DeFi Dashboard Zapper Finds and Exploits A Vulnerability in Old ‘Polygon Bridge’ Smart Contract

DeFi Dashboard Zapper Finds and Exploits A Vulnerability in Old ‘Polygon Bridge’ Smart Contract

Sidechain project Polygon is currently enjoying a record $11.6 billion of total value locked (TVL) in it, up from $1.16 billion just two months back, as it continues to gain adoption.

Ethereum scaling layer 2 solution, Polygon, has been seeing a lot of adoption as more and more projects integrate with the sidechain in order to lower the fees.

Polygon allows users to enjoy faster transactions, lower gas fees, and more scalability as the crypto market continues to grow, which led to congestion on the second-largest network.

Originally launched in 2019 as Matic Network and later rebranded as Polygon (MATIC), it gained the backing of billionaire investor Mark Cuban this year.

The protocol has a record $11.6 billion of total value locked (TVL) in it, up from $1.16 billion just two months back, as per DeFi Llama.

The token MATIC is a $10.6 billion market cap coin trading at $1.66, down 36.5% from its peak of $2.62 about a month back.

Polygon is also integrated by the popular dashboard for DeFi users Zapper, which reported a vulnerability in their old Polygon Bridge contract. Their new Polygon Bridge contract went live less than a month ago.

On Monday, the team announced on Twitter that they “discovered a vulnerability in our old “Polygon Bridge” smart contract that would allow an attacker to steal funds that had unlimited approvals.”

The team exploited the vulnerability themselves, and “all the funds have been rescued.”

If a user is affected by the vulnerability, they would see a prompt on Zapper to revoke, if you had an infinite approval for the bridge contract. “If you don’t see anything, you were not affected by the vulnerability,” noted the team.

Zapper further said the current polygon bridge contract does not have this vulnerability and only affected its old smart contract.

Last month, Zapper closed a $15 million funding round by Framework Ventures with other participants, including Spartan Group, DeFiance Capital, Mark Cuban, ParaFi Capital, Aave founder Stani Kulechov and Ashton Kutcher.

Coinbase Ventures, Delphi Digital, Synthetix founder Kain Warwick and Libertus Capital were Zapper’s seed investors.

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Author: AnTy

SEC Commissioner Finds DeFi’s Democratization, Open Access, Transparency, & Resilience ‘Alluring’

SEC Commissioner Finds DeFi’s Democratization, Open Access, Transparency, & Resilience ‘Alluring’

Yet again, Hester Peirce, aka Crypto Mom, talked about balancing innovation and regulation but this time in decentralized finance.

SEC Commissioner Hester Peirce, aka Crypto Mom, during the recent regulating the Digital Economy Conference, while talking about the recent market mania in the meme stocks, praised the decentralized finance (DeFi). She acknowledged that people love participating in hot markets, and as regulators, the mission is simple, capital formation and investor enrichment.

The goal of our market, she said, is to facilitate the flow of investors’ money into real companies that can serve other people’s needs and then return the money so investors can build wealth and technology has the potential to turbocharge capital markets’ this ability. But, for technology to have its maximum benefit, Peirce, who has long been a crypto advocate, said, “we will need to change our attitude.”

“Specifically, we tend to look at technological innovation in the markets with deep suspicion, and that mindset has to change,” she added. For this, embracing the technology is the only way to do it, and that regulators’ role is to “protect investors and markets, not incumbents.” In order to do the best for both investors and markets, DeFi “will provide a very good test,” said Peirce.

She defined DeFi as the nascent industry which is working on building an alternative to the legacy centralized financial system (“CeFi”) run through smart contracts rather than financial intermediaries. Instead of counterparties, its users trust in smart contracts. She said in her speech,

“Although a work in progress with all the growing pains and rough edges that implies, DeFi’s promises of democratization, open access, transparency, predictability, and systemic resilience are alluring.”

As such, regulators need to provide both legal clarity and the freedom to experiment so that it can compete with CeFi, she wrote. Not to mention, increased participation in markets propelled by technology is beneficial for the markets themselves.

Besides using technology for transparency, it can be used for real-time settlement, she said, echoing Robinhood CEO’s call and pointing out how crypto transactions actually settle quickly and effectively without a central counterparty.

“The digital economy does pose some new regulatory challenges, but it also gives us new tools to meet those challenges,” concluded Peirce, adding, welcoming its potential has high payoff,

“A successful regulatory framework for the digital economy will unleash its ability to empower individuals to build better futures for themselves, their families, and their communities.”

