Cryptocurrency Market News From tradecoind2.com

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The “fake deposit” attack enables bad actors to execute a transfer where the requested value is larger than what the user actually owns.

Ethereum staking protocol Lido Finance has assured both Lido DAO (LDO) and staked-Ether (stETH) tokens remain safe despite hackers allegedly exploiting a known security flaw in LDO’s token contract.

Lido didn’t confirm any exploits, but acknowledged the security flaw was known and reassured LDO and stETH funds remain safe in response to a Sept. 10 post by blockchain security firm SlowMist.

SlowMist said LDO’s flawed token contract allows bad actors to facilitate “fake deposit” attacks on exchanges because LDO’s token contract enables users to execute transactions even where they don’t have sufficient funds. This code deviates from the Ethereum Request for Comment 20 (ERC-20) token standard, according to SlowMist.

However, Lido Finance argued the flaw is built into all ERC-20 tokens — not just Lido’s LDO token:

https://twitter.com/SlowMist_Team/status/1700782725593268448

SlowMist said the “fake deposit” attacks came from LDO’s token contract executing transfers where the value is larger than what the user actually owns, triggering a false return as opposed to reverting the transaction. While the firm said Lido’s token contract has recently been exploited via this attack, no on-chain evidence was provided.

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

Meanwhile, on-chain analyst “Hercules” explained on Sept. 10 that the security flaw may not be picked up by cryptocurrency exchanges.

SlowMist recommends LDO holders to also check the return values of the token contract transfers in addition to the success or failure of a transaction.

The blockchain security firm concluded that token contract implementations and behaviors vary by project and to conduct comprehensive testing before integrating any new tokens.

However, Lido highlighted in the official Ethereum Improvement Proposal document — co-authored by Vitalik Buterin in November 2015 — that both the “transfer” and “transferFrom” functions must return the transfer status and are only recommended to revert a transaction in exceptional cases.

https://twitter.com/LidoFinance/status/1700888072299462895

To resolve the security flaw, Lido confirmed the LDO token integration guides will soon be updated.

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SOL goes bear crazy Short – What’s next?

SOL’s market landscape is becoming increasingly negative and the numbers don’t lie. Total open interest is rising, reaching a staggering 11.7 million. Meanwhile, aggregate trading volume is plummeting and liquidations spiked to 3,300 contracts. What’s happening?

First, let’s talk about price. According to the most recent data, SOL is trading at $17.80. That number is a far cry from its glory days, and it’s not just retail investors feeling the heat. The DeFi scene on Solana is also showing signs of stress, with liquidity and trading volumes decreasing.


Source: TradingView
 

Now, let’s get down to the nitty-gritty: the upcoming liquidation of FTX. As mentioned in previous articles, FTX has been licensed to liquidate a large amount of its assets, including SOL. The exact time has not yet been announced, but the possibility of it happening is enough to make the market worried.

So, why are there so many Shorts? Total open interest shows that bears are rushing in, betting SOL price will continue to plummet. The sharp increase in liquidation proves that many traders are making a mistake when betting on this downtrend. It’s a vicious cycle, and the upcoming liquidation of FTX could be the catalyst that sends SOL spiraling further and further.

In short, SOL is caught in a spiral of bearish sentiment and data points to further weakness. Whether it’s growing open interest, falling trading volumes or a spike in liquidations, all signs point south. And don’t forget to liquidate FTX, which can act as a direct “killing punch”.

Investors and traders alike should be careful. Solana’s current market dynamics are filled with risks and the bearish indicators are too obvious.

SOL incident after
FTX  news

SOL price dropped sharply in the past 2 days due to increased selling pressure.

Major support level: $17

Major resistance: $20

The price of SOL dropped after news that FTX would liquidate its SOL position. Even if some coins are vested and cannot be sold, this news has caused market panic. Traders holding Solana positions quickly liquidated and this is reflected in the price drop of 10% compared to the previous week.


Source: TradingView
 

With sellers having full control over price action, the best hope for SOL is to hold at the $17 support level, which is the most important level at the moment. If that level fails to halt the downtrend, a return to $15 is likely next. That level was last seen in June.


Source: TradingView
 

Lower bottom on MACD
The 3-day MACD chart has made a lower low. This is bad news for SOL as it suggests sellers may continue to put pressure on prices and lower prices in the future. The daily RSI could also reach the oversold zone if SOL continues to recover at $17.


Source: TradingView

In general, the trend of SOL is bearish.


It is expected that the price will continue to decline and test the key support level at $17. If that holds then the bulls may have a chance to reverse this downtrend. Currently, market sentiment is bearish and the FTX news may continue to steer buyers away from SOL.

