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.

Central Banks Concerns About Rising Crypto Adoption. Report Paradoxically Depicts Bullish Outcome For Crypto

Crypto adoption is on the rise, and it may well be argued that the central banks don't like that fact. Recently, the BIS, monikered as the so-called ‘Bank for Central Banks,’ published a report claiming that crypto adoption causes financial instability in developing countries, where adoption is happening the most. 

Central banks of the United States, Mexico, Brazil, and other major Latin American countries conducted the report. Their concerns about crypto adoption paint a surprisingly bullish picture. This article provides an overview of this report, explains the significance of what's being said, and tells you what it could mean for the crypto market.

The report summarized here is titled “Financial Stability Risks from Crypto Assets in Emerging Market Economies.” It was published by the Bank for International Settlements (BIS) in August 2023. The report begins with a foreword that analyzes crypto adoption in developing countries. It includes recommendations on how to keep crypto under control. 

Source: Cointelegraph

BIS member central banks of Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, and the United States wrote the report. The representatives set up a task force led by the BIS Americas Office as the secretariat. It seems to claim that crypto adoption in developing countries is high because these countries generally have low financial literacy. This starkly contrasts with a recent study by a U.S. university, which found that crypto adoption actually increases financial literacy. This makes sense, considering that you must understand crypto before adopting it. 

About The Report

The report's first section provides a summary of the key findings. The authors are hyper-focused on the rise and fall of the crypto market. They don't seem to care about why people are adopting crypto but simultaneously acknowledge the reasons why. For example, As quoted, “Proponents of crypto assets claim that they offer lower transaction costs, faster payments, no intermediation, anonymity, and potentially high returns on investment. Whether they deliver on these claims is another matter.” 

The second part is surprising, as they refuse to argue against it. Moreover, it states, “For some users, crypto assets provide an alternative to limited investments and savings instruments, while for others, they offer a seemingly safe haven against volatile domestic currencies.” 

Now, this conflicts with what the authors implied in the forward. They know those adopting crypto are informed. In other words, they know exactly why people in developing countries embrace crypto; because their fiat currencies suck. Instead of addressing these shortcomings, the authors essentially conclude that something must be done to keep crypto under control because of supposed financial stability risks. 

The authors then highlight several risks, in particular, market risks due to volatility, liquidity risks due to a lack of transparency, credit risks due to a lack of governance, AKA control, operational risks due to cyberattacks, currency substitution risks, and capital flow risks, due to crypto’s use in cross-border payments. 

The irony is that many assets are more volatile than crypto. The existing financial system is even less transparent than the crypto industry, traditional finance (TradFi) has exponentially more credit risk than decentralized finance (DeFi), and cryptos are more resilient to cyber-attacks because they're more exposed; they are literally tested every day. This underscores the fact that the only risks the authors are concerned about are currency substitution and capital flows. 

To address these risks, they claim that “Authorities can consider selective bans, containment, and regulation,” a classic starting point for these BIS reports. For those interested, here is a summary of another crazy BIS report from last year.

The report begins with an introduction where the authors explain cryptos and how they work. They then divide crypto into two categories for their analysis: stablecoins and unbacked crypto assets, which means everything else: Bitcoin, Ethereum, et al. For context, central banks hate stablecoins, probably because they’re direct competitors to Central Bank Digital Currencies (CBDCs). Interestingly, governments seem to like stablecoins because they're backed by government debt. This means they can use stablecoins to subsidize their spending. 

The authors explain that this report builds on recent work by the Financial Stability Board (FSB), a subsidiary of the BIS. Notably, the FSB’s crypto recommendations become regulations in its member countries, namely the G20. The work the BIS is building on is a crypto framework put together by the FSB, which can be seen in the image below. This infographic is ironic because it notes that stability risks only flow from crypto to TradFi. As we've seen with the banking crisis, the stability risks come from TradFi, not crypto.

Source: BIS Papers: Financial stability risks from crypto assets in emerging market economies.pdf

Before breaking down the alleged risks crypto poses to TradFi, the authors make another eye-opening claim, 

“The crypto universe was built on the promise of an efficient, decentralized, low-cost, inclusive, safe and open monetary system, but structural vulnerabilities in the design and operation of crypto asset markets make them unsuitable as the basis for a monetary system.” 

The key word here is ‘monetary’; the central banks oversee the monetary side of the financial system. In practical terms, this means raising or lowering interest rates through various mechanisms to affect the amount of currency in circulation. It's clear that they do not want to lose control of this ability. 

The Alleged Risks

Market Risk
As stated above, the first crypto risk is market risk. Firstly, the authors implied that publicly traded crypto companies are inherently risky. They also take issue with the fact that some cryptos are held mainly by a handful of wallets. They provide some fascinating statistics to back up their claims, 

“In 2020, an estimated 10,000 individuals owned about a quarter of all outstanding Bitcoin. Satoshi Nakamoto, the anonymous creator of Bitcoin, is the largest holder, with more than 1 million stored in different wallets (around 5% of the total). Other tokens show similar concentration. For example, fewer than 100 participants control over 51% of the value in Dogecoin, ZCash, and Ethereum Classic.”

So, at first glance, these statistics are concerning, but it's easy to forget that there's even more extreme wealth concentration in other asset classes. It exemplifies the top 1% reportedly earned more than the rest of the world combined over the last two years. Why isn't the BIS raising this point? 

The second thing worth noting is that most of the authors' concerns around market stability are directed at stablecoins, which should come as no surprise, given that they are competitors to CBDCs, as mentioned earlier. 

Source: Bitcoin Treasuries 

What is surprising is that the authors also target spot Bitcoin ETFs, quoting, “Bitcoin ETFs could potentially pose a market risk in emerging market economies (EMEs) by lowering the barriers to entry for less sophisticated investors and increasing investors' direct and indirect exposure to crypto assets.” 

Oddly enough, the authors are concerned about the wealth concentration Bitcoin ETFs could cause. Here are a few more statistics; “As of end-March 2023, ETFs owned a combined 819,125 BTC, 3.9% of the total bitcoins to be issued (21 million). The largest Bitcoin ETF is Grayscale Bitcoin Trust (GBTC), which owns 643,572 BTC, or nearly 3% of the total supply. In total, ETFs, governments, and public and private companies own more than 1.6 million BTC, approximately 7.8% of the total supply.”

Source: Bitcoin Treasuries 

Liquidity risk
The second crypto risk is liquidity risk. The authors note that most of crypto’s trading volume occurs on offshore exchanges such as Binance. What's odd is that they include Huobi Global as one of the top crypto exchanges and a potential point of concern when it's no longer that large.

Source: Coinmarketcap.com

Oddities aside, the authors also aim for Tether and allege that its USDT stablecoin is still insufficiently backed. They missed the memo that USDT is now backed almost entirely by US Government debt, like all the other major stablecoins. It appears that the BIS is making arguments using outdated data. 

Anyhow, there’s something else that the authors point out, which is quite essential: money market funds were a significant source of market instability in 2008 and 2020. For those unfamiliar, money market funds are kind of like TradFi stablecoins. The difference is that you earn a yield on them. 

