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Crypto City: Guide to Melbourne

This “Crypto City” guide looks at Melbourne’s crypto culture, the city’s most notable projects and people, its financial infrastructure, which retailers accept crypto and where you can find blockchain education courses — and there’s even a short history with all the juicy details of famous controversies and collapses.

Fast facts
City: Melbourne
Country: Australia
Population: 5.15M
Established: 1835
Language: English

Australia’s second-largest city may lack Sydney’s amazing harbor views, but it makes up for it with a focus on art, sports and culture. There are more live music venues here per capita than any other city in the world, and the city has produced heaps of notable acts, including Nick Cave, Men at Work, The Avalanches and Kylie Minogue.

Located on the southern coast of Australia, Melbourne wasn’t founded until almost 50 years after Sydney, but it quickly became the wealthiest place in the world during the Gold Rush, from the 1850s to 1880s. It’s a very multicultural city, with the 10th-largest immigrant population globally. The city also ranks at number 27 on the Global Financial Centers Index and is home to the Australian Rules football code, the Australian Grand Prix and the Australian Open. It was the filming location for the first Mad Max film alongside Chopper and Animal Kingdom. Politically, Melbourne is more left-wing than any other city in the country and is home to the union movement.

Crypto culture

Melbourne embraced cryptocurrencies early on, and a thriving community was built up through regular meetups including Blockchain Melbourne, Women in Blockchain, Web3 Melbourne and futureAUS. Karen Cohen, deputy chairperson of Blockchain Australia, recalls there being a huge influx of newcomers during the ICO boom in 2017.

“The meetup culture was really exciting. We couldn’t get enough space, so people were watching our meetups on Facebook Live because they couldn’t get into the room because it was so busy.”

Talk & Trade meetups were held every Wednesday from 2015 to 2019 at the Blockchain Centre. Located at the Victorian Innovation Hub in the docklands, the Blockchain Centre was the heart of the community in real life, at least until the coronavirus pandemic struck.

Melbourne has been home to numerous crypto exchanges since 2013, and a plethora of ICOs were also founded in the city in 2017 and 2018, including CanYa, which operates freelancer platform CanWork, and blockchain voting company Horizon State.

While the pandemic has moved most things online for the past 18 months, Blockchain Australia hosted a series of events at YBF Ventures in the Melbourne central business district (CBD) for the national Blockchain Week earlier this year, and Talk & Trade is now held at RMIT, in between lockdowns.

With live events beginning to reemerge as vaccine rates slowly grind up, YBF Ventures will relaunch its blockchain community meetups, supported by Cohen as the expert in residence for blockchain. “2020, sadly, has been hard with COVID, so it’s had to move online,” she says. “But I think if we were able to meet in real life, it would still have very much a meetup culture.”

Projects and companies

Melbournites appear very interested in solving the problem of interblockchain communication, with at least three major cross-chain projects having strong ties to the city. CanYa founder JP Thor helped found the cross-chain decentralized liquidity protocol THORChain, and some of the anonymous local devs from THORChain went on to work on a similar project called Sifchain. Melbourne’s Simon Harman founded another cross-chain automated market maker, Chainflip, along with the privacy project Loki, which is now known as Oxen.

Web 3.0 developer studios Flex Dapps and TypeHuman are located here, as is the white-label blockchain services provider Pellar, whose infrastructure processes 10 million requests a day from around the world. Researchers from the government-run Commonwealth Scientific and Industrial Research Organisation and Monash University invented the MatRiCT technology (licensed to Hcash), which protects crypto from being cracked by quantum computers. NFT digital racehorse game Zed Run just raised $20 million from investors including TCG and Andreessen Horowitz. Algorand also has a noticeable presence in Melbourne, including through the Meld gold platform and Algomint.

Crypto exchanges headquartered in Melbourne include BTC Markets, Cointree, CoinSpot, CoinJar, noncustodial exchange Elbaite and OTC service Caleb and Brown. Major global fiat-to-crypto on-ramp Banxa is also based in the city.

