- An Industry Maturing
An Industry Maturing
Policy makers and law enforcement are pursuing actions in the digital asset industry. This is one way that the industry will mature and increase comfort for broader mainstream adoption.
We’re heads-down preparing for a couple drops very soon. Stay tuned to our Twitter and Discord for announcements this week.
Story of the Week
The US Department of Justice arrested and charged a former OpenSea employee in “first ever digital asset insider trading scheme.”
The bigger context: This is the path to increasing legitimacy: the most powerful oversight organizations are taking the industry seriously after years of dismissing it. Critics have reported for years about shady activity in crypto and NFT markets. Often they are right, and the space needs to clamp down. Oversight organizations like the DoJ, the White House, and SEC are moving aggressively this year. Regulation and oversight will help mature these markets and bring the trust and transparency we rely on in traditional financial markets.
Stat of the week
Number of NFTs the suspect bought and sold, which each netted 2-5x the purchase price. Details here.
Web3 Topic: Public Blockchain (and how a tweet exposed the insider trading scandal)
A public blockchain is a special type of blockchain network in which all the data is publicly available.
The implications: Typically, financial crimes are exposed after costly investigations by authorities. They rely on private financial data from banks and payment networks to make their case. In contrast, this insider trading scheme was exposed by unassuming Twitter account ricefarmer.eth in this Tweet thread. This person was able to query the blockchain data to show assets moving to and from the suspects wallets suspiciously timed with the OpenSea marketplace listings that the suspect controlled. In this case, the community was able to hold itself accountable, remove the suspect from employment, and ultimately lead to a criminal charge.
See you next week!