Too Afraid to Buy the Dips; Too Much FOMO to Resist Buying ATHs

12 years back, Bitcoin first came into existence with the genesis block having a reward of 50 BTC. The genesis block came with the text “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”

In 2020, history repeated itself as central banks all over the world went crazy with money printing. This led institutions to see Bitcoin as a hedge against weak dollar and risk of inflation, making it part of their investment portfolio.

The unprecedented institutional interest in the crypto market had Bitcoin rallying to nearly $35k from the March low of 3,800.

Even at this record high price level, Anthony Scaramucci, the founder of SkyBridge Capital, which today announced its Bitcoin Fund, urged people to invest in it. “You’re still way early to Bitcoin if you’re buying today,” tweeted Scaramucci on Sunday.

“When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there’s two big elements driving it. One is the continuous entry of institutional players,” PwC’s global crypto leader Henri Arslanian said Monday on CNBC’s “Street Signs Asia.” These institutional players have “an outsized impact on the markets.”

Arslanian who expects this trend to continue over the coming months said, there’s also “a lot of regulated players as well,” which was “not the case a couple of years ago.”

Combined with retail FOMO, “there’s a lot of momentum going on in the space.”

As the price continues to go higher and higher, people continue to feel the FOMO as Douglas A. Boneparth, CNBC Advisor Council tweeted, “Instead of drinking coffee and eating avocado toast every day, I should have been buying bitcoin.”

This can especially be seen in the way the market moved in the last few hours.

Bitcoin’s price BTC -3.41% Bitcoin / USD BTCUSD $ 31,558.08
-$1,076.13 -3.41%
Volume 82.36 b Change -$1,076.13 Open $31,558.08 Circulating 18.59 m Market Cap 586.69 b
2 h Why Does Bitcoin (BTC) Continue to Tear Up Without Ever Stopping? 3 h Ethereum Blockchain Becomes Absolutely Unusable Yet Again as Average Fees Hits ATH at $20 4 h Anthony Scaramucci’s SkyBridge Capital Launches Institutional-Grade Fund to Directly Invest in Bitcoin; Offers GBTC Swap Too
went to $34,825 on Sunday on Coinbase and today we went down to $27,648 and already we are above $31,000.

The same has actually been the case with the second-largest cryptocurrency Ethereum ETH 13.21% Ethereum / USD ETHUSD $ 1,036.04
$136.86 13.21%
Volume 59.1 b Change $136.86 Open $1,036.04 Circulating 114.12 m Market Cap 118.23 b
3 h Ethereum Blockchain Becomes Absolutely Unusable Yet Again as Average Fees Hits ATH at $20 4 h Too Afraid to Buy the Dips; Too Much FOMO to Resist Buying The All Time Highs 6 h ETH Rips to Jan 2018 High As The Market Rotates Bitcoin Profits into Ethereum
which took just over a day to go from $750 to $1,170 only to fall to $885 to now be back above $1,000.

Even YouTuber Marques Brownlee, best known for his technology-focused videos and his podcast, Waveform: The MKBHD Podcast, took to Twitter to share his interest in buying in Bitcoin and missing out with the price continuing to keep on going higher and higher.

image1

But still, with bitcoin adoption reaching only 2%, a huge population is on the sidelines and institutions have just started coming in.

Just last month, the day BTC broke its previous ATH $20k China’s mainstream financial outlet, Caijing ran a survey on Weibo asking people’s position on Bitcoin which revealed that 11k out of the 20.8k participants responded with “Such a scam, will never buy” while 3.1k said they might buy later.

This only goes on to show that this bull cycle is still in its early phase.

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Author: AnTy

PayPal Customers Bought the Dip on Bitcoin & Crypto

The losses that came late Thursday night was the biggest decline since the March sell-off. However, the largest cryptocurrency is still up 135% YTD with its investor base widening who are turning to it in search of a hedge against dollar weakness amidst loose monetary policy.

As we reported, just this week, VanEck launched a physically-backed Bitcoin ETP on the Deutsche Boerse Xetra exchange.

With PayPal diving in, the retail investors are piling in to chase the momentum. The volume on ItBit, the exchange service of Paxos, exploded on Nov. 26. BTC/USD accounts for over $50 million in volume.

ItBit Trading Volume

“It continues to attract both institutional and retail attention as a 21st-century substitute to the gold play,” said Byron Goldberg, who runs the Australian operations for crypto exchange Luno.