Up-and-coming projects include insurance platform Day By Day, onboarding and fraud protection platform FrankieOne and accounting software AEM. DeFi-focused crypto fund Apollo Capital — which is a big investor in Synthetix and Internet Computer, among others — is also based in Melbourne. Apollo’s chief investment officer, Henrik Andersson, co-founded the decentralized pool trading platform dHEDGE and yield platform mStable (and helped out with a few ideas for this guide).

Financial infrastructure

The first Bitcoin ATM was installed at the Emporium in 2014, but there are only 13 Bitcoin ATMs dotted around Melbourne, mostly in big shopping centers. Australian banks have a slightly wary approach to crypto — while many banks are happy to allow users to send funds to exchanges, plenty of users have reported being suddenly debanked, especially those running crypto-related businesses. “They close accounts at will based on crypto use, and we’ve seen that happen, so they’re still not supportive as an industry,” says Cohen.

The New Payments Platform in Australia is something of a competitor to crypto (at least in terms of payments), allowing instant, 24/7 bank transfers using a phone number or email address. Often referred to as PayID, it was cited by the Reserve Bank of Australia as a reason that a central bank digital currency is not needed in Australia just yet. There are hundreds of retailers here in the Blueshyft network (Synthetix founder Kain Warwick’s other project) that accept cash payments over the counter for crypto exchanges.

Where can I spend crypto?

According to Coinmap, you’ll struggle to spend cryptocurrency directly in Melbourne at present, with fewer than 40 retail outlets accepting Bitcoin. (By way of comparison, Ljubljana in Slovenia has half the population but 554 crypto-accepting merchants.) It wasn’t always like this, with swathes of Melbourne cafes and businesses accepting crypto a few years ago, but then removing the option after it failed to take off.

Many retailers used the crypto payment service from TravelbyBit; however, it was dropped after the company merged with Travala in mid-2020. Australia’s oldest, biggest board game retailer in the CBD, Mind Games, gladly accepts Bitcoin via the Lightning Network. You can also learn rock climbing at Melbourne Climbing School, get fit at the women’s-only Fernwood Gym in Bulleen, get your computer fixed at Another World Computer Centre in Coburg or grab some raver gear from Ministry of Style in Collingwood.

If you’re relying on Coinmap’s data, note that some retailers featured have since gone out of business (most likely due to the pandemic), including cult book store Polyester Books, gift shop Vera Chan and various cafes.

Approximately 20 small businesses accept Bitcoin Cash, according to Bitcoin.com, including Japanese wellness clinic Sensu Spa and ties and cufflinks merchant Jay Kirby Ties in the CBD.

Despite the lack of merchants accepting direct crypto payments, you can pay for pretty much everything in Melbourne using crypto via intermediary services that transform it into cash. Living Room of Satoshi lets you pay any Bpay biller or bank account using 18 different cryptocurrencies.

Education

RMIT University’s Blockchain Innovation Hub studies the social and business implications of blockchain, while Monash University’s Blockchain Technology Centre provides training and conducts research. There’s a Blockchain Innovation Lab at Swinburne University and Deakin University, both of which conduct research.

Controversies and collapses

Auscoin was perhaps the most controversial project to emerge from the city. Founded by Lambo-driving souvlaki chain-store owner Sam Karagiozis, the token was created to fund the rollout of 1,200 Bitcoin ATMs. The Aussie version of 60 Minutes dubbed it an “$80 million scam” that was built on nothing more than “grandiose promises,” although the ICO only raised $2 million. Auscoin was ordered by AUSTRAC to cease operations after Karagiozis was charged with trafficking 30 kilograms (66 pounds) of drugs via the dark web.

Elsewhere, up to 200 investors lost about $10 million between them when Melbourne-based crypto exchange ACX mysteriously collapsed at the end of 2019. It was operated by Blockchain Global, whose founder Sam Lee was instrumental in setting up the Blockchain Centre.

