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Summary of Past Week Articles July 15, 2022

El Salvador’s Finance Minister says a USD 800 million debt default is unlikely, and Bukele believes bitcoin is ‘inevitable’:

El Salvador’s finance minister says he is unconcerned about forecasts by foreign markets that the government will fail on USD 800 million bond payments early next year.

The website of the daily El Diario de Hoy, ElSalvador.com, cited Minister Alejandro Zelaya as saying that doors were open at multilateral organizations that may supply El Salvador with financial possibilities.

Zelaya said that the World Bank had “recently authorized a loan of $100 million for the country. In comparison, the Central American Bank for Economic Integration had also approved a loan of $220 million.

According to La Prensa Gráfica, country risk indicators shot up this week to previous levels in the country’s history.

According to JPMorgan analysts, El Salvador has the second-highest chance of defaulting on its financial obligations in Latin America, trailing only Venezuela.

According to Castaneda, political chatter about the prospect of presidential re-election was also a factor.

The presidency of Nayib Bukele expires in 2024.

However, he appears ready to run for re-election after a constitutional court altered the legislation last year to allow presidents to serve more than one term.

However, popular support for Bukele remains strong, even though his presidency, according to Castaneda, creates uncertainty and a loss of trust in the bond markets.

Bukele, on the other hand, has replied with defiance, claiming that his bitcoin (BTC) adoption plans will assist the economy. In addition, he recently reported to Twitter, his preferred mode of communication, to express his displeasure with a New York Times piece headed El Salvador’s Big Bet on Bitcoin Isn’t Paying Off.

Mixers Will Receive ‘More Cryptocurrency Than Ever Before in 2022’ – Chainalysis:

Crypto mixers, which exist to strengthen the anonymity of cryptocurrency users, are more popular than ever, with illegitimate addresses accounting for 23% of payments transmitted to mixers this year, according to a new analysis from blockchain analytics firm Chainalysis.

According to the business, the 23 percent figure for these seven months of 2022 increased from 12 percent in 2021.

Nonetheless, according to the research, mixers are receiving more cryptocurrency than ever in 2022.

This year has seen a massive surge in the use of crypto mixers, with the 30-day moving average of total value received by mixers reaching an all-time high of USD 51.8m on April 19.

According to Chainalysis, the share of illegal mixer usage has nearly doubled since last year, and these activities are now the primary driver of the increase in mixer utilization.

According to the research, regular centralized exchanges and decentralized finance (DeFi) protocols were significant sources of monies supplied to mixers.

Chainalysis is the source.

Chainalysis discovered that funds from sanctioned entities accounted for most illicit mixer use in the second quarter of this year.

The category contains entities that would have previously been classified into other categories, with the Russian darknet market Hydra being one example.

According to the study approved in April 2022, the Hydra marketplace accounted for 50% of the monies supplied to mixers from sanctioned firms this year.

In the Chainalysis analysis, the sanctioned entities category was followed by stolen funds as the quarter’s second-largest criminal consumer of mixer services.

Crypto Games Are Unaffected by the Bear Market, and VC Investments Continue to Grow – DappRadar:

According to a new report from the decentralized app tracking site DappRadar, crypto-based play-to-earn games and game-related non-fungible tokens (NFTs) have been the least affected sector in all crypto during the current bear market, with venture capital investments continuing to flow into the industry.

According to the survey, the crypto gaming sector peaked in June of this year, when it finally witnessed a slowdown as assessed by the number of unique active wallets (UAW).

In comparison, the number of daily active wallets on the Ethereum (ETH) network peaked at well over 1 million in May 2021, a figure that has yet to be surpassed.

Nevertheless, investors saw the high usage represented by the number of active wallets as an optimistic indication to continue investing in blockchain gaming, according to DappRadar.

It also stated that venture capital investments totaled USD 2.5 billion in the second quarter of this year, maintaining the pace set in the first quarter and already exceeding the yearly milestone of [USD] 4 billion set in 2021.

The report cited a new USD 4.5 billion crypto-focused funds launched by VC behemoth Andreesen Horowitz as a significant source of future investments into the space, claiming that we are predicted to have 12 billion invested at the current rate by the end of the year.

