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Crypto Hacks Are Down and Hackers Tend to Return Stolen Money.

The significant decrease in cryptocurrency theft, with approximately USD 400 million stolen across nearly 40 attacks in the first three months of 2023, marks a notable improvement compared to the corresponding period in 2022. This information stems from the latest research conducted by TRM Labs, a prominent Web3 think tank and commercial enterprise renowned for its expertise in constructing the financial framework for the emerging Web3 ecosystem.

Several factors have likely contributed to this decline in crypto-related theft, but one of the most influential elements is undoubtedly the high-profile legal actions taken against individuals involved in such illicit activities. The apprehension and subsequent arrest of Avraham Eisenberg, a notorious crypto-thief, in the preceding year have sent a strong message to potential wrongdoers and have significantly deterred them from engaging in criminal acts within the cryptocurrency space.

Eisenberg’s arrest generated shockwaves throughout the crypto community and beyond, serving as a poignant reminder that law enforcement agencies are actively targeting and pursuing those responsible for crypto-related crimes. The resulting media coverage and subsequent legal proceedings showcased the commitment of authorities to bring wrongdoers to justice, creating a sense of fear and uncertainty among potential attackers.

The impact of such high-profile cases extends beyond the immediate consequences faced by the individuals involved. It serves as a powerful deterrent, dissuading potential criminals from engaging in cryptocurrency theft and undermining their confidence in successfully executing such nefarious activities. The risk of being apprehended, prosecuted, and facing severe legal consequences has become increasingly apparent, thereby discouraging malicious actors from attempting to exploit vulnerabilities within the crypto ecosystem.

Moreover, the increased collaboration between regulatory bodies, law enforcement agencies, and industry stakeholders has played a crucial role in combating crypto-theft. By sharing information, intelligence, and best practices, these entities have strengthened their collective ability to detect, prevent, and respond to cryptocurrency attacks. This collaboration has fostered a more robust security infrastructure within the cryptocurrency industry, making it increasingly difficult for criminals to exploit vulnerabilities and syphon funds from unsuspecting victims.

The decline in cryptocurrency theft not only represents a positive trend for investors, businesses, and individuals operating within the crypto space, but also signifies the growing maturity of the industry as a whole. As the sector continues to evolve, an increased focus on security, regulation, and law enforcement cooperation will be essential in maintaining the trust and confidence necessary for widespread adoption of cryptocurrencies and the underlying technologies.

Number of Ether Staked Has Surged By 4.4 Million Since Shapella Upgrade.

Earlier this year, in April, we provided coverage on the anticipated Shapella upgrade, a significant development for the Ethereum (ETH) network. During that time, investors and speculators held differing opinions on whether this upgrade would have a noticeable impact on the market price of ETH. However, as time has passed, any doubts surrounding the upgrade’s potential have been completely shattered, as evidenced by the tremendous surge in interest in staking Ether, which has witnessed a staggering increase of 4.4 million stakeholders.

For those who may be unfamiliar with the concept, ‘staking’ refers to the practice of investors holding onto their coins in order to generate passive income, rather than immediately selling their assets for a lump sum profit. This approach allows stakeholders to actively participate in the network’s consensus mechanism and contribute to its security and operations. In the case of Ethereum, staking involves locking up a certain amount of ETH in a smart contract, thereby supporting the network’s transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus algorithm.

The surge in interest in staking Ether can be attributed to several factors. Firstly, the Shapella upgrade, also known as Ethereum 2.0, has been touted as a crucial milestone in Ethereum’s evolution. This upgrade aims to address the scalability and energy efficiency challenges that have been associated with the PoW consensus mechanism. By transitioning to PoS, Ethereum aims to improve transaction throughput, reduce fees, and minimise the environmental impact of mining operations.

The anticipation and subsequent implementation of the Shapella upgrade have instilled confidence and enthusiasm among investors, as it represents a significant step towards a more scalable and sustainable Ethereum network. The upgrade has showcased Ethereum’s commitment to innovation and its ability to adapt to the evolving needs of the decentralised finance (DeFi) ecosystem, which has experienced remarkable growth and popularity in recent years.

