bitkoban

Latest from CoinTelegraph

FIFA taps Avalanche to launch dedicated blockchain for NFT platform
The Federation Internationale de Football Association (FIFA) has selected Avalanche to power its dedicated blockchain network for non-fungible tokens and digital fan engagement, the organization announced May 22. FIFA’s layer-1 (L1) blockchain will be powered by the Avalanche network’s scalability-focused infrastructure for the association’s over five billion fans worldwide. The move comes nearly a month after FIFA announced its initial plans to launch a new blockchain network for its blockchain-based collectibles. AvaCloud’s Ethereum Virtual Machine (EVM) compatibility will enable smoother integration with decentralized wallets and applications. Related: Bitcoin hits new all-time high of $109K as trade war tensions ease The move will enable FIFA to deliver “unique digital collectibles and immersive fan experiences, powered by the speed, scalability, and EVM compatibility,” according to Francesco Abbate, CEO of Modex and FIFA Collect. “The decision was based on a rigorous analysis of key factors including performance, security, transaction fees, customizability, and scalability,” Abbate stated in a May 22 announcement shared with Cointelegraph. Related: Bitcoin volatility lowest in 563 days, Hayes predicts $1M BTC by 2028 FIFA Collect begins migration to Avalanche As part of the rollout, FIFA will migrate its NFT marketplace and NFT collection, FIFA Collect, to the new Avalanche-powered FIFA Blockchain. FIFA added that “future plans and business cases are planned but not yet publicly disclosed.” Following the migration, external Algorand-based wallets such as Pera and Defly will no longer be supported. Instead, users will be able to connect to FIFA Collect via MetaMask or other EVM wallets that support WalletConnect. FIFA launched its NFT collection ahead of the 2023 Club World Cup in Saudi Arabia in collaboration with blockchain firm Modex. Source: EntertheMythos In November 2024, FIFA partnered with blockchain gaming studio Mythical Games to launch FIFA Rivals, a free-to-play soccer game for iOS and Android. Magazine: Bitcoin $100K hopes on ice, SBF’s mysterious prison move: Hodler’s Digest, April 20 – 26

2025-05-22 13:52
Bitcoin tops Amazon market cap on ‘Pizza Day’ as price sets new highs
The market cap of the world’s first cryptocurrency, Bitcoin, surpassed that of retail and tech behemoth Amazon on “Bitcoin Pizza Day.” Market data shows that Bitcoin ( BTC ) had a market cap of $2.205 trillion at the time of writing, $70 billion more than the $2.135 trillion Amazon valuation. “By surpassing Amazon in terms of capitalization, Bitcoin has attracted even more attention from the non-crypto audience,” said Alex Obchakevich, founder of Obchakevich Research. Obchakevich said the latest rally “will strengthen confidence in Bitcoin and lead to new injections into the crypto market.” The surge came as Bitcoin set a new all-time high and traded above $110,000, which Obchavich said will “attract new investors to large funds.” Obchakevich noted that institutional players continue to expand their role in the digital asset space: “In May, BlackRock became the second largest bitcoin holder after Satoshi Nakamoto, surpassing Binance in this indicator.” Hassan Khan, the CEO of Bitcoin liquidity platform Ordeez, told Cointelegraph that “this is a structural change.” He explained that “Bitcoin is no longer simply a hedge, it’s in the process of becoming a benchmark currency.” Related: Bitcoin ‘looks exhausted’ as next bear market yields $69K target The crypto market approaches new highs According to CoinMarketCap data , the total cryptocurrency market cap stood at $3.49 trillion at the time of writing. While high, this is still nearly 6% lower than the all-time high of $3.71 trillion reported at the end of 2024. Total crypto market cap one-year chart. Source: CoinMarketCap More CoinMarketCap data shows that Bitcoin exchange-traded funds (ETFs) saw nearly $604 million of net inflows on May 21. The current open interest on crypto derivatives is $756.16 billion for perpetual swaps and $3.24 billion for futures. Looking into the future, Obchakevich shared his view on Bitcoin’s direction: “We are moving gradually towards $200,000, with gradual adjustments. I am sure that this year we will see Bitcoin at $150,000 and $90,000.“ Khan said that “large net inflows to ETFs and increasing open interest demonstrate that institutional confidence is growing.” Looking forward, he said: “Short term profit taking and macro rate uncertainty are tempering momentum. But below-the-surface metrics point to continued high conviction. The foundation is more solid than in any other cycle before it.“ Related: BlackRock’s Bitcoin ETF notches 2-week high inflow as BTC nears $112K Today is a special day for Bitcoin Today, May 22, is “Bitcoin Pizza Day,” a recurrence commemorating May 22, 2010, when programmer Laszlo Hanyecz made the first documented purchase of goods using Bitcoin , paying 10,000 BTC for two Papa John’s pizzas. “What was once considered a highly speculative risk has evolved into a serious asset class,” said Ulli Spankowski, chief digital officer at Boerse Stuttgart Group. Spankowski added that, nowadays, Bitcoin “boasts a market capitalization of over 2 trillion US dollars, ranking it as the fifth-largest asset globally, behind gold and the three largest publicly traded companies.” Magazine: NBA star Tristan Thompson misses $32B in Bitcoin by taking $82M contract in cash

2025-05-22 13:43
Can ChatGPT-powered AI agents really trade crypto for you?
