Curve Finance’s front end this week became the victim of an exploit that ended with a loss of more than US$573,000. Curve took to Twitter to warn its users of the issue with its site, though luckily the spoofing exploit did not affect the Curve exchange:
On August 9, Twitter user @samczsun alerted the public to the exploit with a tweet that read: “@CurveFinance frontend is compromised, do not use it until further notice!” Despite the Curve team’s quick response to the issue, they were unable to prevent the loss.
The hacker(s) responsible seemingly changed the protocol’s domain name system (DNS), which then allowed them to approve a malicious contract by directing users to a fake clone. In a stroke of luck for Curve, the program’s exchange remained uncompromised, as it utilises a separate DNS provider.
An hour after the initial warning of the exploit, Curve tweeted:
The issue has been found and reverted. If you have approved any contracts on Curve in the past few hours, please revoke immediately. Please use https://t.co/6ZFhcToWoJ for now until the propagation for https://t.co/vOeMYOTq0l reverts to normal
While a significant sum was lost, the quick circulation of information on Twitter regarding the attack on the nameserver and front end may have prevented greater losses.
The Curve decentralised finance (DeFi) protocol is an integral part of the DeFi ecosystem, and exploits such as this prevent other protocols from accessing income sources.
Protocol Exploits Elsewhere
DeFi protocol exploits have proliferated in 2022, with two notable examples occurring in May and June. The first victim was the Fortress protocol, with the crypto borrowing and lending platform losing approximately US$3 million in stolen funds. The Binance Smart Chain (BSC)-based platform had suffered an oracle attack only days prior.
More recently, Terra-based DeFi app Mirror Protocol was the subject of a US$2 million exploit related to Terra blockchain’s recent rebrand to Terra Classic. The exploit almost completely drained the mBTC, mGLXY, mETH, and mDOT pools. Luckily the developers were able to patch the damage before all pools could be drained.
Embattled Asia Pacific exchange Zipmex has announced it will enable its Z Wallet customers to partially withdraw some of their Bitcoin and Ether holdings.
After details of its liquidity crisis emerged last month, Zipmex has named August 11 and 16 as respective dates for releasing “a specific amount” of ether and bitcoin.
Crypto Twitter Questions Zipmex Wording
Predictably, Crypto Twitter was quick to query the vagueness of the Zipmex announcement:
That's a very general statement. What does 'specific amount' entail?? Can be anything from 1 THB to a full payout satisfying all investors!
On July 20, Zipmex halted withdrawals from the platform, citing exposure to Babel Finance and Celsius. Following a restructuring plan, the exchange has been working with customers and regulators to ensure funds are returned. Last week, it announced withdrawals for altcoins including Solana (SOL), Cardano (ADA) and Ripple (XRP).
Zipmex operates in four countries – Singapore, Australia, Indonesia and Thailand – and offers both spot trading for cryptocurrencies and interest on deposits.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Litecoin (LTC)
Litecoin LTC is a cryptocurrency designed to provide fast, secure and low-cost payments by leveraging the unique properties of blockchain technology. The cryptocurrency was created based on the Bitcoin protocol but it differs in terms of the hashing algorithm used, hard cap, block transaction times, and a few other factors. Litecoin has a block time of just 2.5 minutes and extremely low transaction fees, making it suitable for micro-transactions and point-of-sale payments.
LTC Price Analysis
At the time of writing, LTC is ranked the 22nd cryptocurrency globally and the current price is US$62.03. Let’s take a look at the chart below for price analysis:
After setting a low last month, LTC kicked off a with recovery trend to break the weekly highs. The following 70% plummet found support near $44.36, sweeping under the 40 EMA into the 65.8% retracement level before bouncing to resistance beginning at $65.73.
This area could continue to provide resistance, possibly causing a retracement to the 9 EMA and 18 EMA near $69.12, where aggressive bulls might begin bidding. The level near $76.18, which has confluence with the 40 EMA, may see more interest from bulls loading up for an attempt on probable resistance beginning near $82.13.
