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.

Read Original/a>
Author: AnTy

Economist: BTC Needs Scaling to Have An ‘Impressive’ Price; Market Says That’s BCH, Not ETH

The price of Bitcoin is currently trading at $6,200, down 3.40% in the past 24 hours and almost -14% YTD.

In October 2017, it was the first time that Bitcoin price jumped to $6k, after 8 years. But for economist Jeffrey A Tucker, Bitcoin at $6,000 isn’t impressive. He argued that scalability would have done great things for the flagship cryptocurrency.

This tweet from Tucker came after last month, the AIER Editorial Director said, “Adoption hasn’t gone far enough and it hasn’t come into consumer use like it should and would have if it had been able to scale. Now we’re seeing what happens when Bitcoin was not properly scaled.”

Ether says Look at us

Tucker’s comment prompted a response from the second-largest network Ethereum co-creator Vitalik Buterin who asked him to look into Ethereum 2.0’s sharding, a scaling feature.

“High scalability but without the centralization that relying solely on increasing block sizes to a very high level would entail,” said Buterin.

But the community wasn’t really impressed with Buterin butting in with his scaling solution as Adamant Capital’s Tuur Demeester said, “I’ll believe it when I see it. Sharding is an unproven invention that has been promised by the Ethereum founders since 2014.”

Buterin’s Ethereum prompt not only got the bitcoin community calling out “LOLs” and “April Fool’s” but BSV’s Calvin Ayre saw this is as an opportunity to voice his opinion that “Eth is a waste of time as it does not scale and is evolving towards being an illegal security with proof of Stake” and promoting BSV with “Original Bitcoin BSV is the only one that scales and is legal. There is NO centralization from on-chain scaling.”

Scaling doesn’t matter for price

While Tucker is of the opinion that scaling would push the Bitcoin price higher, Bitcoin enthusiasts pointed out how that isn’t the case, at all.

Well, gold is a good example as on-chain analyst Willy Woo said, “Gold is $9T. How many transactions per second does gold do? I mean shipping the underlying between vaults. That’s BTC main chain. The swaps we do on ETFs and derivatives is Gold’s layer 2. That shit scales, so will BTC’s layer 2.”

When it comes to price, bitcoin is well on its way to new all-time highs as the stock-to-flow model depicts.

“Bitcoin has been scaling tremendously well, beyond my greatest expectations. I’m extremely fortunate to be alive to witness it, said Michael Goldstein, a bitcoin maximalist and President of the Nakamoto Institute.

Contrary to Tucker, Bitcoin core developer Luke Dashjr said, “Bitcoin may fail because we didn’t reduce block sizes sooner. The longer we wait, the greater the danger.”

According to him, the market is already flooded with “pyrite,” fool’s gold.

Also, not to forget that the second layer on the Bitcoin network, Lightning Network already enables cheaper and fast transactions. But per Tucker, “it’s just in practice hard to be “excited” for four years.”

Well, BCH has Scaling, look at it!

Well, Tucker doesn’t need to imagine it as the community pointed him towards Bitcoin Cash (BCH) which got scaling but its price is around $200.

As per Vijay Boyapati, “the market massively discounts what you consider ‘proper scaling’ and greatly values immutability, the most important property of Bitcoin.”

Also, “In 1 week, BCH block subsidy is going to be worth far less than BTC transaction fees (currently ~0.25 BTC). How does that make you feel?,” pointed out network engineer Melik Manukyan.

But according to Tucker Bitcoin cash never had the network that Bitcoin had and people need to “think dynamically not statically.”

Read Original/a>
Author: AnTy

This Crisis Is A ‘Perfect Storm’ For Bitcoin But We Could Be In For A ‘Prolonged Bear Market’

Bitcoin is back in the green, recording the gains of 3.14% in the past 24 hours while volume on the top ten exchanges with real volume remains above a billion.

As Bitcoin turned green, altcoins also registered gains but not as much as Bitcoin except for the likes of Digibyte which is up 10.83%, CRO 9.36%, Verge 8.86%, Horizen 7.39%, and IOTA 4.42% among others.

Source: Coin360

Bitcoin might be seeing gains for now but commentators are predicting negative price action in the short term.

The world’s leading cryptocurrency has a demand zone in $5,900s. According to a popular trader with the pseudonym Bitcoin Jack, “For now, this is an interesting price level. If we close with an SFP (>6060) I will add margin to my 4500-4800 longs.”

