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Civic launches free tool to combat NFT-hungry bots on Solana

Civic’s Ignite Pass aims to combat bots targeting NFT drops on the Solana network by verifying video-based selfies using artificial intelligence.

Identity verification tech firm Civic Technologies has launched a free tool to combat botting activity in Solana (SOL)-based NFT drops.

According to a Nov. 8 announcement, Civic’s new tool “Ignite Pass” will filter out bots by requiring buyers to complete a liveness verification before being approved to make NFT purchases.

Civic’s website notes that users will be required to take a video selfie in order to verify, with an Ignite Pass then being issued to their wallet address upon completion. The pass also remains active for 24 hours to “limit the options of malicious botters verifying multiple wallets. ”

The website also outlined that “Civic does not store this video selfie,” but does not clarify if the data is deleted or stored elsewhere.

The Ignite Pass is a free version of the firm’s suite of know-your-customer (KYC) and anti-money laundering (AML) compliance tools, Civic Pass. The tools are designed for decentralized finance (DeFi) platforms, NFT marketplaces and public blockchains.

Civic Technologies CEO Chris Hart emphasized the revolutionary capabilities that nonfungible tokens have recently unlocked for artists, lamenting the negative impact that bots are having on creators:

“Bots are more than a nuisance — they’re destroying the trust that communities have built as well as the future prospects of its creators.”

Bots gone wild

In February earlier this year, Dapper Lab’s NBA Top Shot was forced to delay the launch of a new series of Premium Packs due to high levels of botting activity on the platform.

The following month, many users of the MoonCats NFTs were complaining that the project had become overrun by bots programmed to accumulate new cats the moment they dropped online.

In response to the botting, MoonCat developers Ponderware held a vote on whether to destroy a private key holding a collection of rare unreleased MoonCat NFTs or not, with 72% of the community voting “yes” during the 48-hour poll.

September saw TIME Magazine sell out of 4,676 NFTs in less than one minute, with Paradigm researcher Anish Agnihotri attributing the rapid sales to botting activity:

“Many folks knew the mainnet deploy in advance and were able to plan ahead to bot their transactions.”

Related: FarmVille NFTs on the horizon? Zynga hires new VP for blockchain gaming

A surge in activity from bots targeting Grape Protocol’s Initial DEX Offering (IDO) also caused the Solana network to go offline for roughly 17 hours in September.

The Solana Foundation characterized the incident as a “denial of service attack,” estimating the bots had spammed the network with a transaction load of roughly 400,000 every second.

SEC Slaps Digital Currency Group With $38,000,000 Fine, Claims Crypto Venture Firm Misled Investors

Five proposed crypto class actions over unregistered securities dismissed in NY

Quantstamp, Status Research, Civic Technologies, HDR Global Trading and Kaydex are off the hook, after five securities related lawsuits were dismissed in New York Courts earlier this week.

Five proposed class-action lawsuits against crypto firms have been voluntarily dismissed without prejudice in New York federal courts — without costs or attorney fees to any party.

Quantstamp, Status Research, Civic Technologies, HDR Global Trading, and Kaydex are off the hook, however related cases are ongoing.

The five class-action lawsuits dismissed on April 27 are part of a batch of 11 filed by Law firms Selendy & Gay PLLCRoche Freedman a year earlier. The lawsuits accused several crypto firms of causing investor harm by selling digital assets that were allegedly unlicensed securities without brokerage licensing, misleading investors, and engaging in market manipulation.

However the plaintiffs were unable to provide strong evidence of damages caused to investors from the alleged sale of unlicensed securities, and two prior court rulings in favor of BProtocol and Bibox reportedly paved the way for the dismissals. Within days of the Bibox ruling, all five legal teams had flagged the decision to the judges overseeing their cases.

Cases against Binance, Kucoin, Tron and HDR Global’s Bitmex remain in play according to court filings.

In a blog post yesterday, Director of Marketing Nancy Li for decentralized identity firm Civic Technologies welcomed the end of proceedings:

“The dismissal of this case signals the end of a lengthy and hard-fought process for Civic. During the past year plus the company remained confident that we would prevail, not just on behalf of Civic, but in support of the crypto ecosystem overall.”

Li added, “Nonetheless, sometimes being on the right side of an argument is not enough (and we were right), so it is with a certain sense of vindication that we tick this one in the win column for Civic and for crypto."

The ongoing case against China-based blockchain software developer Tron Foundation may end with similar results with claims the lawsuit was filed outside the statute of limitations deadline.

Tron filed a motion to dismiss the “fatally flawed” lawsuit on Dec. 15, arguing that plaintiffs failed to allege harm, and that they continued to buy TRX after the SEC released the April 2019 framework on securities.

"Had plaintiffs read the white paper, they would have seen that Tron warned that although TRX was not intended to be a security, future government oversight or regulatory actions could affect Tron and the TRX token, including the 'price and stability' of the token and its use on the blockchain," the motion said.

Paving the way for this week's dismissals was a securities fraud lawsuit against Israel-based Bancor over its BProtocol Foundation which was dismissed in February due to the plaintiff's failure to show damages caused, with the court also citing a lack of personal jurisdiction.

Earlier this month the class action aimed at Bibox was thrown out, after the complaint was filed outside of the statute of limitations deadline, with the judge also noting the plaintiff lacked standing on claims against five tokens they didn’t purchase, and failed to show injury caused on other class members who did purchase the tokens.

SEC Slaps Digital Currency Group With $38,000,000 Fine, Claims Crypto Venture Firm Misled Investors