An influential senior portfolio manager has warned that money velocity collapsed in the US during the second quarter of 2020.

Money velocity is a metric that reflects the speed at which money moves around the economy. In a nutshell, the higher the velocity of money movement, the healthier the economy is. 

Unfortunately, for the traditional economy, money velocity hit historic lows in the US in the second quarter, as the Federal Reserve engaged in unprecedented money printing to try and combat the COVID-19 lockdown-induced economic crisis. 

In a 25 August blog post, Jeroen Blokland, a portfolio manager at asset manager Robeco, noted that although the lockdowns would on their own cause money velocity to fall dramatically, the sharp nature decline seen also suggests there “is just too much money to spend,” and that “a quick look at central bank balance sheets confirms this.”

Blokland also noted that the Fed may well have trapped itself in a vicious circle, because “the low velocity of money also means that even more money is needed to create inflation”, though he noted that so far that had only manifested in asset price inflation. 

With investors, institutions, businesses, and individuals, now realising the current crisis is likely to be far longer and more serious than anyone anticipated, cryptos, especially Bitcoin (BTC) are emerging as real safe havens, and breaking their correlation with traditional investment vehicles. 

Last week, as Bitcoin (BTC) broke the $12K barrier, we looked at how the COVID-19 lockdown-induced global economic crisis is combining with growing social unrest in the US, rising geopolitical tensions in the South China Sea, Middle East, and Eastern Europe, and a range of environmental problems, to form something of a perfect storm. 

All original content featured on this site is © Pentagon Digital Limited, 2020

The CEO of Europe’s biggest low-cost airline, Ryanair, has likened Bitcoin to a Ponzi scheme. 

Talking to The Times about a crypto scam called “Bitcoin Lifestyle”, Michael O’Leary, boss of the Dublin-based airline, said:

“I have never, and would never, invest one cent in Bitcoin, which I believe is equivalent to a Ponzi scheme. […] I would strongly advise everyone with any shred of common sense to ignore this false story and avoid Bitcoin like a plague.” 

Apparently, “Bitcoin Lifestyle,” which claims to be an automated Bitcoin trading system, had falsely claimed to be endorsed by O’Leary. 

Specifically, in what can only be described as a rather imaginative, if bogus, promotional campaign, those behind “Bitcoin Lifestyle” published an article on a fake news outlet claiming that O’Leary had wowed audiences on the Late Late Show, hosted by Ryan Tubridy, by revealing how much money the scheme had earned him. 

For added flair, the fraudsters even said the ‘National Ireland Bank’ had been so spooked they had tried to get the show pulled. Of course, the ‘National Ireland Bank’ doesn’t exist. 

Entrepreneurs and celebrities increasingly hijacked to promote crypto scams

As we’ve been reporting recently, crypto crooks are increasingly using fake endorsements from celebrities, politicians, and entrepreneurs to lure unsuspecting victims. The sophistication of the scams is also increasing, as exemplified by YouTube and Twitter hackers who take over or clone genuine accounts, and then use them to persuade people to part with their crypto. 

Just last month, Twitter suffered an unprecedented security breach, when Bitcoin (BTC) scammers hijacked scores of high-profile accounts, including those of Amazon boss Jeff Bezos, SpaceX and Tesla founder Elon Musk, Microsoft co-founder Bill Gates, former US president Barack Obama, Democratic presidential candidate Joe Biden, reality TV star Kim Kardashian, rapper Kanye West, and the corporate accounts of Uber and Apple. 

By the end of the month the suspected hackers, who conned people out of around $100,000 worth of Bitcoin, had been arrested and charged. They included a 19-year-old British man from Bognor Regis, a 22-year-old American from Orlando, and a 17-year-old boy from Tampa. The hackers are facing multiple felony charges, including conspiracy to commit wire fraud, conspiracy to commit money laundering, and the international access of a protected computer. 

In the same month, Indian YouTuber Ajey Nagar, who has over 6.7 million subscribers also saw his account hijacked by a ‘Bitcoin giveaway scam,’ while in June, Elon Musk and SpaceX fell victim to YouTube crypto scam hijackers. 

Meanwhile, Apple co-founder Steve Wozniak, and 17 others are suing YouTube over cryptocurrency scams. 

AYO.NEWS says:

The fact that Michael O’Leary condemned Bitcoin as a ‘Ponzi scheme’ clearly demonstrates he knows absolutely nothing about the cryptocurrency. Because, while certain cryptocurrencies and tokens do indeed share some alarming similarities with Ponzi schemes (“HEX Token”, cough, cough), Bitcoin couldn’t be further from a Ponzi scheme.