Also, the record volume suggests, “weak hands cleaned.”

BTC price to take yet another hit?

Interestingly, Bitcoin futures are currently trading $1,500 under the level on spot exchanges, which is “exactly the opposite situation,” to the time bitcoin got down to its bottom and we went to a $1,500 backwardation, a situation where the price of a commodity futures contract trade below its spot price, said the trader with the pseudonym Ugly OldGoat.

The trader is expecting a “prolonged” bear market for six to nine months adding that “Competition is going to be on the Bitcoin Standard. It won’t be constipation between Crypto Currencies.”

Structurally we could into a bear market, as the trader explained,

“we went to the big contango when we went for $500 over the spot it became very attractive for the commercial interest to sell Bitcoin and the smart ones were, they sold it all the way up from $11,500 up to $14,500 and they’ve locked in their profits for the year which is really healthy for Bitcoin because you know we don’t have to worry about the miners making it this year. If this market fizzles and goes back down and test lows again at $3,000 they’re gonna be just fine.”

The ones that definitely have to be concerned are the speculators, he said.

Another trader who is expecting a bearish scenario before the halving is FlibFlib who sees the price of the flagship cryptocurrency going below $4,000 at the end of April.

Bitcoin must rally or crypto in big trouble

Bitcoin has been trading like a risk-on asset, trailing stock markets, which have turned mixed today yet again. Volatility continues to control the financial markets as COVID-19 pandemic rages on. While US Treasury yield tumbled, Brent Crude oil price went below $20 a barrel, the lowest level in 17 years.

Investors are currently weighing the toll from the virus against policymakers’ efforts. On Sunday, Treasury Secretary Steven Mnuchin said workers can expect their direct checks from the $2 trillion stimulus package in about three weeks. Also, President Trump said the social distancing guidelines will remain through April 30.

Coronavirus cases meanwhile climbed over 732,000 globally, as per Johns Hopkins data. In the US, the number of cases rose above 143,000 and death over 2,000. Dr. Anthony Fauci, director of the National Institute of Allergies and Infectious Diseases, believes the virus could claim as many as 200,000 Americans’ lives amidst “millions of cases.”

This crisis according to veteran trader Peter Brandt, is the “perfect storm” for Bitcoin and if the digital asset “cannot rally on this, then crypto is in BIG trouble.”

Read Original/a>
Author: AnTy

23k BTC on CME Futures and 50k BTC in Options Expiring Today

Bitcoin is currently down 0.05% in the past 24 hours trading around $6,640 after hitting $6,872 last night, yet again rejected at $7,000 level. Interestingly, more than 340,000 addresses are holding about 236k BTC at about $7k level.

According to trader Nebraskan Gooner, the crypto asset is working in a tight range. A daily close above $6,750 he said “would surely” take us above $7,000 while the close below $6,400 means, falling to $5900 and even $5200.

Bitcoin has also printed a death cross, which indicates a potential for major sell-off. This technical chart pattern has been a reliable indicator of some of the most severe bear markets in the traditional markets which is now seen in bitcoin.

But bitcoin volatility could see a further hike as futures contracts on CME and options expire today.

Activity on CME has been declining ever since February when the price of Bitcoin was trading around $10,500. Crypto data provider TradeBlock, noted,

“March bitcoin futures trading volume at the CME declined despite elevated volatility in spot markets for the month. While the CME’s bitcoin futures product saw record volumes in January and February, March activity has fallen considerably.”

Source: @TradeBlock

As for today’s futures contract expiration, Bitcoin futures on regulated exchange CME has about 23,000 BTC worth over $150 million in open interest for March 27th contracts.

Besides bitcoin futures, options are also expiring today. About 50,000 BTC options worth about $330 million are outstanding on crypto exchanges, out of which $50 million are in open interest on March 27th expiry on Deribit.

“For reference, the Deribit Exchange open interest on options last year was half the value of open interest that is present on exchange now. ($300m -> $600m). The same case for BitMEX March 27th futures,” noted Trajan.

Skew-Total-BTC-Options-Open-Interest
Source: Skew.com

According to Su Zhu, CEO of Three Arrows Capital this quarter is “very important” to watch. It is expected that the expiry of Bitcoin futures and options would result in heightened volatility.

