Cathie Wood, founder of global asset management company ARK Invest, says she sees a scenario where central banks could start accumulating Bitcoin and other crypto assets.
In a new episode of The Breakdown podcast, the superstar hedge fund manager says her firm believes that deflation, not inflation, will hit global markets as consumer demand shifts from commodities to services.
“We are thinking the much higher probability is deflation. I know most people think that’s crazy given what’s going on, but we have seen a crack in some commodity prices already, lumber an important one. What we think has happened here is consumers have spent the last year spending their money on the only things they could and those are goods, durables and non-durable goods.
Businesses were behind the curve even before the coronavirus because of the inverted yield curve. They were afraid of a recession… So they were fearful and positioned conservatively. Consumers took off buying goods and now being vaccinated, they’re going to shift their market basket from goods to services… So I think what’s going to happen here is businesses, which may be double and triple and quadruple ordering right now to try and get supplies, they’re going to get those supplies as the market basket is shifting towards services, and I think commodity prices are going to have a significant fall into next year.”
With commodity prices sinking as businesses try to get rid of excess supply, Wood predicts that emerging markets will take a massive hit. She adds that the effects of deflation will cascade into the fiat currencies of emerging markets, which will drive their central banks to seek refuge in Bitcoin and other cryptocurrencies.
“I think though in emerging markets, if commodity prices come down, a lot of them are linked to commodity prices, their currencies will come under pressure. I think what will happen, as currencies come under pressure, the velocity of their money will increase as more and more of their population shift into Bitcoin and other cryptocurrencies and assets.
This is always true, when you’re talking about currencies, inflation, deflation, it hits different regions of the world differently… I wouldn’t be surprised if some of these emerging market central banks start accumulating Bitcoin and other currencies. If they know their currency is going down and that they would be under attack for as reserves go down, maybe they have a balance [sheet] with Bitcoin and other crypto assets.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Traders are using various strategies to determine whether Bitcoin price has bottomed, but on-chain activity and derivatives data hint that the situation remains precarious.
Has Bitcoin price bottomed yet? According to @noshitcoins, derivatives and on-chain data signal that further downside could be in store.
Traders have been trying to time the much-anticipated trend reversal ever since Bitcoin (BTC) initiated its 48% correction to $30,000 on May 12. The move culminated with $12 billion worth of futures long positions being liquidated, and to date, trader’s confidence remains somewhat dampened.
The community started looking everywhere for trend reversal signs, including technical patterns, United States CPI inflation data and Bitcoin exchange deposits. For example, some analysts stated that a higher high, followed by a move above $40,000, would be enough.
We need to make a new Higher High to confirm a local bottom.
Reclaim 40k and we can start talking about a sustained move back to 50k.#Bitcoin pic.twitter.com/myeWXIYWpp
— Inmortal (@inmortalcrypto) May 24, 2021
However, two days later, Bitcoin managed to break the $40,000, although the move didn’t last for more than six hours. Meanwhile, other traders inferred that a retest of the $30,000 bottom is needed before a bounce.
#Bitcoin $BTC #BTC is forming a Descending Broadening wedge here. It’s bullish but there are two possible scenarios.
Green: breaking the resistance and maintain the uptrend.
Red: retest the bottom of the wedge (~30k) and bounce from there. pic.twitter.com/8L26kQvf7X
— Johnny Woo | Never DM you for Money (@j0hnnyw00) May 25, 2021
Although there could be empirical evidence or even logic backing those statements, market prices don’t always react to external news or previous chart formations. Unlike stocks, Bitcoin investors can’t rely on commonly used valuation multiples or even comparables.
Sure, a digital store of value is one use case, but at the same time, it is uncensorable and easily transferable. Furthermore, some users value Bitcoin’s peer-to-peer fiat convertibility outside of KYC-regulated exchanges. Another factor to consider is the investors who are increasing their Bitcoin portfolio due to the lack of correlation with traditional financial assets.