Additionally, staking offers a unique opportunity for investors to earn passive income by simply holding their ETH tokens. By participating in the staking process, stakeholders contribute to the network’s security and are rewarded with additional ETH tokens as an incentive for their support. This presents an attractive alternative to traditional investment strategies, where investors might typically seek to sell their assets for immediate profit. Staking provides a more long-term and sustainable approach, aligning with the ethos of decentralised finance and fostering a sense of community participation in the Ethereum network.

The substantial increase of 4.4 million stakeholders engaging in staking activities demonstrates the growing recognition and adoption of this investment strategy within the Ethereum community. It reflects the shifting mindset among investors, who are now embracing the potential for steady and continuous returns offered by staking rather than solely focusing on short-term gains through asset liquidation.

As interest in staking Ether continues to surge, it is expected to have a significant impact on the overall market dynamics of ETH. The increased number of stakeholders holding onto their tokens for staking purposes effectively reduces the available supply of circulating ETH, which, in turn, can create upward pressure on the market price. This renewed demand and the changing investor sentiment towards staking as a viable investment strategy contribute to the overall positive outlook for the future of Ethereum and its native token, ETH.

Bitcoin hurt by recent US news, but still holding at $27K.

Throughout this month, our Newsletter has provided extensive coverage of the pivotal role that US regulation has played in shaping the narrative surrounding Web3 developments. As various nations strive to establish comprehensive regulatory frameworks to govern the next phase of the Web3 ecosystem within their jurisdictions, the United States has emerged as a leading voice advocating for caution and prudence in the realm of Web3 finance.

The US regulatory landscape has witnessed intense scrutiny and deliberation, reflecting the country’s commitment to striking a balance between fostering innovation and safeguarding consumer protection. The evolving nature of Web3 technologies and decentralised finance has prompted US lawmakers and regulators to carefully assess the potential risks and benefits associated with these advancements. Consequently, the US has taken a proactive stance in implementing regulations to ensure compliance, transparency, and accountability within the Web3 sector.

Amidst the discussions and debates surrounding US regulation, it is noteworthy that Bitcoin and other cryptocurrencies built upon its blockchain have displayed resilience in the face of recent challenges. Despite the regulatory uncertainties and the seemingly negative tone surrounding crypto trading within the US, the market has demonstrated stability, with Bitcoin maintaining a steadfast value of just under $27K.

This steadfastness can be attributed to several factors. Firstly, Bitcoin, as the pioneering cryptocurrency, has established itself as a store of value and a widely recognized digital asset. Its enduring popularity and the growing acceptance of Bitcoin as a legitimate investment instrument have contributed to its resilience in the face of regulatory turbulence. Additionally, the underlying technology and the decentralised nature of cryptocurrencies have garnered a dedicated community of supporters who remain committed to the long-term prospects of Bitcoin and the broader crypto market.

Furthermore, the current market conditions suggest that despite regulatory challenges, there is still substantial demand for cryptocurrencies. Investor confidence and resilience stem from a combination of factors, including the belief in the transformative potential of blockchain technology, the allure of decentralised finance, and the broader macroeconomic landscape. These factors continue to fuel interest and investment in cryptocurrencies, allowing them to maintain a stable position even amidst regulatory uncertainties.

It is important to note that the cautious approach taken by US regulators is aimed at protecting investors and maintaining the integrity of the financial system. By implementing comprehensive regulations, the US seeks to mitigate potential risks associated with illicit activities, market manipulation, and investor fraud. While these regulatory efforts may introduce short-term challenges and uncertainties, they ultimately aim to foster a more secure and trustworthy environment for the growth and maturation of the Web3 ecosystem.

As the US regulatory landscape evolves, it is crucial for market participants and stakeholders to stay informed and adapt to the changing dynamics. The ongoing dialogue and collaboration between regulators, industry leaders, and the wider crypto community are vital in shaping a regulatory framework that strikes the right balance between innovation and consumer protection.