An uncertain month awaits crypto players

 In just the first four days of August, the crypto sector was beset by a series of negative events.

ce the beginning of the year, the cryptocurrency sector has started to go down with a lot of negative news and experts say that the market is starting to enter the harshest phase of the crypto winter. This statement was reinforced when only a few days in the first few days of August, a series of bad news overshadowed this volatile sector.

Photo: Coin Telegraph
Photo: Coin Telegraph

August opened with the US Securities and Exchange Commission (SEC) charging a group of 11 people with fraud. This team created Forsage, a smart contract that was billed as decentralized, allowing millions of retail investors to participate in trades via the Ethereum blockchain, which subsequently raised over $300 million. from investors.

Forsage was first released in January 2020 and quickly attracted attention. However, it was assessed by the SEC as operating under a "typical ponzi scheme", trying to attract investors through online promotions and virtual platforms that "do not have any real estate". actual tradable products".

“The fraudsters have deliberately circumvented federal securities laws by covering them with smart contracts and blockchain,” said Carolyn Welshhans, SEC representative.

On August 2, Nomad Bridge, a well-known startup in the field of cryptocurrencies, was hacked and took away nearly 200 million USD. Hackers are said to have exploited a vulnerability inside the Nomad bridge, allowing crooks to enter any value into the system to withdraw money without depositing assets.

On Twitter, Nomad admitted to being hacked and said it was working with cryptocurrency security firm TRM Labs and law enforcement agencies to track the flow of funds, identify the perpetrators behind, and pay for it. Return the stolen tokens to the user.

A bridge on the blockchain is an important factor in transferring tokens from one network to another. However, their security has not been given due importance. Previously, Axie Infinity's Ronin bridge was also hacked and hackers stole more than 600 million USD worth of digital money.

By the end of August 2, MicroStrategy, the company that currently holds the most Bitcoins, - announced that CEO Michael Saylor would be leaving the CEO position. His replacement is Phong Le, Chairman of the company. Saylor has been the CEO of MicroStrategy since the company was founded in 1989, mainly operating in the business of enterprise software and cloud computing services.

The announcement comes amid a decline in the company's second quarter business results, with a decrease of 2.6% compared to the same period last year. Investments in cryptocurrencies also lost $918 million, mainly due to a sharp drop in Bitcoin. According to CNBC, the fact that a company holding a lot of Bitcoin like MicroStrategy replaces the CEO has a certain impact on the cryptocurrency market. In fact, after this news, the price of Bitcoin dropped from $24,000 to over $23,000 per coin.

On August 3, the cryptocurrency sector continued to shake when Solana - one of the largest blockchain networks today - was attacked by hackers. This is a project that attracted great attention from the community late last year due to its much cheaper and faster transaction fees compared to the Ethereum blockchain.

According to blockchain analytics firm Elliptic, nearly 8,000 crypto wallets totaling over $5.2 million have been withdrawn, including Solana tokens (SOL) and stablecoin Tether (USDT). Meanwhile, security firm PeckShield estimates that about $8 million from victims was transferred to four unknown e-wallet addresses.


After the attack, the SOL token has lost more than 8% in value and is currently holding at $39 per coin. SOL is ranked 9th in the ranking of cryptocurrencies with the largest market capitalization with nearly 14 billion USD.

When Solana was struggling to cope with a cyber attack, on the evening of August 3, many users said that hundreds of thousands of dollars in "hot wallets" Phantom, Slope and Trust Wallet were withdrawn. A "hot wallet" is a wallet that is regularly connected to the Internet, usually a wallet of an exchange or a private service, as opposed to a "cold wallet" which is a wallet that stores cryptocurrencies that work without a network connection.

On Twitter, a Phantom representative said it was investigating "reported vulnerability in the Solana ecosystem". Other platforms are also to blame for the Solana hack, but some experts say otherwise. “This appears to be a flaw in certain wallet software, not in the Solana blockchain itself,” said Tom Robinson, an expert at Elliptic.

Thus, in just the first three days of August, more than half a billion dollars were stolen due to cyber attacks. In total since the beginning of this year, hackers have taken away nearly two billion USD through hacking into popular blockchains. According to CNBC, crypto market participants need to prepare for a month of uncertainty that awaits.

"The recent attacks on the popular blockchain show that we need to take a step back and question the security and speed of transactions. New generation blockchains for fast transactions, But there needs to be a balance between speed and security," advised William Callahan III, Chief Strategy Officer of Blockchain Intelligence Group.

Popular posts from this blog

Bitcoin miners standing in front of a fork in the road

A Healthy US Bitcoin Mining Industry Could Generate Significant Tax Revenue

Cooperation to remove blockchain difficulties in finance - banking