Welcome to the Decentral Weekly Crypto News Wrap-Up for the week as of October 8, 2021, where our colleagues Neil and Emily discuss cryptocurrency-related headlines and debate, declare, or deny: “Is this a thing?”
Mr. Goxx may have been silent, but El Salvador did not disappoint, as the country leaned super hard into its newfound love for crypto with… volcanoes? In any case, we know it can be overwhelming to keep up with cryptocurrency news on a daily basis. Lucky for you, we’re still here to provide a weekly wrap-up that summarizes some of the most fascinating crypto headlines.
The castle for crypto addicts
How’d you like to live in a castle? That’s right. There’s a private hospital that claims to be the first center in the world to treat cryptocurrency addiction, and it’s run out of Castle Craig. It’s located about 25 miles from Edinburgh, Scotland, and they treat international visitors who claim that they are addicted to cryptocurrency trading. The clinic has apparently experienced a tenfold rise in inquiries in their crypto addiction services since last year.
Castle Craig has actually been treating cryptocurrency addiction since 2018. A therapist at the clinic, Tony Marini, compared the cryptocurrency habit to a gambling habit, although he admits that his patients often do not view it the same way. Marini also pointed out that many of his early patients had drug and alcohol issues, and often heard about cryptocurrency through the Dark Web
Neil says:
This is a pretty strange one…I’ve heard about gambling addictions, but I’ve never heard of a “stocks and bonds” rehab center. Addiction has so many forms, and I will say that cryptocurrency markets are 24/7, which certainly doesn’t help addictions, or even mild obsessions…overall, this is not the best look for the cryptocurrency sector.
Em says:
While I’m sure crypto addiction is a real thing—do we really need a specialized addiction center for it? Is it wildly different from other kinds of addiction recovery or is this another way to capitalize on a booming crypto market? Just a question.
Bottom line:
Neil thinks this is a thing, but a bad thing…and Emily has questions.
Who’s right?
Comment on twitter #cryptocastle and tag @decentralpub –> your tweet could be featured in an upcoming shout out
Bitcoin run-up: back in a bull market?
As both novice and expert crypto traders know, Bitcoin’s price determines a lot in the cryptocurrency markets. This is one reason why many experts were concerned that Bitcoin had dipped down—twice—near the $40,000 level in September. As a result, many analysts declared that it would be a “bullish sign” if Bitcoin could recover to $50K. Bitcoin has done so, and crypto news headlines everywhere have celebrated.
Tone Vays goes even further. The veteran crypto trader believes that the bull market could continue into 2023, when Bitcoin might be worth as much as $250K or $333K. Glassnode, a crypto analytics firm, points out that long-term holders could create a supply squeeze that can trigger a new bull cycle.
Bitcoin has been able to do so, and many enthusiasts were excited about this cryptocurrency news. You can always count on countless analysts and experts to give their opinion about whether Bitcoin is entering its next bull cycle or not. Does this really mean that we are going to see Bitcoin hit $100K relatively soon?
Neil says:
I’m not a big fan of labeling something a “bull cycle” too quickly. Bitcoin’s price tends to fluctuate, and the China crypto ban may have held it back before…but it doesn’t mean that we should expect some massive run up to $100K just yet. I think we would need to see more price action…let Bitcoin make a new all-time high, and that’s more of a reason to get excited.
Em says:
I’m no prophet, but why not walk on the optimistic side? If on-chain analyst Willy Woo thinks the four-year bull and bear cycle is a thing of the past, who am I to object? To the moon is a good enough reason for me to “hodl.”
Bottom line:
Emily thinks that this is a thing, Neil doesn’t think it’s that big of a deal.
Who’s right?
Facebook’s having a bad week
Facebook is one of the most powerful tech companies in the world, but it has been having a terrible week. First, Facebook, Instagram, and Whatsapp suffered a major outage that caused them to go offline for about six hours on Monday, October 4th. Eventually, the platforms were back online by Monday evening.
Bitcoin has reached quite the milestone in major cryptocurrency news: its market capitalization surpassed Facebook’s market capitalization. While it might be more of a symbolic “surpassing” than usual, it is still positive news for those who invest in cryptocurrency.
It also raises questions about Facebook. Will Web 3.0 find ways to be more responsible and transparent in ways that Facebook could have avoided? Will decentralized social media platforms be able to usher in a new age of better online interaction and consumption? Does this somehow prove that decentralization is the answer?
Neil says:
There’s no decentralized Facebook, or “Web 3.0” Facebook. I don’t think Facebook having a terrible week means that crypto enthusiasts should start celebrating, especially considering that there aren’t any decentralized platforms that can come close to “replacing” Facebook.
This is also more of a negative story: investor funds were lost, and Cotten died mysteriously. If I can summarize my stance, I would say: this may satisfy true crime fans more than crypto enthusiasts.
Em says:
Sure, lots of people and businesses still use Facebook like it’s going out of style (it is, btw). Some might say we still need Web2 infrastructure until Web3 can be built. I say: if it all gets torched, the decentralized web will get built that much faster. 😀
Bottom line:
Emily thinks this is a good thing, Neil remains skeptical.
Who’s right?