This panacea of diverse and sometimes conflicting narratives creates barriers for modeling the market’s potential, adoption status, and even measuring the effectiveness of recent developments.
Some will cheer for Tesla and large companies building up Bitcoin reserves, while others couldn’t care less about who’s holding BTC and instead focus on the challenges of scalability and fungibility.
Skew: the professional “fear and greed” indicator
Call options allow the buyer to acquire Bitcoin at a fixed price when the contract expires. Put options, on the other hand, provide insurance for buyers and protect against price drops.
Whenever market makers and professional traders lean bullish, they will demand a higher premium on call (buy) options. This trend will cause a negative 25% delta skew indicator. On the other hand, if downside protection is more costly, the skew indicator will become positive.
A 25% delta skew oscillating between a negative 10%, and a positive 10% is usually deemed neutral. This balanced situation held until May 16, as Bitcoin lost the critical $47,000 support, which had held for 76 days.
As the markets deteriorated, so did the 25% delta skew indicator, and the cost of protective options spiked. Therefore, until the metric establishes a more neutral pattern nearer to the 5% level, it seems premature to call the market bottom.
Active Bitcoin supply signals that weak hands need to cool off
Traders also monitor the number of BTC that have been active lately. This indicator can’t be deemed bullish or bearish by itself as it does not provide information on how old the involved addresses are.
Active supply that transacted at least once in the trailing 30 days. Source: CoinMetrics
The 500% price rally from Oct. 1, 2020, and the $64,900 peak on April 14, 2021, caused a major increase in the supply moved in the months before the rally. When this metric presents a sharp decrease, it indicates that investors are no longer interested in participating at the current price level.
There are currently 2.2 million BTC active over the past 30 days, and this is significantly higher than levels seen before Oct. 2020.
As things currently stand, traders should not be so that Bitcoin has bottomed, at least until the market no longer has relevant activity surrounding the sub-$40,000 level.
The views and opinions expressed here are solely those of theauthorand do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
GROW.House is achieving something unique. Instead of relying on traditional banks, the GROW token’s utility allows transactions within the GROW ecosystem. The next thing that we’re doing is revolutionary: we’ve tied it to a game like the Sims, Farmville or Game of War. We want individuals to build a real-world inside the game. We recognize some people are crypto natives, and understand crypto, but don’t understand cannabis. There’s similarly cannabis natives who understand cannabis, but don’t understand crypto.
Through Grow.House, now they have an opportunity to learn about each other. Most people on the planet, at some point or another, have played a game similar to the one that we offer. Whether you’re a millennial, and you used to play the Sims when you were little, or whether my son plays game of war and Clash of Clans or some of these other ones which work similarly to Farmville on Facebook. It’s a world that allows you to build and develop characters and ecosystems. You can continue improving upon those ecosystems. And there’s an in-game currency―whether it’s diamonds, jewels, gems, or whatever.
GROW is inspired by such an ecosystem. You have a token, and it’s worth money. What we then did was layer on the gamification aspect. You get to play the Grow.House game. And in the Grow.House game, you can buy land in the form of an NFT.
So, instead of, for example, strengthening your castle against attracts, you’re buying an NFT or a seed. These seeds are maturing, and you’re producing your own strains in the game. The parcels of land emit Growth tokens, the same way you can operate a hotel on Cityville and it produces dollars for you to go out and spend more dollars in the game. While these are just fictitious dollars, though, for GROW allows you to create real growth tokens, which have real life currency.
We took the best aspects that empower people to engage, creating stickiness (no pun intended) with all of the best elements of those other games. And we combined it with crypto and cannabis. If you understand this type of game, which most people do, and you already know the cannabis or the crypto side, we’ve made it very easy for you to learn the other.
This is probably the first game of millions to come. People are going to knock this idea off in a heartbeat, because it’s so genius. It taps into the function and utility of crypto, and it taps into a very important category, which is cannabis. It has that stickiness and that education process ironed out in a way that’s very easy. My 10 year olds are not gonna play this game, but he could. It’s very familiar to him already.