Naturally, the authors note that stablecoins are similar and that if they were to experience a run, this could create problems for the assets that back these stablecoins, namely government debt. The thing is that most money market funds are significantly more extensive than most stablecoins and, therefore, riskier. 

Credit Risk
In any case, the third is credit risk. The authors define credit risk in the context of crypto as “The potential that a counterparty in crypto-asset markets or directly exposed to crypto assets could fail to meet its obligations in accordance with agreed terms.”

Areas of concern include interconnectedness between crypto companies, citing FTX and Alameda Research. Also, lack of governance and disclosures, quoting DAOs and leverage, citing DeFi. They also included crypto exchanges having access to bank accounts, citing Chilean authorities, who forced banks to bank crypto exchanges. 

Despite favorable crypto regulations, crypto companies and projects in pro-crypto jurisdictions still have difficulty opening bank accounts. This is likely due to the Financial Action Task Force (FATF), but this pressure could be from the central banks.

Operational Risk
Regardless, the fourth crypto risk is operational risk. The authors take issue with the fact that cryptos use blockchains, quoting, “One of the key features of blockchain technology is its irreversibility. Once a transaction is recorded on the blockchain, it cannot be undone. This feature can be problematic in situations where transactions need to be reversed, such as in the case of a hack or fraud.” 

News flash: If crypto transactions could be reversed, then there would be no point in having crypto because governments, central banks, and Wall Street could manipulate it. Just like they do with money and other assets. In case it wasn't clear enough, they want to be able to do this with crypto, too. 

Disintermediation Risk
The fifth crypto risk is bank disintermediation risk. This includes both currency substitution and reserve currency substitution, which are significant concerns for the central banks. The authors admit that crypto could “..reduce the monetary authority’s control over liquidity in the economy, thus weakening the effectiveness of monetary policy…” 

The authors reiterate why people would substitute their fiat currencies with crypto. These reasons included not trusting the fiat currency, crypto being more efficient than fiat, and crypto being more private than fiat, which isn't accurate, at least in the case of cash. 

The reserve currency substitution section is where things get seriously bullish for crypto. They quote, “…if crypto assets become mainstream, they could also replace the global reserve currency as a perceived store of value…” The report denotes this substitution process as cryptoization 2.0. Put simply, the authors speculate that crypto could compete with reserve currencies, like the US dollar, if they see enough adoption.

The caveat is that they're saying this in the context of developing countries, where they think crypto will be used to evade capital controls. Even so, this pertains to something speculated about in a previous article about the BRICS countries.  It’s possible they could adopt a cryptocurrency as their common currency. The fact that BRICS’s current and future members fit the profile of the countries described in this BIS report underscores this possibility. 

Capital Flow Risk
The final crypto risk is capital flow risk, another big concern for the central banks. That's because crypto allows people to move their money around without asking for permission from Big Brother; that's not allowed in the modern financial system. The report’s authors are frustrated about the fact, quoting, 

“Crypto assets can operate offshore and hence beyond regulatory oversight. Crypto assets can be traded and stored on a global network of computers, often offshore servers and digital wallets, making it possible for them to operate beyond the jurisdiction of any one country.”

They're also upset that, quote, “…a person can create a digital wallet on a computer or mobile device and store crypto assets in it, without having to go through any formal registration process or identity verification.” Note that they want to connect all crypto wallets to digital IDs eventually. 

To drive the point home about crypto capital flows being a risk, the authors provide another statistic, saying: “One of the biggest Mexican crypto exchanges claimed that in the first half of 2022, it processed remittances for $1 billion in crypto assets, approximately 3.6% of the total flow in that period.” This is bullish for crypto.

Crypto Risk Connection To TradFi

This begs the question of how these crypto risks could spill into the traditional financial system. The third part of the report has all the answers from the perspective of the BIS. These are summarized in a single infographic (below) that shows the connection between crypto and TradFi. These include crypto to fiat, on and off ramps, stablecoins backed by government debt, etc. 

Source: BIS Papers: Financial stability risks from crypto assets in emerging market economies.pdf

What's crazy is that the authors suggest that even if crypto risks don't spill over into TradFi directly, they could spill over indirectly. The report states, 

“Disruptions in the cryptoasset market can potentially spill over to other financial markets through confidence effects. For example, a sharp drop in the value of crypto assets could erode investor risk appetite. This could lead to outflows from the traditional financial system and tighten financial conditions.”

Put differently, if the crypto markets crash, this could spook investors in TradFi, and that would cause issues; therefore, crypto must be regulated, contained, banned, etc.; it’s madness. It also makes no sense because the opposite is true; stocks influence crypto’s price action, not vice versa. 

Crypto Adoption In Developing Countries

All of these allegations about crypto risks could be intended to prime the reader for the fourth section, which is crypto adoption in developing countries. After all, if they believe crypto is so risky and harmful, they will need to ensure those unfortunate folks in the global South are extra protected. Quips aside, the authors detail four so-called risk catalysts for developing countries regarding crypto. 

1. Crypto adoption
2. Inflation and a lack of central bank credibility
3. Lack of payment infrastructure and financial literacy (Arguably not true)
4. A lack of crypto regulation (or rather, the lack of anti-crypto regulation that central banks want to see)

Recommendations For Controlling Crypto

Following a lengthy overview of all the crypto regulations in select North and South American countries, the authors provide recommendations about controlling crypto in the fifth part of the report. They start by saying that there are three approaches to managing crypto: bans, containment, and regulation. 

They say that many authorities have argued that crypto should not be regulated because regulations would give the industry a seal of approval that could lead to more adoption. Regulations mean institutions and institutions represent lobbying for better regulations. Believe it or not, the authors aren't in favor of a crypto ban because it would mean no oversight of crypto. They also do not favor containment, i.e., keeping crypto separate from the financial system, because they know secret connections would inevitably manifest. 

So, the one option remaining is to regulate crypto, specifically with the same risk and regulation principle. If you've read this article about crypto regulations, you'll know that this principle could turn crypto into another arm of the existing financial system, which would defeat its purpose. One of the entities pushing this principle the hardest has been the World Economic Forum (WEF), which the authors cite many times in this report. 

For developing countries specifically, the authors recommend they get their monetary business in order so that there's no incentive for crypto adoption. Indeed, if the central banks and governments manage their currencies properly, crypto probably wouldn't exist because it wouldn't need to exist. They only have themselves to blame at the end of the day, and with a bit of luck, crypto will force them to be somewhat more responsible going forward. 

What Does It Mean For Crypto?

What does all of this mean for the crypto market? In short, it's very bullish. The central banks are aware that crypto adoption is growing fast and is ultimately due to deficiencies in the existing financial system, which they know they probably can't fix. These deficiencies are especially acute in developing countries, and for good reason. 

The US dollar is the world's reserve currency, and it's used in up to 96% of international trade in some regions. Unless a country has many resources, it has difficulty getting its hands on US dollars. These countries can only get US dollars by requesting an IMF or World Bank loan. These loans come with many conditions, which are typically in favor of the US and US-based corporations. 

