A top crypto analyst warns that many traders are about to pay heavily for misreading the current market meltdown. Pseudonymous trader Altcoin Psycho tells his 457,000 followers that trying to use 2018 models to predict the 2022 bottom is a flawed proposition. “Many traders who nailed the last bottom are going to get torched trying […]
The post Many Crypto Traders Are About To Get ‘Torched’ and Completely Misjudge the Market, Warns Top Analyst appeared first on The Daily Hodl.
The pseudonymous host of Coin Bureau is revealing the current contents of his crypto portfolio. In a new YouTube update, the closely followed analyst known as Guy tells his audience how he is reorganizing his portfolio in the wake of crypto’s recent meltdown. According to the analyst, BTC and ETH are the main pillars of […]
The post Coin Bureau Reveals Current Crypto Portfolio and Top Three Ethereum Killers appeared first on The Daily Hodl.
Popular crypto strategist Michaël van de Poppe is outlining what he thinks is in store for four altcoins including XRP, Binance Coin (BNB) and Cosmos (ATOM) after a weekend that witnessed a bounce across the crypto markets. Van de Poppe tells his 613,700 Twitter followers that he believes XRP appears poised for a brief pullback […]
The post Here’s What’s Next for XRP, Binance Coin, Cosmos and One Low-Cap Altcoin, According to Popular Analyst appeared first on The Daily Hodl.
MATIC moved back into the cryptocurrency top 20 on Thursday, as prices rose by over 25% in today’s session. The token replaced FTT, which entered the list following declines in MATIC on Wednesday. ATOM also rose today, hitting a 12-day high in the process. Polygon (MATIC) MATIC was one of the standout movers in crypto […]
The protocol chose Cosmos as the best fit as it would not only need decentralization but also the ability to handle and scale 1,000 orders per second.
On Thursday, crypto derivatives platform dYdX, which is currently built on Ethereum layer 2, announced that it would be moving to a standalone blockchain based on the Cosmos SDK and Tendermint proof-of-stake consensus for its v4 update. The firm cites the Cosmos blockchain's decentralization and performance as reasons for being a "best fit" for building dYdX for v4.
We’re excited to announce that dYdX V4 will be developed as a standalone Cosmos-based blockchain! https://t.co/zQzZMIpzWO
— dYdX (@dYdX) June 22, 2022
Currently, the existing dYdX protocol processes about 10 trades per second and 1,000 order placements and cancellations per second, with the goal of scaling to magnitudes higher. However, the firm says that neither Ethereum layer 1 nor layer 2 solutions can meet its requirements for throughput speed while also satisfying its 100% decentralization requirement by the end of the year.
All dYdX code will be open-source, and the protocol itself will run on open permissionless networks with no services being operated by parent entity dYdX Inc. All validators and node operators will run the core node software, which will handle consensus, off-chain orderbook matching, deposits, transfers, withdrawals and price oracles. In addition, traders will not need to pay gas fees to trade, but only fees for executed trades similar to that of dYdX v3 and centralized exchanges. Fees will then be distributed as rewards to validators and stakers.
Furthermore, dYdX seeks to bridge blockchains by leveraging Cosmos' inter-blockchain communications protocol. This way, dYdX can bridge digital assets, such as stablecoins, directly from other secured chains on Cosmos. Top priorities in development include the transfer of collateral for trading from/to blockchains such as Ethereum as well as centralized exchanges. Since its inception last February, the protocol has processed over $626.6 billion in digital asset derivatives trading volume.
Attackers have exploited a bug in the Osmosis exchange to the tune of $5M as FireStake validators admit to their role in racking up roughly $2M before stepping forward.
Osmosis, a decentralized exchange built on the Cosmos network was halted just before 3am ET on June 8 after attackers exploited a liquidity provider (LP) bug to the tune of roughly $5 million.
The bug was first identified in a Reddit post on the official Cosmos Network page. The user, Straight-Hat3855, brought attention to a “serious problem” with Osmosis (OSMO) that allowed users to arbitrarily grow LPs by 50% simply by adding and removing liquidity. The Reddit post was quickly removed but not before malicious actors took advantage of the bug, which saw approximately $5 million removed from liquidity pools on the Osmosis exchange.
Following the exploit and the identification of the LP bug, the Osmosis exchange was halted at a block height of 4,713,064, according to an announcement from Osmosis block explorer, Mintscan.
