Twitter and Bitcoin, China and ETH, and NFT Scammers
Twitter announced several changes promoting both Bitcoin and Ethereum’s network this week. NFT’s continuous domination in the crypto space enables NFT Scammers. Read below to learn about what’s going on this week in Crypto.
First and foremost, I want to start by addressing that I am an Ethereum Maxi, meaning that I have an incredibly bullish outlook on Ethereum as a network now and in the future. From the ever-growing presence of Ethereum and its network capabilities to the continuous innovation in this space, I believe that we are on the brisk of a financial revolution. As Big Tech and smaller independent users begin exploring and innovating the network, I think that Ethereum will scale efficiently and become widely adopted across more industries (think video games or VR). Although there is a lot of FUD being spread from the likes of China, the Federal Reserve, and the SEC, I believe these are Bullish indicators of the ability cryptocurrency as a market will have on the world.
[Twitter + Bitcoin]
This week, Twitter’s CEO, Jack Dorsey has announced that they have finalized enabling Twitter to accept tips in Bitcoin amongst a few other payment options such as Cash App, Venmo, and others. Twitter will utilize BTC’s Lightning Network to enable faster transactions at a lower cost. The company backing this is Jack Mallars, Strike. Twitter utilizes Strikes API to allow easier payments across the blockchain to enable a new world where payments, even remittance payments can be conducted immediately, cost less, and become more secure.
What is Bitcoin’s Lightning Network?
Bitcoin’s Lightning Network is a secondary layer enabling a payment protocol to be stacked on top of the blockchain-based currency that allows for off-chain transactions, i.e., transactions between participants not on the blockchain network. Lightning Network enables faster transactions between nodes and is a way to enable cheaper, faster, more secure transactions.
Bitcoins Lightning Network allows scalability across the network, by moving it off-chain. This allows the network to handle peer-to-peer transactions by removing various node confirmations. The two parties open a channel of communication, conduct the transaction, and then it is sent to Bitcoins Mainnet for documentation.
[Twitter + Ethereum]
This week, Twitter added that they will provide account authentication against user’s profile pictures. For those who are unsure what this means, in the NFT space many projects, widely known as PFP projects, or Profile Picture Projects have begun to rise. The floor price (or lowest buy in price) of these projects ranges anywhere from .05ETH to 100ETH, and anywhere in between (ETH at time of writing is USD $2900 per 1 ETH). Most of the projects, known as “Blue Chip Projects,” typically sit between 3ETH-50ETH floors. As a result of this, many users like to show off their NFT and set their profile pictures to them, and it isn’t just crypto enthusiasts. Celebrities such as Snoop Dog, Mike Tyson, Mark Cuban, and many others are beginning to engulf in the NFT space to diversify their assets.
I emphasize Ethereum here, however, many NFT projects are conducted on Solana and beginning on Cardano’s network. So, what does this mean for Twitter? Well, first and foremost, it is great to see institutional buy-in from the likes of a Social Media giant. This is the first step in transforming Twitter's business model to become more ‘crypto-friendly,’ and is a great first step that a lot of Big Tech and Media Companies will follow closely. As Twitter makes this move, I believe we will see more companies become openly bullish on accepting Crypto as payment and find new ways to integrate Ethereum’s network into their roadmaps.
Okay, so we have discussed some of the hot news as of lately between Twitter and their step into the Crypto space, but now I want to address NFTs, why they are important, and what their potential is. I will follow it up with some hot projects currently being developed, and ones that I currently own.
An NFT is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. NFT’s can be used to represent items such as photos, videos, audio, and other types of digital files. The most widely adopted network for hosting NFT projects is on Ethereum’s network. In order to buy into an NFT project, one will have to first do research on a project that interests you. Second, you will want to utilize a wallet for holding your NFT and Ethereum that will be used to purchase it, and finally, you can use OpenSea, the NFT marketplace to purchase and trade NFTs. Your wallet is a secure place to store and conduct transactions as your keys are private and held close to you.
Hot NFT Projects
NFT projects can represent a handful of things, from “JPEGS” to video games, we are seeing an evolutionary shift in the way the digital world conducts itself. NFT’s date back to early 2014 when Quantum was born. Autoglyphs and CryptoPunks first were soon after and these projects are known as a piece of history to collectors- they both share a floor price well above ~100ETH.
First and foremost, this is not financial advice so please DYOR. When considering an NFT project there are several factors to consider such as the community, roadmap, artwork, and utility. One of my favorite projects is, CryptoDads. The reason behind it is deeper than the community and artwork (both of which I enjoy). CryptoDad’s founders went on to Benzinga to discuss their project and on-air they stated “CryptoDads started as an NFT project, and now is evolving into a Tech Company”. To me, this is powerful as this space is granting small projects the ability to scale into something much larger than what they had imagined. Their roadmap is ambitious, and I see big things in store for them.
Another project that I am involved in is a smaller cap project called, Omnimorphs. This project brings amazing artwork to the table with a great concept for utility. Omnimorph’s introduced what I believe is the first-ever “fuse” mechanic that will enable an Omnimorph holder to ‘fuse’ together two omnimorphs to combine traits, and to produce a visibly more appealing or rarer outcome. One Omnimorph gets burnt in this process, thus creating a deflationary asset.
Outside of these two, there are a handful of other successful projects. Feel free to do your own research but the likes of Cool Cats, CyberKongz, TIME, and many others are making waves on OpenSea’s chart.
[NFT Scams + Scammers]
Unfortunately, with an evolutionary space comes scammers, and they come in all shapes and sizes. First, you have the NFT pump and dump scam. This is straightforward, a promoter, or celebrity backs or develops an NFT project, claiming that it will “moon”. Users can “mint” or purchase an NFT before it is launched and get in at the Mint price, anywhere from .05-.08ETH with expectations that the founder will rocket it to 1ETH+ through “marketing”. A lot of the time, these projects are pump and dump schemes where they take the mint money and hide- no further development or marketing occurs after the fact.
Another popular scam comes when holding a “blue chip” NFT project in your wallet. Scammers will develop a smart contract disguised as an NFT, and airdrop it to your wallet, wait for you to accept it, and have access to your wallet. They will then steal your assets and leave you hopeless. If you get airdropped a random NFT, not verified or backed by a project, I will highly encourage you not to click or open it. I believe OpenSea allows you to report or remove it.
In conclusion, be careful who you trust when you indulge in the NFT space. The crypto market is volatile and can be a scary place. However, if you do plenty of research and find a project that you believe in, you too can reap the rewards.
The Crypto space is moving at a rapid pace, and shortly more widespread adoption of Crypto will be accepted. Twitter embarking on this journey will attract many eyes of the likes of big companies. The NFT space is just kicking off, so stay tuned and up to date on the latest advancements. Many video games are being developed on Ethereum’s network currently.
Next week, I will dive further into NFTs, gas fees, where and how Ethereum can improve its network, as well as the ever-indulging “gas wars”. If you have not been a part of one, or are unsure of what that is, stick around and be sure to check in next week on my second Newsletter.
Thanks for reading, and be sure to check in next week for my next Newsletter.