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The Sandbox CEO’s Twitter was hacked, used to promote alleged ‘airdrop’ scam

The executive appears to have now recovered his account.

Arthur Madrid, co-founder and CEO of metaverse project The Sandbox, was the victim of a Twitter account hack on May 26, according to a post from Madrid that was apparently made after he recovered the account. The attacker allegedly used Madrid’s account to promote a fake “airdrop” phishing scam.

In Madrid’s post, he warned Sandbox users that they should “never click on any link that promote Airdrop or URL and look SCAMMY - and not 100% using our proper and unique URL/domain name : http://sandbox.game.”

Four hours before Madrid’s post, The Sandbox’s official Twitter account also warned that a scammer had taken control of the account and was promoting “a scam / phishing link for a fake airdrop of SAND tokens.”

The post included a screenshot of the alleged scam post, which advertised a SAND token airdrop and encouraged users to “check eligibility and claim on the site,” referring users to a website with a different URL than the official one.

The Sandbox team stated that they were “working on getting the site down and fix it ASAP.”

As of 8:26 pm UTC, the alleged scam site appears to have been taken down, as it now produces a 404 error.

Related: Six Tools Used by Hackers to Steal Cryptocurrency: How to Protect Wallets

Phishing attacks have become a frequent problem in the crypto community. On May 19, a scam-as-a-service called “Inferno Drainer” was reportedly discovered to be operating on Telegram, recruiting website builders to create hundreds of these phishing scam sites. By the time it was discovered, it had reportedly stolen nearly $6 million from users.

On April 15, cybersecurity firm Kaspersky reported that these types of attacks increased by 40% in 2022 compared to the previous year.

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Chinese city releases policy draft for metaverse industry development

The policies include a series of cash benefits to attract metaverse-related companies to set up shop in the city.

On May 24, the Chinese city of Zhengzhou announced a series of policy proposals to support metaverse companies operating in the region. As part of the initiatives, the municipal government will establish a dedicated fund worth 10 billion yuan ($1.42 billion) to foster growth and development in the industry.

Per the government draft, metaverse companies that choose to relocate their headquarters to Zhengzhou will have the opportunity to receive a startup capital investment of up to 200 million yuan ($28.34 million). The companies will also qualify for other benefits, including rent subsidies.

Any company engaged in the development of metaverse use cases in the city — regardless of its headquarters location — will have the opportunity to receive up to 5 million yuan ($710,000) for each project certified as viable by the municipal government.

The specific date of the fund allocation has not been disclosed as of now. In addition to unveiling the funding policies, the municipal government of Zhengzhou has also outlined its long-term vision for the metaverse development in the city. It foresees that metaverse-related industries in Zhengzhou will achieve an annual revenue surpassing 200 billion yuan ($28.34 billion) by the end of 2025.

These policies apply to local enterprises operating in two distinct areas: 1) research endeavors focused on metaverse-related technologies, such as virtual reality, augmented reality and brain-computer interfaces; and 2) the utilization of metaverse technologies in real-world industries, such as education, entertainment and commerce.

Additionally, the government will collaborate with other governmental agencies and investment firms to secure an additional 50 billion yuan ($7.08 billion) in funding to support various metaverse-related development projects. Moreover, the city intends to offer cash rewards to metaverse companies upon their listing on China’s primary stock exchanges.

Related: Chinese state media removes video on crypto after Binance CEO calls it ‘big deal’

The plan includes blockchain — a crucial technology in the metaverse industry — alongside next-gen computer rendering, human-computer interfaces and artificial intelligence. Additionally, it aims to create a digital asset market using nonfungible token technology.

Zhengzhou has joined a plethora of Chinese cities and provinces vowing to become leaders in the country’s metaverse development. The south-eastern metropolis of Shanghai is actively pursuing its metaverse aspirations, predicting its metaverse industry will reach annual revenue of 350 billion yuan ($49.6 billion) by 2025.

Magazine: China’s wave of ChatGPT rivals, Alibaba goes multichain: Asia Express

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Chinese city launches govt-backed metaverse platform

The platform aims to consolidate the resources of academic institutions and enterprises in China and bolster research efforts in areas related to the metaverse.

