They buy new cryptos thinking they’re going to become trillion-dollar companies that disrupt Apple. The majority have never gone back up again. In the 2018 crash many big-name cryptos lost most of their value. Everything outside of Ethereum and Bitcoin is unproven. Cryptos collapse for an extremely good reason… We’ll have to play this game for a while. Now that Celsius is likely dead there will be more cryptos to collapse. One Wall Street big kahuna falls over, then more collapse. This is exactly what we saw in the 2008 recession. Systemic risk can mean when one domino falls, so, too, do many other dominos. Why? They got partly exposed to the Terra Luna blow-up.Įverything in finance and crypto is connected. Nice.Ī week ago I just finished building a course that mentioned Celsius.Ĭelsius froze all their customer’s deposits. You lock up your crypto with them and they pay you interest. US dollars earn you a bee’s d*ck amount of interest with a bank.Ī company called Celsius decided to bring out a crypto savings account. The replacement for a savings account failed When the 8th largest cryptocurrency in the world falls apart, it’s similar to the collapse of investment firm Lehman Brothers in the 2008 recession. Terra Luna tried to start again with a Version 2. That investment is now dead for everyone - even me. Why? I like to place small bets on popular cryptos for fun. I had a small amount of money invested in Terra Luna (the project behind UST). Now UST is worth peanuts.īig investment firms and well-known investors had money invested in Terra. The panic selling tanked the 1 for 1 peg even further. When a few smart people decided to attack the crypto and see if they could make one UST worth less than one USD, they succeeded.Īs humans always do, we panicked. One greedy young man named Do Kwan helped come up with UST. Instead of selling your Bitcoin or Ethereum and leaving the crypto system, UST allows you to sell one crypto and sit in USD without friction.Ĭrypto day traders use US dollar cryptos all the time. UST is a crypto version of the US dollar. One crypto called UST fell apart a few weeks again. Let me explain what’s going on without all the hyperbole and jargon. The huge price crashes of 20 (especially) did that to me. The difference is I see crypto in a different light than many. Since 2013 I’ve lived, breathed, and snorted every bit of crypto information I can. To share tips or information about stories, please contact him at. Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. “This, combined with the periodic review of privileged keyholders, real-time monitoring tools, and timelocks, can help put the ‘De’ back in DeFi.” Crypto hacks surgeĬybercriminals have stolen $901 million across 22 incidents since July, compared to the 25 incidents recorded in the first six months of 2023 when criminals stole $433 million, according to DefiLlama data.Ĭyvers’ results align with data from DefiLlama, which shows that $1.3 billion have been stolen so far this year, down from the $3.2 billion recorded last year. “Systems like multi-signature protocols and multi-party computation, when well implemented, can distribute key control, mitigating the risk of single-point failures,” Gu said. Ronghui Gu, co-founder of crypto auditing firm CertiK, told DL News that private key management has to become “top priority” for crypto companies. If they fall into the wrong hands, hackers can use them to access victims’ wallets and steal funds. Private keys are like passwords that control access to crypto wallets. “A staggering $773 million of $901 million lost was due to wallet access control issues,” Meir Dolev, co-founder and chief technology officer of crypto security firm Cyvers, said. That is according to research from cybersecurity firm Cyvers, which suggests that the bulk of these thefts have come from compromised private keys. Several crypto projects linked to Justin Sun have been breached over the past two months.Ĭrypto hackers have so far stolen $901 million from exchanges, bridges, and DeFi protocols in the second half of 2023, but that number could increase unless protocols sort out a major security problem - private key leakage.The amount stolen has surged since the first half of the year when criminals stole $433 million.A majority of the $901 million stolen from crypto projects since July were taken due to private key leakage, according to cybersecurity company Cyvers’ new report.
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