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Summary of Past Week Articles June 03, 2022

Global Insurers Begin Investing in Crypto As Part of a Risk-On Investment Strategy:

According to a Goldman Sachs Insurance Asset Management report, global insurers want to continue a risk-on investing strategy, with larger allocations to private equity, green bonds, middle-market corporate loans, and crypto-assets.

According to the research, the survey covers the perspectives of 328 chief investment officers and chief financial officers who manage more than USD 13 trillion in global balance sheet assets.

Mike Siegel, Global Head for Insurance Asset Management and Liquidity Solutions Businesses at the investment bank’s Asset Management arm, commented on the findings, saying that global insurers were also showing an increased interest in crypto.

He explained that 6% of industry respondents indicated that they are either involved in crypto or are considering investing in it.

According to the survey, American insurers are slightly more interested, with 11% currently engaged or considering investing in crypto assets, than Asian insurers at 6% and European insurers at 1%. However, opinions on the predicted profitability of crypto investments remain divided.

At the same time, crypto-assets were named one of the top five classes, with the highest and lowest overall returns over the following 12 months.

In either event, 1% of respondents intend to raise their allocation to crypto assets in the next 12 months. Another 7% plan to keep their existing share, and no one wants to sell it.

While investment uncertainty remains high, respondents in 2022 are more optimistic than those polled in 2021 and a year prior, with 63% saying the investment picture is either the same or improving, according to the report.

While NFTs are new, this criminal scheme is not: Ex-OpenSeas CEO Arrested on NFT Insider Trading Charges:

The former Head of Product at OpenSea, the most significant non-fungible token (NFT) platform, Nathaniel Chastain, was arrested and charged with wire fraud and money laundering in connection with NFT insider trading.

On Wednesday, prosecutors in New York’s Southern District charged the 31-year-old with using confidential information about which NFTs would be promoted on OpenSea’s homepage for his financial gain.

As part of his job, Chastain was in charge of picking NFTs that would be published on OpenSea’s homepage.

According to the Justice Department, Chastain allegedly purchased such NFTs and then sold them for a considerable profit shortly after the company showed them on the homepage. 

As per the DOJ, Chastain exploited OpenSea’s proprietary information between June 2021 and September 2021 to secretly purchase dozens of NFTs immediately before being published on the webpage and quickly sell them for two- to five-fold profits.

Chastain allegedly purchased the NFTs on OpenSea using many secret wallets and anonymous identities.

Nathaniel Chastain, it is claimed, betrayed OpenSea by exploiting its business knowledge to gain money for himself.

Meanwhile, the episode sparked debate on the necessity for decentralized NFT marketplaces.

In 2021, US Treasury Secretary: ‘I Was Wrong About Inflation.’:

As America’s inflation rate has stayed undetected since the 1980s, US Treasury Secretary Janet Yellen has admitted to being mistaken. As she explains, the trajectory of inflation has been unexpected and significant economic shocks that have pushed up oil and food prices.

Yellen also admitted that the US has been struggling with supply bottlenecks that badly affected the economy. However, she didn’t fully understand their nature before they began to take their toll on America’s economic performance.

Despite the mistaken assumption that last year’s inflation eruption would be transitory, America’s inflation rate was 8.3 percent for the fiscal year ending April 2022. That is the latest data available from the US Bureau of Labor Statistics.

Yellen met with President Joe Biden, Federal Reserve Chairman Jerome Powell, and National Economic Council Director Brian Deese earlier this week to discuss the steps needed to combat the country’s rising inflation. According to the announcement, the Federal Reserve is taking the necessary actions.

Meanwhile, Pomp Investments founder Anthony Pompliano tweeted that Yellen has finally capitulated and admitted she was wrong on inflation but that more of this is needed in the country’s leaders. He was arguing that If US people are going to give appointed officials a hard time, they must also respect when they are willing to admit they are wrong publicly.

However, Sven Henrich, the founder of the trading and research website NorthmanTrader, appears to disagree with this statement.

A group of tech professionals and academics has urged Washington to reject crypto lobbyists:

26 IT specialists and professionals have admonished cryptocurrency, accusing blockchain and crypto of being not decentralized – and have petitioned US legislators to tighten down on the sector and its lobbyists.