Now, the consequence of this is that these indebted developing countries just can't get ahead. As pointed out by macro analyst Lyn Alden, only a handful of developing countries have managed to become developed over the last 50 years. For the ones that manage, it was due to their natural resources, especially oil. Some of the only exceptions are South Korea and Taiwan,  both of which have received significant support from the US over the decades, probably for geo-political purposes. 

The rest of the developing world has been stuck in the same place, sometimes worse, and they're starting to understand why. Consider that even the BIS referred to "The global reserve currency in their cryptoization 2.0 prediction.” The keyword is ‘The’一it's singular. Logically, it's a reference to the US Dollar.  Assuming it is and probably is, the BIS’s cryptoization quote reads: "If cryptocurrencies achieve mainstream adoption, they could replace the US dollar as the world's reserve currency.” 

Now consider that this is something that many central banks could be interested in; remember that the BRICS are a thing. This would explain the somewhat paradoxical conclusions of the BIS report, which is to regulate crypto even though they know that it will inevitably result in more crypto adoption. 

When you combine this conclusion with the fact that the BIS will allow central banks to hold up to 2% of their balance sheets in crypto starting in 2025, you begin to realize that some central banks might be breaking ranks. In fact, it's possible they're all breaking ranks except the Federal Reserve. That would be truly something, wouldn't it? 

FATF Out To Get Crypto. FATF Travel Rule Expanded. What Does It Mean For Crypto? 

The Financial Action Task Force (FATF) has been making portentous noises about crypto in recent years, and several countries are getting antsy. The most prominent concern is implementing the “travel rule,” designed to force crypto companies to collect information about any transfer of digital assets worth more than US$1,000. Some countries, notably the UK, have in the past pushed back against this ‘recommendation’ from the FATF, but their resistance now appears to be wavering. The FATF is on the warpath and has crypto firmly in sight.

This article examines what the FATF is up to, what it could mean for your country, and what it all means for crypto. Although it may sound like more doom and gloom, there are reasons to believe that crypto could benefit from the FATF’s meddling in some ways.

Just recently, PayPal announced that it would prevent UK users from buying BTC until early 2024. PayPal reportedly did this because the Financial Action Task Force (FATF) so-called travel rule requires all crypto companies to collect detailed info about crypto transfers. The travel rule was set to go into effect in the UK on September 1st, 2023, and is being rolled out worldwide. This could have a profound impact on crypto companies and projects everywhere.

Image Source: Coindesk

What Is The FATF?

The Financial Action Task Force, or FATF, is an unelected and unaccountable international organization based in Paris, France. It was created by G7 countries in 1989 to combat money laundering, but its scope has expanded significantly since then. However, these recommendations have apparently done nothing to combat illicit financial activity over the last 30 years. 

The organization adopted a mandate in 2019 to “Combat any threats to the integrity of the financial system.” Of course, the FATF considers crypto a threat, probably because its purpose is to replace the financial system. The FATF started applying its so-called recommendations to the crypto industry in 2019, and any country that refuses to go along with these recommendations will find itself cut out of the international financial system. The FATF finalized its recommendations for cryptocurrency in October 2021.

FATF’s Crypto Recommendations

The FATF’s crypto recommendations involve labeling everything that doesn't involve a third party as “high-risk.” This includes holding your crypto in your wallet and sending crypto peer-to-peer. The FATF also considers any crypto privacy to be inherently high risk. If these recommendations are implemented as regulations, crypto will become another arm of the existing financial system. It will offer no financial freedom and no financial privacy. The only exception is NFTs, which are exempt from these recommendations for unknown reasons. 

On that note, you should know that the FATF crypto recommendations only apply to intermediaries working with crypto, which the FATF refers to as Virtual Assets Service Providers or VASPs. The FATF’s crypto recommendations do not apply to miners, validators, or crypto wallets, at least not yet. However, the scope of the FATF's requests seems to have expanded over time, so this could change. This expansion is especially true of the travel rule, which requires VASPs to collect KYC on everyone who buys or sells more than $1,000 of crypto. 

The Travel Rule Expanded

Crypto exchanges started collecting KYC in 2021. Since then, however, the travel rule has expanded to require VASPs to collect KYC-level information about crypto transfers to and from VASPs worth more than $1000. Note that it's not entirely clear when the scope of the travel rule was expanded. Research suggests this expansion happened after the FATF’s finalized crypto recommendations were published in October 2021. Some may recall that South Korean crypto exchanges started forcing users to provide KYC-type information for crypto wallet transfers in December 2021. 

Images source: Notabene

The good news is that some countries have pushed back against the expanded travel rule. You might remember that the UK announced that it would not force VASPs to track transfers to and from crypto wallets in mid-2022, stating that they did not pose any illicit activity risks. 

The not-so-good news is that these countries, notably the UK, seem to have pulled a 180⁰. As mentioned, the UK implemented this expanded travel rule starting September 1st. The announcement specified that it did this in response to a statement by the FATF in June 2023. The FATF announcement called on countries to implement its crypto recommendations as regulations “without delay.” Of course, this is not a recommendation; it's a demand. Comply with our crypto recommendations, or we will restrict your access to the global financial system. 

Some countries could not comply, so they had to ban crypto. Two countries that did this are Pakistan and Kuwait, both of which recently banned crypto in its entirety, citing the FATF’s crypto recommendations as the reason. It appears that the UK opted to comply instead. 

Image source: Notabene-Regulations 

Which Countries Are Now Affected 

So this begs the question of when the FATF's expanded travel rule is coming to your country. The answer depends on the country; a complete list of countries and their compliance with the expanded travel rule can be found on the website of Notabene, a crypto compliance company. If you look at the list, you'll notice that some have already implemented the travel rule. It shows that not all have implemented the expanded travel rule. You'll have to click the link on your country and look at the details. 

There's only one country we need to look at: the United States. That's because the US heavily influences the FATF. The travel rule has its roots in the United States’ Bank Secrecy Act. KYC, for financial transactions, originates in the infamous Patriot Act. The FATF’s finalized crypto recommendations were even co-authored by the US Treasury Department. As such, it's safe to assume that the FATF’s crypto recommendations are likely to mirror similar regulations that are being proposed or that have already been passed in the United States. 

The FATF's expanded travel rule seems rooted in an infamous FinCEN proposal from November 2020. The proposal was to lower the travel rule transaction threshold from $3,000 to just $250 and expand its scope to include any crypto transactions. This includes transfers between crypto wallets and VASPs, i.e., exchanges. There is also an outcry on the measure of invasion of privacy, 

Fortunately, this proposal has yet to be approved. Unfortunately, the US has influenced the FATF to implement this proposal in other countries instead. That's because the travel rule transaction threshold in jurisdictions like the European Union is $0, which the FATF suggested in its finalized crypto recommendations. This is more significant than you might think because it indicates the start of a very slippery slope. 

A Slippery Slope

First, the FATF just wanted VASPs to complete KYC on their users. Now, they want VASPs to get info on crypto transactions above a specific value. Eventually, they'll require VASPs to get information on all crypto transactions, and the countries that don't force VASPs to comply will be cut out of the global financial system. This ties into why some countries, such as Kuwait and Pakistan, ban crypto instead of complying with the FATF, like other countries, such as South Korea and the UK.  