Another local exchange that mysteriously folded was MyCryptoWallet. Founded in 2017, National Australia Bank froze its accounts in early 2019. The exchange found alternate banking services and recovered temporarily, but later that year, users found they had lost access to their funds. As of April, they had yet to recover their funds, and Australia’s corporate regulator, the Australian Securities and Investments Commission, was said to be looking into it. Huobi Australia launched in Melbourne in 2018 but quickly shuttered due to a lack of business during crypto winter. Horizon State, a promising blockchain-based voting platform, launched in Melbourne and then moved to New Zealand where it was on the verge of doing great things when a mysterious court case back in Melbourne scuppered the entire project. In a happy ending, the community is resurrecting it from the ashes with a crowd equity raise.

Notable figures

Ethereum influencer Anthony Sassano; BTC Markets CEO Caroline Bowler; Apollo Capital chief investment officer Henrik Andersson; A. J. Milne of Meld Ventures and Algomint; Blockchain Australia CEO Steve VallasTom Nash and Alex Ramsey of Flex Dapps; Women in Blockchain International manager Akasha Indream; Algorand Foundation chief operating officer Jason Lee; CanYa and THORChain founder JP Thor; “Satoshi’s sister” Lisa Edwards; Blockchain Centre founder Sam Lee (also of the now-defunct ACX); RMIT Blockchain Innovation Hub professor Jason Potts; Joseph Liu, director of the Monash Blockchain Technology Centre and inventor of the tech behind Monero; Oxen chief technology officer Kee Jefferys; Emerging Tech Talent founder Karen Cohen; Ethitech head of education Anouk Pinchetti; TypeHuman director Nick Byrne; Auscoin founder Sam Karagiozis; and blockchain law specialists Joni Pirovich of Mills Oakley and John Bassilios of Hall & Wilcox. Cointelegraph team members and contributors based in Melbourne: Andrew Fenton, Brian Quarmby, Kelsie Nabben.

Magazine by Cointelegraph
Wednesday August 4th 2021

Embracing tech ‘offers paths to pandemic freedom’

Tech experts say governments and health authorities must seize the chance to use blockchain technology for Covid-19 vaccine passports.

Blockchain – an electronic ledger or database – has typically been used to trade crypto currencies. But Lachlan Feeney, CEO of blockchain consultancy Sabres, said the platform could be used together with an app or QR code to deliver transparent and incorruptible Covid-19 vaccine passports.

“Blockchain for a number of reasons would be at least a technology that should be considered,” he said, adding that it would enable proof of vaccination to be standardised and simplified.

“You would want the simplest solution as possible… a QR code… sent to your phone once you get your vaccination.”

The QR code could be link to data including when and where someone was vaccinated and even which brand of jab they received – all stored on a secure blockchain ledger, Mr Feeney said.

‘This would be a wonderful test case as a globally secured way of sharing health data’
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Karen Cohen
Blockchain Australia

‘What you really want is… standardisation and simple user interface so that whoever needs to check the certifications can do so in a standardised and seamless way,’ he said.

VetDB chief and Steve Joslyn has already developed a blockchain-based passport for animal vaccines to tackle Hendra viruus – which can read from bats to hoses to humans – and a prototype for a Covid-19 vaccine certificate.

“We adopted our system and made a proof of concept that uses smart chips in ID cards or passports,” Dr Joslyn said.

“We leveraged our existing technology that basically records all aspects of a vaccination event, including the (vaccine) vile, the GPS location, image, the administrator, and proof of attendance for the patient there.

“We basically timestamp all of that data with a blockchain method, which essentially proves that it happened at that time and at that place.”

All of the data could be stored on a passport with a smart chip, Mr Josyln said. Use of blockchain in healthcare was “Inevitable” but governments were still “warming up” to its potential, he said.

Emerging Tech Talent director and Blockchain Australia deputy chair Karen Cohen said no technology was 100 per cent hack proof, but blockchain was safe because data could not be altered.

“The idea of blockchain is that it is fast, secure and scalable. It’s a verified record of the vaccine and I can share that record if I want.” Ms Cohen said.

“This would be a really wonderful test case as a globally secured way of sharing health data. It is almost a race for digital identification.”

Angelica Snowden
Journalist / reporter at The Australian.

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Women in Cryptocurrency: How to overcome the barriers-to-entry

Marissa Hayden
9 March 2021
 
By Independent Reserve
 
The reason why there are fewer women investing in crypto is multifaceted, with many barriers to entry closely overlapping and thus making it difficult to point out any one issue that can be easily addressed.
 
