🙄 Crypto.com accidentally sends $400m to a rival exchange

🙄 Crypto.com accidentally sends $400m to a rival exchange ✋ CZ warns against investing in crypto projects with red flags 🗿 GameFI project Calvaria raises $1.6m in presale

Good morning, frens.

If you're one of the many people staking their tokens on our platform, this post is for you. We're going to give you all the information you need to know about how we pay out APR, how we determine our APR value, and how you can maximize your APRs - i.e everything you need to know to make the most out of your staking experience on our platform: go.v-empire.io/3UCrlIu

Here's a recap of what's been happening in the space lately:

🙄 Crypto.com accidentally sends $400m to a rival exchange

✋ CZ warns against investing in crypto projects with red flags

🗿 GameFI project Calvaria raises $1.6m in presale

Crypto.com accidentally sends $400m to a rival exchange

In a stunning and frankly unbelievable turn of events, Crypto.com - one of the world's leading cryptocurrency exchanges - has accidentally sent 320,000 ether (worth approximately $400 million) to a rival exchange called Gate. This news comes to us courtesy of a Twitter user who posted a screenshot inquiring why such a large amount of ether had suddenly moved out of Crypto.com's wallets a few weeks ago.

Crypto.com's CEO Kris Marszalek replied to the tweet, saying that the transfer was a result of human error. According to Marszalek, someone on his team had erroneously sent approximately 80% of the ether in their reserves to a "whitelisted exchange" instead of the new cold storage wallet it was supposed to go into. He also said that the mistake was rectified and that new processes have been put in place to prevent it from happening again.

Needless to say, this is a massive blunder with potential consequences to Crypto.com, and maybe even the larger cryptocurrency community. After all, you have to be pretty good at your job to accidentally send $400 million worth of digital currency to a competitor. Surely, that kind of transfers are not verified in any way or by any team member before they are executed? Right.

"If an exchange has to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems," CZ posted to Twitter in the aftermath of Crypto.com's mistake. "Stay away." We could not have said it better ourselves.

CZ warns against investing in crypto projects with red flags

Binance CEO Changpeng Zhao, also known as CZ, is warning people to avoid crypto projects that are displaying five key red flags, after the recent collapse of FTX.

In a tweet to his 7.5 million Twitter followers, CZ tells what warning signs to look out for when getting involved with enterprises related to cryptocurrencies. “FTX aside, avoid businesses/exchanges/projects that:

– are not profitable (musical chairs)

– survive by selling their own tokens

– give high incentives for locking your tokens

– have a large total supply, but only a small circulation supply

– involves loans.”

In other words, CZ is saying that people should be wary of crypto projects that don’t have a clear business model, that are propped up by selling their own tokens, that incentivize people to lock up their tokens, that have a large supply but only a small portion in circulation, or that rely on loans.

A clear business model in this case would mean that the business is generating revenue through means other than selling tokens. For example, a business could be generating revenue through transaction fees, advertising, or other services. "How does this project make money" is a good question to ask when considering investing in any crypto project.

As for selling their own tokens, many ICOs (initial coin offerings) and IEOs (initial exchange offerings) have sold tokens to raise money for their projects in the past. However, this is not a sustainable business model in the long run. Once the token sales are over, the project will need to find another way to generate revenue and if it fails to do so, the project will eventually collapse.

Incentivizing people to lock up their tokens is another red flag that CZ is warning about. Many projects have implemented staking or locking mechanisms in order to discourage people from selling their tokens. However, this can often be a way for projects to artificially inflate the price of their tokens. If the price of the token does not increase, then people will be stuck with tokens that they cannot sell.

So, in short, CZ is right when he says you should be wary, especially in this market.

GameFI project Calvaria raises $1.6m in presale

It's not doom and gloom in the space, however, as there are still a few projects managing to bring in the bucks. Gaming crypto project Calvaria has raised $1.6 million in presale, despite only launching a month ago.

With 30% of all tokens sold already, it's clear that there is investor interest in the project. And with the current stage of the presale set to end by the end of the year, all tokens will likely be sold.

So what's the big deal with Calvaria? Calvaria: Duels of Eternity is a free-to-play mobile game that uses non-fungible tokens (NFTs) to represent different characters. The objective is to use these trading cards to build the right deck and use a superior strategy to beat other players in battle.

The game is available on Android and iOS, and doesn't require any technical knowledge or financial resources to play. This makes it accessible to a wider audience, which is one of the main selling points for the project.

Players can use the in-game currency, RIA, to purchase NFTs. These can be staked to provide additional earnings, and holders can also vote on proposals via the Calvaria DAO, so in the end, this is your typical GameFI project, but what's important here is that it's still succeeding. Current market conditions might be tough, but projects with a solid concept and execution can still find success. So don't give up hope just yet! There's still money to be made.