Key takeaways ChatGPT-powered AI agents automate trading tasks using natural language prompts and API integrations, improving speed and consistency. Successes occur when ChatGPT is used as a support tool, not a fully autonomous trading system. Failures happen when traders over-rely on ChatGPT without real-time data, proper risk management or manual oversight. Regulatory focus on AI in trading is increasing, with new frameworks emerging to ensure transparency, accountability and compliance. What if a crypto trader didn’t need to constantly check charts, worry about emotions, or stay up all night watching for sudden price swings? What if those tasks could be handled by an intelligent agent that understands instructions in plain English — and reacts within milliseconds? That’s where ChatGPT-powered AI agents come in. These tools combine natural language processing with real-time trading logic to automate decision-making in one of the world’s most volatile markets. From rebalancing portfolios to reacting to market sentiment, ChatGPT is being adapted to act as a trading assistant, risk manager and market analyst — all rolled into one. But can it truly match or even outperform human intuition? This article explores how far these agents have come, where they shine and where they still fall short. How ChatGPT-powered AI agents operate in cryptocurrency markets ChatGPT-powered AI agents are changing how people interact with crypto markets. These tools combine ChatGPT’s language abilities with external trading tools and APIs to help users monitor prices, understand trends and even place trades automatically. Instead of just reacting to charts or numbers, ChatGPT can understand plain language commands like “Buy Ethereum if the price drops below $2,000” or “Sell Bitcoin if RSI goes above 70.” These AI trading assistants can work with major platforms like Coinbase, Kraken, OKX and other centralized or decentralized exchanges and can also tap into decentralized finance (DeFi) tools and smart contracts . With the right setup, ChatGPT can help automate trading strategies based on both technical data and market news. Success stories vs. failures in ChatGPT-powered crypto trading Some traders have used ChatGPT to assist in automating parts of their crypto trading processes, particularly for strategy generation and sentiment analysis . For example, a user shared on Reddit that they used a ChatGPT-based AI agent for technical analysis on Ether ( ETH ), feeding it four-hour and daily chart screenshots. By interpreting market sentiment, support and resistance zones, and other indicators, they managed to make $6,500 in profits. Similarly, in the broader crypto sector, ChatGPT has been applied to support project development activities such as drafting white papers and marketing content. A notable example is the launch of the “TURBO” memecoin, which reportedly reached a market capitalization of over $50 million in 2024. In this case, ChatGPT was used to streamline documentation and communication rather than manage trading activity, illustrating its usefulness as a support tool in crypto-related initiatives. However, limitations are evident when ChatGPT is applied beyond its core design. While ChatGPT could suggest a trading portfolio and explain its reasoning clearly, it lacks access to real-time market data and couldn’t respond to sudden volatility. In one instance, ChatGPT was allocated $100 across multiple tokens but failed to actively manage the portfolio as prices fluctuated. This resulted in missed opportunities and underperformance compared to dynamic algorithmic strategies. Individual experiences reinforce these observations. A Redditor exposed a scam where a YouTuber promoted a “ChatGPT trading bot” tutorial that led users to deploy malicious smart contracts. The contracts, generated using ChatGPT and passed off as safe, were designed to drain user wallets once funded. Victims collectively lost $17,240 in ETH, highlighting the danger of blindly trusting AI-generated code without proper auditing. Even when asked, “If I use ChatGPT to build an AI agent for crypto trading, can I become a millionaire?” ChatGPT responded with a realistic outlook — acknowledging that while it’s possible, success depends on having a profitable strategy, disciplined risk management, and the ability to scale effectively. Here is ChatGPT’s response: These cases suggest that while ChatGPT can support certain elements of the trading process, it should not be treated as a standalone solution for autonomous crypto trading. AI in crypto trading: Key benefits and limitations AI tools like ChatGPT are increasingly being integrated into crypto trading workflows to improve speed, accuracy and efficiency. While they offer important advantages, they