Top tweets: Binance bail out victims of $615m digital coin theft

Verdict lists five of the top tweets on blockchain in Q2 2022 based on data from GlobalData’s Technology Influencer Platform.

The top tweets are based on total engagements (likes and retweets) received on tweets from more than 494 blockchain experts tracked by GlobalData’s Technology Influencer platform during the second quarter (Q2) of 2022.

1. Changpeng Zhao’s tweet on Binance bailing out victims of a $615m digital coin theft

Changpeng Zhao, CEO of the cryptocurrency exchange platform Binance, shared an article on the company being among the investors to bail out victims of a $615m heist. Vietnam-based technology company Sky Mavis, which runs the non-fungible token (NFT)-based online metaverse video game Axie Infinity, stated that it had recently been hit by one of the worst crypto thefts on record, leaving users unable to withdraw money from the game, the article detailed.

Sky Mavis, a developer of decentralised services and applications, stated that it would return the lost money through its own balance sheet funds and an additional $150m raised by investors, including Binance and the venture capital firm a16z. The Axie Infinity game enables 2.2 million players to buy and trade in-game goods in the form of NFTs, competing against each other to win cryptocurrency tokens, the article noted. The $2.1tn cryptocurrency industry, which witnessed an increase in investments during the Covid-19 pandemic, has long been targeted by hackers.

Username: CZBinance

Twitter handle: @cz_binance

Likes: 3,187

Retweets: 511

2. Alex Gladstein’s tweet on the prospects of using the Lightning Network for retail purchases

Alex Gladstein, chief strategy officer at the Human Rights Foundation, a nonpartisan non-profit organisation supporting human rights globally, tweeted on financial services company Morgan Stanley’s report on the on the prospects of using the Lightning Network for retail purchases and on the long-term shift in payments and settlements using digital and cryptocurrencies rather than fiat currencies such as the US dollar. According to the report, one in every six point-of-sale machines worldwide used software provided by the technology and consulting company NCR Corporation, making the announcement significant despite a small number of retail businesses choosing to add the crypto feature, Gladstein added.

For instance, payments application Strike that operates on the Lightning Network is directly competing with fund transfer platform Visa Direct, which provides real-time settlement. The key distinction for merchants will be a much lower transaction fee, while customers can host their bitcoin on a private and secure network, allowing privacy of transactions. The report also highlighted the various challenges in using the Bitcoin for payments, including taxes, volatility, and customer psychology.

Username: Alex Gladstein

Twitter handle: @gladstein

Likes: 530

Retweets: 90

3. Roger Ver’s tweet on BitcoinCash being rapidly adapted globally

Roger Ver, CEO of Bitcoin.com, a Bitcoin exchange and crypto wallet developer, shared an article on BitcoinCash (BCH) being the real peer-to-peer (P2P) electronic cash being rapidly adapted around the world. BCH is described as P2P cash that is decentralised fast, secure, and can be used as cash in everyday needs. An additional benefit of the BCH is that it is limited to 21 million, and therefore, cannot be printed, minted, or added, the article detailed. Meanwhile, the US dollar is being printed in trillions, which is creating higher inflation in the market.

The article further noted that some countries like Venezuela has been rapidly adopting the BCH, making fiat currency practically insignificant. Other countries such as India, Dubai, Grenada, USA, Australia, and Slovenia, have also seen a rapid rise in merchants adopting the BCH, the article detailed. The BCH is available around the world at crypto automated teller machines (ATMs) and online exchanges globally.  

Username: Roger Ver

Twitter handle: @rogerkver

Likes: 127

Retweets: 24

4. Emin Gün Sirer’s tweet on Argentina’s IMF $45bn deal having an anti-cryptocurrencies stance

Emin Gün Sirer, CEO of the fastest smart contracts platform Ava Labs, shared an article on Argentina’s International Monetary Fund (IMF) bailout deal including a clause that has a tough anti-cryptocurrency stance. The article detailed that Argentinian senators approved a $45bn bailout deal with the IMF that will avoid defaulting on its debts, but also included a clause that discouraged the use of cryptocurrencies in an effort to prevent money laundering, and other activities to further protect financial stability.

The IMF deal, if successful, is expected to offer Argentina a payment-postponing grace period through 2026, with the country receiving about $9.8bn in its 22nd agreement with the IMF, the article further noted. Argentina is expected to benefit from this as it was looking at a $2.8bn payment that was due to the IMF by the 22 March 2022, and $39bn in debt payments through 2023. Despite some senators approving the move to secure financing, others believe that it will have economic impacts such as forcing a reduction in government deficits, increasing interest rates, and significantly cutting energy subsidies.

Username: Emin Gün Sirer

Twitter handle: @el33th4xor

Likes: 124

Retweets: 25

5. Brent Donnelly’s tweet on shorting Coinbase

Brent Donnelly, president of Spectra Markets, a financial services company, shared a video on Jim Chanos, founder and managing partner of Kynikos Associates, an exclusive short selling investment firm, explaining how Coinbase’s $COIN predatory business model is making it an appealing short. According to him, the cryptocurrency firm is not making money at 150 base points, the video illustrated. As a result, the company is likely to be cutting costs faster than revenues as it is losing money.

Chanos believes that slashing of the costs will put the company behind the curve with revenues dropping faster than their cutting costs. He further added that tech firms do not do well in reverse, that is when they have to start shrinking unfavourable things start happening. Coinbase had $350m of share-based compensation in the first quarter of this year, which amounts to nearly 20 million shares or stock and a 200 million share base.

Several companies have therefore started to short as their stocks are down and the share-based compensation is going to be dilutive to their existing shareholders. Digital payments company Block is also one where the business model does not work and they are not profitable if share-based compensation is included as a real expense, he added.

Username: ʎllǝuuop ʇuǝɹq

Twitter handle: @donnelly_brent

Likes: 110

Retweets: 19


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