One thing I like about the two together is that, unlike many industries, they’re more cooperative than competitive. People are very helpful in both of these categories because they work towards the greater good.
People are always teaching other people how to make their first crypto transaction. People in the cannabis industry are also very helpful. When you combine these two industries, it’s an interesting intersection of people who are pro both cannabis and crypto, who are willing to sit down and help everybody thrive and learn about the ecosystems, because they know that it’ll be for the greater good. Startups and companies in the cannabis and crypto industries don’t compete. They cooperate.
XRP holders have scored a new victory. A lot has passed since December 2020, when the Securities and Exchange Commission (SEC) filed its case against Ripple Labs. Things started in the regulator’s favor, but with every new development, the situation seems to be changing.
According to a document published by the United States District Court of the Southern District of New York, represented by judge Sarah Netburn, the Commission was denied access to Ripple’s legal memos.
With this motion, the SEC would have ordered the payment company to produce communications in every format on “legal advice” seek or receive on whether XRP sales were subject to federal securities laws.
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If granted, the motion would have in conflict with Ripple’s Attorney-Client privilege. The judge concluded that the company did not waive this right. However, the judge gave the SEC room to refile its motion. Per the document:
If, at some later date, Ripple raises its good faith beliefs or relies upon its privileged communications in support of its fair notice defense, the Plaintiff may renew its application to the Court.
Jeremy Hogan, a partner at legal firm Hogan & Hogan, has followed this case closely. The legal expert said the following on judge Netburn’s ruling:
Very important because the Judge states Ripple’s subjective beliefs re XRP are NOT relevant to the Fair Notice defense, blocking the road the SEC wanted to use to fight the Defense.
On the other hand, lawyer John E. Deaton, one of the community leaders of an initiative for XRP investors to gain more relevance in the action, believes the SEC always has little chance of winning this motion.
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He believes that there is not much pressure for the regulator to return to negotiating table, but “it’s another public loss for the SEC”.
How The Legal Battle Has Impacted XRP’s Price
With losses in higher timeframes, XRP has positively reacted to recent developments. In the daily and 1-hour charts, the cryptocurrency records a 5.6% and 0.1% profit, respectively. At the time of writing, it trades at $0.89.
XRP with small gains in the daily chart. Source: XRPUSDT Tradingview
The market still seems correlated with Bitcoin’s price performance. The number one cryptocurrency by market cap has seen one of its worst months in the past 5 years. In the daily chart, Bitcoin is close to turning $35,000 from resistance to support.
Source: Luke Martin
If it succeeds, XRP and other altcoins could have a respite from the bears and reclaim some of their lost territories. In the coming weeks, BTC’s price will have a lot of influence on the entire market. Trader Credible Crypto claims that XRP could form a short squeeze and liquidate many short positions on exchange Bitfinex.
I mean. Idk what else to say but this looks ripe for a short squeeze lol. $XRP pic.twitter.com/BZtrBQUt93
— Credible Crypto (@CredibleCrypto) May 28, 2021
The trades remain bullish despite the current price action. He claimed that BTC’s price could have bottomed out and might be on a recovery trajectory. This could positively impact XRP, as mentioned. Credible Crypto said:
I know the structure there at the bottom LOOKS bear flag-y but I also see a completed 5-3-5 (ABC) to the downside which would imply the bottom is in. Would not be surprised to see this ‘bear flag’ break to the upside. BTC.
Bitcoin (BTC) is struggling to sustain any price level during the current pullback, indicating a lack of demand at higher levels. Does this mean that the bull trend is over and the institutional investors are abandoning the crypto markets?
No! It is the other way around. Glassnode’s weekly newsletter pointed out that the Grayscale Bitcoin Trust (GBTC) premium is rising, suggesting that institutional investors are accumulating at lower levels.
GBTC is not alone, another popular vehicle for institutional investors, the Canadian Purpose Bitcoin exchange-traded fund has also witnessed strong capital inflows. According to analysts at Glassnode, this shows “early signs of renewed institutional interest.”
