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Crypto Market On the Rise, $600 Million Hack on Poly Network Leads to Concerns About Security of DeFi
Crypto Market On the Rise, $600 Million Hack on Poly Network Leads to Concerns About Security of DeFi
16 August 11:03
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Cryptocurrency Market
Within a week, the crypto market as a whole entered a sideways consolidation stage. The price of Bitcoin has clearly slowed down after the 8th, and the price stabilized at about $45,000. Within a week, the price of Bitcoin formed a "V" shaped bottom with a bottom price of $373,31.67. It formed a seven-day moving average on the 12th and rebounded after the 13th. Stimulus, Bitcoin price will bounce back and forth on the daily moving average line many times. The bottom-line price is estimated to be around $42,000. If it goes under the price, the price of Bitcoin may enter the market's volatility shortly. From other technical points of view, the Bitcoin price's Bollinger has a shrinking trend. There is no price indicator breaking the Bollinger Band line within this week. Starting from July 21st, however, the Bitcoin price has not fallen below the Bollinger Band midline. The market seems to stay bearish.
The price of Ethereum is changing in a more extreme way than that of Bitcoin. This week, the price of Ethereum entered a more obvious stagnation period. From the 7th, the price of Ethereum fluctuated below $3150, and several attempts to stabilize above $3150 ended in failure. Like Bitcoin, after the lowest price of Ethereum on the 12th broke through the 7-day moving average, it rebounded on the 13th. $3100 is the current demarcation point of the price change. If Ethereum oscillates below the $3100 in the short term, it means that the price of Ethereum has insufficient momentum. From the MACD index, the price of Ethereum showed a weak short-selling signal on the 13th, but from the perspective of momentum, the price of Ethereum is still dominated by upward momentum. Given the continued relief plan of the U.S. government, the cryptocurrency market may continue to benefit from it.
Crypto News
The block height of the Ethereum main network reached 12,965,000 on August 5th, officially ushering in the London hard fork upgrade. The much-anticipated EIP-1559, the solution to the Ethereum network transaction pricing mechanism, was activated. Additional four Ethereum Improvement Proposals (EIP) are embedded in the code. With the latest upgrade, most of the transaction fees granted to miners since then will be destroyed and removed. Since the upgrade a week ago, about 35,000 ETHs worth about US$98.88 million have been destroyed.
The Crypto market continues to grow in 2021 based on the amount of new crypto assets added. According to CoinDesk, the famous data aggregator CoinMarketCap has added 2,655 new crypto assets to its database in the first half of 2021, making its total number of listed coins to 10,810. Meanwhile, Singapore-based data aggregator CoinGecko also added more than 2,000 new crypto assets to its database in 2021.
Canadian startup Geometric Energy Corporation(GEC) has confirmed a partnership with SpaceX to launch a billboard satellite on a Falcon 9 rocket. The satellite, CubeSat, is equipped with a pixelated display screen on one side to show advertisements, logos, and other arts. There is also a selfie stick to capture the footage of the screen and livestream it on YouTube or Twitch for anyone on earth to watch. GEC is planning to take payments in cryptos such as ETH or even DOGE in the future.
Over $600 million of cryptos, including 302 million USDT, 5,5000 ETH, 2000 BTC and many other crypto assets in Poly Network, a DeFi platform was stolen on August.10, making it the biggest crypto heist yet in DeFi history. Few days later, after cooperation with Poly Network community and other sides, the hacker returned all the stolen tokens, claiming that the heist was just for fun, not for the money. The heist leads to concerns about the security of DeFi once again.
News in the Financial Market
Global equity markets were mixed this week. U.S. stocks Dow Jones Industrial Average and the S&P 500 Index both hit record highs. The producer price index of the United States in July recorded the largest year-on-year increase since 2010, indicating inflationary pressures. The A-share and Hong Kong stocks continued to be sluggish, and the trading volume maintained at a low level. As Tencent, Meituan, Ali and other leading companies were suppressed by policies, investor confidence has not been restored. If the global stock market stays sideways in the short term, more funds may flow to other financial markets.
Xinhua News Agency recently released an article titled "Spiritual Opium" Has Grown into Hundreds of Billion Industry, stating that minors' Internet addiction is widespread. The agency reported that online games now had a huge influence on minors’ healthy growth, causing various issues such as myopia, reduced grade, and personality alienation. Affected by the news, the A-share game sector and Hong Kong stock Tencent Holdings plummeted, dropping to HK$422 per share.
As the crypto market continues to rebound, the prices of many listed companies holding Bitcoin, such as MicroStrategy and RiotBlockchain, have nearly tripled. The stock price of MicroStrategy, which holds more than 105,000 bitcoins, fell to a new low of $474 on July 20, and once rose by 65%, reaching as high as $800.
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), spoke about the regulation on Bitcoin and cryptocurrencies at the Aspen Security Forum. When talking about Satoshi Nakamoto, Gensler mentioned that although there are various hypes in crypto coin, Satoshi Nakamoto's innovation is real and will continue to be a catalyst for the financial and monetary revolution.
Big News
Jarod Coopman, director of cybercrime at the U.S. Internal Revenue Service, said that in the fiscal year 2019, the U.S. IRS intercepted approximately $700,000 worth of cryptocurrency, and intercepted $137 million in the fiscal year 2020. In the fiscal year 2021, it has reached $1.2 billion (which runs through Sept. 30). In addition, the US government regularly conducts public auctions of seized cryptocurrencies such as Litecoin, Bitcoin, and Bitcoin Cash.
The U.S. Senate voted overwhelmingly 68 to 29 to pass the Warner-Sinema-Portman Infrastructure Act amendment. The amendment was previously widely criticized by the cryptocurrency community for imposing tax reporting requirements on non-custodial actors such as cryptocurrency miners and developers. The infrastructure bill will go to the House of Representatives and is expected to be considered in the fall.
In response to an interview, a spokesperson for the Monetary Authority of Singapore (MAS) mentioned that they have received 170 applications for Digital Payment Token (DPT) licenses from service providers, of which 30 have been withdrawn and 2 rejected due to failure to meet the standard requirements of risk control or anti-money laundering. 89 companies have been notified and are ready to grant specialized licenses to applicants.
Tencent Music recently announced that the first limited series of "TME Digital Collections" will be launched on QQ Music this month. According to the official announcement, as an innovative electronic collection, digital collections consist of video, audio, vinyl records, Hand-made peripherals, and other forms. Previously, 300 copies of the digital collection NFT of "Thirteen Invitations" with sound, jointly developed by Tencent's Huanhe App and "Thirteen Invitations", sold out instantly after the launch.
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Author: Gazer. C & Charles. F (Gate.io Researchers)
* The article only represents the researcher’s views and does not constitute any investment advice.
* Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
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