Crypto Guides, Knowledge & Insights

Ledger CTO warns crypto users about the dangers of 'blind signing'

With the recent attack on OpenSea highlighting blockchain vulnerabilities, Charles Guillemet, the chief technology officer of Ledger warns users about “blind signing,” which he defines as “consenting a transaction to be signed blindly, without understanding what it means.”　　In an interview with Cointelegraph, Guillemet broke down the problems and highlighted issues with blind signing. The Ledger chief technology officer notes that consenting to transactions requires signing a message to be sent to the blockchain. A user is the only one capable of signing transactions with the private key, while others can verify if its correct. “The issue is that this message is not intelligible by default. Its a digital payload,” says Guillemet.　　Guillemet also explained that when a coin transfer is signed, it‘s normally supported by a wallet that “properly parses the payload and displays its intent.” However, when it comes to signing complex interactions with smart contracts, Guillemet says that “parsing the display is not always properly supported and you have no choice but consenting blindly for a transaction that you don’t understand.”　　“It‘s risky because you can think you’re signing a transaction to move part of your funds to address A while you actually sign a transaction to move all your

2022-03-04Deep Dive

LUNA flips Ethereum becoming second largest network for staked value

Data shows that there are currently 226,325 stakers accounting for $29.5 billion worth of locked up LUNA which has propelled the network into second place for staked value.　　According to data from Staking Rewards, Terra (LUNA) has flipped Ethereum (ETH) in terms of staked value, with $29.5 billion worth of LUNA locked up compared to Ethers $25.9 billion.　　The platforms data shows that there are currently 226,325 LUNA stakers, making it the second most staked crypto asset with more than four times the number of those staking ETH at 54,768. Solana leads the staking charts with $35 billion in staked value.　　In terms of annual staking rewards, LUNA is estimated to yield 6.62% on average while Ethereum fetches 4.81%. The most rewarding out of the top 10 staked assets is Polkadot (DOT) with 13.92%.　　Staking Rewards highlighted the flippening on March 1, noting that LUNA staking had overtaken Ethereum, however, some users pointed out that data from DeFi Llama appears to contradict the figures dramatically.　　DeFi Llama‘s data shows that Ethereum towers over its competitors in terms of a total value locked (TVL) of $111.4 billion, compared to LUNA’s TVL of $23.35 billion. However, these figures incorporate collateral locked across DeFi protocols, not just ETH

2022-03-04Deep Dive

Monetary Weapons: 4 Lessons from Canada and Russia

Just when fear of the latest COVID-19 variant was waning and long-term planning was starting to seem possible again, February brought unsettling episodes that shattered dreams of lasting peace and normality. Money played a crucial part in these episodes.　　In Canada, we saw a Liberal government invoking for the first time the federal Emergencies Act, enacted in 1988, to end disruptions caused by protestors blocking borders and streets with trucks. Among other measures, the government ordered banks, financial institutions and even crypto exchanges to freeze personal and corporate accounts suspected of sending contributions to protestors, eliminating the need to obtain a court order and the risk of later being sued for abuse.　　It didn‘t matter whether you were transferring C$10 (US$7.89) or C$100,000 or paying for legitimate services provided a week ago: Send money to a targeted account and yours might end up frozen, too. A democratic government indiscriminately depriving its citizens of money as a sanction for supporting a protest shouldn’t be taken lightly – even after the emergency declaration was revoked. But this action paled in comparison to what was about to happen.　　In the last weekend of February, reacting to a dreadful invasion of Ukraine, the U.S. and the European

