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 Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Bln in TVL

The decentralized finance (DeFi) sector has started to go up, yet again.

DeFi tokens are in the green, gradually moving up with Perpetual protocol (PERP), leading the gains up 16% in the past 24-hours. Popular DeFi coins, PancakeSwap, AMP, Thorchain, Synthetix, Bancor, Curve, Swipe, Alpha, Venus, Polkastarter, and Akropolis are also up 5% to 10%.

This has the total DeFi market cap climbing towards its all-time high of almost $150 bln from mid-May, according to CoinGecko. As of writing, the market cap is above $143 bln.

But it is the total value locked (TVL) in the sector that is rising even more rapidly, which has surpassed the May peak of $156.2 bln last month, as per DeFi Llama. Currently, the TVL of the entire sector is sitting at almost $180 bln, with Aave contributing the highest at $16.33 bln.

In terms of layer 1 blockchains, Ethereum is a clear winner with roughly $131 bln in TVL, followed by Binance Smart Chain at $19.32 bln. Other popular blockchains with smart contract capability attracting the most capital include Terra $7.63 bln, Polygon $5.28 bln, Solana $4.81 bln, Avalanche $2.42 bln, and Fantom $1.25 bln.

Binance and Polygon are the only ones that are about 40% down from their ATH TVLs, while others are hitting new highs.

Deflationary Pressure

With these latest uptrends, DeFi is actually catching up to the rest of the market, with the overall market capitalization of crypto reaching $2.45 trillion, just inches away from May 12 ATH of $2.55 trillion.

Ether, in particular, has been rallying for the past month thanks to being the popular chain for the latest mania in town NFTs.

Ether briefly hit $4,000 late Friday and is currently trading around $3,950.

Besides NFTs, the London upgrade early in August, which implemented EIP 1559, is another factor behind its success as it reduced Ether’s supply increases and, at times, even making it deflationary.

Since the EIP 1559 upgrade a month ago, more than 212,000 ETH worth $714 mln has been burned, “resulting in continued disinflationary pressure on the Ethereum supply,” the Fundstrat crypto team wrote in a note Friday.

Onto New Highs

The breakout in Ethereum has cascaded into other cryptos and is also expected to help Bitcoin lead the way now.

The gains recorded by the leading cryptocurrency have been relatively smaller than its peers. But BTC also jumped $52,000 early on Monday and is hovering around this level now.

“Hold $50,000 and I expect Bitcoin to have another leg up to $60,000 and test the April highs,” said Antoni Trenchev, co-founder of crypto lender Nexo. But Bitcoin “needs to start closing above $50,000 and settle in the early 50s to temper concerns that this is a double top and we’re heading down to $30,000 again,” he said.

Amidst this, users on platforms including Reddit and Twitter are discussing plans to buy $30 worth of BTC en masse on Sept. 7 to mark El Salvador’s law-making Bitcoin a legal tender coming into effect.

El Salvador has already begun installing Bitcoin ATMs for the conversion of the token into USD, and Congress has approved the creation of a $150 million fund to back conversions.

Meanwhile, USD went back above 92.2 to start the week after dipping to 91.941 for the first time since August 4. Benchmark 10-year US Treasury yields firming to over a week high helped boost the dollar. US markets are shut for Labor Day.

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Author: AnTy

NFT Summer: Art Blocks Leads the NFT Mania This Week while an EtherRock Is Now Worth Over $1 Million

The euphoria around non-fungible tokens clearly states that this summer is all about NFTs.

This week, payment processor giant Visa also announced its entry into the NFT space by buying CryptoPunk for $150,000.

Late on Monday, Cuy Sheffield, Head of Crypto at Visa, tweeted that “NFTs represent the intersection of culture and commerce and could play an important role in the future of online retail, social media, and entertainment.”

After bridging the crypto ecosystem and Visa’s global network, the online payments company now wants to participate in adopting NFT-commerce, he added.

Mathew Graham of Sino Global Capital called Visa buying an NFT “a bigger signal” than El Salvador announcing Bitcoin as a legal tender. However, Ryan Wyatt, the head of gaming at YouTube who recently said he is “bullish on NFTs,” doesn’t see Visa’s NFT adoption as edgy.

