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On December 17, 2021, the MetaSpace Real Estate Investment Trust (MREIT) was released on a cryptocurrency trading platform called PancakeSwap. Its main business goal? To Collect high-end real estate within Metaverse, build valuable virtual structures, and make a profit on them by renting them out. Just like a real estate trust in real life, MetaSpace, the first ever virtual real estate trust, wants to create a way for a group of individuals to hold shares in real estate projects that are profitable, but in the metaverse.

There are numerous benefits to being a landlord in the metaverse right now, whether it be solo or as a shareholder in a bigger company. Here are a few of them.

1. You could earn income while your virtual land appreciates

Although platforms like The Sandbox have not been around long enough to understand what appreciation might look like, Decentraland definitely has. Data pulled from NonFungible.com on Decentraland sales goes all the way back to 2017, when the native Decentraland money, a token called MANA, was worth just pennies on today’s dollar.

A lot was sold for the $111.52 equivalent in MANA on December 17, 2017. That exact lot on Dec. 16, 2021, sold for $13,703.49. Imagine if you would have bought that lot years earlier and rented it out! That is a huge gain on your return.

But those value leaps are also making it harder to purchase for those who are just “meta curious,” or simply cannot see the logic behind investing $15,000 in a virtual lot in a virtual world, thereby making a secondary market for landlords.

2. Commercial tenants are easier to find than you might imagine

Landowners in Second Life continuously put their completed properties and lots up for rent, building an income stream from virtual real estate that they bought potentially in the distant past (Second Life was opened in 2003) and continued to hold. They generally rent to people, but the beauty of the new vision of the metaverse is that there are a lot of commercial players getting into the mix as well.

Rather than just renting out virtual apartments and houses, you can construct virtual offices, virtual malls, or virtual event space and rent it out. Suddenly, you are a commercial landlord to actual commercial ventures that you could reach out and touch in the real world. Some brands are jumping into the metaverse and want the real estate to spread their messages to everyone that is nearby.

3. Input costs are low in comparison to real life

Even if you have hired a designer to construct your metaverse property, the cost doesn’t come close to that of real estate in the real world. You wouldn’t have to deal with any property inspections; there aren’t any rules about what you could and couldn’t build (and, in fact, gravity is not even an issue, so that is pretty cool); and there aren’t any laws about who could occupy what and for how long.

The lot might cost you a little bit, but you don’t have any physical building supplies to deal with, no waste, and no worrying about supply chain shortages. It’s all constructed of the same stuff: electrons and pixels. And those could be manipulated as needed, even if there happens to be a resin shortage and the color blue isn’t in stock.

Author: Steven Sinclaire

Many investors might be burnt out on choosing stocks to trade. But before investors get too discouraged and give up on choosing the right stock, they should think about this idea. This stock’s underlying company offers both resilience in the form of a strong balance sheet, huge cash flows and impressive long-term growth possibilities. This stock idea just happens to be Apple. Though the business may be popular, its shares are arguably highly underappreciated.

Fast-growing sales

Perhaps one misconception traders who don’t follow Apple well might have is that the business must be growing slowly given its large size. After all, Apple has an almost $3 trillion market cap. “Aren’t its growth days in the past?” some traders may ask this. But this is far from the truth. Despite a global operating environment that can be challenging, Apple’s earnings grew 33% in its fiscal year 2021 — a 1 year period ending in Sept. And this growth would’ve been at an even faster rate if it weren’t for supply shortages that led to billions in lost earnings over this period.

Further, Apple’s momentum in sales is broad-based. In the trailing year ending September 25, 2021, Apple’s Mac, iPad, iPhone and services earnings increased 39%, 23%, 34%, and 27%, respectively. The company’s combined sales from smart speakers, wearables and other accessories had a 25% growth year over year.

Strong cash flows

But Apple does not only give traders access to growth, it also provides them a stake in powerful free cash flows. The tech giant’s trailing 1 year period free cash flows was a whopping $93 billion — up from around $73 billion 1 year earlier and $59 billion two years ago. On top of the free cash flow the business has a net cash position of $66 billion.

All of this cash provides Apple a lot of options in the way that it invests in order to raise shareholder value. In the company’s Sept-ending fiscal year 2021, Apple deployed $11.1 billion in capital expenditures, payed $14.5 billion in dividends to its shareholders, and repurchased almost $86 billion worth of its own shares.