Just Noise Against the Larger Bullish Trend

The decline in prices, which has the market in distress even today, as BTC/USD trades under $17k, was exacerbated by unsustainably high leverage. Trader and economist Alex Kruger noted,

“Too many greedy longs bought the top on leverage, and made the price very vulnerable.”

This started soon after the market made a new 2020 high at nearly $19,500. The choppiness in the market is in part due to the Thanksgiving holiday in the US. Another reason could be the expiry of 78k Bitcoin options today. Shane Oliver, Head of Investment Strategy at AMP Capital Investors Ltd. in Sydney said,

“After big rallies in shares and various other assets, they are all vulnerable to a bit of a pause.”

“But Bitcoin more than most, as it surged higher far more and had become far more frothy with speculative interest.”

However, the market is showing resilience as any dips were almost immediately absorbed, making it a bullish dumping. Kruger said,

“I’m bullish. This correction represents noise against the larger bullish trend.”

“The steep contango structure that prevailed up until now finally narrowed,” said Denis Vinokourov of Bequant.

“Only time will tell whether this is the beginning of a longer and more extensive correction, but the overall market structure is very different to the last time Bitcoin traded near these levels. As such, the base scenario remains intact for now.”

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Author: AnTy

Risk Aversion in Effect: Losses Recorded Across Bitcoin, DeFi, Stock, & Gold Market

Bitcoin’s red hot rally came to stop on Wednesday when the price of the digital asset dropped just under $13,000. Today, the top digital currency is rebounding, currently at $13,450.

The sell-off, however, wasn’t confined to the crypto market alone and was seen in other markets as well. As a matter of fact, stock markets have been having a rough week as they continue to extend the losses.

Fueled by concerns over tougher coronavirus-related lockdowns and the upcoming US presidential election, stock markets had its worst decline in months. Since Monday, S&P 500 has fallen 5.6% and Dow Jones Industrial Average slid 6.4% with the tech-heavy Nasdaq only suffering 4.6% losses. Edward Moya, a senior market analyst at Oanda Corp said,

“This broad, risk-aversion-trading session is triggering widespread panic selling, which is seeing every risky asset, like gold and Bitcoin, really start to plummet.”

Profit Taking to be Expected

Bitcoin was inches away from hitting the 2019 high of $13,900 when the losses came but interestingly BTC is right where it was the day before the fall.

According to Bloomberg, Bitcoin’s 14-day strength index reading jumped above 70, signifying it to be overbought.

“I think that $14,000 is a very key threshold,” said Moya. “Once that level is taken out, there is going to be a lot more upside here.”

But the crypto community is not concerned about the decline, it is natural after the more than 21% rally. Also, with $14k being the big resistance before hitting an all-time high, people are seeing it as an opportunity to just buy the dips before we moon. As Mike McGlone, a strategist at Bloomberg Intelligence has been saying,

“Something unexpected has to reverse increasing adoption of Bitcoin as digital store-of-value such as gold, or the price has few options but to rise.”

In Capitulation, Still More Pain Ahead

Besides Bitcoin and the stock market, gold also went down to the $1,870 level while the US Dollar took this opportunity to strengthen above 93.5.

However, according to one trader, USD remains “macro bearish” which “in the big scheme of things this is good for BTC however we will have dips along the way.”

Altcoins also went down hard, following the leading digital currency and according to analyst DonAlt is in “capitulation.” He said,

“If this move down on all altcoins keeps going for a couple weeks and starts getting ridiculous I think we might be able to finally find some sort of medium-term bottom.”

As for DeFi, they have been experiencing correction since last month and continued their descent. Even the popular ones, YFI and Aave that looked to capitulate are making new lows. Now SNX has also joined the falling tokens where UNI continues to bleed due to its supply issuance. Quant trader Qiao Wang said,

“I constantly update my views and unfortunately it looks like there’s going to be more pain in DeFi. Originally I thought we won’t see a 80-90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”

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Author: AnTy

Bitcoin Average Transaction Fees Jump 188% to Above $10 Following Price Rally

Bitcoin’s price is experiencing a bullish month with over 25% gains and came very close to hitting 2019 high yesterday.

Currently, BTC is trading around $13,220, having dropped over 4% since rallying yesterday, on the back of the increased trading volume, which has climbed above $3 billion.