“I didn’t anticipate a company getting into NFT’s on such a short timeline. It was a brilliant move for them, because their earned media they got today was 100x the NFT acquisition itself,” said Wyatt.

Next month, Christie’s is also set to auction CryptoPunks, Meebits, and Bored Ape Yacht Club NFTs. Ahead of this, every day, the floor prices of these NFTs are climbing through the roof.

The most notable one being digital rocks which are now getting sold for more than a million dollars, while two days ago, the cheapest one was sold for $300k and less than $100k two weeks back.

On Monday, one of the EtherRock collections was sold for 400 ETH or about $1.3 million. With only 100 EtherRock out there, the scarcity of this collection is driving up their value. The website reads,

“These virtual rocks serve NO PURPOSE beyond being able to be brought and sold, and giving you a strong sense of pride in being an owner of 1 of the only 100 rocks in the game.”

But it’s Art Blocks leading the NFT scene this week. NFTs from the Ringers and Fidenza series have made it to the top, now being sold for over $1 million, up from $300k three weeks ago.

However, an NFT avatar named Sirxn 0 – Biobluminescent Sirxn from the GHxSTs collection sold for more than $2 million. But that was before late on Monday, Tyler Hobbs’ Fidenza 313 called “The Tulip” was the first one to be sold for 4-digits, 1,000 ETH worth $3.3 mln.

According to Dapp Radar, while NFTs from the Axie Infinity series generate the most trading volume over the past week, the generative artworks form Art Blocks is closing in as it dominates the top 10 NFT collections.

This top list also consists of CryptoPunks with $47 million in sales and Cyberkongz VX and Cyberkongz, Pudgy Penguins, Generative Masks, and the Gutter Cat Gang collection. Cool Cats, MeeBits, World of Women, and Bored Ape Kennel Club are outside the top 10.

Money Stack, with only 150 unique collectibles on the Ethereum blockchain available, is also capturing the attention this week as they see their floor price slowly rising to 6.5 ETH, a new record.

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Author: AnTy

Stock Tokens, Even on Decentralized Platforms, Must Adhere to Securities Laws: SEC Chair

Stock Tokens, Even on Decentralized Platforms, Must Adhere to Securities Laws: SEC Chair

The US Securities and Exchange Commission (SEC) is renewing its efforts to impose “long overdue” rules for the registration and regulation of security-based swap execution facilities, including tokenized stocks, said Chair Gary Gensler on Wednesday.

In his prepared speech, Gensler said he wanted the SEC to coordinate such derivatives rules with those already in place at the Commodity Futures Trading Commission (CFTC), which has the bulk responsibility for overseeing derivatives.

When it comes to the cryptocurrency industry, Gary Gensler emphasized that any crypto token priced off the value of securities, be it a stock token, a stablecoin backed by securities, or any other product providing synthetic exposure to securities; must adhere to securities laws, even if offered on a decentralized platform.

“These platforms — whether in the decentralized or centralized finance space — are implicated by the securities laws and must work within our securities regime,” he said in a speech at the American Bar Association Derivatives and Futures Law Committee Virtual Mid-Year Program.

While the SEC has brought some cases involving retail offerings of security-based swaps, “there may be more,” added Gensler.

Regarding tokenized stocks, the leading cryptocurrency exchange Binance has been asked by authorities in Germany and Hong Kong to stop offering these products.

Last week, the exchange announced that they are “winding down” support for these tokens on Binance.com effective immediately and would no longer be available on its website after October 14.

In other news, the US Banking, Housing, and Urban Affairs Committee will be conducting an open session called “Cryptocurrencies: What are they good for?” next week on July 27.

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Author: AnTy

ShapeShift Decentralizes the Exchange to Form a DAO, Airdrops FOX Tokens Which Soars 4x

ShapeShift Decentralizes the Exchange to Form a DAO, Airdrops FOX Tokens Which Soars 4x

  • Founded in 2014, ShapeShift cryptocurrency exchange has shifted its form to become a completely decentralized organization (DAO) over the next 12 months.
  • The company is handing over the company’s reins to a decentralized autonomous organization (DAO) controlled by FOX holders.
  • FOX holders will be governing the organization by submitting and voting on proposals.
  • It is conducting what is described as “the largest airdrop in history,” which has sent the price of FOX soaring.