That last point about what Apple could do with its cash is the key. By repurchasing its shares so aggressively with extra cash, Apple is boosting the amount of claim each share has to the tech company’s business. And because Apple was able to rebuy all of these shares at lower prices than where the stock is currently trading, those rebuys have had a big positive impact on per-share intrinsic value. Going forward, since the Apple stock still seems undervalued, continued rebuys will likely contribute more to building shareholder value.

There are a lot of risks, of course. First and foremost, it is unlikely that Apple will keep up the levels of growth it served traders in 2021; if growth slows down too rapidly, this might be a concern. Further, while Apple’s growth is broad-based, the business is still largely reliant on the iPhone. The product segment accounted for over half of its fiscal 2021 earnings.

Overall, Apple is an excellent stock pick for next year and beyond because it provides both resilience and strong growth possibilities.

Author: Blake Ambrose

The reason retirees love dividend stocks is because they generate cash flow, but yield is not the only thing you have to think about. It’s also really important to know the risk, quality and growth possibilities of the stocks in your portfolio. There are various approaches to this that are valid, depending on your risk tolerance and investment needs. No matter what you make a  priority, there is a good dividend ETF belongs to that niche.

1. The Vanguard High Yield Dividend

The Vanguard High Dividend Yield ETF is a straightforward and popular funds in the higher-yield business. The manager of the fund picks around 400 United States based stocks that have some of the top forecast dividends during 2022, and it is weighted by market cap. Also, it excludes REITs, which are usually over represented when it comes to dividend funds.

This Vanguard fund has a very small 0.06% expense ratio, and it pays an excellent 2.71% yield distribution. The methodology does not scrutinize stability or quality in the same way, however the current income is hard to ignore. Instead, it lowers risk through diversification. It leans more heavily towards consumer staples stocks and financials than some others on this list.

2. FlexShares Quality

The FlexShares Quality Dividend Index Fund is a nice option for retired risk-averse people who make stability a priority. The managers of the fund pick stocks based on important characteristics such as stability, cash flow, efficiency, balance sheet strength, and dividend policy. The allocation that results from this is about 130 stocks that produce a higher dividend yield than the S&P 500 does, with low valuation ratios and lower volatility when compared to the overall market.

The most obvious strength is reliability, but there’s usually a trade-off. The fund has a 1.85% distribution yield which is a little lower among dividend-focused ETFs, and it may fall a little short of your retirement earnings needs. Its 0.37% expense ratio is a little high. That means that investors would be getting close to 1.5% in yield, that revenue and net of fees could be taxed.

3. WisdomTree United States Dividend Growth

The WisdomTree United States Dividend Growth Fund  uses the above quality dividend technique, but it also focuses on growth potential in place of historical outcomes. It also incorporates some allocation caps to make sure that it is not overexposed to any one sector or company. This methodology has resulted in a portfolio of around 300 stocks that lean slightly more toward smaller businesses.

This growth fund has some disadvantages that are similar with a fairly high 0.28% expense ratio and a relatively lower 1.78% distribution yield, but the possibility for growth attracts the younger retired individuals who are needing to balance their growth with income. Growth is a good feature to hedge against inflation and help protect your lifestyle during the later years of your retirement. That focus on expanding dividends has supported the WisdomTree and helped the fund perform better than the FlexShares ETF in overall returns since inception.

Author: Blake Ambrose

The end of the year can be a time for reflection, and that can also apply to your investment accounts. Many people decide to rebalance their portfolios as the end of the year approaches, so it is especially important to understand the effect that your trading actions have on your tax bill coming this April.

Below, you will find three easy-to-apply methods to lower or even eliminate any possible capital gains tax in 2021.

1. Harvesting Tax losses

If you have some losses in your taxable brokerage account, you will be able to offset the losses against any of your gains to keep from having to pay capital gains tax. You will need to net losses and gains of the same kind. For instance, short-term gains could only be netted against your short-term losses, and your long-term gains could only be netted against your long-term losses. From this point, you will again net the total to calculate the final number that will be reported on your tax return.

Let’s illustrate this with a numerical example. Let’s Say you have $5,000 in total short-term losses for the year (i.e., you purchased a stock earlier in the year and have seen it decrease in value by $5,000). During the same time, you have another stock that you bought earlier in the year that has gone up in value by $2,000.