The answer is likely because they lack the resources to comply with these recommendations. Take a second to consider that information about all these travel rule transactions will have to be shared with national regulators. In turn, these national regulators will have to make sense of this massive amount of information and understand which transactions could be illicit and which ones are legit. If they fail to do this to the standard that the FATF wants, they could just as easily find themselves on the FATF’s grey list or even black List. 

In other words, the outcome of attempting to comply will be almost the same as outright non-compliance. So why bother trying to comply? Not only that, but it's possible that the US would use this alleged non-compliance as justification to punish its geopolitical opponents. For context, it's believed that up to 40% of money laundering occurs in the United States, yet countries like the UAE are ending up on the FATF's naughty lists. 

Is it Geopolitical, for Profit, or Something Else?

Given this fact, one could argue that the primary purpose of the FATF is geopolitical, not regulatory. If this is the case, it's appalling because it means the US is using the FATF to push its allies to comply. Remember that the UK initially wasn't going to apply the FATF's expanded travel rule. This relates to why any country would take the risk of complying with the FATF crypto recommendations instead of just banning crypto. 

Some say the answer is probably profit. Crypto has unprecedented potential; dozens of countries are trying to capitalize on this by becoming crypto hubs. The paradox is that the FATF's expanded travel rule alone is likely enough to crush smaller crypto companies and startups. That's because they would need more financial resources to comply. This would mean that the large crypto companies left standing could become monopolies. 

At that point, it would be effortless for the FATF to expand the purview of its crypto recommendations again to outlaw self-custody, peer-to-peer transactions, and crypto privacy completely. Again, this would turn crypto into another arm of the existing financial system, making it much more dystopian. 

How Could It Benefit the Crypto Market?

The silver lining is that this outcome is years away from occurring and is not guaranteed. It could also benefit the crypto market in short to medium term. That's simply because institutional investors will likely invest more in crypto once all these FATF-based regulations are in place. This is because crypto would become ever so slightly more integrated with the existing financial system from a regulatory perspective. 

This means more crypto to fiat on and off ramps, more funding for crypto projects and companies, and more direct crypto investment. The consequence is that crypto would no longer become a niche asset class, making self-custody and peer-to-peer transactions more common. 

Under normal circumstances, this would result in an explosion of crypto-specific innovation, like new DeFi protocols, for instance. However, under the FATF's recommendations, any crypto projects or companies offering these innovations would be under extreme scrutiny. Unless they're perfectly decentralized, the FATF will label them all as VASPs and force them to comply with recommendations like the travel rule. 

Believe it or not, this will also benefit crypto because it will force new crypto projects and protocols to be as decentralized as possible to outmaneuver the FATF. This will be painful in the short term because crypto projects and companies are not very decentralized. An explanation of what it means to be genuinely decentralized can be found here.  

That said, if any genuinely decentralized crypto projects and protocols managed to gain significant adoption, the FATF would likely respond by further expanding the scope of its crypto recommendations. In a recent report, Notabene noted that the FATF left the door open to this possibility, citing,

“Transfers between self-hosted wallets, so-called peer-to-peer (P2P) transactions are not explicitly covered by AML/CFT rules. The FATF opens the door to a future paradigm change in case there is a distinct trend towards P2P transactions.” 

Translation: If actual cryptocurrency, that is, peer-to-peer trustless transactions, becomes too popular, then the FATF would respond by saying wallets that engage in crypto activities are high risk.  In practical terms, this could mean not being able to transfer crypto between such wallets and a compliant VASP. What's funny is that this would likely result in a parallel financial system, which is precisely the opposite of what the FATF is trying to achieve with its crypto recommendations.

On that note, fully decentralized crypto-based communities in social media, marketing, and digital broadcasting are rising and in the throes of building a parallel economy. Given the privacy and censorship issues of legacy social media, governments, woke agencies, and tech corporations, with their propensity to ban or suspend their services to individuals and companies that go against their narrative, have brought this imperative to the fore. 

Is the Crypto Industry Complying? 

So, what is the crypto industry doing about the FATF crypto recommendations? Well, at first glance, it looks like it’s complying; upon closer inspection, however, this compliance has been incredibly strategic. To explain, the crypto industry took its time complying with the FATF crypto recommendations. After all, compliance is an additional cost, and most countries were not pressuring them about compliance with the FATF until recently. 

There are technically no deadlines for compliance with the FATF’s recommendations. In theory, countries must apply the FATF recommendations within one year of their announcement. In practice, most countries don't. One expert explained that the travel rule was a bit of a myth. Just 10% had implemented the crypto travel rule in 2022, but in all fairness, this apparent non-compliance wasn't intentional. 

The FATF has constantly been adjusting its crypto recommendations to account for changes in the crypto industry. Everyone started taking them seriously only after the finalized crypto recommendations were published. This includes the crypto industry, which, according to Notabene’s survey, “seemed willing to adopt the travel rule in January 2022.” By then, some of the biggest entities had already started exploring travel rule compliance, like USDT issuer Tether and its sister exchange Bitfinex working with Notabene. 

Here's where things get interesting: Notabene, the crypto compliance company, has been referenced by the FATF on a few occasions. This is surprising, considering that the company has received most of its funding from the crypto industry, according to Crunchbase. 

Also, according to Notabene, the criteria used to determine which crypto transactions are considered high-risk from the FATF's perspective is determined by blockchain analytics companies, not Notabene itself. The largest is Chainalysis, which is very pro-crypto. In fact, Chainalysis pushed back against the FATF’s crypto recommendations when they were first proposed in 2019.

The institutions the FATF relies on to implement its crypto recommendations are all pro-crypto. To put things into perspective, companies like Notabene and Chainalysis have been advising governments and regulators. Put another way, the impact of the FATF crypto recommendations may not be as anti-crypto as they intend them to be because all the institutions required to implement them are pro-crypto. It's not just private companies; some countries are also trying to protect crypto. 

Crypto Privacy in Jeopardy?

There's only one place where the FATF could still cause a problem: privacy. As most of us know, financial privacy is required for financial freedom. You can be coerced in many ways if every transaction is tracked. e.g., by punishing the people you transact with.  Logically, it will be challenging for pro-crypto compliance companies and countries to defend crypto privacy from the FATF. This will be practically impossible when the FATF decrees that any exchange offering privacy coins is inherently non-compliant. It could result in the elimination of crypto privacy altogether. 

Some would say the recent sanctions against Tornado Cash are a prelude to the FATF's next moves. Luckily, the crypto industry has been working on a solution, too. Notably, the FATF claimed that there had been a considerable move towards privacy in crypto in its finalized recommendations, stating, “During recent FATF consultations, the industry highlighted data protection and privacy (DPP) issues as key considerations for travel rule implementation…. Going forward, FATF will continue to monitor these issues to ensure data privacy and other similar issues do not present barriers to implementation.”