The exchange token, which was launched in November 2019, surged 314% to $1.16, as per CoinGecko. As of writing, the token is trading just above $0.8, still down 50.4% from its all-time high of $1.65 three months back.

“It has become clear that open, immutable finance requires open, immutable organizations,” said Erik Voorhees, founder and CEO of ShapeShift.

“Inspired by the broader DeFi community, we’ll now help pioneer a new model of economic coordination for the 21st century. No corporate entity, no banks and no borders.”

This airdrop involves 340 million FOX Tokens to over one million recipients in a multi-step process. It will be distributed to an estimated 900k current and past shapeShift users, KeepKey hardware wallet owners, and about 120,000 users of several DeFi protocols such as Yearn, Uniswap, and Gitcoin, as shared in ShapeShift’s blog.

Of the total just over a billion FOX tokens, with no inflation, 34% is assigned for the community, 32% to the ShapeShift staff, 24% to the ShapeShift DAO, 7.5% to the Foundation, which will steer the part which can’t be decentralized right now, and 1.3% to help the company to wind down.

To receive the airdrop, it must be claimed within 90 days, and after that, unclaimed FOX tokens will be sent back to the DAO. Liquidity mining for the token starts on July 16.

The company is open-sourcing its entire codebase and technology and bringing ShapeShift “further in line with the true vision of immutable, decentralized finance.”

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Author: AnTy

Online Marketplace eBay to Support NFT Transactions On Its Platform

Popular e-commerce company eBay has joined the non-fungible tokens (NFTs) train as the online retailer now supports non-fungible token (NFT) auctions on its platform.

eBay Making Strides In Crypto Sector

In a blog post, eBay said that it had updated its company policy to include the sale of digital collectibles like trading cards, images, or video clips on its platform.

The online retailer said it would update its policies and tools on digital collectibles in the future. But pending the updates, trusted sellers who meet certain requirements will be allowed to list their NFTs on the platform.

However, the company said that it would add new capabilities that bring blockchain-driven collectibles to future NFT updates.

eBay has prior experience verifying physical collectibles and items for buyers. It plans to continue this model using the power of the blockchain.

eBay added that it was also working on programs, policies, and tools to let its customers buy and sell NFTs across a broad range of categories.

With this move, eBay becomes the first e-commerce company to tap into the NFT frenzy. The company is also mulling the idea of accepting cryptocurrency as a form of payment in the future.

NFT Projects On The Rise

NFTs are digital assets with unique properties that cannot be interchanged with another. They are one-of-a-kind assets in digital form that can be bought or sold like any other physical asset.

With NFTs, these digital assets are tokenized to create a digital certificate of ownership. This ownership is what’s bought and sold. The details and records of the owner of the NFTs are stored on a public ledger, also known as the blockchain.

Popular NFT forms include gamified collectibles, pure collectibles, sports-based imagery and collectibles, and art-based collectibles. The uniqueness and price depend on rarity and special features.

Thousands of projects featuring NFTs have exploded in the crypto space over the last few months, from the piece of digital artwork by Beeple that went for $69 million to the numerous sports collectibles sold by NBA Topshot, a platform that’s in partnership with the NBA.

Numerous NFT marketplaces continue to spring up as the NFT craze waggles on. The popular names include Top Shot, Rarible, Nifty Gateway, and OpenSea. Having an online retailer like eBay, with a major presence in online shopping, making an entrance would extend the NFT craze to millions of active buyers on the platform. Popular cryptocurrency exchange Binance is also making inroads into the NFT market. The bitcoin exchange plans to debut its NFT platform by June 2021.

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Author: Jimmy Aki

BaFin Warns Binance of Offering “Stock Tokens’ Without ‘Necessary Prospectuses’

BaFin Warns Binance of Offering “Stock Tokens’ Without ‘Necessary Prospectuses’

This is in violation of European Union securities law, as per Germany’s financial regulator, while Binance says it is “committed to following local regulator requirements.”

