All posts by Alan B. Zibluk

The WEF Want In Recommending A Global Approach For The Crypto Industry

Crypto Regulations: The WEF “Want In” Recommending A Global Approach For The Crypto Industry 

The World Economic Forum (WEF) is notorious for having a far-reaching and perplexing influence over companies and institutions in many countries worldwide. This influence extends to the crypto industry and crypto regulations. The WEF published a crypto regulation white paper in May 2023, which is significant, so we’ll take a look at what they have to say and how it could influence the crypto legislation being proposed worldwide. We’ll also examine how it could affect the crypto market if implemented.


Image source: Weforum.com

The WEF white paper summarized in this article is titled “Pathways to the Regulation of Crypto-Assets: A Global Approach.” The white paper begins with a brief preface by a member of WEF’s Center for the Fourth Industrial Revolution. For context, WEF founder and chairman Klaus Schwab conjured up the Fourth Industrial Revolution. This concept involves replacing all of us so-called serfs with AI and Automation. Another component of the Fourth Industrial Revolution is controlling the population with technology. 

In the preface, the question is asked of how governments can control a borderless, open-source, and decentralized technology. Naturally, the only solution is a globally coordinated approach to regulation. The author of the preface reveals that the WEF has been engaging in “multi-stakeholder consultations” to understand how to roll out global crypto regulations. 

For reference, a stakeholder is a term the WEF uses to describe powerful individuals and institutions, not ordinary people like us. In this case, the author of the preface specifies that the white paper was put together with “significant contributions from members of the Digital Currency Governance Consortium.” (DCGC)

For those unfamiliar, the DCGC was formed in January 2020, including multiple crypto companies. The complete list of DCGC members is private. Still, research on the WEF reveals that Ripple, also the Ethereum company, Consensus, and USDC issuer Circle are all part of the DCGC, as are dozens of prolific personalities in the crypto industry. 

The DCGC has published five reports so far, and the WEF website notes that it is currently in phase two of its master plan, which involves assessing the economic effects of crypto, stablecoins, and central bank digital currencies. (CBDCs) 

The Key Takeaways

The next section of the white paper provides a summary of the key takeaways. Here, the authors argue that global crypto regulations are not only desirable but “necessary.” They seem to suggest this is because of the increasing connections between crypto and traditional finance. The authors explain that many things are standing in the way of global crypto regulations, including: 

  • A lack of universally accepted definitions for different types of cryptos, 
  • A lack of coordination between Regulatory Agencies 
  • Regulatory Arbitrage, meaning some countries are too pro-crypto. 

The authors highlight that many unaccountable and unelected international organizations have been working on global crypto regulations. This includes the Financial Stability Board (FSB) and the Financial Action Task Force. (FATF) The authors admit that the WEF has been in contact with these organizations but insist that academia, civil society, and crypto users will also have a say in global crypto regulations. Of course, the authors don't put a timeline on when we will have a say in this matter; but we have yet to have a say in anything. 

Why Are Global Crypto Regulations Required?

The first part of the report is about why global crypto regulations are required. The authors start by explaining what crypto assets are and include stablecoins under the definition of a crypto asset. Note that these reports seldom refer to cryptos as currencies; they believe cryptos are not currencies. That said, the authors do acknowledge that cryptos have some financial use cases. They say that this is why regulatory scrutiny around crypto has increased. 

As you might have guessed, they refer to the crash of Terra last May and the crash of FTX last November as examples of why regulatory scrutiny is justified. The authors then explain that different jurisdictions have since introduced different crypto regulations. They claim that this increases the risk to the global financial system and benefits bad actors in the crypto industry. 

They also highlight the inconsistency in crypto definitions. The authors then suggest that smart contracts could be one way of ensuring regulatory compliance. This is not surprising considering that the WEF is a massive fan of programmability in payments. Again, the WEF and its affiliates ultimately want to control what people do, and programmable payments are one way to do just that.
 
When it comes to regulating cryptocurrencies, the authors say the first step is identifying where the crypto activity is taking place, if possible. The second step is to determine who is engaging in the crypto activity, and the authors say that privacy coins, personal wallets, and DeFi protocols make this problematic. This is a worry because it implies that personal wallets will be a target of global crypto regulations. 

Although, in fairness, the authors of this white paper don't seem to be that opposed to personal wallets. That's because they know that if you buy your crypto through an exchange with KYC, it's easy to identify which wallet belongs to who with the help of blockchain analytics companies like Chainalysis.  According to the authors, the third step to regulating crypto is determining who is responsible for any crypto activity. They admit this is sometimes difficult, mainly when dealing with decentralized protocols. They note that this will become easier if DAOs become regulated entities.

Crypto And Traditional Finance Connections

In the next section, the authors dig deeper into the connections between crypto and traditional finance. They start by saying that the crypto market’s correlation to BTC's price is a sign of maturity. Now this is arguably incorrect; a decoupling between different crypto categories would be a sign of maturity. What the authors do get right, however, is that institutional interest in crypto has been on the rise. 


Image source: Finoa

They cited a series of statistics from pro-crypto sources, which should be taken with a grain of salt. Genuine institutional interest and investment will come once crypto regulations are introduced everywhere. The authors also note that retail interest in crypto is on the rise and imply that this could cause problems for financial stability. This could explain why some countries, such as Canada, closely aligned with the WEF, have started introducing restrictions on retail investors in crypto. 

Besides contagion risks, the authors correctly underscore concentration risks as another concern. The crypto market relies on a handful of stablecoins, a handful of exchanges, and even a handful of cryptos. Oddly enough, the authors claim that Layer 2s on Ethereum lower this concentration risk. This is odd because many Layer 2s still rely on Ethereum for their security, which logically increases concentration risk, never mind that many of these Layer 2s are highly centralized and backed by the same investors. 

Challenges To Global Regulation 

The second part of the white paper is about the challenges to global crypto regulation. The authors start by reiterating that the absence of universally accepted crypto definitions is the biggest problem. They propose a potential taxonomy but admit that there are exceptions to every crypto definition. They then explain that this is a problem because it makes consensus about specific crypto regulations impossible. It increases the cost of crypto compliance worldwide, making it difficult to protect consumers. 


Image source: Weforum.com

According to the authors, regulatory arbitrage is the second challenge to global crypto regulation. They take issue with the fact that crypto developers can relocate wherever they want. It’s becoming all too clear that the WEF would like nothing more than to control the movement of people. 

On a related note, did you know that the WEF is also trying to turn almost every major city into a Smart City? More about that in an upcoming article. Meanwhile, Smart technology is already causing issues for consumers. 

The authors admit it might still be too soon to push for global crypto regulations. Most governments are still trying to wrap their heads around the technology. Some jurisdictions are further along than others, such as the EU, which recently passed its MiCA crypto regulations. 

The authors then reveal that these early crypto regulations, including MiCA, will come into force starting early next year. This is significant because this could make institutional investors comfortable allocating to crypto again. It means the crypto market could rally starting early next year. And this, coincidentally, corresponds with the next Bitcoin halving. 

The authors also take issue with so-called crypto hubs. They seem to imply that the crypto hub is code for ‘less crypto regulation’ and appear to blame them for causing regulatory arbitrage. If the WEF starts pulling the strings, this could be awkward for places like the UAE, Dubai, Hong Kong, and Singapore

Geopolitics

This ties into another vital angle the authors raised regarding crypto regulations – Geopolitics. International relations are deteriorating, making it difficult for certain countries to comply with global crypto regulation recommendations. It's safe to say that this trend will continue. 

The above relates to the third challenge to global crypto regulation: "Fragmented monitoring supervision and enforcement.” The authors reiterate that a lack of international cooperation is one of the core causes of this fragmentation, coupled with the rapid evolution of crypto-related technologies. 

The authors then provide the FATF's infamous travel rule as a case study. The travel rule requires all transactions above a certain threshold to be tracked and KYC’d. The authors complain about the fact that compliance with the FATF's travel rule has been slow when it comes to crypto. 

While we’re on that topic, you should know that the FATF has reportedly been pressuring countries to restrict or even permanently ban crypto to get off its grey list. Any country on this so-called naughty list is refused bailouts from the IMF, so a clean report from the FATF may be a political priority. If there is any truth to this, crypto hubs could face financial sanctions if they don't comply with the FATF’s crypto recommendations; perish the thought. 

Approaches To Regulating Crypto Globally

The third part of the white paper is about the possible approaches to regulating crypto on a global scale. The authors provide a de facto list of regulations the WEF wants to see. 

  • Crypto-specific 
  • Stablecoin-specific
  • Know Your Customer (KYC) /Anti Money Laundering (AML) 
  • Consumer protection, including restricting retail access to crypto 
  • Strict regulations around crypto marketing 
  • Regulation of DeFi and DAOs 

The authors then detail the five primary approaches to crypto regulation. 

1: The first is Principles-based regulation. This involves regulating around a series of broad principles rather than specific rules. The benefits of this approach are innovation and flexibility. The drawback is regulatory uncertainty. 

2: The second approach is Risk-based crypto regulation and involves applying the same risk/same regulation principle, meaning that crypto should abide by existing financial regulations. The benefit of this approach is regulatory certainty, and the drawback is difficulty in assessing risks. 

Notably, the WEF is a massive fan of this same risk/same regulation approach. It's why you see it in many existing regulatory recommendations for crypto. If that wasn't concerning enough, in this section, the WEF advocates for eliminating cash and going digital to ensure that KYC/AML is followed. 

3: The authors call Agile regulation the third approach to crypto regulation. This effectively allows regulations to evolve in response to new innovations. The benefit of this approach is that it is flexible. The drawback is that it requires much coordination and collaboration with the crypto industry. 

4: The fourth approach to crypto regulation is Self- and co-regulation. It involves allowing the crypto industry to set standards. The benefit of this approach is that it builds trust. The downside is that it can lead to capture; For instance, one company determines all the standards. 

5: The fifth approach to crypto regulation is one we’re all familiar with: Regulation by enforcement. It involves taking crypto companies and projects to court and using the precedent as de facto regulations. The benefit is accountability, and the drawback is zero innovation.

Interestingly, the authors asked their so-called stakeholders which regulatory approaches are best. The results can be seen in the image below. As one would expect, Risk-based regulation is the most popular, especially considering that the WEF is a fan of this particular approach. 


Image source: Weforum.com

The authors confirm that the other unaccountable and unelected organizations, such as the FSB and FATF, have been adhering to the WEF’s Risk-based approach to crypto regulation. It's preposterous to consider just how much influence the WEF has, and this is just the public stuff. 

WEF’s Recommendations for Global crypto regulations.

The fourth part of the report contains the WEF’s recommendations for Global crypto regulations. The authors explain that these recommendations are meant for international organizations, governments, and “industry stakeholders” who are presumably part of the WEF. 

In other words, these recommendations are what most crypto regulations will look like, regardless of what we, the people, say or do. The authors again claim that the average person will get the chance to give their input someday, but we’ll just have to wait and see if that happens. 

The first set of recommendations is specifically for international organizations. These are to;

  • Create definitions for different types of cryptos and crypto activities 
  • Set standards for how these cryptos and activities should be regulated
  • Share data about registered entities with all organizations. 

It brings into question whether ‘registered entities’ include the average crypto user. As it’s the WEF, the answer is probably, yes. After all, the endgame of these international elites is to create a global government with a global digital ID and a global centrally controlled digital currency. 

The second set of recommendations is specifically for governments. These are to; 

  • Coordinate regulations between jurisdictions.
  • Create regulatory certainty for the crypto industry.
  • *Use technology for regulation by design. 

*The latter means regulation at the blockchain level via Smart contracts. Remember, the WEF loves programmability. 

The third set of recommendations is specifically for the crypto industry. They are; 

  • To set standards 
  • To share best practices
  • Ensure “Responsible Innovation.” 

This seems to be code for adhering to ESG criteria, given that the term refers to environmental, social, and economic risks. 

If you've been following articles about ESG, you'll know it's an investment ideology to ensure the UN's sustainable development goals or SDGs are met. Every country is supposed to meet the UN's SDGs by 2030. My research suggests that all the dystopian stuff being pushed has its roots in the United Nation's SDGs, be it CBDCs, digital IDs, smart cities, or online censorship. 


Image credit: Markethive.com

What Affect Will It Have On The Crypto Market? 

So the big question is, how could the WEF’s global crypto regulation recommendations affect the crypto market if implemented? The short answer is that it would result in the crypto industry being absorbed into the existing financial system, which is precisely what the WEF wants. 

The practical effect of Risk-based regulation is that crypto is forced to comply with existing financial regulations. As the authors tacitly admit, these risks posed by crypto aren't always clear. Many argue that the risks are significantly different and justify different regulations. The WEF’s recommendations would make crypto worse than the existing financial system. That's because they would require information about all registered entities to be; 

  1. Shared with international organizations 
  2. Require regulations to be enforced via Smart contracts
  3. Require all cryptos to be ESG compliant 

These three unsuitable recommendations have one thing in common: Governance, more succinctly, control. This article about ESG and Bitcoin explains that the environmental aspect isn't the problem; it's the governance. Bitcoin can't be controlled because it has no traditional governance structure. In case you missed it, this is the core issue the WEF and its allies are trying to address. How do we control something that is designed not to be controlled? 

It's possible, if not likely, that the endgame of the environmental-focused attacks on Bitcoin is to track all Bitcoin miners and nodes. It’s something that the WEF’s global crypto regulations would prescribe because Bitcoin miners and nodes would presumably need to be registered. 

Their information would therefore have to be shared with all international organizations. At that point, it would become possible to control Bitcoin in theory. In practice, the WEF’s global crypto regulations will never come to pass, which the authors have also tacitly admitted. 

In addition to the geopolitical tensions, it's practically impossible to introduce the same crypto regulations in every single country simultaneously. This means that there's going to be some regulatory arbitrage, whether it's intentional or not. This regulatory arbitrage will exist for years, and in some countries, it will persist for decades. 

So long as there's a country out there that the WEF can't influence, it won't be able to entirely corrupt crypto. Also, because crypto innovation is essentially exponential, there's a high likelihood that it will evolve to the point that the WEF and its allies can’t control it. This is the most important takeaway – Crypto is too fast for the WEF. 

Klaus & Co will never be able to keep up, and crypto will eventually win the race. Right now, though, there are many hurdles facing the crypto industry, and the WEF’s white paper suggests that it played a role in putting those hurdles in place. The WEF's fingerprints are there, whether it's the FSB or the FATF. It’s also common knowledge that there are WEF allies in the crypto industry. 

Even so, many in the crypto industry who are on the right side of history, and we at Markethive, genuinely believe that the incentives of crypto are more robust than the WEF’s cronyism. Imagine helping to create a powerful crypto or protocol that allows the average person to preserve their purchasing power, grow their wealth, and maintain their financial freedom. In that case, you are rewarded in every possible way.  

As purchasing power, wealth, and financial freedom continue to erode, the incentive to create robust protocols with crypto will only increase. Eventually, the incentives will become so strong that the WEF’s hurdles will become irrelevant. The people will want freedom, and they will achieve it through crypto. 

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

References: World Economic Forum, Coinbureau

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Also published @ BeforeIt’sNews.com; Steemit.com; Substack.com

THE INCENTIVIZED LOAN PROGRAM ILP is a powerful way to spread wealth

THE INCENTIVIZED LOAN PROGRAM (ILP) is a powerful way to spread wealth. (Updated)

Given the ever-increasing Markethive membership, I’ve updated and republished this article from three years ago for all our newer members. Markethive’s Incentivized Loan Program (ILP), also known as an Initial Loan Procurement, is a valuable tool for distributing wealth. The ILP is essentially a loan that adheres to regulatory standards and complies with the UCC Code. This ensures it can be used in various countries without worrying about fraud or money laundering issues. It's similar to a convertible note, a type of short-term debt financing used for early-stage capital raises. In simple terms, it's like a promissory note or an IOU.