also carry specific limitations that traders must actively manage. Below are the main benefits and challenges: Key benefits of using AI for crypto trading AI bots can execute trades in milliseconds, crucial for capturing opportunities in fast-moving crypto markets. Bots follow pre-programmed rules precisely, eliminating emotional biases that often affect human traders. Crypto markets are always open, and AI bots can monitor and act around the clock without interruption. A single bot can manage multiple trading pairs, exchanges and strategies simultaneously. ChatGPT can understand specific prompts like “Rebalance every Monday” or “Set stop-loss at 5%,” allowing flexible automation. Limitations of ChatGPT in cryptocurrency trading ChatGPT does not access live market data unless specifically integrated with external APIs (e.g., TradingView, CoinMarketCap or exchange websockets). Instructions must be clear and unambiguous; ChatGPT may misinterpret vague or complex commands. Improperly secured API keys or lack of two-factor authentication (2FA) can expose trading accounts to unauthorized access. ChatGPT’s cloud-based infrastructure can introduce latency, which could impact performance during highly volatile periods. ChatGPT does not monitor regional compliance rules; users must manually enforce trading limits based on local regulations. Ethical and regulatory implications of AI in crypto trading As AI becomes more integrated into trading systems, it raises significant ethical and regulatory concerns that stakeholders across the financial sector are beginning to address. Accountability: If an AI agent executes a harmful or unlawful trade, questions arise around legal responsibility. It remains unclear in many jurisdictions whether liability falls primarily on the developer, the trader using the AI system or the platform facilitating the transactions. Market manipulation risks: Autonomous AI bots could unintentionally engage in activities such as spoofing (placing and canceling fake orders to mislead the market) or wash trading (creating artificial volume), especially if not properly programmed with compliance safeguards. Regulatory oversight: Financial authorities, including the US Securities and Exchange Commission and the European Securities and Markets Authority, are actively studying the implications of AI and algorithmic trading. These agencies have recognized that traditional trading regulations may not fully account for autonomous decision-making by AI systems. Policy developments: In January 2024, the European Commission released updates to its Digital Finance Strategy, which included references to AI-based financial services. While not yet finalized, these draft regulations under the broader Digital Finance Package signal a move toward stricter compliance expectations for firms deploying AI in financial markets. Meanwhile, ethical crypto platforms are beginning to voluntarily disclose the use of trading bots in their systems. In parallel, open-source communities are advocating for clearer audit trails, improved model transparency and the establishment of ethical guidelines for AI applications in finance to ensure accountability and fairness. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

2025-05-22 13:21
Crypto travelers bring 3x greater lifetime value than fiat users
Travelers using cryptocurrency for booking arrangements spend more than twice as much as regular travelers using fiat money, according to a joint report from Binance Pay and crypto travel platform Travala shared with Cointelegraph. Crypto-based bookings on Travala reached $80 million in 2024, up from $45 million the year before. Crypto travelers are also outspending their fiat counterparts, with an average booking value of $1,211 per transaction, over 2.5 times more than fiat users who spend $469. Additionally, the report said crypto users were three times more valuable over their lifetime due to longer stays and higher repeat bookings, with crypto travelers 57% more likely to make a repeat hotel purchase. Source: Binance Pay, Travala Juan Otero, CEO of Travala, attributed these travel preferences to the flexible nature of Web3 jobs: “Many also work in the digital asset industry or have flexible, remote work lifestyles, which makes them more likely to travel frequently and stay in one place for longer while seeking out destinations that support seamless, global payments.” Crypto-based transactions have become more common in the travel sector and beyond. Airlines that have integrated digital currencies into their booking systems have seen a 40% boost in bookings, with travel and hospitality representing 14% of all crypto transactions in 2024, according to a Feb. 21 report by Triple-A . Related: Crypto spending