Blockchain
Expert issues warning after Tom Brady NFT sells for £30.4k, as marketplaces saw £30 million stolen last year
An expert has warned those considering purchasing an NFT off the back of the Tom Brady £30.4k sale, as NFT marketplaces saw £30 million stolen by scammers last year.
The findings, pulled together by Smart Betting Guide, analyzed a database recording crypto scams and exploits to identify the most vulnerable platforms and blockchains over the last year – with NFT marketplaces and collections frequently targeted by cybercriminals.
While NFTs benefit from decentralized ownership, verifiable authenticity, and transparent ownership history due to being built on blockchain technology, they are susceptible to security risks like phishing attacks, physical theft, malware, and social engineering attacks.
Before the Super Bowl LVIII, a video NFT of Tom Brady sold for £32,436, while an NFT of Joe Montana – who previously played for both the Chiefs and 49ers – went for £27,088.
The celebrity appeal behind these NFTs could see a surge in demand for more crypto endorsements, especially ahead of major sporting or starstudded events.
However, users should be cautious if considering making a purchase, as NFT platforms saw £30,366,456 in funds lost due to scams – the vast majority of which (97%) were stolen from Ethereum users (£29,530,291), followed by Binance (£816,247) and Cardano (£19,918).
There’s all the more reason to be especially cautious now, as the analysis also found that February is one of the worst months for crypto losses, with an average of £623,366,085 taken by scammers each year. This is 6% above the typical monthly loss (£594,861,199).
However, NFT databases and collections saw fewer funds stolen than other platforms, with crypto bridges losing more than £326 million (£326,241,991) due to exploits last year. This is 118% higher than the average loss reported across the affected platforms (£149,640,022).
The blockchain that saw the most funds stolen this way was Ethereum, accounting for 88% of the losses (£318,030,610), followed by Avas (£8,127,726) and Binance (£83,655).
Following behind as the second-most affected category is CeFi platforms, with £198,296,739 lost due to cybercriminals over the last year. This loss is a third (33%) above the average.
The category that saw the lowest sum lost was stablecoins, designed to maintain a stable value relative to a specific asset, such as other cryptocurrencies or commodities. In 2023, scammers stole £8,009,767 from this crypto – 95% below the average (£149.6k).
While February was the third month that saw the most funds stolen, the worst month came out as December, with a loss of £821,716,080 (39% above the monthly average).
Ranking second is January, with an average of £662,039,960 taken yearly. This is 12.2% above the monthly average and makes for a tough start to the year for blockchain users.
The risk drops slightly once we get into March, with the average sum lost equating to 2.9% less than the monthly average. Overall, the likelihood of being hit by a crypto scam is higher in the first half of the year compared to the second half – aside from in December.
As well as identifying when blockchain users are most likely to be targeted by scammers, the data reveals which scams resulted in the highest losses since 2011. Rug pull exit scams proved the most damaging, with a total of £41.3 billion stolen over the past 13 years.
Regarding the findings, Zigmas Pekarskas, CEO of Smart Betting Guide, said: “As with any technical asset, cryptocurrency is vulnerable to scams – especially as it continues to grow in popularity and application. This is particularly true given crypto transactions are often anonymous and typically irreversible, so it’s difficult to trace transactions back to individuals.
“Some platforms, including NFT databases, are more susceptible to cybercrime than others. When transacting on one of these platforms, ensure you do your research and due diligence. Research the NFT marketplace and the seller, focusing on reviews, ratings, and feedback from other users. This must be done even when purchasing an extremely limited or in-demand item, like the Tom Brady NFT that sold before the Super Bowl.
“Verify that the NFT you’re interested in is authentic and not an authorized copy, and check the usage rights. Use a secure cryptocurrency wallet to store your funds and NFT assets – ideally with multi-signature support – and report any suspicious activity or fraudulent listings to the marketplace’s support team as early as possible.”
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Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them
The financial landscape is rapidly evolving, with the integration of blockchain technology and cryptocurrencies becoming more prominent. Among these, Ethereum ETFs (Exchange-Traded Funds) have emerged as a significant investment vehicle, offering exposure to the Ethereum blockchain’s native cryptocurrency, Ether (ETH), without requiring direct ownership. However, it’s crucial to understand that Ethereum ETFs are distinct from the blockchain itself and serve different purposes in the investment world.
Understanding Ethereum and ETFs
Ethereum: A decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). It operates using its cryptocurrency, Ether (ETH), which fuels the network.
ETF (Exchange-Traded Fund): A type of investment fund that holds a collection of assets and is traded on stock exchanges. ETFs can include various asset classes, such as stocks, commodities, or bonds.
Ethereum ETFs: The Intersection of Traditional Finance and Cryptocurrency
An Ethereum ETF provides a way for investors to gain exposure to the price movements of Ether without directly purchasing the cryptocurrency. This is achieved through an ETF structure, where the fund holds assets linked to the value of Ether, and investors can buy shares of the ETF on traditional stock exchanges.