TikTok pretends to be carbon neutral with NFTs
What happens when one of the hottest “crypto trends” in cryptocurrency news teams up with the “trendiest” platform, famous for challenges, dances, and teenage discourse? You’ve guessed it: NFTs are coming to TikTok!
Lil Nas X, one of the biggest artists in the music industry, will lead the NFT collection and become the first artist in history to drop an official TikTok NFT. Each artist has been paired with an NFT creator to create six unique NFTs, and other artists like Grimes and Bella Poarch will be dropping NFTs, as well.
There is a possibility that this is more than just TikTok hopping on a trend…the company is reportedly exploring NFTs as an option to compensate creators. Six famous TikTok moments will be sold off over the next several weeks, and it’s all made possible thanks to Immutable X. Immutable X is an eco-friendly Layer 2 solution, and the platform claims that any NFT created or traded on the platform is 100% carbon neutral.
Either way, more people will know about NFTs than ever before. That’s because TikTok boasts 1 billion monthly users, and it might be an overall positive for mass adoption.
Neil says:
Lil Nas X is a marketing genius, and he knows what he’s doing. It makes sense for artists to “cash in” on the rise of NFTs, but this all just screams “hype” to me. TikTok knows that NFTs are booming right now, and it makes sense for them to get in on the action. However, this isn’t exactly moving the needle, much, to me.
Em says:
Forget that China owns TikTok and everything they do is a contradiction and obfuscation. The demographic using TikTok probably overlaps with the reckless crypto degen demo, so I say let them degen into “carbon neutral” NFTs. Degens will be degens, amirite?
Bottom line:
Is this a thing? Neil doesn’t think so…but Emily still has hope.
Who’s right?
James Bond plot... or volcanic update from El Salvador
Last week, we spoke about how El Salvador was embracing Bitcoin, and how the president of El Salvador, Nayib Bukele, seems to believe that Bitcoin will play a critical role in improving the country’s economy. Bukele, who many consider to be authoritarian and even a dictator, has been famously pro-Bitcoin for some time now. Now, his country will invest in ensuring that volcanoes can mine Bitcoin.
The problem here is that Bukele seems to be celebrating WAY too early. The volcano has only mined $269 worth of Bitcoin, which makes you wonder if it’s really worth bragging about this early. It doesn’t seem like this volcano is helping El Salvador become a crypto mining titan anytime soon.
This technology isn’t exactly revolutionary, either. A Bitcoin miner named Alejandro de la Torre has pointed out that Iceland has been using volcanoes to mine Bitcoin for years now. “It’s just geothermal energy…Iceland has been doing this since the very, very beginning of Bitcoin mining.”
Neil says:
This is one of those PR stunts that almost sounds like it’s part of a Bond villain plot, but it’s also probably not the best promo. The goal is for Bitcoin to help address real problems, but this just makes Bukele look a bit desperate for attention.
Em says:
This is the sci-fi modern age we’ve all been waiting for. Even if it doesn’t do much for the global crypto narrative, I’m for it cause it just sounds cool. Volcano crypto mining, AI trading bots, blockchain identity, and butt implants are the future we’re here for.
Bottom line:
Neil wonders whether this misses the mark a bit, and Emily doesn’t care because it sounds like a cool sci-fi dystopia that we should all embrace.
Who’s right?
This week’s bad idea: defi and doxing don’t mix
This week’s bad idea comes straight from Robert Leshner, the founder of an Ethereum-based DeFi platform named Compound. Compound accidentally gave a staggering $90 million to its users, and Leshner begged users to give it back.
He told users to keep 10% but send the rest of the cryptocurrency back. Then, he threatened to dox users on Twitter if they chose to keep the money. Once he made this threat, it’s safe to say that Leshner’s problems…compounded (sorry, it was too easy). Leshner feels like it presents a moral dilemma that the sector should recognize and face.
Many high-profile figures in the cryptocurrency sector immediately criticized Leshner for the response. To his credit, Leshner admitted that his response was “bone-headed” in a followup tweet, but it was definitely a terrible PR move. Julien Bouteloup, a member of the core team at Curve Finance, suggested that this was “extortion” in a tweet.
The cryptocurrency community believes in decentralization, and many of its most enthusiastic supporters believe in the need for privacy and anonymity. If a DeFi protocol founder threatens to “dox” users, they prove that they do not value these principles.
Some have suggested that Leshner was better off asking nicely for users to return the COMP tokens, rather than threatening to expose personal information. Incredibly, two users returned tokens worth around $12 million, so that’s a start!
Neil says:
Obviously this was a terrible idea, and it didn’t really do Compound any favors. At the same time, Leshner did apologize pretty quickly. Either way, this was a horrible idea, all the way around. You were better off begging than threatening, honestly.
Em says:
I sympathize with the feeling of doom that a $90mil bug would cause. But threatening to dox people in a community whose main priorities include anonymity? Yeah, how did you think that was going to play out, friendo? Know your audience. lol.
Bottom line:
Both Neil and Emily agree that this was, as the kids say, a “massive L.”
Finally, we have a consensus!
Meme of the week
We hoped you enjoyed your weekly wrap-up of the cryptocurrency news from Decentral Publishing! Here is your beloved meme of the week. Let it be a warning to you! Take some time away from the markets, before you end up in Castle Craig…and we’ll see you next week.