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In a large-scale cross-border operation, four Chinese nationals and one Lao national were arrested for their alleged involvement in a multi-million dollar cryptocurrency scam that left a trail of devastation and damages amounted to more than 2.7 billion baht (76 million USD), according to the Cyber ​​Crime Investigation Bureau (CCIB).

As  Bangkok Post  reported, the scam scheme trapped at least 3,280 victims through a fraudulent cryptocurrency investment platform called BCH Global Ltd.

The victims, who started reporting the scam to the police last November, were tricked into investing in gold and USDT. Further investigation by CCIB revealed that many of the individuals running this scam platform were involved in other similar scams. Their arrest was made possible through global cooperation between Homeland Security Investigations and other international law enforcement agencies.

Marking a significant step forward in this transnational crime case, the five suspects were charged with public fraud, conspiracy to commit transnational crimes, money laundering and entering false information into a computer system.

The Bangkok Post reported that the Attorney General’s Office moved to prosecute the suspects on August 10, with Anti-Money Laundering Office officers confiscating assets worth 585 million baht ($16,469,130) from suspects on September 4.


CCIB spokesperson Kissana Phathanacharoen emphasized to the Bangkok Post that the agency will continue to contact victims to ensure they know their legal rights. Victims can complain through the CCIB hotline or at www.thaipoliceonline.com.

In a broader context, Phathanacharoen considers investment scams to be the most damaging scams reported by the police. Often, victims, many of whom have invested their life savings or taken out second mortgages, are lured into these schemes by strangers who promise high, guaranteed returns. in a short time.

To deal with this growing threat, CCIB advises the public to be vigilant, primarily when dealing with foreign online platforms and mobile applications that attract investments. They also recommend checking the registration numbers of investment companies and verifying the authenticity of investment websites through www.checkdomain.thaiware.com.

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FTX filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware. The announcement sent shock waves throughout the market, as many discovered FTX held a staggering $3.4 billion worth of cryptocurrency as of August 31, 2023. The filing reveals these assets, with FTX holding a series of popular coins.

FTX’s cryptocurrencies as of August 31, 2023 include

1. $1.16 billion SOL

2. $560 million in BTC

3. $192 million ETH

4. $137 million APT

5. $120 million USDT

6. $119 million XRP

7. $49 million BIT

8. $46 million STG

9. $41 million WBTC

10. $37 million WETH


Source: FTX

These numbers paint a vivid picture of the enormous wealth that FTX has amassed in crypto. However, the situation is even more complicated. The bankruptcy filing also revealed there are 438 investment portfolios related to FTX, holding approximately $4.5 billion in investments. These portfolios are not included in the previously stated $7 billion in total assets, and their current value is still being calculated. Prominent entities such as Genesis, Yugalabs and Paradigm are among the notable investors in this category.


Source: FTX

As bankruptcy proceedings continue, the cryptocurrency market is closely watching all developments. Internal sources indicate that the bankruptcy court will likely approve FTX’s liquidation plan before September 13, 2023. The upcoming decision adds another layer of uncertainty to an already volatile market.

The risk of liquidating $3.4 billion in coins raises questions about the impact on the market, as a significant sell-off of such magnitude could cause price volatility and impact investor confidence. FTX’s troubles serve as a stark reminder of the challenges and risks involved in the digital currency industry.

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According to executives at Korea Blockchain Week, the future of blockchain will be an interoperable one, killing “chain tribalism,” increasing “hundreds of chains” along with an end to bridge hacks. cross-chain connection.



Supporting the claims are several products scheduled for release before the end of the year that could enhance blockchain interoperability efforts significantly compared to current solutions. According to executives, the products in use do not make sense and are attractive places for hackers.

Vance Spencer, co-founder of crypto-focused venture firm Framework Ventures, told KBW that with more solutions coming soon, including Chainlink’s Cross-Chain Interoperability Protocol (CCIP), there will soon be no more problems. What is the problem with the blockchain that a project uses?

He said most startups are starting out using layer 2 solutions like Optimism or Arbitrum but will soon start wanting their own rollups.

“It’s like everyone is trying to create a standard,” he said.

In a cross-chain interoperable future, the model will change and “it really doesn’t matter which rollup you participate in,” Spencer said.

“In the future, it will probably just be: Can your contract talk to my contract?”

Spencer gave the example of CCIP, which allows users to own assets on one chain and interact with contracts on another chain using cross-chain messages instead of blockchain bridges.

ZetaChain core contributor Brandon Truong argues that it works in a similar way to CCIP – the main difference is that it is sent from ZetaChain’s network.

Truong added they see interoperability becoming the norm with new app builders and there will be less “chain tribalism,” with more focus on utility.

Many legacy blockchain bridge solutions are “fragmented and often insecure.”

Another product is the upcoming MetaMask Snaps, which will allow developers to launch applications that extend functionality to cryptocurrency wallets – allowing use with other blockchains, including Bitcoin, Solana, Avalanche and Starknet .