However, if Bitcoin continues its sideways trend, much lower prices could be seen. The old support near $56.18 could provide at least a short-term bounce. If this level fails, the old monthly lows near $48.65 may also give support and see the start of a new bullish cycle after retesting these support levels.
2. Fantom (FTM)
Fantom FTM is a directed acyclic graph (DAG) smart contract platform providing decentralised finance (DeFi) services to developers using its own bespoke consensus algorithm. Together with its in-house token FTM, Fantom aims to solve problems associated with smart-contract platforms – specifically transaction speed, which developers say they have reduced to under two seconds.
FTM Price Analysis
At the time of writing, FTM is ranked the 53rd cryptocurrency globally and the current price is US$0.4118. Let’s take a look at the chart below for price analysis:
FTM‘s bounce during Q2 ran into resistance near the old monthly highs. This rejection created a set of relatively equal highs near $0.5067, possibly forming the next bullish leg’s target.
Currently, the price is testing possible support near the weekly open, around $0.3865. This level also has confluence with the 80.6% retracement of the current local range and the 18 and 40 EMAs.
If this level fails to provide support, a zone from $0.3574 to $0.3320 might mark a possible swing low or consolidation area. This zone is between the 65.8% and 78.6% retracement of August 2021’s swing.
A more bearish tone in the market could propel the price lower. The lows, near $0.3070, may mark an area of possible support as well as a bearish target.
3. The Sandbox (SAND)
The Sandbox SAND is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralised autonomous organisations (DAOs) and non-fungible tokens (NFTs), the Sandbox creates a decentralised platform for a thriving gaming community. The Sandbox employs the powers of blockchain technology by introducing the SAND utility token, which facilitates transactions on the platform.
SAND Price Analysis
At the time of writing, SAND is ranked the 37th cryptocurrency globally and the current price is US$1.34. Let’s take a look at the chart below for price analysis:
SAND‘s impressive gains during Q1 halted at $3.00 before retracing 85% of the move. This price action created several areas of possible higher-timeframe resistance in the process.
The price found resistance on its last swing upward near $1.40 – an area that could provide resistance again. If this swing high breaks, the price may find resistance near $1.58. If this area does provide resistance, it would suggest the formation of a higher-timeframe consolidation.
The fast move up left little higher-timeframe support. However, a vast zone between $1.28 and $1.24 has provided support before and could give support again on a retest. This zone is between the 71.8%-to-88.6% retracement levels of 2021 Q4’s parabolic move.
Continuation downward through this level, especially if the overall market remains bearish, could retrace most of Q2’s move to the next higher-timeframe support near $1.10.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
This year has thus far offered one compelling case after another on the importance of “not your keys, not your coins”. The latest episode in the crypto lending meltdown is Singapore-based firm Hodlnaut, which yesterday announced it was halting withdrawals:
Dear users, we regret to inform you that we will be halting withdrawals, token swaps and deposits immediately due to recent market conditions. We have also withdrawn our MAS licence application. Here is our full statement https://t.co/5KfHUBzWsn Our next update will be on 19 Aug.
According to the announcement, the firm has frozen withdrawals, deposits and token swaps due to “difficult market conditions”. When asked about whether it was exposed to the collapse of Celsius and Three Arrows Capital, it referred to an earlier Twitter thread claiming it wasn’t:
1/2
Dear users,
We would like to reassure all users of the Hodlnaut platform that we do not have any exposure and loans with Three Arrows Capital or Celsius Network.
While the company indicated it would provide users with an update by August 19, the official announcement offered little in the way of details as to how the liquidation crunch arose, saying only that its focus was on “stabilising our [its] liquidity and preserving assets”. It isn’t clear at this stage how much is at risk, although Hodlnaut claims to have US$500 million of assets under management.
