Crypto SWOT: Attacks on token protocols and crypto projects are significantly down

Strengths

Render was the best-performing cryptocurrency of the week, rising by 20.23%, as tracked by CoinMarketCap.

According to Bloomberg, attacks on token protocols and crypto projects have dramatically decreased by 70% in the first quarter of 2023 compared to the same period last year. The amount stolen in the first three months of this year is less than any quarter in 2022, suggesting improved security measures and an overall decrease in vulnerabilities.

Gulf Finance, a joint venture between Binance and Gulf Innova, has received digital asset operator licenses for a digital asset platform from Thailand’s Ministry, as reported by Bloomberg.

Weaknesses

The worst-performing cryptocurrency for the week, as tracked by CoinMarketCap, was GMX, down by 13.50%.

Elon Musk cautioned investors against overinvesting in Dogecoin during a virtual conference in London, hosted by the Wall Street Journal.

The amount of Ethereum available across exchanges dropped to a five-year low on May 26, reducing the total amount of Ethereum held on exchanges to 17.86 million. Bloomberg reports that this significant decline in Ethereum's exchange supply has not been seen since April 2018.

Opportunities

Bitcoin, an asset known for its volatility, has been consistently trading around $27,000 for three consecutive Tuesdays, suggesting a decrease in its typical volatility, as reported by Bloomberg.

The Solana Foundation announced the integration of AI into the layer-one blockchain through a new ChatGPT plugin, available for download on Github.

Bitcoin has been exhibiting less volatility lately, not posting a daily move of 6% for 70 sessions, marking its longest streak of relative calm since October 2020, as per Bloomberg.

Threats

Bloomberg reports that Shaquille O’Neal allegedly violated securities laws when he sold non-fungible tokens (NFTs) in connection with his Astrals Project. The Astrals NFTs are considered securities that should have been registered before being offered and sold.

Dubai’s financial regulator warned that global regulatory authorities need to enhance their collaborations to prevent malicious entities from exploiting gaps in cryptocurrency regulations, according to Bloomberg.

Zcash spot reached a 52-week low at $30.31, with the previous low recorded on March 11. The cryptocurrency has declined by 19.5% year-to-date, with its 52-week high at $66.91, as stated by Bloomberg.

Frank E. Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

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All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

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Frank Holmes

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Crypto SWOT: Attacks on token protocols and crypto projects are significantly down

By Frank E. Holmes

Kitco Commentaries
Opinions, Ideas and Markets Talk

Frank E. Holmes

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opinion

Crypto SWOT: Attacks on token protocols and crypto projects are significantly down

By Frank E. Holmes

Kitco CommentariesOpinions, Ideas and Markets Talk

Frank E. Holmes

Tags:

Kitco Commentaries
Opinions, Ideas and Markets Talk