genesis one Bitcoin will receive one Bitcoin back, benefiting from the currency’s dramatic price increase since the company went bankrupt. The price of Bitcoin has more than tripled since January 2023, rising to over $67,000.
Reports show NFTs are susceptible to fraud
The US Treasury released its first risk assessment report on May 29, examining vulnerabilities associated with non-fungible tokens (NFTs). The report emphasized that NFTs are “highly susceptible to use in fraud and scams,” mainly involving traditional schemes.
The findings highlighted several potential risks, security concerns and challenges related to NFTs. According to the 29-page report, criminals use these digital collectibles “to launder proceeds from underlying crimes.”
New developments with FTX bankruptcy
When FTX filed for bankruptcyexperienced crypto traders have seen a profitable opportunity. The bankruptcy team, mostly inexperienced with crypto, initially faced embarrassing losses worth tens of thousands of dollars during attempts to consolidate the funds.
In September 2023, the estate recruited billionaire Michael Novogratz’s asset management arm, Galaxy Digital Holdings, to manage its vast crypto assets. This involved the sale, hedging and staking of digital tokens, allowing token holders to earn passive income by helping to validate transactions on a blockchain network.