Hundreds of chains

Speaking at a conference at KBW, Georgios Vlachos, co-founder of cross-chain protocol Axelar believes that, at some point, there will be “hundreds of chains” handling “significant economic activity.”

“At this point, I think it’s undeniable how many important people and companies in this space are building cross-chain and being encouraged to launch their own layer 1.”

Vlachos wants more blockchains because he believes that one blockchain will not be able to handle more than 10 million transactions per day – much lower than the nearly 530 million average daily transactions that giant Visa processed in 2022 .

“If we want to be the foundational architecture for Web2, we need to scale this a lot and this is really difficult. The answer is to scale horizontally and create lots of different blockchains.”

Cross
-chain
bridge
: Eliminate
a lucrative place for
hackers
Currently, users wanting to send assets between networks primarily use blockchain bridges, which founder and CEO Ramani “Ram” Ramachandran says are vulnerable to hacking and will soon be replaced by other cross-chain solutions – including a solution according to his protocol.

Cross-chain bridges rely on locking value to be represented on another blockchain, making them an attractive target and why “so many bridges have been hacked,” Ramachandran explained at KBW.

“It’s extremely inefficient and it’s a huge risk because then you have $1 billion locked up in the bridge and hackers around the world are really hungry, trying to break in and siphon it off.”

Ramachandran said one workaround to overcome this problem is to source liquidity from multiple wallets – a solution that Router plans to launch in the coming weeks.

Those who want to transfer funds between chains will use a tool that more closely resembles a peer-to-peer transfer, with an intermediary taking on the role of executing cross-chain swap orders for a fee.

 “This intermediary acts as a courier. They complete the goal and then submit proof that says, “I did this.” Now give me the money,” Ramachandran explained.

“No stable liquidity, locked on centralized bridge or semi-bridge, all in intermediary wallet.”

Adapt or perish
However, Chainlink co-founder Sergey Nazarov said in his keynote at KBW that the need for immediate cross-chain interoperability is not only for the benefit of users but is also necessary for the industry to consolidate. reinforce its relevance by providing real-world use cases.

He believes that successful Web3 applications must be able to connect to all blockchains easily and that users can seamlessly use applications across chains “without worry.”

The idea of ​​choosing a blockchain and being “stuck” there with its market, its infrastructure “really doesn’t make sense because that’s not how the Internet works.”

 “Our industry will rely on the ability to provide use cases for reliable systems that do not exist today. If users place value on an application, is that application secure and reliably accessible when they move it elsewhere? If we don’t meet that minimum standard, we’re going to be in a situation where to people this looks like a toy or like a confusing idea.”

Nazarov thinks banking systems will bring the next level of Web3 usage and adoption due to their value.

“Frankly, our industry needs to find a way to take the value in the bank and put it on the blockchain. Global banks and financial systems see a lot of value in blockchain and digital assets. Chainlink is researching how to connect banks with each other and with public blockchains so that the value of banks “flows into the public blockchain world.”

The problem Nazarov sees is the technical and legal barriers between banks and blockchain when both want to combine.

“At least to me, it’s absolutely clear that the banking and public blockchain world wants to connect, but they can’t for two reasons: There’s no legal clarity on how to connect and the technical process connection algorithm does not exist. Frankly, the more value that flows into our industry, the better off we all are.”

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In 2023, a notable wave of “Sleeping Bitcoin” transactions reappeared, totaling a staggering 37,330 BTC worth $958 million based on current BTC rates. Throughout the year, analysis showed that inactive Bitcoin wallets from 2010 and 2011 were becoming more scarce. However, occasionally they stir again, awakening after more than 10 years of inactivity.

2023: $958 million “Sleeping Bitcoin” returns
In recent years, the author has diligently tracked the movements of dormant Bitcoin. Notably, in 2020 and 2021, many transactions appeared from 2010-era wallets. One whale repeatedly issued batches of 20 block rewards multiple times during these years, each batch holding 1,000 BTC.

Currently, such large-scale movements have become rare. However, just last month, a wallet that was dormant in 2010 became active again, transferring 1,005 BTC after more than a decade of silence. “Sleeping Bitcoin” refers to Bitcoin funds that remain untouched in their wallets for extended periods of time.


Amount of Sleeping Bitcoins Spent by Year of Creation and Month in 2023, as of September 11 | Source: btcparser.com.
 

Think of them like dusty old coins in a jar that haven’t been used or moved in years. These Bitcoins have not been traded or sold, even if the value of BTC increases or decreases significantly. Maybe the owner lost access to them, forgot about them, or simply kept them as a long-term investment.