will grow, but fiat isn’t going anywhere: Mercuryo CEO The main benefit of using crypto for travel is its borderless, global utility, Jonathan Lim, the global head of Binance Pay, told Cointelegraph. “Travelers can skip currency exchange lines, avoid foreign transaction fees, and pay instantly using assets they already hold,” he added. A growing number of crypto users also drives the increase in travelers using crypto to pay for trips. Triple-A’s report shows that cryptocurrency ownership has a compound annual growth rate of 99%, significantly outpacing the growth of traditional payment methods. Among crypto owners, 65% express interest in using it for payments. Founded in 2017, Travala is among the most popular crypto-native travel platforms, which enables users to pay for services like flights, hotel stays and tours with 141 different cryptocurrencies, including Bitcoin ( BTC ) and USDC ( USDC ) via Binance Pay. Related: Bhutan launches tourism crypto payments with Binance Pay and DK Bank Crypto payment covers more and more retail industries The first real-world Bitcoin transaction — 10,000 BTC for two pizzas — occurred 15 years ago today, on May 22, 2010, now commemorated as Bitcoin Pizza Day. Since then, crypto payments have expanded into high-end retail, luxury goods and more recently, fast food. First real-world purchase using BTC Source: bitcointalk.org The first retail businesses to accept cryptocurrency payments were primarily targeted at high-income consumers. In 2021, fashion brand Philipp Plein became one of the pioneers in accepting crypto, followed by Gucci , luxury watchmakers Franck Muller and Norgain , as well as high-end car dealerships and manufacturers. As the crypto holder base expands, more retailers are beginning to accept digital currencies for everyday transactions. On May 16, American fast food outlet Steak’n Shake began to accept Bitcoin as payment. Yet even with the Lightning Network implementation, a Steak’n Shake customer revealed that a $5 burger could cost over $8 with network fees and take over 20 minutes to confirm payment. Related: Bitcoin accepted at fast food chain Steak ’n Shake from May 16 With Binance Pay, payments are confirmed within seconds. Lim told Cointelegraph that’s because “Binance Pay operates as an offchain, closed-loop payment solution within the Binance ecosystem.” Still, most crypto travel payments on Travala are made using stablecoins like Tether’s USDt ( USDT ) and Circle’s USDC ( USDC ). Binance Pay transactions are ultimately converted into fiat at the point of sale by the merchant or payment partner based on a predetermined exchange rate. Magazine: Crypto is used for payments in Georgia, not to get rich: Tbilisi Crypto City Guide

2025-05-22 13:02
Trump’s crypto czar David Sacks says stablecoin bill is ‘going to pass’
David Sacks, US President Donald Trump’s top adviser on crypto and artificial intelligence, said the administration expects the stablecoin bill to clear the Senate with bipartisan backing. “We have every expectation now that it’s going to pass,” Sacks told CNBC on May 21, following a key procedural vote that saw 15 Democrats join Republicans to clear the filibuster threshold. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets. Sacks said the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth under clear rules. “We already have over $200 billion in stablecoins — it’s just unregulated,” he added. “If we provide legal clarity, we create enormous demand for Treasurys practically overnight.” Related: GENIUS Act ‘legitimizes’ stablecoins for global institutional adoption Stablecoin bill moves forward despite Trump controversy The stablecoin bill’s progress comes despite controversy surrounding the Trump family’s crypto dealings. Critics have raised concerns that the administration benefits from the legislation, given its ties to World Liberty Financial , a crypto firm backed by Trump family members that recently launched a stablecoin, USD1. The US Senate voted 66–32 to advance debate on the GENIUS stablecoin bill. Source: US Senate The token is backed by US Treasurys and dollar deposits and has received a $2 billion investment commitment from Abu Dhabi’s MGX fund via Binance. Sacks, who disclosed the sale of $200 million in crypto-related holdings before joining the White House, declined to comment on whether the president or his family may financially gain from the bill’s passage. Despite momentum, final passage is not guaranteed. Senator Josh Hawley has added a controversial provision to the bill that would cap credit card late fees, a move that could cost the legislation support from financial industry allies. Related: Hong Kong passes stablecoin bill, set to open licensing by year-end Banks panicking over