Markethive has developed a revolutionary approach to financing projects through the blockchain, offering an alternative to traditional crowdfunding methods. By leveraging the power of decentralized networks, Markethive's Incentivized Loan Program enables the raising of funds securely and transparently, making it a game-changer for entrepreneurs and innovators. As a pioneer in this space, Markethive is leading the way in decentralized debt crowdfunding, providing a new avenue for businesses to access the capital they need to thrive.

ILP holders have a share in the company's success and receive a portion of the profits in the form of interest, which is 20% of the net revenue paid out monthly, and a final balloon payment at the end of the 20-year note period.

Here is a bullet point breakdown

• The Incentivized Loan Program generates a formally binding and lawful loan arrangement that adheres to the USA UCC code for debt instruments. Since it's a debt instrument, it's exempt from taxation.

• The opportunity is accessible to people globally since lending practices are prevalent in most regions.

• The company can focus on developing tokens with genuine utility and value rather than issuing speculative tokens without practical application.

• Markethive utilizes the debt structure to bring in operational capital, and as a result, ILP holders receive a secure, transferable blockchain token. The total number of ILPs available is capped at 1000, although we are targeted to distribute fewer than that. Each share is equivalent to a single full ILP. 

• Markethive's diverse revenue streams will provide the necessary funds for interest payments, distributed through the ILP utilizing blockchain technology and paid out in Hivecoin (HVC) via the recently integrated comprehensive financial hub called the Markethive Wallet. This cryptocurrency can then be exchanged for other cryptos or fiat currencies through various coin exchanges and, ultimately, through Markethive's crypto exchange platform.

• For as long as the principal remains outstanding, 20% of the net revenue is distributed to all ILP token holders in proportion to their share as interest payments. Following this, a lump sum payment is made after 20 years and can be further extended upon agreement between parties.

• The interest payments will be paid using the ILP Blockchain, which ensures their security, efficiency, and accuracy. The blockchain technology behind it makes tampering impossible.

• Holders of ILP tokens will be able to sell their tokens through Markethive's decentralized, peer-to-peer auction-style exchange, allowing them to dictate the terms of their own exit strategy.

• ILPs can be divided into smaller parts, known as fractions, with a minimum denomination of 1/1000th of an ILP. A specialized internal exchange, the ILP Markethive Exchange, is being developed where members can purchase and sell their ILPs or fractions of their ILPs peer-to-peer. This allows members to monetize their ILPs, turning them into cash cows.

• The ILP token is not based on speculation. It’s based on performance. 

Imminent Growth – Lucrative Outcome

Due to consistent growth indicators from both internal and external sources, ongoing enhancements, and the implementation of integrations that enhance user experience and strengthen our systems' security, we are optimistic about the rapid expansion of our community. Currently, members who upgrade to Entrepreneur One (E1) for $100 monthly are supporting Markethive's efforts to design, build, and implement innovative systems and integrations, and they will be rewarded a thousandfold.

The revenue generated by diverse sources, including the Premium Upgrade (PUP), retail products and services, and the pioneering E1 upgrade, will fund the monthly ILP interest payments. To simplify the calculation and for the sake of this article, let's assume a modest estimate of 5 million members. This allows us to project the following growth…

If 10% of Markethive's 5 million members upgrade to a Loyalty Program at $100 per month, the monthly income would be $5 million. With a 20% net revenue, that's approximately $10 million monthly. When divided by the maximum number of 1000 ILP shares, it translates to a monthly income of $10,000 for each share.  For the holders of 1/10th of an ILP, that represents a cool $1000 per month for a subscription payment of $100 per month. 

As the company grows, the revenue will reflect that growth for a projected duration of 20 years before the loan becomes due, which is regarded as a balloon payment. Currently, one full ILP is worth $10,000, but as the ILP purchases increase or are allocated through the Entrepreneur One Upgrade, the value of the ILP will continue to grow along with the monthly interest payments. 

LinkedIn Statistics 


Source: Kinsta.com

LinkedIn is considered one of the closest, most targeted, and most socially networked competitors to Markethive, even though it falls short in services compared with Markethive. LinkedIn’s most recent figures suggest it has more than 900 million members with over 58 million registered companies. According to Kinsta.com, in September 2023, LinkedIn’s annual revenue was $13.8 billion, reporting that 39% of LinkedIn users had upgraded to their Premium service. LinkedIn’s yearly revenue surpassed $15 billion in Q4 2023, reflecting 1 billion members, according to LinkedIn statistics


Source: Kinsta.com

Based on LinkedIn’s figures and annual revenue of $15 billion, 20% is $3 billion, and the monthly figure would equate to $250 million. At Markethive, that 20% would go to the ILP holders. Based on the maximum total of 1000 ILPs, that correlates to a monthly income of $250,000 per ILP. 

LinkedIn’s 4-tier Premium plans offer nothing more than greater and deeper access to the data of other members, visitors, searches, and 3+ levels of deep messaging. Their services and, subsequently, annual revenue pale in comparison to what Markethive offers now, not to mention the retail products, services, and integrations in development and imminent release; you can just imagine a potential revenue of 10X that amount, and that is arguably a very conservation projection.  

Markethive is determined to distribute its profits to the Markethive community instead of exclusive stakeholders and Microsoft, who acquired LinkedIn for $26 billion in 2016. In response to the changing global economic conditions, Markethive is actively working towards implementing a business model that prioritizes the community. This model allows individuals without significant financial resources to pursue entrepreneurship and access wealth-building opportunities typically available only to prominent venture capitalists.

There’s Always Ways To Earn in Markethive

At Markethive, we are dedicated to ensuring that our rank-and-file members have seamless access to ILPs, as we firmly believe in making Markethive a company for all. To further enhance the benefits of being a part of our community, we have the Markethive Token (MHV) paid to members for daily activities via micropayments recorded in the Coin Clip. These features provide our members with long-term wealth and revenue opportunities and create a thriving ecosystem where our coin can be utilized to its full potential.

Creating a “Universal Income” for entrepreneurs. Using our state-of-the-art integrated inbound marketing platform, social network, hybrid AI, business services, e-wallet, coin exchange, mining data center, incubator, and blockchain income platforms for success in the crypto-preneurial and entrepreneurial markets.

View the white paper to clearly understand the Markethive vision and mission and the statistics and milestones achieved. White Paper https://markethive.net/Markethive.Whitepaper.V4.pdf

So, how do you get your hands on your share of an ILP? You can choose from the following two ways…

  1. You can purchase fractions of an ILP with the Markethive Token (MHV), starting with 20,000 MHV for 0.01 ILP, through to one full ILP for one million MHV.   
  2. You can wait for the ILP exchange to be completed and then buy ILPs or shares from other exchange members.
  3. You can purchase an ILP or partial shares from us (Markethive) directly. We sell whole shares and fractions as small as 1/10th for $1000.

Conclusion

In conclusion, Markethive's ascension, community participation, and status as a dynamic social network with increasing daily engagement and interaction on the platform indicate a promising future. As a comprehensive social media platform, Markethive offers indispensable inbound marketing tools for business growth and a thriving cryptocurrency ecosystem, ensuring a steady income for its members. With a successful system and the Hivecoin launch on the horizon, Markethive is set for long-term expansion and revolutionizing how we interact and conduct business online.

Markethive is in the final stages of BETA, offering a unique opportunity for individuals to establish themselves as early adopters. This cutting-edge platform is the future of social market broadcasting, providing a comprehensive system for long-term success, financial independence, and a sense of community. By leveraging the power of Web 3.0 technology, Markethive is revolutionizing how we approach social media, inbound marketing, and eCommerce. Take advantage of the chance to secure your place in this innovative ecosystem designed specifically for entrepreneurs.

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

A Glimpse into the World of Crypto Exchange Revenue Decentralized Exchanges Emerge Including Markethives Latest Vision It just makes sense

A Glimpse into the World of Crypto Exchange Revenue. Decentralized Exchanges Emerge, including Markethive's Latest Vision. It just makes sense. 

The popularity of cryptocurrency exchanges has skyrocketed in recent years, with a massive influx of users globally utilizing these platforms to purchase, sell, and exchange digital assets. The rise of cryptocurrencies has brought about a peculiar phenomenon where centralized exchanges hold a dominant position in various aspects, including profitability, usage, stature, and innovation, with examples such as perpetual swaps, a derivative product pioneered in the crypto space. Meanwhile, decentralized exchanges (DEXs) have introduced innovations like automated market makers (AMMs) to the landscape.

In a previous article, we reviewed how crypto trading exchanges made money and, for the first time, surpassed the traditional stock exchanges in 2021. Now, we’ll outline some of the leading centralized crypto exchanges’ revenue and ponder the emergence of decentralized crypto exchanges, which are imperative for security, legitimacy, and autonomy. 

Centralized Crypto Exchanges

Hundreds of centralized exchanges are out there, with many holding their own catering to specific niches. Below is an overview of five leading centralized crypto exchanges, their fortunes, and misfortunes in their efforts to remain successful and serve the crypto community worldwide.  


Source: Binance 

Binance

Binance has emerged as a leading platform for cryptocurrency trading, with a whopping $7.7 trillion in exchange volume in 2021. Founded in 2017 by Changpeng Zhao, a seasoned industry expert who previously held key roles at Blockchain.info and OKCoin, Binance has solidified its position as a dominant force in the digital asset market.

Initially introduced in Hong Kong, it rapidly gained popularity as one of the premier exchanges. However, it encountered a series of strict regulations, with China issuing a ban on crypto exchanges that led it to relocate its servers and headquarters to Malta. Currently, Binance staff are scattered worldwide and work from home. 

Despite facing scrutiny from regulatory authorities in various countries, Binance has managed to maintain its position as the leading cryptocurrency exchange by volume. The company has been investigated in the US and UK, which has led to several banks prohibiting their customers from transferring funds to Binance. Nevertheless, Binance continues to outperform its rival, Coinbase, which has a more extensive user base but lower trading volumes. Binance ranks #1 on CoinMarketCap.

Binance key statistics

  • Binance made $20 billion in revenue in 2021, a 263% YoY increase.
  • Binance has an estimated 28.6 million users as of October 2021.
  • Binance's annual spot trading for 2021 is already seven times larger than its 2020 value.
  • Its peak 24-hour trading volume is $76 billion.


Source: Coinpedia

Coinbase

Since its establishment in 2012, Coinbase has been at the forefront of the cryptocurrency industry, holding the position of the largest exchange in the United States regarding trading volume. Currently ranking at #2 on CoinMarketCap, it is primarily recognized as a platform for buying, selling, and storing Bitcoin. Coinbase also provides various options for exchanging different cryptocurrencies and traditional fiat currencies.

Before Bitcoin's meteoric rise, Coinbase seamlessly integrated its payment processing system with prominent platforms such as Stripe, Braintree, and PayPal while also forming partnerships with major merchants, including Dell, Expedia, and Time Inc. This strategic move positioned Coinbase for success in 2017, a year that would prove to be a turning point for both the company and the cryptocurrency market as a whole. In this year, Coinbase expanded its offerings by adding new coins to its exchange and achieved a remarkable revenue milestone of nearly $1 billion.

Coinbase has faced numerous allegations, such as excessively charging customers for transactions and delays in making currencies accessible. Additionally, it was compelled to disclose information to the IRS about traders in the United States who held significant amounts of cryptocurrency. Although Coinbase went public in 2021, its worth has become closely linked to the price of Bitcoin, resulting in a continuous decrease in value throughout 2022.

Coinbase key statistics

  • Coinbase Global annual revenue in 2022 was $3.194 billion, a 59.25% decline from 2021.
  • Coinbase has 98 million users worldwide, and nine million people exchange monthly.
  • Coinbase lost $2.6 billion in 2022, a massive swing for the company, which reported $3 billion in net profit the previous year.
  • Coinbase global total assets for 2022 were $89.7 billion, a 321.75% increase from 2021.


Source: SignHouse

Kraken

Kraken is among the pioneering cryptocurrency exchanges, with its roots in San Francisco, USA. Founded by Jesse Powell in 2011, the platform aimed to provide a reliable and secure environment for users to trade digital assets. In response to the security breach at Mt. Gox in 2011, Powell saw the need for a robust exchange and launched Kraken publicly in 2013, committed to creating a haven for cryptocurrency enthusiasts.

Kraken ranks #3 on CoinMarketCap and has emerged as the leading crypto exchange in the Eurozone, thanks to its integration with the Bloomberg Terminal and timely involvement in the Mt. Gox saga. Initially, Kraken's growth was fueled by its provision of market data on bitcoin trading, which made it a hit among traders. However, its user base significantly surged when Mt. Gox ceased operations in 2014. As Kraken was chosen to spearhead the search for 650,000 missing Bitcoins and distribute Mt. Gox's assets to creditors, many Mt. Gox creditors opened trading accounts with Kraken, thereby providing the exchange with early liquidity.

Kraken's initial edge as the sole gateway for Euro-based crypto trading has resulted in its position as the leading exchange for Euro trading volume. However, its growth has been outpaced by other exchanges, such as Binance and FTX, which have expanded their offerings and user base faster. Despite being launched later, in 2017 and 2019, respectively, Binance and FTX have now surpassed Kraken in size. This can be attributed to their faster introduction of new features and currencies and their provision of high-risk, high-reward trading options that Kraken does not offer.

Kraken Key Statistics

  • Kraken is valued at $10.8 billion, a valuation/revenue of 7.4X
  • Kraken’s 2022 revenue reached a new milestone of $47.11 million.
  • In 2022, Kraken exceeded 9 million users worldwide.
  • Kraken's monthly average trading volume in 2022 is $33.1 billion.


Source: Coinmarketcap

HTX (formerly Huobi Global)

HTX, a prominent cryptocurrency trading platform, ranks #15 on CoinMarketCap regarding trading volume. Founded in 2013 by Leon Li and Du Jun, the exchange has recently caught the attention of Justin Sun, Tron's founder, who has taken on an advisory role and is considered a de facto owner. To commemorate its 10th anniversary, Huobi Global rebranded to HTX in September 2023, with the letters "H" and "T" representing Huobi and TRON, respectively, and "X" symbolizing the exchange.

HTX Exchange holds significant influence in Asian markets and was initially established in China. However, due to heightened regulatory measures, HTX decided to move its operations to the Republic of Seychelles. In addition to its physical offices in South Korea, Japan, Hong Kong, and Singapore, HTX also established a presence in the United States in 2018. Unfortunately, this office had to be shut down due to regulatory issues. Following the crackdown in China, HTX experienced a decrease of approximately 30% in its revenue, which further fueled its drive for global expansion.

HTX did not benefit from the recent bear market. In 2020, the platform generated approximately $250 million in quarterly revenue, which increased to $1.25 billion in mid-2021. However, by the end of 2022, HTX's quarterly revenue had decreased by 98% compared to 2021. In 2023, HTX focused on burning its HT token to reduce its circulation supply and potentially raise its value. Additionally, HTX adjusted its burning methods to align with other prominent cryptocurrency exchanges.

HTX Key Statistics

  • HTX's estimated annual revenue is currently $110.1M.
  • HTX is handling over $4 billion in daily trading volume.
  • Total assets are approximately $2.35 billion.


Source: Coingeek

OKX (formerly OKEx)

Since its inception in 2013, OKX has undergone various iterations. Mingxing "Star" Xu established it as the OKCoin.cn Bitcoin exchange in China. Subsequently, an international variant called OKCoin.com was introduced, which continues to operate as a fiat-supporting exchange in select markets. In 2017, OKEx, an all-digital-asset platform, was launched concurrently with the International Digital Asset Exchange (IDAX). Over time, OKX has expanded its presence to encompass the European Union, the United States, and Latin America. The company's headquarters are located in Seychelles.