We guess it’s safe to assume that O’Leary is simply as ignorant of the cryptosphere as he is of the average legroom required by a fully-grown adult human being, and that he’s simply lumping all things crypto – the good, the bad, and the ugly – in as ‘Bitcoin.’ You know, like your grandmother, or most politicians would.  

However, as for ‘Bitcoin Lifestyle’ – well, that’s about as legit as OneCoin or AirBit Club. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

As a feared no-deal Brexit looks increasingly likely, cryptocurrency exchange Bitstamp is ditching London for Luxembourg. 

Founded in 2011, Bitstamp is one of the world’s oldest and biggest crypto exchanges, and has been operating in London  since July 2012. In 2016, the year of the Brexit referendum, the company established a separate Luxembourg office, operating as Bitstamp Europe SA. 

However, reports now suggest Bitstamp is migrating the accounts of its UK customers to its EU-based business, and is winding down its London operations. The company says it is making the move so that it can improve operational efficiency and comply with regulatory requirements.

Though Brexit has technically happened already, the so-called transition period effectively extended the status-quo until the end of 2020. However, while the COVID-19 crisis has distracted the public and media, progress in negotiations has pretty much ground to a halt, and a no-deal scenario looks increasingly likely. 

On 21 August, Michel Barnier, the EU’s chief negotiator warned a post-Brexit deal was looking “unlikely.”

Just yesterday, a Cabinet Office document entitled “reasonable worst-case scenario”, dated July 2020, was leaked to a major British newspaper. It outlined emergency plans drawn up to cope with the double whammy of a second COVID-19 wave and simultaneous no-deal Brexit. 

The shocking document revealed plans for the Royal Air Force to airdrop food to the Channel Islands, deploy the Royal Navy to stop British fishing boats clashing with EU vessels, and deploy soldiers to the streets to combat severe disorder – which could be triggered by food, fuel, power, and medicine shortages. As if that wasn’t enough, the document also threw in the possibility of major floods (non-Brexit related), and even animal diseases spreading through the countryside! 

AYO.NEWS says:

Over the past couple of years we’ve covered Brexit, and the possible implications for various sectors including iGaming, extensively here at AYO.NEWS. However, the transition period and unprecedented COVID-19 crisis has taken everyone’s eyes off the ball, and now there are just weeks left to avert another economic disaster for the UK. 

We really don’t blame Bitstamp for packing their bags, and expect more to follow. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

As the COVID-19 crisis rages on, there are growing calls for the technology to be used for contact tracing.

Speaking at the Blockchain Global Governance Conference (aka FIN/SUM Blockchain & Business) on 24 August in Tokyo, Japanese Deputy Prime Minister and Finance Minister, Tarō Asō, said he believed blockchain could play a key role in combating the coronavirus pandemic.

Specifically, Asō pointed out that blockchain could provide contact tracing solutions that allowed authorities to get a better understanding of the situation while maintaining a degree of privacy for individuals. 

Asō also acknowledged that Japanese regulators and the blockchain community had issues that needed addressing, highlighting the fact that many are still distrustful of regulators, believing they are stifling innovation because they don’t fully understand the technology. 

Staying with Asia, COVID-19 and blockchain, just last week we reported how the pandemic is catalysing the commercial adoption of blockchain technology as companies, forced to conduct more business online, are urgently searching for effective, secure solutions. 

AYO.NEWS says:

While it’s clear that blockchain technology can improve most complex public and commercial systems, we need to be extremely careful when approaching the COVID-19 situation.

Since the pandemic began, we’ve seen governments around the world cast liberties and rights, that wars have been fought to protect, aside in a rush to “combat the virus.” Furthermore, although much-vaunted by politicians and bureaucrats, contact tracing has been shown to be largely ineffective for all but the smallest of outbreaks. 

In fact, despite the privacy safeguards offered by decentralised technologies, it’s hard to see how large-scale contact tracing can be employed unless an all-encompassing, near real-time Orwellian-style surveillance system is also established. 

Maybe politicians would do better to forget contact tracing altogether, and instead focus on using new technologies like blockchain and AI to research solutions and better manage the organisation of supplies – for example, to avoid the shameful Personal Protection Equipment (PPE) farce that threatened to paralyse the UK’s response in the first months of the crisis. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

The brother of Ruja Ignatova, the fugitive founder of giant Bulgaria-based crypto scam OneCoin, has agreed to testify against her in a civil case. 