If you were to sell both of these stocks, you would lock in a short-term gain of $2,000 and a short-term loss of $5,000, which leaves you with a $3,000 net short-term capital loss. Fortunately, you would avoid having to pay any tax on the stock that produced a gain, and you would also be able to subtract the $3,000 short-term capital losses as a deduction against ordinary revenue on your tax return.

2. Rebalance within your retirement accounts

When you start to rebalance in your brokerage account, you will pay tax on any gains that are realized. For instance, if you purchased a stock that increased in value and then you sold it after the increase, the IRS would come collecting. However, there is a different outcome if you were to trade in your retirement accounts.

Because some popular retirement vehicles such as Roth IRAs, 403(b)s and 401(k)s are tax-advantaged accounts, you will only owe taxes when you contribute or when you’re on the way out and receive a distribution. This will let you trade freely with your retirement accounts without having a fear of any capital gains tax — long or short term.

If you own a financial plan that calls for semi-yearly rebalancing, it is to your benefit to do the rebalancing in your retirement account where you’re sure there will be no real downside to moving your money around. Understanding this allows you to be even more deliberate when you bring your asset allocation back in line.

3. Do not do anything

Not touching your investments, regardless of how well they have performed, is a great strategy for paying zero capital gains tax. If your investments have appreciated a lot this year (and it is possible they have, with the S&P 500’s 20%+ gain this year), there’s no reason to adjust what’s been working for you, that is unless you need the money now.

Alternatively, you could defer investment sales to next year, which would postpone any potential capital gains tax due until 2023. This is a good strategy if you have a hefty tax bill that’s coming up in April or do not have any other losses this year to offset your gains. Here, you would still owe tax, but you would have the benefit of having a while longer to pay it.

Author: Scott Dowdy

The stock market has reached near all-time highs with just a handful trading days left in 2021. But a lot of growth stocks haven’t been a part of that rally, especially in the final weeks of the year. That slump is creating some great opportunities for investors to buy who are willing to take some risk on the volatility in exchange for owning the stocks with an unusually strong earnings and sales potential.

With that in mind, let us look at why these two stocks — Garmin (NYSE:GRMN) and Lululemon Athletica (NASDAQ:LULU) are attractive buys today.

Athleisure is a global business

By the end of 2021, Lululemon will have almost doubled its yearly sales footprint since 2018. But there is more room for this apparel specialist to have growth beyond its current $6.3 billion revenue. The company is finding high demand in categories like outerwear and menswear, and it has only just began tapping the potential in markets such as China.

Some traders remain concerned right now because of the impact a new COVID-19 strain could have on short-term sales. The shares have decreased more than 20% from their peak earlier this year.

Yet, the company’s finances are in great shape. Gross profit margin has been increasing steadily for several years despite rising expenses in 2021. The current 57% rate is about 10 percentage points above Nike’s.

Lululemon has a long way to go before reaching the $40 billion in global earnings that Nike currently enjoys. But its powerful performance through the COVID-19 pandemic means it should achieve many of the five-year goals set by management in 2019. These include the doubling in the size of the menswear company and the quadrupling of the international segment.

It might be a lucrative ride for investors to participate in.

Navigating toward success

Garmin also is not getting the credit it deserves from the market. The tech giant has used its power in innovation to build an impressive product portfolio such as smartwatches, consumer electronics like fitness trackers and high-end navigation platforms found in airplanes and boats.

That diverse offering has helped it consistently grow sales over the last five years even as some niches, such as car GPS devices, declined. Revenue has increased 27% so far this year and will likely cross $5 billion in 2021, up from $3.3 billion in 2018.

Yet, just as with Lululemon, the share price hasn’t followed the business’ improving trajectory. In fact, the stock price is down 25% from their peak in late Aug. thanks to Wall Street’s move away from higher-growth companies toward the relative safety of larger, more dependable profit generators.

Still, Garmin has maintained a strong income potential, at least in part because of a high profit margin on its premium tech items as well as its growing aviation and marine segment. Revenue this year is set to hit $5.60 per share, according to management’s newest forecast, compared to $5.14 the year before.

Meanwhile, the operating margin is predicted to dip just slightly, to 24% of sales from 25%, as the company invests in its manufacturing ability. That production upgrade will let Garmin enter 2022 with a far higher capacity.

