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It’s been an “interesting” year for the crypto space. Hacks, alleged fraud, huge losses, bankruptcies and other negative phenomena sadly repeated, undermining confidence in the digital economy.
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However, some experts believe that these events and the post-FTX landscape could spark positive developments such as much-needed regulation, bring clarity and help restore confidence. increase.
2022 was a record year when it came to cryptocurrency hacking. $3.7 billion was stolen, according to analysis by blockchain intelligence firm TRM Labs. Most of the hacks were against his DeFi projects, accounting for 80% of all stolen funds.
There were 10 “mega hacks,” which TRM defines as hacks involving $100 million or more. These accounted for 75% of the total stolen volume in 2022.
After this chaotic year, what can we expect in 2023?
More thefts in progress
Ari Redbord, Head of Legal and Government Affairs at TRM Labs, said:
“The nature of cryptocurrencies allows North Koreans and other cybercriminals to steal funds with astonishing speed and scale,” explains Redbord. “2023 will see renewed global collaboration on ransomware, but the most important part will be a move by crypto companies, especially the DeFi ecosystem, to strengthen cyber defenses against bad actors. prize.”
Redbord added that the only way to stop a hack is to stop it in the first place.
What about regulations?
While there hasn’t been much movement from Congress in 2022 when it comes to regulating the crypto space, Redbord said global consistency on digital asset frameworks has begun to grow.
“Although a global regulatory regime will never materialize, the cryptographic nature of enabling cross-border transfers of value at internet speeds means that consistent standards are needed,” he said. said. “When it comes to stablecoins, licensing schemes and anti-money laundering standards, we are starting to see it in places like the EU, Singapore, Dubai and the UK.
“In 2023, we are likely to see more of that globally, in addition to the US stablecoin movement,” said Redbord.
FTX Fallout
Clearly, the FTX debacle was one of the biggest setbacks of 2022. This impacted the crypto space, but according to multiple experts, it wasn’t a “crypto event”.
Redbord said what’s interesting about FTX is that legislation has already been enacted to stop and punish this kind of behavior, and it’s rolling out in real time. The Justice Department uses criminal fraud and conspiracy laws, regulators such as the Securities and Exchange Commission (SEC) file civil lawsuits, and investors and consumers go to court.
“FTX was more like Enron and Lehman than a cryptocurrency-powered business,” said Redbord. ” [alleged] The fraud committed by FTX executives occurred not on the blockchain, but in the opaque corridors of power that existed long before cryptocurrencies. “
self custody
In the post-FTX/Celsius/Voyager crypto landscape, we expect more investors to turn to self-custody of their assets. Bitcoin.com general counsel Joseph Collement says he hopes it will happen “because of the chaos of 2022.”
“That’s how this industry was originally envisioned by its creators,” he said. “And by returning to this vision, this is how we grow and thrive.”
Cuban Saylor Wants More Bitcoin
As long as 2023 is more widely held in this space, Bitcoin will reign supreme for some, including Mark Cuban and MicroStrategy founder Michael Thaler.
On Dec. 26, Cuban said on Bill Maher’s Club Random podcast that Bitcoin is a better store of value than gold and that he wants to buy more. According to Decrypt,
As for MicroStrategy, it continues to grow its Bitcoin holdings. As of December 27, MicroStrategy held approximately 132,500 Bitcoins acquired for approximately $4.03 billion.
Between November 1st and December 21st, 2022, MicroStrategy purchased 2,395 Bitcoins for approximately $42.8 million in cash. According to SEC filings, the average price per bitcoin is around $17,871.
The company sold 704 Bitcoins on December 22nd, but used wash trading tactics to buy 810 Bitcoins on December 24th for around $13.6 million.
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This article originally appeared on GOBankingRates.com: What Will Happen with Cryptocurrencies in 2023?
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