This latest bout of volatility is not only proving good for investors, traders, and speculators but also miners as the percentage of Bitcoin miner revenue from fees increased to 22.25% yesterday — the highest value since January 2018.

This is because the average Bitcoin transaction fee has spiked 188% to above $10, as per Bitinfocharts.

The total fees have also jumped to 2.67 million from $403k on Oct. 17.

Coin Metrics BTC Fees
Source: Coin Metrics

Just last week, the average fees were mere $1.4, and from there, as the price of bitcoin rallied and the market jumped in to participate in this euphoria, the activity increased, and so did the fees.

The last time we were at this level was in February 2018, while the all-time high was $55 at the top of the bull market in mid-December 2017.

A similar surge is not seen in transaction count, but a spike was recorded in transaction transfer value.

However, with the latest surge, Bitcoin’s average transaction fee is eclipsing ETH’s at $1.69. Ethereum’s average transaction fees were higher than BTC’s for most of September after it exploded over the summer due to the rapid rise of DeFi.

But the momentum has shifted back to BTC.

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Author: AnTy

Kanye West and Kevin Hart Gives Bitcoin (BTC) a Shout Out

Over the weekend, Bitcoin got a shout out from two celebrities. The first one came from Kanye West, who appeared on Joe Rogan’s popular podcast for a three-hour-long episode.

The famous rapper and designer who is also running for president said bitcoin proponents are the ones that have the idea about the “true liberation of America and humanity.”

He said before the coronavirus pandemic hit, Bitcoin proponent Jack Dorsey, whose company Square bought $50 millions of BTC, decentralized Twitter “because he was talking to the Bitcoin guys” who has the perspective on what liberation and humanity will be.

He further added that “specifically these guys, but a lot of the tech guys,” have been able to use these new information highways to create a “new frontier of our existence.”

This isn’t the first time that West has discussed Bitcoin. In 2018, in an interview with Charlamagne, he said he sees the leading digital currency as a place to put money in as the style of $20 reminds him of slavery.

This time, while it was all he had to say about Bitcoin, he said the political system and banking system are racist. Also, he plans to sell his extremely expensive shoes for just 20 bucks because “money isn’t real, so that means that the world should be eventually free.”

Another shout out came from comedian Kevin Hart, who called Bitcoin and Ethereum “voodoo money” while hosting a charity fundraiser. But only to add that he would accept them.

During the live-streamed Muscular Dystrophy Association’s telethon that Hart has been hosting, actor Jay Ellis asked him if the charity accepted donations in “Bitcoin, Ethereum, or any other cryptocurrencies.”

“I don’t take voodoo money. We don’t take the voodoo,” replied Hart but then corrected, “I’ve been told we do actually take cryptocurrency. I’ve been told it’s a legitimate investment.”

Amidst this advertisement, Bitcoin’s price remained strong, currently trading above $13,000, since hitting this level last week for the first time in 13 months.

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Author: AnTy

Biggest News of the Week: Going Mainstream or A Sacrifice in the Name of Pump?

This week, the big news came in the form of PayPal announcing support for cryptocurrencies.

Not only the payments company would allow its users to buy, sell, and hold crypto, but soon it will also allow the users to shop at its 26 million merchants using crypto.

For now, Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) are the ones supported directly within the PayPal digital wallet.

“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” said Dan Schulman, president, and CEO of PayPal.

As reflected in the price of Bitcoin surging past $13,000 to a new 2020 high, the market was elated. The other three digital assets had a good time with gains.

First Thing First

Why was this particular set of cryptos selected?

These crypto are actually among the digital assets approved by the New York State Department of Financial Services, and the NYDFS has granted PayPal a first-of-its-kind conditional Bitlicense.

Other coins approved by NYDFS for listing include Binance USD (BUSD), Gemini Dollar (GUSD), Paxos Standard (PAX), and Pax Gold (PAXG). Ethereum Classic (ETC) and Ripple (XRP) joined these cryptos in approval for the custody list.

Now, some feel by adding altcoins, it has just become another ‘exchange listing pump’ phenomenon.

“New bullish catalyst will be which altcoin Paypal lists news. They will be the Coinbase listing of 2020 and 2021,” noted one trader.