In 2022, OKEx rebranded and changed its name to 'OKX' to adapt to decentralized services. According to OKX, this change in name and image will guide the company toward a decentralized future where digital assets merge with other innovative experiences. The letter "X" symbolizes the uncharted and yet-to-be-discovered opportunities in the financial and virtual domains. OKX holds the rank #5 on CoinMarketCap

The company has made the strategic decision to enter the emerging world of cryptocurrency and delve into DeFi offerings, NFTs, gaming, and metaverses. This expansion signifies OKX's desire to explore the possibilities within the crypto realm fully and transform it into a comprehensive destination for all types of cryptocurrency enthusiasts.

OKX Key Statistics

  • OKX’s year-to-date is $50 – $75 million. 
  • OKX's year-to-date volume is $960.9 billion.
  • OKX has over 20 million users worldwide in over 100 countries.
  • Total assets: Nearly $11.8 billion

Decentralized Crypto Exchanges 

Over the past few years, decentralized exchanges (DEXs) have become strong contenders to the conventional centralized exchange (CEX) model. Blockchain technologies like cryptocurrency are based on a philosophy of decentralization. As a result, it is only natural that decentralized exchanges have emerged to challenge the established centralized exchanges. These recent developments have fostered a distinctively unique ecosystem for crypto assets, attracting a growing community of traders and investors.

What makes DEXs unique is that they're peer-to-peer marketplaces that let cryptocurrency traders make direct transactions — without an intermediary managing their funds. Instead, DEXs use smart contracts that self-execute their agreements, and innovative solutions have been devised to solve liquidity-related issues.


Source: IQ.wiki 

The 1inch Network

The 1inch network was introduced in May 2019, while its token, 1INCH, was launched in December 2020 by its founders, Sergej Kunz, and Anton Bukov. Before co-founding 1inch, Kunz was employed full-time as a cybersecurity specialist at Porsche and worked as a senior developer at a price aggregator. Bukov, on the other hand, has experience in software development and has recently been involved in decentralized finance.

The 1inch network uses multiple protocols: Aggregation, Liquidity, and Limit Order Protocol. The synergy of these protocols ensures fast and protected operations in the DeFi space. It unifies numerous decentralized exchanges (DEXs) into a user-friendly platform. This lets users compare and optimize their crypto trades and swaps without navigating multiple exchanges separately. The network's initial protocol, a decentralized exchange aggregator solution, scours various liquidity sources to provide users with the best possible rates, exceeding those offered by any individual exchange.

The 1inch Aggregation Protocol leverages identify the most optimal paths across a vast network of over 300 liquidity sources spread across ten different blockchain platforms, including Ethereum, BNB Chain, Polygon, Avalanche, Optimistic Ethereum, Arbitrum, Fantom, Gnosis Chain, Klaytn, and Aurora. 

Even though the cryptocurrency market was experiencing a downturn and chaos due to the collapse of centralized entities, UST, and a well-known crypto hedge fund, users are still actively trading on the 1inch Network. Despite the market decline, the increase in trading volume on 1inch indicates that users strongly desire to adjust their investment portfolios to withstand the market conditions. 1inch has proven its value to users during a challenging economic environment by consistently growing its trading volumes.

1inch Key Statistics 

  • Total earnings for 2022-’23: $12.5 million
  • Total volume 2022-’23: $175.1 million. 
  • 1inch has approximately 4.9 million users, accommodating 54,300 users per day.
  • 1inch’s Market cap is $377.2 million and ranked 110th out of all 8,819 active cryptocurrencies listed on CoinMarketCap.


Source: Ailtra

dYdX

dYdX has established itself as a leading decentralized exchange platform globally, supporting over 35 cryptocurrencies. Founded by Antonio Juliano, a California-based entrepreneur and former Coinbase engineer, in July 2017, the platform provides various services such as trading, lending, and borrowing and initially operated on the Ethereum Layer-1 network. dYdX also introduced its native currency, DYDX, in August 2017.  

The company is widely acclaimed for its cross-margin perpetual trading, making it a comprehensive hub for decentralized financial transactions. As a DEX offering derivatives, dYdX was an early mover, rolling out its first perpetual swap (perp-swap) offering in 2020. Three years later, most DEX trading activity is still on spot-trading venues. The leading exception is dYdX.

The high trading volume on dYdX can be attributed to two significant developments in 2021. Firstly, dYdX migrated from the Ethereum mainnet to utilize layer-2 rollups powered by Starkware, resulting in faster and more affordable transactions. Additionally, introducing the dYdX protocol token boosted the platform. It is a governance token that allows the dYdX community to own and govern the protocol truly, aligning incentives between traders, liquidity providers, and broader stakeholders. These enhancements, known as dYdX v3, have contributed to a substantial increase in trading activity, with the number of listed pairs growing from 3 to over 30.

In June 2022, dYdX v3 was replaced with a new version, the dYdX v4. The dYdX Chain (currently on the public Testnet from Sept. 2023) marks a significant milestone in the company's development as it shifts towards a decentralized, community-driven model. Leveraging the Cosmos SDK, dYdX creates a transparent and trustless central order book exchange governed by validators and stakers. The ratio of fee distribution will be determined by on-chain governance, ensuring that holders of the dYdX token will receive a share of the fee revenues. 

In a move towards true decentralization, dYdX Trading Inc. and other central parties will not have access to trading fees on dYdX V4, as promised by the core team in their January 2022 announcement. It’s interesting to note that considering the recent market downturn, the exchange has seen volume and revenue while focusing on development, which can help the platform grow when the activity returns in the crypto market. dYdX currently sits at #1 of the DEX listings on CoinMarketCap.

dYdX Key Statistics 

  • dYdX’s semi-annual report states that dYdX’s trading volume has surpassed $230 billion, with a daily volume of $1 billion. The v3 platform recently exceeded $1 trillion in cumulative trading volume.
  • dYdX has generated $71.1 million in revenue in 2023 to date. 
  • dYdX’s user base is over 60K, with 1.8K active daily users. 

Successful Crypto Exchanges Have A Community-First Ethos

The backbone of a thriving cryptocurrency exchange lies in its dedicated community. Beyond the utility of its token and the services provided by the exchange, the involvement and support of its community are crucial in fostering the widespread adoption of cryptocurrency. Crypto communities have become instrumental in promoting digital assets and driving mainstream adoption worldwide.

Some projects and exchanges in the industry have taken a community-first stance. This shift has led to the rise of community-driven initiatives, where open communication and shared decision-making are the cornerstones of project development. By placing the reins in the hands of the community, developers can harness the collective power of the crowd, fostering a spirit of collaboration and shared ownership. This emphasis on community building has, in turn, given rise to the creation of social networks explicitly tailored to the needs of the crypto community.

Thomas Prendergast, the founder and CEO of Markethive, firmly believes that community-driven approaches will shape the future of businesses. Markethive, a pioneering social market broadcasting platform built on blockchain technology, is set to launch its cryptocurrency, Hivecoin (HVC), on the crypto market. Moreover, the company offers a unique opportunity to early adopters through its Founders Token, representing the ILP and allowing them to be a part of the emerging Markethive ecosystem and share in its value and revenue.

The Markethive system fosters community engagement and growth by recognizing and rewarding contributors who share a common purpose. By leveraging the collective enthusiasm of like-minded individuals, we can create a self-sustaining ecosystem that benefits its members and extends its impact to the broader communities they are a part of. This approach will have a transformative impact on our professional and social lives and unlock unforeseen opportunities. 

So, the next logical step for Markethive, with all its ducks in a row, is to embark on a project that will complete its ecosystem: a decentralized crypto exchange. 


Image: Markethive.com

Markethive Crypto Exchange: It just makes sense. 

Thomas has a clear vision for Markethive's next venture: a cutting-edge crypto exchange that leverages the platform's unique strengths, including innovative inbound marketing strategies, blogcasting capabilities, dynamic social engagement, and community-driven support. This new endeavor is a natural progression for Markethive, allowing it to expand its reach and provide users with a seamless trading experience that integrates the platform's proven features.

The decentralized crypto exchange will be a separate offshore company collaborating with Markethive that can offer a strategic partnership that includes integrated traffic and a built-in community, gamification, promotional support for new coin listings, press releases, and custom articles to create a dynamic trading platform. The exchange will also provide automated memberships, airdrops, and promo codes to encourage sign-ups, all of which will be supported by a vast and engaged community that can help promote and establish new coins on the exchange, potentially attracting millions of interested users to Markethive.

Markethive's new exchange will significantly benefit all E1s and community members with ILPs as that membership represents revenue, which increases Markethive's revenue. So even if you’re not in an ownership position with Markethive’s new exchange, the exchange is a revenue engine for Markethive and will drive the membership in Markethive into the stratosphere and thereby increase the revenue so it is to everyone’s benefit. It will increase the value of your Hivecoin and produce revenue to fund the ILPs. This fulcrum will send Markethive into another realm, becoming a giant in the crypto exchange industry, and will solidify Markethive's position as a leading ecosystem. 

The emergence of a multi-polar world is evident, with the growing influence of the BRICs and the potential for others to offer similar solutions. This shift presents an opportunity for Markethive to establish itself as a neutral and apolitical platform capable of facilitating cross-border transactions without the constraints of sanctions or political allegiances. By operating offshore, its crypto exchange can enable the seamless exchange of payments from all countries, promoting financial inclusion and accessibility for the benefit of people worldwide.

Markethive offers a refuge from the harmful strategies of authoritarianism, which persist in threatening the stability of nations worldwide. As an alternative economic system, we are committed to promoting individual freedom and autonomy, in contrast to the oppressive and centralized control advocated by fascist and communist ideologies. Our goal is to empower individuals and communities rather than submit to the dictates of a single, all-powerful authority.

Markethive is set to revolutionize the cryptocurrency exchange landscape by inviting its community members to participate in this groundbreaking project. By engaging its community in this innovative endeavor, Markethive aims to offer an unparalleled opportunity for involvement at an unprecedented low cost, promising remarkable rewards. Stay tuned for more updates on this exciting development.

Join us on Sundays at 10 am MST as we reach new heights in revenue-generating integrations. Be a part of the excitement and witness the cutting-edge technology and innovative concepts of Markethive firsthand. Get your questions answered and participate in the conversation as we work together to create the ultimate ecosystem. Don't miss out – join us in the meeting room. The link to this can be found in the Markethive Calendar.
We look forward to seeing you there!

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Online Safety 101 How to Keep Cyber Snoopers at Bay

Online Safety 101: How to Keep Cyber Snoopers at Bay

Have you ever paused to reflect on those emails from your bank urging you to update your information or the seemingly innocent act of connecting to your favorite coffee shop's Wi-Fi for a quick cup of joe? In the vast landscape of our digitally connected lives, have you ever entertained the thought of whether someone might be eavesdropping on your conversations?

In the contemporary world, where our daily routines intertwine seamlessly with digital communication, safeguarding the security and privacy of our online interactions has assumed a position of unparalleled significance. Alas, the challenge persists as cybercriminals continuously evolve, devising innovative methods to exploit vulnerabilities within our digital systems. Among these threats, the man-in-the-middle attack stands out as a particularly sophisticated and menacing technique, posing a substantial risk to the integrity of our digital security.

In this article, we explore the man-in-the-middle attack, unraveling its intricate workings, understanding its far-reaching implications, and, most importantly, arming ourselves with knowledge on how to shield against this pervasive cybercrime. Join us on this journey as we delve into the nuances of digital security and equip ourselves with the tools to navigate the ever-evolving landscape of cyber threats.


Source: Imperva.com

What is a Man-In-The-Middle Attack?

Imagine a scenario where your digital conversations aren't as private as you think; that's the unsettling reality of a man-in-the-middle (MITM) attack, a serious cybersecurity threat more pervasive than we might realize. In this digital battleground, an attacker sneaks into the communication channel between two unsuspecting parties, much like a sneaky postal worker sorting through your mail.

The term "man-in-the-middle" is fitting because, just like that rogue mailman, the attacker plants themselves right in the middle of the communication flow. It's akin to this mail mischief-maker intercepting your bank statement, jotting down your account details, and then sealing the envelope back up before it reaches your mailbox. The victim remains blissfully unaware of this intrusion.

So, why is this cyber maneuver so dangerous? Well, imagine the rogue mailman stealing not just your bank statement but also your login credentials, credit card numbers, and other personal details. That's what happens in an MITM attack. The attacker gains access to sensitive information, opening the door to identity theft, unauthorized fund transfers, and other malicious exploits.

What makes MITM attacks particularly treacherous is their stealthy nature. They can lurk undetected for long periods, silently pilfering information. It's like a silent invader setting up camp in your digital space without you even realizing it. Worse yet, these attacks can introduce malware onto your device, giving the attacker complete control over your system.

MITM attacks come in various shades, from the passive ones, where the attacker slyly intercepts user traffic, to the active ones, where the attacker actively manipulates or alters the data flow. It’s like different tactics in a cyber playbook – IP spoofing, DNS spoofing, HTTPS spoofing, and email spoofing, each with its own crafty strategy.


Source: ReadyTechGo.com

Interception

Have you ever gotten a sketchy message from an unknown number posing as your bank or an enticing email from a supposed unfamiliar angel promising a piece of his fortune? These seemingly harmless messages might just be the tip of the iceberg regarding a man-in-the-middle (MITM) attack, a favorite trick in the cyber criminal's playbook, where sensitive information is stolen from the unsuspecting victim.

So, what's the deal with interception, and how does it play into the whole MITM drama? Interception is like a digital sleight of hand with which the attacker slyly intercepts your online traffic before it reaches its intended destination. In the MITM attacks, the cyber trickster strategically positions themselves between two chit-chatting parties to either sneak a peek or slyly tweak the data passing between them.

The more straightforward and common form of MITM interception is where the attacker sets up a free Wi-Fi hotspot, maybe with a sneaky name like "CoffeeShop_FreeWiFi," and lures unsuspecting victims. Once connected, the attacker gets a backstage pass to all the victim's online data exchanges, kind of like a digital puppet master pulling the strings.

The attacker can spoof your IP and trick your computer into thinking it's hitting up a legitimate website when, in reality, it's a detour to the attacker's lair. Another move is DNS spoofing, where the attacker messes with your computer's GPS, sending it to the wrong digital address, aka their server, instead of the real deal. And who could forget HTTPS spoofing? This is like setting up a fake secure website, inviting victims to input their sensitive info, and then snatching it up like a digital pickpocket.

Email spoofing is another player in the MITM game. The attacker crafts an email that looks legit, maybe even mimicking a trustworthy source, to lull victims into a false sense of security. Once the victim bites, the attacker swoops in to nab the sensitive data. Here's the kicker: in all these cyber theatrics, the attacker stays incognito, a ghost in the machine, intercepting and manipulating data without the communicating parties having a clue. They might even drop malware on a targeted user's device, making themselves right at home.

Decryption

Alright, let's unravel the second act in the drama of a man-in-the-middle attack, which is decryption. Now that the digital trickster has nabbed the data sailing between two parties, it's time for the grand reveal. Decryption, in simple terms, is like translating a secret code back into something understandable. 

In the wild landscape of a man-in-the-middle escapade, decryption is the secret sauce that turns the jumbled-up, encrypted data back into its original, readable form. Now, why is this a big deal? Well, it's the key to unlocking a treasure trove of sensitive info – think login credentials, financial details, and personally identifiable information (PII). The attacker unleashes this process to expose what was meant to be private and secure.

One classic thing the attacker does is known as the packet sniffer. A virtual detective captures and dissects the data zipping across the network. It's like intercepting letters and reading them before they reach the recipient. Sneaky, right? Then there's the brute-force attack, a cyber brute trying every password combination until it hits the jackpot. It's like trying every key in the bunch until one finally opens the door. Another trick up the attacker's sleeve is the rainbow table attack, which is a cheat sheet of pre-computed encrypted passwords, speeding up the process of finding the original password. It's the cyber equivalent of having a master key.

