Crypto Scoop: Speculations On The Impact Of The ETH Merge Grows As It Draws Closer

The Ethereum merge date draws closer, and the crypto market has been buzzing with several adoption initiatives and more. Here are the highlights of the crypto space this week:

• Price gains and dips of top cryptocurrencies
• Speculations as the merge date draw closer
• The lawsuit against Famous crypto evangelist, Michael Saylor
• Crypto adoption initiatives in Africa
• NFT initiatives by Meta, LG Electronics and more

Price Gains And Dips Of Top Cryptocurrencies

During the week, BTC’s price dropped below $20,000 temporarily. This is the lowest bitcoin has recorded since mid-July. The price dip was attributed to a recent sale of 10,000 sleeping BTC worth $203 million by two bitcoin whales who had opened an account since December 19, 2013, according to Btcparser. 

While BTC and ETH are trading in red, Cardano (ADA) recorded a one-week high and rose to a peak of $0.4596. While BTC is trading above $20,000, ETH is trading above $1,500.

The Merge Draws Varying Reactions From Crypto Community.

The Ethereum merge that will move ETH from a Proof of Work (PoW) to a Proof of Stake (PoS) network has been scheduled for September 15, 2022. The anticipated merge has drawn a mixed reaction from the community. During the week, the Ethereum miner balance reached a four-year high as Ethereum miners hoarded ETH in anticipation of the merge. Oklink reports that the balance exceeded 260,000ETH, worth over $415 million. Miners are seemingly exploring ways to cart away as many ETH as possible before the merge. 

OpenSea, a leading NFT marketplace, has declared that post-merge, it will no longer support Ethereum on the Proof of Network(ETHPoW). However, Hetzner, a Cloud Host of more than 10% of Ethereum, noted its services, especially bar crypto mining and staking. It explained that any application related to mining, even remotely related, is not permitted. 

DappRader also reports that the merge may negatively impact Defi protocols. This is because a transition to proof-of-stake could decrease existing values of stablecoin and possibly shrink lending pools. The upgrade may also slow transactions or cause service disruptions, impeding Defi protocols. 

It is unclear what these speculations mean for the Ethereum community; however, after the merge, there will be more clarity on the impact of the merge. 

Bitcoin Evangelist Michael Saylor Sued For Tax Evasion

Michael Saylor, the former CEO of Microstrategy, is famous for his support of cryptocurrencies, with his company owning over 129,000BTC. Saylor recently retired as CEO to focus on the company’s bitcoin strategy. During the week, the District of Columbia filed a lawsuit against Michael Saylor for evading taxes. Microstrategy has also been caught in the crossfire for conspiring with Saylor to evade taxes worth $25million. The lawsuit aims to recover over $100 million in unpaid taxes and penalties. 

Saylor respectfully dismissed the lawsuit, noting that although he has resided in Columbia, he currently lives in Florida, where he pays his taxes. Microstrategy has denied conspiring with Saylor to avoid taxes. Since the lawsuit was announced, MicroStrategy’s stock price dropped from $251 to $220. 

Crypto Initiatives Thrive in Nigeria, El Salvador And Brazil

A recent report from Triple-A notes that Nigeria is the largest crypto market in Africa, with a third of Crypto users in Africa being Nigerians. The Central Bank of Nigeria (CBN) has also announced a slash of 50% in transaction fees for its CBDC platform. CBN expects that the price reduction will lead to broader adoption of e-naira. 

El Salvador has also announced that it will add new infrastructures to Bitcoin Beach. El Zonte is a beach referred to as Bitcoin Beach because of its wide adoption of crypto. The rehabilitation will help promote the Beach as a tourist attraction for BTC. 

Brazil’s Central Bank has also contracted Brazil’s largest private bank, Itaú, to develop a Defi liquidity pool. The partnership is a part of LIFT, a government programme that aims to improve financial inclusion. The platform would enable the custody and exchange of tokens, such as stablecoins backed by the real, the U.S. dollar, or other fiat currencies, the central bank said in a statement.

Central Africa Republic (CAR) Faces A Challenge With Sango Coin

The purchase of citizenship, "e-residency," and land using a cryptocurrency that CAR introduced last month was declared unconstitutional on Monday by the Constitutional Court of the Central African Republic. 

The "Sango Coin" went on sale on July 21 and allowed international investors to purchase citizenship for $60,000 worth of cryptocurrency, with the corresponding Sango Coins held as security for five years and "e-residency" for $6,000, held for three years. 

However, the country's highest court ruled that those transactions were "unconstitutional," citing, among other things, the fact that nationality did not have a market value and that residency needed a real-world visit to the Central African Republic (CAR). The central African Republic government is yet to respond, and it is unclear what this means for the Sango coin.

LG Electronics Launches Its Own Crypto Wallet

LG Electronic has its first crypto wallet application, Wallypto, in the works. According to local media on Wednesday, LG Electronics has been conducting a beta test of the application with developers since August and is currently in the final verification stage.

"Wallypto" is based on the Hedera Hashgraph blockchain and supports Hedera's HTS tokens. It is anticipated that after its formal launch, it will support more networks and tokens. 

NFT Initiatives Across The Globe

Eminem and Snoop Dogg, two legendary American rappers, will perform "From D 2 the LBC" NFT song live on the MTV-sponsored Video Music Awards (VMAs) this Sunday. Holders of a Bored Ape Yacht Club (BAYC) NFT may watch this event live in the "Otherside" Metaverse.

Following filing a trademark application covering nonfungible tokens (NFTs), cryptocurrencies, and the Metaverse, luxury brand, Hermès is setting the groundwork for its entry into Web3.

Live Nation's subsidiary Ticketmaster has also unveiled nonfungible tokens (NFTs) tickets for event organisers minted on its blockchain. The primary purpose of the NFT tickets will be for commemorative value. But aside from being used as souvenirs, they can also be used as proof of attendance at notable concerts. 

Users of Facebook and Instagram can now publish NFTs using their digital wallets, according to Meta, "This will allow people to share their digital collections across both apps after connecting their digital wallets to either platform once."

Crypto.com Accidentally Credits User $ 7 million instead of $68

In May 2021, the Singapore-based cryptocurrency exchange Crypto.com transferred AU$10.4 million (US$7.15 million) to an Australian woman instead of the AU$100 (US$68) that was supposed to be refunded, and it took them seven months to realise their error. The AU$10,474,143 mistake was made when an account number rather than a dollar figure was entered into the transfer's payment area. It wasn't detected until the firm conducted an audit in December.

Thevamanogari Manivel, the receiver, had already spent almost AU$2 million when it was discovered. A judge of Victoria's supreme court judge has ordered that the assets she purchased with the funds be sold and the funds returned to crypto. com

That’s not all!

Crypto.com was forced to back out of a $495 million sponsorship deal with UEFA Champions League.  This was due to its legal team citing regulatory concerns with the exchange’s licenses in the United Kingdom, France and Italy.