Crypto market data daily view. Source:Coin360
Another metric that may be signaling a possible bottom in Bitcoin is its dominance chart, which looks similar to the early part of 2017. If Bitcoin’s dominance follows a similar trajectory to 2017, it will indicate that Bitcoin is still some distance away from its peak and altcoin season still has room to run.
Now that the monthly options and futures expiry has passed, investors are likely wondering if Bitcoin could start a sharp recovery next week and which altcoins will rally if that happens.
Let’s look at 5 cryptocurrencies that could start trending moves this week.
BTC/USDT
Bitcoin’s brief breakout could not clear the hurdle at the 200-day simple moving average ($41,014) on May 26 and 27, indicating the bears are defending this level aggressively. The downsloping 20-day exponential moving average ($41,327) and the relative strength index (RSI) near the oversold zone suggest the bears are in control.
BTC/USDT daily chart. Source:TradingView
If the BTC/USDT pair breaks the $33,000 support, the next stop could be the $30,000 to $28,000 support zone. If this zone also gives way, the pair may witness panic selling and a drop to $20,000 is possible.
The longer the price stays below the 200-day SMA, the more difficult it will become for the bulls to start the next leg of the uptrend.
However, if the price turns up from the current level and rises above the 200-day SMA, it will suggest strong buying at lower levels. That could clear the path for a possible rally to the 61.8% Fibonacci retracement level at $48,231.
BTC/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the formation of a symmetrical triangle, which generally acts as a continuation pattern. If bears sink the price below the triangle, the pair could drop to $30,000 and then to the pattern target at $20,316.
On the other hand, the setup may act as a reversal pattern if bulls push and sustain the price above the resistance line of the triangle. Such a move will suggest the downtrend is over and the pair could rally to the target objective at $51,951.
MATIC/USDT
Polygon (MATIC) has bounced off the 20-day EMA ($1.58) today, indicating that bulls are buying on dips to this support. The upsloping 20-day EMA and the RSI in the positive territory indicate the path of least resistance is to the upside.
MATIC/USDT daily chart. Source:TradingView
However, the MATIC/USDT pair has formed a symmetrical triangle pattern, indicating indecision among the bulls and the bears. If bulls push the price above the resistance line of the triangle, the pair could rise to $2.70 and then start its journey to the pattern target at $4.20.
Contrary to this assumption, if the price turns down from the resistance line of the triangle, the pair could extend its stay inside the triangle. A break and close below the triangle will signal weakness and could result in a drop to $0.80.
MATIC/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the relief rally is facing resistance at the downtrend line. If the bears sink the price below the $1.51 support, the pair will complete a bearish head and shoulders pattern that could result in a drop to $0.68.
Conversely, if buyers propel the price above the downtrend line, the bullish momentum could pick up and the pair could challenge the $2.43 resistance. A break above this level could result in a rally to $2.70.
EOS/USDT
EOS attempted a recovery, which fizzled out at the 38.2% Fibonacci retracement level at $7.89 on May 27. However, the positive sign is that the bulls have not allowed the price to dip below the $5.60 support. This indicates that traders are not waiting for a deeper fall to buy.
EOS/USDT daily chart. Source:TradingView
If bulls can push and close the price above the 20-day EMA ($6.95), it will suggest that supply exceeds demand. That could open the doors for a rally to the 50% retracement level at $9.23 and then to the 61.8% retracement level at $10.57.
This bullish view will invalidate if the bears stall the next pullback attempt at the 20-day EMA or at $7.89. Such a move will increase the possibility of a break below $5.60. If that happens, the EOS/USDT pair could drop to the 200-day SMA ($4.52) and then to $3.57.
EOS/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the bulls are defending the $5.60 support, indicating that the selling pressure has reduced. The flat 20-EMA and the RSI just below the midpoint suggest a balance between supply and demand.