Nanjing City, the capital of Jiangsu Province in China, on May 22, inaugurated the China Blockchain Technology and Application Innovation Platform. This government-supported platform aims to foster and advance metaverse research and development across the country.

The newly established state-backed entity is led by the Nanjing University of Information Science & Technology (NUIST). As per an announcement on NUIST's official social media account, the platform consists of founding members representing diverse academic institutions and blockchain-related companies throughout mainland China.

The objective of this platform is to bring together the resources of academic institutions and enterprises in China, strengthening research endeavors in metaverse-related fields. The metaverse refers to a virtual universe or collective virtual space that encompasses all virtual worlds, augmented reality, and virtual reality experiences. It is an interconnected digital realm where users can interact with each other and with computer-generated environments in real-time.

Nanjing, along with other Chinese cities, is competing to take a prominent position in the country's metaverse development. In February 2023, the city revealed its metaverse strategy, aiming to create a thriving industry with annual revenues surpassing $19.13 billion (135 billion yuan) by the close of 2025.

In the southern region of Nanjing, the city of Shanghai is actively pursuing its metaverse aspirations. The metropolis envisions its metaverse industry reaching an annual revenue of $49.6 billion (350 billion yuan) by 2025. Shanghai recently presented its initial collection of 20 metaverse use cases, covering diverse areas such as virtual healthcare diagnoses and digital recreations of the city's historic architectural landmarks.

Related:China state-owned Greenland to apply for Hong Kong virtual asset trading license

Although China maintains strict regulations on cryptocurrencies and NFTs, the country acknowledges the transformative power of Web3 technologies, including the metaverse, in driving its digital economy.

In a recent report from local media, Wu Zhong-ze, the former deputy minister of the Ministry of Science and Technology, highlighted the importance of expanding the use of the metaverse in various sectors, including education, commerce, healthcare and entertainment. He also emphasized the necessity of establishing industry standards for the metaverse.

Magazine: Is the Metaverse really turning out like ‘Snow Crash’?

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AI in the metaverse: How proof-of-identity provides human experiences

As AI develops apace, concern about proof-of-humanity is growing.

Technological developments have long been at the heart of many societal fears. Breakthroughs like nuclear energy and even WiFi ignited many people’s imaginations, leading them to believe that these things meant to make life easier would instead end the world as they knew it.

An entire genre of fiction and film exploring dystopian societies or alternate universes has added fuel to the fire encompassing technological fears, especially those surrounding the once-futuristic artificial intelligence (AI) technology. Technology very well may have ended life as it was once known, but any net-positive societal advancement, such as electricity and vaccines, can claim the same.

People will always fear what they don’t know or understand, and there are a lot of nuances to new technology that people understandably struggle to grasp.

With AI, one of the greatest fears currently circulating is how people will be able to differentiate between what is real and what is not, particularly in digital environments like the metaverse.

The need for proof-of-humanity in the age of AI is a major concern, and the metaverse is not only taking these fears seriously, but many developers are doing something to solve it.

How the metaverse can integrate AI

While many people are speculating and fearful about the rise of AI, metaverse creators are excited about its potential. They see this as a great way to integrate technology and make their worlds more realistic for their users.

Roberto de Arquer Jaumandreu, co-founder of metaverse and digital identity firm Gamium, told Cointelegraph that AI will improve metaverse experiences in three specific ways in the near future: environment, effects and NPCs (non-playable characters).

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“Environments are the most common when it comes to AI experiences. You can ask the AI to create anything with you. No matter how outlandish, you can create anything with the right prompt. This is something that is about to also come in 3D. You can start from an asset, you can ask for a table, and you can even ask for a whole world,” said Jaumandreu. “The only limitation is your imagination.”

This ask-and-you-shall-receive model has already been seen with the creation of ChatGPT. Users can ask for a paragraph or an entire essay on pretty much any subject, going so far as to request specific information or statistics, and the AI will deliver it to them just as they asked it to. With the creation focus of many metaverses, this technology entering Web3 on a wider scale seems like a natural transition.