Zhu further noted, “Last yr market bounced quite aggressively from backwardation to contango after the expiry.”

Backwardation is when the spot price of an underlying asset is higher than the futures price while Contango is when the price of a commodity is higher in the futures market than the current price of the commodity. Now it’s to be seen if we will see the same scenario happening this time as well.

Backwardation is happening in both gold and bitcoin which Zhu said could be because “mkt has re-learned fear and is showing preference for owning actual assets vs owning derivatives of those assets.”

Read Original/a>
Author: AnTy

Nearly $10 Million XRP Transferred to Former Ripple CTO Jed McCaleb Wallet

The third-largest cryptocurrency is back in the red, in line with the broad crypto market. In the past 24 hours, XRP lost 9.43% of its value, currently trading at $0.218. In the past month, the digital asset has lost nearly 22% of its value but is still up 18% in 2020 so far.

Interestingly, after bitcoin’s over 7% losses, XRP recorded the least percentage of losses among the top ten cryptocurrencies while EOS is down 14.52%.

These losses came amidst the transfer of over 41.2 million XRP worth about $10 million was from former Ripple CTO Jed McCaleb’s Settlement to Jed McCaleb’s wallet.

This much amount of XRP is expected to hit the market soon and when it does, it would put additional selling pressure on the crypto asset’s price which is already in the red.

As we reported earlier last month, Ripple co-founder selling his XRP is “insignificant” compared to the total trading volume of the digital asset per day.

McCaleb also sold a portion of his 19 million XRP in January but the price still surged over 27%. In total, he has sold 1.05 billion between 2014 and 2019, out of the 9 billion he received as part of his compensation for his role in Ripple.

Apart from co-founding Ripple, McCaleb also founded the infamous Mt. Gox but left it before the exchange went down. He has also created another cryptocurrency Stellar Lumens (XLM), currently ranked at 14th place trading at $0.0521, down 13.59% in the last 24 hours.

McCaleb still has about 5% of the total existing supply left to be dumped on the market. Overall, this XRP whale doesn’t appear to have much of an impact on the XRP price, although the “economic power and consequences of whales cannot be ignored.”

No mechanism to prevent XRP from being created by a bug

Elsewhere, current Ripple CTO David Schwartz shared that there is no freezing of other people’s XRP, on the question of if XRP can be frozen or locked out. He further elaborated on what could cause XRP to be created or destroyed.

“There’s no mechanism in the software to create XRP and safeties to prevent it from being created by a bug or trick. There’s no freeze or lock for other people’s XRP since nobody would be entitled to that capability. You can easily lock or destroy your own XRP if you wish,” said Schwartz.

Schwartz further clarified that the validators can’t burn the XRP in your wallet either as servers count the number of validators that agree with it and such validators would be simply counted as disagreeing, “potentially halting the network if too many of them did this.”

And if they change the rules, that would effectively be a hard fork.

Read Original/a>
Author: AnTy

New Data Indicates That Europeans Are The Most Active Traders For Bitcoin Futures On BitMEX

Fresh data reveals that for the last one month, European business hours have recorded high levels of activities on Bitcoin futures trades within the BitMEX platform. High volumes of BitMEX XBT/USD futures contracts were witnessed during European business hours, Bitcoinist reports.

The data shows that Europe is slowly becoming a hot crypto market especially in the last one year. The region has adopted crypto-friendly banking services and wealth levels are growing coupled with a superb tech sector, which have enhanced interest for crypto trading.

This year, trading BTC positions increased steadily before hodling behaviors were witnessed leading to a wave of buyers who want to take advantage of the situation. BitMEX ranks high among the highly active Bitcoin markets, increasing to the popularity of Bitcoin futures.

Despite the high popularity of Bitcoin futures and cryptos in general, traders and users in Europe are still facing some challenges. Crypto users and traders are forced to comply with highly stringent KYC guidelines and it is expected that tight monitoring will be implemented in the near future. Such aspects have led to some crypto-based companies to close shop such as BottlePay which is a crypto payment platform which cited restrictive AML regulations as the reason for their closure.

From Jan. 10, 2020, firms located in Europe will be required to adhere to the newly established AML guidelines which will be a burden to the still growing small companies. Some companies in the crypto industry have started to comply with the new guidelines like LocalBitcoins.