2022-03-04Deep Dive

U.S. Department of Justice to set up task force to enforce Russia sanctions

The U.S. Department of Justice will be creating a task force saddled with enforcing sanctions against the richest Russians and their assets in the U.S.The U.S. sets up a new taskforce　　The interagency task force is part of the grand effort to pressure Russia over its invasion of Ukraine. Already, sanctions against the countrys financial system have led the wealthiest in the country to lose a chunk of their net worth.　　The task force referred to as the “KleptoCapture” task force by Bloomberg will consist of experts on sanctions and export control enforcement, asset forfeiture, foreign evidence collection, national security investigations, tax enforcement, and anti-money laundering. It was announced by President Biden during his State of Union address.　　According to the report, an experienced corruption prosecutor with the Attorneys Office for the Southern District of New York will be leading the task force.　　This task force is the US way of sending a clear message to those whove used illegal means to gather money and seek to evade sanctions, said Lisa Monaco, Deputy Attorney General.　　This group is another effort on the part of the US government to isolate Russia from the global financial system. Beyond the grave financial sanctions already imposed on the country,

2022-03-04Deep Dive

NFTs NFT buyers drop to lows last seen five months ago

It has been a few rollercoaster months for the Non-fungible sector, but it appears the hype has reduced a little. 　　Data from CryptoSlam revealed that the number of unique NFT buyers for February was 796,009, down by 12% from its January record. This marks the first time that buyers will be below 800,000 since October 2021.Numbers of NFT buyers drop　　It wasnt only the number of buyers that dropped. The trading volume also dropped significantly to $2.6 billion. This is a 40% fall from the record January volume. 　　With the drop in NFT trading volumes, blockchain networks supporting NFTs have also seen a drop in sales volume. CryptoSlam reports that only two of the 12 networks have seen gains in the last 24 hours.　　Flow and Arbitrum had 20% and 538% gains, respectively. The rest, which includes Ethereum, Solana, Avalanche, Cronos, BSC, and the rest reported losses.　　However, this drop in trading volume isnt necessarily a cause for alarm. Given the impressive performance of NFT in January, experts believe that a pullback is only appropriate.NFT searches on Google drops too　　But theres still a good cause for concern given that interest in NFTs has also waned. A look at Google trends shows that the

2022-03-04Deep Dive

Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation

MiCA Proposal Drops Ban on Proof-of-Work Coins　　Wording that could have banned cryptocurrencies with proof-of-work (PoW) mining, like bitcoin, is missing in the latest version of EUs Markets in Crypto Assets (MiCA) framework. The European Parliament (EP) was expected to approve the proposal on the last day of February but the vote was postponed to address concerns raised by representatives of the crypto industry.　　“The Bitcoin ban in the EU is off the table for now,” BTC Echo noted, quoting the document. The German crypto news outlet revealed that the controversial paragraph has been dropped. The text proposed by the factions of the Left, Greens, and Social Democrats would have prohibited companies from offering services for the acquisition, custody and trading of PoW-based crypto assets.　　The scheduled vote was canceled on the request of Stefan Berger, the rapporteur for the legislative package, who has now confirmed BTC Echos report in a tweet posted late on Tuesday. He also told the publication that negotiations have resumed.Proof-of-Work Ban Removed From Europes Proposed Crypto Regulation　　A text threatening to prohibit cryptocurrencies relying on energy-intensive proof-of-work mining has been deleted from the draft legislation aimed at regulating the European crypto space. The move comes after the controversial provision

2022-03-04Deep Dive

77% of Saudis Aware of Cryptocurrencies, Only 18% Currently Buying and Selling

Easy Accessibility of Virtual Coins　　According to the findings of a Yougov survey, about 77% of Saudi Arabian residents are aware of cryptocurrencies, which suggests that the asset class “has generated a fair amount of awareness.” The study data, on the other hand, shows that only 18% of those surveyed confirmed they are buying and selling cryptocurrencies.　　As shown in the study data, while younger Saudis are currently dominating crypto trading in the kingdom, the findings show that older Saudis also “plan to deal in it.”　　Concerning the factors that motivate Saudi residents to invest or trade cryptocurrencies, the study found that almost half of the respondents cite their accessibility. The report states:　　Currently, the key motivation for most Kingdom of Saudi Arabia [KSA] residents who either invest or plan to invest in digital currencies is the easy accessibility of virtual coins for trading (49%).　　According to the study, 43% of the respondents that already buy and sell crypto assets point to the “high returns” on investments as the other key motivator. The study notes that “this aspect has a higher appeal among 45+ adults as compared to the rest.”Barriers Stopping Saudis From Investing in Crypto　　About 38% of Saudi residents that buy and sell cryptocurrencies