Jaumandreu added that AI will help improve the experience of filters in the metaverse.

“You can do anything with filters: be more handsome, change colors of things. And this is something that can be done through AI. Filters in the metaverse will be one of the most successful markets because people will be able to use them to alter their entire environments and make everything look cooler. AI will make all the difference with effects in the metaverse,” he said.

Another aspect that many people are simultaneously excited about and fear is the use of AI to create walking, talking, realistic NPCs.

“AI will improve NPCs through behavior integration. The behavior is not only you asking a question and then the NPC answering it, but also you asking them to behave a certain way and them doing it. You can use AI to move the skeletons of those NPCs to make them behave as if they were an actual person, doing what you asked them to do like they were role-playing,” Jaumandreu said. “More realistic movements from NPCs are a feature we are developing now.”

Essentially, AI is going to bring the metaverse to life and make it more interactive, and this is a belief that is shared by others in the Web3 space, like Raj Rajkotia, founder of sports metaverse LootMogul.

Rajkotia told Cointelegraph, “The metaverse is a perfect spot for the integration of AI technologies. It is one of the key elements inside our metaverse when it comes to avatars and personal profiles.”

Similar to what Jaumandreu said about the NPCs, Rajkotia believes that AI technology will transform the way avatars improve gameplay.

“When you’re playing a game, the game generally levels up through a database or usage. Incorporating AI into this makes that more interesting because as the machine learns your talents, your AI character in the game can also learn. So, your character will constantly learn and improve and get better at the game, and that will be done through the use of AI technology,” he said.

This integration has the potential to change gaming as players currently know it. If games, or stories within games, are directly connected to NPCs or avatars — especially ones with their own behaviors — every time a user restarts a game or story, they get to experience an entirely new game or story.

The main issue surrounding the integration of AI into the metaverse, however, revolves around how users will be able to differentiate between the AI characters and other real users.

Proof-of-humanity

The biggest concern people have with AI really boils down to trust. How can they trust that what they are interacting with is what they think they are interacting with? As the metaverse fills up with more and more AIs, this trust issue will have to be addressed in a way that makes users feel safe. Otherwise, they may no longer have a desire to interact within the metaverse at all.

“Due to the amount of AIs that are appearing right now, every time it’s more and more difficult to differentiate between what is AI and what is an actual person, so humanity proofs are going to be amassed in the very near future. We are focused on verifying and creating a unique identity for all of the internet,” said Jaumandreu.

This “proof-of-humanity” tool uses people’s biometrics to prove that they are human. Similar to the blue check on Instagram that tells users they are dealing with a notable person, the “check” in the metaverse would let people know that they are actually interacting with a real person and not AI.

Another concern with AI in the metaverse is that AI-based personalities could potentially flood the space. A solution to this issue would be to limit the amount of AI allowed within a certain metaverse or game.

“You have to be careful with how many AI characters are inside the crowd. Otherwise, what happens is people get discouraged and then lose trust in the environment,” Rajkotia added. “If people want to meet with their friends for a game and are expecting to play with a certain person but the game is full of AI characters, they’ll start to wonder if they are actually playing with that person at all.”

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The solution to this problem is a hybrid environment with a healthy mix of both. Users have the AI and self-learning that brings the metaverse to life, but there is also the desired human connection. The sense of community is important within the metaverse, and the community is created when there is actual human connection.

When the balance between AI and human characters leans too far in either direction, the metaverse ends up limited in a way that is not conducive to the purpose of the space. Without AI technology, there are limitations placed on what can be developed and how people can interact. With too much AI, there is no need for humans and, in turn, humans would not enter the metaverse.

While there will always be some concern surrounding AI technology, creators are working hard to show proof-of-humanity through biometrics. As more people develop within Web3 and create metaverses, the right balance will likely be figured out with time.

