Crypto Guides, Knowledge & Insights

Somesing, South Korean Web3 Social Music Service, Faces Attack with $11.58 Million Loss

South Korean Web3 social music service Somesing announced that it suffered a security breach last Saturday, resulting in a loss of 730 million native tokens (SSX), approximately $11.58 million. This includes 504 million undistributed SSX tokens scheduled to circulate by the end of 2025 and 226 million SSX held by the Somesing Foundation, which are already part of its current circulation.　　Somesing stated, “It has been confirmed that this hacking incident is not related to any member of the Somesing team. Considering the method of the attack, it may have been carried out by professional hackers who specialize in attacking virtual assets.” The platform has reported the hacking incident to the National Police Agency, initiating an investigation, and has pledged to inform INTERPOL.　　Somesing is working with the local blockchain entity Klaytn Foundation and international law enforcement partner Uppsala Security to track the attackers. The platform plans to freeze relevant assets and take legal action once the perpetrators are identified.　　

2024-01-29Deep Dive

Jupiter to Test Launch Meme Token WEN Ahead of JUP, Airdrop Set to Open for Claiming Soon

Jupiter co-founder Meow announced on the X platform that the first token to be tested and issued on the LFG Launchpad platform will be WEN. The airdrop claiming for WEN will open at 10:00 AM EST on January 26 and continue until January 29.　　According to the disclosed token economic model, 70% of WEN will be airdropped to over a million Solana wallet addresses. The recipients of the airdrop include Jupiter users, Ovols NFT holders, Genesis Saga holders, mockJUP test users, among others. 20% of WEN will be allocated for building liquidity, and 10% of WEN will be reserved in the treasury. After the airdrop claiming period ends, all unclaimed WEN will be burned.　　Meow added that WEN is a token introduced by the Ovols team using Jupiters LFG Launchpad. Jupiter has no other relationship with the project besides hosting it and receiving 1% of WEN from the treasury allocation.　　In earlier announcements, Jupiter officially stated that it would conduct two token test launches before issuing JUP, one being the already issued mockJUP, and the other being a meme token. Earlier this week, Jupiter announced the launch of the Jupiter LFG Launchpad Beta version, indicating that it will be used to issue the

2024-01-26Deep Dive

JPMorgan: GBTC Profit-Taking Essentially Over, Limited Downside for Further Bitcoin Decline

JPMorgan stated that with the profit-taking from the Grayscale Bitcoin Trust (GBTC) mostly concluded, the downward pressure on Bitcoin prices has eased. The analyst team led by Nikolaos Panigirtzoglou indicated that since the shift to spot Bitcoin ETFs two weeks ago, GBTC has experienced outflows of $4.3 billion, exceeding JPMorgans earlier estimate of around $3 billion in outflows. Therefore, it can be inferred that the profit-taking from GBTC has mostly finished, suggesting that the major downward pressure on Bitcoin from this channel should be over. However, if the 1.5% fee of GBTC is not reduced soon, the fund might experience sustained outflows, potentially losing market share to competitors.　　The analysts also mentioned that although the introduction of spot Bitcoin ETFs may appear to fragment liquidity on the surface, in reality, guided by the experience of traditional asset class ETFs like stocks, spot ETFs are expected to enhance market depth and liquidity. Therefore, the advent of spot Bitcoin ETFs is anticipated to make the price discovery process for Bitcoin more efficient.　　

2024-01-26Deep Dive

Bitcoin Volatility Index Drops to 48.88 Yesterday, Hitting a Near Three-Month Low

The BitVol (Bitcoin Volatility) Index, launched by financial index company T3 Index in collaboration with the Bitcoin options trading platform LedgerX, dropped to 48.88 yesterday, marking a new low in nearly three months. The BitVol Index measures the 30-day expected implied volatility derived from tradable Bitcoin options prices. Implied volatility refers to the volatility implied by the actual options prices. It is calculated using the B-S options pricing formula, reverse-engineering the volatility by plugging in the actual options prices and other parameters except for the volatility parameter σ.　　

2024-01-26Deep Dive

SEC Chairman: Approval of Spot Bitcoin ETF Should Not Be Overinterpreted

SEC Chairman Gary Gensler stated on Wednesday that despite expectations that a spot Ethereum ETF might be the next to receive approval, the agencys recent approval of several spot Bitcoin trading products earlier this month is limited to this particular cryptocurrency.　　When asked about his views on an Ethereum ETF during a media briefing, Gensler said, “As I said two weeks ago, what we did with the bitcoin trading platform products is limited to this non-security commodity and shouldnt be read as beyond that.”　　Gensler noted, “In that context, theres more disclosure. They are now listed on stock exchanges rather than traded in the over-the-counter markets. There are 10 or 11 listed now, bringing a certain level of competition. Youve seen some competition, and investors benefit from it because the fees have come down.”　　

2024-01-25Deep Dive

CZ's $4.5 Billion Binance Equity Pledge for U.S. Travel Denied by Judge

According to CNBC, new court documents reveal that Binance founder CZ proposed to use $4.5 billion worth of Binance equity as collateral to return to the U.S. but was rejected by a judge.　　In a letter to Judge Richard Jones dated December 22, CZs lawyers stated that the valuation of CZs shares was based on Binances last funding round two years ago.　　Earlier, a federal judge had rejected CZs request to travel to the United Arab Emirates for important personal matters related to hospitalization and surgery in December 2023.　　

2024-01-25Deep Dive

Curve Founder's Leveraged Position May Face Liquidation Risk Again

Curve founder Michael Egorovs CRV vault is once again facing liquidation risk. He borrowed over $54 million across six lending platforms, with the collateral and remaining assets in the wallet primarily consisting of Curve. The safety factors for the six vaults range between 1.29 and 2.29. If the CRV price drops by another 23%, specifically to $0.36, it will trigger liquidation.　　Among them, the vault with the lowest safety factor is with Frax Lending, where the current borrowing interest rate is 35%. If the utilization rate continues to increase, Frax Lending may once again initiate a high-interest mode, accelerating the occurrence of liquidation. In this loan, Michael collateralized 39 million CRV, borrowed 17 million Frax, while Binances CRV trading volume in the past 24 hours was 10.9 million.　　

2024-01-25Deep Dive

BNB Chain Incurs an 85% Decrease in Losses Due to Security Incidents in 2023

AvengerDAO, in collaboration with Hashdit, Certik, Ancilia, and Salus Security, has jointly released its 2023 Security Report. The report provides an in-depth analysis of security events that occurred on the BNB Smart Chain (BNB Chain) in 2023. Financial losses on the BNB Chain significantly decreased in 2023, showing an 85% reduction compared to the previous year.　　Specifically, fiat losses decreased from approximately $43.7 million in the third quarter of 2023 to around $15.6 million in the fourth quarter, representing a 64% reduction. This decrease is mainly attributed to a 51% reduction in losses from hacker attacks. The core development team of BNB Chain expressed gratitude to the AvDao committee members Hashdit, Certik, Ancilia, and Salus for their insights and feedback, acknowledging their crucial role as leaders in the crypto security field in maintaining industry integrity.　　

2024-01-23Deep Dive

FTX Debt Investment Valuation Currently Approaches 80% of Face Value

Before the assessment hearing on January 25th, the trading prices of FTXs debt tokens in the cryptocurrency exchange had already increased, with creditors anticipating a ruling favorable to their claims for repayment in cryptocurrency “in-kind.”　　Cherokee Acquisition, an investment bank specializing in bankruptcy claims and providing liquidity for FTXs debt tokens, indicated that the valuation of FTX debt investments (as a percentage of the face value) is currently approaching 80%.　　Claims Market, an X account managed by a claims company, mentioned that as the expected court hearing on January 25th approaches, FTX will seek approval for its cryptocurrency price list, and debt token prices are expected to continue rising. Previously, FTX proposed a scheme to repay creditors based on the cryptocurrency prices on the day of bankruptcy. However, FTX creditors are still determined to accept “in-kind” payments, considering only the quantity of tokens lost, not market prices.　　In earlier reports, FTXs subsidiary, Alameda Research, withdrew its lawsuit against Grayscale. Insiders revealed that FTX has sold off 22 million Grayscale GBTC shares, with a significant portion being capital outflow, totaling nearly $1 billion. Currently, FTXs GBTC holdings have dropped to zero. Analysts believe that, theoretically, FTX has completed the sale of GBTC, and subsequent

2024-01-23Deep Dive

GAMEE Token: Security Incident Unfolds for GMEE Token

GAMEE Token posted on the X platform, stating that a security incident involving the GMEE token has occurred. Users are advised not to use GMEE until further notice. According to CoinGecko data, GMEE is currently priced at $0.01198 with a 24-hour decline of 53.5%.　　Preliminary investigations suggest that on January 23rd at 2:31 AM, the deployer address for Polygon GMEE may have been compromised through unauthorized GitLab access, resulting in the theft of 600 million GMEE tokens. These tokens were subsequently converted to ETH and MATIC without authorization. Over the next few hours, the attacker traded the stolen tokens through various DEX exchanges, impacting the GMEE token prices on various exchanges.　　According to the GMEE team, this vulnerability only affects the proprietary team token reserves, and assets owned by the community remain unaffected. The team does not hold or manage any assets owned by the community. Upon discovering the vulnerability, the team took measures to protect the token contract ownership and deployed a new secure address by transferring ownership from the compromised deployer address.　　

2024-01-23Deep Dive

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