Crypto is Not a Reliable Alternative to Fiat Currency, Says Head of Bank for International Settlements

Head of the Bank for International Settlements Agustin Carstens has stated that the argument that crypto is a viable alternative to fiat currency has been settled in the wake of the digital-asset sector's recent turmoil.

BlackRock Enters Metaverse ETF Competition with iShares Future Metaverse Tech and Communications ETF

BlackRock, the world's largest asset manager, has joined the ever-growing competition in the metaverse ETF space, with its launch of the iShares Future Metaverse Tech and Communications ETF.

> The ETF offers investment opportunities in companies that provide hardware and software for the Metaverse, a virtual world that blends digital platforms, social media, gaming, and augmented and virtual reality.

Crypto gaming start-up Immutable announces redundancies despite raising millions in venture capital

Immutable, the largest crypto gaming start-up in Australia, announced on Wednesday that it will be letting go of 11% of its workforce.

> This decision comes despite raising $280 million in venture capital funding over the past two years and being valued at $3.5 billion in March 2020.

> In a note to staff seen by The Sydney Morning Herald and The Age, Immutable's CEO and co-founder, James Ferguson, explained that the layoffs were necessary to maximize the longevity of the company's cash reserves and allocate its resources to the most critical projects.

> Ferguson took full responsibility for the layoffs and acknowledged their impact on the lives of affected staff members.

> He wrote, "As CEO, I am deeply aware that these role eliminations will directly impact the lives of many, and I take full ownership for these actions." Full report here.

Tezos and Google Cloud: New Partnership to Boost Web3 Development

Google Cloud is set to join the ranks of validators on the Tezos network, a blockchain platform, to enable its corporate clients to build Web3 applications on the network by deploying Tezos nodes.

> This is not Google Cloud's first foray into the blockchain space.

> The company began offering node-hosting services for Ethereum in October and became a validator on Solana shortly after.

> Notably, Google Cloud has previously highlighted the risks associated with hacked accounts being used to mine cryptocurrency by malicious actors.

> This indicates that Google is aware of the specific security risks involved in the digital asset industry. More here.

Indian Web3 Gaming Startup, Kratos Studios, Reaches $150M Valuation in $20M Seed Funding Round

Kratos Studios, a gaming startup based in India that leverages blockchain technology, has secured $20 million in a seed funding round, led by Accel.

> The round also included investments from other notable players such as Prosus Ventures, Courtside Ventures, Nexus Venture Partners, and Nazara Technologies.

> As part of the funding, the startup has also acquired IndiGG, a sub-DAO of Yield Guild Games DAO, via a token swap.

> The move will see existing INDI token holders swap their tokens for new Kratos tokens, which will be launched in a year.

> According to Kratos co-founder, Manish Agarwal, the swap will allow token holders to maintain the value of their initial investment without any markdown. Kratos Studios was founded by Manish Agarwal, the former CEO of Nazara, India's first publicly listed gaming company. Continue reading.

Forsage Founders Indicted for Alleged $340 Million Ponzi Scheme in DeFi Crypto Investment Platform

Four founders of Forsage, a decentralized finance crypto investment platform, have been indicted for their alleged involvement in a $340 million “global Ponzi and pyramid scheme.”

> The indictment was returned by a federal grand jury and charged the Russian nationals, Vladimir Okhotnikov, Olena Oblamska, Mikhail Sergeev, and Sergey Maslakov, with conspiracy to commit wire fraud. If convicted, all four could face up to 20 years in jail.

> The Justice Department noted that the defendants used social media to aggressively promote Forsage as a legitimate investment opportunity while operating it as a fraudulent scheme that collected millions of dollars from unsuspecting victims globally. Full report here.

Crypto Exchange CoinEx Faces Suit from New York Attorney General for Unregistered Securities Broker Activity

The New York State Attorney General's office has filed a lawsuit against CoinEx, alleging that it violated state laws by operating as an unregistered securities broker and commodity broker-dealer.

> The complaint stated that CoinEx did not register with the SEC or the Commodity Futures Trading Commission before offering services in the state.

> The company claimed to be an exchange and offered services similar to national securities exchanges, despite not having the necessary registration.

> The petition also noted that the tokens and services listed by CoinEx qualify as securities and/or commodities under state law.

> The filing cited New York's Martin Act and General Business Law, claiming that the tokens sold by CoinEx fall under the definition of commodities and securities. Details here.

Crypto Market Contracts After US Federal Reserve Meeting Minutes Release

As the US Federal Reserve's January meeting minutes were released on Wednesday, the cryptocurrency market remained.

> Bitcoin was down by 1% and continued to struggle to maintain levels above $24,000.

Ether also fell by 1%, with Binance's BNB, Cardano's ADA, and Solana's SOL also experiencing drops.

The same trend can be seen for memecoins such as Dogecoin and Shiba Inu, which fell by 3.2% and 4.3%, respectively.

Coinbase, Silvergate, and MicroStrategy all saw a decline in their stock prices, with the exception of Jack Dorsey's Block, which experienced a 1.3% increase.

Coinbase's fourth-quarter earnings were released last night and they were able to beat revenue estimates due to interest income from USDC.

However, there was some bad news for Silvergate, as Moody's downgraded the bank on Tuesday following increased regulatory scrutiny in the United States after the collapse of FTX.