Some Users Saved by Twitter Detective
Even though the rallying cry of 2022 has been to remove all coins from exchanges into self-custody, many have continued to rely on third parties for custodial services. Of course, it goes without saying that not all custodians are created equally, and that users need to do their due diligence to weigh up the relative risks and benefits of leaving coins on exchanges.
One Twitter user who became famous for calling out the Terra ecosystem implosion specifically called out Hodlnaut for its “CeFi degeneracy” in June:
🧵 CeFi degeneracy knows no bounds. Here's a case study into Hodlnaut – a centralized yield platform – and why I believe they have both lied to & misrepresented stablecoin staking risks to customers. These websites are not as trustworthy as you may think. (1/25)
The Twitter thread provides a revealing take on the mechanics of the inherent risks of earning yield on one’s crypto, and unfortunately for the majority of users they are unlikely to have either come across or heeded FatMan’s timely warning. Fortunately for others, they managed to withdraw their investments in time:
Thank you, @FatManTerra! I pulled everything out of #hodlnaut on 6/27, the day after your thread. One good friend didn’t heed your warning and just lost 4 #BTC and 7 #ETH. You’re a good man. I’m interested in your thoughts on @haruinvest and @FTX_Official. Keep up the good work!
Since the announcement, the company’s co-founder has gone offline, with many users viewing this as the ultimate clear signal that they should probably manage their expectations in terms of receiving any of their funds back:
Ethereum co-founder Vitalik Buterin says he’s not worried about the potential of another hard fork following the Merge that’s set to take next month, claiming that proponents of a proof-of-work consensus mechanism “want to make a quick buck” and that it is “unlikely to succeed”.
The Merge upgrade will see the ecosystem move from a proof-of-work (PoW) consensus mechanism to a more sustainable proof-of-stake (PoS) mechanism that will improve the efficiency of the project and dramatically reduce its environmental impact.
Ethereum recently deployed its 10th shadow fork in preparation for the Merge. While the impending event has brought much excitement to the community – with Buterin more excited than most – it has also garnered a lot of criticism and speculation.
Least happy about the Merge are Ethereum miners who stand to lose income. To offset this potential loss, some are pushing against it and propose a potential continuous “ETH PoW” chain post-upgrade.
Miners Push for PoW to Sustain Their Investment
While interest in ETH PoW has been driven by Ethereum miners such as Chandler Guo, PoS will allow Ethereum to rely on a trusted network of validators, effectively eliminating its mining for good. In response, miners may try to continue the PoW chain to sustain their investment.
Tron founder Justin Sun has emerged as one of the prominent investors who support a hard fork to keep the money flowing. He has said there is nothing wrong with preserving ETH’s PoW system, despite the benefits a PoS consensus mechanism can provide:
As the founder of a proof-of-stake blockchain, I believe that proof-of-work has its own unique value. In fact, we may have underestimated the value of Ethereum as the only proof-of-work smart contract blockchain.
Justin Sun, Tron founder
Buterin has argued that those pushing for a fork are “just a couple of outsiders that basically have exchanges, and most just want to make a quick buck”. He added:
So I’m not expecting it to have substantial long-term adoption, just because I think Ethereum Classic already has a superior community and superior product for people pro-proof-of-work.
Vitalik Buterin, Ethereum co-founder
That does not mean we won’t see a few of them try as the project shifts. “If a proof-of-work fork becomes large, then there’s definitely a lot of applications that will have to choose one way or the other,” Buterin said, adding that if ETH PoW gained substantial traction, he expected a lot of market confusion and problems.
The cryptocurrency sector has generated over US$30 billion in fundraising in the first half of the 2022 fiscal year – more than the entire year of 2021, according to a report from crypto firm Messari.
The report says US$30.3 billion was raised through 1199 funding rounds across centralised finance (CeFi), decentralised finance (DeFi), Web3 and NFTs (non-fungible tokens ). At least US$25.9 billion came from crypto funds and US$10 billion from traditional funds.