As a matter of fact, the company could really be setting the stage for its own dollar-pegged digital currency to “reduce their dependence on the correspondent banking system and other card networks,” as Facebook is doing with Libra, said Meltem Demirors, the chief strategy officer at CoinShares.

Bullish AF

PayPal news was met with excitement; the market celebrated it with gusto, seeing it as a sign that other institutions now would have no choice but to follow suit.

“We knew crypto trading on PayPal was coming, but to also enable crypto use for shopping at its 26 M merchant network is huge. Also, with PayPal and Venmo in the fray, every Fintech firm will now follow,” said a partner at the crypto fund, The Spartan Group.

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“If you liked the recent PayPal and Revolut launches, you’ll love the dozens of neo-banks and fintech teams currently scrambling to figure out what their “crypto strategy” is,” said Arjun Balaji.

In terms of exposure, “PayPal is bullish AF,” as the company has 487 million userbases while the bitcoin network currently has only 187 million total on-chain participants (23.4 million on-chain holders plus 101 million exchange users).

But is it Really?

While the digital asset price remains in bullish momentum, it didn’t take much time for the excitement to die down in the market.

Some even called this rally, “insiders frontrunning the PayPal news,” while others think it just “the most bullshit cope.”

For starters, PayPal has been merely playing catch up, and Bitcoin is the one providing PayPal an alternative to central banks – “archaic inflationary political central bank monopolies.”

The real caveat is that merchants won’t be receiving payments in virtual coins. But the biggest issue has been taken with the fact that PayPal doesn’t allow the cryptocurrencies in its account to be transferred to other accounts, on or off PayPal.

“So, this is all a big PayPal nothing burger, just entries in a central PayPal database, nothing to do with bitcoin,” said analyst PlanB.

Popular hardware wallet Trezor also said: “You shouldn’t use PayPal” because ‘not your keys, not your coin’ as Paypal doesn’t provide the private key of the crypto holdings.

Not only its ex-CEO Bill Harris called Bitcoin “the greatest scam ever,” but PayPal is also known for “stifling competition and preventing users from ever withdrawing their cryptocurrency to the safety of a wallet they control the keys to,” wrote Trezor in a blog post.

Amidst this hard criticism against PayPal for restricting self-custody being “objectively bad” and “necessary for Bitcoin to succeed,” others argue that this was exactly how Square’s Cash app started out, and eventually, it opened up.

“This is a great way for a risk-averse firm to offer its customers exposure to Bitcoin without worrying about “travel rule” compliance,” said Jerry Brito, executive director at crypto think tank Coin Center.

“In all fairness to PayPal, those features may come later,” tweeted Weiss Crypto Ratings.

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Author: AnTy

YFI’s Andre Cronje Re-Confirms He’s Not Quitting DeFi and ‘Still Building’

Popular Yearn.Finance creator Andre Cronje came on Twitter after a 10-day hiatus to deny the reports of him leaving the project.

“Still here. Still building. Nothing has changed. Anyone that says otherwise fuck off. I’m just done tweeting and being on social media,” tweeted Cronje.

The clarification came after CoinDesk reported that Cronje is quitting DeFi, and other employees have taken over the project.

Before this, there have been rumors floating in the market about him quitting the project, with some team members saying that is not the case.

“I’m not building anything at all anymore,” he reportedly told the publication earlier this month.

“I do it because I’m passionate, but if people are going to use my test environments, then lose money, and then hold me liable, it means there is 0 upside and only risk for me.”

This has been concerning Cronje’s other product Eminence.Finance rug pulling $16 million.

This isn’t the first time such a thing has happened. In August, Cronje had told another publication that he is quitting DeFi, after having similar thoughts in February this year, only to change the course as he said he won’t leave the space and will continue to build.

On Friday, the price of YFI found its bottom just under $12,300 to rally above $19,500, but today, the price went down to $16,880 before making its way above $17,300 to only fall back down to the current price of $16,630.

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Author: AnTy

Here’s Why Bitcoin Is A Better Bet Than Gold & Even Stocks

Bitcoin again came close to hitting $12,000 yesterday but failed to do so and currently trades around $11,785.

While the digital asset has been struggling to reach this level for a fortnight now, bitcoin’s gains since its March lows has helped crypto-focused hedge funds to navigate choppy markets better than their peers focused on bonds and stocks.