Key Features of Ethereum ETFs:
- Indirect Exposure: Investors gain exposure to Ether’s price changes without needing to manage or store the cryptocurrency themselves.
- Regulatory Compliance: Unlike the relatively unregulated cryptocurrency market, ETFs operate under the oversight of financial regulators, offering a layer of investor protection.
- Accessibility: Ethereum ETFs are available through traditional brokerage platforms, making them accessible to a broader range of investors.
Why Invest in an Ethereum ETF?
- Diversification: Including an Ethereum ETF in a portfolio can provide exposure to the cryptocurrency market, potentially enhancing diversification beyond traditional assets.
- Convenience and Familiarity: ETFs are a familiar investment product, simplifying the process of investing in cryptocurrencies.
- Professional Management: ETF managers handle the investment decisions, including the buying and selling of assets, which can be advantageous for those less familiar with the cryptocurrency space.
- Regulatory Oversight: ETFs are subject to regulatory scrutiny, potentially offering more safety and transparency compared to direct cryptocurrency investments.
- Potential for Growth: As the cryptocurrency market grows, ETFs linked to assets like Ether may benefit from rising prices.
Key Differences Between Ethereum and Ethereum ETFs
While both are related to the Ethereum blockchain, Ethereum itself and Ethereum ETFs represent different forms of investment:
- Ethereum (ETH):
- Direct ownership of the cryptocurrency.
- Full exposure to Ethereum’s features, including staking and network participation.
- Traded on cryptocurrency exchanges.
- Highly volatile and largely unregulated.
- Ethereum ETF:
- Indirect exposure through shares representing Ether’s value.
- Traded on traditional stock exchanges under regulatory oversight.
- Offers a more stable and familiar investment structure.
- Typically lower volatility compared to direct cryptocurrency ownership.
Future Considerations for Ethereum ETFs
The approval and launch of Ethereum ETFs mark a significant milestone in bringing cryptocurrencies closer to mainstream finance. They offer a convenient and regulated means for investors to gain exposure to the growing digital assets market. However, they also come with limitations, such as not allowing direct participation in the Ethereum ecosystem’s innovations, like dApps and smart contracts.
As the market evolves, we may see more sophisticated financial products that better capture the full potential of the Ethereum ecosystem. For now, Ethereum ETFs provide a balanced option for those interested in cryptocurrency exposure within the framework of traditional finance.
In conclusion, while Ethereum ETFs offer a gateway into the world of digital assets, they should be viewed as complementary to, rather than a replacement for, direct investment in the underlying blockchain technologies. Investors should carefully consider their investment goals, risk tolerance, and the unique attributes of both Ethereum and Ethereum ETFs when making investment decisions.
Source: blockchainmagazine.net
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Nexo, a leading institution in the digital assets industry, has reinforced its commitment to data security by renewing its SOC 2 Type 2 audit and attaining a new SOC 3 Type 2 assessment without any exceptions. This rigorous audit process, conducted by A-LIGN, a respected independent auditor specializing in security compliance, confirms Nexo’s adherence to stringent Trust Service Criteria for Security and Confidentiality.
Key Achievements and Certifications
- SOC 2 and SOC 3 Compliance:
- SOC 2 Type 2: This audit evaluates and reports on the effectiveness of an organization’s controls over data security, particularly focusing on the confidentiality, integrity, and availability of systems and data.
- SOC 3 Type 2: This public-facing report provides a summary of SOC 2 findings, offering assurance to customers and stakeholders about the robustness of Nexo’s data security practices.
- Additional Trust Service Criteria:
- Nexo expanded the scope of these audits to include Confidentiality, showcasing a deep commitment to protecting user data.
- Security Certifications:
- The company also adheres to the CCSS Level 3 Cryptocurrency Security Standard, and holds ISO 27001, ISO 27017, and ISO 27018 certifications, awarded by RINA. These certifications are benchmarks for security management and data privacy.
- CSA STAR Level 1 Certification:
- This certification demonstrates Nexo’s adherence to best practices in cloud security, further solidifying its position as a trusted partner in the digital assets sector.
Impact on Customers and Industry Standards
Nexo’s rigorous approach to data protection and compliance sets a high standard in the digital assets industry. By achieving these certifications, Nexo provides its over 7 million users across more than 200 jurisdictions with confidence in the security of their data. These achievements not only emphasize the company’s dedication to maintaining top-tier security standards but also highlight its proactive stance in fostering trust and transparency in digital asset management.
Nexo’s Broader Mission
As a premier institution for digital assets, Nexo offers a comprehensive suite of services, including advanced trading solutions, liquidity aggregation, and tax-efficient credit lines backed by digital assets. Since its inception, the company has processed over $130 billion, showcasing its significant impact and reliability in the global market.
In summary, Nexo’s successful completion of SOC 2 and SOC 3 audits, along with its comprehensive suite of certifications, underscores its commitment to the highest standards of data security and operational integrity. This dedication positions Nexo as a leader in the digital assets space, offering unparalleled security and peace of mind to its users.
Source: blockchainreporter.net
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