1inch Investment Fund Dumped 24,990 ETHs (WETHs)

Ethereum address starting with 0x225d, identified as “1inch: Investment Fund”, has made a substantial swap of Wrapped Ethereum (WETH) for stablecoins USDT and DAI, according to data from DeBank.

Source: Debank

The transaction activity began roughly four hours ago and ceased approximately two hours before the publication of this report. In this time, the 1inch: Investment Fund successfully converted an estimated 24,990 WETH to about 48 million USD worth of stablecoin assets.

As a result of this transaction, the Ethereum balance in the address has been noticeably depleted, now holding a mere 238 ETH.

While it is uncertain what led to the fund’s decision, it could be a protective strategy, hedging against potential volatility in the Ethereum market. Alternatively, this could signal a larger trend in the market, where funds are moving away from ETH due to anticipated bearish trends.


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Solana price ‘bear flag’ paints $50 target as Wormhole hack exposes security hole

Solana (SOL) became one of the worst performers among the top cryptocurrencies on Feb. 3 as traders assessed its links with the second-biggest hack to date.

$325M worth of wETH gone

SOL price dropped by 5.50% to below $96.50 as Wormhole, a bridge between Solana and Ethereum blockchains, reportedly lost $325 million worth of Wrapped Ethereum (wETH) due to a technical vulnerability.

Prior to the hack on Wednesday, SOL was trading as high as $112.

In detail, hackers tricked a series of Solana’s smart contracts into signing illicit transactions digitally posing as “guardians,” reported blockchain researcher Kelvin Fichter Wednesday night after the hack. He wrote:

“The attacker made it look like the guardians had signed off on a 120k deposit into Wormhole on Solana, even though they hadn’t. All the attacker needed to do now was to make their “play” money real by withdrawing it back to Ethereum.”

Wormhole said that it would add Ethereum’s native token Ether (ETH) “over the next hours” to back wETH on the Solana network on a 1:1 basis. However, the project did not clarify the source of the funds that would be used to buy ETH tokens.

Bear flag triggered

The selloff in the Solana market across the last 24 hours came closer to triggering a bearish continuation setup that may send the SOL price down by another 50%.

Dubbed “bear flag,” the pattern emerges when the price consolidates sideways/higher after a strong downside move, called “flagpole.” In a perfect world, the price eventually breaks below the consolidation range and falls by as much as the flagpole’s length.

So far, SOL/USD has been forming the same bear flag pattern, as shown in the chart below.

SOL/USD daily price chart featuring bear flag setup. Source: TradingView

The downside target put forth by Solana’s bear flag sits near $50, almost halfway down where the SOL price has been trading on Thursday.

Related: Report crowns Solana for using least energy per transaction, but there’s a catch

Last year, Solana sprinted into the top-ten cryptocurrencies by market cap with SOL rising by more than 11,000% as investors bet on the growth of decentralized finance (DeFi) and nonfungible token (NFT) sectors.

However, entering 2022, the SOL price has fallen sharply, wiping almost half Solana’s market capitalization amid a broader crypto market decline — that also battered Bitcoin (BTC), Ether, and other top-ranking digital assets.

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