Centralised Exchanges Attract Wide Capital Influx
Moreover, centralised exchanges have attracted a wide influx of capital despite some brokers filing for bankruptcy: US$4.6 billion in the first quarter of H1 and US$5.6 billion in the second quarter of H1. This represents 108 percent more than H1 2021 and more than a third of total fundraising:
Some key takeaway from the H1 2022 Crypto Fundraising Report from @MessariCrypto (via newly acquired @dovemetrics)
The biggest highlight–> Despite the bear market there was more invested in H1 2022 than all of 2021. Over $30B! pic.twitter.com/b3oDNouQuF
Web3-related startups have also attracted considerable capital. However, it seems the DeFi sector fell behind with barely US$1.8 billion raised. Astar Network was one of the stellar protocols in terms of fundraising. On April 5, the protocol announced it had secured over US$22 million in a fundraising round led by several crypto companies and angel investors.
Moreover, blockchain game GOALS netted US$15 million in seed funding led by Northzone, a venture capital firm, and the CEO of Sorare.
Bear Market Out to Two Years?
After the fall of several cryptocurrency companies following the collapse of Terraform Labs, combined with global inflation and other macro economic factors, selling pressure has been widening across the crypto market. Some crypto analysts even predict a two-year-long bear market. But institutions and big investors are still betting on blockchain technology and crypto assets, the report notes.
Australian green Bitcoin miner Iris Energy has successfully doubled its hash rate on completion of phase two of its Mackenzie site and expects to add further capacity to its Prince George site, also in Canada, by the end of September:
$IREN today announced it has doubled operating capacity to >2.3 EH/s.
The first 1.5 EH/s (50MW) at its second operating site in Mackenzie, BC, has been fully energized ahead of schedule.
On track for 3.7 EH/s by the end of next month, deployment options underway for 6.0 EH/s.
More than a month ahead of schedule, Iris Energy switched on 41 megawatts of Bitcoin mining machines in British Columbia on August 5. The move has lifted the Bitcoin network’s exahashes/second (EH/s) rate to 2.3 EH/s.
We are particularly pleased to continue our track record of delivering projects on schedule, despite the current market backdrop and ongoing international supply chain challenges.
Daniel Roberts, co-founder and co-CEO, Iris Energy
Iris Energy has a second site in British Columbia, Prince George, to which it intends to add another 1.4 EH/s (needing 50 MW of energy capacity). As a result of the prompt hash rate increase, the company’s Nasdaq-listed shares were up by more than 10 percent on August 8.
Previous Positives
In March 2021, Iris Energy smashed its pre-IPO funding target of A$20 million. Thanks to an unexpected Platinum Asset Management (PAM) financial commitment, the target was doubled to A$40 million. PAM had pledged $13 million in capital ahead of the planned IPO.
Australia is the fourth most crypto-obsessed country in the English-speaking world, according to a new study conducted by cryptocurrency price tracker CoinGecko.
The research underpinning the study examined Google Trends data of search terms frequently used by people interested in cryptocurrency. These terms were then tallied to give each English-speaking nation a “total search score” to ascertain which of them had been the most interested in cryptocurrency since the recent market decline, which began in April 2022.
Top 5 English-speaking countries ranked for their interest in crypto. Source: CoinGecko
Nigeria, Kenya Lead African Charge
With a total search score of 371, Nigeria topped the list for its population registering the highest search levels for the phrases “cryptocurrency”, “invest in crypto” and “buy crypto” worldwide. Additionally, the third-highest number of searches for “Solana” were also made from within Nigeria. This was not surprising considering the West African nation’s central bank ordered financial institutions to ban crypto firms from the banking sector in February last year.
Kenya was the highest-ranking English-speaking country in Africa after Nigeria, with a score of 143 placing it at number 15 overall.