If bulls push the price above $6.81, the pair could rally to the 200-SMA and then to $8.69. A breakout and close above this resistance will signal that bulls are back in the game. Alternatively, if the bears sink the price below the $5.60 to $5 support zone, the pair could drop to $3.57.
XMR/USDT
Repeated attempts by the bears to sink Monero (XMR) below the 200-day SMA ($222) have failed in the past few days. This suggests that bulls are accumulating at the current levels.
XMR/USDT daily chart. Source:TradingView
The buyers attempted to push the price above the 20-day EMA ($294) on May 29 but the long wick on the candlestick shows strong selling at higher levels. However, the bulls are again likely to attempt to clear the hurdle at the 20-day EMA.
If they succeed, the XMR/USDT pair could start a relief rally that may reach the 61.8% Fibonacci retracement level at $368.45. This level may act as a stiff resistance because traders who had bought at higher levels may close their positions.
This positive view will nullify if the price turns down and plummets below the 200-day SMA. In such a case, the pair may drop to $175 and then to $124.69.
XMR/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows a symmetrical triangle formation, indicating indecision among the bulls and the bears about the next directional move. The flattish 20-EMA and the RSI near the midpoint also suggest a balance between supply and demand.
This advantage will tilt in favor of the bulls if they can push and sustain the price above the triangle. The price could then rally to the 200-SMA, which may act as a stiff resistance.
On the contrary, if the price turns down and breaks below the triangle, the pair could drop to $175 and then to $124.69.
AAVE/USDT
AAVE is attempting to rebound off the strong support at $280. This level has not been broken on a closing basis since Jan. 26, hence the bulls are likely to defend it aggressively. The 200-day SMA ($290) just above the level is an added advantage.
AAVE/USDT daily chart. Source:TradingView
However, the downsloping 20-day EMA ($398) and the RSI below 43 suggest the short-term trend favors the bears. The sellers will try to stall any relief rally at the 20-day EMA. If they succeed, the AAVE/USDT pair may again correct to $280.
A break and close below this support could start a downtrend and the decline could extend to $160. Conversely, if the bulls drive the price above the 20-day EMA, the pair could rise to $489, which is likely to act as a stiff resistance.
AAVE/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the bulls bought the dip to $280. The 20-EMA is flattening out, indicating the selling pressure is reducing. If buyers push and sustain the price above the downtrend line, the pair could rally to $418. A breakout and close above this resistance could result in a rally to $480.
This positive view will invalidate if the price turns down from the 20-EMA or the downtrend line and plummets below $280. If that happens, the bears will try to pull the price below the May 23 low at $208.09 and start the downtrend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Ripple CEO Brad Garlinghouse says that the San Francisco-based payments company wants to go public once its legal battle with the U.S. Securities and Exchange Commission (SEC) is resolved.
In an interview during the Consensus 2021 event, Garlinghouse commends Coinbase following the crypto exchange’s debut on the Nasdaq in April.
“I give Coinbase a huge amount of credit. They have been a leader across crypto here in the United States for years and getting them out, I think, is good for crypto overall. I think what I said is, you know Ripple wouldn’t be the first and Ripple certainly won’t be the last.”
Garlinghouse says Ripple is considering pushing through with its plan to launch an initial public offering, but it will have to wait until the lawsuit with the SEC is over.
“I think that the likelihood that Ripple is a public company is very high at some point. I think in the middle of an SEC lawsuit, you know we need to get that closed out and the SEC approves an S1, it’s easier to do that after you have closure and clarity and that regulatory certainty we have been seeking for so long.”
In January 2020, Garlinghouse revealed Ripple’s plan to go public as he predicted an IPO will happen in the crypto space over the next 12 months. In December, the SEC formally filed a complaint against the payments giant, alleging that Ripple’s native asset XRP was an unregistered security upon its launch and remains a security to this day.
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Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology
Starling, a UK digital bank, has barred its customers from sending money to cryptocurrency exchanges. Withdrawals aren’t affected.
Other UK banks continue to allow deposits.
A British digital bank has temporarily barred its customers from depositing money to cryptocurrency exchanges over concerns about criminal activity.
