Crypto SWOT: New data shows that crypto-related crime has declined significantly

Strengths

Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was XRP, rising 67.41%.

Litecoin, over the past year, has outperformed the broader crypto market. One driver of the coin’s near-90% climb over the period was its so-called halving that will curb the supply of the token, a process that also lies ahead for Bitcoin in the coming months, writes Bloomberg.

Coinbase shares roared more than 24% higher on Thursday in the wake of a judge’s ruling on a case involving cryptocurrency tokens. This is fueling debate on Wall Street over what the decision means for Coinbase’s own regulatory headaches, writes Bloomberg.

Weaknesses

Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was eCash, down 19.44%.

Dubai is reprimanding BitOasis, one of the largest crypto platforms focused on customers in the Middle East, for failing to meet mandated conditions set forth by the local regulator, writes Bloomberg.

Argo Blockchain on Wednesday said bitcoin or bitcoin equivalents, mining production fell in June from May, due to network difficulties and issues at its mining facility in Texas, writes Bloomberg.

Opportunities

Coinbase Global gained as much as 13% on Tuesday, trading at its highest intraday level since August and extending a rally driven by optimism over the potential U.S. approval of a Bitcoin ETF, writes Bloomberg.

A federal judge ruled that the Ripple Labs token is a security when sold to institutional investors but not the general public, a long-awaited decision that was widely hailed as a victory for the crypto industry over the SEC, writes Bloomberg.

Crypto-related crime has declined significantly, according to data from Chainalysis. A new report from the analytics firm notes that daily crypto inflows into illicit services is down relative to previous years, writes Bloomberg.

Threats

U.S. prosecutors charged a New York man with stealing millions of dollars in crypto after exploiting vulnerabilities on a decentralized finance platform. Shakeeb Ahmed took advantage of a flaw in one of the exchange’s smart contracts to insert fake pricing data generating about $9 million of inflated and unearned fess that he was able to withdraw in crypto, writes Bloomberg.

U.S. prosecutors charged a Moroccan man with stealing $450,000 in cryptocurrency and nonfungible tokens, including two Bored Apes, by creating a fake replica of the OpenSea digital marketplace in 2021, writes Bloomberg.

The ex-Celsius CEO Alex Mashinsky was arrested on Thursday morning and charged with wire fraud and other crimes, according to Bloomberg. He has been accused by U.S. prosecutors of pumping up the price of his firm’s cryptocurrency to entice customers to the platform.

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).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

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.

The S&P/TSX Global Gold Index is an international benchmark tracking the world's leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

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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: New data shows that crypto-related crime has declined significantly

By Frank E. Holmes

Kitco Commentaries
Opinions, Ideas and Markets Talk

Frank E. Holmes

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opinion

Crypto SWOT: New data shows that crypto-related crime has declined significantly

By Frank E. Holmes

Kitco CommentariesOpinions, Ideas and Markets Talk

Frank E. Holmes

Tags:

Kitco Commentaries
Opinions, Ideas and Markets Talk