Singapore police suggest hardware wallets to combat malware

Chinese Nationals Detained in Crypto Mining Clampdown in LibyaAuthorities in Libya have detained 50 Chinese nationals suspected of involvement in an illicit crypto mining operation in Zliten, a city located 160 kilometers east of the Libyan capital of Tripoli.The attorney general’s office in Libya made the announcement on Friday, revealing that the individuals were caught operating a cryptocurrency mining farm within an abandoned iron factory.Photo by Dmitry Demidko on UnsplashMining operation dismantledPhotos and videos released by the office of Attorney General Siddiq Al-Sour showcased the dismantling process of the extensive mining systems discovered in Zliten.This is not the first instance of Chinese miners being detained for crypto mining activities in the North African country. The development follows the recent arrest of ten other Chinese nationals in the city of Misrata on the Mediterranean coast, as well as at two sites within the capital, Tripoli. The individuals were apprehended on Wednesday while being caught “red-handed” with numerous powerful equipment used for intricate proof of work (PoW) mining calculations. The mining rigs were subsequently confiscated by the attorney general’s office.Mining banDespite the official ban on cryptocurrency mining in the country, Libya has witnessed a high prevalence of such activities, with the nation recording the highest percentage of cryptocurrency mining across the African continent in 2021. It is estimated that Libya accounted for approximately 0.6 percent of global Bitcoin production during that year.Libya’s appeal as a destination for cryptocurrency mining stems from its low electricity costs, which stand at a remarkably low rate of $0.004 per kilowatt hour. This cost is approximately 40 times cheaper than in the United States, making Libya an attractive location for miners.While energy may be cheap, the increased demand for electricity that crypto mining brings puts a strain on what was an already vulnerable power grid in the country. That has resulted in frequent and lengthy power blackouts, particularly during the summer months.A lack of oversight has also encouraged an influx of Chinese miners, albeit with these recent arrests, it appears that the Libyan authorities are stepping up the level of oversight and enforcement. The vast majority of Bitcoin miners were based in China up until a mining ban was enforced in 2021.Global issueThat event led to an exodus of miners internationally. Some established themselves legally in the United States and elsewhere. The first casualty of illegal mining was Kazakhstan. The sudden arrival of miners led to its power grid coming under pressure. As a consequence, the Central Asian country clamped down on the activity, and later regulated it.In response to these illegal activities, Libyan authorities have intensified their efforts to combat cryptocurrency mining operations. They are conducting investigations into alleged mining sites in Tripoli and Misrata, aiming to curtail these activities and mitigate the strain on the country’s electricity infrastructure.The recent arrests highlight the ongoing challenges associated with illegal mining activities in jurisdictions globally where cheap energy can be exploited, giving rise to the need for enhanced regulatory measures to address these issues.

Bitcoin Miners Likely Selling at $28K Level, Says MatrixportAccording to a report by Singapore-headquartered digital asset financial services provider Matrixport, Bitcoin (BTC) is facing selling pressure at the $28,000 price level, possibly due to miners offloading their newly mined coins.The report, cited by CoinDesk on Friday, suggests that miners are being compelled to liquidate their inventory as profit margins have contracted in recent weeks.Photo by Pixabay on PexelsHashrate all-time highMining has become an intensely competitive and often unprofitable endeavor due to the ongoing rise in Bitcoin miner difficulty. The hashrate, or measure of how easily miners can discover a new block of Bitcoin reached an all-time high earlier this week. Markus Thielen, Head of Research at Matrixport, noted that given the current input cost and potential revenue expectations, most machines produced before 2022 appear to be unprofitable.“At the current input cost and potential output revenue expectations, most of the machines produced before 2022 appear to be unprofitable,” Thielen wrote.Forced sellingConsequently, miners are forced to sell their inventory at the current level rather than holding out for higher prices, which Matrixport anticipates. The report highlights the significant upside potential for miners if Bitcoin prices were to increase by 10% or more, as profitability could quadruple.The narrowing profit margins for miners reflect the challenges they face in a highly competitive market. As mining difficulty continues to rise, miners must allocate more resources and computing power to mine new coins, reducing their profitability. The situation is particularly tough for miners operating older machines, which are less efficient and more costly to run.The selling pressure exerted by miners can have a short-term impact on Bitcoin’s price. However, Matrixport’s analysis suggests that if Bitcoin experiences a notable price increase, miners could see a substantial improvement in their profitability. This potential upside convexity creates an incentive for miners to continue their operations and withstand the current market conditions.Ordinals bring increased feesOn the other hand one recent development that is assisting miners is the increase in transaction fees, with the development of Bitcoin Ordinals and BRC-20 tokens over the course of the past six months. That interest seems to be ongoing, and if anything we’re likely to see further development of tokens running on top of the Bitcoin blockchain. On Thursday, Seychelles-based crypto trading platform OKX proposed a new BRC-30 token standard which would enable staking of those tokens, alongside staking of bitcoin.Singapore-based Matrixport is a portfolio company of crypto investment venture capital firm Foresight Ventures, which is also headquartered in Singapore. The firm provides a suite of products that it is positioning to be innovative and easy to use, offering an all-in-one crypto financial services platform, enabling users to earn, invest, loan, and trade digital assets.The Matrixport report indicates that miners are likely selling their Bitcoin at the $28,000 level due to squeezed profit margins. While this selling pressure may affect short-term price dynamics, the potential for increased profitability if Bitcoin prices rise significantly provides miners with an optimistic outlook for the future.

