DeFi Project Furucombo Lost $15M in an Exploit; All 22 Affected Users will be Compensated

DeFi Project Furucombo Lost $15M in an Exploit; All 22 Affected Users will be Compensated

After crashing over 63% from ATH of $6.97, COMBO price has recovered 41.5% to $4.08 today. The protocol now plans to complete several major external audits of the entire platform this year.

DeFi project, Furucombo was compromised for 21 different assets worth $15 million over the weekend. The protocol intends to compensate all 22 affected users and is now working on a mitigation plan that’s to be shared with the community soon.

During the late hours of Saturday, the team shared on Twitter that they have found the root cause of the attack, and the vulnerability is patched. The contract is now safe to use.

As per the post mortem shared by the team Monday, the attack that occurred at 04:47:53 PM UTC on Saturday 27 February 2021 was identified quickly, and all affected contracts were disabled.

Furucombo is working closely with a dedicated security team to monitor the situation and to prevent further user funds from being compromised.

The exploit meanwhile resulted in the price of COMBO crashing over 63% to $2.54 from an all-time high of $6.97 just four days back. Since falling to this level today, the price has recovered 41.5% to $4.08.

Furucombo is basically a ‘drag and drop’ tool designed to help with the batching of transactions and interactions with other decentralized finance (DeFi) protocols.

Sharing what exactly went down, the team said the Aave contracts were both valid callers and valid callees. The unknown attacker delegatecalled into the Aave V2 lending pool proxy and asked it to initialize its implementation to the attack contract. Because its contents were 0, the initialization succeeded.

This allowed the attacker to use the Aave V2 lending pool proxy to delegatecall into the attacker’s implementation contract, which proceeded to drain funds from users who had approved Furucombo’s proxy, the team noted.

Upon discovering the compromise, the key element of the attack on the Aave V2 lending pool was removed, and the attacker’s transaction was reverted.

In response to the attack, Furucombo is now planning to complete several major external audits of the entire platform this year.

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Author: AnTy

Billion-Dollar Hedge Fund, Third Point, CEO Is Doing A “Deep Dive Into Crypto”

Billion-Dollar Hedge Fund, Third Point, CEO Is Doing A “Deep Dive Into Crypto”

Daniel S. Loeb, the chief executive officer of the billion-dollar hedge fund, Third Point, is taking a special interest in cryptocurrencies which he shared with the world over Twitter Monday.

Loeb shared this detail in response to venture capital firm a16z partner Chris Dixon’s piece on NFTs. He said,

“I’ve been doing a deep dive into crypto lately. It is a real test of being intellectually open to new and controversial ideas. Culturally I compare bridging the crypto world with the old as akin to finding a portal between two distinct worlds in the multiverse.”

Given that the hedge fund manager is an avid art enthusiast, it makes sense that the NFTs have captured his interest. He also enjoyed Dixon’s “article as an art collector and investor.”

Talking about his latest interest in the cryptocurrency market, which recently surpassed $1.5 trillion in total market cap, he said it is important to understand it while keeping a healthy skepticism about it. Loeb said,

“Maintaining healthy skepticism while also deepening one’s understanding requires one to engage in what Steve Jobs (and Fitzgerald before him) described as requisite for a superior intellect: “to maintain two opposed ideas in one’s mind and retain the ability to function.”

During his Twitter thread, Daniel Loeb also talked about that being late to the crypto party doesn’t mean that you would be suffering the losses. During the ongoing bull cycle, Bitcoin has hit a new peak at $58,300, and after last week’s losses, BTC is back to surging today, nearing $50k.

Since last year, Bitcoin and cryptocurrencies have gained mainstream recognition, with traditional investors and major companies jumping on the crypto bandwagon. The real estate investor and stock and bond analyst said,

“Another conflict to overcome is the idea that being late to the crypto party will inevitably lead to one taking the sucker seat at a high stakes poker table versus this still being early days in what is just now being adopted in the mainstream.”

