"Humility is the solid foundation of all virtues."
It's midweek y'all! The halfway point! Hang in there. You've got this! 👌
Today in history (1992), The Orlando Magic signed then NBA No. 1 draft pick, Shaquille O'Neal. 🏀
In today's newsletter, we will be covering the Enterprise Ethereum Alliance (EEA) setting up the "EEA Mainnet Initiative", North Korea stealing ~$2 billion by hacking banks and cryptocurrency exchanges andcrypto derivatives exchange FTX securing $8 million in funding.
Please do not forget to answer the polls down below too! It's a great way to interact with you and hear what you have to say. 💭 Happy reading! 📚
Over the last 24 hours, total market capitalization dipped slightly from ~$309 billion to ~$302.8 billion, with most coins seeing losses in the ~4-8% range.
BTC is currently trading at ~$11,580, down ~5.1% over yesterday. On the daily chart, RSI level is at ~61, dropping slightly from yesterday's ~63. There is still significant bullish momentum, but it is also notable to mention that shorts have been rising since the start of the month. 😴
Task force ⚔️
The Enterprise Ethereum Alliance (EEA) is setting up the "EEA Mainnet Initiative", a technical group to accelerate and lead cooperation between the EEA’s enterprise members and those who work on the mainnet’s interoperability solutions. 🤝
The initiative also seeks to improve its knowledge about how public network components match the commercial market requirements needed to boost adoption of Ethereum. According to EEA board member and former Microsoft principal architect, Marley Gray, the rapid technological acceleration of the Ethereum mainnet requires heightened interoperability and scalability, which is the mission of the Mainnet Initiative.
The EEA consortium currently has ~450 enterprise business members, including the likes of Microsoft, JPMorgan Chase, Santander, Accenture, ING, Intel and Cisco. 🤯
According to a confidential report recently acquired by mainstream media outlets such as Reuters, the U.N. Security Council North Korea sanctions committee said
North Korea has stolen ~$2 billion by hacking banks and cryptocurrency exchanges. 💸
These hackers also form an essential part of government funding. According to the report, the Democratic People’s Republic of Korea cyber actors, many of whom operate under the direction of the Reconnaissance General Bureau, perform these malicious activities to "raise money for its WMD (weapons of mass destruction) programs".
One of such hacker entities is the cybercrime group Lazarus Group from Pyongyang, known for its cyber-espionage and cyber-warfare tactics. 😲
Funding derivatives 💰
In a recent seed funding round, crypto derivatives exchange FTX secured $8 million from the likes of blockchain-focused venture capital fund Proof of Capital, blockchain firm Consensus Lab, digital asset management firm FBG, and crypto hedge fund Galois Capital. 💰
FTX offers futures, leveraged tokens and over-the-counter trading. It's founding members include officers from leading industry players such as Jane Street, Optiver, Susquehanna International Group, Google and Facebook.
An attestation ledger is an account book designed to provide evidence of individual transactions. It is generally used to “attest” that a financial transaction took place, or to prove authenticity of transactions or products.
According to a recent report in South Korean news outlet blockinpress, the Seoul Metropolitan Government will establish its first blockchain-based administrative services in November. 👀
Facebook has hired the former assistant of U.S. Republican senator Mike Crapo, Susan Stoner Zook, to join the lobbying team for its Libra project. 🤝
As part of its Wine Traceability Platform (WTP) initiative, VeChain (VET) has partnered with Australian winemaker Penfolds to release a case of blockchain-encrypted wine bottles. Each bottle is attached with an encrypted N.F.C. chip that contains the bottle’s product information on a blockchain, accessible via a chip reader. 🍷
Crypto calendar 📅
16 May - U.S. SEC's decision on the NYSE Arca and Bitwise Asset Management's Bitcoin ETF application (decision has been delayed)
19 Aug - U.S. SEC's initial decision on the VanEck, SolidX and the Cboe BZX Exchange Bitcoin ETF application
"How much do you agree with this statement: "Hacked exchanges should not be allowed to resume trading services ever again.""
The average vote was a 4.3.
"Why or why not?"
They should be able to trade after all funds are replaced to customers. - Agreed.