Amount of Sleeping Bitcoins Spent by Year of Creation and Month in 2023, as of September 11 | Source: btcparser.com

When these dormant coins change, it becomes clear to the public that the owners are still in control of the assets, choosing to relocate or spend them. The majority of these sleeping Bitcoins remain unsettled, meaning even the smallest fraction cannot be traded until they are detected moving again.


Total BTC transferred by year of creation and by month in 2023 | Source: btcparser.com

For example, on April 22, 2023, block rewards originating in 2010 were transferred after many years of inactivity. However, a miniscule transfer of 0.00001094 BTC in 2021 means that by 2023, blockchain analysts tracking dormant Bitcoins have overlooked the transaction, as the address has lost its status. “pure” state after that 2021 operation.


Total BTC transferred by year of creation and by month in 2023 | Source: btcparser.com.

In 2023, data from btcparser.com revealed a staggering 37,330.5 BTC returned, originating from inactive accounts from 2010 to 2017. At today’s rates, this treasure trove worth a whopping $958 million. The breakdown for the year shows some intriguing trends: from January to September 11, 2023, there were 9 transactions from 2010-era wallets.

The following years saw 16 deals from 2011, 40 from 2012, 95 from 2013, 81 from 2014, 77 from 2015, 232 from 2016 and 135 deals from 2017. According to the year’s totals Today, dormant Bitcoin has resurfaced with a total of 685 transactions. Dormant Bitcoin’s activity in 2023 epitomizes the long-standing mystery of dormant digital assets.

While many of these long-dormant wallets stem from the network’s infancy, their occasional reactivation has sparked curiosity. With each passing year, the number of unsettled Bitcoins has gradually decreased since the early stages of 2010 and 2011 underscoring the evolving landscape of cryptocurrency ownership and the unpredictable nature of digital wealth.

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https://f66-zpg-r.zdn.vn/7425349223065167894/b2ea1a6e83bb56e50faa.jpg

Friend Tech, the organization behind the Social-Fi app, has once again made headlines with an impressive milestone. According to the latest data from NFTgators, Friend Tech has achieved a staggering accumulation of over 80,000 ETH inflows, from a staggering 211,000 unique users and supported through 3.7 million transactions. There were 66,700 buyers and 144,300 sellers, showing the growing popularity of this cutting-edge platform.

Statistics revealed by NFTgators depict a significant increase in Friend Tech’s activities, especially since September 10. On average, the platform recorded daily inflows of up to 2,400 ETH across 113,000 transactions, marking an impressive increase in user engagement and investment. Even more notable is the average inflow per transaction, which stands at 0.02 ETH, or about $40, highlighting Friend Tech’s reach to a wide range of users. Furthermore, the platform generates an impressive daily fee of 122.4 ETH, which is equivalent to a staggering $197,000.


Source : NFTgators

To get a clearer picture of Friend Tech’s financial success, let’s look at the numbers. Total fees generated by Friend Tech to date have reached 4,000 ETH, illustrating its lucrative nature. This financial milestone demonstrates the platform’s ability to deliver significant returns to users, further driving interest and investment.

Total value locked increased beyond $20 million
Friend Tech’s recent achievements go beyond impressive transaction numbers and fees. As AZCoin News previously reported, Total Value Locked (TVL) on Friend.tech has more than doubled, surpassing the $20 million mark in just the past 4 days. The rapid increase in TVL reflects growing confidence and trust in Friend Tech’s capabilities.

In another monumental achievement, trading volume on Friend.tech skyrocketed to a staggering $12.3 million on September 9, ranking as the 3rd highest trading volume ever recorded in NFT and blockchain space. This achievement signifies the platform’s competitiveness and appeal in the highly competitive cryptocurrency market.


Source : TylerD

Perhaps one of the most notable achievements achieved by Friend Tech is its daily trading volume, which has now surpassed OpenSea, one of the most famous NFT marketplaces in the world. Friend Tech’s daily trading volume has increased by over $3 million, showing its ability to compete with and surpass established players in the NFT ecosystem.

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Polkadot (DOT) price has broken below the key horizontal support at $4.40. It hit its lowest weekly close since 2020.

Although the price trades within a short-term correction pattern, this is not enough to negate the long-term bearish structure.

Polkadot price near all-time low

Technical analysis from the weekly timeframe shows that DOT has fallen below a descending resistance line since the yearly high of $7.90 in February 2023. While moving along this line, the price broke below the $4.40 horizontal support zone, which has held steady since the beginning of the year. Breaks from such long-term support levels often cause significant declines.

When combined with a support zone, this line creates a descending triangle, which is considered a bearish pattern. This further legitimizes the break and supports the possibility of a deeper decline.

If the price continues to decline, it could drop another 50% and reach the $2 horizontal support zone. The all-time low in August 2020 forms the support zone.

On the other hand, reclaiming the $4.40 area and the descending resistance line could send DOT up 85% to the $7.50 resistance area.


DOT/USDT Weekly Chart | Source: TradingView
 

The weekly RSI is falling, supporting the continuation of the downtrend. The relative strength index (RSI) serves as a momentum indicator used by traders to assess whether the market is overbought or oversold, guiding them in making decisions about whether to accumulate. or sell an asset.

A reading above 50 and sloping up shows that the bulls still have the advantage. While a reading below 50 shows the opposite. The indicator is below 50 and falling, both of which are considered signs of a downtrend.

DOT Price Prediction: Is There Hope for a Reversal?
Indicators on the six-hour time frame show that the entire decline since July 20 has been contained inside a parallel descending channel. These channels often contain corrective movements. This is inconsistent with a break of long-term support, which is expected to catalyze a significant price drop.

DOT price has bounced off the channel’s support line but is still trading in its lower part.

The RSI indicator gives an interesting signal because it has just moved out of the oversold zone. Last time this happened (green symbol), Polkadot was also trading at the channel’s support line and rallied 11% to the channel’s resistance line.

If the same happens, the price will rally 9% to the channel’s resistance line which will be near $4.30.

Even if this increase materializes, the long-term trend cannot be considered bullish until DOT actually breaks above the channel.


DOT/USDT 6-hour chart | Source: TradingView
 

On the other hand, a breakdown from the channel is likely to accelerate the decline towards the previously stated support at $2.

Despite this bearish forecast, a break above the channel and the $4.40 zone in the process could see it rally 85% to the $7.50 horizontal resistance area.

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In a blog post on Substack, Arthur Hayes, founder of BitMEX, analyzed the correlation between the US Federal Reserve’s (Fed) interest rate policy, the US economy and the $70,000 capital milestone. very elusive for Bitcoin. According to Hayes, the Fed’s mission is to protect financial institutions & manage the nation’s debt and this could unintentionally push the cryptocurrency market towards a brighter future.

The Federal Reserve’s interest rate dilemma

Hayes’ analysis begins by focusing on the Fed’s recent interest rate hike. Since March, the Fed has repeatedly raised interest rates to fight inflation and manage the country’s growing budget deficit. However, the policy has significant consequences for the US Treasury, which must sell an additional $1.85 trillion in bonds by the end of the year to cover existing debt and finance a growing deficit. increase. In fact, the Fed’s rate hikes have increased the interest rate burden on the Treasury.

As of the second quarter, the U.S. Treasury was spending $1 trillion annually to pay interest to bondholders. Hayes argues this essentially amounts to a transfer of wealth to the top 10% of households, as most of the interest rate benefits flow to them.

Fed balance sheet (white) and Bitcoin (yellow) indexed at 100

Big impact on price
Beyond the bond market, Hayes noted that rising costs and limited access to credit have hit product companies hard, with some exceptions like Nvidia. The bond market is predicted to suffer consecutive losses for many years to come in terms of total returns. Stock and bond markets remain below 2021 highs and government tax revenues have plummeted.

The revenue decline has been exacerbated by increased government spending and the widening of the deficit. As the government continues to spend beyond its budget, there will be more demand for bond purchases, leading to higher interest rates. Meanwhile, wealthy savers in America haven’t seen interest rates this high in the past two decades.

Bitcoin is the alternative
Hayes sees a potential way out of this conundrum: Bitcoin. It is no exaggeration to say that this cryptocurrency is an attractive alternative to the traditional banking and investment system. Banks now face unprecedented competition and buying Bitcoin becomes a logical choice.

In Hayes’s view, if there is a financial exit in Bitcoin, investors may stop paying taxes to the government… Hayes also believes that rising interest rates will lead to lower prices of risky assets like Bitcoin. . Currently government bond yields, although looking favorable at 5%, could in fact be closer to -4% considering massive government spending and soaring GDP levels. As a result, risky assets remain more attractive to investors.

Despite repeatedly encountering resistance at the $30,000 mark, Bitcoin is still trading well above the $20,000 level. The key to understanding Bitcoin’s performance, Hayes emphasized, lies not in the Fed’s nominal interest rates but in real interest rates relative to nominal GDP growth in the United States.

Hayes concluded meaningfully that Bitcoin has proven its resilience to the Fed’s continued interest rate increases. He is in favor of the Fed cutting interest rates to near zero and returning to quantitative easing, as he believes that cryptocurrency can thrive in such an environment.

According to Hayes, the unique relationship between Bitcoin and Fed policy is a result of the extremely high debt-to-GDP ratio that has distorted traditional economic relationships. In the final lines of his analysis, Hayes challenges the conventional wisdom used by central banks and governments to address the modern economic situation. He argues that, while new-age people can indeed learn new tricks, those in power must know how to adapt. For those who cannot adapt, Hayes believes that Bitcoin created by Satoshi Nakamoto will serve as a new financial hedge, a perfect alternative.

[NewspaperD2]

In a blog post on Substack, Arthur Hayes, founder of BitMEX, analyzed the correlation between the US Federal Reserve’s (Fed) interest rate policy, the US economy, and the $70,000 capital milestone for Bitcoin. According to Hayes, the Fed's mission to protect financial institutions and manage the nation's debt could unintentionally push the cryptocurrency market towards a brighter future.

The Federal Reserve’s interest rate dilemma
Hayes' analysis begins by focusing on the Fed's recent interest rate hikes. Since March, the Fed has repeatedly raised interest rates to combat inflation and manage the country's growing budget deficit. However, this policy has significant consequences for the US Treasury, which must sell an additional $1.85 trillion in bonds by the end of the year to cover existing debt and finance a growing deficit. The Fed's rate hikes have increased the interest rate burden on the Treasury.

As of the second quarter, the US Treasury was spending $1 trillion annually to pay interest to bondholders. Hayes argues that this essentially amounts to a transfer of wealth to the top 10% of households, as most of the interest rate benefits flow to them.

Big impact on price
Beyond the bond market, Hayes noted that rising costs and limited access to credit have negatively affected product companies, with some exceptions like Nvidia. The bond market is predicted to suffer consecutive losses for many years to come in terms of total returns. Stock and bond markets remain below 2021 highs, and government tax revenues have declined.

The revenue decline has been exacerbated by increased government spending and the widening of the deficit. As the government continues to spend beyond its budget, there will be more demand for bond purchases, leading to higher interest rates. Meanwhile, wealthy savers in America haven't seen interest rates this high in the past two decades.

Bitcoin is the alternative
Hayes sees a potential way out of this conundrum: Bitcoin. Bitcoin is considered an attractive alternative to the traditional banking and investment system. Banks now face unprecedented competition, and buying Bitcoin becomes a logical choice.

In Hayes's view, if there is a financial exit in Bitcoin, investors may stop paying taxes to the government. He also believes that rising interest rates will lead to lower prices of risky assets like Bitcoin. Currently, government bond yields, while looking favorable at 5%, could actually be closer to -4% considering massive government spending and soaring GDP levels. As a result, risky assets remain more attractive to investors.

Despite encountering resistance at the $30,000 mark, Bitcoin is still trading well above the $20,000 level. The key to understanding Bitcoin's performance, Hayes emphasized, lies in real interest rates relative to nominal GDP growth in the United States, rather than the Fed's nominal interest rates.

Hayes concluded that Bitcoin has proven its resilience to the Fed's continued interest rate increases. He favors the Fed cutting interest rates to near zero and returning to quantitative easing, as he believes that cryptocurrency can thrive in such an environment.



According to Hayes, the unique relationship between Bitcoin and Fed policy is a result of the extremely high debt-to-GDP ratio that has distorted traditional economic relationships. In the final lines of his analysis, Hayes challenges the conventional wisdom used by central banks and governments to address the modern economic situation. He argues that, while new-age people can indeed learn new tricks, those in power must know how to adapt. For those who cannot adapt, Hayes believes that Bitcoin, created by Satoshi Nakamoto, will serve as a new financial hedge and a perfect alternative.

[NewspaperD2]

Cryptocurrency exchange CoinEx has fallen victim to a security breach, leaving users concerned about the safety of their digital assets. The breach occurred on September 12, 2023 and was detected by CoinEx’s Risk Control System , leading to an immediate response to investigate and mitigate the situation.

Preliminary findings show that unauthorized transactions involving several cryptocurrencies, including Ethereum (ETH), Tron (TRX), and Polygon (MATIC), took place during the breach. The exact extent of the damage is still being assessed, but it is important to note that the amount of money compromised represents only a small portion of CoinEx’s total assets.

CoinEx was quick to reassure its user base, emphasizing that all of its assets remain safe and unaffected despite the breach. To further protect user funds and conduct a comprehensive review of security measures, the exchange has temporarily suspended deposit and withdrawal services.

One of the most reassuring aspects of CoinEx’s response to the incident is its commitment to fully compensate affected parties. The exchange pledged to compensate 100% of the losses incurred due to this breach, demonstrating its strong dedication to safety and customer satisfaction.

Furthermore, CoinEx promised to provide a detailed timeline and comprehensive report of the breach as soon as possible. This transparency is important in rebuilding trust with the community and addressing concerns about the incident.

The breach was initially discovered by Cyvers Alerts, an independent security company. Deddy Lavid, CEO of Cyvers Alerts, revealed that his company made significant efforts to contact CoinEx executives about the threat. However, it appears that CoinEx did not respond promptly to these efforts, raising questions about communication and cooperation in dealing with the breach.