“This is a temporary measure that we’ve taken to protect customers, having observed high levels of suspected financial crime with payments to some cryptocurrency exchanges,” Starling told Decrypt. “This is not just an issue for Starling, but for all banks.”
Starling said that it will reverse the ban “as we roll out additional checks specifically for payments to crypto exchanges.” The spokesperson declined to comment when the bank proposes to lift the ban.
However, the bank confirmed that only deposits from Starling accounts to crypto exchanges are barred. Customers can continue to withdraw funds from crypto exchanges into Starling accounts with no restrictions. Starling is a mobile-only bank launched in the UK in 2014.
Other UK banks have not taken a similar stance. Barclays told Decrypt that it has not blocked transactions to crypto exchanges.
And, contrary to customer difficulties reported by The Telegraph yesterday, Decrypt had no problems transferring funds to Binance from Monzo bank on Sunday afternoon.
NatWest has since Thursday warned customers against crypto traders “promising big profits and offering to help.” The bank has not placed any restrictions on crypto traders.
It advises its customers only to deal with crypto companies fully registered or temporarily registered with the Financial Conduct Authority.
Only five companies are fully registered: Ziglu (a crypto-friendly bank founded last year by Starling co-founder Mark Hipperson), Gemini Europe Services Ltd, Gemini Europe Ltd, Digivault, and Archax.
While a further 167 crypto companies have outstanding applications, John Glen, MP for Salisbury, on Friday told Parliament that 90% of all companies who have applied withdrew applications “following FCA intervention.”
Cardano’s ADA cryptocurrency was back in the spotlight Sunday, leading a tepid market recovery following news that the developer network was inching closer to launching smart contracts.
Market update
The combined value of all cryptocurrencies rose 4.4% on Sunday to $1.6 trillion, according to data from Coingecko. Among the majors, it was Cardano’s ADA leading the rally with a 17% gain. ADA peaked at $1.70, according to TradingView, and was last seen hovering just north of $1.63.
At current values, Cardano was the fourth-largest cryptocurrency with a total market capitalization of $52.9 billion.
ADA posted a strong rebound on Sunday after languishing for much of last week. Source: TradingView.
Every cryptocurrency in the top-20 reported gains on Sunday. Bitcoin (BTC) price rose 3.5% to $35,833, Ether (ETH) added 4.3% to $2,431 and Binance Coin (BNB) climbed 6% to $327.
Despite the modest rally, market sentiment remains tilted to the downside this weekend, with investors continuing to speculate about whether Bitcoin has actually bottomed out. The Crypto Fear & Greed Index has fallen to 10, on a scale of 1-100 where lower scores are associated with “extreme fear.”
What’s driving ADA?
The presence of oversold conditions following the latest market correction appears to have worked in ADA’s favor on Sunday. The cryptocurrency briefly penetrated the oversold indicator on the hourly Relative Strength Index Saturday before rebounding sharply over the next 24 hours.
Prior to the May 19 crypto market flash crash, ADA was among the top-performing digital assets. It peaked at $2.46 on May 16 before unwinding 55% over the next week. Looking beyond the immediate shift in market sentiment, ADA fundamentals remain intact.
On a fundamental note, ADA supporters are celebrating the launch of the Alonzo smart contract testnet by Cardano’s development team Input Output Hong Kong, or IOHK. As Cointelegraph recently reported, IOHK was eyeing a gradual deployment of Alonzo’s testnet in May and June. Early adopters will have the opportunity to test Alonzo Blue, the first alpha testnet, over the next month.
As IOHK explained:
The ‘Alonzo’ hard fork will bring exciting and highly-anticipated new capabilities to Cardano through the integration of Plutus scripts onto the blockchain. These will allow for the implementation of smart contracts in Cardano, enabling the deployment of a wide range of new DeFi applications for the first time.
Cardano founder Charles Hoskinson recently indicated in a YouTube video that attention will shift to solving the scalability issue once the Alonzo rollout is complete.