In these past seven months, crypto fund managers returned over 50% compared to low single-digit gains generated across traditional classes of asset. Last year, crypto hedge funds gained only 16%, but even then, it outperformed mainstream hedge funds, which were up 9%.

This rally is the result of bitcoin surging 60% for the year against the US dollar and up 215% since March sell-off.

A Lot of Upside Potential

Currently, everything from stocks to gold is enjoying a rally thanks to government policies. This is why even Warren Buffett has pivoted to gold — he has cut down his bank holdings and sold all the shares in Goldman with gold miner Barrick Gold being the only addition in Q2.

“Warren Buffett said he would never invest in gold. He did invest in gold miners because it made sense. Warren also said that he would never invest in Bitcoin. I am waiting for the day when Warren changes his mind on Bitcoin,” said Gabor Gurbacs, digital asset strategist at VanEck.

But according to veteran Wall Street fund manager Michael Novogratz, bitcoin is a better bet than gold.

Novogratz, who has about 25% of his net worth in BTC, says the digital asset is “harder to buy” than the traditional haven and, as such, a more worthy investment.

“It’s only got a $20 billion market cap, while gold is over $10 trillion,” he said, adding, “so it’s got a long way to go to catch gold in terms of just adoption.”

While Novogratz doesn’t recommend beginners to put in more than 1-2% of their money into the digital currency, London-based digital asset management firm CoinShare recommend investor to allocate 4% of their portfolio to the cryptocurrency because it is “in its growth phase (and) behaves like a tech stock.”

Increased Interest in Bitcoin

The prospect of strong returns over longer periods continues to draw investors, according to Michael Sonnenshein, managing director at Grayscale Investments, the $5.7 billion AUM crypto fund, which attracted $900 million of inflows in 2020, three times the entire 2019.

“Overwhelmingly, the inflows are coming from major hedge funds,” said Mr. Sonnenshein. “Conversations are being driven by zero interest rates, which is eroding the value of fiat currencies.”

The current environment of collapsing interest rates is also turning out to be good for Bitcoin with high stock price keeping pressure on dividend yields.

“There is no yield on crypto, but look at it this way: the floor in bitcoin is zero whereas in many traditional markets we now have negative rates and yields,” said Max Boonen, co-founder of crypto trading company B2C2.

The Bitcoin market has also been maturing; not only the volatility fell lower than stock markets this year, but price discrepancies on different exchanges that created arbitrage opportunities have faded.

In the past two months, Boonen, who is a former interest rates trader at Goldman Sachs, has been even approached by “blue-chip” names to run a crypto-dedicated for them.

“A number of very large traditional hedge funds are active in crypto, even if they don’t necessarily talk about it,” said Michael Bucella, a partner at BlockTower Capital.

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Author: AnTy

The Good and Bad of the Crypto Going Public

This week, big news came in the form of crypto businesses that are planning to go public either later this year or next year.

Crypto lender BlockFi is looking for a veteran financial professional (CFO) that could help the company “guide and position the finance team for late-stage investment, acquisition, and/or IPO.”

The company is looking for someone with over 15 years of experience as a corporate financial leader in public markets and financial markets. It further mentions in its job posting that the person also needs to have an IPO experience and scaling teams for SOX compliance and IPO ready.

BlockFi had a successful Q2 2020, and in the same quarter, the company hired former American express vice president, Wittney Rachlin to launch the bitcoin credit card that could come in the 4Q20.

In Q1 of this year, the company raised $30 million in a Series B funding led by Peter Thiel’s Valar Ventures along with Morgan Creek Digital, Castle Island Ventures, Arrington XRP Capital.

NYSE-backed Crypto Exchange

The other company planning to go public is crypto exchange Coinbase.

For now, the company is planning to file for an IPO with the SEC but hasn’t registered with the agency yet. It is, however, actively pursuing investment banks and law firms to assist with the process. The listing could come as early as this year or next year.

Interestingly, the NYSE is one of the exchange’s investors along with the likes of Y Combinator, Andreesen Horowitz, Union Square Ventures, and Tim Draper.

Coinbase was valued at about $8 billion during its last round of venture funding and had over 1000 employees and 35 million users in over 100 countries.

The good thing is they are not going the usual IPO route but DPO, which means they bypass institutions and banks and give retail the same access as everyone.

“The real irony is that, if they did a token sale, it would only be available to accredited investors,” commented analyst Ceteris Paribus.

An Opportune Time?