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Author: AnTy

Every Internet Community Might Have Its Own Micro-Economy, Including NFT’s, Someday

Every Internet Community Might Have Its Own Micro-Economy, Including NFT’s, Someday

“Crypto, and specifically NFTs (non-fungible tokens), can accelerate the trend of creators monetizing directly with their fans,” reads a16z latest blog post written by Chris Dixon, a general partner at Andreessen Horowitz.

While social platforms will continue to be useful for building audiences, creators can increasingly rely on other methods, including NFTs and crypto-enabled economies, to make money, he said.

Non-fungible tokens (NFTs) are gaining a lot of attention lately as people digitize their art, videos, music, gifs, games, text, memes, and any number of things and sell them online.

HighestSellingNFT

Source: Twitter

While NFTs will have their own ups and downs, they offer fundamentally better economics for creators by removing rent-seeking intermediaries, enabling granular price tiering, and reducing customer acquisition costs to near zero by making users owners, he wrote.

As such, this new sector which is still early and will evolve, Dixon believes, will see an increase in their utility as digital experiences are built around them, including marketplaces, social networks, showcases, games, and virtual worlds. He added,

“Someday, every internet community might have its own micro-economy, including NFTs and fungible tokens that users can use, own, and collect.”

In this burgeoning sector, recently, the major auction house Christie’s also joined in through Beeple’s digital art, the payment for which was accepted for the first time in crypto, Ether.

ChristiesBeepleNFT

Source: Twitter

People are pouring in huge amounts of money in these NFTs, with a batch of digital collectibles known as CryptoPunks getting sold for about $1 million in cryptocurrency in just a few minutes recently.

These digital collectibles are created on the Ethereum blockchain using the ERC-721 standard and are embedded into a smart contract.

This obviously has people making copycats, as seen with “Binance Punks.” Larva Labs, the company behind the Punk collectibles, clarified last month that it “has taken the art from CryptoPunks and is selling it as a copy on another chain. This is in no way an authorized project.”

AmandaCernyNFT

Source: Twitter

On February 22nd, volume in the NFT space peaked above $64 million and over 44k traders, an uptrend of 114x and 26.5x respectively from the beginning of the year, as per Dapp Radar.

Since then, the volume on NFT marketplaces has come down to just under $16 million and traders to over 25k.

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Author: AnTy

Citibank: Bitcoin’s at the ‘Tipping Point’ & The Start of Massive Transformation into the Mainstream

Citibank: Bitcoin’s at the ‘Tipping Point’ & The Start of Massive Transformation into the Mainstream

“The vision of Bitcoin as a force that will transform the world may seem self-evident in just a few more years,” states the report.

In its 108-page long report on Bitcoin, Citibank talks about the leading cryptocurrency at “the tipping point of its existence and the path forward from here may have broad and widening repercussions.”

The first time Citi GPS talked about Bitcoin was back in 2014 when Bitcoin had a mere $6.2 billion market value. At the time, the bank cautioned that it could be replaced by another digital currency.

Much like the Crypto Twitter (CT), the bank likens the journey of Bitcoin with the philosophy of Schopenhauer,

“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”

Large institutional investors and organizations have begun to participate in and support the leading digital currency. “In a search for yield and alternative assets, investors are drawn to Bitcoin’s inflation hedging properties,” reads the report.

The fact that this has happened just a decade in its existence “makes Bitcoin remarkable regardless of its future,” it says. The report adds,

“The vision of Bitcoin as a force that will transform the world may seem self-evident in just a few more years.”

A new payment system which is relying on a decentralized cryptographic approach can also challenge traditional payment rails. Besides being a payment system, Bitcoin is digital gold, a store of value, and a global facilitation currency.

Bitcoin’s decentralized design, lack of foreign exchange exposure, fast (and potentially cheaper) money movements, secure payment channels, and traceability combined with its global reach and neutrality, according to the bank’s executives, could spur it to become the currency of choice for international trade.