Cyvers Alerts estimates that the attack caused approximately $27 million in losses. This includes Ethereum ($18.12 million), Tron ($8.5 million), and Polygon ($291,000), along with many other ERC-20 tokens.

https://twitter.com/CyversAlerts/status/1701617501828796524

CoinEx users and the broader cryptocurrency community are concerned about the security of their digital assets following this breach. CoinEx’s quick response, commitment to compensation, and promise of transparency are positive steps toward regaining trust. However, the incident highlights the ongoing need for strict security measures in the cryptocurrency space and the importance of timely communication between exchanges and security firms to prevent and Respond effectively to those violations.

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According to the latest report by crypto market intelligence firm Glassnode, the digital asset market is witnessing a significant liquidity crunch, with both onchain and offchain volumes plummeting. historic low.

As the market returns to a relatively narrow trading range, the drop in liquidity is reminiscent of 2020’s pre-bullish levels, the Glassnode analyst said — “the phrase that best describes it.” The current popular mentality is ‘apathy and extreme boredom'”.

Bitcoin, Ether and stablecoin flows decrease

Stablecoin supply has seen a steady decline since April 2022, which according to Glassnode attributed to various factors, including the collapse of the Terra ecosystem and the opportunity cost of higher interest rates are not passed on to non-yielding stablecoins.

The analyst noted, while Bitcoin and Ether have seen net inflows since the beginning of the year, all three assets have returned to neutral or negative inflows since late August – indicating stagnation and not sure.


Analyze changes in net capital according to market value. Source: Glassnode
 

Among the major stablecoins, Tether’s USDT has expanded its supply by $13.3 billion since its November low. However, USDC and BUSD have seen sharp declines – down 16,000 respectively. 7 billion USD and 20.4 billion USD.

The decline in USDC may reflect US institutions shifting capital to higher interest rate markets. The report states that the decline in BUSD may be due to issuer Paxos suspending token minting operations following enforcement action by the US Securities and Exchange Commission. As a result, Tether’s dominance in the stablecoin market has increased to 69%, up significantly from 44% in June 2022.


Stablecoin supply dominance. Source: Glassnode
 

Onchain and offchain quiet periods
Despite a brief period of volatility coming into the month, Glassnode’s onchain metrics show that total Bitcoin USD trading volume has fallen to a daily average of $2.44 billion, reflecting high levels seen in October 2020, with minimal gains or losses locked in by the market as a whole.


Volume is adjusted to the Bitcoin entity. Source: Glassnode
 

In the offchain derivatives market, Bitcoin’s daily trading volume has also hit historic levels, falling to $12 billion for the first time since its 2022 low.


Bitcoin futures volume. Source: Glassnode
 

However, Glassnode noted some differences in the Bitcoin options market, with trading volumes increasing significantly – although they are still smaller than futures.

 “This may reflect the market’s preference for leverage and the capital efficiency of options to express their views during a period of tighter overall liquidity conditions,” the analyst said.

Strong HODL trend
Glassnode reported that despite the quiet state of the market, the “HODL” trend is still strong. The long-term holder pool, which Glassnode defines as onchain entities holding coins for more than 155 days, has reached an all-time high of 14.7 million BTC. Meanwhile, short-term holding supply – less than 155 days – has fallen to its lowest level since 2011.


Long/Short Bitcoin Hodler. Source: Glassnode
 

Glassnode notes that while profits are gradually increasing for long-term holders, 26.7% of this supply is currently at a loss. However, below the $26,000 price point, short-term holders are almost completely underwater, leaving this more price-sensitive cohort in a bit of a pickle, the analyst said.

[NewspaperD2]

An anonymous person was discovered creating an entire ecosystem, including 21,877 Sybil wallets, private tokens, and even a decentralized exchange (DEX), to distort on-chain activity.

DeFi analyst exposes on-chain fake operation scheme

According to DeFi analyst Lingland (lingland09), the individual injected each of his wallets with a small amount of Ether (ETH), then deployed a smart contract for a non-open source token called Gemstone (GEM). ).

https://twitter.com/lingland09/status/1700970363713167450

After the token was launched , the fraudster developed a personal DEX, slowly making transactions between his wallets to disguise evidence of actual activities. Transactions are cleverly spread out over different months, weeks, and days to mimic the behavior of other L2 projects.

Once live, the DEX was used to increase the liquidity of the GEM token to the tune of 80 ETH, artificially increasing the value of the token.

Lingland adds:

“He then exchanged the Gem tokens he received from 21,877 wallets in Gem/Eth pairs and obtained a profit value of 0.6-0.7 Eth.”

This person also used the same liquidity multiple times to avoid any negative impact from price slippage. As a result, he was able to carry out transactions on the zkSync Era network with minimal costs.

This person also created a trading bot to automate the process, generating 10 trades with a total volume of $10,000 on the zkSync Era network. Notably, the analyst was only able to track a few fake wallets.