But why should we care about decryption? Well, if the attacker succeeds, they waltz right into sensitive information territory. This can lead to identity theft, fraud, and other malicious endeavors. Plus, decryption is like the golden ticket for installing malware on a targeted user's device, the cyber version of an uninvited guest overstaying their welcome.

Prevention

Now that we've uncovered the ins and outs of man-in-the-middle attacks and how these sneaky maneuvers go down let's arm you with the knowledge to steer clear of falling victim to them. Lucky for us, there are several effective methods to keep these digital tricksters at bay. Let's dive into some savvy ways to keep yourself in the clear:

1. Embrace the Power of VPNs:
Think of a Virtual Private Network (VPN) as your digital superhero cape. It encrypts all your internet traffic and guides it through its own secure servers. Even if an attacker tries to intercept your data, they'll just be staring at a wall of encryption. It's like sending your online messages in an unbreakable code.


Source: Markethive.com

2. HTTPS and SSL/TLS:
This dynamic duo of HTTPS and SSL/TLS transforms your internet communication into a secret language. When you visit a website using HTTPS, just like Markethive does, your browser locks arms with the website's server in a secure handshake. An attacker attempting to eavesdrop finds nothing but encrypted gibberish. It's like turning your online conversations into an encrypted treasure chest.

3. Safeguard with Email and DNS Security:
Email and DNS can be the Trojan horses of MITM attacks, but fear not! Strengthen your defenses with email security tools like SPF, DKIM, and DMARC to verify the legitimacy of your emails. For DNS, enlist the help of a secure resolver to ensure your DNS requests aren't being intercepted. It's like adding an extra layer of protection to your digital communication channels.

Sender Policy Framework (SPF), DomainKeys Identified Mail (DKIM), and Domain-based Message Authentication, Reporting, and Conformance (DMARC) are email security tools that can help you protect your emails from spoofing, phishing, and spam. They work by verifying the sender’s identity and the integrity of the email content.

4. Double Down with Two-Factor Authentication (2FA):
Think of 2FA as having a bouncer at the entrance to your digital party. It requires a password and a second form of verification, like a code sent to your phone. This tag team ensures that only you get VIP access. It's like having a secret handshake for your online accounts.

5. Arm Yourself with Anti-virus Software:
Consider anti-virus software as your digital bodyguard. It scans, detects, and blocks potential threats, acting as a shield against MITM attacks. Keep it up-to-date to stay one step ahead of the cyber baddies.

6. Keep Software Updated:
Updating your software is like giving your digital fortress a fresh coat of paint. Hackers often exploit vulnerabilities in outdated software, so ensure your operating system, web browser, and other applications are rocking the latest security patches. It's like fortifying your defenses against unseen invaders.

It's essential you understand that by weaving these prevention methods into your digital routine, you significantly reduce the risk of becoming a victim of a man-in-the-middle attack. Remember, an ounce of prevention is worth a pound of cure. So, gear up, stay vigilant, and keep the online baddies at bay!

Detecting a Man-In-The-Middle Attack

Detecting a man-in-the-middle attack can be subtle, but it’s important to stay alert. The first sign something’s off will likely be a slowdown in internet or network speed. If you notice it taking longer than usual to load pages, watch out; you might be under attack. The next sign is a pop-up error message. These error messages can appear for several reasons, but if the error message says, “The security certificate presented by this website is not secure,” that’s a red flag. An improper security certificate is a definite sign that the website is not secure and may have been compromised.

Network Monitoring is essential in detecting a man-in-the-middle attack. Network monitoring tools come in various shapes and sizes. They keep track of network traffic, identify traffic patterns, and check for suspicious behavior. SSL Certificate Warnings are some of the most common ways web browsers detect a Man-in-the-Middle Attack. 

When attempting to visit a website with an invalid certificate, the browser warns its user of its dangers, often citing the risk of middleman attacks. Suspicious Network Activity is another sign. If your network administrator or ISP has monitoring tools in place, unusual network activity can quickly raise a red flag. DNS Spoofing Detection Tools can help detect DNS hijacking and monitor suspicious activity on your network.

It's always best to have multiple lines of defense when trying to detect a man-in-the-middle attack. Using a combination of techniques and tools is key to recognizing suspicious activity before it's too late. Remember, prevention is always the best defense. Staying vigilant and using the preventive measures outlined in the previous section is vital. 

Examples of Man-In-The-Middle Attacks

As you might have figured out by now, man-in-the-middle (MITM) attacks are pretty dangerous. They are used to steal sensitive information from various targets, including users of financial applications, e-commerce sites, and SaaS businesses. Such attacks can also gain entry into a secure network by installing malware on a user's device.

But let's dive deeper and look at some real-life instances of man-in-the-middle attacks that have occurred. In 2010, an Iranian hacker used a man-in-the-middle attack to access the Gmail accounts of several high-profile individuals, including US government officials and journalists. The attacker created a fraudulent security certificate for Google services, which allowed them to intercept email communication.

DigiNotar, a Dutch certificate authority that the hacker compromised, issued the security certificate. The hacker bypassed the HTTPS encryption that usually protects the communication between a user and a website. The hacker also used a technique called DNS spoofing, which involves changing the DNS records of a domain name to point to a malicious server. This way, the hacker could redirect the users to a fake Google website that looked identical to the real one but was under the hacker’s control.

In 2011, at a Black Hat conference, a researcher named Nicholas Percoco and his colleague Christian Papathanasiou showed how easy it was to run a man-in-the-middle attack on mobile devices running iOS and Android. The attack involved intercepting data packets between a mobile device and a wireless access point using a tool called SSLstrip.

SSLstrip is a tool that can downgrade HTTPS connections to HTTP connections and strip away the encryption that normally protects the communication between a user and a website. The tool can also modify the content of the web pages that the user sees, such as replacing the padlock icon with a fake one or inserting malicious links or scripts.

The researchers demonstrated how they could use SSLstrip to hijack a user’s Facebook session, steal their login credentials, and post messages on their behalf. They also showed how to intercept a user’s email communication, read their messages, and send spoofed emails. They also revealed how to access a user’s online banking account, view their balance, and transfer money to another account.

One of the most widespread man-in-the-middle attacks in recent times is the "Superfish" incident. Lenovo shipped its laptops with adware called "Superfish," designed to serve targeted ads to users. However, Superfish was designed to intercept HTTPS traffic, leaving users vulnerable to MITM attacks.

Another example of a widespread MITM attack is the WannaCry ransomware attack that took place in 2017. The WannaCry ransomware was propagated via a vulnerability in Windows systems and encrypted users' files, demanding a ransom for decryption. This sophisticated ransomware attack attacked several government agencies, businesses, and individuals worldwide. 

While most man-in-the-middle attacks aim to steal user data, some use MITM attacks to target companies and individuals. For instance, during the Syrian civil war, the SEA (Syrian Electronic Army) carried out a targeted MITM attack against the Associated Press (AP) Twitter account. The SEA used the account to post fake news about an explosion at the White House, causing a significant drop in the stock market. While man-in-the-middle attacks might not be new, the stakes are increasing with new technologies such as Artificial Intelligence. So, it's crucial that you stay informed of such attacks and take the necessary precautions to protect your data.


Source: Cyber Security News

Security analysts discovered one recent incident of an MITM attack in April 2023. The attack targeted Wi-Fi networks and could bypass their security mechanisms. The attacker operated by imitating the genuine access point and transmitting a forged Internet Control Message Protocol (ICMP) to redirect the message to a targeted supplier. ICMP is a protocol used to send error messages and other information between network devices.

A redirect message is an ICMP message that tells a device to use a different route to reach a destination. By sending a forged redirect message, the attacker could trick the device into sending its traffic through a malicious router, where the attacker could intercept and modify it. This way, the attacker could hijack any device's traffic connected to the Wi-Fi network and perform various malicious activities, such as stealing passwords, injecting ads, or redirecting users to phishing websites.

Conclusion

So, we know these attacks are dangerous and can happen to anyone, anywhere, at any time. From intercepting personal information to potentially installing malware, cybercriminals will stop at nothing to get what they want, which is why it's so important to be aware of the risks posed by man-in-the-middle attacks.

We've gone over a few key steps to prevent becoming a victim, like using a VPN, HTTPS, SSL/TLS, email and DNS security, and two-factor authentication. It's also essential to keep your software up-to-date and be aware of suspicious network activity. But even with these precautions, it's not always possible to avoid a man-in-the-middle attack, so it's important to know how to detect one if it does happen.

Whether it's noticing strange SSL certificate warnings or monitoring network activity, early detection can be the difference between a minor inconvenience and a major data breach. And while it's easy to feel overwhelmed by the thought of cybercriminals lurking around every corner, being aware of the risks posed by man-in-the-middle attacks is the first step toward protecting yourself. 

Remember, attacks like these can happen to anyone. Still, you can minimize your risk and stay safe in an increasingly dangerous digital world by remaining vigilant and taking the necessary precautions. So, whether you're shopping online, checking your bank account, or browsing the web, remember to stay alert, stay safe, and watch for those pesky man-in-the-middle attacks. After all, when it comes to online security, a little awareness can go a long way to save you from disaster.

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

How Do Crypto Exchanges Generate Revenue Even In A Turbulent Market?

How Do Crypto Exchanges Generate Revenue Even In A Turbulent Market?

Cryptocurrency exchanges have demonstrated remarkable resilience during market downturns, unlike institutional investors and individual traders. This is attributed to their role as market makers, fostering trader and institutional activity, and charging fees for their services. This article will outline the financial performance of crypto exchanges, exploring their primary revenue streams and the intricacies involved in generating profits through these means.

According to a financial services consultancy Opimas report, cryptocurrency exchanges made $24.3 billion in global trading revenue in 2021. This is the first time that the revenue generated by cryptocurrency exchanges has exceeded that of traditional stock exchanges such as the New York Stock Exchange and the Nasdaq.

The revenue generated by cryptocurrency exchanges was estimated to have increased by 7X compared to the $3.4 billion in sales reported in 2020. Moreover, it was found that the revenue from these exchanges surpassed that of traditional securities exchanges by approximately 60%, which totaled around $15.2 billion.

In just one year, there has been a significant change in the revenue dynamics between traditional exchanges and cryptocurrency exchanges. Previously, well-established and respected entities such as the New York Stock Exchange, Nasdaq, Deutsche Borse, and CME were generating 4X more revenue compared to their crypto counterparts. However, the tables have turned, as Binance has left these traditional exchanges far behind in performance and growth.


Source: Marketwatch

What Is A Crypto Exchange?

A cryptocurrency exchange is an online platform where individuals can trade different digital currencies, either for other cryptos or traditional fiat currencies. These exchanges provide an alternative method for obtaining cryptocurrencies, aside from methods such as mining or receiving them through airdrops. Some well-known examples of cryptocurrency exchanges include Binance, Kraken, Coinbase, HTX (formerly Huobi Global), and OKX (formerly OKEx). 

Cryptocurrency exchanges have become lucrative businesses, with some valued in the billions of dollars. The surge in interest in digital currencies has resulted in a significant increase in their valuations and revenues. Coinbase and Binance are two examples of crypto exchanges that have benefited from this trend. But have you ever wondered how these exchanges generate their substantial income? Below are some overt ways in which a crypto exchange creates revenue. 

Trading Commission and Withdrawal Fees  

Crypto exchanges generate profits by calculating the difference between their income and operating expenses, such as maintenance, promotion, support for liquidity levels, and taxes. The primary source of income for these exchanges comes from trading commissions charged to users (traders) for every transaction. When a trade occurs, which involves closing two opposing orders (one selling, the other buying), the exchange collects a commission from both the seller's and the buyer's orders. 

For example, the exchange takes a commission from both sides with a trading commission rate of 0.1% of the order value. However, if an order is executed externally, the exchange only charges a commission from one side of the transaction.

An Active User Base is Crucial

It’s important to note for an exchange to generate revenue through trading commissions and profits, it must cultivate a thriving trading environment, which hinges on having a substantial number of active users. While tools like market makers and trading bots can help stimulate activity, they cannot replace the value of genuine traders who facilitate the exchange of assets and generate commissions.

The number of active users (AU) is a vital metric in assessing a cryptocurrency exchange's revenue-generating capabilities. Although financial information in the cryptocurrency exchange domain is limited, examining available data points, such as the number of active users, can provide valuable insights.

Over recent years, cryptocurrency exchanges have been raking in substantial profits, with Binance being a prime example. According to publicly available data, Binance has generated over $1.8 billion in trading revenue since the beginning of 2021, thanks to its 28.6 million active users. The exchange's peak trading volume for the year reached an impressive $76 billion, with commissions ranging from 0% to 0.50% depending on the volume of transactions.

It’s worth noting the figures and the time when the cryptocurrency market reached its lowest point in 2018. During that period, only 313,000 users were engaging in trading on Binance. Despite being deemed relatively low activity, the popular exchanges still managed to generate substantial profits, with Binance making $446 million. While this number may not be as impressive as the most recent data, it effectively illustrates the ability of exchanges to survive even during challenging periods.

Additionally, a crucial factor to consider is the typical trading volume of a single active user. It's reasonable to assume that the higher this amount, the greater the commission the exchange earns. However, what truly matters is the volume of trades conducted by genuine active users rather than the total trading volume, which automated trading bots can inflate to the tune of 70% or more.

Withdrawal fees are also a source of revenue for crypto exchanges. The withdrawal fee amount is influenced by several factors, such as the type of asset being withdrawn, the amount of funds being transferred, and the transfer method. Some trading platforms charge a fixed withdrawal fee, while others, usually lesser-known and newer crypto exchanges, do not charge this fee to attract new users. However, it's worth noting that charging a deposit fee is not recommended, even for well-established platforms, as it can discourage users from using the platform.

Listing Fees for New Cryptos

Fees for listing a new cryptocurrency on major exchanges range from $2 million to $5 million, with some exchanges charging as high as $10 million to 15 million. The listing price varies depending on the specific project, considering factors such as the desired service package, which could include marketing support or technical assistance. There is no standard fee for listing as it is determined on a case-by-case basis.

For cryptocurrency projects looking to expand their reach, being listed on a well-established platform can increase visibility and access to a broader pool of investors. This often leads to accelerated growth for these coins. Interestingly, some prominent cryptocurrency exchanges choose to either hide or openly express their hesitation to list lower-quality coins, often referred to as "shitcoins," on their platform.

Market Making

The Market Making (MM) function ensures that traders can execute their orders seamlessly and at competitive prices, even when there may be a lack of liquidity. This is achieved by providing additional liquidity and maintaining a stable price range, thereby preventing price gaps and ensuring that buy and sell orders can be matched without delay. For instance, if a trader wants to sell an altcoin on an exchange with low trading volume, the MM function will instantly purchase the asset, executing the sale without any issues.

Customers may have the misconception that regular traders swiftly complete transactions. However, the reality is that market makers are the ones who acquire orders for subsequent resale. These market makers are accessible on every platform and provide assurance of liquidity. Conversely, if traders were to find themselves in the opposite situation, they would have to wait weeks before encountering a buyer.

Margin Trading 

Trading on margin, also known as leverage, allows traders to borrow funds from the exchange in order to amplify their buying ability. This strategy offers the potential for greater profits, but it also comes with increased risks. However, it is important to note that if a trader's prediction fails, they are not necessarily left in debt.

The leverage provided by the exchange allows traders to increase their order size. Traders are protected from losing more than they have, and the exchange is not at risk of failure. For instance, if a trader has $10,000 in their account and decides to purchase bitcoin with 5X leverage, they can buy bitcoin worth $50,000. Suppose the Bitcoin price drops and becomes more affordable. In that case, the exchange typically stops at the trader's initial $10,000 investment and alerts them with a margin call, or the opposite can also happen.