2022-03-04Deep Dive

Increased Scam Reports Linked to Crypto, FCA Finds

Reports of potential crypto scams shot up in the middle of 2021, according to the UKs Financial Conduct Authority (FCA), as the regulator seeks to further crack down on actors causing investor harm.　　The FCA had roughly 16,400 reports of possible scams between April and September of 2021, according to agency findings published Thursday — up from 12,400 over the same period the year prior.　　Boiler rooms were the most commonly reported scam, where fraudsters cold-call investors offering them worthless, overpriced or even non-existent shares or bonds.　　The three other most common reports were of cryptocurrency scams, FCA impersonation scams and recovery rooms — where fraudsters offer to help investors who were scammed or lost money on an investment get their money back for an upfront fee.　　Overall, the FCA stopped 32 new firms, or 25%, from entering the consumer investments market between April and September.　　Of the more than 16,000 scam inquiries, about 3,000 were related to cryptocurrencies — up 14% from the previous six months.　　The FCA also offers a ScamSmart Warning List tool, which allows people to check the safety or risks of an investment opportunity. Cryptocurrency represents 34% of the checks, the most of any investment opportunity. The checks on crypto grew

2022-03-04Deep Dive

Bill Miller Says Collapse of The Russian Ruble Is Very Bullish for Bitcoin

Legacy investor, fund manager, and philanthropist Bill Miller believes that the financial sanctions imposed on Russia could cause bitcoins price to soar. He pointed out that gold is the only reserve asset the largest country by landmass controls on its own, meaning that BTC might gain traction in the days to come.　　BTCs Surge Following The Crash of The Ruble　　The military conflict in Ukraine changed the tides in the financial world drastically. NATO and the EU declared economic war on Putins regime. The USA, the UK, Germany, and many others cut their monetary connection with Russia and excluded the many Russian banks from the major payment system SWIFT.　　As a result of those sanctions, the ruble plummeted by over 25%, while Russian citizens started looking for alternative financial instruments to preserve their savings. Bitcoin trading volumes in the region spiked to record levels.　　In a recent interview for CNBC, the former Chairman of Legg Mason Capital Management – Bill Miller – outlined that Russia keeps 16% of its reserves in dollars and 32% in euros. Those assets are managed by “people who want to do them harm.” He further stated that the only part of their reserves, which other nations can not control,

2022-03-04Deep Dive

Malaysian Police Shut Down 3 Crypto Mining Operators Over Alleged Electricity Theft

IN BRIEF　　Three crypto mining operations have been stopped by Mallaysian law enforcement for alleged electricity theft.　　Since 2018, losses from electricity theft had reached over $549 million.　　Twelve suspects were arrested, ranging in ages from 18 to 43, where seven of them have prior criminal records.　　With electricity theft becoming more common in Malaysia for cryptocurrency mining, the Malaysian police shut down three cryptocurrency mining operations in Klang on Thursday.　　In a joint operation with the Tenaga Nasional Berhad and Klang Municipal Council, at least 12 suspects were arrested for allegations involving electricity theft. Malaysian Anti-Corruption Commission (MACC) Commissioner Tan Sri Azam Baki said they had recorded a total of 7,209 cases of electricity theft since 2018, resulting in over $549 million in losses.　　“We carried out raids on three premises in Bandar Puteri and Bayu Perdana, arrested 12 men, and seized RM65,000 worth of cryptocurrency mining machines,” said South Klang OCPD Asst Commissioner Cha Hoong Fong.　　According to law enforcement, of the twelve suspects arrested, the background checks for seven of them returned with prior criminal records.　　“The suspects were aged between 18 and 43. Background checks showed seven of them have prior criminal records.”　　Cha added the suspects were employed as technicians and caretakers to maintain

2022-03-04Deep Dive

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