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Author: AnTy

Reddit User Finds Private Keys to A Forgotten Bitcoin Wallet Holding 127 BTC

Reddit User Finds Private Keys to A Forgotten Bitcoin Wallet Holding 127 BTC

  • Reddit user finds private keys to a wallet holding 127 BTC.
  • The lucky ‘schooling’ man is set to invest the profits made in low-risk investments.

One Reddit user, BitcoinHolderThankU, has raised the curiousness of several crypto fanatics on the app after he claimed that he accidentally HODLed 127 BTC for the past 8-9 years. The user cashed out his gains, totaling $4.24 million, on over the counter (OTC) trading desks and plans to invest the profits on investments in the S&P 500.

Following a flurry of messages and crypto media taking up the story, BitcoinHolderThankU wrote a post to explain the journey of finding the crypto and how to cash out. According to the post, the user found the private key on December 22 when the price of one Bitcoin was roughly $23,000 – a total fortune of $2.92 million at the time.

The user spent the next week figuring out how to safely and securely liquidate the large sum of Bitcoins at the best price with the cheapest fees. While centralized crypto exchanges such as Binance and Coinbase were an option, their daily withdrawal limits hindered the user from selecting them as he wanted a quick exit while the price of Bitcoin was still high.

“Not only would it take forever due to the daily withdrawal limits, but at the time, I was also worried that the price of Bitcoin would suffer a major drop throughout the lengthy liquidation process.”

Finally, he selected an unnamed OTC desk to complete the trade, selling all the BTC for a price of $33,439.02 per coin minus a 0.15% fee, bring him a net total of $4.24 million.

Despite the sale’s profits, the user still faces regret aversion on selling all his 127 BTC. Over the past fortnight or so, the price of BTC doubled from previous all-time highs to trade at $41,000 before retracing to current levels of $34,000, as of writing.

“Looking back at things, I would not have sold all 127 Bitcoins if I were given a second chance,” the Reddit post reads. “Instead, I would’ve sold the majority of them and kept a handful to hold for years to come.”

So what next for the lucky Bitcoin HODLer?

The user plans to reinvest the profits in a “safe, low-risk investment channel” once he completes paying his taxes on the gains. At the moment, he plans to keep the money in S&P 500 till he is done with his schooling. The fortunes, however, will not influence his lifestyle at all, he stated in the post. He wrote, “No expensive luxuries, no new house, no new car, nada.”

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Author: Lujan Odera

BlackRock CIO on Bitcoin: There’s ‘Clearly Greater Demand than Supply’

As Bitcoin continues to hover around $23,000, everyone finds the leading digital asset valuable one way or the other.

Recently, Guggenheim Investments’ Scott Minerd called for a $400,000 price target for Bitcoin driven by the digital asset’s scarcity and “rampant money printing” by the central banks.

According to BlackRock Chief Investment Officer, Rick Reider, putting a number on Bitcoin as a valuation is hard, but he said, “demand outstrips supply today.”

This especially holds true with all the money printing going on in the US and Europe, and other parts of the world. The Federal Reserve’s balance sheet has actually made a new record at $7.36 trillion this week.

“I think there is clearly greater demand than supply. I think it’s a storehouse of value,” said Reider in an interview with Bloomberg.

“Millennials have definitely adopted Bitcoin as one of ways to get that store of value,” he said.

“I wouldn’t say it should be this price or that price, I just don’t know how you could determine that, but It does strike me it’s gonna be part of the asset sweep for investors for a long time.”

This is the second time Reider has shared bullish comments on the digital asset. Just last month, he said on CNBC that Bitcoin could replace gold in the future.

However, according to Goldman Sachs Group, Bitcoin and gold can co-exist despite the largest digital currency pinching some demand from the traditional safe-haven asset.

“I would argue that Bitcoin is the retail inflation hedge,” said Jeff Currie, head of commodities research at Goldman Sachs, in an interview with Bloomberg.

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Author: AnTy

On-Chain Fundamentals Point To High Investor Confidence in Bitcoin Despite Price Dip

  • On-chain bitcoin fundamentals paint an positive outlook for the price as it finds gains back up over $9,000
  • BTC has “more room to grow imminently”

Yesterday, Bitcoin climbed back above $9,000 and continues to hold above this level. After falling to nearly $8,400 last week, bitcoin is now exhibiting signs of rebounding in the past 24 hours. However, the stock-to-flow model price puts BTC’s value at about $8,646.