More than this, it has become the inspiration for a rapidly evolving blockchain-based economy.

The report aims to provide its users a better understanding of Bitcoin, which has entered a new stage of its journey, according to the bank.

“Bitcoin is at a tipping point, and we could be at the start of massive transformation of cryptocurrency into the mainstream,” concludes the bank.

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Author: AnTy

Twitter Pulls a MicroStrategy, Announces $1.4 Billion Convertible Notes Offering

Twitter Pulls a MicroStrategy, Announces $1.4 Billion Convertible Notes Offering

Jack Dorsey is taking a page out of Bitcoin bull Michael Saylor’s book and raising $1.25 billion by offering convertible senior notes.

The notes will be due in 2026, with initial purchases having a 13-day option to buy up to an additional $187.5 million to cover any over-allotments if any. They will be convertible into cash, Twitter common stock, or a combination at Twitter’s election.

The social media giant will be announcing the interest rate, institutional conversion rate, and other terms at the time of pricing.

While Saylor’s MicroStrategy used the proceeds from the two rounds of debt issuance to buy Bitcoin, it hasn’t been revealed what Dorsey will be doing with the total of approximately $1.43 billion raising funds.

But it didn’t stop Crypto Twitter (CT) from speculating that Twitter may be joining Square, Tesla, and MicroStrategy.

“Given the recent treasury strategy of Microstrategy, could Jack be planning to put bitcoin on Twitter’s balance sheet?” tweeted Anthony Pompliano, founder of hedge fund Morgan Creek Digital.

In reaction, Bitcoin price jumped above $48,000 after falling to about $43,100 on Sunday.

Most importantly, Dorsey is a Bitcoin bull himself and sees it becoming the currency of the Internet. As we reported, his other company Square’s Cash App, is seeing huge interest in Bitcoin among its users and earning huge revenues from that.

Interestingly, MicroStrategy also announced Monday that it purchased an additional 328 BTC for $15 million at an average price of $45,710. Now, it holds a total of 90,859 BTC, acquired for $2.186 billion.

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Author: AnTy

USDT Adds Almost $15 Billion in First Two Months of 2021

USDT Adds Almost $15 Billion in First Two Months of 2021

Meanwhile, FUDsters find something new to cope with, and Tether gets blackmailed over “bogus” documents.

The latest FUD surrounding Tether is the forged documents circulating online that purport to be between the personnel of the USDT stablecoin issuer and the representatives of the Deltec Bank & Trust.

“The documents are bogus,” said Tether on Twitter.

The documents are circulated by the Twitter user Trolly McTrollface who claims the latest leaked email is from May 3, 2020, in which Tether is asking for help “presenting their reserves in the best possible light” to its bank Deltec, which keeps the USD reserves.

Calling this a “crucial piece of the puzzle,” the Twitter user says it was just two months before that when “Tether started printing like crazy” and “Binance decided to switch from Bitcoin to USDT as collateral for leveraged trading.”

Apparently, Tether got a stake in the leading spot trading platform, and in exchange, Tether plowed their reserves to save the crypto market after the crash, argues the Twitter user.

To be reminded, the March sell-off occurred in the macro markets as well, from stocks, gold, oil to USD, and ever since then, everything has been pumping.

Tether rebuffs these claims, saying they have been receiving a ransom demand for 500 BTC to prevent the leakage of the documents “in an effort to “harm the bitcoin ecosystem.”’

“We are not paying,” Tether responded in no unclear terms adding, “those seeking to harm Tether are getting increasingly desperate.” While “pretty sad attempt at a shakedown,” the firm says these forged communications and ransom demands have been sent to law enforcement.

