👀 US attempt to block CBDCs

Talking points

👀 Quick market outlook

The days continue to countdown to the Bitcoin halving which still seems to be the narrative behind the next major market rise. But what should be expect over the next few months?

Let's jump into some analysis 👇

It seems we could see a low between $20k - $24k on Bitcoin for 2024 before starting to move up and that could potentially be a good time to accumulate if we see it. But as always, nothing is guaranteed, so have a plan and be safe.

🚨 Mark Cuban's $900k wallet drained

Billionaire investor and owner of the Dallas Mavericks, Mark Cuban, recently found himself in the midst of a crypto security breach that reportedly drained nearly $900,000 from one of his hot wallets.

The alarm bells began to ring when an independent blockchain investigator, known as Wazz, spotted unusual activity in Cuban's wallet. What raised eyebrows was the fact that Cuban had not interacted with this wallet for approximately five months.

A deep dive into the transaction history on Etherscan revealed that a series of assets, including USDC , Tether , and Lido Staked Ether , had been swiftly withdrawn from the wallet within a mere 10-minute window. The situation escalated as an additional $2 million worth of USDC was withdrawn and transferred to a different wallet. At this point, Wazz speculated whether Cuban might be in the midst of a significant asset shuffle.

However, Cuban himself shed some light on the situation when he confirmed to DL News that he had accessed his MetaMask wallet for the first time in months. He vaguely alluded to the possibility that the hackers had been watching and waiting for the opportune moment to strike.

In response to the breach, Cuban took swift action to safeguard his remaining assets by transferring them to Coinbase Custody, essentially verifying that the $2 million USDC transaction was indeed initiated by him.

The crypto community was abuzz with theories surrounding the incident. While some conjectured that Cuban might have inadvertently authorized a malicious transaction, others pointed to the possibility of a compromised private key, given that the funds were directly siphoned out of the wallet.

This isn't the first time Mark Cuban has encountered turbulence in the crypto market. In June 2021, he suffered losses in what he referred to as a "rug pull" when the algorithmic stablecoin project Iron Finance collapsed amidst claims of a bank run.

The incident serves as a stark reminder of the ever-present risks associated with the crypto world, even for high-profile investors like Mark Cuban. Remember that there are always vulnerabilities, so staying up to date and protecting your assets is more vital than ever.

👀 US attempt to block CBDCs

In a significant move, the United States House Financial Services Committee is pushing ahead with legislation designed to address the issuance of a central bank digital currency (CBDC).

Chairman Patrick McHenry recently announced that the Committee is scheduled to mark up two bills related to a potential digital dollar on September 20th, marking a critical step before these legislations progress to the House floor.

One of these bills, known as the Digital Dollar Pilot Prevention Act or H.R. 3712, aims to prevent the Federal Reserve from initiating pilot programs for testing CBDCs without prior approval from Congress. Introduced by Representative Alex Mooney in May, this legislation seeks to establish a clear protocol for CBDC exploration.

While the Federal Reserve has stated that it will only proceed with a CBDC issuance under an authorizing law, there have been hints of ongoing preparation. The Federal Reserve of San Francisco has been actively seeking technical expertise for a CBDC project in recent months, suggesting that the concept of a digital dollar remains under consideration.

The second piece of legislation proposes an amendment to the Federal Reserve Act. It prohibits Federal Reserve banks from offering specific products or services directly to individuals and restricts the use of CBDCs for monetary policy and other purposes.

The bill explicitly states, "A Federal reserve bank shall not offer a central bank digital currency, or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary."

The idea of a digital dollar has sparked vigorous debate in the United States. Notable figures, including presidential candidates Robert F. Kennedy Jr. and Ron DeSantis, have voiced concerns about the potential establishment of a CBDC, citing worries over financial privacy.

On the other side of the spectrum, proponents of CBDCs argue that it could help the United States maintain the global relevance of the dollar and foster wider adoption of cryptocurrencies.

As the legislation moves forward, it is clear that the fate of a digital dollar in the United States remains uncertain, with divergent opinions on its potential implications and benefits. The upcoming markups and discussions in the House Financial Services Committee will undoubtedly play a pivotal role in shaping the future of CBDCs in the country.

🖼 Animoca Brands targets Bitcoin network

Animoca Brands, a prominent player in the crypto gaming and metaverse investment realm, has unveiled plans to introduce a metaverse ecosystem token on the Bitcoin (BTC) network.

This exciting development, as detailed in a recent press release, will be facilitated through the Ordinals protocol, a creation of Darewise Entertainment, a subsidiary of Animoca Brands.

Under the banner of Life Beyond Studios, Darewise Entertainment has set its sights on establishing a metaverse ecosystem centering around Bitcoin Ordinals. The Ordinals protocol empowers users to record NFT-like assets on the blockchain while enabling the creation of BRC-20 tokens on the Bitcoin network.

This metaverse vision encompasses immersive gaming experiences, brand integrations, real-world connections, and more. Notably, the forthcoming game, "Life Beyond," is set to be among the pioneers in integrating the newly introduced Bitcoin-based metaverse token for in-game assets and virtual lands.

While Life Beyond has previously ventured into gaming NFTs on the Polygon scaling network, this marks the studio's exciting entry into the Bitcoin ecosystem. The token itself is poised to serve as the primary currency within the Life Beyond universe, facilitating transactions involving in-game assets and virtual lands.

Yat Siu, co-founder and executive chairman of Animoca Brands, expressed his enthusiasm, stating, "With the advent of the Ordinals protocol, we're witnessing a pivotal moment for Bitcoin as it extends its reach and introduces the concept of culture."

To bring this innovative Bitcoin token to life, Darewise Entertainment is partnering with Horizen Labs, a company renowned for its expertise in smart contract development and token strategies. Horizen Labs notably contributed to the creation of ApeCoin (APE), an Ethereum-based token associated with the popular Bored Ape Yacht Club NFT project.

Robert Viglione, CEO of Horizen Labs, welcomed the collaboration, stating, "We look forward to working with the excellent Life Beyond team and bringing our expertise to this important technological innovation within the space."

While challenges related to the viability and scalability of a Bitcoin gaming ecosystem lie ahead, Vincent Marty, Chief Product Officer at Darewise Entertainment, expressed their commitment to exploring Bitcoin's potential in an ever-evolving digital landscape. He promised forthcoming technological advancements that will not only impact Life Beyond but also influence metaverses and games on a global scale.

As we move further, it seems that the Web3 and crypto space is becoming more appealing for brands venturing from the Web2 space. This is certainly a positive and hopefully there is more to come.

This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.