The most notable gaming business areas were virtual world-related NFTs, which saw their trade volume increase by 97 percent since the previous quarter.

According to DappRadar, the most popular game in the sector was Splinterlands, which had a daily average of 283,729 unique active wallets during the quarter.

Another bright light mentioned in the report was Alien Worlds, which was placed second in unique active wallets.

However, in response to the report’s findings, Pedro Herrera, Head of Research at DappRadar, stated that blockchain games had become one of the most promising sectors of Web3.

According to CoinShares, there are 7 DeFi risks you should be aware of:

Risks are prevalent in all financial sectors, including decentralized finance (DeFi).

Credit, liquidity, asset-backed, foreign investment, equity, and currency risk are the most prevalent types of financial risk in traditional finance.

While some of these hazards may exist in DeFi, the industry has its risks, as outlined in recent research by digital asset investing business CoinShares.

First and foremost, crypto is highly volatile, and consumers should keep this in mind while assessing the value of their collateral or the treasury of a decentralized program.

It also explains why major credit rating firm S&P Global Ratings assigned DeFi protocol Compound Treasury a credit rating of B-.

Governance is another source of DeFi risk. According to the paper, governance is not an easy endeavor, particularly in a decentralized system.

The writers said that the existing one token, one vote system promotes voter apathy and increases the likelihood of plutocracy. Short-sighted governance can also lead to tokenomics, which distributes money in an unsustainable manner to those in power.

Several countries, including China and Egypt, have taken severe stands against cryptocurrency, issuing bans.

The bear market causes a significant drop in TVL.

Meanwhile, the research highlighted that thus far, 2022 has been a terrible year for DeFi and crypto.

Total Value Locked (TVL) across DeFi fell by 70% in the last quarter alone, to USD 70 billion, mainly owing to the significant decline in token values. Furthermore, the average “blue-chip” DeFi token is presently down 90 percent from its May peak, with others facing much more significant losses.

The average number of unique addresses decreased on the major blockchains observed by CoinShares, except Solana (SOL), which witnessed an increase of 84,000 users during Q2 2022.

UK Court Allows Claimant in Civil Case to File NFT Legal Documents:

Non-fungible tokens (NFTs) have entered the legal system in the United Kingdom, barely weeks after a similar development in the United States.

According to the law firm Giambrone & Partners, the High Court of England and Wales allowed Fabrizio D’Aloia, an Italian engineer and the founder of the online gambling company Microgame, to serve court documents on the anonymous operators of a fraud.

Documents were also supplied to other cryptocurrency exchanges, including the market leader Binance.

Parties in civil disputes in England and Wales usually are expected to serve legal documents on paper, using the postal service, or hand-delivered letters.

The order authorizes D’Aloia to airdrop the documents in NFT form into two wallets. As per the business, this was the “first recorded case” of NFTs being utilized in this fashion in Europe.

According to Giambrone & Partners, the decision opens the road for blockchain technology to be used to serve court proceedings in international cryptocurrency disputes.

A Venezuelan crime ring was allegedly stealing cryptocurrency from retirees:

A Venezuelan police agency claims to have apprehended thieves who allegedly stole crypto assets from retirees via the Patria crypto remittance network.

Rico stated that three people had been arrested: a man and a woman in their mid-30s and another in his 20s.

The authorities alleged that the organization, dubbed “Hackers from the East,” was targeting retirees to steal their crypto assets.

Venezuelans abroad can transmit tokens to relatives and friends back home using the government-run Patria network.

Rico announced that the matter had been sent to the judiciary, and he published mugshots of the three, four smartphones and a computer that he claimed the police had seized. They also appear to have opened Patria accounts in the names of deceased individuals to defraud the state of pension payments. After obtaining the tokens, the gang members allegedly exchanged their coins for fiat bolivars.

The CICPC and SUNACRIP, the national crypto regulator, have issued warnings about the risk of fraudsters posing as “managers” who assist the elderly who need to utilize the Patria platform.

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