“Zkscan Explorer only supports 1,000 history pages per contract. So I can only track 10k wallets tied to this guy’s activity.”

However, Matter Labs (the_matter_labs) was able to identify all 21,877 fake Sybil wallets linked to the Gem token contract.

Suspicious activity related to alleged fake Airdrop
The motive behind this anonymous character’s actions remains unclear. However, the analyst speculates that this individual is a “professional airdrop hunter” who may be preparing for a fake airdrop by generating activity on the zkSync Era network.

Airdrops, a popular marketing tactic in the cryptocurrency world, were exploited by Sybil attackers to defraud users. Airdrops involve distributing free tokens or coins to attract interest from the community. In a Sybil attack, an attacker creates multiple accounts pretending to be real users with the aim of taking advantage of other users.

A recent example is Arbitrum’s March ARB governance token airdrop, which encountered problems due to increased Sybil activity due to ineffective fraud detection mechanisms. According to cryptocurrency security researcher X-explore, more than 279,328 people and 148,595 Sybil addresses exploited these vulnerabilities.

[NewspaperD2]

VeChain (VET) price increased 12% on September 13, likely boosted by the Coinbase listing announcement.

Although the price has formed a bullish pattern, the reaction to the $0.016 area will be crucial in confirming whether the pattern is valid or not.

Will VeChain Price Regain Horizontal Support?

Technical analysis from the weekly timeframe for VET gives mixed results.

The price fell below the $0.016 horizontal zone in June but regained this level (green circle) almost immediately afterwards. This is a bullish sign that often leads to significant upward movements.

However, this did not happen with VET as the upward momentum only lasted two weeks and the price is now at risk of falling below this zone again. Whether the price falls below this zone or creates a higher low will be a key factor in determining the future trend.

A close below this zone could result in a 35% drop to the next support at $0.010. On the downside, reclaiming this zone could lead to an 80% rally to the next resistance at $0.028.


VET/USDT Weekly Chart | Source: TradingView
 

The weekly RSI provided mixed results. Although the indicator remains below 50, it is moving upward, creating a higher low.

Traders use the RSI as a momentum indicator to evaluate whether the market is overbought or oversold to determine whether to accumulate or sell an asset.

When the RSI is above 50 and rising, it shows that buyers have the upper hand. Conversely, when the RSI is below 50 and decreasing, it implies sellers have more control.

VET Price Prediction: Is the double bottom confirmed?
On September 12, Coinbase announced that it would list VeChain and VeThor the next day. This announcement resulted in a 12% price increase.

More importantly, it has formed a double bottom (green symbol) compared to the low made on August 17. The double bottom is considered a bullish pattern, leading to upward movements. up most of the time.

This pattern is even stronger when combined with a significant bullish divergence in the daily RSI (green line).

To confirm the pattern, VET must break above the descending resistance line that has been in place since July. Since this line also coincides with the $0.016 horizontal zone, a break above it would confirm a trend reversal to the upside.


VET/USDT Daily Chart | Source: TradingView
 

Therefore, the future VET prediction will be determined by whether the price will reclaim the $0.016 level or be rejected by it. An 85% increase is possible in the event of a recall, while the price can decrease by 35% in the event of a rejection.

[NewspaperD2]

Cryptocurrency exchange Remitano experienced a large withdrawal under suspicious circumstances on September 14, leading some blockchain analysts to conclude that the exchange may have been hacked.

A total of $2.7 million in cryptocurrency was withdrawn through suspicious transactions. Tether has frozen an address the attacker allegedly used, potentially salvaging $1.4 million in customer cryptocurrency.

At around 7:45 pm Vietnam time yesterday, a Remitano hot wallet started sending funds to an address with no previous history. $1.4 million worth of USDT, $208,000 worth of USDC, and 104,000 Ankr tokens (worth $2,000 at the time) were transferred to  the new address.

Blockchain analytics platform Cyvers has warned the crypto community about the alleged suspicious transactions.

https://twitter.com/CyversAlerts/status/1702348063145165016

Tether then froze the address to prevent the hacker from cashing out USDT, which saved $1.4 million in cryptocurrency. Remitano has yet to issue a statement regarding the incident.

Remitano is a payment processor and peer-to-peer cryptocurrency exchange focused on emerging markets, serving users in Pakistan, Ghana, Venezuela, Cambodia, Kenya, Malaysia, India, South Africa, Vietnam, and Nigeria.

So far, there have been a series of cryptocurrency exchange hacks in 2023 that resulted in private keys being leaked and funds being stolen. US authorities attribute these attacks to the Lazarus Group, a cybercrime organization backed by the North Korean government. The group allegedly stole $41 million from gambling site Stake on September 4 and withdrew $27 million from Coinex on September 12.