Hi, all. Today we look at the global perspective: Latin Americaâs booming crypto sector, Israeliâs DeFi scene and how whales from around the world drive market changes.Â
Capear el temporal
Argentinian crypto exchange operations are booming in a year of economic and political uncertainty, CoinDeskâs Sandali Handagama reports. (Lea el artÃculo en español. Es el primer trabajo de CoinDesk traducido a la segunda lengua más hablada del mundo.) Itâs part of a general trend across the South American region, driven by bitcoinâs bull market, national inflation and the increasing need for digital remittances during a pandemic year. Last week, Mexico City-based Bitso raised $62 million to fund its expansion to Brazil, it certainly wonât be the last.
DeFi darlings
Israelâs crypto scene has pivoted to decentralized finance, the intrepid CoinDesk contributor Leigh Cuen concisely and conveniently considers. At an epicenter of 2017âs Ethereum-based ICO bubble, Israeli startups, and attendant venture capitalists, are now engineering ways to bring bitcoin into the emerging DeFi economy, also primarily based on Ethereum.
Carbon future
The World Economic Forum and seven major mining companies are trialing blockchain to track CO2 emissions from mine to the end of the supply chain. Maybe itâll finally answer the question: How did oil get into everything?
Sell pressure
Bitcoinâs rally above $19,500 was clipped early on Tuesday, with significant sell pressure at $20,000 ahead, according to CoinDesk markets reporter Omkar Godbole. These sell walls are no joke. In fact, one analyst told Godbole this morningâs market dip could likely be attributed to profit taking by large Asia-based investors. CryptoQuant data shows whales taking a dip around $19,500, bringing the market with them. Big picture: Pondering Durian provides four reasons a modest bitcoin allocation might make sense.
There has been a lot of hyperventilating in the press and on Twitter this week over the fact that cryptocurrency is now, by default, the only form of payment Pornhub accepts.Â
Far less attention has been paid to the related news that the adult entertainment site is about to adopt its own version of know-your-customer rules, or KYC. Call it âKnow Your Coomerâ after the internet meme of a disheveled porn addict with poor impulse control and a hypertrophied right arm. (For those unfamiliar with online argot, itâs one of many derivatives of the epithet âboomer,â like âconsoomerâ for spendthrifts, âfloomerâ for those who insist COVID-19 is just the flu, or âcooferâ for people exhibiting symptoms of the virus.)
And, much like the know-your-customer policies of financial institutions including regulated crypto exchanges, Know Your Coomer raises difficult questions about privacy and data protection.
Rewinding the tape: In response to a harrowing New York Times article about the posting of child exploitation imagery on Pornhub, Visa and Mastercard booted the site from their card networks. This left crypto, which Pornhub has accepted for several years, as the sole remaining payment option for the siteâs premium users.
Yes, I checked.Â
No, I did not investigate further through this channel.
From the perspective of highlighting cryptoâs value as a censorship-resistant form of money, this is all well and good. As disturbing as the revelations in the Times piece were, the use of financial infrastructure as an extrajudicial enforcement mechanism is creepy in its own way, just as it was in the Wikileaks banking blockade and Operation Choke Point. Â
The Open Source Defense newsletter said it well:
âThe second-order danger ⦠is that youâre nearly certain to be able to find illegal content on any large platform for user-generated content. And no company at any level of technical expertise, from Google and Facebook on down, can fully prevent that. So when everybodyâs guilty, getting shut down is only a matter of whether someone decides that itâs time to take a look at you. Thatâs not a world thatâll make anybody happy in the long run.â
An under-reported aspect of the story is the steps Pornhub is taking to prevent illegal content from being posted on this site.Â
Last week, the site, owned by Canada-based MindGeek, disabled uploads by any users who were not verified through its revenue-generating programs. âIn the new year, we will implement a verification process so that any user can upload content upon successful completion of identification protocol,â Pornhub said. (Content previously uploaded by unverified users was subsequently nuked.)
If this prevents monsters from using the site in abusive ways, all the better. But it will create risks for those who only post lawful content. The following remains to be seen:
I emailed these questions to MindGeek and its law firm last week but have not heard back (not surprising, given the company is managing a crisis situation).Â
Five years ago, the Ashley Madison breach showed how a poorly guarded trove of data on people who do legal but embarrassing things online can easily become a blackmailerâs goldmine. Pornhub would do well to heed this lesson. Even coomers deserve privacy.
â Marc Hochstein