There is no telling how much longer the current trader sentiment will put pressure these stocks. But buying shares of strong companies like Lululemon and Garmin tends to work out great for growth-focused traders. It’s also a nice bonus to purchase these stocks at a discount.

Author: Steven Sinclaire

Being a landlord and renting out property is one of the oldest ways in which you can earn a passive revenue stream. And these days, you do not have to purchase a home to get a piece of the action.

Look for real estate investment trusts, these are publicly traded businesses that own income-generating real estate.

REITs collect their rent from real estate and pass it along to the shareholders. That means traders do not have to be concerned about having to screen tenants, chasing down late payments or fix damages. Instead, they just sit back and collect the dividend checks when they choose a winning REIT.

Of course, the corona pandemic did affect some commercial real estate. And all REITs aren’t the same. If you’re a landlord for the e-commerce goliath Amazon, for example, you shouldn’t have any problems collecting a consistent stream of rental income.

With that in mind, let us take a look at the two REITs that are currently paying large dividends to traders — one might be worth jumping on with some extra cash you have laying around.

Amazon’s landlord

The first one is STAG Industrial, it is a REIT that operates and owns single-tenant industrial real estate throughout the America. Its largest tenant is Amazon.

The company’s portfolio has 517 buildings that totals approximately 103 million square feet that can be rented throughout 40 states.

Note that 434 of the 517 real estate properties are warehouses, which is a crucial part of e-commerce.

Moreover, a tenant survey last year revealed that about 40% of the REIT’s portfolio has e-commerce activity.

Since the business went public in 2011, it has paid out a higher dividend every year.

While most dividend-paying businesses follow a distribution schedule that is quarterly, STAG Industrial pays investors every month. The monthly dividend rate currently stands at 12.08 cents each share, which translates to a yearly yield of 3.2%.

STAG Industrial shares have increased 50% year to date. If you do not feel comfortable choosing an individual stock in this elevated market, you could always build a diversified passive earnings portfolio automatically by just investing your spare change.

Walmart’s landlord

When it comes to paying out monthly dividends, one business stands out above the rest— Realty Income (O).

Realty Income has been paying out uninterrupted monthly dividends since it was created in 1969. That is 616 consecutive dividends paid out each month.

Better yet, since it went public in 1994, it has had 114 dividend increases.

Realty Income enjoys a diverse portfolio of almost 11,000 commercial properties that are located in all 50 states, the UK, Puerto Rico and Spain. It leases them to about 650 tenants operating throughout 60 industries.

This means even if one industry or tenant enters a downturn, the effect on company-level financials will most likely be limited.

For example, while Realty Income rents out some real estate to AMC Theaters, whose company was hurt by the pandemic — it also has FedEx, Walmart and Walgreens as some of its top renters. And these companies turned out to be, for the most part, pandemic-proof.

Earlier in the week, the REIT raised its monthly cash dividend up to 24.65 cents per share, which gave the stock a yearly dividend yield of 4.4%.

Author: Blake Ambrose

Most of us would agree that cannabis is one of the fastest growing industries, both in the U.S. and globally. That does not mean it has not been a stomach churning ride for traders. Marijuana stocks normally have more than double the volatility as the S&P 500 does and total return swings of over 80% have been recorded on multiple occasions. The cannabis exchange traded fund (ETF) space has grown to a total of 10 different funds.

Top ETF Rankings For Cannabis in 2022

The cannabis ETF industry could be lowered to a couple of tiers – the first marijuana ETF that has remained one of the largest, a second ETF that has grown more than the rest, which has experienced a varied degree of success.

The ETFMG Alternative Harvest ETF (MJ) was the very first cannabis ETF to come out on the scene and it was, at least in the early stages, very successful. Assets skyrocketed and initial performance was solid. Whereas it was the only game in town in the beginning, it has since given way to several newer entrants, who have been able to improve on structure and cost.