Germany’s financial regulator is warning that Binance risks being fined for offering its tokenized stocks without filing a prospectus before offering the assets. The regulator said in a statement,

“BaFin has grounds to suspect that Binance Germany is selling shares in Germany in the form of ‘share tokens’ without offering the necessary prospectuses.”

“Please bear in mind that securities investments should only ever be carried out on the basis of the necessary information.”

Earlier this year, the leading stock exchange announced the launch of zero-commission stock trading, starting with Tesla (TSLA). Binance then announced the listing of competitor Coinbase’s COIN shares, and then this Monday, MicroStrategy (MSTR) joined Apple (AAPL) and Microsoft (MSFT) on the platform.

These “stock tokens” are denominated in the exchange’s own stablecoin BUSD.

The Federal Financial Supervisory Authority (BaFin) said this week that there is no prospectus on the exchange’s website for MicroStrategy, Tesla, and Coinbase issues, which is a violation of European Union securities law.

The violation can result in Binance being fined 5 million euros ($6 million). A spokesperson for the UK’s financial watchdog said,

“The firm offers a number of regulated and unregulated products and services across multiple jurisdictions … We are working with the firm to understand the product, the regulations that may apply to it, and how it is marketed.”

The synthetic shares, backed by actual stock, allow investors to reap the economic gains of a company’s stock performance and dividends, according to Binance. A Binance spokesperson said,

“Binance takes its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate. We will work with regulators to address any questions they may have.”

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Author: AnTy

Bender Labs’ WRAP Protocol Brings Ethereum ERC-20 & ERC-721 Tokens to Tezos

Bender Labs’ WRAP Protocol Brings Ethereum ERC-20 & ERC-721 Tokens to Tezos

  • DeFi developer Bender Labs rolls on a decentralized bridge that connects Ethereum and Tezos blockchains.

In an official announcement, Bender Labs revealed the release of wrap protocol (WRAP), a decentralized bridge that now enables the transfer of ERC-20 and ERC-721 tokens from Ethereum to Tezos blockchains. This means that Ether (ETH) holders are free to interact with the Tezos platform.

Token wrapping has gained momentum in the recent past as a popular way of linking users of different blockchain networks. The best example is Wrapped Bitcoin (WBTC), an ERC-20 form of Bitcoin found on the Ethereum blockchain.

Importantly, wrapped tokens are created with the capacity to maintain the complete characteristics of the original tokens comprising the price. For instance, a Wrapped Ethereum (WETH) is redeemable as a standard Ethereum (ETH), locked within the native blockchain.

According to the announcement, the Wrap protocol will allow clients to transfer ERC-20 and ERC-720 into FA2 tokens found in the Tezos blockchain network. The ERC-20 can be described as the technical standard upon which most common Ethereum tokens have been developed, such as Uniswap (UNI), Maker (MKR), Chainlink, Dai, and others.

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On the other hand, ERC-721 is used for NFTs, non-fungible tokens which have gained traction among crypto enthusiasts and worshippers. NFTs can be described as cryptographically unique tokens representing virtual content like music and other forms of art. As opposed to other tokens, NFTs do not support interchangeability; therefore, they can easily be used to create scarcity for the virtual content.

To transfer Ethereum-based tokens towards the Tezos network, the WRAP protocol forms wTokens, which is a representation of both ERC-20 and ERC-721 tokens. Bender Labs states that wTokens worth will be equal to the original assets and can be used comfortably in the Tezos network.

“At the center of WRAP is the $WRAP token, which is both an ERC-20 and an FA2 token,” said the developers.

According to the announcement, a clear use case in transferring Ethereum tokens to various blockchains is the ever-growing decentralized finance (DeFi) space. Most of the Defi business takes place within the Ethereum network, but high transaction fees lead to clients looking for alternatives.

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Author: Joseph Kibe

Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users

Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users

London-based Fintech company, Revolut has announced support for eleven new cryptocurrencies, including popular DeFi tokens.

The cryptos selected are the result of the digital banking service provider “tracking hot tokens and top movers.”

Now Revolut’s UK and EU users can trade Cardano (ADA), Uniswap (UNI), Synthetix (SNX), Yearn Finance (YFI), Uma (UMA), Bancor (BNT), Filecoin (FIL), Numeraire (NMR), Loopring (LRC), Orchid (OXT), and The Graph (GRT).

