- The team at the Terra-based Mirror Protocol has stopped an ongoing exploit that had already siphoned off $2 million in assets.
- The exploit was made possible through a faulty price Oracle that quoted the price of LUNC at around 5 UST when it was much lower.
- The attacker then loaded up on collateral and exited with borrowed real assets.
The team at the Terra-based Mirror Protocol has averted further potential damages by stopping an ongoing exploit dead on its tracks, which had already resulted in the loss of$2 million in assets.
According to Terra community member FatMan, the crisis was averted by the team who ‘disabled the usage of mBTC, mETH, mGLXY, and mDOT as collateral.’ This in turn locked out the attacker from using his ill-gotten wealth to drain the rest of the pools from the protocol.
Crisis averted – in the nick of time, Mirror disabled the usage of mBTC, mETH, mGLXY and mDOT as collateral. The attacker can no longer use his ill-gotten endowment to drain the rest of the pools. Great job @mirror_protocol – thank you! https://t.co/o64SVIRBmZ
— FatMan (@FatManTerra) May 31, 2022
Mirror Protocol Was in the Process of Being Drained with $2M Stolen
The crisis was averted after FatMan and fellow Terra Community members alerted the developer team at Mirror that the protocol was being actively drained with roughly $2 million already stolen.
According to FatMan, the attack was made possible through the utilization of a faulty price oracle that valued LUNC at around 5 UST when it was actually ‘under a micro cent.’ The discrepancy resulted in a scenario where for $1,000, the attacker could load up on $1.3 million in collateral and use it to borrow real assets that can be withdrawn.
FatMan went on to warn that the losses could be much higher once the stock markets opened earlier today. He explained:
So far, the mBTC, mETH, mDOT and mGLXY pools have been drained. In around 12 hours, the market feed will kick in, and the attacker will be able to drain all of the mAsset pools (such as mSPY and mAAPL, mAMZN, etc.) – most of the pools can still be saved.
[Do Kwon and the Mirror Protocol] Please look into fixing the LUNC price oracle, because in a short while, all liquidity pools will be drained, Mirror will accrue irremediable bad debt, and the system will collapse in on itself. This is not the time to be negligent.
The Mirror Protocol Also Suffered a $90M Exploit that Went Unnoticed for Seven Months.
The Mirror Protocol is a DApp designed to create synthetic assets called Mirrored Assets (mAssets) that track the price of real-world assets such as stocks and cryptocurrencies. The minting of mAssets is decentralized and initiated by users by opening a position and depositing collateral.
Terra’s Mirror Protocol recently made headlines for suffering a $90 million exploit last October. The attack went unnoticed for seven months only to be discovered a few days ago.
CZ: Binance Is Looking at 50 to 100 Deal Proposals From Projects Affected by the Crypto Market Drawdown
- CZ has clarified that Binance is looking at 50 to 100 deal proposals from crypto projects affected by the ongoing crypto winter.
- CZ was correcting reports by the Block that had misquoted him as saying that Binance was looking at 5,200 deals.
The founder and CEO of Binance, CZ, has clarified via Twitter that the exchange was looking at 50 to 100 deals from crypto companies affected by the ongoing bear market.
His clarification comes from publications such as The Block, misquoting him as saying that the exchange was looking at ‘5,200 deal proposals amid the market downturn.’ CZ’s clarification on the matter can be found in the following tweet.
Game of telephone. During my live interview with Yahoo earlier, I said 50 to 100. The clip is online. It become 5200 somehow by one journalist somewhere… And even CMC reposted the “news”. 😂 pic.twitter.com/VXpATG7dBp
— CZ 🔶 Binance (@cz_binance) June 24, 2022
Easy to See How it Happens. Probably My Fault for Poor Pronunciation – CZ.
In a follow-up Tweet, CZ explained that he understood how he might have been misquoted, explaining that he was probably at fault due to poor pronunciation. He said:
Fifty to a hundred => Fifty two hundred
Easy to see how it happens. Probably my fault too for poor pronunciation. And big numbers spread. Made my day.
Binance is Looking for Ways to Help Struggling Crypto Companies.
CZ’s misquoted statement comes from Yahoo.Finance interview where he explained that the crypto exchange was looking for ways to help struggling companies through loans, minority investments, or majority acquisitions.
He also pointed out that crypto projects knew Binance had substantial cash reserves and was the main reason the exchange was being approached for funding. He explained:
Everybody knows we have the largest cash reserves in the industry. We just launched the Cristiano Ronaldo deal yesterday. That is a multi-hundred dollar, multi-year deal. So we have cash reserves. Everyone already knows that in this industry and they are talking to us.
Clear Regulatory Guidelines on Reserves for Crypto Projects.
Concerning crypto regulations in a time when projects are becoming insolvent and possibly bankrupt, CZ emphasized the need for regulatory clarity and more communication from projects in distress. He said:
I think there should be clear regulatory guidelines on reserves for different types of businesses in the crypto space. I don’t think there are such clear guidelines today in most countries and also there should be requirements for transparency and disclosure.
