OpenSea Bug Transfers Tokens to Burn Addresses, Over $100K Worth of NFTs Lost

OpenSea Bug Transfers Tokens to Burn Addresses, Over $100K Worth of NFTs Lost

Despite the success of the crypto market, the sector has found it hard to shake off the constant security issues that plague the industry.

This week, the non-fungible token (NFT) space got a brutal reality check after NFT marketplace OpenSea was hit by a bug that destroyed multiple tokens.

Burning Tokens Without Permission

On Wednesday, Nich Johnson – a lead developer on the Ethereum Name Server (ENS), announced on Twitter that he had accidentally “burned” the first ENS ever registered. The developer explained that he had tried to transfer the ENS – named “rilxxlir.eth” – to one of his personal accounts.

While Johnson had planned to offer the ENS as an NFT through PaperclipDAO, it would have been impossible to do this until he transferred the ENS as an ENS account held the name. The developer moved to OpenSea to process the transfer, where he discovered a glitch in the marketplace’s code.

Rather than send the ENS to Johnson’s address, OpenSea sent the NFT to a burn address-never to be seen again. OpenSea has reportedly patched the issue, but not before it affected 32 other transactions – involving 21 users and 42 traded NFTs. At the time of his tweet, all NFTs affected were collectively valued at 38.44 ETH.

“It transpires I was the first and apparently only victim of a bug introduced to their transfer page in the past 24 hours, which affected all ERC721 transfers to ENS names. Ownership of rilxxlir.eth is now permanently burned,” Johnson said.

Not the Best Time for OpenSea

The transfer glitch on OpenSea is quite disturbing, considering how important the marketplace is in the sector. But this was expected considering their staffing problems. In late August, the company’s head of product, Nate Chastain, posted that they had been severely understaffed, with only 37 people processing 98 percent of all NFT volumes.

OpenSea’s careers page also shows various open positions, from business development officers to finance professionals and full-stack engineers. Chastain added that OpenSea is looking to expand its team to take the stress off its existing workforce.

The company’s security flaws and staffing issues are also coming at a bit of a challenging time, with competitors now coming into the market. This week, top decentralized exchange and derivatives trading platform FTX launched a native NFT marketplace on the Solana blockchain.

As the company explained, the NFT marketplace is exclusive to American customers, and it will enable users to buy, sell, and mint NFTs. All tokens are tradable across the Etheruem and Solana blockchains, with deposits and withdrawals coming in the next few weeks. The deposits and withdrawal feature will essentially allow users to deposit external NFTs on the platform too.

Top crypto exchange Binance also launched an NFT marketplace in June. The company is looking to reduce transaction costs, and it will be based on the exchange’s blockchain infrastructure.

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Author: Jimmy Aki

“DeFi is Inevitable,” 4Q20 Recorded 100k New Addresses Daily: ConsenSys Report

“DeFi is Inevitable,” 4Q20 Recorded 100k New Addresses Daily: ConsenSys Report

“This year Ethereum proved that an entire decentralized financial (DeFi) ecosystem is inevitable,” reads ConsenSys’ DeFi 4Q20 report.

While this gained momentum last year, with all the drama surrounding the retail traders pumping up the prices of heavily shorted stock prices and now being suspended from trading them on Robinhood, a popular trading venue among retailers and other platforms are working on taking this moment forward in speed this year.

After the DeFi sector heated up in Q2 and cooled down in the subsequent quarter, Q4 saw its rise yet again. By the end of this quarter, 1,195,000 unique Ethereum addresses interacted with DeFi protocols, more than doubling in the quarter. Moreover, on average, 100k new addresses were created daily in Q4 2020. Custody providers and professional traders are also increasingly seeking exposure to the sector. The report states,

“With interest rates on trading pairs or lending protocols in the range of 5-12% APY compared to US treasuries at 0.92% yield, it’s easy to see the appeal.”

So much activity had an obvious effect on the fees, which saw “tremendous growth.” Besides the team, these fees also go to the uses of the applications.

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During this period, stablecoins, which are essential to the rise of DeFi, also continued their success. 70% of all the stablecoins worth $20 ln as of Jan. 1, 2021, are issued on Ethereum only.

Interestingly, “stablecoins are now responsible for more trade volume on Ethereum than the asset that pays for computation — ether (ETH) — itself,” at almost $1.6 trillion, notes the report.

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DeFi is also attracting other blockchains, and by the start of 2021, more than 138,774 BTC (about $3.9 billion) has been converted to ERC-20s.