Image source: Cointelegraph 

Crypto Privacy Predestined – The Solution

Besides the many crypto projects like Ethereum trying to preserve privacy through cutting-edge technology, like zero-knowledge proofs, Bitcoin has also been subtly working on privacy-preserving technology. The Taproot upgrade is one protocol developed in November 2021. 

One of the things Taproot did was introduce Key Aggregation with Schnoor Signatures. Put simply, it made every single Bitcoin transaction look like a regular transaction. This move means that transactions involving multisig wallets resemble regular transactions on the blockchain. It’s significant because multisig wallets are required for Atomic Swaps, i.e., swapping BTC for a crypto coin on another blockchain. Incidentally, Monero developers finally found a way to execute swaps between BTC and XMR in August 2021. 

Taproot means these swaps are now theoretically undetectable. Multisig wallets are also required for the lightning Network, Bitcoin's most significant Layer 2 protocol. As it so happens, US authorities offered bounties to anyone who could track XMR and Lightning Network transactions in September 2020. This implies that the Lightning Network has similar privacy levels to Monero. 

Interestingly, the three Bitcoin Improvement proposals that make up the Taproot upgrade, including Schnoor Signatures, were all proposed in January 2020, shortly before the first countries started implementing the crypto travel rule. Is this a coincidence, or perhaps something more? 

Image source: GitHub

Anyway, speculation aside, it's clear that crypto privacy is inevitable because nobody wants privacy more than high-net-worth individuals. When these investors get involved during the next crypto bull market, there will definitely be calls to increase crypto privacy, and many will be answered. Additionally, if these calls don't come from the 1%, you can bet they'll come from the central banks that will start accumulating crypto in 2025. 

The regulated crypto space will likely grow, but the unhosted ecosystem will remain a niche area with significant development and innovation. The crypto and blockchain projects that uphold the interests of entrepreneurs and advocate for free and critical thinking are paving the way and developing ecosystems that will have the financial freedom, liberty, and sovereignty that is fundamentally our right of passage, which seems to be all but forgotten by the monopolies and so-called authorities and their mandate to capture the crypto industry. 

Redefining Marketing: Markethive Leads in the Inbound Marketing Era

Staying ahead of the curve is crucial in the dynamic and ever-changing business world. In the modern business landscape, innovation and technology act as guiding forces, shaping how companies engage with their audiences and forge connections. In this era of constant evolution, a powerful synergy has emerged between two groundbreaking concepts: inbound marketing and blockchain technology. This convergence is rewriting the rules of engagement and presenting companies with unprecedented opportunities to carve out a competitive edge.

Gone are the days when traditional marketing methodologies ruled the roost. The one-size-fits-all approach of old-school marketing campaigns is gradually being replaced by a more interactive, personalized, and customer-centric approach. Inbound marketing is not just a strategy; it's a philosophy that revolves around attracting, engaging, and delighting customers by delivering valuable and relevant content. It's about creating a genuine connection with your audience, addressing their pain points, and offering solutions that resonate personally.

Amidst this transformative landscape, a standout player emerges: Markethive. This innovative ecosystem stands at the crossroads of the inbound marketing revolution and the blockchain evolution. Markethive's unique proposition lies in its ability to seamlessly fuse the principles of inbound marketing with the cutting-edge potential of blockchain. By doing so, it offers a comprehensive system that empowers businesses to connect with their target audience and build lasting relationships based on trust and transparency.

As we embark on this journey through the eras of marketing, from the traditional approaches of yesteryear to the revolutionary paradigm of today, we'll delve deeper into the facets that make Markethive a trailblazer in this space. We'll explore how its state-of-the-art technology and commitment to blockchain integration position it as a force to be reckoned with in the marketing world. So, fasten your seatbelts as we navigate through the intricacies of modern marketing evolution and the exciting possibilities that lie ahead, with Markethive leading the way.

The Dynamic Evolution of Marketing Strategies

Delving into the ancient history of marketing unveils a fascinating narrative of transformation and adaptation. From the early days of universal billboards and broadcast commercials to the sophisticated era of inbound marketing, marketing strategies have been a journey of innovation, trial, and refinement. What began as a shotgun approach, characterized by mass advertising and outbound messages, has now matured into a nuanced dance of personalized engagement and interactive storytelling.

Cast your mind back to the days when marketing was synonymous with loud, one-sided conversations. Brands would deliver their messages from billboards, TV screens, and radio waves, hoping to capture the attention of a broad audience. This hit-or-miss approach often left consumers feeling like passive recipients of information rather than active participants in a meaningful dialogue. These tactics' lack of customization and relevance underscored a glaring disconnect between brands and their increasingly savvy and selective audience.

But then, the winds of change swept through the marketing landscape. Inbound marketing emerged as a beacon of customer-centricity, altering the course of how businesses connect with their potential customers. This paradigm shift responded to the changing dynamics of consumer behavior and preferences. Modern consumers no longer want to be bombarded with messages; they crave valuable insights, personalized experiences, and genuine connections.

Inbound marketing is a philosophy that turns the tables on traditional approaches. Instead of flooding the masses with messages, inbound marketing seeks to attract, engage, and delight potential customers through meaningful interactions. It's a strategy rooted in empathy, understanding, and value creation. By delivering content that addresses their target audience's specific pain points and interests, brands can establish themselves as trusted advisors rather than mere promoters.

The beauty of inbound marketing lies in its ability to align seamlessly with the evolving preferences of modern consumers. It's not about pushing products; it's about forging connections. It's not about one-size-fits-all; it's about tailoring experiences. In an age where consumers have the power to filter out unwanted noise, inbound marketing opens the door to authentic conversations and valuable exchanges.

As we navigate through this dynamic evolution of marketing strategies, it's clear that the journey is far from over. The landscape continues to shift, driven by technological advancements, changing consumer behaviors, and societal trends. But one thing remains certain: the heart of effective marketing beats to the rhythm of connection, relevance, and engagement. As we embrace this new era of marketing, one thing is for sure: the consumer is at the center, and the businesses that listen, adapt, and engage are the ones that will thrive.

The Power of Inbound Marketing

Imagine a world where businesses aren't just vying for attention with flashy ads and intrusive pop-ups, but rather, they're earning attention by offering solutions to real problems. That's the essence of inbound marketing. By crafting content that addresses pain points, answers questions, and gives insights, businesses become more than just sellers; they become trusted sources of information and assistance.
 
The transformative power of inbound marketing becomes even more pronounced in today's digital age. Thanks to the rise of social media, businesses now have direct access to their audience, enabling authentic interactions and meaningful conversations. No longer are companies limited to a one-way communication channel. Instead, they can engage, listen, and adapt in real-time. This has ushered in a new era of marketing where feedback isn't just welcomed; it's actively sought after.
 
But the impact of inbound marketing isn't solely about engagement; it's about building relationships. When content resonates with the audience, it sparks a connection beyond transactional exchanges. It establishes a bond based on shared values, common interests, and a genuine understanding of the audience's needs. This connection drives customer loyalty and advocacy, turning satisfied customers into brand ambassadors.
 