But it’s not just the price that is showing signs of recovering but on-chain fundamentals as well. When it comes to the on-chain US Dollar volume average in seven days period, seems to have gone lower following the dip in price earlier in the week, absolute values were on course, with the volumes seen a month or so ago. Crypto data provider Glassnode states,

“While coronavirus fears threatened to push prices below this support level, this threat appears to have passed for the time being as markets recover both in and out of crypto.”

The Reserve Risk of bitcoin is currently at low levels, making for an appealing risk/reward ratio for investing in bitcoin. This standard of measurement is used to assess the confidence of long-term holders relative to price and the numbers show, “high investor confidence in BTC at current price levels.” Combined, the on-chain fundamental suggests BTC has “more room to grow imminently.”

Bitcoin- Reserve Risk, Source: Glassnode

Reserve Risk is calculated by dividing the HODL Bank, delayed spending as a result of HODLing, by the current price. When belief is high and the price is low, there is an attractive risk/reward to invest in BTC which is currently the case.

Another indicator shows “strong investor confidence.” The Average Spent Output Lifespan (ASOL) metric also represents long-term investor stamina by showing when long-term HODlers leave the market.

Bitcoin- ASOL (7d Moving Average), Source: Glassnode

Historically, an increase in this metric came all at once to see big sell-offs as investors sold their positions. Over the past couple of days, there has been a “significant spike” in ASOL but this has been due to an exchange aggregating BTC dust from Omni transactions.

Filtering this out presents ASOL levels at low meaning long-term investors are not backing out of their positions. This suggests investor confidence in the digital asset remains high despite bitcoin’s recent dip.

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Author: AnTy

Blockstream CEO Says, $100k Bitcoin Price Doesn’t Seem So Far Now

  • Analyst Mati Greensapn finds Bitcoin contributor Hal Finney’s $300 trillion Bitcoin valuation a conservative one
  • We are closer than along the path of hyperbitcoinization – Adam Back

Popular analyst PlanB who first used the stock-to-flow model to determine Bitcoin price shared a note written by Hal Finney, a computer scientist and noted cryptographer known in the crypto community for his contribution to the development of the Bitcoin network.

The note from years back talks about the scenario of Bitcoin becoming successful and a dominant payment system in use throughout the world. In that scenario, he projects

“the total value of the currency should be equal to the total value of all the wealth in the world.”

That would put BTC in the range of $100 trillion to $300 trillion, based on the estimated value of total worldwide household wealth. As per this, each bitcoin gets a value of about $10 million.

But even this is a conservative number as Mati Greenspan, founder of newsletter Quantum Economics, points out,

“he didn’t account for lost coins. His estimate of total world wealth is way small. Perhaps considered conservative when he wrote it but today it’s probably closer to a few quadrillion.”

This much wealth will put Bitcoin even beyond a million dollars.

“Even if the odds of Bitcoin succeeding to this degree are slim, are they really 100 million to one against?” concluded Finney. And this is another reason, “quant investors like bitcoin.”

The Path to Hyperbitconization

Blockstream founder and CEO, Adam Back says in the current world of negative interest rates, MMT (Modern Monetary Theory) and inflation, we are closer to the path of hyperbitcoinzation.

“It’s closer than it sounds as along the path of hyperbitcoinization, the USD inflation rises, eg aided by Modern Monetary Theory rationale for high inflation, so $1 becomes worth say 10c over a decade or two of monetary craziness, then $10mil/BTC is $1mil/BTC in today’s money.”

$100k per Bitcoin is also not too far away, according to him, given that Bitcoin has already surpassed $10,000 several times. Currently, we are trading at $8,150, up 11.39% year-to-date. Back said:

“And $100k Bitcoin doesn’t seem so far given we already crossed $10k threshold a few times when few expected even $1k some years back and $10k seemed crazy.”

Analyst PlanB who has predicted around $50k to $100k BTC top this time “totally agree” with this as he says,

“Must admit that I probably would not have this level of confidence (and interest) in bitcoin, if I would not have had 20+ years experience investing $100B AUM and personally seeing the unintended consequences of quantitative easing (QE) and negative interest rates.”

Back says it’s “2017 all over.”