The latest round of FUD has been manufactured after the settlement with the New York State Attorney, putting an end to all the concerns of lack of transparency, the backing of USDT, and legal scuffle. The firm said at the time,

“No finding that Tether ever issued without backing or to impact crypto prices. This settlement shows our commitment to the future of the industry and to transparency with quarterly disclosures of Tether reserves going forward.”

USDT, meanwhile, remains unaffected by all the FUD as the market cap of the dominant stablecoin nears $36 billion. It has added almost $15 billion to its market capitalization since January 2021, “more than all other stablecoins current market caps combined.”

The price of Bitcoin, which is on an uptrend marking a green start of the week and the month, has rallied more than 65% during this period.

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Author: AnTy

Bitcoin Sellers Are Running Out of Ammo; Sees Green Start of the New Month

Meanwhile, Warren Buffett says Fixed-income investors worldwide, from pension funds, insurance companies to retirees, all are facing a “bleak future.”

Last week has been a brutal one for Bitcoin as the prices continued to go lower and lower. The low, for now, has been set at around $43,100, representing a drop of 26% from the Feb 21 high of about $58,300.

“BTC has not yet seen a capitulation wick but sellers running out of ammo,” commented trader and economist Alex Kruger. “Stocks & bonds opened sharply higher. Playbook is strong week up, not just a strong open.”

Still, another drop lower will take us to the January high of $42,000, which still won’t be anything out of the ordinary.

During the 2017 bull cycle, Bitcoin had several drawdowns of an average of 30% to 40%, and such a pullback this time would take us just under $35,000. This means we can see another leg lower especially given that March is not historically a bullish month for Bitcoin rather just the opposite.

$45k is actually very strong support, and “any dip into $39k is a no-brainer BTFD,” said on-chain analyst Willy Woo.

Moreover, the recent sell-off has been ignited by the macro environment. As we reported, the stock market has been dragging Bitcoin down along with it in the aftermath of bond prices soaring.

The sudden US treasury lift-off has been on the changing outlook for inflation and economic growth following unprecedented stimulus and monetary easing along with the increasing COVID-19 vaccinations. This further pushed the US dollar up.

Still, with the recent uptrend, the rates have only gone to pre-COVID levels. Even Warren Buffett mentioned it in their annual letter to his followers Saturday where he wrote, “bonds are not the place to be these days.”

The billionaire mentions how the yield on 10-year U.S. Treasury bonds has fallen 94% from Sept. 1981 levels. “Fixed-income investors worldwide – whether pension funds, insurance companies or retirees – face a bleak future,” reads the letter.

Commenting on this, Bitcoin bull MicroStrategy CEO Michael Saylor said if we agree with this that “bonds are broken as a store of value, then corporate treasury reserve strategies employing bonds no longer work to preserve shareholder value,” and of course, the answer according to him is the leading cryptocurrency.

Buffett, however, didn’t mention Bitcoin, Robinhood, or WallStreetBets in his letter at all. Meanwhile, his company’s cash stockpile, known for being massive, has come down a bit to $138 billion.

A low yield has been actually positive for Bitcoin and risky assets; as such, rising yields impact the prices in the market.

On the first day of March, Bitcoin went just over $48k, making a green start of a new month, following positive sentiment in the risky asset driven by three variables: bond panic over, Powell to calm markets, and fiscal package approved, noted Kruger

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Author: AnTy

Bitcoin Sell-Off Over? Bullishness Continues to Permeate the Market

This week, the price of Bitcoin has been on a rollercoaster ride. We started with a dump right after hitting a new all-time high last Sunday at about $58,350.

Following the drop, we made several attempts to go back up but only to end up lower and yesterday, we went down further down to $44k.

As of writing, BTC is seeing some relief trading around $46,800 but that’s to be seen if the upward momentum will continue or take us only lower. Trader TheCryptoDog said,

“At this point my assumption is we don’t go lower from here. That can change at the drop of a hat (we’ll see what happens to macro on Monday), but looking at this now I would be more surprised to see BTC sink.”