San Francisco-based Coinbase is a popular cryptocurrency exchange that has the highest amount of BTC balance, and no other exchange comes any close to it. It has been close to surpassing 1 million BTC in balance only to slide down after the March sell-off but remains above 900k BTC.

Founded in 2012, Coinbase has contributed a lot to the advancement of the crypto ecosystem. And the news of it going public that is taken as a bullish narrative by the market has come at a time when the market has been rallying amidst the COVID-19 pandemic.

The Fed is pumping in trillions of dollars, which is popping the prices of almost every other asset, from the share of bankrupt companies to the latest IPOs.

Lately, altcoins have also been surging, giving off the vibes of 2017, with many expecting it to be the start of an altcoin season. During the 2017 bull run, Coinbase boasted $1 billion in revenue.

But Coinbase also faces criticism in the bitcoin community for listing the “shitcoins” and not supporting projects that are bitcoin-related such as Lighting Network.

Not to forget, the tons of controversy that continue to surround Coinbase. Recently, it came under fire for selling its customer data to the IRS and DEA, the exact opposite of what bitcoin stands for — censorship-resistant.

So, it would be interesting to see how this IPO affects Coinbase and the market in terms of mainstream adoption and attracting new investors and institutions.

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Author: AnTy

Yet Another Balancer Attack for ‘Unclaimed’ COMP; DeFi Liquidity Provider to Reimburse Hack Victims

It hasn’t been 24 hours since the news about a $500,000 hack on Balancer came that a new attack has claimed $2,300 worth of the hot Compound tokens (COMP).

Hao, a hacker and engineer at DeBank, a DeFi wallet took to Twitter to share how this time as well, someone used Andreessen-funded dYdX to flash loan and drained, yes again, unclaimed COMP stored in several pools of Balancer, an automatic market maker.

The hacker explained that the contract flash loaned some tokens from dYdX to mint cToken from these funds. Then they Uniswap v2 to flash loaned some COMP.

The contract joined COMP/cBAT/cUSDT pool to trigger Compound to send unclaimed COMP to this balancer pool. After syncing COMP balance, the contract withdrew from the balancer at an advantage and continued to do the same for other pools.

After getting all the extra COMP, it repaid Uniswap and dydx and made an exit and swapped COMP for ETH in a normal Uniswap V2 trade.

However, @FollowTheChain said the “unclaimed COMP” is just a tiny fraction of COMP that has accumulated since the last movement of each cToken that happened a few minutes before.

According to Balancer Labs, this attack wasn’t like the one from yesterday either.

Amidst this came the good news, that Balancer Labs will be reimbursing all the liquidity providers who lost funds in yesterday’s attack.

It will also pay out the “highest bug bounty available” to Hex capital, who alerted about this vulnerability to balancer Labs in May.

“This is a major issue in crypto today – creating bug bounty programs and then ignoring the results + refusing to pay out. We need to do better,” said Hex Capital.

Market Unaffected

Yesterday’s attack involved two pools of the Balancer that contained deflationary tokens STA and STONK, tokens with transfer fees, worth more than $500,000 getting drained by a hacker.

The attack happened in two separate transactions which were 30 minutes apart. And only the pools with a token with transfer fees were affected by the exploit.

DeFi aggregator 1inch in its official report said the attacker was a “very sophisticated smart contract engineer with extensive knowledge and understanding of the leading DeFi protocols.”

Not only was he organized and prepared in advance but also used Tornado Cash, a privacy-focused Ethereum mixer, to get initial funds that hid his source of Ether.

It reported that the attack on one of the Balancer Pools was caused by a complex transaction that the hacker sent to the Ethereum mainnet. Then, with another transaction, the hacker drained another Balancer Pool.

The address with the stolen funds currently has about 601 ETH worth about $133,823.

In its official report on the incident, Balancer Labs reported that it wasn’t aware that “his specific type of attack was possible” which now came to be untrue.

However, they have been warning about the unintended effects of ERC20s with transfer fees in the protocol. As such, STA wasn’t included in the recently put together mining whitelist of BAL.

Now, transfer fee tokens will be added to the blacklist and will continue to audit, the third planned audit is starting soon, and review the protocol.

However, the market seems unaffected for now, as the total value locked in Balancer is $115 million, down from the all-time high of $117 million just a day before, as per DeFi Pulse.

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Author: AnTy