The report also covered the growing trend of NFTs, whose marketplace value is estimated to be $52,293,650.

Despite all this growth, “DeFi is still in its infancy as an industry” and has a huge room for growth with “many new innovations just on the horizon that will further increase the accessibility and variability of DeFi.”

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Author: AnTy

Monster Expiry: $100k Bitcoin Options Expiring This Friday

Monster Expiry: $100k Bitcoin Options Expiring This Friday

With a notional value of more than $3 billion, this will be the biggest expiry Deribit has seen to date, which in the light of the growing options market, will impact the spot market as well.

A record amount of Bitcoin options contracts are expiring on Jan. 29.

This monster expiry of 100k Bitcoin options contracts at a notional value of more than $3 billion will be the biggest expiry crypto derivatives platform Deribit has seen to date. However, the “uber bullish 29 Jan 52k strike needs the spot rate to advance for it to have any meaningful impact on the rest of the market; otherwise, it will decay to zero and have no delta impact,” noted Denis Vinokourov of Bequant.

The price of Bitcoin is currently seeing greens on the first day of the week, trading around $35,000. It’s to be seen if BTC will continue higher or range further after lack of momentum for two weeks following about a 30% pullback to just under $29k.

“As options become more influential in crypto, I expect increased volatility around expiry dates,” says trader AltcoinPsycho who anticipates deeper wicks in the days leading up to Jan. 29th expiry.

Interestingly, the pullback didn’t shake the market as only 61 contracts changed hands earlier last week.

“At current price levels, hedging large option notionals has a major impact on price,” noted trader and economist Alex Kruger.

Increased Institutional Interest

On Monday morning, open options contracts were worth around 250,440 Bitcoin with Deribit, which began offering the products in 2018, accounting for the majority 87.74% of it, as per Bybt. Options basically give the investors the right, not the obligation, to buy or sell the underlying asset at a specified price within a time period.

Interest in Bitcoin options has risen sharply over the past few months as the Bitcoin price broke past its previous ATH of $20,000 to climb to a new all-time high of $42,000 earlier this month.

In late June 2020, OI on bitcoin options contracts was a mere 147k BTC that surged to 265.81k BTC on Dec. 23, which was hit again just last week. The highest open interest of just over 21k BTC is for Bitcoin call options with a strike price of $52,000.

Given that Bitcoin options volume has exploded, from $4.1 billion in July 2020 to $15.36 billion in Dec. and already doing $23 bln in January, so far, the expiry can affect the spot market as well.

“It reflects just how volatile [Bitcoin] has become, even by its own standards, over the last couple of months,” said Craig Erlam, market analyst at Oanda. “The moves we’re seeing on a daily basis now are incredible, so it’s natural that options are being more utilized.”

Due to the complexity involved in options trading, it also indicates how much-sophisticated investors are involved in trading BItcoin. Also, the more institutional adoption, the more futures, and options volumes’ will grow.

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Author: AnTy

Largest TopShot ‘Moments’ NFT Sale Fetches $100k; Available on the Internet for ‘Free’

Largest TopShot ‘Moments’ NFT Sale Fetches $100k; Available on the Internet for ‘Free’

NFTs are going off, and the latest sign of it was the largest TopShot sale.

Over the weekend, the digital basketball cards sold like hot pancakes, with two of them at a whopping price of $100,000 each.

Last week, FantasyLabs co-founders Jonathan Bales and Peter Jennings bought a Ja Morant highlight off NBA Top Shot, a Dapper Labs product, for $35,000.

Launched in July 2019, NBA Top Shot is an NBA-licensed product that lets users purchase digital packs of cards (or “moments”) that can be instantly bought and sold through a marketplace.

Bales’ called this “the deal of the century… for the low, low (record-setting) price of $35k.”

Talking about his “Investment Philosophy,” Bales explained the motive behind spending $35k on a video that can be found all over the Internet for free. For Bales, when it comes to sports trading cards, they are “fine art” and a “player stock market.”

And the reason is the same as an “art collector might want to buy one Picasso as opposed to 100 paintings from lesser-known artists.” He wrote,

“If you believe physical trading cards have value, then you absolutely must recognize the value of digital assets; if you don’t, you’re being stubborn and/or short-sighted.”

This is because, unlike physical trading cards, digital cards are provable, unfalsifiable, make fraud mathematically impossible, scarce (having a serial number), and have a transparent and liquid market.

“Gold is to Bitcoin as physical trading cards are to NFTs,” said Bales, who believes NFTs tokens have two purposes to “generate verifiable scarcity and ownership.”