We have seen certain projects when they are under stress, the stop communication which is really bad…especially if you are under stress, you got to communicate more frequently with users. So that is something we are trying to push the industry players to do but more regulatory guidelines in this area will definitely help.
Tron’s (TRX) Total Accounts Hits a New Milestone of 100M As the Project Celebrates its 4th Anniversary
- The total number of accounts on the Tron blockchain has hit a new milestone of 100 million.
- Tron is also celebrating its 4th Anniversary as an independent chain after migrating from Ethereum on June 25th, 2018.
The total number of accounts on the Tron blockchain has hit a new milestone of 100 million. The team at Tron DAO highlighted the milestone through the tweet below which also pointed out that Tron was ‘the world’s fastest growing public chain with 3.4 billion transactions, millions of daily active users and continuous daily new accounts every day.’
🎉Congratulations!!! #TRON‘s total accounts exceeded 100 million! Milestone achieved!
🚀#TRON is the world’s fastest-growing public chain with 3.4 billion transactions, millions of DAU, and continuous daily new accounts every day.
— TRON DAO (@trondao) June 25, 2022
100 Million Users is Just a Beginning of Tron’s Mass Adoption – Justin Sun
TRON total users just surpassed 100 million.
It is just a beginning of our mass adoption journey! Always remember there are 7 billion people on this planet!
Tron Celebrates its 4th Anniversary as an Independent Blockchain.
Also today, the Tron project and community celebrated its fourth Anniversary as an independent chain after migrating from Ethereum on June 25th, 2018. The Tron DAO team marked the event by tweeting a 2018 quote from Justin Sun saying, ‘ Tron is founded on a community of active users who should have their voices heard.’
🎉Celebrating the 4-year anniversary of #TRON independence day!
— TRON DAO (@trondao) June 25, 2022
The Price of Tron Continues to Benefit from Purchases of TRX by the TRON DAO Reserve.
With respect to value, Tron has benefited from the continual purchases of TRX by the Tron DAO reserve ‘to safeguard the overall blockchain industry and crypto market.’ The most recent purchase of $10 million worth of USDD and TRX was made earlier today as seen in the following tweet.
— TRON DAO Reserve (@trondaoreserve) June 25, 2022
The purchases by the Tron DAO reserve have been a way of preventing short sellers from pushing down the price of TRX and that of USDD. The impact of the purchases of TRX by the Tron DAO reserve can be seen in the following daily chart.
Also, from the chart, it can be concluded that the future price of TRX cannot be easily forecasted.
To begin with, the daily MACD is about to cross in a bullish manner below the baseline. Secondly, the daily MFI and RSI are in neutral territory of 45 and 42, respectively. Thirdly, Tron is about to experience a death cross with the 50-day moving average (white) and the 200-day moving average (green). Fourthly, Tron’s trade volume is also reducing, hinting at a bearish future for TRX.
Therefore, caution is advised when trading TRX, given the conflicting events of the Tron DAO Reserve’s mission to keep buying the digital asset and the bearish environment highlighted by some of the indicators on the daily chart.
Bitcoin Selling By Miners Could Continue into Q3 if BTC’s Price Does Not Improve – JP Morgan
- Bitcoin miners needing to sell could weigh down on the price of BTC for some time.
- According to analysts from JP Morgan, miners offloading Bitcoin to cover costs could continue into the third quarter of 2022 if the value of BTC does not improve.
- However, selling pressure could reduce, given Bitcoin production costs have dropped from $18k – $20k to $15k due to new machines being energy efficient.
Bitcoin miners needing to sell their coins could continue to weigh down the price of BTC for some time.
According to JP Morgan analysts, public-listed miners have already reported Bitcoin sales in May and June to increase their liquidity, meet production costs, and possible deleverage. The same public-listed miners make up 20% of the total Bitcoin miners.
Bitcoin Selling by Miners Could Continue into Q3 if BTC Prices Do Not Improve.
At the same time, the analysts from JP Morgan forecasted that privately-held Bitcoin miners could have sold a considerable chunk of their BTC holdings to meet ongoing costs. Furthermore, selling by all Bitcoin miners could roll into Q3 if BTC’s value did not improve. They explained:
Offloading of Bitcoins by miners, in order to meet ongoing costs or to delever, could continue into Q3 if their profitability fails to improve.
That offloading has likely already weighed on prices in May and June, though there is a risk that this pressure could continue.
Bitcoin’s Production Has Dropped to $15k.
On the bright side, the JP Morgan analysts pointed out that Bitcoin’s production costs had dropped from an average range of between $18k and $20k to a lower level of $15k. The drop is the result of improved energy efficiency in mining hardware and could assist in maintaining profitability for the miners.
To note is that the production costs of more extensive mining facilities are as low as $8k, which means that some Bitcoin miners are still earning comfortable profits.
Over $4B in Bitcoin Mining Loans are Coming Under Stress.
In another analysis, the team at Bloomberg had pointed out that the ongoing crypto market drawdown is exerting stress on $4 billion worth of loans taken by BTC miners and backed by their equipment. The report explained that ‘a growing number of loans are now underwater’ and a ‘few miners have defaulted on their loans so far.’
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