Consider the scenario where a fitness enthusiast comes across a series of blog posts from a sportswear brand. These posts provide workout tips, nutritional advice, and success stories from fellow enthusiasts. By offering this valuable content, the brand positions itself as more than just a seller of athletic wear; it becomes a partner in the journey towards a healthier lifestyle. This emotional resonance is what sets inbound marketing apart. It creates a narrative that customers want to be a part of.

Markethive's Innovative Approach

At the crossroads of innovation, where the worlds of inbound marketing and blockchain technology converge, lies Markethive, a platform that is rewriting the rules of engagement. It's not just a platform; it's a visionary approach that melds the power of inbound marketing, the potential of blockchain technology, and the strength of a vibrant community, all fueled by its very own cryptocurrency, ‘Hivecoin.’ This cryptocurrency isn't just a digital token; it's a symbol of collaboration and a medium of exchange for ideas, services, and value.

Visualize a terrain where traditional marketing techniques are no longer sufficient, customer relationships are not just transactions but genuine connections, and security and transparency are paramount. This is the landscape that Markethive is helping to shape, offering a fresh perspective on how businesses can interact with their audiences.

Inbound marketing, the heartbeat of Markethive's strategy, is all about creating meaningful interactions. It's a departure from the one-way communication of old marketing methods. Instead, it's a conversation, a dialogue, and a relationship-building endeavor. Markethive recognizes the power of this approach and has harnessed it to its fullest potential. Through the platform's array of tools and features, content creation becomes an art, and engagement transforms into a science.

But Markethive doesn't stop there. It goes further, embracing blockchain technology and redefining the foundations of trust and security. Blockchain, often associated with cryptocurrencies, is more than that; it's a technology that brings accountability and immutability to the digital world. Markethive seamlessly integrates blockchain's capabilities, ensuring that data remains private, transactions are tamper-proof, and interactions are verifiable.

What sets Markethive apart is its community-driven ethos. It's not just a platform for marketers; it's a living, breathing ecosystem where individuals with diverse talents and goals come together to thrive.

So, when you look at Markethive, you're not merely seeing a platform; you're witnessing a paradigm shift in how marketing, technology, and community intersect. It's a place where creativity meets security, transactions are infused with trust, and a global community comes together to shape the future of engagement. This is Markethive, an innovative fusion of ideas, technology, and humanity, redefining how we approach marketing and community collaboration.

The Multifaceted Advantages of Markethive

When exploring the advantages that Markethive brings, one quickly realizes that this platform is a true game-changer in more ways than one. Beyond its surface appeal, Markethive's multifaceted benefits resound through the core of modern marketing and networking dynamics. In this era where data is as precious as gold, Markethive harnesses the power of blockchain technology to provide a level of assurance and security that is nothing short of revolutionary.

In a world with its fair share of data breaches and privacy concerns, Markethive stands tall as a fortress of data security. The seamless integration of blockchain technology within the platform serves as a reassuring shield, safeguarding user information against the prying eyes of malicious actors. The inherent transparency and immutability of blockchain deter unauthorized access and offer users the peace of mind they deserve. This is more than just a feature; it's a testament to Markethive's commitment to building a haven for its users.

Beyond data protection, Markethive takes decentralization to a whole new level. In an age where governments use businesses to dictate the rules of engagement and achieve their control agenda by proxy, Markethive flips the script. The decentralized structure of the platform puts the reins back in the hands of the users themselves. No longer confined to the dictates of third parties, users are empowered to direct their interactions, forging connections on their terms. This enhances user autonomy and ushers in an era of authentic engagement.

One of the most intriguing facets of Markethive's approach is its ingenious way of turning content creation and sharing into a rewarding endeavor. In a landscape where attention is a currency, Markethive elevates this concept by enabling users to monetize their contributions. Imagine earning tangible rewards for sharing your insights, creating content, and engaging with a community that values your input. Markethive transforms your actions into currency, making every interaction a step towards potential earnings.

Markethive is a game-changer because it's powered by the strength of people coming together. The company is on a mission to give you an edge that's seriously unfair in the best way possible. Imagine being part of a movement that reaches billions through social networks and gets you top-notch SEO results in a snap. That's the kind of power we're talking about.

The system is jam-packed with features that are designed to help you succeed. The autoresponders here are even better than what you'd find in popular services like Aweber, and the capture page technology is out of this world, ensuring you capture leads like a pro. And speaking of leads, there are widgets that make subscription a breeze for your capture pages and WordPress sites.

The blogging systems are designed for massive reach. Your visitors can easily subscribe and spread the word through their social networks. And there’s an auto-posting feature; we're talking about reaching millions, even billions, on platforms like Facebook, LinkedIn, Instagram, and more. Results? Yep, you're gonna see them with mind-blowing ROI.

Inbound marketing is the way to go. More than 90% of your potential customers search the web, and a whopping 80% of their purchasing journey happens before they even contact you. That's where Markethive comes in, helping you understand your customers and guiding them straight to your website. Attract leads, nurture them, and turn them into loyal customers. That's the power of inbound marketing. And with Markethive, you're not just getting a platform but becoming part of a movement. Several other services are in the works, so whether you're starting or ready to take your business to the next level, Markethive is here to support you. Your success is our success, and with Markethive, you've got a partner who's got your back every step of the way.

It's worth noting that the extensive censorship on various social media platforms and the concerning actions of governments that seem to limit people's freedoms, Markethive provides an exciting solution. Markethive creates an environment where people can truly express themselves without fearing censorship or suppression. This merging of ideas and technology promises to allow individuals to communicate, connect, and collaborate without facing the hurdles often accompanying the virtual landscape.

Markethive aims to establish a space where creativity and dialogue can flourish unhindered, promoting an atmosphere of openness and unrestricted exchange of thoughts and ideas. By acknowledging the concerns surrounding censorship and the desire for personal freedoms, Markethive is positioning itself as a potential solution, offering a platform that aspires to preserve the essence of free expression in an ever-evolving digital world.

Navigating the Future

As digital marketing has become essential in today's business environment, businesses constantly seek efficient ways to reach their target audiences—Markethive steps in by offering a suite of inbound marketing tools designed to address these challenges head-on. Unlike traditional outbound marketing, where messages are pushed to consumers, inbound marketing focuses on attracting potential customers through valuable content and experiences.
 
Markethive's arsenal includes systems and tools like blogs, email autoresponders, e-commerce stores, banner advertising, press releases, boost, video advertising, broadcasting, franchised news sites, and analytics that empower businesses to craft engaging content and strategically share it across various platforms.
 
Businesses can streamline their marketing efforts and achieve a more significant ROI by offering a comprehensive toolkit that covers content creation, social media management, analytics, and community engagement. This approach aligns well with consumers' evolving preferences, who value authenticity and personalized interactions.
 
One of Markethive's standout features is its emphasis on community building. Businesses can thrive by connecting with like-minded individuals, networking within their industry, and fostering meaningful relationships. This communal approach enables trust and credibility, which are crucial components of successful marketing campaigns.
 
