Q9 Markets | Summer Quiz

26 August 2022

Q9 Capital: www.q9capital.com

Q9’s summer quiz offers an eclectic test of knowledge about crypto markets, industry trends, digital asset technology and global economics. Take the test and share it with your friends to see how their crypto comprehension stacks up against your own.

1. The war in Ukraine has raised concerns about Russia’s use of crypto to avoid international sanctions, but has simultaneously enabled Ukraine to raise vital funds for military equipment, armor, clothes, medicines and even vehicles. According to Deputy Ukrainian Prime Minister, Mykhailo Fedorov, how much has been spent for the war effort using proceeds raised in crypto?

1. $6 million
2. $28 million
3. $54 million
4. $121 million

2. The Ethereum Merge is the largest and most significant upgrade to a decentralized system to date. It represents the joining of the existing execution layer (the Mainnet we use today) with its new proof-of-stake consensus layer. What is it called?

1. The Beacon Chain
2. The Goeril Testnet
3. The Bellatrix Platform
4. The Buterin System

3. The Merge also signals the start of an era of a more sustainable, eco-friendly Ethereum. The move to kick miners off the network in favor of Proof of Stake validation reduces the network’s electricity consumption by roughly:

1. 25%
2. 50%
3. 75%
4. 99%

4. The Office of Foreign Asset Control (OFAC) — a watchdog agency of the US government — recently sanctioned a cryptocurrency mixer claiming it had been used to launder more than $7bn and is used by North Korean hackers to layer stolen funds. However, critics view this as unconstitutional, a criminalisation of privacy, and equivalent to banning cash. What is the name of the mixer?

1. Hurricane Coin
2. Tornado Cash
3. Typhoon Tender
4. Zephyr Loot

5. Coinbase is a major proxy for the state of the wider crypto market. The firm recently released its second quarter earnings after a period of falling crypto prices and reduced trading volumes. Revenues for the firm fell by how much in Q2?

1. 34%
2. 52%
3. 61%
4. 87%

6. Despite the recent bear market, there was more venture capital invested in the first half of 2022 than all of 2021. How much was invested into crypto projects in H1?

1. $300 million
2. $3 billion
3. $30 billion
4. $300 billion

7. Chinese miners previously accounted for 75% of the world’s Bitcoin hash rate — the total computational power used to mine and process crypto transactions. Since China banned crypto mining, which country has taken the number one global mining position?

1. USA
2. Kazakhstan
3. Russia
4. Argentina

8. For certain companies, especially those in the luxury and clothing sectors, NFTs could become a significant source of revenue in the future as the metaverse takes off. Which global brand has made the most revenue so far from NFTs?

1. Dolce & Gabbana
2. Nike
3. Tiffany & Co
4. McDonalds

9. Ilya “Dutch” Lichtenstein and Heather Morgan were arrested in February as part of the DOJ’s largest-ever crypto recovery and charged with laundering proceeds from an exchange hack in 2016. The Bitcoin stolen was worth $4.5 billion at the time of their arrest ($71 million when it was stolen). Which exchange was the crypto hacked from?

1. Bitfinex
2. Mt. Gox
3. Kraken
4. Huobi

10. This year’s Super Bowl — now dubbed the “Crypto Bowl” — was taken over by crypto firms showcasing their offerings in a star-studded marketing push. Which famous comedian starred in the FTX commercial called “Don’t Miss Out on Crypto”?

1. Jim Carrey
2. Dave Chappelle
3. Ben Stiller
4. Larry David

https://www.q9capital.com/en/refer-a-friend

Answers:

1. Answer: C

According to the MDT, the majority of Aid For Ukraine’s $54 million has been contributed in the form of 10,190 Ether (ETH) valued at $18.7 million, 595 Bitcoin (BTC) worth around $13.9 million, Tether (USDT) at $10.4 million, and USD Coin (USDC) at $2.2 million.

2. Answer: A

The Beacon Chain is the new consensus engine (or “consensus layer”) that will soon take the place of proof-of-work mining, bringing many significant improvements with it. Read more about it here.

3. Answer: D

Ethereum’s energy consumption will be reduced by ~99.95% following The Merge from proof-of-work (PoW) to proof-of-stake (PoS). After The Merge, Ethereum will use dramatically less carbon to be more secure.

4. Answer: B

The action against Tornado Cash is the Treasury’s most significant action in the crypto space to date and effectively barrs all US persons from using it as a matter of national security. However, the ruling raises many questions. Is writing open source code illegal now? Is code speech? Is this a violation of the first amendment? Is this a sign of more things to come? Read our analysis on the issue here.

5. Answer: C

Revenues for Coinbase fell 61% in Q2 as crypto prices fell and trading volumes slumped. The exchange reported an after-tax loss of $1.1bn, compared with the $1.6bn net profit it registered in the middle of the crypto boom a year ago — but analysts believe the company’s balance sheet leaves it well positioned to survive a prolonged crypto winter.

6. Answer: C

Over $30bn of investment were made into crypto projects over the first half of the year, a sign that institutions are in for the long haul. Check out Messari’s H1 2022 Crypto Fundraising Report.

7. Answer: A

The USA is now the top destination for Bitcoin miners. The country ticks a lot of boxes for migrant miners: low energy costs, renewable power sources, crypto-friendly policymakers and an adequate supply of hosting infrastructure.

8. Answer: B

Iconic sports company Nike has achieved over $185 million in revenue from the sale of NFTs — more than any other brand. The top of the list was also dominated by other athletics and fashion brands, including Dolce & Gabbana, Tiffany, Gucci, and Adidas.

9. Answer: A

The wacky crypto couple were charged with attempting to launder billions of dollars in hacked Bitcoin from the Bitfinex crypto exchange. The pair had laundered 119,754 Bitcoins, and made over 2,000 illegal transactions. Heather Morgan led many lives including one as a rapper called Razzlekhan.

10. Answer: D

Yep, that’s right — Larry David, America’s grumpiest comedian, starred in FTX’s crypto ad in which he turned down some of history’s best ideas, era by era. Check out the video here.

In the News…

• Tether won’t freeze Tornado Cash wallets unless directly ordered
• Podcast: How stablecoins became a powerful force in crypto (Bloomberg Odd Lots)
• China begins next phase of CBDC testing with e-CNY payment for public transport
• Asset managers have a self-interest in crypto’s future
• Will Ethereum be vulnerable to censorship after the Merge?
• Ready Player Me, metaverse avatar platform, raises $56mn from a16z and others
• Australia unveils plans for crypto regulations unlike ‘anywhere else in the world’
• CryptoPunks flip Bored Apes for first time in 5 months
• Hodlnaut reports $193mn shortfall as it seeks court protection
• Facebook and Twitter will soon be obsolete thanks to blockchain technology
• Argentine Presidential candidate sued over alleged crypto ponzi scheme

Q9 Capital: www.q9capital.com