Explaining how the bug worked in a series of posts in the Osmosis Discord was project moderator RoboMcGobo, who detailed how the flaw allowed attackers to add liquidity to any Osmosis LP and then immediately withdraw it for a 150% return on their initial deposit: “Essentially, the function would give 50% too many LP shares for a join,” RoboMcGobo wrote just after 4pm on Wednesday, adding: “If one should have gotten 10 LP shares, 15 would be achieved out.”
RoboMcGobo explained that the bug was “exploited intentionally by a small number of users” and “seemingly unintentionally by a few others.” According to a Twitter thread from Osmosis four attackers were responsible for 95% of the total exploit amount, with two of the attackers voluntarily stepping forward to return stolen funds.
Update:
— Osmosis (@osmosiszone) June 8, 2022
- 4 individuals have been identified that account for 95%+ of realized exploit amount.
- 2 out of the 4 individuals has proactively expressed intent to return the exploited amount in full.
Roughly one hour following Osmosis’ tweet concerning the attack, FireStake, a validator in the Cosmos ecosystem, posted a Twitter thread admitting that “a temporary lapse in good judgment” saw two members of its team exploit the bug to the extent of roughly $2 million.
Firestake told their 1,700 Twitter followers that they were “thinking about [their] family’s future” when they continued to exploit the bug. However, after admitting to “stressing through the night” about the event, they decided to voluntarily return the funds and “set things straight.”
Dear @osmosiszone community, many of you know about the Osmosis LP bug that occurred yesterday.
— FireStake | Validator (@stake_fire) June 8, 2022
In disbelief of it being real, two members of @fire_stake started testing to see if the bug existed, testing grew into a temporary lapse in good judgment, and...
According to a post from Osmosis co-founder, Sunny Aggarwal, the other two hackers responsible for the theft made a series of transactions to centralized exchanges, which Aggarwal believes will make it easier to track them down.
RoboMcGobo echoed Aggarwal’s words in the project’s Discord, “Funds have been linked to CEX accounts. Law enforcement has been notified… we’re hopeful that the exploiters will do the right thing here so that aggressive action will not be necessary.”
Binance US is now offering crypto staking services and the firm details that seven digital currencies are currently available with annual percentage yields (APYs) up to 18%. Customers can earn yields on proof-of-stake (PoS) cryptocurrencies that include binance coin, solana, avalanche, livepeer, graph, cosmos, and audius. Binance US Adds Staking Services On Twitter, Binance US […]
Both of the new Australian exchange-traded funds by 3iQ Digital Asset Management will feed from its existing Bitcoin and Ethereum ETFs listed on the Toronto Stock Exchange.
A further two cryptocurrency-backed exchange-traded funds (ETFs) have launched on the Cboe Australia exchange on June 7 bringing the total amount of crypto ETFs available to Australian traders to six.
The Canada-based 3iQ Digital Asset Management (3iQ) launched two spot ETFs, the 3iQ CoinShares Bitcoin (BTC) Feeder ETF and the 3iQ CoinShares Ether (ETH) Feeder ETF.
Both of the Australian funds feed from the firm's Canadian ETFs listed on the Toronto Stock Exchange (TSX), the 3iQ CoinShares Bitcoin ETF, and the 3iQ CoinShares Ether ETF. The underlying assets of the Canadian ETFs are holdings of BTC and ETH held in cold storage by the Gemini crypto exchange.
3iQs funds join the Bitcoin and Ethereum backed funds by 21Shares and Cosmos Asset Management the latter of which saw launch delays in April due to a still-unnamed service provider needing time to support the launch.
Three ETFs, a Bitcoin and Ethereum ETF by 21Shares and a Bitcoin ETF by Cosmos eventually opened to trading in early May becoming the first crypto ETFs in Australia. Cosmos later released an Ethereum-backed fund on May 31.
Much like 3iQ funds, the underlying assets for the Cosmos ETFs are direct investments into the Canadian Purpose Bitcoin and Ethereum ETFs whilst the funds issued by 21Shares are backed by Bitcoin and Ethereum reserves held in cold storage by Coinbase.
A point of difference is that 3iQ boasts is having the lowest expense ratio out of the six, at 1.2%, — 0.05% lower than the 21Shares and Cosmos ETFs each with an expense ratio of 1.25%.