yield-bearing stablecoins In a May 21 post titled “The Empire Lobbies Back,” New York University professor Austin Campbell said the US banking industry is “panicking” over the rise of yield-bearing stablecoins, which threaten their profit model. An excerpt of Campbell’s X post. Source: Austin Campbell Campbell criticized the banking lobby for pressuring lawmakers to defend their interests and block competition from interest-paying stablecoins . He argued that banks rely on fractional reserve practices to profit while offering low returns to depositors, and fear stablecoins may expose and disrupt that system. As reported by Cointelegraph , the US Securities and Exchange Commission in February approved the first yield-bearing stablecoin security by Figure Markets. According to a May 21 report from Pendle, yield-bearing stablecoins have soared to $11 billion in circulation since January 2024, representing 4.5% of the total stablecoin market. Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story

2025-05-22 12:06
Dubai regulator clarifies real-world asset tokenization rules: Lawyer
Newly updated guidelines from Dubai’s crypto regulator include provisions on real-world asset (RWA) tokenization and clarify rules for issuers. On May 19, Dubai’s Virtual Asset Regulatory Authority (VARA) released its updated Rulebook for virtual asset service providers (VASPs) operating in the region. The regulator gave market participants until June 19 to comply with the new rules. The regulator previously told Cointelegraph that it had enhanced supervisory mechanisms and brought consistency across activity-based rules. One of the more prominent changes includes regulatory clarity on RWA tokens. Irina Heaver, partner at the United Arab Emirates-based law firm NeosLegal, told Cointelegraph that the updated rules clarify RWA issuance and distribution. “Issuing real-world asset tokens and listing them on secondary markets is no longer theoretical,” Heaver told Cointelegraph. “It’s now a regulatory reality in Dubai and the broader UAE.” A “viable” path to realize RWA hype Heaver compared RWAs to security token offerings (STOs) , an earlier attempt from the crypto space to tokenize securities like stocks, bonds and real estate investment trusts. However, the UAE crypto lawyer said that STOs “died a peaceful death in 2018 to 2019.” The lawyer told Cointelegraph STOs did not work out because of the lack of regulatory clarity, viable secondary market trading venues, institutional investor appetite and liquidity. Still, the situation is different for RWAs. Heaver told Cointelegraph that RWAs are the next foundational layer for institutional adoption of blockchain and virtual assets. Heaver said that VARA’s new rules already cover them as Asset-Referenced Virtual Assets (ARVA) tokens. She said: “VARA’s newly updated Virtual Asset Issuance Rulebook (May 2025) addresses these failures head-on. Regulated exchanges and broker-dealers in Dubai are now authorized to distribute and list ARVA tokens.” The lawyer said this solves an issue in jurisdictions like Switzerland, where token issuance is possible, but listing and secondary trading remain unregulated. Related: Dubai gov’t agencies to link real estate registry with property tokenization Lawyer shares requirements for RWA issuers Heaver said ARVA tokens are defined under Dubai law as representing direct or indirect ownership of real-world assets, granting entitlement to receive or share income and purporting to maintain a stable value by reference to real-world assets or income. ARVA tokens are also backed or collateralised by such real-world assets or constitute a derivative, wrapped, duplicated, or fractionalised version of another ARVA. The lawyer said issuers must meet specific requirements, including a Category 1 Virtual Asset Issuance license, a comprehensive white paper and a risk disclosure statement. In addition, issuers must have a paid-up capital of 1.5 million UAE dirhams (about $408,000) or 2% of reserve assets held. The issuers are also subjected to monthly independent audit obligations and must adhere to ongoing supervisory oversight. “VARA is providing regulatory clarity, and it’s giving the industry a viable, enforceable path to turn the hype of RWA tokenization into reality,” Heaver told Cointelegraph. “This matters because it marks a shift, from theory to execution, from fiction to framework.” Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

2025-05-22 11:37
Bitcoin 'looks exhausted' as next bear market yields $69K target