UAE, Singapore Top UK, US Well Down the List
Crypto hotspot the United Arab Emirates (UAE) ranked second in the study with a total search score of 270 – more than 100 points behind Nigeria. The UAE edged out Singapore for its searches of “cryptocurrency” and “invest in crypto”.
Singapore had the third-highest level of searches for the term “buy crypto” and its citizens searched for “Ethereum” more than anyone else, with the South-East Asian city state recording a total search score of 261. Australia (218) crept into fourth spot with a strong showing in the search terms “invest in crypto” and “buy crypto”.
Next in the rankings was the UK (198), with the US surprisingly well down the list in 12th place overall (total score 157), ranking 10th in search levels for the term “buy crypto” and sixth in its interest in “Solana”. As for the UK, Bitcoin, Ethereum and Polygon were the highest trending crypto terms.
Bobby Ong, chief operating officer and co-founder of CoinGecko, noted a major correction from previous bull cycle highs, resulting in what he termed significant price drawdowns in an unforgiving macroeconomic environment.
This study provides interesting insight into which countries remain most interested in cryptocurrency in spite of market pullbacks. The countries at the top of this list appear to be keenest to buy the dip and highlight their long-term outlook for cryptocurrencies.
Bobby Ong, chief operating officer and co-founder, CoinGecko
Topsy-Turvy Results on Surveys Front
To compare and contrast, it’s interesting to note Australia’s performance in two other recent crypto surveys, results of which were published last month:
However, data from the United Nations Conference on Trade and Development, released a week earlier, showed that only 3.4 percent of Australians own crypto, placing the country last in a list of 20.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Stellar (XLM)
Stellar XLM is an open network that allows money to be moved and stored. When it was released, the goal was boosting financial inclusion by reaching the world’s unbanked – but soon after, its priorities shifted to helping financial firms connect with one another via blockchain technology. The network’s native token, lumens, serves as a bridge that makes it less expensive to trade assets across borders. All of this aims to challenge existing payment providers who often charge high fees for a similar service.
XLM Price Analysis
At the time of writing, XLM is ranked the 27th cryptocurrency globally and the current price is US$0.1225. Let’s take a look at the chart below for price analysis:
XLM set a high near $0.2457 in Q2 before retracing nearly 80% to find a low near $0.1038. The price consolidated around this level before the strong bullish impulse over the past several days.
Probable resistance near $0.1320 is slowing the bullish advance down. However, another leg may target the last swing high at $0.1426 and relatively equal highs at $0.1530. Resistance near $0.1659 could cap the move before the second swing high. Beyond these levels, little stands in the bulls’ way before reaching the swing high near $0.1846.
A retracement before a move higher might find support in the daily gap near $0.1204, just above the weekly open. Relatively equal lows near $0.1135 could also provide support. Run-on stops at $0.1064 and $0.09574 may find support in the gap beginning near $0.08912.
2. Basic Attention Token (BAT)
Basic Attention Token BAT is the token that powers a new blockchain-based digital advertising platform designed to fairly reward users for their attention while providing advertisers with a better return on their ad spend. The Basic Attention Token itself is the unit of reward in this advertising ecosystem and is exchanged between advertisers, publishers and users. Advertisers pay for their advertising campaigns in BAT tokens. Out of this budget, a small portion is distributed to advertisers, while 70% is distributed to users – whereas the intermediaries that typically drive up advertising costs are cut out of the equation to improve cost-efficiency.
BAT Price Analysis
At the time of writing, BAT is ranked the 67th cryptocurrency globally and the current price is US$0.4518. Let’s take a look at the chart below for price analysis:
BAT has dropped nearly 75% from its Q2 2022 high and 89% from its November 2021 all-time high.
Support might have formed last week from $0.3734 to $0.4065 and should hold if bulls are ready for a bounce. This zone overlaps with an inefficiently traded area on the weekly chart from $0.3653 to $0.3394.