Crypto.com, the Singapore-headquartered cryptocurrency exchange platform, has outlined that it has seen significant growth thanks to high-profile sports sponsorship and advertising. Reaping the rewardsThe company has established advertising partnerships with Formula 1 (F1) motor racing and the Ultimate Fighting Championship (UFC). These lucrative sponsorship deals have propelled the exchange into the spotlight of two massive fan bases, contributing to its expansion. In an interview with Cointelegraph last week, Eric Anziani, president and chief operating officer of Crypto.com, discussed the company's successful advertising campaigns with F1 and the UFC, as well as its naming rights deal for the Crypto.com Arena in downtown Los Angeles. In 2021, what was then the Staples Center was renamed to the Crypto.com Arena in a $700 million naming rights deal. Anziani expressed gratitude for these partnerships, emphasizing the importance of staying top of mind for users in the competitive cryptocurrency market.  That same year, the company signed a multi-year partnership deal with leading French football club Paris Saint-Germain (PSG), rolling out various PSG-related marketing activities since then.Photo by Austin Loveing on UnsplashBrand recognition benefitsMarket surveys conducted by Crypto.com indicate a high level of global awareness and brand recognition among retail cryptocurrency users. The exchange's logo prominently displayed during F1 races and UFC events has helped it reach millions of fans worldwide. ESPN reports an average of 1.11 million viewers per race for the 2023 F1 season in the United States alone, with global viewership exceeding one billion over the entire race calendar. Similarly, the UFC boasts a global audience, with some of its biggest fights attracting millions of pay-per-view viewers. Anziani highlighted the effectiveness of these partnerships in bringing people into the cryptocurrency space.  User base approaching 100 millionThese partnerships have significantly contributed to Crypto.com's growing user base, which is approaching 100 million users in 2024, up from an estimated 80 million in the previous year. Anziani discussed the factors that drive users' choice of exchange platforms, emphasizing the importance of compliance, security, convenient access to cryptocurrency and competitive fees. He noted that different users prioritize different aspects based on their trading preferences and requirements. The firm is not alone in pursuing high-profile sports sponsorship deals. Rival platform OKX has an ongoing sponsorship deal in place with Manchester City Football Club in the English Premier League (EPL). It also has doubled down recently on the sponsorship of F1 racing team McLaren. Other notable partnerships include crypto gambling platform Stake.com’s sponsorship of Sauber F1, crypto exchange platform Kraken’s deal with Williams F1 and BingX’s sleeve sponsorship agreement with Chelsea football club in the EPL. High-profile marketing initiatives are alive and well, although in a much more sober way than in 2022 when six crypto companies featured in Super Bowl advertising in the United States. Kraken’s chief marketing officer, Mayur Gupta, recently stated that the Super Bowl is no longer an effective means of promotion for crypto companies.