Key points: Bitcoin all-time highs matter little to those seeing a BTC price correction as long overdue. Both the latest surge and the bull market itself are on borrowed time, traders argue. Comparisons to previous price cycles remain in use despite the booming institutional investment scene. Bitcoin ( BTC ) traders are calling for a pullback after all-time highs and seven “green” weekly candles. BTC price momentum continues to be met with skepticism as commentators assume that lower levels will come next. BTC price roadmap prepares for Q4 “cycle peak” Bitcoin hit its highest-ever levels this week, data from Cointelegraph Markets Pro and TradingView confirms — but despite being up by a third in Q2 already, BTC/USD remains unconvincing for many. Long-term analysis suggests that not only is price action due to return lower to consolidate gains, but that the entire bull market is near completion. Among the latest prognoses calling for a “sanity check” is that of popular trading resource Stockmoney Lizards. In one of its latest posts on X , it brought back a bull market roadmap from late 2023. “In December 2023 we posted this BTC roadmap (lower picture). I overlayed the actual chart with the same TF. Price is a bit lower, however, timelines are fairly accurate,” it commented. The chart itself shows Bitcoin’s next “cycle peak” coming in Q4 this year, with the subsequent bear market taking BTC/USD back to 2021 highs of $69,000. Others referenced historical BTC price action to argue for a more imminent correction. Popular trader Crypto Chase notes that the price is now considerably higher than some typical bull market exponential moving averages (EMAs). “Every time price deviates FAR outside the EMAs (circled areas), we always see a pullback,” he told X followers. “Even if that pullback if brief before more upside, it's a pullback.” BTC/USD 1-week chart with 21, 50 EMA. Source: Cointelegraph/TradingView The post acknowledged the presence of increased institutional buying power this cycle, something which could skew price performance in bulls’ favor. Bitcoin “looks exhausted” As Cointelegraph reported, various market participants have been expecting a significant comedown this month. Related: $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week Support targets include everywhere from $105,000 to $90,000 , with proponents seeing little fuel left in the bull market tank. “This doesn’t mean downside is coming immediately, it just means the bull run is likely coming to an end and I'd rather not take the risk and hold spot here. See 2021 vs now,” fellow trader Roman wrote in an X update on the topic. Roman described Bitcoin as “looking exhausted” based on relative strength index (RSI) bearish divergences . BTC/USD 1-week chart with RSI data. Source: Roman/ X This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

2025-05-22 11:35
5 red flags you’re being shilled: Don’t buy the hype
What is shilling in crypto? At its core, shilling is the act of artificially promoting a cryptocurrency or token, often with exaggerated claims, to increase its price or popularity. But what’s the goal? Hype it up, get others to buy in, and then cash out, leaving latecomers holding the bag. Shilling can come from anyone: influencers , anonymous accounts or even high-profile figures with political or financial clout. The common thread is manipulation: It’s not about educating you or building real value but pumping hype for personal gain. Unfortunately, the line between enthusiastic promotion and outright deception can be thin, and many fall victim without realizing it. That’s why it’s critical to learn how to spot the signs early. 5 red flags you’re being shilled Beware of crypto red flags like overhyped promises, anonymous teams, influencer shills, missing products and FOMO tactics — if it smells like a scam, it probably is. 1. Overhyped promises You’ve probably seen posts that scream: “100x potential!” “Guaranteed returns!” “This is your ticket to financial freedom!” These are classic shill tactics. Real, credible projects don’t promise life-changing profits. Why? Because there are no guarantees in crypto or in any investment. When a project leads with grandiose financial claims rather than actual product value or utility, it’s likely a ploy to stir FOMO and attract unsuspecting investors. The truth is, if something sounds too good to be true, it almost always is. Remember: The bigger the promise, the bigger the red flag. 2. Anonymous or suspicious teams In crypto, anonymity isn’t always bad, but when you’re trusting people with your money, transparency matters. It’s a major red flag when a project has: No identifiable team members Fake names or aliases Stock photos on its website No LinkedIn or professional history. The simple rule is “No face, no funds.” Scammers often hide behind anonymity because they know they’ll eventually vanish and there’ll be no one to hold accountable. Even worse, some use fabricated credentials or hire actors to pose as team members. Before investing, check whether the founders or developers have any verifiable history. Do they have prior experience in blockchain or startups? Have they launched anything successful before? 