More than $7.7 billion was stolen in crypto scams by 2021. Here are 4 updates that you should be aware of
This week, the top cryptocurrencies in market value are still in red.
According to Coin Metrics Bitcoin trades at approximately $46,766 while ether trades at about $3,880. Both have fallen by around 6% over the past seven days.
However, a few of the top ten cryptocurrencies managed to weather the downturn. According to Coin Gecko, Terra’s LUNA has risen more than 29% during the past week and is currently trading at $80. Avalanche’s AVAX has also risen 29% during that period and is currently trading for $113.
Here are five key things that took place in the crypto space last week, along with price movements.
1. Elon Musk said that Tesla will accept dogecoin as payment for merch
This week, the top cryptocurrencies in market value are still in red.
According to Coin Metrics Bitcoin trades at approximately $46,766 while ether trades at about $3,880. Both have fallen by around 6% over the past seven days.
However, a few of the top ten cryptocurrencies managed to weather the downturn. According to Coin Gecko, Terra’s LUNA has risen more than 29% during the past week and is currently trading at $80. Avalanche’s AVAX has also risen 29% during that period and is currently trading for $113.
Here are five key things that took place in the crypto space last week, along with price movements.
2. Coinbase and CoinMarketCap temporarily glitch out with cryptocurrency prices
On Tuesday, Coinbase and CoinMarketCap both reported incorrect prices for cryptocurrencies. Most of these cryptocurrencies appeared overinflated and exaggerated in value.
Coinbase and CoinMarketCap users were confused by this issue, which drastically altered many wallet balances across the platforms.
Both Coinbase and CoinMarketCap have since resolved the issue.
Coinbase attributed the glitch to CoinMarketCap and its pricing information, but the cause remains elusive.
3. Senator Banking Committee members voice concern about DeFi and stablecoins
On Tuesday, the Senate Banking Committee heard members discuss stablecoins. These are cryptocurrencies that can be tied to a reserve asset such as the U.S. Dollar.
D-Ohio Chairman Sherrod Brown shared his views on stablecoins, their risks, and in his opening statement.
Sen. Brown stated that “let’s be honest about one thing: If your money is in stablecoins there’s no guarantee that you’ll get it back.” “Stablecoins, crypto markets, and other forms of digital currency are not an alternative to the banking system. They are a mirror of the same broken system, with less accountability and no rules.
Senator Elizabeth Warren (D-Mass.) agreed. Following the hearing , she tweeted “Stablecoins pose risk to consumers and to economy.”
“They’re supporting one of the most shady parts of crypto world, DeFi, where consumers have the least protection from being scammed. It is time for regulators to take action and stop allowing scammers to exploit our system.
4. Report says that $7.7 Billion was taken in crypto-scams in 2021.
According to , a new report from blockchain analytics firm Chainalysis, more than $7.7 billion was stolen worldwide in cryptocurrency scams in 2021. This is an 81% increase over 2020.
Rug pulls is a scam in which developers abandon projects and leave investors’ funds. This scam became the “go to scam” for the decentralized financing or DeFi, ecosystem. Chainalysis reported that it was.
Rug pulls were responsible for more than $2.8 billion in stolen cryptocurrency revenue in 2021, which is 37% more than the 1% that was generated in 2020.
5. RadioShack switches to DeFi
RadioShack declared that it is now a DeFi platform and “brings cryptocurrency to the mainstream,” as its updated website states. “Our mission is not to be the first protocol to make DeFi mainstream.
According to the website, it plans to launch its own token called RADIO at some point in time.