Earning Services

Cryptocurrency exchanges can profit by offering services that enable users to earn money. These services include staking, lending, and a crypto marketplace. Staking involves users locking their cryptocurrencies in a wallet to help sustain the operations of a blockchain network. Through this process, they become part of the network's consensus mechanism and receive rewards in exchange. The exchange generates income by charging a fee or taking rewards earned from staking the delegated coins.

Cryptocurrency lending allows users to loan their digital assets to other individuals or organizations, earning interest on their investments. Exchanges play a crucial role in facilitating these transactions, connecting lenders with borrowers, and overseeing the process to ensure its success. In return for their services, exchanges collect fees or take a portion of the interest lenders earn, generating revenue for their platform.

Cryptocurrency exchanges can also offer a platform for users to buy and sell assets, known as a crypto marketplace. This marketplace allows users to trade digital assets such as NFTs, cryptocurrencies, and more traditional products like Bitrefill gift cards and phone refills. The exchanges generate revenue by charging trading fees, a percentage of the transaction volume, or a fixed amount per trade.

Token Launchpad

Exchanges generate revenue from token launchpads through listing fees, which projects must pay to launch their tokens on the exchange's platform. This fee covers costs such as due diligence, legal compliance, technical integration, and marketing efforts to promote the token sale. The listing fee structure can vary between exchanges and depends on the project's size or requirements, with some exchanges offering tiered pricing.

Exchanges may also secure supplementary revenue-sharing arrangements with projects besides listing fees. This can include receiving a portion of the tokens allocated to the exchange as part of the token distribution or obtaining a percentage of the project's future revenues. These agreements can generate recurring revenue streams for exchanges, particularly if the project becomes successful and generates significant income.

In addition, token launchpads provided by exchanges can offer extra benefits to projects, such as marketing assistance, consulting, managing the token sale, and technical support. By charging fees for these additional services, exchanges can generate extra revenue and offer a complete package to aid projects in successfully navigating the token launch procedure.

It is essential to mention that token launch platforms also have advantages for exchanges by drawing in new users and boosting trading activity. When token launches are successful, trading volume often rises as investors trade newly listed tokens. This increased trading activity generates fees from transactions.

Additional Services that Complement Each Other

Crypto exchanges can also generate revenue through complementary services such as connected games or decentralized applications (DApps). By partnering with game developers, exchanges can offer the necessary infrastructure, liquidity, and access to their user base. In return, they can earn a percentage of the transactions or fees generated within these games. This mutually beneficial revenue-sharing model encourages user engagement and promotes growth within the ecosystem.

Cryptocurrency exchanges can team up with prepaid card issuers to provide users with debit cards or prepaid cards connected to their exchange accounts, enabling them to use cryptocurrencies for real-world transactions. This collaboration can generate revenue for exchanges through card issuance fees, transaction fees, or revenue sharing with the prepaid card provider. By incorporating cryptocurrencies into everyday spending, this integration promotes the broader use of cryptocurrencies and contributes to its increased adoption.

Premium Services and Referral Programs 

Certain crypto exchanges provide premium subscription options to expand their income sources, granting users exclusive access to distinct features and advantages. These exchanges offer different paid monthly subscription levels, with benefits such as lower trading fees, higher interest rates on cryptocurrency lending, and increased limits for buying and withdrawing funds.

An instance of this is Coinbase's offering, Coinbase One, which requires a monthly payment of $29.99 in exchange for no trading fees, access to advanced trading tools, increased staking rewards, and priority support. These subscription options are aimed at experienced users, traders, and institutions who engage in frequent transactions and wish to optimize the advantages available to their accounts.

Additionally, numerous crypto exchanges also pay existing users commissions for referring new customers. These referral programs are created to incentivize users to recommend the platform to colleagues and followers on social media or other channels. For instance, Binance provides a beneficial referral program with multiple levels, granting up to 40% in ongoing commissions based on the trading fees of referred users. Coinbase has its own referral program, rewarding $10 in Bitcoin for every new user referred.

Although referral programs may diminish potential revenue, the advantages of acquiring new customers through such programs outweigh the costs for exchanges. Attracting fresh, engaged traders is pivotal in boosting transaction volume and associated fees.


Key Players in Crypto. Source: Statista Market Insights

Important Insights

The key takeaway is that an exchange needs active users who generate a steady income through trading activities. The more users a platform has, the higher the volume of trading commissions, resulting in a more stable financial situation. It’s also advantageous that many exchanges have weathered the market downturns with style, grace, and dignity.  

The popularity of cryptocurrency trading platforms has skyrocketed in recent years, with millions globally utilizing these exchanges to buy, sell, and trade digital assets. According to recent studies, the global revenue in the crypto market was valued at $18.5 billion in 2022 and is projected to reach $64.9 billion by 2027, with an impressive compound annual growth rate (CAGR) of 14.40% between 2023 and 2027.

The cryptocurrency market is primarily controlled by centralized exchanges (CEX) that enable users to buy and sell cryptocurrencies quickly, efficiently, and securely. Nevertheless, decentralized exchanges (DEX) are gaining traction as they give users more autonomy over their assets and eliminate the need for intermediaries, offering a more secure and independent trading experience.

The success of cryptocurrency trading platforms will hinge on their versatility in response to shifting market dynamics. As the global crypto user base has grown to 673.90 million in 2023 and is projected to increase to 994.30 million by 2027, exchanges must demonstrate agility in the face of unpredictable market fluctuations and embrace new trends as they emerge. 

In the upcoming article, we'll take a closer look at the leading crypto exchanges, their revenue streams, and their respective peaks and valleys. Additionally, we'll explore the realm of decentralized exchanges and how various cryptocurrency businesses demonstrate their ability to transform limited resources into thriving ventures at an impressive pace.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Also published @ Substack.com; BeforeIt’sNews.com; Medium; Steemit.com.

The Power Dynamics of A Global Economy: Who Is Ultimately Pulling The Strings?

The Power Dynamics of A Global Economy: Who Is Ultimately Pulling The Strings? 

The question of who controls the global economy can vary depending on one's viewpoint. Some may argue that Mega Banks such as JP Morgan, asset managers like Black Rock, tech giants like Microsoft, or international organizations like the World Economic Forum hold significant influence. However, there is an overarching entity that surpasses these institutions. It is worth noting that these entities share common goals and interests, such as Central Bank Digital Currencies (CBDCs), Digital IDs, and Smart Cities. This alignment is not a mere coincidence.

In this article, we will uncover the true power behind the world's most influential institutions. Surprisingly, it is the United Nations that is orchestrating it all. There seems to be a pattern, so it’s worth investigating as to whether it is the UN pulling the strings. We embark on an eye-opening journey through the hidden depths of global control, where the United Nations takes on the role of puppet master, manipulating events to carry out their sinister agenda. The United Nations presents itself as a symbol of peace and collaboration, but what lies beneath its admirable facade? 

We will delve into the history and purpose of the UN, exploring its origins and transformation into a powerful force with evil intentions. Brace yourself as the manipulation tactics the UN employs, from secret agreements to strategic alliances, are exposed. They have become masters at pulling strings and subtly guiding governments toward their desired goals. 


Image Source: Defenseindepth.co

The Historical Roots

In the early 19th century, a series of relentless wars and conflicts had a profound impact on the global economy. In the aftermath of the Napoleonic Wars, prominent European nations made a concerted effort to establish a prolonged period of peace. This initiative culminated in the creation of the Concert of Europe in 1815, an unprecedented international organization dedicated to preventing member states from engaging in armed conflict. Despite its noble intentions, the Concert of Europe ultimately failed to maintain peace, succumbing to the pressures that led to the outbreak of World War I in 1914.

However, a previous example has been established. Following the war's conclusion in 1918, the authorities decided to once again pursue a period of tranquility with the League of Nations in 1920. What set this attempt apart was that the League of Nations encompassed multiple objectives beyond averting war. Many of these objectives were centered around human rights, including matters such as working conditions. Unfortunately, the League of Nations did not endure as long as its forerunner. It disintegrated when the Second World War commenced in 1939, less than two decades later.

However, the third attempt was more successful. By the conclusion of World War II in 1945, the UN had been established with great efficiency, although its official foundation came a month later. Like its precursors, the UN emerged from the initiative of the ruling nations, of which there were 50 at the time. Nowadays, the UN encompasses practically every country worldwide, comprising 193 nations.

Similar to the League of Nations, the main objective of the United Nations was to maintain peace. Nevertheless, its initial Charter encompassed an extensive range of additional aims to keep member nations engaged. These objectives comprised not only humanitarian endeavors but also the promotion of global collaboration on various other worldwide concerns.

The crux of the matter is that if you purport to have concerns that affect the entire world, then it follows that you must also advocate for solutions that can address these issues on a global scale. However, the only way to achieve such universal solutions is by establishing a unified global authority, which is what the United Nations represents. This logical progression implies that a single global currency and military, among other things, would also be necessary.

In 1948, the United Nations formed its military branch shortly after its establishment. The UN's first peacekeeping mission took place in 1956. Following the end of the Cold War in 1988, the UN's military role evolved to encompass not only controlling tensions within countries but also regulating the population. Notably, the UN recently announced plans to extend its peacekeeping efforts to social media by creating a so-called digital army, which will combat misinformation and disinformation.

At this point, it should be clear that this refers to content those in authority disapprove of. The announcement explicitly mentions that the United Nations' online force will also address any data that hinders the advancement of the Sustainable Development Goals (SDGs).

For those unfamiliar, the SDGs encompass 17 objectives that every member nation is required to achieve by 2030. It is the reason why countries are hurrying to introduce digital IDs, Central Bank Digital Currencies (CBDCs), and smart cities. The SDGs dictate the adoption of these dystopian technologies by 2030, only seven years away. With time running out, the UN and its associated organizations are striving to expedite their implementation.

The question arises as to who has control over the United Nations. In order to provide an answer, it is necessary to comprehend the functioning of the UN. As the UN is commonly known as an international organization, its different divisions are often called organs. The UN is composed of six organs, namely the General Assembly, the Security Council, the Economic and Social Council, the Secretariat, the International Court of Justice, and the Trusteeship Council.


Image source: Blogger

The Roles Of The Six Organs 

There’s not much worth noting about the International Court of Justice except that it’s the sole United Nations entity not headquartered in New York City. Regarding the Trusteeship Council, its purpose was to facilitate the attainment of sovereignty for nations, but it ceased operations in 1994. 

In any case, the United Nations General Assembly comprises 193 member nations. Representatives from these countries convene annually in September to engage in deliberations and voting on resolutions. Resolutions of great importance necessitate a 2/3 majority approval, while less significant resolutions require a simple majority (over 50%). 

Moving on to the Security Council, it consists of 15 countries, with five permanent members and ten rotating members who change every two years. The permanent members are France, Russia, China, the United States, and the United Kingdom, which were the victorious nations of the Second World War.

The United Nations Security Council's five permanent members hold the authority to veto significant resolutions, a contentious issue because it enables these countries to dismiss any UN decisions that negatively impact them. Although Russia's use of veto power has garnered significant attention, it was the United States that insisted on veto power in exchange for its membership in the UN. It is believed that the veto will remain an integral part of the Security Council, as removing it would require the United States and its allies to relinquish their own veto power.


Image Source: Statista 

It is essential to be aware that the United States attempted to obtain a resolution from the United Nations to justify its invasion of Iraq following the 9/11 attacks. Despite the rejection of this resolution by the United Nations, the US proceeded with the invasion anyway, contributing to a complex and controversial struggle for dominance on the global stage, with no party emerging untainted from the conflict.

The United Nations' administrative organ, the Secretariat, plays a crucial role in the creation, passage, and enforcement of UN resolutions. The leader of the Secretariat, known as the Secretary-General, is selected by the Security Council and elected by the General Assembly for a five-year term. Interestingly, while there's no limit on the number of terms a Secretary-General can serve, none have stayed in office for more than two terms – yet.

However, the past records of selecting Secretariat officials expose the individuals in control. It appears that the UN underwent a significant transformation in the early 1990s. It is important to note that the approval of resolutions necessitates a 2/3 majority vote or a simple majority vote. It should be clarified that every member nation holds an equal vote in this procedure, regardless of their contribution level to the UN.

The implications of this go beyond what you might initially think. The country with the most sway over other nations can effectively control the United Nations, which has major consequences. In the 1990s, it seemed like the developing world was gaining momentum, and the US and its allies were not pleased with this shift in power dynamics.

During the early 1990s, the United Nations Secretary-General was Boutros Boutros-Ghali, a representative from Egypt. However, the United States strongly opposed his leadership and went so far as to offer him a nonprofit foundation in exchange for his resignation. Despite the offer, Boutros-Ghali refused to resign and was subsequently denied a second term (vetoed by the US) even though most member countries had supported his return. Since then, the United States has exerted significant influence over the selection of subsequent Secretary-Generals, ensuring that they have been aligned with American interests.

Kofi Annan, a Ghanaian diplomat, succeeded Boutros-Ghali. He also introduced the Millennium Development Goals (MDGs) before the Sustainable Development Goals (SDGs) were established. Notably, he drafted the original letter that spawned the concept of Environmental, Social, and Governance (ESG) investing in 2004. Interestingly, the SDGs heavily influenced the criteria for ESG. Moreover, Antonio Guterres, the current Secretary-General from Portugal, actively promotes the SDGs. He has played a crucial role in advocating for digital IDs, central bank digital currencies (CBDCs), and smart cities.

Unelected and unaccountable international organizations advocating for the interests of both private and public sectors, including large corporations and governments, are driving the development of these dystopian technologies. For example, the World Economic Forum (WEF) collaborated with the UN to expedite the adoption of its Sustainable Development Goals (SDGs) using Environmental, Social, and Governance (ESG) measures in 2019. Additionally, entities such as the International Monetary Fund (IMF) and the World Bank, operating under the UN umbrella, represent the public sector's involvement in these efforts.

In organizations such as the WEF, there are influential financial institutions like Bank of America and investment managers like BlackRock who oversee the allocation of funds, making sure that individuals and institutions adhering to ESG principles receive the necessary financing to support the achievement of the SDGs. Additionally, technology companies like Microsoft play a crucial role in developing critical technologies for this purpose.

The World Economic Forum aims to shape the public sector through initiatives like the Young Global Leaders, which identifies and develops future leaders of nations, and Global Shapers, which focuses on cultivating local leaders, including mayors. Additionally, institutions like the International Monetary Fund and the World Bank offer loan programs to developing countries with favorable terms, provided they align with the Sustainable Development Goals and US interests.

Organizations such as the Financial Action Task Force (FATF) have also had a significant impact in this area. Likewise, the International Monetary Fund (IMF) aims to influence the private sector by implementing regulations that lead to centralized systems in developed nations and corrupt leadership in developing nations. This enables developed countries to maintain control over their own populations and also manipulate developing countries. Consequently, very few developing nations have been able to transition into developed nations in the past fifty years.

The current state of affairs has left much to be desired for most of the United Nations member states. Over the past few decades, numerous leaders have taken to the podium at the UN's General Assembly to express their opinions. One of the most notable figures to do so was former Libyan Prime Minister Muammar Gaddafi, who delivered a lengthy and impassioned speech that lasted over 90 minutes in 2008 and even included a dramatic moment where he tore a page from a copy of the UN Charter.


Screenshot: Muammar Gaddafi's speech at the United Nations General Assembly

Since 2011, Libya and North Africa have been in turmoil following the assassination of Gaddafi, allegedly orchestrated by US interests. Hillary Clinton's infamous quote, "We came, we saw, he died," references this event. Considering Gaddafi's demise, it is unsurprising that UN countries have been cautious about challenging the United States. However, this has not prevented other leaders from expressing their views, although they have become more careful in doing so. 

