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Friend.tech adds new security upgrade in wake of SIM-swap attacks

The 2FA security measure is optional for Friend.tech users seeking additional security on the platform.

The team behind the decentralized social media platform Friend.tech has added a new security feature amid attempts to stem a flood of SIM-swap attacks targeting its users.

“You can now add a 2FA password to your Friend.tech account for additional protection if your cell carrier or email service becomes compromised,” the team explained in an Oct. 9 post on X (formerly Twitter).

Friend.tech users will be prompted to add another password in when signing onto new devices.

“Neither the friendtech nor Privy teams can reset these passwords, so please use care when using this feature,” Friend.tech added.

The latest change follows several SIM-swap attacks targeting Friend.tech users since September.

On Sept. 30, froggie.eth was among the first in a string of Friend.tech users to be compromised by a SIM-swap attack, urging others to stay vigilant.

More Friend.tech users came forward with similar stories in the following days with an estimated 109 Ether (ETH), worth around $172,000, stolen from four users within a week. Another four users were targeted over a 24-hour period just days later, with another $385,000 worth of Ether stolen.

Friend.tech had already updated its security once on Oct. 4 to allow users to add or remove various login methods in an attempt to mitigate the risk of SIM-swap exploits.

Several observers criticized Friend.tech for not implementing the solution sooner.

“Finally,” one user said, while another said: “took you long enough.”

However, a prominent creator on Friend.tech, 0xCaptainLevi, was more optimistic, stressing that 2FA is a “big deal” and can help push the social media platform to unseen heights:

In an Oct. 8 X thread, Blockworks founder Jason Yanowitz revealed one of the ways the SIM-swap attacks are being orchestrated. The process involves a text message that asks the user for a number change request, where users can reply with “YES” to approve the change or “NO” to decline it.

If the user responds with “NO” — the user is then sent a real verification code from Friend.tech and is prompted to send the code to the scammer’s number.

“If we do not hear a response within 2 hours, the change will proceed as requested,” a follow-up message shows.

"In reality, if I sent the code, my account would get wiped," he said.

Related: Friend​.tech copycat Stars Arena patches exploit after some funds drained

The total value locked on Friend.tech currently sits at $43.9 million, down 15.5% from its all-time high of $52 million on Oct. 2, according to DefiLlama.

Change in total value locked on Friend.tech since Aug. 10. Source: DefiLlama.

Cointelegraph reached out to Friend.tech for comment but did not receive an immediate response.

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‘Green ETH’ narrative to drive investment and adoption, says pundits

Post-Merge Ethereum has now detached itself from the “crypto mining is bad for the environment” narrative, following its transition to proof-of-stake.

The shedding of Ethereum’s energy-intensive proof-of-work (PoW) system is expected to see Ether (ETH) “flow into the institutional world,” according to a number of fund managers and co-founders.

On Sept. 15, Ethereum officially transitioned to a proof-of-stake (PoS) consensus mechanism, which is expected to cut energy consumption used by the network by 99.95%, according to the Ethereum Foundation.

The upgrade effectively ended the need for the Ethereum network to rely on miners and energy-guzzling mining hardware to validate transactions and build new blocks, as these functions are now replaced by validators who “stake” their ETH.

In a statement to Cointelegraph, Charlie Karaboga, CEO and co-founder of Australian fintech company Block Earner said the network’s transition to PoS would “drive the future of money to be more internet-based.”

He said that Ethereum would become “the settlement layer that everyone will accept and trust — especially when the spotlight is shining brighter than ever on the issue of sustainability in crypto mining.”

Markus Thielen, Chief Investment Officer of digital asset manager IDEG said that he had been in discussions with sovereign wealth funds and central banks to help build their digital asset portfolios, but direct investment had often been “voted down due to energy concerns.”

But now that the Ethereum network has transitioned to PoS, this issue is much less of a concern, he said:

“While demand has been strong, the missing link has been an underlying zero-emissions, financial infrastructure. With Ethereum moving to PoS, this clearly solves this last pillar of concern.”

Henrik Andersson of Apollo Capital told Cointelegraph that ESG had become a “big factor” behind institutional investment decision making in the last few years.

Andersson said he believes the 99.95% energy consumption cut on Ethereum would dramatically improve ETH’s ESG score, which in turn would “make it more appealing for institutional investors” over the long-term.

Blockworks co-founder Jason Yanowitz told his 92,900 followers on Sept. 15 that “Green ETH” will be the “best narrative” in crypto’s history, with crypto mining and PoW long plaguing the industry.

Related: How blockchain technology is used to save the environment

Yanowitz noted that until now, the “Bitcoin is bad for the environment” narrative has been “so impactful,” adding it spread like wildfire” and “has probably had the most negative impact on the asset's performance.”

“Most large institutions now have ESG mandates,” said Yanowitz.

“Fidelity, BlackRock, Goldman, etc... whether or not they like it, they now have to consider the environmental impacts of their portfolios.”

But that is now old news for Ethereum, with Yanowitz adding that the most important takeaway from the Merge is that “Ethereum becomes green” which becomes highly appealing to large corporations who have ESG mandates to comply with:

“This will be the best narrative crypto and ETH has ever seen. It will flow into the institutional world, where investors will buy ETH because it satisfies their ESG mandate.”

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