At the moment, it is hard to know exactly what led to high interest among the Europeans to trade in Bitcoin futures. However, polls show that European crypto traders is made up of a small click of investors but have surpassed the cash usage in fintech as well as crypto assets.

Interest in crypto trading and assets is likely to increase in Europe after the appointment of Christine Lagarde as the head of European Central Bank who is in favor of cryptos and digital currencies. She has indicated that the ECB could develop their own stablecoin.

Read Original/a>
Author: Joseph Kibe

Brazil’s Atlas Quantum, a Bitcoin Trading Firm, Has 1 Day to Give Back Investors’ Money Over $250K of BTC

A court in Brazil has given 24 hours for a company operating in automated bitcoin to refund the money to the two investors it has. In the past few years, Atlas Quantum platform as allegedly faced a lot of difficulties withdrawing funds and making profits since the securities regulator in the country took strict action against it in August.

In a BelnCrypto Brazil report, the Atlas Quantum will have to deposit a total of $250,000 in bitcoins to refund its two aggrieved investors. One of these investors has been in and out of court on the issue since the 4th of September, 2019.

This company is based in Brazil and is responsible for identifying prices and differences in in price in cryptocurrency trading across the various trading avenues on behalf of its customers. The company will then buy a digital asset at the lower price and sell it to customers at a higher price to make a profit.

Reis explains:

“For one, two or three people it is possible to do the operation on time. However, as there are many clients, it is difficult to get the same values ​​for all and, in this case, the investor can lose money.”

According to the bitcoin expert Guilherme Reis, this type of business can truly generate huge profits. Although, the methods are less effective the more people do not buy the bitcoin. Suddenly there are huge amounts of pressure to sell and still make profits to appease the investors. Lack of the necessary withdrawals has led the company’s investors to take the drastic measures.

Read Original/a>
Author: James W

Coinbase Pro Welcomes Tezos (XTZ) to Platform, Enabling Full Trading with USD and BTC Pairs

Coinbase Pro Welcomes Tezos (XTZ) to Platform, Enabling Full Trading with USD and BTC Pairs
  • Coinbase Pro will accept incoming XTZ transfers on August 5th.
  • In the last 24 hours, the price of the Tezos token has risen by over 20%.

Coinbase Pro has consistently worked to make sure that consumers have a wide variety of options for trading, adding new tokens to their platform relatively frequently. According to a new blog post from Coinbase, the platform has decided to add XTZ, the cryptocurrency asset from Tezos.

However, the inbound transfers of this token are not going to be accepted until August 5th, and the company states that the deposits will be available for a minimum of 12 hours before full trading is enabled.

Whenever Coinbase adds a new token, they offer this period of incoming-only transactions to establish a sufficient supply of the asset for trading. The orderbooks for XTZ/USD and XTZ/BTC will be started in phases, allowing for full trading when the “metrics for a healthy market” are met.

The only state that will not immediately offer support for XTZ is New York, though other jurisdictions may be added later.

Tezos offers proof of stake consensus on its decentralized computing platform. It also allows developers to verify code accuracy with formal verification, and the stakeholders have control over changes to the protocol with voting protocols.

There are four phases that Tezos will go through, just like every other cryptocurrency that is added to Coinbase Pro. Those phases are:

  1. Transfer only, which allows customers to add XTZ to their accounts, but they will not be able to perform any other functions yet.
  2. Post only, which lets customers post orders, but nothing will be completed. However, these orderbooks will only be in this phase for about a minute.
  3. Limit only, which will start matching orders, but market orders cannot be submitted. The minimum time in this phase will be 10 minutes.
  4. Full trading, which includes all orders and all transactions.

Previously, newly added tokens on the Coinbase Pro platform would experience a jump in value around the time of the launch. Presently, the XTZ token is priced at $1.24, rising by 22.28% in the last 24 hours.

A separate announcement by Coinbase will be published if XTZ is added to Coinbase.com or the consumer mobile apps. This addition will only include Coinbase Pro.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

Read Original/a>
Author: Krystle M

Crypto Community Donates Over 200 Books on Bitcoin in a Single Day to Educate Congress

Crypto Community Donates Over 200 Books on Bitcoin in a Single Day to Educate Congress
  • #BitcoinForCongress campaign is in full effect as in just over 24 hours 200 books on Bitcoin has made their way to the members of congress
  • The goal is to reach all 535 US legislators and educate them about Bitcoin

As part of ‘Bitcoin For Congress’ campaign, the crypto community has donated more than 200 books on Bitcoin to the Congress in just over 24 hours.