Xi Jinping and Vladimir Putin are particularly notable examples. In recent years, they have refrained from personally attending the UN's annual assemblies, choosing instead to send their top diplomats. The last time they physically addressed the UN's General Assembly was as far back as 2015. Strangely, their speeches appear absent from the UN's YouTube channel, as if they have been deleted.


Image source: United Nations

Covert Operations of the United Nations

NGOs and education systems often work closely with the UN, assisting in various initiatives. These organizations, while seemingly well-intentioned, have a significant presence in society, including our education systems, where they aim to convey their message. It's as if they are gradually influencing how we learn, one classroom at a time. They cover topics like identity politics and climate change, potentially shaping the minds of young learners.

If you look closer at the materials they produce, you might find that they emphasize what to think rather than how to think critically. This raises questions about independent thought when a collective "woke" mindset is seemingly imposed.

The UN has become a master of manipulation, employing a wide array of tactics to advance its agenda discreetly. Behind their polished image, they offer promises of global harmony while quietly working to shape the world to their liking. But how exactly do they pull off this elaborate act? Well, they've honed the craft of charm, coercion, and cleverly concealed power plays. These manipulation tactics are carefully designed to ensure their agenda remains unchallenged.

One of their most favored tactics involves using funding as a strategic weapon. Governments that align with the UN's objectives receive financial aid and international support as a reward. Conversely, those who dare to question the UN's motives may be cut off from vital resources and isolated diplomatically. Their influence extends far and wide, infiltrating and subverting national sovereignty through a web of alliances, treaties, and agreements.

Countries are entangled in a complex web of obligations and dependencies, often unable to make decisions without considering the UN's interests. It's like a colossal chessboard, with the UN skillfully moving the pieces while governments scramble to stay in their good graces. They strategically cozy up to key players and cultivate a network of loyal followers, all while maintaining a facade of impartiality and neutrality.
As for the governments under the UN's influence, the list is extensive, encompassing both developed and developing nations. From superpowers like the United States to smaller countries striving for independence, no one is immune to the UN's puppeteering. How does this connect to the UN's broader agenda? Well, fasten your seatbelt because it's quite a journey. Their ultimate goal is nothing less than global domination, albeit subtly and inconspicuously.

Population control stands out as one of their key strategies. Under the guise of family planning and reproductive health, they promote policies that restrict individual freedom and interfere with personal choices. This is a clever means to manipulate demographics and ensure their vision of a controlled world becomes a reality. But their agenda doesn't stop there. 

Economic manipulation is another tool in their arsenal. By concentrating power and widening the wealth gap, they create a world where a select few hold all the cards, perpetuating the cycle of the rich getting richer and the poor getting poorer.

Climate change has also become a convenient crisis for the UN's objectives. They exploit the fear and concern surrounding environmental issues to push for global regulations and policies. While protecting the planet is undeniably important, it's hard to ignore that the UN leverages it as a tool to advance its agenda of centralized control. And let's not forget about global governance. By eroding national sovereignty and promoting the idea of a new world order, they aim to establish a system where the UN reigns supreme.

But what about freedom of speech and independent media? Well, they might as well be a thing of the past. The UN's influence on media and its inclination for censorship and control directly threaten the fundamental principles of democracy. They dictate what information is disseminated, effectively molding public opinion to align with their agenda. It's as if George Orwell's "1984" has never felt more relevant.

Now, who are the puppeteers behind this grand operation? At the forefront is the Secretary-General, the face of authority but perhaps just another puppet dancing to the UN's tune. Then there's the General Assembly, which should serve as a voice for all but often acts as a rubber stamp for the UN's decisions. And let's not overlook the Security Council, supposedly a protector of nations but frequently serving the UN's interests instead. Behind closed doors, the real power lies within the Secretariat, an intricate web of bureaucrats and administrators who make the strings dance to the UN's tune.

Furthermore, the UN employs the tactics of infiltration and indoctrination as part of its core strategies. They infiltrate non-governmental organizations (NGOs) and educational systems, subtly spreading their ideology and molding minds to align with their vision. It's like a slow and steady form of brainwashing, with the UN orchestrating the process. Then there's Agenda 2030 and beyond. It may sound harmless, a plan for global development and sustainability, but upon closer examination, it reveals itself as a blueprint for control and manipulation.

Manufacturing crises are another tactic in the UN's extensive toolbox. From conflicts to humanitarian disasters, they exploit these situations to push their agenda and gain more control. It's akin to a dark and twisted chess game where innocent lives are treated as mere pawns. And we must not underestimate the UN's ability to employ treaties and conventions as instruments of global influence. They effectively legalize control, disguising it as international law. By manipulating these agreements, they can override national sovereignty and dictate the terms of international relations.

Conclusion

The United Nations is often portrayed as the world's saviors, but behind the scenes, they are the puppet masters, orchestrating the actions of institutions and governments to further their agendas, sometimes controversial objectives.

In this exploration, I've uncovered a world where appearances can be deceiving. It's a world where institutions and governments may find themselves unwittingly influenced by the UN's behind-the-scenes maneuvers. Our journey has taken us through the UN's history, its manipulation strategies, and the influential individuals who play a role in its intricate web of global influence.

The key takeaway here is that knowledge is power. By understanding the UN's tactics and strategies, we can liberate ourselves from potential manipulation and contribute to a world characterized by genuine freedom and sovereignty. It's time to shed light on the puppeteers and reclaim control over our destinies. If you once considered this article a mere conspiracy theory, it might be time to reassess. Reality often surpasses the strangest fiction. So, it's vital to stay vigilant, question the status quo, and remember that the United Nations' actions are constantly under scrutiny.

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

Unleashing the Power of Force Multipliers: How Markethive Amplifies Your Business Success

Unleashing the Power of Force Multipliers: How Markethive Amplifies Your Business Success

Entrepreneurs encounter many challenges that can impede their businesses' progress and prosperity. However, force multipliers such as technology, tactics, resources, software, and partnerships can enhance effectiveness and achieve significant results even with limited resources. Markethive, a social neural network, provides a range of force multipliers, including information and content sharing, user-generated content, blockchain technology, storefronts, campaigns, brand ambassadors, awareness of the market, and network connectivity. These force multipliers can expand a business's reach, influence, and development, making Markethive an invaluable asset for entrepreneurs.

The challenges that entrepreneurs encounter can hinder their businesses' long-term success and growth. One common obstacle is figuring out how to effectively utilize the limited resources at their disposal, whether time or money, to achieve the most significant impact and profitability. This is where force multipliers come into play. It is essential to understand what force multipliers are and how powerful they are in addressing these challenges.

The armed forces have long understood the importance of force multipliers. A troop multiplier, for instance, enhances an existing military capability by either increasing its size or utilizing machine guns as force multipliers for rifles. The military would integrate sniper training into various subjects to enhance the value of snipers as a force multiplier and ensure their survival in combat.

Force multipliers are a means to accomplish more remarkable results with the same or reduced amount of effort, similar to how using a drill instead of a screwdriver can make tasks more manageable. These force multipliers can be vital in ensuring the business's survival.

What Are Force Multipliers In The Online World?

In the digital realm, force multipliers refer to the various methods, techniques, technologies, and resources that can significantly enhance your business's competitiveness and give you an edge over your rivals. These force multipliers can help amplify your online presence, streamline operations, and ultimately drive success in the digital marketplace.

Utilizing force multipliers has enabled many entrepreneurs to experience rapid and substantial growth, leading to outcomes that would have been unattainable through other means. By leveraging these tools, you can rapidly scale your efforts and unlock opportunities that otherwise remain out of reach.

Combining these elements creates a powerful effect and dramatically enhances the outcomes for the company, its clients, and the overall economy. By leveraging its strengths, a smaller entity can gain an unfair advantage over a larger, more established competitor with a similar business model, creating a force multiplier effect.

The military interpretation mentioned earlier emphasizes the importance of enhancing capability. Markethive, on the other hand, prioritizes the addition of processes as we aim for the combined marketing elements to unite and surpass the overall marketing endeavor synergistically. Unlike in many other institutions, force multipliers typically serve to optimize store operations or manufacturing productivity.

Marketing force multipliers stem from strategic and procedural innovations that enable businesses to adapt to the rapidly transforming landscape. Outdated linear approaches are no longer practical in today's dynamic market, where retailers and brands must respond to changing consumer behaviors and technological advancements. By embracing new strategies, marketing teams can capitalize on the explosive potential of force multipliers, allowing them to stay ahead of the curve and achieve tremendous success.

Any company seeking expansion must discover its unique Force Multiplier. The hurdle is determining which specific factors will boost your business's growth.

The marketplace is in a state of constant flux, with no shortage of influences impacting it. This highlights the importance of recognizing the factors that can amplify the growth of your brands. These factors must be identified and nurtured. Listed below are Markethive’s force multipliers, which are crucial for online businesses. 


Image: Markethive.com

Force Multipliers In The Digital Realm 

Sharing Info And Content On Social Networks

The speed and interactivity of sharing information and content on social networks is an essential tool for Markethive entrepreneurs. The diverse range of social media platforms available allows for extensive reach and connectivity. These platforms work harmoniously with the Markethive social media platform, enabling a tailored, individualized, interactive collaboration experience.

User-generated Content Attracting Feedback and Reviews

Entrepreneurs can benefit from the immediate sharing of user-generated content, but they must also be prepared to handle feedback and ratings from online users. While this can be a powerful tool for growth, it can also be detrimental if the entrepreneur is not receptive or dismissive of their customers' opinions. To effectively manage online feedback, being attentive and understanding of one's audience is crucial.

Fostering Advocacy: A Key to Success

Advocates should be nurtured. It is vital to cultivate advocates as they serve as an invaluable asset. They are passionate supporters and allies who strongly believe in your brand, cause, or product. These individuals willingly put in the effort without compensation. They become influential figures who can sway the opinions of undecided individuals. They engage in conversations with others and act as a catalyst in building customer loyalty and involvement.

Real-time Situational Awareness and Strategic Network Connectivity 

By leveraging a robust network of connected individuals and groups, your business can stay ahead of the curve and respond promptly to evolving market trends. With the right people and information in place, you'll be empowered to make informed decisions quickly, giving you a competitive edge. 

This proactive approach is a potent force multiplier that enhances your company's situation awareness in real-time, allowing you to stay adaptable and responsive in an ever-changing landscape. This strategic networking capability is an indispensable component of your marketing strategy, enabling you to stay ahead of the competition and achieve long-term success.

Harnessing the Power of Predictive Insights

The ability to forecast forthcoming changes holds immense potential, yet many organizations still need to catch up to adopt data-driven strategies. While some industries, such as law enforcement and healthcare, have embraced predictive analytics to anticipate security concerns and resource needs, many companies still need to utilize this powerful tool. By harnessing the capabilities of predictive intelligence, organizations can gain invaluable insights to preempt changes and stay ahead of the curve.

A network must capitalize on emerging trends and directions. Predictive analytics, such as analytics for anticipating short-term and long-term change, is a powerful tool to recognize trends and requirements at all times. It embodies a culture of innovation.

Storefronts and Campaigns

At Markethive, we offer powerful tools to help entrepreneurs amplify their reach and impact. Our storefronts and associated marketing campaigns are designed to work together seamlessly, providing a force multiplier effect that helps businesses grow and thrive. Additionally, we have integrated broadcasting capabilities that allow group administrators to easily share information with the entire group's social network, further expanding the reach of your message.

The blogging platform is designed to streamline team collaboration and provide comprehensive management reports for administrators. These reports offer visibility into individual team members' activities, including blog posting, autoresponder creation, capture page development, news feed posting, ad management, and new member sponsorship. Additionally, the system features a group rotator that showcases the collective traffic generated by the team and a cooperative mechanism for raising funds and shares to support group advertising campaigns.

Blockchain Technology

Blockchain and smart contracts offer a pivotal advantage by amplifying the impact of crowdsourcing. These innovative methods provide a cost-effective way to incentivize and reward individuals contributing to crowdsourcing initiatives. Entrepreneurs can bypass traditional sources such as professional investors and venture capitalists by obtaining funding directly from the crowd. This enables them to finance the development of new platforms that cater to users' requirements. The Incentivized Loan Program (ILP) serves as a prime illustration of this concept.


Image source: Gotco.in

Cryptocurrency

Users are rewarded with cryptocurrency micropayments for participating in various activities just using the systems on the platform. It creates a fun, engaging, rewarding, and profitable experience. This approach also utilizes gamification elements, with loyalty and bounty programs, to incentivize users and make their engagement even more valuable. The result is a dynamic that amplifies the impact of users' efforts and transforms how they interact with the platform.

Markethive’s Hivecoin (HVC) is alive and well on the official Hivecoin mainnet faucet. Increase your HVC portfolio by visiting the Hivecoin Faucet website daily to receive your free crypto. You just need to paste your Markethive wallet address in the bar, fill in the capture, and claim. You’ll receive 0.00001 HVC in usually a few minutes, up to 3 days. Also, be sure to bookmark the site and visit it daily to accumulate your HVC. This is a powerful force multiplier that increases the transactional activity required to meet exchange protocols. 

Amplify Your Reach with Force Multipliers

It is essential to utilize force multipliers to achieve expansion. Suppose you solely focus on targeting one customer, market, or partnership at a time. In that case, your growth will be limited, and you won't be able to compete effectively, especially against larger competitors with a well-established market presence. By employing force multipliers, you can accelerate your growth, increase scalability, and capitalize on opportunities that would otherwise be out of reach.

Constantly seeking ways to enhance productivity is crucial for businesses and marketers. Given our limited resources and time, it's essential to identify the most effective multipliers for each element to optimize results.


Infographic: Markethive.com

Markethive: What’s In A Name? 

The term "market" encompasses a comprehensive collection of effective inbound marketing resources, such as automated email responders, social media broadcasting tools, landing pages, blogging platforms, search engine optimization tools, lead management systems, and analytics.

The term "hive" refers to the social network present in the system. It is an innovative form of social network known as a Social Neural Network. This concept of a "Hive" offers unparalleled potential for campaigns to capitalize on the network effect, with effortless management and unbridled impact.

Irrespective of your motivation level, Markethive will enhance your schedule, expand your outreach, and create a larger and more impactful sphere of influence than any other platform has ever tried to achieve.

Markethive is an innovative platform that fuses the features of LinkedIn, Facebook, Marketo, and Fiverr, all while utilizing the cutting-edge technology of Blockchain. By doing so, it offers a comprehensive set of Inbound Marketing tools seamlessly integrated into a user-friendly social network. And the best part? It's free to join and even rewards you for participating!

Within Markethive, a thriving cottage industry has given rise to numerous independent businesses as the Markethive entrepreneurs capitalize on the opportunities presented by the platform. Markethive's money machines, such as the Banner Impressions Exchange (BIX), empower associates to harness the system's potential and achieve financial success.

Markethive is in the throes of incorporating more revenue-generating components, such as the E1 Exchange and Promocode. Additional components, referred to as hubs and portals, will be integrated in due course. They are diverse in nature and can also be considered force multipliers, amplifying earning potential.

Just like any other platform, upgrades offer additional features, such as the Entrepreneur One Upgrade, with more entry-level upgrades coming, like the Premium Upgrade launching soon. As a free member, you'll have access to various essential tools for inbound marketing. Plus, you'll be in our thriving social network and even earn crypto rewards, such as micropayments in Hivecoin for your activity on the platform, once you refer three friends or colleagues to join markethive. This article explains more about the referral program. 

We have here the world's first entrepreneur business person's social network, with the entire system offered predominantly for free to the worldwide entrepreneurs market. With the integration of the new streamlined dashboard and various newsfeeds currently in development, the complete system is next-level, clean, and intuitive, delivering every function and aspect available, fitting for the entrepreneur, business, and corporation. 