Given his interest and conviction in NFTs, Bales believes “NFTs are the future of collecting” and predicts the consensus shift on digital items from “these are worthless and not real” to “this is the best way to prove ownership, scarcity, and authenticity.”

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Author: AnTy

Bitcoin at $300,000 Options Contract Added on Deribit for EOY

Bitcoin at $300,000 Options Contract Added on Deribit for EOY

Forget 100k, $150k, or even $200k; the market now wants to bet on $300,000 per BTC by the end of this year.

On Friday, cryptocurrency derivatives platform Deribit announced the addition of the latest Bitcoin options contracts at a $300k strike price with an expiry of December 2021.

This new addition came right on the heels of ETH options contracts with a strike price of $10,000 by the end of this year.

Last month, the platform announced that its traders could also bet on Bitcoin at $100k, $140k, and $160k and ETH at $5k.

Bitcoin reached a new peak at nearly $42,000 on Friday to reach a market cap of about $780 billion. ETH has also surged to $1,290 to achieve an all-time high market cap of just over $152 billion.

Recording $2.54 billion in trading volume in Bitcoin futures, Deribit has about $920 million in open interest. In the Bitcoin futures market, CME leads with $2.30 billion in OI, followed by Binance at $2.08 billion OI and $25.80 billion in volume.

In the light of ongoing money printing going all over the world, more and more institutions turn to Bitcoin as a hedge against dollar weakness and resign inflation risks.

“The more that people perceive that their assets, particularly their liquid assets such as fiat currencies are eroding in value, the more they will look for alternatives,” said Geoffrey Morphy, president of Canadian crypto mining company Bitfarms Ltd.

Besides strengthening its position as a store of value (SoV), the world’s largest digital asset is seeing “more usage” as a payment rail by recording more in total transaction volume, as seen in 2020, than that of Venmo, PayPal, or Apple Pay, Anthony Pompliano, co-founder of crypto hedge fund Morgan Creek Digital told CNBC’s “Street Signs Europe.”

“Bitcoin is transitioning from what used to be a contrarian idea or a contrarian trade to a consensus trade. I think that’s where you’re getting this re-pricing of the asset and the rapid price appreciation, as more and more folks on Wall Street come into the asset and want exposure.”

Anthony Pompliano

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Author: AnTy

With So Much Liquidity on the Sidelines, Bitcoin could Hit $100k This Year: Mike Novogratz

With So Much Liquidity on the Sidelines, Bitcoin could Hit $100k This Year: Mike Novogratz

Both Bitcoin and gold will go higher, said billionaire Mike Novogratz, the chief executive officer at Galaxy Investment.

Amidst the ongoing inflation expectations and other uncertainties in this market, “both gold and Bitcoin are going a lot higher, but gold could easily go up 30% this year,” said Novogratz in his interview with Bloomberg.

With things moving too fast in the market, Bitcoin has seen an uptrend of 113% since Dec. 11 to hit a new ATH at $37,700, it is difficult to pick a top. But these manias also means that Bitcoin could easily be “20% of gold,” Novogratz said adding,

“There is so much liquidity on the sidelines that a lot of people were hoping for a pullback on this. And you saw it lasted for about two hours and put right up. It’s why Bitcoin continues to go up every day.”

This is because “the Fed has made a commitment to keep rates at zero and to continue to buy quantitative easing for three years. And so it’s creating a bubble,” he said.

According to him, everything that keeps Chairman Powell keeping the money supply running as fast as it is is good for the markets which involve Democrats taking more seats in the Senate that comes with one of the big expectations of inflation.

As for Bitcoin hitting $100,000, Novogratz feels we can get there this year, “if we continue to see this kind of momentum.”

The Supply Crunch

With Bitcoin, the unique thing about it is that in most assets and commodities if the price goes up there’s a supply response. In the case of oil, if its price goes up we start drilling for oil all over the world, even in gold which has a limited supply if the price goes up, we spend more money on mining, explained Novogratz.

However, in the case of Bitcoin, there never will be more than 21 million BTC, no matter how high the price goes. He said,

“So we have this giant supply-demand imbalance where now institutions say dammit I can’t believe I don’t own Bitcoin yet. Insurance companies are buying it. Asset managers are buying it. High net worth people are buying it. And there’s not a lot of supply.”

But Novogratz believes “gold is going higher.”

The yellow metal is currently trading around $1,920 after reversing the downtrend on Nov. 30 that started once the bullion hit ATH at $2,050 in August last year.