3. Influencer spam and paid promotions One day, no one’s talking about a particular coin — the next, your feed is flooded with influencers hyping it up. Sound familiar? This sudden burst of attention is often coordinated with a paid promotion campaign disguised as “genuine enthusiasm.” Many influencers fail to disclose sponsorships, even though it’s required by law in many countries. The US Securities and Exchange Commission and the Federal Trade Commission (FTC) have cracked down on this in recent years. Take, for example: Kim Kardashian, who was fined $1.26 million in 2022 for promoting EthereumMax without proper disclosure. Floyd Mayweather Jr., who was sued for endorsing the same project at a paid event. BitBoy (Ben Armstrong), who faced legal action in multiple lawsuits for promoting scam tokens to his audience. If you notice multiple influencers promoting the same project in a short time, especially without using labels like #ad or #sponsored, it’s a strong indicator of a shill campaign. Don’t mistake volume for value. Hype doesn’t equal legitimacy. 4. No real product or roadmap If you visit the project’s website, it looks sleek, maybe even impressive. But where’s the product? Where’s the code? Shilled tokens often rely on flashy marketing but have no working application, no GitHub code and no actual use case. Everything is either “coming soon” or buried behind vague promises. Ask yourself: Can I use the platform or app today? Is there a white paper that makes sense? Do they have public repositories or open development? If all you’re seeing is a landing page and a vague roadmap that’s been “coming soon” for months, that’s a major red flag. 5. Pressure tactics and FOMO Time pressure is a psychological weapon, and shillers know how to use it. Watch out for lines such as: “Presale ends in 2 hours!” “Only 1,000 spots left!” “If you don’t buy now, you’ll miss out forever!” These tactics prey on your fear of missing out (FOMO) and push you into making impulsive decisions without research. But crypto isn’t a sprint; it’s a long-term game. Anyone trying to rush you into buying likely has something to hide. Solid investments don’t need fake urgency. Take a breath, step back, and ask yourself: Am I buying because I believe in this project or because I’m being manipulated? Did you know? The Commodity Futures Trading Commission (CFTC) secured a $128-million judgment against Ryan Mitchell Pope, Daniel Samuel Bishop and their company EmpiresX for operating a fraudulent forex and cryptocurrency investment scheme that defrauded over 12,500 victims. Is shilling illegal in crypto? Can influencers be sued? Shilling isn’t just unethical in many cases — it’s also illegal. In the world of crypto, undisclosed promotions are a major legal risk. If someone is paid to promote a token or project but fails to reveal that financial connection, they could face fines, lawsuits or even criminal charges. This is especially true if the promoted token is later classified as a security under US law. Regulators like the SEC, FTC and CFTC have all cracked down on this behavior. Their targets have included: Influencers who failed to disclose paid promotions Promoters who misled investors with false claims Individuals who ran pump-and-dump schemes using social media. Francier Obando Pinillo, a pastor from Miami, was indicted on 26 fraud counts for running a crypto scam through “Solano Fi,” defrauding investors of millions from 2021 to 2023. He allegedly used his church, social media and false promises of 34.9% monthly returns to lure victims. The platform showed fake gains but blocked withdrawals, while funds were diverted for personal use. Pinillo was arraigned in Richland, Washington and faces up to 20 years in prison if convicted. As crypto becomes more mainstream, expect stricter regulations and more consequences for shillers. Did you know? Argentine President Javier Milei has dissolved the special task force investigating the LIBRA cryptocurrency scandal , a project he promoted in February 2025 that surged to a $4.5-billion valuation before crashing by over 97%. The task force, created by Milei himself, was disbanded via Decree 332/2025, citing that it had fulfilled its purpose. However, critics argue that no official findings were released, and judicial investigations into Milei and his associates continue. How to protect yourself from shilling scams Do your own research, verify the team and utility, ignore hype and influencers, and stay alert to pump-and-dump schemes to avoid crypto shilling traps. Let’s understand