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Shiba Inu Announces Preorder Date for New SHIB-Themed Cold Wallets

Shiba Inu Announces Preorder Date for New SHIB-Themed Cold Wallets

The team behind dog-themed meme asset Shiba Inu (SHIB) is unveiling the preorder date for new SHIB-themed cold wallets. In a new announcement, Shiba Inu says that preorders for Tangem’s new SHIB-theme cold wallets will kick off May 29th. “SHIB Army! Tangem is about to unleash SHIB-themed cold wallets! These card-shaped vaults are set to […]

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Ethereum Gaming Altcoin Rallies After Project Gets Spot in Apple App Store

Ethereum Gaming Altcoin Rallies After Project Gets Spot in Apple App Store

An Ethereum-based (ETH) gaming altcoin is outshining crypto markets after being listed on tech giant Apple’s app store. In a new announcement, prominent gaming metaverse Axie Infinity (AXS) says it’s expanding its global reach by joining forces with Apple to bring over its strategy-based card game to iPhone users in Latin America and East Asia. […]

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Digital assets should be valued as ‘proper property’ — Sandbox co-founder

Around 5 billion people are online and digitally-bound assets should get the same treatment as any other type of property, says Sandbox co-founder Sebastien Borget.

Digital assets such as cryptocurrencies and nonfungible tokens (NFTs) should be recognized as legitimate property, especially as more of the world’s population goes digital, argues the co-founder of The Sandbox.

Speaking to Cointelegraph’s editor-in-chief, Kristina Lucrezia Cornèr, during Blockchain Week Rome last week, Sebastien Borget said thso-called “digital natives” — those who grew up with and subsequently have an increased confidence with digital devices — are growing.

“More than half of the world's population is now a digital native,” said Borget. The United Nations reported in December 2021 that almost two-thirds of the world's population, nearly 5 billion people, were online.

“We have to build a future for them where if they spend more time and more money on digital assets, those should have value and should be recognized as proper property.”

He added the metaverse may give a new way for digital natives to connect and governments should “value the work [and] recognize the jobs” that happen in the space and start to treat “the digital economy as a real economy.”

Borget said while there are world events posing challenges to global stability such as the Russo-Ukrainian war and ever-increasing inflation, he believes the metaverse can be “a driving force for positive impact, social impact, more awareness and inclusivity.”

Borget believes lowering the barrier to creating digital content opens new opportunities for many and cryptocurrencies can provide access to payments in countries where “the banking system is maybe not as developed.”

Artificial intelligence is one of the “driving forces” that can empower creators and accelerate the idea-generating process, according to Borget.

Related: KBW 2022: Digital property rights key to thriving Web3 economy — Animoca’s Yat Siu

“Everything that you have in mind now is a text prompt you can render and visualize. Before, it used to take days,” he said.

It’s not, however, at a level where it can produce content without “some human work” to get it up to scratch, Borget cautioned.

Borget said he hopes to create a platform where people can best reflect their inner talents and skills, which may best blossom in “the virtual world” such as helping in mental health.

“Being a platform that offers this possibility for people to find their own reason is great,” he added.

“You create a world where you see new experiences, new content, new ideas and the sum of that is always more positive than negative.”

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Lufthansa, Eurowings, other travel industry players push forward with Web3

After a new travel-focused blockchain hit the scene, major players in the industry are beginning to pivot to integrate Web3 technology.

After the recent launch of the Camino Network travel-focused blockchain, legacy travel companies are looking toward a Web3 future. 

Cointelegraph spoke with executives at Europe-based airlines Lufthansa and Eurowings — two of the first companies to use the Camino Network — to understand how Web3 integrations bring this industry to its next generation.

Johannes Walter, the head of channel partners at Lufthansa Group, said he believes “decentralization and tokenization” will create opportunities for new business models and relationships, “from building more direct, strategic partnerships and improving transparency to creating new revenue streams and enhancing the customer experience.”

“We aim to deeply understand the space to create long-term value for our customers and partners that aligns with our brand strategy.“

Data from a 2021 Statista report shows the travel and tourism industry’s contribution to the global gross domestic product was around $5.8 billion that year.

Jens Bischof, the CEO and chief customer officer of Eurowings, echoed this sentiment, saying that the travel industry is one of the “largest industries in the world,” which deals with large quantities of “sensitive data” every day.