According to the Financial Times, the group includes Harvard University lecturer Bruce Schneier, former Microsoft engineer Miguel de Icaza, and Kelsey Hightower, a principal engineer at Google Cloud. 

Meanwhile, software developer and outspoken crypto critic Stephen Diehl took to Twitter to justify the campaign, writing that the crypto fraud is spiraling out of control.

The group appears to have objected to the activities of Washington-based crypto advocates who seek to fight measures to control what the Financial Times referred to as a frothy sector.

They sent the letter to Senate Majority and Minority Leaders Charles Schumer and Mitch McConnell and essential senators such as Republican Patrick Toomey and Democrat Ron Wyden.

The same media platform cited Congressional Lobbying Disclosure statistics, which revealed a significant growth in crypto lobbying from 2018 to 2021. The amount of money spent on lobbying for the crypto sector quadrupled from USD 2.2 million in 2018 to USD 9 million last year.

Last year, Coinbase alone spent USD 1.5 million on lobbyings, while evidence suggests that Meta, Visa, and PayPal are also involved in pro-crypto lobbying.

And the signatories are said to have gone so far as to say that cryptocurrency and blockchain technology serves no meaningful use. Another American computer scientist responded to this tweet by saying that there is no arithmetic problem for which blockchain is even close to the optimum answer.

After a ‘Turbulent Launch,’ Optimism’s OP Token appears in Roller Coaster Mode:

Optimism’s turbulent launch of the OP token caused unprecedented demand and delays on the Optimism blockchain mainnet. A second layer scaling solution for Ethereum (ETH) embarked on a roller coaster.

After temporarily falling to as low as USD 1.38, the token reached an all-time high of USD 2.10 in the early hours of its introduction before beginning a correction.

Late Tuesday, the Layer 2 (L2) scaling solution released the much-anticipated airdrop of its OP currency, delivering free tokens to early project participants who interacted with the network before June 23, 2021.

Following the debut of its governance token, Optimism encountered extraordinary demand, resulting in delays in the Optimism blockchain mainnet and remote procedure calls (RPCs). According to CoinGecko, at 7:35 UTC on Wednesday morning, OP is trading at USD 1.77, up 23.8% in the last 24 hours.

According to the study, what failed was public infrastructure – i.e., RPC that users may talk to submit transactions.

Polynya, a pseudonymous Ethereum expert, claimed that despite the botched airdrop, the Optimism chain, and the sequencer, the party in charge of block production was completely live throughout.

They claimed that at its height, the L2 solution handled more traffic than the Ethereum mainnet while using less than 5% of the mainnet’s gas. In addition, Optimism, as previously reported, announced the introduction of its governance token OP in late April, which would aid the initiative’s transition to a decentralized governance structure known as the Optimism Collective.

The Optimism Collective is a bicameral government structure ruled jointly by the Citizens’ House and the Token House.

Residents of a luxury residential area in Argentina will have access to a Bitcoin mining facility:

A new luxury apartment complex in Buenos Aires’ exclusive Belgrano area will be the first to include a Bitcoin (BTC) mining operation, allowing tenants to be paid to live in their units.

The project’s developers said that they would invest between USD 10 million and USD 15 million in the enterprise, run by the MCL architecture company. Pampa 2.0, as the complex is called, will include nine stories, 32 flats, and a café on the ground floor. But the building will also be equipped with between five and ten machines that mine cryptocurrencies.

Damián Lopo, the chief developer at Newlink Capital, also mentioned that the developer plans to calculate an average price for bitcoin over 12 months to account for BTC volatility. This calculation will be used as an estimate that would allow the mining operations to fund at least 100 percent of the building’s expenses.

Lopo predicted that the developer would charge roughly $2,500 per m2, implying that a two-room apartment at Pampa 2.0 would cost around $120,000. In addition, the project’s creators wrote of establishing a crypto building in a promotional film and featured a digital image of a coin stamped with the bitcoin logo.

The developer also stated that because of advances in lighting, insulation, and solar panel technology, living costs at the new building would be roughly 60% lower than at rival complexes, implying that even if the mining operation failed, residents would not be out of cash.

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