It encompasses a diverse range of entities, from small, local businesses to global corporations, including cottage industries, real estate and mortgage agencies, insurance providers, affiliate marketers, software developers, musicians, religious organizations, political parties and candidates, distributors, network marketers, innovators, and visionaries.

Cut expenses, boost profits, and expand your online presence with Markethive. This powerful platform allows you to amplify your reach, grow your audience, and increase your revenue stream without breaking the bank. There is no need for expensive internet marketing costs but an increasing need for a more efficient and effective way to achieve brand and financial success and sovereignty in the parallel economy. Markethive is the ultimate Social Market Broadcasting Network and the home of technology-driven Force Multipliers. 

May the force be with you. 

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

The Rigged Financial System: How the Common Man is Being Left Behind

The Rigged Financial System: How the ‘Common Man’ is Being Left Behind

The financial system, often seen as the bedrock of our global economies, paints a picture of fairness and impartiality. It's the engine that allocates resources and propels economic growth. Yet, the more we delve into the inner workings of this vast mechanism, the more it becomes apparent that it is not as equitable as it seems. The financial system is rigged as corporations, governments, and people in power have trillions of dollars of debt they can't possibly pay back, leading to inflation and regulation that negatively affects us all.

The huge gap in the standard of living paints a concerning picture, further supporting the fact that this system is rigged to benefit a privileged few while leaving the majority to bear the brunt. In this article, we will embark on a journey through the dilemma of systemic flaws and inequities deeply ingrained in the financial system. The goal is to shine a light on the mechanisms that perpetuate this rigging and unveil its far-reaching consequences on society.

The rigged financial system is like a well-kept secret that everyone knows about. As we explore this complex issue, we aim to provide a clearer understanding of how these mechanisms work without drowning you in jargon. It's a story that affects us all, and it's time we uncover the layers of complexity and injustice that have remained in the shadows. Let's dig deeper into how this rigged financial system is leaving the common person way, way behind.


Image source: Mohawk Nation News

The Rise of Inequality

Do you ever feel like you're having a hard time keeping up with the cost of living? Well, it's not just you; the financial system is rigged, but not in the way you might think. In short, corporations, governments, and the people in power have trillions, possibly quadrillions of dollars of debt that they can't possibly pay back. They can either default and lose everything or devalue this debt through inflation and keep it under control through regulation, and to our collective detriment, they've chosen the second option.

The financial system is rigged due to debt, inflation, and manipulation by corporations and governments. Still, individuals can navigate and improve their financial situation by understanding the system and making strategic investments. The disconnect between money and currency has led to inflation and devaluation, causing financial problems for the average person who is paid in a losing currency and trying to buy valuable things. At the same time, the government manipulates the cost of borrowing money.

Opportunity is supposed to be part and parcel of everyone’s dream, right? Well, unfortunately, reality says otherwise. Buckle up because we're about to take a roller-coaster ride through the awful numbers and depressing facts. You know those heartwarming stories you occasionally hear about a poor person who made it big? Yeah, those are like finding a unicorn in a sea of whales. They're that rare. The truth is that things are getting worse on the inequality front, and not just because of uncontrollable forces like technology and globalization.

No, the most disturbing part is that the ones making it worse are the ones who are supposed to be in charge. And the grand prize for rigging the system goes to the inherited plutocracy! The very people who have benefited from the rigged system are the same ones, making it even more rigged. For instance, in the United States, in the past 40 years, the income share of the top 0.1% has more than quadrupled, while the top 1% has enjoyed an almost doubled share. Meanwhile, the bottom 90% have seen their income share decline.

Wages at the bottom have remained stagnant for about 60 years (even with inflation taken into account). It's like time froze for the working class while the elite continued to live it up. And if you thought things couldn't get worse, think again. Those with a high school education or less have actually seen their incomes fall over the past few decades, especially the poor fellas. When inequality increases, hope decreases. People start losing faith in the system, and that's when things take a dark turn.


Image source: Wikipedia

Desperation leads to increased deaths from suicide, drug overdoses, and alcohol-related causes. Now you can see why we must discuss this rigged financial system. It's true; markets don't exist in a vacuum. Rules and regulations shape them. Surprise, surprise, those rules can be designed to favor one group over another.

Market manipulation is just one of the delightful practices in which the financial sector indulges. They get away with imposing outrageous interest rates on borrowers and creating securities set up to fail. And let's not forget their love for illegal activities like insider trading. They really know how to keep things spicy, don't they? But wait, there's more, rent extraction! This fancy term refers to the withdrawal of income from the national pie that is way more than these supposed "contributors" deserve. It's like a never-ending buffet for the elite. They get to feast on public resources like oil at ridiculously low prices while the rest of us struggle to make ends meet.

The Regulatory Capture

Regulatory capture is a troubling reality in the world of finance, and we can illustrate its impact through real-life examples. Imagine a scenario where a regulatory agency, let's call it the Financial Oversight Commission (FOC), is responsible for overseeing the banking industry. The FOC is supposed to ensure that banks operate fairly and within the bounds of the law, protecting the interests of the public.

However, powerful banking lobbyists and executives have increasingly influenced the FOC over time. These individuals have deep pockets, employ well-connected influencers, and even hire former FOC employees, creating a revolving door between the regulatory agency and the very industry it's meant to regulate.

This regulatory capture results in the FOC crafting policies and regulations that favor the banks rather than safeguarding the public's interests. Let's look at a real example to understand this better: The financial crisis of 2008.

During the lead-up to the crisis, some banks engaged in risky lending practices and bundled those risky loans into complex financial products. These practices were a ticking time bomb for the financial system. One would expect a diligent regulatory agency to spot these issues and intervene before disaster strikes. However, the FOC and other regulatory bodies failed to act decisively.

Why? Because they had been influenced and captured by the very financial institutions engaging in these risky behaviors. High-powered lobbyists and industry insiders shaped regulations in ways that allowed these practices to continue unchecked. The result was a devastating financial crisis that affected millions of people worldwide, leading to job losses, foreclosures, and a massive economic downturn.

In the aftermath of the 2008 crisis, there were calls for reform and increased transparency in financial regulation. However, breaking free from the clutches of regulatory capture remains an ongoing challenge. Both policymakers and the public must be aware of these issues and work toward restoring trust and accountability in the financial regulatory system. The influence of unofficial financial regulations like ESG is increasing, surpassing official regulations, and it's coming from unaccountable international organizations. These crazy regulations make things more difficult for the ordinary person than they already are. 


Image Source: American Icons Temple

Rewriting the Economic Game

Rewriting the economic game, where the rules constantly change, the common man is left scratching his head, wondering when it will ever be his turn to win. Well, my friends, I hate to break it to you, but the game has been rigged for quite some time now. And in the land of the free and the home of the brave, it's the rich who are winning big time with the market power of corporations.

These powerhouses have always had a leg up on the little guy and girl. While other developed countries have some regulations to level the playing field, American corporations have been given free rein to run wild. Just think about it. These mega-corporations have more influence over lives than we even realize. They control the products we buy, the services we use, and the jobs we desperately cling to. And with their untamed market power, they can squeeze every last drop of profit out of us while we're left wondering how the hell we got here.

Remember the good old days when a hard day's work meant a decent paycheck and a secure future? Yeah, those days are long gone. The shift to a service-sector economy has left workers high and dry while the fat cats continue to line their pockets. You see, with the rigged rules of the game, workers have lost their bargaining power. Wages have stagnated, benefits have vanished, and job security is a thing of the past. And while we're busy trying to make ends meet, the rich keep getting richer, laughing all the way to the bank.

Here's the real kicker: This is happening because the political system is rigged. Gerrymandering, voter suppression, and the influence of money have turned democracy into a puppet show, with the rich pulling all the strings. No matter how hard we fight for change, the system is designed to keep us down. The roar of corporate dollars has drowned out the voices of the common man. And while we're left to pick up the pieces, the elite few continue to thrive, building golden towers with people’s blood, sweat, and tears.

The rewriting of the economic game has left us fighting an uphill battle with no end in sight. But fear not, for together with the rise of entrepreneurs, we can reclaim what is rightfully ours. We can demand a fair and just society where the ordinary person is no longer left behind. But until that day comes, we must continue to shine a light on the corruption and inequality that plague the world's nations. 

We must use our voices, votes, and collective power to dismantle the rigged system and build a future where everyone has a fair chance at success. The economic game may be rigged, but if history has taught us anything, it's that the common person can rise and change the rules. So, let's roll up our sleeves and get to work because a brighter future is within our reach. And together, we can make it a reality.

Considering all this, wealth is concentrated in the hands of a few, leaving the rest struggling to make ends meet. Wages at the bottom are stagnant, job losses are rising, and despair is becoming all too common. But it's not just the forces of nature that have led us to this dire situation. No, it's the laws and regulations put in place by those who hold power. The system is rigged in favor of the wealthy, with market manipulation, financial sector exploitation, and rent extraction all contributing to the growing divide.

Special favors and favorable regulations further exacerbate inequality and make it harder for the common man to get ahead. And let's not forget about the rewriting of the economic game. The market power of corporations has grown exponentially while the power of workers has dwindled. This is not an accident but a result of a rigged political system where gerrymandering, voter suppression, and the influence of money reign supreme. It's a vicious cycle where economic inequality leads to political inequality, and ‘we, the people,’ are left to suffer the consequences. It's time to fight for a fair and equitable society where everyone has a chance to thrive, not just the privileged few. Together, we can dismantle the rigged system and build a brighter future for all.

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

6 Steps To Unlocking Cryptos Full Potential: Markethives Contribution to the Cause

6 Steps To Unlocking Crypto's Full Potential: Markethive's Contribution to the Cause.

Although Bitcoin has existed for 15 years, the crypto industry is considered relatively nascent, and it’s frequently stated as still in the early days, meaning that many coins and tokens still have huge potential. Many believe this is somewhat underestimated. In perspective, the total market cap of stocks is $90 trillion, the total market cap of precious metals is $15 trillion, and just the US Dollar is over $20 trillion. The total market cap of crypto is only around $1 trillion, and considering some coins and tokens could someday become serious competitors to stocks, metals, or even national currencies means that crypto still has unprecedented potential. 

This article explores the six steps to achieving crypto’s full potential, how it will achieve this potential, what entities are moving forward, and how significant the returns could be. We’ll look at where we’ve come from and where we are heading and discover the critical component that brings this whole approach together. 


Image source: Finoa.io

Awareness and Education

The first step to achieving crypto's full potential is awareness and education because crypto can only receive investment or achieve adoption if people know about it. It can only receive investment or achieve adoption if people understand how it works and its value. Awareness of and education about crypto needs to be improved, as most of the attention either comes from mainstream media, arguably biased and aligned with the financial establishment, or from misleading advertisements, promotions, and partnerships, often from explicitly pro-crypto entities. 

Much of the education has also come from questionable sources, with most media outlets and influences pushing content purely to get clicks or token allocations. The result is that there is a general shortage of quality information about crypto, but this is improving. People are looking for quality information about crypto, and it’s increasing.

Another reason there’s been a lack of genuine education in crypto until now is that it's often more profitable to do other kinds of crypto content in the short term. It has given cryptocurrency an unfavorable reputation and is especially tough for those genuinely trying to educate others, but this seems to be slowly improving, too.

Some crypto content creators and influencers have taken shortcuts, finding themselves under the scrutiny of the SEC, while other countries have recently enforced strict regulations around crypto marketing.  As concerning as some of these regulations are, they are arguably necessary to ensure that the next wave of crypto content creators and influencers focus on crypto content with long-term value. 

Markethive, an entrepreneurial ecosystem, is a platform at the forefront of this shift as a next-gen crypto media outlet that champions free speech, focusing on genuine crypto content and education. The overall crypto landscape is at the beginning stages. Still, by the time the next crypto bull market hits, the quality of crypto awareness and education will be much higher than it has been, which will set the stage for crypto to reach its full potential. 

Crypto Regulation 

The second step to achieving crypto's full potential is regulation. It ties into the first step because regulators must know about crypto to write reasonable regulations. Institutional investors also need to be aware of and educated about these regulations. As we've seen, regulators worldwide are both aware of and educated about crypto for the most part. This is fortunate or unfortunate, depending on the jurisdiction in question. 

It's becoming clear that some are pushing for pro-crypto regulations while others are pushing for anti-crypto regulations. Believe it or not, any crypto regulation will benefit the crypto market if it doesn't involve an outright ban. This is just because investors, notably institutions, will finally have some guidance about what they can and can't do with crypto in their country. And once these investors and institutions get involved, you can bet that they will lobby to improve crypto regulations to suit their needs better. 

The crypto industry has already been lobbying but with mixed results. By contrast, Fidelity privately lobbied the SEC to approve a spot Bitcoin ETF in September 2021. For context, Fidelity is one of the largest asset managers in the world. It was arguing with an anti-crypto regulator behind closed doors, which is highly bullish. 

In retrospect, it's possible that Fidelity's lobbying is why Black Rock became encouraged to file for a spot Bitcoin ETF in June 2023. More importantly, Fidelity's past lobbying and Black Rock’s present SEC filing suggest that these lobbying efforts will only increase. This will ultimately be a net benefit to the crypto market. 

Institutional Investment

The third step to achieving crypto's full potential is investment from institutions and high-net-worth individuals. Of course, these entities hold most of the world's wealth. This is a consequence of having currencies whose supply is manipulated by people in power. Like all investors, institutions and high-net-worth individuals ultimately want to maximize their returns. As it happens, Bitcoin’s BTC is estimated to be the best-performing asset of all time, from an initial price of $0.09 to all-time highs of over. $69K, BTC has pulled a 760,000X return. 


Image source: Bitcoin’s Price History

Like all assets with such high returns, BTC’s returns will likely diminish over time, but it will still ostensibly outperform most other assets for the foreseeable future. This fundamentally depends on how much BTC we'll see in inflows. Although this is impossible to predict, there is one benchmark to remember; 

BTC is considered by many investors, including Black Rock, to be digital gold. As a result, it's generally believed that BTC’s market cap will someday be similar to that of gold. Now, gold's market cap currently sits at around $13 trillion. BTC's market cap is currently sitting at approximately $500 billion. So, BTC catching up to gold would mean a 26X increase in its price. This would translate to a BTC price of around $670,000. 
 
Interestingly, BTC’s peak price of $69K put its market cap at around $1.3 trillion, around 10% of gold's total market cap. This assumes that BTC is analogous to digital gold. Some have argued that BTC has additional value since Bitcoin is technically the most secure network in the world. It makes it the ideal base for other ecosystems, including payments, which the likes of the Lightning Network can support. On the topic of payment networks, smart contract cryptocurrencies are the ones that will capture this market share. It means that they could someday displace payment processors and other financial intermediaries. 

The total market cap of these financial intermediaries is over $2 trillion. Given that the market cap of Ethereum’s ETH is currently around $200 billion, matching analogous companies would mean a 10X increase in price. It translates to an ETH price of over $15K, but this likewise assumes that Ethereum is just a payments network; it is obviously much more than that. As such, one could argue that Ethereum is still near the beginning of its adoption curve. 

Crypto Adoption

The fourth step to achieving crypto's full potential is adoption. For reference, it's estimated that less than 5% of the world currently holds crypto. This implies that should more people choose to hold crypto, its price should have excellent upside potential. However, holding crypto is not the same as using crypto. Holding it constitutes investment effectively, whereas using it is actual adoption. 

On-chain data for the largest cryptos suggests there are only a few million daily users, a mere fraction of the world's population. Therefore, potential gains are even more significant than expected by merely extrapolating hodlers. For those unfamiliar, there are ultimately three reasons why people adopt crypto. The first is for profit, the second is for fun, which is very much intertwined with the first reason, and the third is out of necessity. This third reason has resulted in most of the actual crypto adoption. 

For example, 50% of Nigeria's population uses crypto daily, primarily because the government can't be trusted. This phenomenon is not unique to Nigeria; it's an accelerating trend worldwide. Considering that most central banks are currently rolling out Central Bank Digital Currencies (CBDCs), it becomes easy to imagine a world where the average person starts looking for alternatives to a digital currency controlled by institutions they don't trust. 

The demand for such alternatives is already increasing among some governments. The so-called Global South is looking to move away from the US dollar, and some reports suggest that crypto could be a part of their escape plan. Some countries already use crypto for international trade, and Russia is considering mining its own crypto. 

So, just like the adoption process at the individual level, the adoption process at the national level will eventually involve nations and national activities. Using crypto for things like international trade will become more accessible to the average country. At the same time, the tendency to weaponize fiat currencies will be increasing, and this will increase the demand for credibly neutral currencies. Decentralized cryptos like BTC could play a key role. 

Crypto Innovation

Crypto Adoption will ultimately depend on the progress of crypto innovation, the fifth step to achieving crypto’s full potential, particularly around user experience and privacy. Logically, it will be hard for individuals and institutions to adopt crypto in any meaningful way if they need to struggle with hardware wallets. 


Image source: Coursera.org

Significant developments have been on this front, the most notable of which is the gradual merging between hardware and software. It might sound bizarre, but a crypto phone like Solana Saga could solve crypto wallet User Interface (UI) and User Experience (UX). It's not just wallets, either. A lot of innovation is happening at the blockchain level. 

For instance, Ethereum’s EIP 4337 upgrade from earlier this year will allow any phone to have crypto phone-type properties, mainly hardware wallet-level security. It will also make it possible to create dApps with no gas fees or, rather, dApps where the user doesn't have to pay the gas fee. 

Constantly checking and accounting for transaction fees is another considerable hurdle to crypto adoption, which many crypto projects attempt to overcome. This will require entirely new approaches, such as charging crypto users monthly subscription fees to use a blockchain rather than charging them for every individual transaction. Of course, some of these approaches will require entirely new types of hardware, like more interactive hardware wallets.

Crypto Privacy

Crypto privacy is another niche to watch out for. Privacy in crypto has been a touchy subject. In one respect, crypto transparency is a huge advantage. At the same time, some degree of privacy is required for financial freedom, and high-net-worth individuals demand it. When it comes to the incessant third hand of government, there's a desire to exploit crypto’s transparency to track transactions and label any crypto privacy attempts as inherently encouraging criminality. 

For the crypto industry, balancing transparency with privacy presents a challenging problem. Zero-knowledge proofs have emerged as one potential solution to this problem, but they come with other problems. The primary one is ensuring that these zero-knowledge technologies don't have secret back doors. Thankfully, this is an issue that can be addressed.


Image Source: Developers:Circle.com

Regardless, the problem of balancing transparency with privacy is closely related to the problem of identity. Countries are pushing for digital IDs, and global regulators want to see these digital IDs integrated with cryptocurrency. The crypto industry has been working on its own supposedly decentralized digital ID solutions; however, these digital ID Solutions are just as centralized as the ones from governments. What's needed is a truly decentralized digital ID. 

There haven’t been any significant developments yet; however, the innovations around wallets and privacy continue rapidly and should be in place by the time the next crypto bull market comes around. This will further facilitate crypto investment and adoption at individual and institutional levels. 

Decentralization

Cryptocurrency's final step to achieve its full potential is complete decentralization. Without decentralization, everything that I just mentioned is off the table. That's because if crypto is centralized, it can be controlled, and if it can be controlled, it'll end up like our existing systems—news flash: Crypto's entire purpose is to replace our current systems with something better, starting with our monetary and financial systems. Naturally, the technology that underlies crypto is compelling. The only way it won't fall into the wrong hands is if it's genuinely decentralized. 

This article illustrates that decentralization means more than having many validators or miners. It means having a decentralized developer base, a decentralized coin or token distribution, a decentralized infrastructure layer, and a decentralized blockchain. Ultimately, this also means having a truly decentralized internet. 

Luckily, the Internet is somewhat decentralized and will likely become more decentralized as peer-to-peer Internet crypto projects like Helium see more investment and adoption. This also pertains to Markethive as it strives to decouple from all centralized entities prevailing as a tour de force in its next-gen social market broadcasting media niche. This adoption is necessary due to internet censorship

Currently, most cryptocurrencies are arguably not decentralized enough to evade control. It stands to reason, then, that these cryptocurrencies will not be the ones that make it. In other words, if you hold centralized cryptos, you're not early; you're late, very late. That said, this depends on whether the centralized cryptos you currently hold can become decentralized. To figure this out, you must ask one question: Is this crypto capable of building its own infrastructure and ecosystem without relying on a single set of individuals or institutions? 


Image Source: X – The DeFi Edge

Crypto Funding

The answer for most cryptos is no; however, that's not entirely their fault. One perspective is that one of the primary reasons why so many cryptos are so centralized is because of funding. Early investors in crypto projects want to see returns and often try to control the project to that end. This incentivizes crypto projects to cut corners on decentralization to ensure their investors are quickly rewarded. As we've seen, these so-called VC coins have seen the most aggressive pump-and-dump cycles, and most of them probably won't last past the next crypto cycle. 

The silver lining to this situation is that it fully displays the solution to the crypto centralization problem. The crypto industry needs to find a way to fund crypto projects in a more decentralized manner. 


Image by Markethive.com

Decentralization of Social Market Networks

Markethive is the ecosystem for entrepreneurs and a crypto project with the solution to top-level control issues, whether it be funding or the systems driving it. It is a decentralized, limited AI-secured rating and reputation system that is self-policing and a Human Intelligence (HI) that fosters a healthy level of meritocratic interaction. The community solely funds it with no prominent venture capitalists. The people are building it; it is of the people and for the people, so the community will profit, sharing the prosperity and abundance of every level of humanity.

It also creates a breeding ground for positive, creative, and beneficial content in which people's minds are prompted toward positive growth and critical thinking. Markethive is beyond its crypto wallet and Hivecoin release milestones, disengaging unreliable APIs and implementing multiple servers in preparation for its mining hives that give peace of mind—making it an impenetrable fortress against what has become a jungle, and a cesspool of fraud, scams, data harvesting, political bias, and dystopia. 

This divinely inspired project is all part of the Web 3 or 3rd generation Internet, which has emerged as a movement away from the centralization of services. Markethive is here for the rank and file with entrepreneurial aspirations at little to no cost to join. The all-encompassing social market broadcasting network delivers financial sovereignty, freedom of expression, privacy, and autonomy. We have entered into the much-needed world of decentralization, where the cancel culture is no longer an existential threat.  

At the time of writing this article, we are perfectly positioned to take advantage of the opportunities that are coming. Markethive, with its Hivecoin (HVC), will be poised for the next crypto bull run and participate in the facilitation of crypto achieving its full potential, where we’ll see HVC firmly established as a coin with purpose and utility in the free market. Do you want to be part of the decentralization revolution? Today, become an ‘Entrepreneur One’ and reap the rewards of Markethive’s ILP and revenue returns.  

May God bless and uphold you for all eternity…

 

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

The Dark Secrets Behind Crypto Market Manipulation

The Dark Secrets Behind Crypto Market Manipulation

Cryptocurrencies have been at the center of extensive debates in recent years, with much of the discussion revolving around their value and regulatory aspects. However, there is a pressing need to delve into the issue of market manipulation, with a particular focus on the behavior of cryptocurrency exchanges.

The spotlight on crypto and market abuse intensified in late 2022 following the collapse of FTX. This exchange, which had, at one point, held the position of the world's third-largest cryptocurrency exchange by trading volume during its three-year existence, experienced a dramatic downfall. Its founder and CEO, Sam Bankman-Fried, now faces a series of serious charges, including conspiracy to commit commodities and securities fraud and conspiracy to defraud the United States and engage in campaign finance violations. These charges stem from allegations that Bankman-Fried defrauded investors about $1.8 billion. FTX has been entangled in Chapter 11 bankruptcy proceedings in the United States since November of last year.

The high-profile and large-scale nature of FTX's collapse has triggered a wave of inquiries into the functioning of cryptocurrency exchanges and the risks associated with market manipulation. It's important to note that market manipulation is not a phenomenon exclusive to crypto exchanges; it's an illicit practice in the financial markets with a historical presence dating back centuries.

In the ever-evolving world of cryptocurrency, a question that looms large in the minds of new investors and enthusiasts alike is whether the crypto markets are manipulated. The topic has been the subject of intense debate and speculation, with proponents on both sides presenting their arguments. In this article, we aim to shed light on this intriguing issue, examining the various factors and evidence that contribute to the perception that the crypto markets are indeed manipulated.


Source: Solidus Labs

Insights from the Solidus Labs Report

Before delving into the specifics of market manipulation, it's essential to understand the context in which the crypto markets operate. Cryptocurrency, most notably Bitcoin, has gained unprecedented popularity and attention in recent years. Its decentralized nature and the potential for substantial financial gains have attracted investors from all walks of life. With the total market capitalization of cryptocurrencies reaching astronomical heights, it's no wonder that questions about manipulation have arisen.

It's important to understand the key findings of a recent report by Solidus Labs, a crypto research firm. The report, aptly titled "The 2023 Crypto Market Manipulation Report," was published by Solidus Labs in June. Although some time has passed since its publication, the facts and figures remain largely relevant.

The report is divided into two main sections: insider trading and wash trading. Insider trading involves individuals with privileged information trading to their advantage. The report highlights the significance of addressing market manipulation to foster crypto adoption, especially considering the ongoing discussions about exchange-traded funds (ETFs) in the crypto space. The Securities and Exchange Commission (SEC) has been hesitant to approve crypto ETFs due to concerns about market manipulation. While the report acknowledges that the issue may be up for debate when it comes to Bitcoin (BTC), it suggests that most altcoins are susceptible to manipulation.

The report identifies a startling statistic: 56% of ERC-20 tokens listed on crypto exchanges in 2021 showed evidence of insider trading, even on major exchanges. The authors of the report discovered a network of 51 interconnected wallets believed to be responsible for a significant portion of this insider trading activity. Unfortunately, the report does not specify which exchanges were analyzed, leaving some details unclear.

Insider trading, as defined by the report, includes any wallet that consistently buys a token shortly before it is listed on a major exchange. Surprisingly, the subsequent insider trading often occurred on decentralized exchanges (DEXs) rather than centralized exchanges (CEXs). However, only a few cases involved insiders selling their tokens on the exchanges where the tokens were listed. This might be attributed to fears of detection by insider trading detection mechanisms on these exchanges.

A case study in the report highlights one individual or entity involved in insider trading who conducted 14 listings using DEXs and 22 more using CEXs. Interestingly, the gains from this insider trading activity were not as substantial as one might expect, with an estimated profit of $300,000 against an investment of $2.7 million. This suggests that the individual or entity involved likely possessed substantial financial resources, potentially indicating an institution or a seasoned actor in the crypto space.

Another noteworthy discovery in the report was the identification of 54 additional wallets created specifically for insider trading. These wallets were found to be associated with transactions related to tokens about to be listed or newly listed tokens. The entities behind these wallets used various methods to obscure their activities, including privacy protocols like Tornado Cash, smart contract-enabled privacy coins like Secret Network, and crypto exchanges with lax Know Your Customer (KYC) requirements.


Source: Solidus Labs

The report also raises the possibility that crypto exchanges themselves might be involved in insider trading, a serious allegation that has been made against some exchanges in the past. The authors acknowledge that some of the wallets identified may have been purely coincidental, but the overall pattern suggests insider trading. They speculate that token issuers, market makers, and investment firms could be the entities behind these wallets.

Moving on to the section of the report focusing on wash trading, it reveals some eye-opening statistics. Since 2020, liquidity providers on Ethereum have engaged in wash trading involving over $2 billion worth of cryptocurrencies. This behavior was identified in 20,000 tokens, taking place in 67% of the over 30,000 liquidity pools analyzed. Wash trades accounted for an average of nearly 15% of trading activity in these pools.

Wash trading is a form of market manipulation where an entity simultaneously buys and sells the same asset, creating a deceptive impression of market activity while no actual change in ownership occurs. Notably, the authors believe that the extent of wash trading on DEXs on Ethereum is even higher, but the reported data only covers 1% of the analyzed information.

The report further suggests that wash trading is detectable and preventable in the decentralized finance (DeFi) space. It argues that DeFi protocols could implement similar regulatory measures as centralized exchanges to combat wash trading. Additionally, on-chain analysis can help identify suspicious liquidity providers.


Source: Wash trading in centralized crypto exchanges – Cepr.org

So, what does all of this mean for the crypto industry? The short answer is that these revelations are not good news for DEXs. However, it's worth noting that the report appears to focus exclusively on insider trading and wash trading on DEXs, whereas similar issues have been found on CEXs, with fake trading volumes being a significant concern.

Transparency is a critical factor in regulating market manipulation, and DEXs, with their publicly viewable and traceable transactions, have the potential to be more transparent and less prone to manipulation than centralized exchanges. DeFi protocols are also exploring ways to implement regulatory measures at the smart contract level.

While market manipulation is a challenge that the crypto industry must address, it is a problem that can be tackled with the right tools and regulations. DEXs are gradually working towards mitigating this issue, and their transparency can serve as a model for the broader crypto ecosystem. However, the crypto industry must also confront larger issues, including centralization, privacy concerns, and censorship resistance. As blockchain analytics companies like Solidus Labs lead the way in addressing market manipulation, the industry can move forward with greater transparency and accountability.

Ultimately, market manipulation is one of the more solvable issues in the crypto space, and once it is effectively addressed, attention can be directed towards other critical challenges facing the industry.

Summary

The debate over whether the cryptocurrency markets are susceptible to manipulation continues to persist, and while no definitive consensus has been reached, there are indeed compelling reasons to consider the possibility of manipulation within these markets. Several factors contribute to this perception, shedding light on why investors remain cautious when participating in the crypto space.

First and foremost, the absence of comprehensive regulatory oversight is a fundamental concern. Unlike traditional financial markets that operate under strict regulatory frameworks enforced by government authorities, cryptocurrency markets exist in an unclear regulatory landscape. This regulatory void creates an environment in which individuals or entities may exploit loopholes and engage in illicit practices without fear of legal repercussions. This lack of oversight can significantly contribute to the perception of vulnerability to manipulation.

Another prominent factor that reinforces the perception of market manipulation is the prevalence of "pump and dump" schemes. These schemes involve artificially inflating the price of a cryptocurrency through coordinated buying, often based on misleading or exaggerated information. Once the price reaches its zenith, those orchestrating the scheme sell their holdings at a profit, resulting in a swift and severe decline in price. These schemes not only deceive investors but also erode trust in the integrity of the market.

The influence of crypto whales, individuals or entities holding substantial amounts of a specific cryptocurrency, is another element contributing to the perception of manipulation. These whales possess the capacity to sway market sentiment and price movements through their significant trades. A single large sell order from a whale can trigger panic selling among smaller investors, leading to rapid price fluctuations. This unequal distribution of power can lead to a sense of vulnerability among market participants.

Furthermore, the lack of transparency on many cryptocurrency exchanges adds to the perception of potential manipulation. Some exchanges do not provide adequate information about their operations, trading volumes, or even the identity of their owners. This opacity can raise suspicions about the fairness and integrity of these platforms, further fueling concerns about market manipulation.

In light of these factors, it is prudent for investors in the cryptocurrency space to exercise caution and diligence. Conducting thorough research and due diligence before participating in any cryptocurrency investment is essential. Being aware of the risks associated with market manipulation and staying informed about the latest developments in the industry can help investors make more informed decisions and protect their interests.

While the cryptocurrency market offers exciting opportunities, it is not without its challenges. Acknowledging the existence of potential manipulation and taking proactive measures to mitigate these risks is a crucial step for investors looking to navigate this dynamic and evolving landscape successfully.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.