We spoke to two women in the crypto space to get their thoughts on why the community seems to be dominated by men and how they are trying to overcome this.

What barriers to entry are there for female cryptocurrency investors?
 
It would be remiss to not state the obvious. When you search for crypto related videos, blogs or discussions on Twitter, you can instantly see that the discussion is dominated by men.
 
As Karen Cohen, Deputy Chair of Blockchain Australia, noted “We are what we see, if we don’t put women at the front of our advertising and promotions and include them in events and panels, women will continue to feel that they aren’t part of the cryptocurrency and blockchain industry.”
 
 
There’s a perception of crypto being a man’s world
 
“We know that interest in Bitcoin initially emerged from communities that have traditionally had a high concentration of men, such as programmers and cryptographers. However, digital assets are truly multidisciplinary,” said Chloe White, Nation Blockchain Roadmap Lead at the Department of Industry, Science, Energy and Resources.
 
“The subject matter spans finance and computer science along with law and the social sciences, and it increasingly attracts a broad range of individuals including humanitarians, futurists, educators and even artists.”
 
“Sharing the work of female leaders and innovators is a great way to show that the industry is full of talented women. For example – Elizabeth Stark, Caitlin Long and Lyn Alden are all incredible trailblazers helping to push the global industry forward, by tackling technology development, policy innovation and investment analysis, respectively.” Chloe White added.
 
Could the risks associated with crypto deter female investors?
 
The perceived association with risk is expressed by both men and women. However, according to Pew Research “More men than women use the internet for some less predictable and even more risky transactions, such as doing auctions or trading stocks.” Naturally, Bitcoin and cryptocurrency would be perceived even riskier because of the industry’s infancy and well-reported price fluctuations.
 
It is reflected in our own user base. While we, at the Independent Reserve, do not collect gender details of our customers – our customer support team that deals with new registrations have confirmed more men registering as customers than women.
 
 
But, things are changing
 
We will see more women joining the crypto ecosystem. There are three reasons why:
 
  1. We’re already seeing increasingly more women joining our exchange. Using Google Analytics data, the ratio between men and women is closing, moreover, women are converting at a higher rate than men.
  2. It’s still early days for the blockchain and cryptocurrency space, in our opinion. So, if we continue to progress through the lifecycle of technology adoption the closing of the gender gap will likely occur.
  3. The face of the crypto community, be it online or offline is changing. We’re seeing more women heading companies and community initiatives in the crypto space. This will inevitably encourage more women into the space.

What actions can the community take to encourage more female investors?

 
Advice from Chloe White:
Men often ask me why more women aren’t interested in Bitcoin and digital assets. I tend to ask them this question in response: who first told you about Bitcoin, and in your daily life, who do you find yourself discussing crypto with? Answers often reveal that men tend to raise this subject matter with other men, far more than they do with women, and I believe that this tendency makes a significant difference to the gender balance at community meetups, in online forums, and to the shape of the industry as a whole.
 
I have always had an interest in finance, but if it weren’t for a few men in my life who encouraged me to dig deeper into the strange world of “magic internet money,” I doubt that I would have ended up developing such a strong passion for what I do. So, if you would like to see more women enter the space, start at home. Talk to your partners, friends, family and work colleagues. Bring them along to the meetups and show them the technology. The onus is on all of us – not just women – to be conscious about who we choose to share our knowledge with.
 
Advice from Karen Cohen
We need to make new people welcome, invite them to meetups, encourage them to ask questions without making them feel “stupid”. Mentor more women and the older generation help them buy and sell their first crypto.
 
Women in Blockchain run regular inclusive meetups to build more women in the space and to make space for introductory questions and answers. We invite all males and females to attend our events and learn more.
 
The Crypto Community
 
It can be intimidating for some women to participate in male-dominated industries or communities, such as cryptocurrency. While there’s an increasing number of events aimed specifically at women and introducing them to cryptocurrency and blockchain space – most may not be aware of them or may find it difficult to attend.
 
If you are interested in attending a women’s cryptocurrency event, check out these meetup groups held in different cities across Australia: