Crypto Guides, Knowledge & Insights

Multichain: Assets Locked in Unexpected Movement, Users Advised to Temporarily Halt Multichain Servi

In accordance with an official announcement from Multichain, the locked assets on the Multichain MPC addresses have experienced abnormal transfers to unknown addresses. As a precautionary measure, all users are strongly recommended to temporarily halt the utilization of Multichain services and revoke any contract approvals linked to Multichain.　　According to a report from The Block, tokens worth over $100 million have been withdrawn from the Multichain bridge on the Fantom network. Security firms speculate that this incident could be the result of a security vulnerability.　　The tokens moved include $58 million of the stablecoin USDC, 1,020 wrapped bitcoin ($30.9 million), 7,200 wrapped ether ($13.7 million) and $4 million of the stablecoin DAI. It also included further tokens like Chainlink, Curve DAO, YFI, Wootrade Network and nearly a quarter of the total supply of UniDex.　　It is worth mentioning that Multichain experienced a vulnerability attack on January 10, 2022. During the incident, a total of 1,889.6612 WETH and 833.4191 AVAX were stolen. Through the combined efforts of Multichain and white hat hackers, 912.7984 WETH and 125 AVAX were successfully recovered.

2023-07-07Deep Dive

Twitter Implements Reading Limits, Meta Launches Threads as a Competitor

On July 2nd, Elon Musk announced that Twitter would temporarily limit the number of articles users can read in response to concerns about data scraping and system manipulation in extreme situations. This action has sparked dissatisfaction within the community.　　On July 6th, Meta, the parent company of Facebook, officially launched its new application called Threads. Threads integrates the decentralized social media protocol ActivityPub, based on Mastodon, and allows users to log in using their Instagram accounts. It aims to compete with Elon Musks Twitter.　　One of the advantages of Threads is that Instagram has a massive existing user base. When Instagram users create an account, they can choose to immediately add users they are already following.　　Mark Zuckerberg, CEO of Meta, stated that within the first seven hours of launching Threads, over 10 million users have registered.　　In a minor incident, Threads encountered several bugs and received reports of users experiencing accessibility issues within the first hour of its launch.

2023-07-07Deep Dive

FTX Plans to Postpone Sale of Japanese Subsidiary, Seeks to Sell Entire Group to Increase Sale Price

Cryptocurrency exchange FTX Trading plans to postpone the sale of its Japanese subsidiary, FTX Japan, and has conveyed this intention to the Japanese Financial Services Agency through FTX Japan.　　FTXs decision to suspend the sale of FTX Japan is not aimed at delaying the sale process of the Japanese subsidiary itself. A senior executive from FTX Group stated, “They aim to increase the sale price by selling the entire group instead of individual regional subsidiaries.”　　In addition, the customer asset repayment process initiated by FTX Japan in February has been progressing smoothly. Currently, FTX Japan has returned 80% of Japanese yen and other fiat currencies, as well as virtual currencies, to its customers. If the trading system previously used by FTX Japans predecessor, QUOINE, operates smoothly, the Japanese Financial Services Agency may allow the company to resume operations by the end of the year (Nikkei News).　　According to previous reports in April, FTX confirmed its plans to relaunch its Japanese exchange. Although there was investor interest in acquiring the company, the sale plan was temporarily halted in order to maximize value. FTX Japan also proposed a core employee incentive program called “License and Restart Award.”　　The disclosure documents indicate that “the potential sale process

2023-07-06Deep Dive

Circle, One of the USDC Issuers, Considers Issuing Stablecoin in Japan Based on New Regulations

Circle is a financial technology company headquartered in the United States, founded in 2013. The company operates primarily in the digital currency and blockchain technology space.　　Circle offers a range of products and services, including:　　Circle Pay: This is a mobile payment application that enables users to send and receive funds globally in a fast, secure, and cost-effective manner.　　USDC (USD Coin): USDC is a stablecoin based on the Ethereum blockchain, issued in collaboration between Circle and Coinbase. The goal of USDC is to maintain a fixed exchange rate of 1:1 with the US dollar, providing a stable value reserve in the digital currency market.　　Circle Trade: Circle Trade is a subsidiary that provides cryptocurrency trading and liquidity services, offering solutions for institutional investors seeking high liquidity and large-scale transactions.　　As a fintech company, Circle has gained prominence in the industry, particularly through its joint issuance with Coinbase of USDC, a dollar-pegged stablecoin. Currently, USDC has a market capitalization of $27.6 billion, making it the second-largest dollar-pegged stablecoin in the digital currency industry, following USDT.　　It is reported that in December of last year, the Japanese Financial Services Agency lifted the ban on overseas stablecoins. Japans stablecoin legislation made it one of the earliest countries to

2023-07-06Deep Dive

UK Now Admits Crypto As Regulated Financial Activity In The Country

The UK has passed a bill to regulate cryptocurrencies and stablecoins, strengthening its financial ecosystem.　　The new law provides clear rules for crypto assets as financial products and promotes blockchain innovation in financial markets.　　The UKs proactive approach sets an example for other countries looking to regulate the crypto industry.　　The United Kingdom (UK) has taken a proactive step to strengthen its financial ecosystem with the Royal Assent of the Financial Services and Markets Bill (FSMB).　　King Charles endorsed a measure providing authorities the authority to regulate crypto and stablecoins on Thursday, marking the last formal step before the bill becomes law.　　The UK Government has been working on the Financial Services and Markets Bill for quite some time, and it believes that its passage will play a central role in delivering the Government‘s vision of growing the economy and creating an open, sustainable, technologically advanced financial services sector, and it includes measures to bring crypto and stablecoins under regulation. The law was adopted by Parliament’s upper house last week.　　Andrew Griffith, the Treasurys Economic Secretary, stated:　　“This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth.”　　Among other things, the FSMB establishes a clear

2023-07-06Deep Dive

Celsius Moved Around $74 Million Altcoins Into BTC And ETH After Approval

Celsius moved about $74 million in altcoins into Bitcoin and Ethereum.　　Celsius wallet holds about $615 million in crypto, including $296 million in Bitcoin and $120 million in ethereum.　　On June 30, a New York court agreed that the bankrupt platform could begin converting its altcoins into bitcoin and ether from July 1.　　According to TheBlock, Celsius transferred approximately $74 million in altcoins, including Synthetix, Uniswap, ZRX, and several stablecoins, after being approved to convert altcoins into Bitcoin and Ethereum. One of the transfers went to a wallet linked to the market maker Wintermute.　　According to data from the crypto data platform Arkham, the Celsius wallet holds about $615 million in crypto, including $296 million in Bitcoin and $120 million in ethereum. They also have around $100 million worth of CELs and approximately $30 million worth of stablecoins, with the remaining altcoins worth around $69 million.　　In addition, Arkhams report also states that network address Celsius (0x1C…9074) has staked 40.96 thousand ETH, worth about $75 million, for ETH2 staking contract through Figment from date May 10 to 12.　　As previously reported, on June 30, a New York court approved Celsius to convert its altcoins into bitcoin and ether from July 1.　　Celsius is preparing a plan to

2023-07-06Deep Dive

Ethereum Price Retests Uptrend Support Amidst Market Turmoil

Ethereums price fails to clear the $1,975 resistance and starts a downside correction, trading below $1,950 level.　　Immediate resistance is near the $1,925 level and the next major resistance is near the $1,945 level.　　Clear move above $1,945 resistance could push the price towards $1,975 and the next major resistance is near the $2,120 level.　　Ethereums price has encountered a downside correction, failing to clear the $1,975 resistance level.　　As a result, there has been a decline below $1,950, similar to Bitcoin, and even below the $1,920 support level. The price eventually spiked below $1,900, reaching a low of $1,894, and is now consolidating losses. Currently, the price is near the 23.6% Fib retracement level of the recent decline from the $1,974 swing high to the $1,894 low.　　Ether is now trading below $1,940 and the 100-hourly Simple Moving Average, indicating a bearish trend. On the hourly chart of ETH/USD, there is a key bearish trend line with resistance near $1,925. The immediate resistance level stands near the $1,925 level, which is the 100-hourly Simple Moving Average. The next major resistance level is at $1,945, which is close to the 61.8% Fib retracement level of the recent decline from the $1,974 swing high to the