The AdvisorShares Pure United States Cannabis ETF (MSOS) was the 7th cannabis ETF that had launched, but it has now become the biggest ETF in the space and has captured the #1 spot in these rankings. Why has it become so popular when many of its peers have faltered? I think it is because it was the first cannabis stock that focused on only American cannabis companies. For better or worse, home bias is actually a real thing, and many traders turn away from international stocks, particularly over the past ten years, in favor of what they are used to at home. The international exposure with these ETFs mostly comes from the United Kingdom and Canada to a lesser degree. From a strategic standpoint, the marijuana industry growth rates in the U.S. are expected to surpass those globally, so there is also an argument to be made that the fund’s potential, such as MSOS, is also greater. ETFMG followed up with the ETFMG United States Alternative Harvest ETF (MJUS), which follows a strategy similar to ETFMG, but it has barely made it on to the radar. The #7 spot reflects its higher trading costs and low asset base.

The Amplify Seymour Cannabis ETF (CNBS) is controlled by CNBC personality Tim Seymour and comes in ranked at #2 on this list. While it’s not necessarily seen as a factor in these rankings, CNBS has the advantage of being focused on companies with a more direct exposure to the cannabis industry, meaning it has focused less on things, such as fertilizer and tobacco. It is also actively controlled, an important factor in such a rapidly growing space.

The Cambria Cannabis ETF (TOKE) and the Global X Cannabis ETF (POTX) came in a little later, but these two ETFs are easily the cheapest options within this space, coming in at 0.51% and 0.42%, respectively. Granted, given the high volatility and bust/boom cycles we have seen in marijuana stocks so far, 20 basis points of cost savings is probably negligible, but the businesses are also leaders in the thematic space and have high quality management teams.

Author: Scott Dowdy

Amazon is getting ready to face its rival Instacart by providing a similar service.

Amazon might be rolling out its U.K. version of Instacart named Amazon Fresh Marketplace in Europe and the United States in 2022.

As a logistics powerhouse, Amazon plans to use its shipping abilities with grocery stores throughout the U.S. and start providing delivery services, like the current offerings of  the privately-held Instacart company.

While Instacart has been the top player in the grocery delivery sector, Amazon has been expanding its food offerings which includes buying Whole Foods for $13.7 billion, adding Amazon Fresh, which is its current food delivery company, and Amazon Go, its physical stores that don’t have any cashiers and are contactless.

Amazon adds Partners

In the U.K., stores such as Morrisons and Co-op have partnered with the Amazon Fresh Marketplace delivery service and Amazon Prime members can now receive orders on the same day.

Amazon spokesperson Jessica Canfield says that partnerships with additional grocery stores will provide customers with more options to choose from and the choice to shop online, but she didn’t provide any comments on a delivery service in the United States.

Since the beginning of the Covid-19 pandemic, shoppers have turned to curbside pickup or grocery delivery in the U.S.

About 69 million households bought groceries online in Nov., which is a 15% increase from last year.

Home deliveries have increased by 6% from last month while curbside pickup and  in-store shopping have risen by 29% when compared to the year prior.

Instacart has been increasing its offerings by working with grocery stores to build small warehouses to fulfill its orders. Instacart has also released deals where consumers could receive deliveries in less than 30 minutes by partnering with Kroger and Publix.

Will Grocery Chains be willing to Partner with Amazon?

While Amazon has made some partnerships overseas for its Instacart-like service, it still remains to be seen whether American grocery chains will be willing to partner with Amazon.

Amazon competes directly with other grocery stores and delivers through its growing Amazon Fresh grocery stores and its Whole Foods brand.

“These stores have been strategically located to help raise awareness with a lot of customers and let them know that Amazon Fresh currently has a physical presence within the market place that meets a wide range of customer needs,” according to Bill Bishop.

“This physical presence provides customers with 24/7 visibility and confidence and lets them know when they are shopping online they are working with an actual grocery store, and not just an unknown online provider.”

Amazon’s food delivery efforts, along with Fresh and Whole Foods make it a rival with many of the grocery chains it would like to partner with.

Author: Blake Ambrose

A few investors may hope for “set it and forget it” stocks. Unfortunately, considering the inherent volatility and risks that can come with holding stocks, this type of thinking is not suggested with individual stocks.

Even so, stockholders will at times come across companies destined to deliver gains that will last a lifetime. This is because of their customer bases and prospects growing. T-Mobile (NASDAQ:TMUS) and Innovative Industrial Properties (NYSE:IIPR) have the potential for this kind of long-term growth.

