Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:
Interest Rates have risen AGAIN ☹️
The Federal Reserve has hiked up interest rates by yet another 0.75%.
BREAKING: @federalreserve makes second consecutive 0.75 percentage point interest rate increase.
— CoinDesk (@CoinDesk) July 27, 2022
Interestingly, the markets anticipated that the Federal Reserve would have increased interest rates by 100 basis points, so this ‘lower than expected’ rate increase led to greens in the markets.
However, inflation is still running high, and the US has officially announced that their economy is in a recession.
BREAKING: 🇺🇸 United States is officially in a recession following two consecutive quarters of negative GDP growth.
— Watcher.Guru (@WatcherGuru) July 28, 2022
It may still be a while before we go back to a bull market!
Voyager ⛔️ FTX
FTX’s CEO, Samuel Bankman-Fried, looked to have given a lifeline to Voyager customers.
happy to do what we can to get liquidity to Voyager's customers: https://t.co/zDtGMfGq64 https://t.co/MdoIfU229B
— SBF (@SBF_FTX) July 22, 2022
FTX was offering to provide users with early liquidity, as their funds were locked up amidst Voyager filing for bankruptcy.
These users would receive a cash balance if they opened a new account on FTX, and are given the choice to either withdraw it or “purchase digital assets on the FTX platform”.
However, Voyager has shot back on the proposal, claiming that it will not benefit their customers.
Bankrupt Voyager says FTX bailout proposal will benefit only FTX, not customers. @thesamreynolds reports.https://t.co/WHkJGUDbjP
— CoinDesk (@CoinDesk) July 25, 2022
Rather, it seemed to be a ‘low ball’ bid by FTX to acquire more customers.
You can find out more about what happened to Voyager and other centralised lending platforms here, as well as some of the key lessons we can learn from this debacle.
Crypto hacks 🥷
Over this past week, there have been news regarding hacks on 2 crypto protocols:
Audius is one of the music platforms that aims to help musicians receive more equitable revenue for their content.
We featured Audius as one of the top DApps on the Solana network here.
However, there was an exploit on the network, which drained 18 million AUDIO tokens from the treasury.
A hacker made away with over $1 million from exploiting decentralized music platform Auduis. https://t.co/f8Bzp0ZP6I
— Cointelegraph (@Cointelegraph) July 24, 2022
This led to Audius halting all smart contracts on the Ethereum network,
The issue has been found and fixes are in progress to get things back to a stable state.
To prevent further damage, all Audius smart contracts on Ethereum had to be halted, including the token.
We do not believe any further funds are at risk.
More updates / post-mortem soon. https://t.co/i3MM9WjjgE
— Audius 🎧 (@AudiusProject) July 24, 2022
before they resumed the functionality again.
The $AUDIO token is fully functional once again.
Remaining smart contract functionality is being unpaused after thorough examination / mitigation of the vulnerability.
Thank you all for your patience and understanding. Full post-mortem likely to come tomorrow.
— Audius 🎧 (@AudiusProject) July 24, 2022
However, some of the tokens have already been dumped for about $1.08 million.
The Horizon Bridge that allows you to bridge between Ethereum, BNB Smart Chain and Harmony.
However, it was hacked in June, where $100 million worth of ETH was stolen.
$100 million worth of ETH stolen from Horizon bridge is now being laundered 😢https://t.co/7cCfUE5g08
— CoinMarketCap (@CoinMarketCap) June 28, 2022
Harmony aimed to reimburse the victims of this hack by minting up to 4.97 billion worth of ONE tokens.
The reimbursement proposal is posted and available for feedback. We encourage the #HarmonyONE community to read and engage in conversation with each other and the core team.
Thank you for your patience as we work to move forward together as ONE.
— Harmony 💙 (@harmonyprotocol) July 27, 2022
However, this has led to a lot of protests by the community,
Community members are anything but thrilled with Harmony's proposal to mint up to 4.97 billion new ONE tokens as a means to compensate victims of the June Horizon Bridge attack. https://t.co/zOP8pJIAE1
— Cointelegraph (@Cointelegraph) July 27, 2022
As it will result in inflationary pressure on the token’s value with a sudden increase in the number of tokens.
Ultimately, the Harmony ONE team withdrew their proposal, and will be heading back to the drawing board to think of another solution.
#HarmonyONE founder Stephen Tse provided the community with a response and next steps on the recent proposal.
"From your suggestions and feedback above, we will create additional proposals and opportunities for everyone to engage in the process."
— Harmony 💙 (@harmonyprotocol) July 28, 2022
New Layer 1? 👀
While Ethereum is the undisputed king of DeFi right now, many blockchains are fighting to claim the throne of the best Layer 1 blockchain.
Aptos could be their latest competitor, as they announced a $150 million fund round led by FTX Ventures.
.@AptosLabs has raised $150 million in a Series A funding round led by FTX Ventures as it looks to bring the Diem blockchain back to life. Reporting by @oknightcryptohttps://t.co/sMWbm7PDHo
— CoinDesk (@CoinDesk) July 25, 2022
Aptos was founded by former Meta employees who worked on the Diem blockchain, before it was shut down.
We can look forward to a transaction processing speed of up to 160,000 transactions per second (tps), which is much faster than other Layer 1s like Solana (65,000 tps).
Meanwhile, Ethereum has been continuously innovating, and you can read more about their latest upgrade, The Merge, here.
Exchanges being scrutinised 🔎
Coinbase and Kraken are facing trouble from regulators yet again.
The SEC is investigating whether Coinbase was allowing investors to trade cryptocurrencies that they defined to be securities.
NEW: The @SECgov is reportedly investigating @coinbase over some of the cryptocurrencies it's listed. @nikhileshde @realDannyNelson reporthttps://t.co/Jj65avNOBX
— CoinDesk (@CoinDesk) July 26, 2022
However, Coinbase has refuted this, and has appealed to the SEC to regulate cryptocurrencies separately, and not based on the current laws.
Laws from the 1930s couldn’t predict crypto. That’s why we filed a petition to @SECGov to issue securities rules that work for crypto securities and unlock a new market for US consumers, developers, and platforms. @faryarshirzad explains 👇 https://t.co/tauZjN5ZQV
— Coinbase (@coinbase) July 25, 2022
This still caused Cathie Wood, CEO of ARK Invest, to sell off 1.41 million Coinbase shares.
Cathie Wood's Ark Invest has sold 1.41M in Coinbase shares — however, her investment firm still thinks that BTC could hit $1M by 2030…🤯
Read more here ⬇️ https://t.co/ElxyV7YWL3
— CoinMarketCap (@CoinMarketCap) July 27, 2022
Meanwhile, Kraken is being investigated after allowing Iranian customers to use the platform, despite sanctions against Iran by the US.
Kraken, one of the world’s largest crypto exchanges, is under federal investigation, suspected of violating U.S. sanctions by allowing users in Iran and elsewhere to buy and sell digital tokens, according to people with knowledge of the inquiry. https://t.co/3MHynLkbVb
— The New York Times (@nytimes) July 26, 2022
When will we be able to reach a bull market again? Do you think that Aptos has the potential to overthrow Ethereum? Tweet us or send us a message on Telegram to let us know!
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