Markethive's potential to surpass the tech giants lies in its commitment to addressing the pain points of modern marketing. Markethive's innovative solutions have the potential to propel it beyond Facebook, Twitter, and LinkedIn. Its focus on inbound marketing, community building, and blockchain technology sets it apart as a platform that understands and addresses the evolving needs of businesses in the digital age. As we navigate the future, it's exciting to witness how Markethive could reshape the landscape of social media and marketing.

Final Thoughts

Markethive is like a fresh breeze in the world of marketing. It's an ecosystem that mixes modern marketing ideas with the power of blockchain technology. This lets marketers do their thing, keep their data safe, and make real connections. Markethive is all about changing how we do marketing, and it's a sign of how new and exciting ideas can shape industries for the better.
 
The company's unique positioning as a pioneer in this space underscores the platform's commitment to reshaping marketing practices for the better. As we look ahead, it's clear that the fusion of these dynamic forces will define the trajectory of marketing in the digital age, and Markethive is the pioneering force.

United Nations' Insane Attempt At Global Digitization: A Plan To Control And Profit

For most of us, it feels like digitization has already permeated every aspect of our lives, whether we like it or not. Some, most notably UN Secretary-General António Guterres, believe digitization is nowhere near the worldwide goals needed. The world must be digitized as quickly as possible, ideally no later than 2030. 

As we didn’t vote for this, all we can do as citizens is forward petitions to governments opposing this invasion of privacy and top-down control. More often than not, it seems to fall on deaf ears as the politicians supposedly working for the people are getting orders from corporate lobbyists or unaccountable and unelected international organizations, not their citizens. 

The United Nations is one of the most influential of these organizations, and it recently released a plan for a “Global Digital Compact” that governments will soon agree to. This article summarizes these digital plans, when they’re expected to be finalized, and what we can do to stop them. 

The report is titled “A Global Digital Compact – an Open, Free and Secure Digital Future for All.” It was published by the United Nations (UN) in May 2023 after almost four years of work. 

 
Source: A Global Digital Compact.pdf. 

Incidentally, in a speech that António gave at the World Economic Forum’s (WEF) Davos meeting in January 2023, he confirmed that the WEF and its affiliates have been forcing the UN's Sustainable Development Goals or SDGs using the Environmental, Social, and Governance or ESG investment trend. In other words, the WEF is effectively the arm of the United Nations. 

The good news is that the private sector isn't too keen to go along with the UN these days, per António's admission. The bad news is that the public sector is still very much on board, and António instructed the politicians at the WEF to ignore the opinions of their populations when implementing the UN's policies. 

The fact that the public sector is still on board means that some of the UN's policies could still be implemented. If you want a sense of what these policies will look like, consider that the UN recently took over the EU's pandemic passport to develop what is essentially going to be a global digital ID. The continued influence of the UN in the public sector is why it's prudent to summarize its recent report. It's necessary to know what they're planning and when they want to implement it if you want to sidestep or even stop it.

Report’s Brief Introduction

António himself apparently wrote the report; however, given the detail and scope of these initiatives and reports, many would find that very hard to believe. It's more than likely that someone is advising António, and it's possible he didn’t write these reports at all.

Speculation aside, the report begins with a brief introduction. In the first few sentences, António reveals that the proposals in this report are expected to be approved and adopted by global governments at the Summit of the Future in September 2024. He also reveals that he is behind the broader UN initiative this report is related to. 

Antonio underscores that all the policies in this report are intended to help achieve the UN's SDGs. For context, the SDGs are a set of 17 milestones that every country is supposed to meet by 2030. The SDGs are the origin of digital IDs, CBDCs, and that 2030 date you see everywhere. 

António explains that these policies can only be achieved with the help of so-called stakeholders. A word that effectively refers to the world's most powerful individuals and institutions. Note that private sector stakeholders want profits, and public sector stakeholders want to control. This is why both parties are obsessed with digitization. Plugging everyone into the system increases profits and makes it easier to control them. 

António laments that some people aren't as plugged in as others and implies that this is why inequality is growing around the world. Some would say that inequality is increasing because central banks and governments are lining their pockets and the pockets of their cronies using money printed out of thin air or taken from the average person via taxation, but that's a topic for another time. 

António also laments the fact that new and innovative technologies such as AI and crypto are not being sufficiently governed, that is, controlled. He applauds the digitization that resulted from the pandemic and implies that this is the direction the world should go in. António ends the introduction by saying, "Global digital compact is necessary to achieve the governance required for a sustainable digital future.” 

By now, you'll know that governance means control, and you'll also notice that António threw the word ‘sustainable’ in there out of nowhere. This could be a subtle reference to the individual carbon credit score system the UN is trying to set up.  

Requirements For Global Digital Cooperation

The first part of the report is about the requirements for global digital cooperation. António explains that it requires having a set of shared goals, and wouldn’t you know it, the SDGs are highlighted in blue. 

Source: A Global Digital Compact.pdf. 

António stresses that we must fully digitize the remaining 2.7 billion people ASAP. Notably, more than 1 billion are children. He acknowledges that not everyone wants to be part of the system and says that a “demand pull” is also needed and that this is where the public sector can play a role. He explains that they can do this by making things like digital ID mandatory to access Public Health Services. António includes schools and cultural services, which begs the question of whether we’ll eventually need to show a digital ID to get an education or practice religion. 

António calls on both the public and private sectors to make all their data accessible so that the UN can keep track of how close countries are to meeting the SDGs. He admits that the UN’s progress towards achieving 41% of the 92 environmental SDGs indicators cannot be globally measured due to a lack of interoperable data and standardized reporting. In other words, the UN has struggled to assess whether countries have achieved 41% of the SDGs by 2030.

Image source: UNStats.com

He then pivots to a topic he's been passionate about on X lately: Online Safety, AKA censorship. He says, “Open, safe, and secure use of the internet is slipping away from us, potentially, permanently.” He blames this on disinformation, hate speech, and the like. Antonio acknowledges that some countries have taken steps to censor the internet but says this isn't enough. He says the governments need to get more involved, both online and in the real world, and that they should crack down on hate speech. He also says that the “Global nature and infrastructure of the internet needs to be protected.” 

This is reminiscent of something António said in his speech at the WEF. He fears that the internet is splitting in two: A censored internet in the West and a censored internet in the East. Meanwhile, regarding AI, António says that the rapid advancement of technology is making governance, AKA control, very hard for the UN and its affiliates and that AI has put this on full display. 

Naturally, António is upset that AI is making it possible to generate so much content. “Imagine the disinformation”, he says. António does acknowledge that AI can be beneficial, but only if it is sufficiently controlled. He reveals that the UN has already been working with AI experts to assess how it can be controlled and how to make sure that it can always be shut down.

Lastly, António says that the “Arc of Innovation” needs to be bent toward solving societal problems and global challenges. Translation: AI needs to be used to manage the peasants. He says that governments need to be involved because businesses won't do this on their behalf. Some would say that some companies are doing the bidding of UN-controlled governments already, but let's not go there. 

Digitization Approach Similar To Climate Crisis?

The second part of the report is about the Global Digital Compact António is obsessed with. He starts by saying that digitization should be addressed in a manner similar to the climate crisis. This is quite concerning as it implies lots of regulation, intervention, and restriction of the internet. It would be ludicrous if they swapped out the climate crisis with some sort of AI-driven digitization crisis, but that would never happen, would it?

Speculation aside, António explains that the global digital compact he envisions adheres to the UN's SDGs, and the purpose of the compact would be to ensure that the SDGs are met. He hints that this will require “New governance arrangements.” In other words, more shady organizations. 

On a curious note, throughout the report, António refers to countries as “states,” presumably a term in the global government structure the UN is apparently trying to create. Antonio reveals that the UN is already actively discussing digitization with the states.

Member States of the UN

The Global Digital Compact Objectives

António then lists the global digital compact's objectives and the actions stakeholders should take to ensure these objectives are met. The first objective is to plug everyone into the matrix, and António provides a long list of measures, including subsidies and $100 billion of funding to this end. 

The above ties into the second objective: to invest heavily in digitization and “develop environmental sustainability by design and globally, harmonized digital sustainability standards, and safeguards to protect the planet.” It's a word salad that sounds like total control of digital technologies. 

The actions António recommends include money, money, and more money. They also encompass sharing data so the UN can finally start tracking how far along countries are in meeting the SDGs. For reference, there are only seven years left. It's safe to say that it's not looking good. Maybe they'll just rebrand like they did when their Millennium Development Goals failed due to the 2008 GFC.  

The third objective is to end the “gender digital divide” and to ensure that labor rights are adhered to online. Like all vague and ambiguous objectives, the actions required to meet them include some seriously dystopian stuff, including creating a dedicated UN government body in every country. 

The fourth objective is to ensure the internet remains open, secure, and shared. António's actions include avoiding blanket internet shutdowns but managing dissent or opposition. He suggests that governments use “targeted measures” instead.

This relates to the fifth objective: to address disinformation, hate speech, and the like to develop “trust labels and certification schemes” and to ensure that gender is included as a part of every digital policy to ensure absolute equality. Antonio proposes a long list of actions here, the most important of which is establishing a global code of conduct to ensure that the internet is policed correctly in every corner of the planet. After all, if there is a place where free speech still exists, opposition to the UN and its allies could start to spread. We can't have that, can we?

The sixth objective is to ensure adequate data governance, i.e., control. Actions include ensuring that all data is interoperable because nothing says privacy, like sharing your most sensitive data with every corporation, government, and organization on the face of the Earth. 

The seventh objective is to ensure adequate control of AI. Actions include “Urgently launching a global body that will regulate all of the AI in existence and any new AI that emerges.” António mentioned the UN half a dozen times, at least in this section. It sounds like they bought into the AI boom. 

The final objective is to ensure all other targets are met under the UN's SDGs. If you read through the report, you’ll see that António used “I” rather than “we” when recommending what action stakeholders should take to ensure these objectives are met. Those who often read reports may know this is rare in accounts by any organization. Some would say it speaks to the size of António's ego. 

Implementation Of Global Digital Compact

In any case, in the next part of the report, António discusses the actual implementation of the global digital compact. He starts by saying that various stakeholders will be responsible for different tasks. He then provides a long list of UN entities to assist with implementation. Oddly enough, António doesn't believe these existing UN entities are sufficient. He reveals that he wants to establish an annual digital corporation forum after all the world's governments agree to the global digital compact at the Summit of the Future in September 2024. 

What's hilarious is that he doesn't even ask for feedback about this idea. He literally says that he's just going to go ahead and start planning the agenda for this new forum. Would-be members of the forum already have homework. Every year, they will write an extensive report about digitization for the UN. 

António concludes the report by recounting how the UN began this digitization initiative four years ago and how he released an initial roadmap for it two years ago. A partial timeline is illustrated in the image below. Note that it doesn't end with that event in 2024. It ends with the World Summit on the Information Society review in 2025 instead.

 
Source: A Global Digital Compact.pdf. 

António then declares,

“The time for talking about the need for digital cooperation has long passed. We need to focus on how we make this a reality. We need to act now, and with speed, if we are to recover the potential of digital technologies for the equitable and sustainable development that is slipping away from us and the planetary crisis that confronts us.”

The remainder of the document provides a list of all the different UN entities and stakeholders involved in this particular initiative. Most people, including me, do not recognize any of the key players in the infographic (shown below), and many critical thinkers opine that the rabbit hole runs right to the center of the earth with each one. 

Source: A Global Digital Compact.pdf. 

How Do We Stop This Global Takeover?

So the big question is how to stop this Global Digital Compact. The answer could be as simple as letting history run its course or as complex as convincing public institutions to steer clear of it. The simple answer is to reference all the countless UN initiatives that never came to pass. As you can imagine, coordinating hundreds of institutions and thousands of individuals can be challenging. Everyone must be on the same page, or they won’t meet their international goals. After all, the world is pretty fragmented right now, and that's why António is so frustrated. 

Internationally, the global South is slowly cutting itself off from the global North. Domestically, political tensions are rising fast, and UN-affiliated ideologies are quickly becoming unpopular. In this climate, it's impossible to achieve widespread consensus. The fact that some of the UN's initiatives are bad for the average person makes the presence of countries not conforming to an agreement a problem. That's because regular folks will be able to compare outcomes and see what effects the UN has. And if we end up with some kind of financial crisis, it's guaranteed that the UN's Global Digital Compact or the SDGs will be of insignificant value. 

Consider that the 2008 financial crisis stopped the MDGs dead in their tracks. They were also on year eight of a 15-year journey. It would be uncanny if history repeated itself this year. But let’s play out a scenario for the sake of entertainment. Let's assume the UN somehow gets all its ducks in a row. In this case, convincing public institutions to defect from its digitization agenda will be extremely difficult. 

The UN can pressure them to comply using other public and private institutions. Some of the UN's digital initiatives, such as CBDCs, may appear appealing to the average person initially, which means there's likely to be lots of voluntary adoption at the outset. It's not until later that the populace will realize that they've sleepwalked into digital slavery. 

As such, the only solution would be to create an alternative system or help existing alternative systems grow. This is what the UN fears the most, especially when this alternative system consists of rapidly evolving technologies, such as ethical AI and cryptocurrency. 

Indeed, the fact that the UN fears these kinds of technologies proves that these technologies are a part of the solution. If the UN gets its way, it could also become a part of the problem. Thankfully, technology evolves much faster than the United Nations and is also much humbler than the UN's head honcho, so it's implausible that the stratagems of these self-serving globalists will reign. 

The great reset/agenda 2030 is falling apart, so always seek the truth and share it. The elites will try and take control by putting us in de facto digital prisons with CBDCs and digital IDs, but alternatives exist and are evolving. They will prevail if they're promoted, adopted, and crowdfunded.

Cryptocurrency will play a critical role in this decoupling between the average person and the corrupt institutions that rule them. Success is not guaranteed, but the pendulum is swinging toward freedom. The UN/WEF's self-confidence is waning as its stakeholders and countries realize how out of touch they are with ordinary people like us, so let's keep that momentum going.