how you can protect yourself from shilling scams in crypto: Do your own research (DYOR): Always research the project, the team behind it and the data supporting the claims. Don’t rely solely on hype or influencer recommendations. Look into onchain data, GitHub activity and the project’s utility to make informed decisions. Verify the team: A legitimate crypto project should have a transparent and credible team. If the developers are anonymous or have no professional profiles (like LinkedIn), that’s a red flag. Always check the team’s past projects and credibility before investing. Look for real utility: Does this project actually solve a problem? A genuine project should have a working product or solution, not just promises. Avoid projects that lack real-world utility or are still in “coming soon” stages for extended periods. Ignore the hype: If a token is suddenly trending on social media or being aggressively promoted, don’t let FOMO influence your judgment. Shillers often rely on emotions to push their agenda, so it’s essential to evaluate projects based on their merits, not just popularity. Stay skeptical of influencers: Influencers with large followings may be paid to promote certain tokens. Before taking their advice, ask yourself, What’s their incentive? Verify the promotion is legitimate and disclosed as paid or sponsored. Always cross-check the information with independent sources. Watch for pump-and-dump schemes: Be cautious of sudden price spikes followed by rapid drops. These are often signs of pump-and-dump schemes where the token’s value is artificially inflated by coordinated buying and then quickly sold off, leaving investors with losses. Always monitor price trends and be wary of sudden, unexplained increases in value.

2025-05-22 11:25
Coinbase hacker trolls ZachXBT onchain after $42.5M THORChain swap
The hacker behind the data breach targeting Coinbase users has mocked blockchain investigator ZachXBT with an onchain message following a major crypto swap. On May 21, the hacker who previously stole data from at least 69,400 Coinbase users used Ethereum transaction input data to write “L bozo,” followed by a meme video of NBA player James Worthy smoking a cigar. The message came after the attacker swapped approximately $42.5 million from Bitcoin ( BTC ) to Ether ( ETH ) via THORChain. ZachXBT flagged the message on his Telegram channel, linking it to the same entity responsible for the Coinbase data breach affecting at least 69,400 users . Coinbase hacker trolling ZachXBT. Source: ZachXBT. On May 22, blockchain security firm PeckShield reported that the hacker had continued to move funds, swapping 8,697 ETH for 22 million Dai ( DAI ). A separate but closely linked address, which received 9,081 ETH via THORChain, also converted the assets into 23 million DAI. Related: DOJ is investigating Coinbase data breach— Report Coinbase hit with lawsuits after breach The Coinbase breach , first reported in a filing with the Maine Attorney General’s office, occurred in December 2024 and was discovered on May 11. The stolen data includes names, home addresses and other personal information. Following the disclosure, the attackers demanded a $20 million ransom in Bitcoin to prevent the release of the stolen data. Coinbase refused and instead offered a $20 million bounty for information leading to the identification of the hackers. The company estimates a potential financial impact between $180 million and $400 million due to remediation costs and customer compensation. Coinbase has also faced a wave of lawsuits following the revelation. At least six legal complaints were filed between May 15 and 16, with plaintiffs accusing the exchange of failing to implement adequate security measures and mishandling its response to the breach. Related: Coinbase data leak could put users in physical danger: TechCrunch founder THORChain under scrutiny for criminal use The Coinbase hacker’s use of THORChain to swap $42.5 million worth of Bitcoin into Ether comes as the protocol faces growing scrutiny over its role in facilitating illicit transactions. In March, the platform came under fire after its swap volume surged following the $1.4 billion Bybit hack . The protocol generated over $5 million in revenue after processing $5.4 billion in swap volume, with over $1 billion moved in a single day. Blockchain security firms identified North Korea’s Lazarus Group as the main suspect, using THORChain to launder a significant portion of the stolen funds. Source: Lookonchain The controversy intensified when a THORChain developer, known as “Pluto,” resigned after a vote to block transactions linked to Lazarus was overturned. Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story

2025-05-22 10:12

1 2 3 4 5 →