The hacker managed to steal $6.2 million worth of BUSD, the Binance native USD-pegged stablecoin converted to ETH via 1inch DEX and partially withdrawn from Binance Smart Chain onto Ethereum.
This hack was comparatively benign: only $6.2 million was stolen from Belt Finance’s massive $2.6 billion total value locked (TVL).
The beltBUSD vault uses four strategies. A bug in the Elipsis strategy was used to leak out funds via the Venus strategy.
The vault sends new deposits to the most undersubscribed strategy and pays out withdrawals from the most oversubscribed strategy to create balance between the four of them. The Elipsis strategy bug creates a value miscalculation if the 3EPS pool becomes unbalanced.
Using flash loans, the hacker swapped about $200 million from BUSD to USDT, unbalancing the 3EPS pool and activating the Elipsis strategy bug. The 4Belt pool at this point would have overvalued the hacker’s shares, paying out an additional 0.5% profit after the conclusion of the flash loan. This resulted in a $1M profit from a single $200M flash loan transaction.
The hacker repeated the transaction multiple times, netting $6.2M in profit and causing $13M in total losses, since $6M in fees were paid to the 3EPS pool.
Along with other recent hacking indicents in the Binance Smart Chain ecosystem, this hack has led to a condemnation of ‘fork culture’ where entire codebases are replicated without thorough audits. This issue has led to several flash loan attacks over the past few weeks.
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Ember Sword, a free-to-play fantasy MMORPG game, has successfully completed its first land sale on Polygon, raising a whopping $1.5 million.
Bright Star Studios, a top gaming studio which recently secured $2 million from top tier investors such as Dialectic, Mechanism Capital and Delphi Digital, sold out its first-ever land sale on Polygon with 11,983 land plots sold on Polygon (previously Matic Network) in just seven hours. The land sale marks the first native land sale on Polygon and illustrates the demand for gaming and NFTs in the Polygon ecosystem as well as the quality of developers that Polygon has attracted in the gaming industry.
Bright Star Studios was founded by gaming industry veterans such as Joris Huijbregts, Mark Laursen, Sage Durain, and Loren Roosendaal. The team’s background is diverse, consisting of a passionate team of world champions, gaming industry veterans, award-winning venture founders, MMO fanatics, and former pro-players carving a new path forward for MMOs across PC, browser, and mobile. The studio has disrupted the traditional pay-to-win gaming model and allows players to earn rewards through in-game activities.
Ember Sword is Bright Star Studios’ next-gen flagship project and is being built as a love letter to MMORPG gamers. Players will find all the things they expect from an immersive MMORPG, including free-form sandbox gameplay, a deep lore rich world, classless combat, PvP and PvE, a player-driven economy, scarce tradable cosmetics, an artist workshop for community generated NFTs, awesome character skill progression and an AI manager that directs gameplay to enhance the player experience.
Ember Sword was the first land sale on Polygon (previously Matic Network), for which the company had opened 11,983 plots from the in-game nation of Solarwood that helped generate interest from 1,800 new landowners. Using Polygon, a high-speed, low gas infrastructure, buyers were able to purchase plots without excessive gas costs.
Evidenced by the immense interest demonstrated via Twitch, the land plots sold out within seven hours from the start of the sale, resulting in $1.5 million worth of land sold.
The live stream attracted more than 1,224 peak viewers on Twitch, with immense interest from the Ember Sword community.
This will be the first of many Ember Sword land sales to be conducted on Polygon, and many more plots in the game will be made available via upcoming sales.
About Polygon
Polygon is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building and connecting secured chains like Plasma, Optimistic Rollups, zkRollups, Validium, etc., and standalone chains like Polygon POS, designed for flexibility and independence. Polygon’s scaling solutions have seen widespread adoption with 350+ DApps, ~112M txns, and ~1M+ unique users.
If you’re an Ethereum developer, you’re already a Polygon developer. Leverage Polygon’s fast and secure txns for your DApp, get started here.
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