Konstantin Ignatov, who was arrested at Los Angeles International Airport in March 2019, is also a defendant and cooperating witness in an ongoing parallel criminal case, has agreed to testify against his sister, as part of a settlement that saw civil charges against him dropped. 

It has been revealed that, as part of the settlement, Konstantin is working with the OneCoin investors bringing the class action lawsuit forward, and has promised to testify against his own sister if the suit ends up going to trial (they need to catch Ruja first). 

Race horses, money laundering and murder in Mexico

Konstantin’s testimony has already helped convict lawyer and OneCoin money launderer Mark Scott, in November 2019. Scott is thought to have laundered around $400 million for the scam.

He also dished the dirt on Amer Abdulaziz Salman, owner of Phoenix Thoroughbreds, revealing him to be a key money launderer under the direction of Gilbert Armena – an co-conspirator of Mark Scott, and Ruja Ignatova’s former lover. 

Despite Salman denying any links to OneCoin, last week Phoenix Thoroughbreds, which claims to have over 300 horses worldwide, was barred from competing in France and the company has also withdrawn from British racing. 

In July police in Mazatlan, Mexico, found the bodies of former OneCoin promoters, Chilean national Oscar Brito Ibarra and Argentinian national Ignacio Ibarra, stuffed into suitcases. It is believed the men were murdered by suffocation and had been kidnapped two days earlier. 

Still not looking good for Konstantin

However, despite pleading guilty to charges of money laundering and conspiracy to commit wire fraud, and cooperating with investigators and investors, Konstantin Ignatov could still be facing up to 90 years in jail. He is due to be sentenced on 11 November 2020. 

AYO.NEWS says:

The sheer size and sophistication of the OneCoin scam is still difficult to grasp, with estimates suggesting it was worth around $4 billion. The perpetrators of the scam went to great lengths to make the scheme look legitimate, with researchers finding a concerted effort was made to flood the internet with fake positive reviews and drown out any criticism. 

Staying with high-profile crypto scams, earlier this week the operators of AirBit Club, and an attorney, have been charged with fraud and money laundering by authorities in New York. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Blockparty has launched a curated digital collectibles marketplace, allowing users to own, sell, and trade valuable digital assets. 

The new marketplace provides fans with the opportunity to access rare, authentic collectibles in three main categories; art, music, and sports. Yesterday’s collectible launch focused on the art category, and features rare and valuable works from recognized legacy artists never seen before in the digital world. 

Blockparty’s marketplace uses non-fungible tokens (NFTs) issued on blockchain, allowing the digital creator or content owner to add a permanent, tamper-proof watermark to the digital file to ensure its legitimacy. 

Discussing the launch CEO of Blockparty, Vladislav Ginzburg, said:

“On one hand, our new marketplace allows art, music, and sports enthusiasts to exchange and validate the authenticity of rare digital collectibles they want from some of their biggest idols.

“On the other, we’re solving an age-old problem that entertainment brands have faced for decades – creating lifetime value with their fans. With our unique digital assets marketplace, we’re not only creating greater access to collectibles on a global scale but also heightening the fan experience; we’re ultimately helping everyone, from artists to fans, monetize it in a completely new way.”

While contemporary artist and digital art creator on Blockparty, Ryan Keeley, added:

“This is a monumental opportunity for me to offer my collectors a new and unique way to obtain valuable work in our current climate.

“Digital art has proven to be a worthy collectible, and its track record among collectors is rapidly growing. With most galleries, art fairs, and even private viewing rooms shut down until the unforeseeable future, this is the platform that artists need to engage with to keep their livelihoods afloat and adapt to a digital future.

“With Blockparty, I’m able to offer my collectors access to my digital art backed with the most innovative and protective technology and can continue engaging with the public to provide them with truly unique collectibles that are worthy of ownership and will continue to increase in value exponentially into the future.”

According to the company, more than half (57%) of 18 to 24-year-olds prefer buying collectibles online, and the online art and collectibles marketplace is worth some $4.8 billion.

AYO.NEWS says:

The possibilities for NFT-based collectibles and art are endless, and as we’ve previously speculated, maybe one day people will hold a considerable portion of their wealth as digital assets other than cryptocurrencies.

Staying with digital art, earlier this week Paris Hilton sold a digital painting of her cat for $17K worth of ETH on Ethereum-based auction platform Cryptograph (proceeds went to charity).    

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020