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Author: AnTy

Last Week Today: Bitcoin & Cryptocurrency Weekly Digest July 1-8

  • Study finds United States leads the world in volume of Bitcoin tweets, with Peru the most positive
  • Nobel Laureate shows poor understanding of cryptocurrencies, calls for them to be shut down
  • Regulatory pushbacks against Facebook’s Libra continue, panic and uncertainty abound
  • Is Bitcoin’s current bullish trend driven by manipulation or real demand?

More People are Talking about Libra than Bitcoin on Twitter, but Negatively

On July 3rd, social market sentiment analytics platform, TIE, published its report on the geographic breakdown of cryptocurrency discussions on twitter. The report revealed some pretty interesting, perhaps even surprising snippets.

According to the study, the US and the UK together account for 49.4% of recent tweets regarding Bitcoin, with 38.9% coming from the US and 10.5% from the UK. Outside of the top two, Canada, Turkey, India and Australia are the next most popular sources of Bitcoin tweets.

With regards to sentiment, which qualified tweets as being either positive or negative, among countries with at least 0.5% of the total volume of Bitcoin tweets, the most positive Bitcoin tweets emanated from Peru, Malaysia, Indonesia, Vietnam and Italy. Curiously, despite record-setting OTC trading volume, Venezuela has recently seen the highest volume of negative Bitcoin tweets (62%).

The report also compares twitter discussions of Libra vis-a-vis Bitcoin and the results are unsurprising. While Libra had a greater proportion of tweets, which were largely positive in the lead up to its announcement in June, sentiment towards Libra quickly shifted in the aftermath. Only 45.2% of Libra tweets were positive following the much-awaited release of its white paper, compared to 61.5% of Bitcoin tweets in the US and 59.8% of Bitcoin tweets globally being

“exceedingly positive.”

Given the volume of trading that takes place in Asian markets, it’s rather surprising to find how much Bitcoin discussion on Twitter is dominated by the US and the UK. But it stands to reason that Asians probably don’t use Twitter as much, and Twitter, therefore, is not the best barometer for Asian market sentiments as perhaps Sina Weibo which is often dubbed the Chinese Twitter and boasts nearly half a billion active users.

Stiglitz Won’t Care To Learn About Bitcoin But is Apt to Vilify It

Another day, another Keynesian crawls out from beneath a rock to pipe up hackneyed, poorly informed put-downs on Bitcoin. The statutory nocoiner idiot of the week is none other than renowned American economist, Nobel Laureate and septuagenarian way past his sell-by date, Joseph Stiglitz.

Like all Keynesians, Stiglitz deems it infra dig to even deign to understand how Bitcoin works, but can’t resist an opportunity to condemn it,

“the last thing we need is a new vehicle for nurturing illicit activities and laundering the proceeds, which another cryptocurrency will almost certainly turn out to be.”

said Stiglitz in an interview this week, speaking of Facebook’s Libra.

“I actually think we should shut down the cryptocurrencies,” he continued, before sputtering some tired old clichés peddled to vilify cryptocurrencies, such as their use in illegal financial activities, such as money laundering, by moving money off “from a transparent platform into a dark platform.”

“There is no need for anybody to go to a cryptocurrency,”

argued Joe,

“traditional banking sector has become too transparent to be used for money laundering purposes and other illegal activities. Cryptocurrencies are just a new way for inexperienced investors to lose their money.”

Stiglitz obviously didn’t do his research. A report by the US Department of Treasury last year concluded that the role of Bitcoin and virtual currencies in illicit activities and terrorist funding was negligible compared to traditional financial services. The U.S. dollar continues to remain the most popular currency for illicit commerce and money laundering, totaling more than $2 trillion globally.

Stiglitz’s other concern regarding Bitcoin that it’s not ‘transparent’ only proves that he has never made an effort to understand the workings of the currency. With every single transaction being immutably lodged in the Bitcoin ledger, shared and readily accessed by every single node on the network, a more transparent fool-proof financial system has never existed.

How are Japan, China, Russia, and the EU going to Tackle Facebook’s Libra?

Three weeks after Facebook released the white paper for its cryptocurrency, Libra, which was originally dubbed ‘GlobalCoin‘, it is looking increasingly likely that Libra isn’t going to be very global at all.

India has already supposedly banned it, and all other virtual currencies. This week reports from Japan and the EU followed along the lines of the US. The only neutral response, or perhaps even positive in the current scenario, came from Russia.