One caveat is March, the month which in the last six out of seven times have been a red one with an average drawdown of over 14%.

Unlike BTC, Q1 is good for Ethereum which five out of six times ended with significant greens, already it is up 102% YTD despite the losses. This week, it went down to $1,350 during this recent sell-off, even lower than the previous ATH of $1,420.

Bitcoin’s lack of direction, right now, is turning out good for altcoins, leading to a 15% to 30% uptrend. The total market cap has also recovered to $1.455 trillion, adding more than $100 billion in the past 24 hours.

All This Bullishness

While the price action in the market isn’t’ looking bullish, the developments in the market certainly suggest so.

For starters, the first Bitcoin ETF debuted on the TSX last week, Purpose Bitcoin ETF (BTCC) continues to see demand and now holds more than 10,000 BTC.

If we look at the premium on the Bitcoin product of the world’s largest digital asset manager, Grayscale which went negative this week, but is expected to be just short-term noise, could actually turn out to be bullish.

Started in late Sept. 2013, “Outside of 2013-2014 this has only occurred 4 times. With fees of 2% and a current discount of 2.5%, BTC can be bought inside the trust cheaper than at market,” noted one analyst.

“Like the last 2 times, does the bull continue?” he added.

Bitcoin miners are also sending bullish signals as they stop their selling and start accumulating BTC. For the first time in two weeks, Miners Position change has turned positive.

The Spent Output Profit Ratio (SOPR) indicator, which is the price sold / price paid, is another one that has gone back to level 1, indicating the bottom on the sell-off.

Not to mention, money-making exchange Coinbase has announced its public listing and got more than $100 billion valuation. This would make the company CEO, Brian Armstrong who previously worked at Airbnb to get rich and join the world’s 500 richest people.

Even more bullish is the news that the House passed its $1.9 trillion coronavirus relief package early on Saturday, which will now head to the Senate. Democrats are rushing to approve more aid before unemployment programs expire on March 14.

This time, payments of $1,400 will be made to most individuals, along with the same amount for each dependent. $1,200 stimulus check from last time invested in Bitcoin at the time is currently worth $8,500 and surpassed $10,000 last week.

And just like the last stimulus package, this could propel the market higher.

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Author: AnTy

UK Treasury-Ordered Report Calls for A 5 Point Plan; Includes FinTech Fund & Crypto Regulation

UK Treasury-Ordered Report Calls for A 5 Point Plan; Includes FinTech Fund & Crypto Regulation

Treasury report based on the U.K. fintech, concludes govt needs to run a specific regime for Crypto-asset’s regulations and control.

U.K. chancellor, Rishi Sunak, triggered that review back in March 2020, under Ron Khalifa’s supervision (former WorldPay boss). Afterward, the Treasury-ordered review points out a plan to make U.K.’s fintech a leading market in the world.

According to the report named “Khalifa Review of U.K. Fintech,” the country can play a vital role in crypto-mania and become a globally recognized center for trade, issuance, clearance, and exchange of cryptocurrencies.

Khalifa addressed the European finance’s progress after the crypto favored the proposal, MiCA (Markets in Crypto-assets), has come in force, so the U.K. also has to “act quickly” to put its fintech firms ahead of the curve. Khalifa’s Review states,

“The U.K. should aim to be at least as broad in ambition as MiCA – but should also consider whether it can develop a bespoke regime that is more innovation-driven. A bespoke regime for crypto assets should adopt a functional and technology-neutral approach, in line with the principles of the current regulatory framework, as well as the concept of ‘same risk, same regulation,’ while being tailored to the risks arising from crypto asset-related activitie.”

Also, there are no reasons to be ‘flexible’ to do with future challenges such as Decentralized Finance (DeFi), another spot that needs attention for being regulated in the state, says the report.

The review concludes that to have engagement in deploying policies and regulations for crypto-favored areas, U.K. must join the group of international regulators, Global Financial Innovation Network (GFIN).

