Crypto “hack” on PolyNetwork; Cardano with final preparations before “Alonzo”; Allegations against BaFin in connection with Coinbase licensing; Ethereum inflation rate has fallen since “London” and “World of Wonders” ventures STO.
Another exciting week in the crypto space is drawing to a close. The most important events around Bitcoin and Co. in a compact overview.
PolyNetwork crypto hack turns out to be a “joke”
News on Wednesday caused panic among investors. PolyNetwork, a provider of crypto transactions, was apparently the victim of a hacker. This looted a total of crypto values amounting to almost 611 million US dollars. To date, nothing was known about the exact process. Finally, PolyNetwork suspected on the company’s own Twitter account that a vulnerability in the platform’s smart contract would have made the attack possible. In total, the hacker used Ethereum (USD 273 million), the Binance Smart Chain (USD 253 million) and Polygon (USD 85 million).
The all-clear one day later. The attacker has come out as a white hat and has already transferred back a little over half of the captured cryptocurrencies (just under 342 million USD). Monetary interests were not in the foreground, he carried out the hack “for fun”. In the meantime, a large part of the remaining amount has been reimbursed. The platform is still missing 33 million tethers.
Crypto-Project Cardano with final preparations before “Alonzo”
The Cardano crypto community is eagerly awaiting the last hard fork of the Goguen era. “Alonzo” is supposed to bring the long-awaited smart contracts to the network and thus compete with the DeFi top dog Ethereum. In the third and final test network “Alonzo Purple”, which started a few days ago, the “intelligent contracts” were used for the first time.
Cardano founder Charles Hoskinson drew a first résumé on Monday. The test phase got off to a good start and started with the “onboarding process for new users”. The Testnet is now in the hands of 150 tasters who put it through its paces. In addition, 300 graduates from the “Plutus Pioneer Program”, a kind of Cardano training program for new crypto developers, were recruited for the Testnet test run.
At the same time, the developers are in regular contact with crypto exchanges in order to prepare the seamless transition for ADA investors. Ultimately, according to Hoskinson, if we fork the network to ensure that their customers have uninterrupted access to their ADA deposits and withdrawals, we want to make sure “as many exchanges as possible are Alonzo-ready.”
Allegations against BaFin for granting crypto licenses to Coinbase
Since the end of June, the German offshoot of Coinbase has officially been the “first state-approved crypto custodian” in Germany. BaFin granted the crypto exchange the license to offer cryptocurrencies for trading and custody under the supervision of the financial authorities. This week the first suspicions arose, which prompted the FDP parliamentary group to follow up on the Federal Ministry of Finance. More precisely, it was allegations that the stock exchange regulator had preferred Coinbase’s application.
Accordingly, a total of 27 applications had been received by BaFin by the time the license was granted on June 28. These were processed “basically in chronological order”. The US crypto exchange was “one of the first” providers. For the FDP this resulted in a preference for the application, since basically the previously submitted concerns of other competitors should have been dealt with first.
The BMF defended itself: BaFin deviates from the chronological processing principle if the necessary evidence or information from other applicants is not available. In the case of Coinbase, the necessary documents were available first, so that the decision-making was made first. Further approvals are to follow in the next few weeks.
Ethereum’s inflation rate has been falling since “London”
Since the hard fork “London” found its way into Ethereum, ETH has been on the up again. The EIP-1559 has not only turned Ethereum’s fee policy on its head by introducing a uniform basic fee that is dependent on block utilization. A deflation mechanism is also integrated, which does not send the fees to crypto miners, but burns them, i.e. pulls them out of circulation.
Like CoinMetrics’ on-chain data researchers in the current State of the Network-Write the report, 18,000 ETH are said to have been burned since the fork by the editorial deadline, which corresponds to around 32 percent of the newly mined supply volume since then. In some cases, the net output has even slipped into negative territory. Conversely, more ether was burned in some blocks than was added through the block rewards.
“Welt der Wunder” launches Security Token Offering
The media company of the eponymous knowledge program “World of Miracles” is taking to the DLT floor. With the help of a blockchain-based platform, the aim is to revolutionize the trade in media licenses and the marketing of video content. The Munich media company headed by the moderator Hendrik Hey is relying on a multi-level token system that aims to simplify the logistical challenges of license trading and lower the barriers to access for partners on the international market.
The company also relies on the advantages of the crypto space when raising capital. Because next Monday, August 16, the Security Token Offering (STO) of the Welt der Wunder Sendebetrieb GmbH will start. A total of 25 million tokens (MLT-S, Media Licensing Token) at a unit price of one euro are sold via the STO platform Black Manta Capital, with a minimum investment of 100,000 euros. The offer is also aimed exclusively at accredited investors who receive a 20 percent profit share. The STO ends on December 31 this year.