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CFTC Charges Man Behind $100,000,000 Attack on Solana-Based Trading Platform With Market Manipulation

CFTC Charges Man Behind 0,000,000 Attack on Solana-Based Trading Platform With Market Manipulation

The U.S. Commodity Futures Trading Commission (CFTC) has filed market manipulation charges against the man behind the $100 million exploit of Mango Markets, a Solana (SOL)-based decentralized finance (DeFi) trading platform. In a complaint filed on Monday, the CFTC argues that Avraham Eisenberg “engaged in a manipulative and deceptive scheme to artificially inflate the price […]

The post CFTC Charges Man Behind $100,000,000 Attack on Solana-Based Trading Platform With Market Manipulation appeared first on The Daily Hodl.

5 times crypto appeared in pop culture in 2024

3 key Solana metrics explain exactly why SOL price is down

SOL price is down 29% since August, and three key metrics suggest bulls are in no rush to return.

The past eighty days have been moderately bearish for cryptocurrencies as the altcoin market capitalization declined by 16%. The downside movement can be partially explained by the United States Federal Reserve’s quantitative tightening, rising interest rates and the halting of asset purchases. Although they are aimed at curbing inflationary pressure, the policy also increases borrowing costs for consumers and businesses.

The downfall of Solana’s SOL (SOL) token has been even more brutal, with the altcoin facing a 29% correction since August. The smart contract network focuses on low fees and speed, but the frequent outages highlight a centralization issue.

Solana/USD price (blue) vs. altcoin capitalization (orange). Source: TradingView

The latest setback occurred on Sept. 30 after a misconfigured validator halted blockchain transactions. A duplicate node instance caused the network to fork, as the remaining nodes could not agree on the correct chain version.

Recently, Solana co-founder Anatoly Yakovenko placed his bets on Firedancer, a scaling solution developed by Jump Crypto in partnership with the Solana Foundation. Dubbed the long-term fix to the network outage problem, the mechanism should be ready for testing in the coming months.

On Oct. 11, Solana-based decentralized finance exchange Mango Markets was hit with an exploit of over $115 million. The attacker successfully manipulated the value of MNGO native token collateral, taking out “massive loans” from Mango’s treasury.

Solana’s TVL and the number of active addresses dropped

Solana’s primary decentralized application metric started to display weakness earlier in November. The network’s total value locked (TVL), which measures the amount deposited in its smart contracts, broke to its lowest level since September 2021 at 30.4 million SOL.

Solana network total value locked, SOL. Source: DefiLlama

There are other factors that influence Solana’s decrease in value and TVL. To confirm whether DApp use has effectively decreased, investors should also analyze the number of active addresses within the ecosystem.

Solana DApps 30-day on-chain data. Source: DappRadar

Oct. 19 data from DappRadar shows that the number of Solana network addresses interacting with decentralized applications declined in 13 of the top 20 DApps. The reduced interest was also reflected in SOL’s futures markets.

Related: Moola Market attacker returns most of $9M looted for $500K bounty

Fixed-month contracts usually trade at a slight premium to spot markets because investors demand more money to withhold the settlement. Whenever this indicator fades or turns negative, this is an alarming, bearish red flag signaling a situation known as backwardation.

Solana 3-month futures annualized basis. Source: Laevitas

The above chart shows how Solana futures have been trading at a 7% discount versus the current spot price. This data is concerning since it signals a lack of interest from leverage buyers.

SOL will continue to underperform until it flips these metrics

It’s difficult to pinpoint the exact reason for Solana’s price drop, but it is clear that centralization issues, a decrease in the network’s DApp use and fading interest from derivatives traders certainly played a role.

Should the sentiment flip, there should be an inflow of deposits, increasing Solana’s TVL and the number of active addresses. Consequently, the above data suggest that Solana holders should not expect a price bounce anytime soon because the network health metrics remain under pressure.

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.

5 times crypto appeared in pop culture in 2024

Crypto Trader Admits Involvement in Solana-Based DeFi Protocol’s Recent $100,000,000 Loss

Crypto Trader Admits Involvement in Solana-Based DeFi Protocol’s Recent 0,000,000 Loss

A crypto trader has stepped into the spotlight in an effort to clear the air on how Mango Markets, a Solana-based decentralized finance (DeFi) trading platform, recently lost $100 million. Avraham Eisenberg, who runs a trading firm and describes himself as a “digital art dealer,” went public on Saturday as the brains behind the “legal” […]

The post Crypto Trader Admits Involvement in Solana-Based DeFi Protocol’s Recent $100,000,000 Loss appeared first on The Daily Hodl.

5 times crypto appeared in pop culture in 2024

Mango (MNGO), Kin (KIN), Orca (ORCA), Star Atlas (ATLAS & POLIS), Bonfida (FIDA), Step Finance (STEP), Saber (SBR) Trading Start January 27 – Deposit Now

We’re thrilled to announce that Kraken now supports Mango (MNGO), Kin (KIN), Orca (ORCA), Star Atlas (ATLAS & POLIS), Bonfida (FIDA), Step Finance (STEP) and Saber (SBR)!  Funding and Trading Funding is live, and trading will begin on January 27. Keep an eye on the…

The post Mango (MNGO), Kin (KIN), Orca (ORCA), Star Atlas (ATLAS & POLIS), Bonfida (FIDA), Step Finance (STEP), Saber (SBR) Trading Start January 27 – Deposit Now appeared first on Kraken Blog.

5 times crypto appeared in pop culture in 2024