If this level breaks, bears may target an inefficiently traded area on the monthly chart from $0.3147 to $0.3032. Below this level, $0.2845 to $0.2780 could provide support after a run on bulls’ stops under the Q4 2020 lows into an area of significant accumulation.
The closest resistance begins near $0.4983. This level has confluence with the 9 EMA and a brief consolidation before May 11’s spike downward.
A more significant rally might find resistance near $0.5540. This level is inefficiently traded and has confluence with the lows of last summer’s accumulation and the 18 EMA.
If the market becomes more bullish, $0.6245 may provide the next resistance. This level is slightly above the May monthly open, overlaps with multiple old lows, and aligns with the 40 EMA.
3. Internet Computer (ICP)
The Internet Computer ICP is the world’s first blockchain that runs at web speed with unbounded capacity. It also represents the third major blockchain innovation, alongside Bitcoin and Ethereum. The Internet Computer scales smart contract computation and data, runs them at web speed, processes and stores data efficiently, and provides powerful software frameworks to developers. By making this possible, it enables the complete re-imagination of software, providing a revolutionary new way to build tokenised internet services, pan-industry platforms, decentralised financial systems, and even traditional enterprise systems and websites.
ICP Price Analysis
At the time of writing, ICP is ranked the 35th cryptocurrency globally and the current price is US$7.83. Let’s take a look at the chart below for price analysis:
ICP has dropped 60% from its most recent Q2 high as it continues its nine-month downtrend. The edge of the recent swing’s lower candle bodies could provide the closest support, near $6.42. This level overlaps with the 100% extension of June’s opening rally.
Currently, the price is testing possible resistance near $8.20. This level has confluence with the 9 EMA. It is unclear if it will hold as resistance, but it’s reasonable to anticipate a run above bears’ stops at $8.75.
If the price breaks through this resistance, it may find its next resistance near $8.97. This level is near the midpoint of May 12’s swing low and the midpoint of an inefficiently traded area on the weekly chart.
A rally this high may reach slightly higher, near $9.15. This area formed the base of the June opening rally, shows inefficient trading on the daily chart, and is at the low end of May’s accumulation range.
Below, there is no historical price action to suggest possible support. The next downside targets may be near $6.70 and $5.92. These approximate levels are near the 150% and 200% extensions of June’s opening rally.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Match Group is also shelving its plans to offer in-app Tinder Coins currency, while in another corporate blow, Tinder CEO Renate Nyborg has announced she will be leaving the company after less than 12 months in the job.
With Tinder’s Q2 share price down 22 percent, Match Group’s 2021 acquisition of artificial intelligence and augmented reality firm Hyperconnect has resulted in an operating loss of US$10 million.
Although year-on-year growth in total revenue increased by 12 percent, earnings failed to meet analysts’ expectations. Nyborg had unveiled the firm’s ambitious ‘Tinderverse’ project after acquiring Hyperconnect, but Match Group CEO Bernard Kim said the dating app would be treading carefully in light of uncertainty in the space.
“I believe a metaverse dating experience is important to capture the next generation of users and Hyperconnect has been innovating in this area,” Kim said.
However, given a more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in [the] metaverse at this time.
Bernard Kim, CEO, Match Group
As for the Tinder Coins initiative, first floated in October last year, the idea was to encourage users to spend more time swiping, scrolling and subsequently spending real money on Tinder, at least initially in the US.
The in-app currency was part of Tinder’s efforts to create an experience beyond its traditional “swipe left or right” signature interactive method. The feature was soft-launched in February this year but its future is now uncertain.
We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.
Bernard Kim, CEO, Match Group
Another Romantic Entanglement
Last year, Tinder and other dating apps Bumble and Grindr were targeted by a crypto-related trading scam known as CryptoRom. A Bitcoin wallet belonging to the attackers, as detected by cybersecurity firm Sophos with the aid of one victim, revealed that nearly US$1.4 million in cryptos had been harvested by the scam as at October 2021.
