Welcome to another edition of Crypto NFT Today! The past two weeks have been full of must-know events that will be defining points for the future of blockchain, cryptocurrency, and NFTs.
With Mila Kunis caught in an NFT scam investigation, surging oil costs impacting cryptocurrency markets, Holesky test network launching for a second time, and more, this week has been packed with essential news you should know. So, let’s dive in and see what’s happening!
Mila Kunis Caught in NFT Scam Investigation
Mila Kunis is under investigation for an NFT scam surrounding her new series, Stoner Cats. About an elderly woman and her cat, the new production included talents such as Ashton Kutcher, Chris Rock, Gary Vee, and even Vitalik Buterin, the founder of Ethereum.
Kunis, Hollywood producers, and crypto experts marketed the new animated series as an NFT project that could get funding through investments. After promoting the series on a TBS talk show and stating that it would only be available to NFT holders, more than 10,000 NFTs sold in 35 minutes.
Soon after, Kunis and Stoner Cats were reportedly put under investigation by the Securities and Exchange Commission for offering unregistered securities and misleading investors.
Surging Oil Costs Are Impacting Cryptocurrency Market
The past 18 months have seen a notable decrease in investor interest in high-risk assets, such as cryptocurrencies. The lack of interest is because of the central bank’s aggressive efforts to raise borrowing costs and control inflation. Now, there are concerns that the recent surge in oil prices could worsen the situation, as suggested by cryptocurrency experts.
The price per barrel of West Texas Intermediate (WTI) has experienced a 30% increase in the current quarter. It has crossed the $93 per barrel threshold for the first time in 2023.
Noelle Acheson, the author of the widely-read Crypto Is Macro Now newsletter, expressed her views on this oil price rally with CoinDesk: “This surge in oil prices is likely to contribute to core inflation and negatively impact consumer spending. Consequently, it is expected to maintain high expectations for interest rates and adversely affect stock valuations, leading to a more risk-averse market sentiment.”
Holesky Test Network Launches for a Second Time
On Sept. 28, the Ethereum developers succeeded in their second attempt at launching the Holesky test network. After a launch failure earlier this month, this second attempt went smoothly during the live stream. This new network is exciting for many developers since it’ll help them test for the main Ethereum blockchain with ambitious scaling plans.
European Commission Investigates the Environmental Impacts of Crypto
In 2021, there were previous concerns regarding the environmental consequences of data centers engaged in cryptocurrency mining in the European Union’s Blueprint for Funding the Shift to an Eco-Friendly Economy. There are still concerns about the environmental impacts and the increased energy demands with data centers and distributed ledger technologies, especially those related to cryptocurrencies.
On Sept. 26, the European Commission invested $843,000 into a study that will unveil the environmental impacts of cryptocurrencies. In a tender document, the European Commission stated, “There is evidence that crypto-assets can cause significant harm on the climate and environment and generate negative economic and social externalities, depending on the consensus mechanism used to validate transactions.”
Reports Show a Steady Drop In NFT Value
A study conducted by dappGambl analyzed data sourced from NFT Scan and CoinMarketCap and discovered a steady drop in NFT value. The researchers stated that a staggering 69,795 out of 73,257 NFT collections currently possess a market capitalization of zero Ether. In other words, approximately 95% of individuals (23 million) who own NFT collections find themselves holding NFTs that have no monetary value, making their investments worthless.
The researchers followed this data release with a statement: “This daunting reality should serve as a sobering check on the euphoria that has often surrounded the NFT space. Amid stories of digital art pieces selling for millions and overnight success stories, it is easy to overlook the fact that the market is fraught with pitfalls and potential losses.”