And this is because “we are certainly in an acceleration of the worry about the basing of fiat currencies,” — it’s central banks printing money with 75% of all the dollars in circulation printed in the last 10 years, he said adding,

“That’s an incredible statistic. It broadly means that you know four times as many dollars as we did 10 years ago. That’s driving asset prices. And so this has hit this acceleration point.”

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Author: AnTy

BitMEX’s Operator HDR Global Grants $100k Towards Bitcoin Core Development

BitMEX’s parent company HDR Global Trading Limited has awarded $100k to the Bitcoin core developer Michael Ford. This will be the second grant towards Ford, last year in May the firm awarded a similar grant of $60,000 for the same 12-month period and the current grant will replace the old arrangement and support his work for another 12-month period. It is also important to note that HDR has made no conditions for the grant and is only doing so to support his work as a Bitcoin core maintainer.

Ford started contributing to the Bitcoin Core in 2012 and became a Bitcoin Core maintainer last year in June. Bitcoin Core is the only open source community which enjoys diverse support from all corners of the crypto community, both in terms of funding and development. Not so long ago, BitMEX Research released a report on the diversity of development on the different crypto communities where Bitcoin emerged as a clear winner.

The Recent Donation From HDR Suggests Their Commitment Towards Bitcoin Development

HDR Global’s continuous support for the Bitcoin core development and maintainer reflects their commitment towards keeping Bitcoin network moving and making it better with each passing year. The fact they have not put any pre-conditions towards the grant shows their confidence and their long term goals. Not only Bitcoin Core maintainer Ford, HDR also made a donation towards MIT Digital Currency Initiative in 2019 as well to assist their development work. The firm said,

“We would like to emphasize that our commitment to open source Bitcoin development is for the long term and we look many years ahead when making these funding decisions.”

Along with the grant, HDR also released a template grant contract to ensure transparency of the process and a promise to continue their support for such development work.

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Author: James W

Popular Analyst PlanB says Bitcoin will “Overshoot $100,000” by Dec. 2021

  • S2F predicts $100k May 2020-2024 average
  • $50k is a “more conservative” figure, Bitcoin price will be above and below $100k but will always go back to the S2F model line, “like the drunk and his dog”

Bitcoin is having a good year having spiked over 33% in 2020 to date. We are currently trading near $9,850, very close to touching the $10,000 level.

Arcane Research points out how the historical trend predicts $11,900 as the BTC value, meaning we are still 20% away from that. However, the popular stock-to-flow model is almost aligned with the current price.

Although the long-term growth trend targets a way lower price of around $13,000, the S2F model predicts bitcoin price at about $100,000.

$100k is May 2020-2024 average

Popular analyst PlanB who first used the Stock-to-flow model to determine BTC price says people misunderstand that the S2F model predicts BTC price at $100,000 by May 2020, the month of bitcoin reward halving.

Previously, on a podcast, PlanB said this new all-time high which will be 400% higher than the 2017 bull run at $20,000 is expected to hit by Dec. 2021.

S2F actually “predicts $100k May 2020-2024 average, like the chart shows,” clarifies PlanB.

2020-2024 will be basically on average $100k in the same way 2016-2020 was on average $8,000.

BTC price follows S2F model like the drunk and his dog

In a Tweet, he further clarified how the first article he wrote in early 2019, the price predicted was $55,000. “The original model on monthly data (Mar22) says $55k, but a new model on yearly data $100k. Your choice,” explained the analyst.

$50k is a “more conservative” figure for the price but in his personal opinion, PlanB believes “We will overshoot $100k (and undershoot after ath).” Bitcoin price will basically be above and below this level but always eventually will go back to the S2F model line, “like the drunk and his dog,” he said.

And If Bitcoin is unable to do that, the analyst said, the model will be false.

USD will be the one that will fail

If the Bitcoin price’s cointegration breaks with the S2F model, the model will be falsified, however, PlanB says it’s hard to predict when that will be the case. Dec 2021 he said, “is an estimate (for easy communication) (…) until something better comes along.”

“Eventually all models are replaced by better ones,” but the analyst believes it would be the fiat, US dollar that will fail as “it makes no sense to have Zimbabwe like debasement risk in a next gen global economy.”

“Zero flow and infinite S2F/value is in 2140 .. in 120 years. Long before that, USD will break (model is BTCUSD). Also, I would be happy if the model predict next 1, 2 maybe 3 halvings (i.e. 10 yrs),” he further explained.

So, Bitcoin is just getting started and it’s not too late to jump on the BTC train as we have a really long way to go.

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Author: AnTy