“Web3 offers Eurowings a way to meet these demands cost-efficiently and with maximum security.”

Bischof also commented that the company is currently investigating how to use blockchain for customer loyalty. 

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Other companies in the travel industry have already employed blockchain-based solutions in their operations before the launch of Camino. Air Canada and Etihad Airways both integrated the Winding Tree blockchain for product distribution purposes without the need for third parties.

Despite the increased adoption, Bischof pointed out that a deterrence to mass adoption is the lack of clear regulation.

“Nevertheless, as big players worldwide are adopting Web3 technology and European institutions are at the forefront of crypto regulation [MiCA], we are looking into a promising future of driving our [industry] forward.”

Lawmakers in Europe recently gave their final blessing to the European Union’s Markets in Crypto-Assets legislation. This also comes as local lawmakers consider another piece of legislation called the AI Act to regulate the development and deployment of artificial intelligence. 

Other potential use cases of Web3 technologies integrated into the travel industry have already begun popping up. Using the metaverse has been discussed to “inspire travelers” before taking a trip to what a given destination has to offer via virtual experiences

Nonfungible tokens have also been on the table for use as NFTickets, which could allow revenue increases for airlines via secondary market resales.

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Epic CEO mocks ‘metaverse is dead’ notion — 600M coming to the ‘wake’

Epic Games CEO Tim Sweeney made fun of a recent Business Insider article suggesting the Metaverse had run its course.

Epic Games CEO Tim Sweeney is just as optimistic about the Metaverse as ever, after poking fun at a recent suggestion that online virtual worlds are “dead.”

The now-billionaire video game entrepreneur — creator of the Unreal Engine and Fortnite — took to Twitter on May 9 to mock a newly published article from Business Insider titled “RIP Metaverse, we hardly knew ye.”

The article by PR firm CEO Ed Zitron suggested the “once-buzzy technology” had “died after being abandoned by the business world.”

The article made particular mention of Meta’s virtual reality (VR) platform Horizon Worlds which Zitron claims has failed to live up to its “grand promise” of becoming the future of the internet.

It also mentions Decentraland and Yuga Labs’ Otherside as examples of Metaverses that have seemingly failed to live up to their hype and claimed investors have turned their attention to the next big tech fad — generative AI.

Excerpt from RIP Metaverse - An obituary for the latest fad to join the tech graveyard. Source: Business Insider

Sweeney however doesn’t appear to agree, suggesting there are 600 million users across virtual world platforms such as Fortnite, Minecraft, Roblox, The Sandbox and VR Chat.

“The metaverse is dead! Let’s organize an online wake so that we 600,000,000 monthly active users in Fortnite, Minecraft, Roblox, PUBG Mobile, Sandbox, and VRChat can mourn its passing together in real-time 3D,” he joked, which was echoed soon after by Sandbox CEO Sebastien Borget.

Related: Meta coughing up big money to developers building its metaverse

In April 2022, Epic Games announced a $2 billion funding round with the aim of accelerating the company’s plans for the Metaverse. The investment included a $1 billion investment from Sony Group and KIRKBI, the holding company behind the LEGO Group.

It came not long after LEGO Group and Epic Games announced they were entering a long-term partnership to build a “family-friendly” Metaverse.

Neither company is yet to reveal what plans entail. However, Lego Group chief executive Niels Christiansen told the Financial Times earlier this year that it is looking to announce more details about the collaboration.

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Ethereum Competitor Avalanche (AVAX) Partners With Chinese Tech Giant Alibaba Cloud on New ‘Cloudverse’ Project

Ethereum Competitor Avalanche (AVAX) Partners With Chinese Tech Giant Alibaba Cloud on New ‘Cloudverse’ Project

Chinese tech giant Alibaba Cloud is collaborating with Ethereum (ETH) rival Avalanche (AVAX) to venture into the metaverse. In a new announcement, the layer-1 protocol says that it is partnering up with Alibaba Cloud to create Cloudverse, a virtual space for businesses and brands. “Alibaba Cloud announced that they are entering the metaverse – on […]

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