The U.K. Treasury has announced a consultation worldwide that started in January to depict the regulatory experience approached digital currencies and stablecoins. The program is still accepting feedback till March 3.

U.K. commissions have been aggressive to crypto trading and investments so far. On January 6, derivatives and exchange-traded notes sale was shut down by Financial Conduct Authority (FCA) which alleged the products ill-suited due to the potential harm they pose.

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Author: James W

Bitcoin Lending Grew Nearly 12x; Only Accounts for 0.15% of the $20T Total Collateral Market

There is also growing demand for Ether among traditional actors entering crypto lending with ultra-high-net-worth individuals, corporations, traditional hedge funds, and family offices wanting to enter the market looking to generate excess yield on idle cash.

Total active collateral in the Bitcoin lending markets has grown from $1.9 billion in Q3 2019 to a whopping $24.3 billion in Q4 2020, reveals the latest joint report by Arcane Research and crypto exchange Bitstamp.

The crypto lending market is simply flourishing, but it has a long way to go with the collateral markets’ current size estimated to be $20 trillion, providing a huge potential for bitcoin as collateral.

Over 400,000 BTC are estimated to be used as collateral for Bitcoin-backed loans today, doubling over the last year, reads the report. It is particularly used to leverage up and buy more crypto for arbitrage, market-making, tax deferment, and the need for fiat and miners covering costs.

The interest rate on Bitcoin deposits is currently high at 6-10%, which is expected to decline as more BTC are collateralized, and the crypto sector grows.

In total, 625,000 BTC, approximately $30 billion, are used as collateral in the crypto market today, based on estimations of collateral held in the derivatives market and tokenized BTC in DeFi. Still, bitcoin collateral only accounts for 0.15% of the total collateral market, which is growing rapidly, states the report.

image1

Arcane Research expects further growth in the BTC lending market, which could be “very bullish” for Bitcoin as it allows users to employ their cryptocurrency to serve their everyday fiat-needs, without requiring the hodlers to sell and realize profits.

Bitcoin, which can be transferred around the world instantly, at almost no cost, is a superb collateral asset because it is without both counterparty risk and credit risk, reads the report.

Institutions are just as interested in the crypto lending market, with institution-focused Genesis seeing a YoY growth of 245% in their outstanding loans.

One of the market-leading companies in the lending market, Genesis has seen incredible growth over the past year. Their outstanding loans surged to $3.8 billion in Q4 of 2020, a roughly 80% growth from Q3.

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The company further processed nearly $20 billion on loans last year to institutions only, “showing tremendous demand for traditional actors entering crypto lending.” In Q4, the company also pointed to the inflow of institutional lenders as well with ultra-high-net-worth individuals, corporations, traditional hedge funds, and family offices wanting to enter the market for the first time looking to generate excess yield on idle cash.

But it isn’t only about Bitcoin; there is also growing demand for Ether among institutions. There has been a steady increase in ETH loans outstanding, which grew 177% during the last three quarters of 2020.

Like BTC, this growth was attributable to ETH’s price inflation, the biggest reason was tied to in-kind placements in Grayscale’s Ethereum Trust, according to Genesis.

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BlockFi is another company leading in crypto lending with over $4 billion in outstanding institutional loans. According to the report, BlockFi’s internal numbers show that the company is a clear competitor to Genesis on the institutional side.

In 2020, BlockFi processed $18.6 billion in loans to its institutions and private clients, and by the end of the year, it had $4.4 billion in outstanding institutional loans. These clients aren’t just based in the U.S. either, just 60%, but spread across the world — 25% in the Asia-Pacific and the last 15% are based in Europe.

Other notable competitors in this sector are Celsius which processed over $8 billion in loans, Nexo which has over 1 million users and shares profits with its token holders, and Nebeus, which was one of the first movers in 2014.

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Author: AnTy