2023-07-06Deep Dive

Glassnode Tweet: Exchange Addresses Hold Decreased Bitcoin Balance to 2.26 Million Coins

According to data from Glassnode platform, the number of BTC held on exchanges has been consistently decreasing, with the balance dropping to 2.26 million coins, reaching its lowest point since March 14, 2018 (1940 days ago).　　Typically, there are two main reasons for the outflow of BTC from exchange addresses:　　1. Exchanges typically hold users assets in a centralized manner. When a trust crisis occurs, users tend to withdraw their BTC to their own wallets.　　2. Traders, when not in immediate need of selling, withdraw BTC to their wallets for storage.　　On the Glassnode platform, the Exchange Balance data is often considered to have a non-linear inverse correlation with BTC price and can be used as one of the factors to assess the medium to long-term price trends of BTC.　　Generally, in the absence of black swan events, when the data shows a sharp decrease in exchange balances in the short term, BTC prices tend to rise. Conversely, when the data shows a sudden increase in exchange balances in the short term, BTC prices tend to decline.　　However, its important to consider the impact of black swan events and other external factors that may introduce noise into the data. After filtering out the noise caused by

2023-07-06Deep Dive

Do Kwon Transfers $163 Million Worth Of Bitcoin To Anonymous Wallet

Terraform Labs CEO Do Kwons encrypted wallet transferred $163 million worth of Bitcoin to a new anonymous wallet on July 3rd, 2021.　　Prior to the BTC transfer, a test transfer appeared between the LFG and anonymous wallets on June 22nd and 23rd, where they exchanged 0.0211 BTC three times.　　Digital Asset reports that Terraform Labs CEO, Do Kwon transferred 5292 BTC (approximately $163 million) from a Luna Foundation Guard (LFG) Binance wallet to a new anonymous wallet on July 3rd. Prior to this transfer, only 351 BTC had been withdrawn from the wallet on May 8th.　　On July 3rd, 2021, the encrypted wallet held by Terraform Labs CEO Do Kwon, known as Luna Foundation Guard (LFG)s Binance wallet, transferred all 5,292 BTC (approximately $163 million) to a new anonymous wallet that has no known connection to Kwon, according to Digital Asset. This transfer was confirmed by on-chain data analysis. Prior to the transfer, the wallet had withdrawn 351 BTC on May 8th.　　The LFG wallet is the Binance wallet of the Luna Foundation, which Kwon established in January 2021 with the aim of defending the price of LUNC (Terra Classic). The wallet contained the largest amount of Bitcoin among Kwons on-chain assets.　　On November 2022,

2023-07-05Deep Dive

Hong Kong Considers Launching HKDG Stablecoin To Boost Digital Economy

Hong Kong government is considering creating its own stablecoin, HKDG, to strengthen the citys digital economy and increase financial sector efficiency.　　Experts suggest a government-backed HKDG could offer more confidence and reduced risk compared to private stablecoins, potentially competing with major stablecoins like USDT and USDC.　　The launch of HKDG could be a significant step towards de-dollarization and encourage other sovereign currencies to follow suit, promoting global financial market diversity.　　According to Wu Blockchain News, significant players, including the Vice-President of the Hong Kong University of Science and Technology, have suggested that the Hong Kong government create its own stablecoin, dubbed HKDG, as a strategic step to strengthen the citys digital economy.　　The Hong Kong Special Administrative Region governments continued promotion and adoption of digital assets puts it ahead of nations or areas such as the United States and Singapore. Stablecoins, which bridge the gap between conventional banking and the digital economy, are becoming more significant in this setting.　　The Hong Kong SAR government is actively fostering the development of digital assets and the digital economy, owing to the fast expansion of the global digital asset market.　　Simultaneously, the Hong Kong dollar stablecoin has the potential to increase the efficiency and inclusivity of Hong Kong‘s financial

2023-07-05Deep Dive

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