Related: Amid crypto bear market, institutional investors scoop up Bitcoin: CoinShares
The three original funds by 21Shares and Cosmos had a sluggish start to trading only seeing $1.3 million in volume on the day of launch, far below the estimated $1 billion of expected inflows. The two 21Shares funds received a total of around $936,500 of total inflows, whilst Cosmos’ Bitcoin fund received just over $398,000.
According to data from Cboe at the time of writing, the two 3iQ ETFs have seen a volume of 13,592 and 9,754 shares traded of the Bitcoin and Ethereum ETFs, accounting for around $73,415 and $73,605 respectively to a total of over $147,000, much smaller than its competitors.
Some stablecoins have failed to deliver the dollar's stability to crypto traders long before TerraUSD's collapse.
The recent collapse of the once third-largest stablecoin, TerraUSD (UST), has raised questions about other fiat-pegged tokens and their ability to maintain their pegs.
Stablecoin firms claim that each of their issued tokens is backed by real-world and/or crypto assets, so they behave as a vital component in the crypto market, providing traders with an alternative in which to park their cash between placing bets on volatile coins.
They include stablecoins that are supposedly 100% backed by cash or cash equivalents (bank deposits, Treasury bills, commercial paper, etc.), such as Tether (USDT) and Circle USD (USDC).
At the other end of the spectrum are algorithmic stablecoins. They are not necessarily backed by real assets but depend on financial engineering to maintain their peg with fiat money, usually the dollar.
However, following the collapse of UST—an algorithmic stablecoin, that stability is now in doubt.
The distrust has led to massive outflows from both asset-backed and algorithmic stablecoin projects. For instance, the market capitalization of USDT has fallen from $83.22 billion on May 9—the day on which UST started losing its U.S. dollar peg—to $72.49 billion on June 2.
USDT drifted from its one-to-one dollar parity while suffering outflows, albeit briefly. Unfortunately, that is not the case with algorithmic stablecoins; some are still trading below their intended fiat pegs, as discussed below.
USDX, the Kava Network's native "decentralized" stablecoin, was notorious for mostly trading $0.02–$0.04 cents below the dollar. But, it moved further away from its near-perfect peg with the greenback amid the TerraUSD debacle.
In detail, USDX dropped to its lowest level on record—at $0.66—on May 12. The USDX/USD pair has been attempting to reclaim its dollar peg ever since and was changing hands for around $0.89 on June 2, as shown below.
Simultaneously, USDX has witnessed outflows worth $60 million since May 9, illustrating that traders are redeeming their tokens.
Kava Labs, the development team behind Kava Network, noted that USDX lost its dollar peg due to its exposure to UST as one of its collaterals. Meanwhile, a decline across USDX's other reserve assets, including KAVA, Cosmos (ATOM), and Wrapped Bitcoin (WBTC), also shook its stability.
1/ $UST has (obviously) significantly de-pegged and has promulgated some risk to downstream protocols that use it. The UST risk in Kava is isolated and can be tolerated with current system parameters.
— Scott Stuart (@Scott_Stuart_) May 11, 2022
In May, Scott Stuart, the co-founder and CEO of Kava Labs, asserted that USDX would retain its dollar peg after they flush UST out of their ecosystem.
Vai (VAI) is another victim of the ongoing stablecoin market rout.
The algorithmic stablecoin, built on the Binance Smart Chain-based Venus Protocol — a lending platform, traded for $0.95 this June 2. However, like USDX, the token is notorious for trading below its intended dollar peg since launch.
Related: DeFi protocols launch stablecoins to lure new users and liquidity, but does it work?
For instance, in September 2021—long before the TerraUSD's collapse, VAI had dropped as low as $0.74. In addition, the depeg scenario occurred after Venus Protocol suffered a $77 million loss on bad debts in May 2021 due to large liquidations in its lending platform.
The market cap of VAI was $272.84 million in May 2021. But after the Venus debt fiasco, coupled with TerraUSD's collapse, VAI's net valuation dropped to almost $85 million, suggesting a substantial plunge in its demand.
Dai (DAI), an algorithmic stablecoin native to Maker—a peer-to-contract lending platform, performed exceptionally well versus its rivals, never fluctuating too far from its promised dollar peg even though witnessing a 20% decline in its market capitalization since May 9.
FRAX and MAI, other algorithmic stablecoin projects, also maintained their dollar peg during TerraUSD's crash.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
