As the artist and humanitarian, Jay-Z, once profoundly stated, he has, “99 problems.”

But, whether it be your romantic situation, your credit score, or that pebble in your shoe, it’s clear: not all problems are created equally.

So, dear reader, we thought we’d take some time in this newsletter to dig a little deeper into one of crypto’s biggest problems. More on that later.

Espresso Shots

☕️ Venezuela’s Crypto Mining Shut Down 🇻🇪 ⛏️

Venezuela, one of the largest early adopters of Bitcoin, has entirely shut down its crypto mining operations pending an internal investigation.

The investigation is looking to uncover corruption between Venezuela’s crypto department and PDVSA, Venezuela’s oil company.

Apparently, the two departments were working parallel and engaging in joint, illegal activities. So far, ten individuals have been arrested including Joselit Ramirez Camacho, who had ties to several South American narcotics kingpins.

Speaking of narcotics, yacht-owners and advertising execs can breathe a sigh of relief as the government shutdown had no effect on Venezuela’s cocaine processing operations.

☕️ Do-Kwon’s Extended Detention 🚨 🗓️

Do-Kwon, the infamous former crypto exec captured last week, has appealed against an extended, thirty-day detention set by Montenegrin authorities.

The traditional detention period for imprisonment in Montenegro is just 72 hours, but the courts decided to extend that for thirty days after declaring Do-Kwon a flight risk with a high chance of escape.

Do-Kwon and his defense team are insisting that this adjustment is ridiculous, just because Do-Kwon was able to elude international authorities for months doesn’t mean he won’t cooperate with his Montenegrin captors.

After Do-Kwon was arrested, he was immediately charged with fraud by New York prosecutors. That charge, coupled with several from other American sources as well as South Korean law enforcement, bring the total charges levied against Do-Kwon to eight.

Those charges include commodities fraud, securities fraud, as well as conspiracy to defraud and engage in market manipulation.

Do-Kwon’s defense have protested that it is unfair for the court to consider their client’s abilities to melt between bars or turn into mist when deciding sentencing.

☕️ Sony Moving Toward Playstation NFTs 🎮 🕹️

Sony has been amassing Web3 and NFT-related patents which seem pretty clearly intended for use in Sony’s Playstation network.

In regards to NFT implementation, “the standardized format may be readable to insert the digital asset in different computer simulations that may include different video games of different titles,” reads the patent application.

It would seem that when it comes to NFTs, Sony seems pretty intent on crossplay across all platforms.

Which is interesting, because Sony was the most reluctant among the big game developers to allow crossplay, but their competitors’ willingness coupled with the popularity of Fortnite, made the question of crossplay not an “if,” but a “when.”

Despite the Playstation Network’s potential for NFT trading and Web3-style play-to-earn tokens, detractors are quick to point out that it’ll never have Halo.

Spilling the Beans

Crypto's Pesky Problem 🚔

Crypto has one problem that won’t seem to go away.

And no, it’s not volatility or credibility or utility or any of the other “ity’s.”

It’s the same reason that tourists wear fanny packs in open-air bazaars and your mom wrote your name on the inside of all of your underwear before you went to camp.

The problem is theft.

Last week, cybersecurity firm Kaspersky published a report detailing what they believe are the biggest threats to crypto.

The Kaspersky report surveyed 2,000 average Americans and found that 24% owned crypto.

And of that subgroup, one-third of them had experienced some sort of crypto-related theft.

Of the 2,000 Americans that were interviewed, 24% of them owned crypto and 33% of that group had had some of it stolen.

What’s worse, 19% of those Americans that had their crypto stolen were also victims of identity theft.

And these weren’t some paltry sums being lifted. The average USD amount of crypto assets stolen was $97,583.

The report closed with a statement from Marc Riviero, Kaspersky’s Senior Security Researcher:

“This survey data shows a lot of people are falling victim, getting their crypto stolen in many cases, and in many others, losing real money and experiencing identity theft.”

And how do you avoid it? Well, Riviero goes on to offer some beginner solutions to not having thousands of dollars drained out of your accounts.

“Users should be very careful where they invest their money, keeping a close eye out for phishing scams and fake websites. They should employ extra security measures that are available to them, such multi-factor authentication, and should use strong, unique passwords across all accounts.”

Riviero also goes on to encourage you to use his security firm, but we took the liberty of cutting that plug out.

Despite Riviero’s self-promo, he hit on some important points, and we’re gonna double down here and cover some essential crypto security tips.

Here are the six essential security tips to keep yourself safe in crypto:

• Use a Password Manager

  • Something like 1Password can help you use a completely different, complicated password for every site you interact with.

• Always verify the web address

  • Using Colnbase instead of Coinbase could cost you a lot of money. Type in domains and be wary of clicking links from sources you don't trust!

  • (You can click ours - we're cool.)

• Use Two Factor Authentication

  • And don’t rely on SMS verification - SIM cards can be stolen. Use an app like Authy or 1Password for verification.

• Use a VPN

  • Using a public internet connection leaves you vulnerable to other devices viewing your data, a VPN keeps you and your data safe online.

• Use a Cold Wallet (or Hardware Wallet)

  • The best way to keep your crypto safe is to keep it in a self custody wallet that never touches the internet - like a ledger wallet!

• Never Share Your Secret Recovery Phrase

  • Every crypto wallet has a 12-24 word phrase that controls the wallet - never store it online or share it with others. Write in on a piece of paper and keep it safe.

Navigating the choppy waters of cryptocurrency is a lot like driving.

We can tell you to be safe a thousand times, but they’re called accidents because things don’t always go according to plan.

But the best thing you can do is take all of these steps to have a safer experience. You can practice defensive driving - or defensive investing in this case.

Crypto doesn’t need to be a dangerous place - but like all things in life, taking the proper precautions truly makes all the difference.

Do it safely and you’ll get to where you need to go.

Play it recklessly and you’ll be covered in shattered glass with that Allstate mayhem guy standing over you.

Meme of the Day

Does anyone else hear the hunger games whistle when they see this meme?

Crypto 101

Web2: We talk a lot about Web3, but not so much about Web2. And that’s because Web2 is the current state of the internet. Web3 is the future. So what traits define Web2?

The current state of the internet is best defined by its focus on user-generated content. Whereas internet media was created via a single publisher, web2 has brought to light the concept that every individual is their own publisher.

The Last Sip

Here are three more good reasons that Do-Kwon’s detention should be extended to thirty days:

• Do-Kwon pulled a girl’s hair at recess.

• Do-Kwon’s pinky fingers have been carved into lockpicks.

• Do-Kwon can talk to animals and convince them to do his bidding.

Stay Caffeinated,

Coffee & Crypto Team

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.