No, but they should be required to have insurance - Good point. 👍
Hacks are a part of our digital word, unfortunately. If every exchange closed after being hacked, we'd only have Coinbase left. Plus, I'd miss Binance to much. - Hahaha yeah that's true. I'd hate to see Binance go. 😅
Unless the exchange demonstrates ongoing gross negligence, I don't understand why it would be prevented from improving security and compliance in order to provide the same level of service excellence like the exchanges who have not been hacked (or more correctly... targeted for hacking yet). Binance, Coinbase, etc have been targeted and are superior exchanges that have gotten it right. We are able to store our coins offline to minimize risk. For those with the means to do so, it is the least risky option. In the meantime, more and more exchanges will be targeted for hacking operations until the vast majority are affected. Who will you purchase from or trade with then? - I agree with most of what you said, but I also think that the steps taken to mitigate further occurrences should be made public and audited. 🧐
Depends on how much security they had in first place to stop hacks and how many changes they have done to prevent such a thing happening again. Also need to look at circumstances behind how the hack happened. - Yup I agree. If nothing was done, I don't think they should be allowed to resume trading. And they would have to do right by customers! 😊
Never ever! - Even if they've beefed up security and reimbursed hacked funds? 🤔
i am in two minds here. but i think if they should be allowed to resume business should totally depend on how they tackle the incident. if they are able to protect investor money & are transparent, i think they should be allowed. also users are the best to decide & will ultimately decide if the exchange remains in business. on other note one should have very limited exposure of holdings in exchange. even the best systems in the world can be hacked. - Agreed. You could throw in there hacked exchanges having to pay back hacked funds to those affected. 💰
We all make mistakes and have weaknesses. It is through these challenges that we become stronger and better. Once they have fully reimbursed those affected and prove that they have resolved the problem, they should then be able to get back up and running! - Yup, my sentiments exactly.
Simple, if you can't guarantee security for my investments then clearly you shouldn't be in business. - I would def be v wary to place my funds in a hacked exchange. Personally, if I feel that if they've rectified the problem, beefed up security and credited the funds lost by users into their respective accounts, that they should be allowed to resume trading services again. 👍
Their should be a lengthy review and compliance period to ensure that the problem can never happen again. - Yup!
That is ridiculous. Central banks get hacked. Don’t keep your coin on the exchange. - Yeah, you should only leave your coins in when you're trading. Never ever store your funds on the exchange otherwise. 😀
Each situation has to be judged on its own; ex. was the exchange security sloppy? How often has it been hacked? What type of insurance does the exchange carry, etc. - Agreed.
Well...see hacks can happen in crypto exchanges, nothing is risk free. But you should choose a exchange that has safety gaurds like - google autheticator, email verifying and comfirming your the one incharge of withdrawing the funds, allow only your authorised device for transaction etc. Thesedays exchanges store investor funds in cold wallets and take insurance for customer funds. Only if exchanges take proper safety measures will they be offered insurance. So, choose such exchanges. my exchange is binance exchange, it got hacked, not that i kept my cryptos there, i have it in my atomic wallet. But CZ had provitions to compensate investors whose accounts were hacked. He had some amount of transaction fee go to a Safu fund, that would be for used for these contingencies. That came in handy, as from Safu fund investors were compensated. So, we should use such a exchange that has provisions to compensate customers incase they are hacked. - Yes, exchanges need to account for these contingencies and include it as part of their risk management plan. 🛡️
It’s the nature of our environment with technology, we need to join forces to collaborate and be supportive of what we know to be the future. This future has been decades in the making.... bring financial freedom to the masses, and break free of the free range slavery model that has held us collectively in a grip of mostly despair. - It definitely is a collective effort. We all have to do our part so that we can effectively transition from our archaic systems to one that is decentralized.
Don't agree with that... As long as the exchange always give the money back that everybody lost and then improve their security all is good! Crypto is like the Internet in the 1990s. We are all learning every day and this is getting big and big with time. So we still have a lot of things to improve... - I'm all for second chances, but the affected exchange must be able to be transparent with users and show that steps have been taken to prevent further occurrences. 🤗
I will say it depends on, a) is majority of funds safely kept in cold storage, b) was there serious gaps in their security. Crypto exchanges are targets. But so are banks, crypto just easier to move. Sadly in my mind this is a simple yes, but if the exchange kept majority of funds offline and had real tight security, they are just as much a victim as their clients. Wow, you guys gave us a real thinker today. - Haha gotta make you guys think! These stuff are important. 😂
Thank you all for reading! Catch you back here again tomorrow for your daily dose of crypto news! 💙
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