1. Industrial Properties that are Innovative

There is only one real estate investment trust (REIT) that specializes solely in buying properties for the cultivation of cannabis for medical use, that trust is IIP. At the moment, it has acquired 55 properties all over the country to be used for this purpose. IIP serves only a small portion of its possible market.

Cannabis companies usually don’t have access to banks because there are federal laws against marijuana sales, IIP has a special role in the industry. To give these companies financing, IIP buys their land and leases it back to the original owner. This led the company to new property acquisitions and has also kept its properties 100% leased.

By using this method, the company made close to $146 million in revenue during the first nine months of the year in 2021, 82 precent higher than they made the first nine months of 2020. The net income for the initial three quarters of 2021 was $85 million, a 94 precent increase from the same time period in 2020. Limiting the operating expenses to 42 precent helped to boost earnings, even with interest costing more than double during that time and the interest income dropped by more than 90 precent.

The stock rose by around 50 precent over the past year because of this success. Furthermore, being a REIT, it has to pay its shareholders at least 90 precent of its net income in dividends. Increasing profits have caused a dividend increase in each one of the past six quarters. Shareholders get a yield of 2.5% now that the dividend is at $6 per share annually.

2. T-Mobile

T-Mobile is one of only three companies providing 5G data service in the U.S., and the impact of the lead that T-Mobile has with 5G is just now starting to be noticed. It continues to beat its rivals, Verizon (NYSE:VZ) and AT&T (NYSE:T) on net account additions, they have reported 1.3 million in just Q3.

T-Mobile has attempted to compete with its rivals when it comes to service quality. It added to its portfolio of wireless spectrum by buying Sprint. Also, back in March, $9 billion was invested by T-Mobile to acquire C-band spectrum. The spectrum compares to “RF real estate,” which will make its service in specific markets better.

This year, T-Mobile is planning to use between $12.1 billion and $12.3 billion in order to upgrade its network. It won the number 1 ranking from J.D. Power for their customer care.

It had a revenue of $59 billion in just the first 3 quarters of 2021, 23 precent higher than during the same time period last year. T-Mobile had $2.6 billion in earnings during the first nine months of the year. That number climbed by 13% from a year ago. With equipment costs increasing by 48 precent, the profit amount fell behind the revenue growth rate.

Author: Scott Dowdy

If you are an investor in crypto, or you are thinking about joining the crypto world, chances are you have heard a great deal about Ethereum (ETH).

After Bitcoin it is the most valuable cryptocurrency. In the coming years ETH may very well skyrocket.

Some data estimates that by 2030 the currency may make it up to $50,000 — which is more than 10 times its price at the moment.

With that said, no one really knows for certain what ETH’s price will go up to in the coming years, however there are two reasons it may be destined for major growth in the future. Let’s look at them.

1. It’s a core part of decentralized finance.

A big reason ETH’s coin has the potential to raise its value is because the ETH blockchain has turned into a foundation of decentralized finance (DeFi).

DeFi apps that are being built make it possible for people to exchange assets without needing banks to handle the transactions. This technology could revolutionize many aspects in the financial world, and most developers are using ETH’s blockchain to build DeFi apps.

There are more than 3,000 of these ETH-based DeFi apps available as of now.

A main example of ETH’s ability to make new DeFi markets is the growing non-fungible token (NFT) market. Marketplaces built on ETH’s blockchain are buying and selling digital assets (like images and music).

The DeFi market’s estimated value is $100 billion as of now, which makes ETH’s blockchain technology a very valuable piece of this huge market.

2. Ethereum is about to get even better 

A drawback to ETH’s blockchain is that it requires a lot of energy to process transactions. That is because all the info that’s recorded on the ETH blockchain (even transactions) occur by using a proof-of-work type of system.

Simply put, proof-of-work is a when a difficult problem must be solved before transactions can happen. This entire process takes up major computing power and also takes a lot of time to finish.

Some great news is that ETH is growing and by next year it will officially move to a proof-of-stake system that will use the holders of Ether tokens to validate transactions. This will make ETH more efficient, and also make transactions process faster.

Ethereum is showing that its blockchain has the potential to get better and adapt to new demands.

Keep this in mind 

Investors should remember that the cryptocurrency market is very volatile. Even Ethereum’s token can have major price swings.

You should understand the potential risk of your investment before buying any cryptocurrency, even Ethereum.

Author: Blake Ambrose

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