India’s Economic Affairs Secretary, Subhash Chandra Garg, said this week, “Design of the Facebook currency has not been fully explained. But whatever it is, it would be a private cryptocurrency and that’s not something we have been comfortable with.”

China, another Asian juggernaut, is concerned about the negative impact on its own economy a dollar-dominated basket of currencies backing the Libra would entail, according to the director of the People’s Bank of China (PBOC)’s research bureau, Wang Xin,

“If Libra is widely used for payments, cross-border payments in particular, would it be able to function like money and accordingly have a large influence on monetary policy, financial stability and the international monetary system? If so, it would bring a series of economic, financial and even international political consequences.”

On Sunday, European Central Bank (ECB) urged financial regulators to act fast to prepare for the push by US tech giants such as Facebook into the financial system. ECB’s executive board member, Benoit Coeure warned,

“It’s out of the question to allow them to develop in a regulatory void for their financial service activities because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.”

A report from Nikkei Asian Review last week claims that Japan, which has been very welcoming of Bitcoin, is not so enthused by Libra. According to the report, the Bank of Japan (BoJ) has concerns that Libra will be tough to regulate, could bring undue risk to the financial system and that Facebook is linking Libra to more than one national currency to avoid strongly focused regulatory control from a single nation’s regulators.

A little respite for Libra this week came from Russia’s deputy finance minister, Alexei Moiseev, who revealed that Russia plans to deal with Libra as it has done every other cryptocurrency, refrain from special action,

“No one is going to ban it. The ruble is our national currency, and all calculations must be made in it.”

Kraken CEO Vouches For Real Demand As The Driver For Bitcoin Bull Run, Not Tether

Unlike the parabolic run at the end of 2017, which was driven by unprecedented spikes in interest and activity across social media channels and google search trends, the current bullish price run of Bitcoin is not underpinned by a similar surge of mentions, discussions and activities. Price is up, but not much else has dramatically changed from earlier in the year. Except for the volume of Tether being traded, of course.

So given Tether’s murky history and its disproportionate share of trading volume across markets, it would be easy to assume that manipulation is what’s driving this run. Such an assumption may not be as true as it seems obvious, according to Kraken CEO, Jesse Powell.

In an interview with TD Ameritrade Network last Monday, Powell said,

“I don’t have inside knowledge of what’s happening at Tether, but I can tell you that, historically, when you’ve seen growth in the supply of Tether, we’ve seen growth in the supply of U.S. dollars coming onto Kraken. And other exchanges would report the same. Recently, we’ve had massive inflows of fiat currency, so I believe the Tether prints are a result of new fiat coming in.”

Despite sustained positive price action, the difference from 2017 is that this would not be the first time most retailers will have heard about Bitcoin, which explains the lack of interest surge on social media and search trends. Perhaps the real demand this time isn’t coming in the form of retail interest but is taking the shape of hedge funds and investment banks. Bitcoin, having the rare property of being a non-correlative, asymmetric payoff asset, presents a legitimate proposition for the typically diverse institutional portfolios looking for hedge options with a potential economic crisis looming. The theory is further underpinned by the recent surge in the gold price, which hit a six-year high last month.

Trading Insights

On the face of it, the end of June and the early part of the first week of July saw bearish sentiments re-emerge as Bitcoin erased over 30% from its 18-month high of $13880 USD on June 26 to trade at $9614 USD on July 2.

But in the bigger picture, this was only a necessary correction representing a spell of profit-taking and redistribution of coins. Bitcoin closed the month of June at $10760 USD, recording the 2nd highest monthly close in Bitcoin’s history – after December 2017. Interesting to note is that June’s high of $13880 USD is also the highest monthly close ever, perhaps justifying the resistance at this level.

Monday’s trading saw a breakout from an inverse head and shoulders pattern in the 4-hr chart, followed by a retest of resistance for support. The next price target from this breakout is $14889 USD.

Momentum from reaction to the breakout in Asian markets will determine how soon the target is realised.

On a slightly bearish note, the daily chart is shaping up for a potential double-top formation. A strong daily close above $12927 USD would invalidate this pattern.

With Bitcoin’s market dominance at a 26-month high of 65%, altcoins across the board continue their odyssey to obscurity, trading at all-time low satoshi valuations. At the time of writing, Ethereum is trading at a 28-month low of 0.0239 BTC, showing few signs of recovery.

All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

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Author: Bitcoin Exchange Guide News Team