Appold Market Watch - Week 5 to 9 February 2024
Market Update & Industry News - Week ending 9 February 2024
🔷 Global blockchain analysis firm, Chainalysis, reported that a record $1.1b of cryptocurrency ransomware payments were made in 2023, compared to $567m in 2022. In a snapshot of a soon-to-be-released crypto crime report, Chainalysis stated that criminal organisations targeted high-profile institutions and infrastructure.
Appold view: A growth in the total amounts paid by victims, an increase in victims being mainstream organisations and evolving ransomware tactics appear to be the key points. Ransomware remains a growing business, with more action required from organisations, in particular, to sharpen up their processes and train their staff against the traps.
🔷 The US Securities and Exchange Commission expanded the definition of a broker-dealer which could affect firms that routinely work with securities, also stating that crypto is a security and will not be exempt. The move by the SEC allegedly could affect firms dealing in crypto securities with the SEC Chair stating that “if anyone trades in a manner consistent with de facto market making, it must register with us as a dealer”.
Appold view: The SEC's initiative is indicative of a global movement among regulatory bodies to tailor traditional legal and regulatory infrastructures to accommodate the unique characteristics of digital currencies. This development, while presenting hurdles for entities operating within this domain, also paves the way for the digital currency class to become an integral component of the wider financial ecosystem.
🔷 The London High Court Trial between The Crypto Open Patent Alliance (COPA) and self-alleged Bitcoin creator Craig Wright started over an ongoing copyright dispute. COPA is currently suing Australian computer scientist Craig Wright for claiming he is the creator of Bitcoin, Satoshi Nakamoto. In a case that is set to last till mid-March, COPA wants the court to rule that Craig Wright is not the creator of Bitcoin.
Appold view: This trial is not just about resolving a copyright dispute or validating individual claims but also about addressing deeper questions related to identity, innovation, and governance within the cryptocurrency space. It underscores the growing pains of a maturing industry as it intersects more frequently with traditional legal and regulatory frameworks.
🔷 Ethereum Name Service (ENS) announced a partnership with Internet domain name giant GoDaddy to allow users to link Internet domains to their ENS addresses free of charge. Users will be able to link their DNS domains to the ENS ecosystems allegedly bridging the gap between traditional web services and the emerging Web3 space.
Appold view: This highlights the growing convergence of traditional and decentralised web services, promising to open up new opportunities for users, developers, and businesses alike.
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