This campaign was started by enthusiast and the author of the children’s book “Bitcoin Money: A Tale of Bitville Discovering Good Money,” that goes by the moniker, The Bitcoin Rabbi on Twitter. His goal is to reach all 535 US legislators and educate them on the concept of Bitcoin.

On July 18, he took to Twitter to announce this campaign called ‘Bitcoin For Congress’ after the congressional hearings on Facebook Libra that extended to the cryptocurrency market.

#BitcoinForCongress

This week, US lawmakers grilled Facebook on its cryptocurrency project. Last week, Bitcoin took center stage when first the Fed Chairman Jerome Powell compared Bitcoin with gold calling it a store of value.

However, soon after the US President Donald Trump and Treasury Secretary chimed in but the remarks weren’t as good as Powell’s, at least until you analyze it deeply like the cryptocurrency community.

While Trump tweeted that he is not a fan of Bitcoin and cryptos, adding that Bitcoin is not money, is highly volatile and based on thin air, U.S. Treasury Secretary Steven Mnuchin said they are a “national security issue.” Both are concerned about cryptos use in

“illicit activities like cyber crime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking.”

“It is clear that the lawmakers in Washington need a lot more education about Bitcoin,” wrote The Bitcoin Rabbi.

Let’s Educate the Congress

Per this campaign, to participate, you have to pay $8 and The Bitcoin Rabbi will send a copy of “Bitcoin Money” to any congress member your choice on your behalf. The book will also involve a “respectful letter” to help explain Bitcoin. You can also order multiple books for multiple representatives.

As for why the children’s book, he says there are already great books and educators that have a “powerful effect” in DC, but they need a basic

“children’s level understanding of Bitcoin.”

“Lets flood Congress with Bitcoin education, one book at a time,” he added.

Read Original/a>
Author: AnTy

Harmony Token (ONE) Surges by 800% Over 24-Hour Period Due to Binance IEO

Harmony Token (ONE) Surges by 800% Over 24-hour Period
  • Within just 4 hours of its launch, Binance’s new DEX platform witnessed more trade activity than what IDEX saw over a 24-hour period.
  • Harmony’s market capitalization since yesterday afternoon has exceeded that of Binance’s BNB token.

Harmony (ONE) — an altcoin that is part of Binance’s latest IEO offering— has seen its value surge by a whopping 800% since yesterday afternoon, thereby increasing the currency’s total market cap to around the $600 million mark.

At this point, it should also be highlighted that this digital asset is the first crypto offering to debut simultaneously on Binance’s regular native trading platform as well as its newly-launched decentralized exchange— Binance DEX.

In regards to this development, we should also mention that over the course of the past few weeks, Binance’s executive brass has been able to generate considerable buzz around the ONE token — primarily by promoting a new free giveaway campaign in relation to the coin.

More on the Matter

Harmony was a little known project before its partnership with Binance, however, since its launch, the token has been on a financial tear.

On the subject, a popular crypto analyst was quoted as saying:

“It’s up by 800%+ from (the) IEO. Wouldn’t recommend chasing this. I’ve been eyeing this for a while. This has very huge hype. But not gonna buy at this price. Will wait for dips in the coming weeks. If it moons hard, I don’t mind missing this. Plenty of other choices.”

  • Binance’s DEX platform witnessed more trade activity within a 4 hour time period than what IDEX — one of its closest rivals — saw in more than a day.
  • Since the beginning of May, Binance has been experiencing a pullback of sorts because of its recent $41 million hacking scandal.
  • Over the course of the past 2 weeks or so, Binance’s native token offering (the BNB Coin) has been experiencing a massive monetary surge — with the premier altcoin reaching a price point of $35 for the first time recently.
  • According to a research piece released by Binance a few days ago, the firm has revealed that the crypto market is currently experiencing a “changing trend” that is helping the global investor community view assets like BTC, BCH in a positive light once again.

Final Take

In closing out this piece, we need to point out that since the start of the year, more and more institutional investors have continued to enter this nascent market space. It now remains to be seen how the future of this industry plays out from here on end.

“}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12”:0}”>Latest Binance News and Crypto Exchange Updates

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

Read Original/a>
Author: Shiraz J