“Revolut is moving much faster than PayPal and Square. Let the race begin!” noted Spartan Black, a partner at crypto fund The Spartan Group.

Revolut already supports a few cryptos, including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Stellar (XLM), EOS, OMG, 0x (ZRX), and Tezos (XTZ).

According to its website, the majority of crypto funds are held in cold storage with custodians.

The app has constantly been expanding to new markets, with its Revolut Business going live in the US last month, and the same month they launched Revolut Bank in 10 new European markets.

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Author: AnTy

Uniswap Creator Teases about V3 as 1Inch Protocol Launches Faster and Cheaper Version 3

As DEX aggregation protocol makes it cheaper to swap tokens on 1inch than on Uniswap, Hayden Adams says Uniswap seeing “real use and adoption.”

Decentralized finance (DeFi) application 1inch has released its version 3 with some new features, promising to offer its users the fastest trades at best rates.

The DEX aggregation protocol is targeting the pulse of the problem, high transaction fees on Ethereum that is making it difficult for smaller users to utilize different applications on the second largest network.

“We are thrilled to unveil version 3 of the 1inch Aggregation Protocol, which facilitates lower gas fees,” noted the team in its official announcement.

Reducing gas fees is actually the main improvement in V3, which is made possible through assembly code optimization.

This reduction in the transaction cost applies to swaps using DEX Uniswap V2 and its forks like SushiSwap and LuaSwap, among others.

The team shared how now swapping ETH for DAI on 1inch will be a lot less, over 10% less gas, than trading the same on Uniswap and nearly 5% less than on 0x. “It is now cheaper to swap tokens on 1inch than on Uniswap, as well as other popular protocols,” points out the team.

In reaction to this, Uniswap creator Hayden Adams tweeted out how the popular decentralized exchange is still dominating at 60% of DEX trading volume, which is close to its all-time high.

And that is three months since the end of UNI liquidity mining, “so this is from real use and adoption,” said Adams.

He then teased the community about how Uniswap will soon be launching its V3 as well, which has been a lot in the news but is yet to be released.

“I’ve heard a new and improved version of the Uniswap protocol is being announced soon.”

Already, the UNI token became the first DeFi coin to enter the top 10 crypto list, currently trading just under $30, up 560% YTD. UNI 1.43% Universe / USD UNIUSD $ 0.00
$0.001.43%
Volume 0 Change $0.00 Open $0.00 Circulating 88.03 m Market Cap 67.02 K
4 h Alpha Begins its “Multi-Chain Ecosystem” with the Launch on Binance Smart Chain (BSC) 6 h Uniswap Creator Teases about V3 as 1Inch Protocol Launches Faster and Cheaper Version 3 1 d Aave Releases AMM Liquidity Pool, Uniswap and Balancer LPs Can Use their LP Tokens as Collateral in Protocol

While Uniswap has yet to release its much-anticipated V3, 1inch is bringing more liquidity to its users through cheaper swapping token features on the platform. As of mid-March 2021, the total value of liquidity available on 1inch 1INCH 14.64% 1inch / USD 1INCHUSD $ 5.03
$0.7414.64%
Volume 241.56 m Change $0.74 Open $5.03 Circulating 148.89 m Market Cap 748.28 m
6 h Uniswap Creator Teases about V3 as 1Inch Protocol Launches Faster and Cheaper Version 3 1 w Rug Pulled on Users as DeFi Project Meerkat Finance Disappears Along with $31 Million 2 w 1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins
was $16.5 billion for Ethereum ETH 2.13% Ethereum / USD ETHUSD $ 1,827.25
$38.922.13%
Volume 24.4 b Change $38.92 Open $1,827.25 Circulating 115.09 m Market Cap 210.3 b
3 h Ethereum Wallet, Gnosis Safe Launches SafeSnap to Enhance Decentralized Governance in DeFi 4 h TRON Takes Aim at Ethereum’s NFT Market with the Launch of its TRC-721 Standard 4 h Alpha Begins its “Multi-Chain Ecosystem” with the Launch on Binance Smart Chain (BSC)
and another $2.3 billion for Binance Smart Chain (BSC).

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Author: AnTy