Cryptospace Spotlight (05 Dec 2021)
Rise of Ethereum killers, UK smart contracts inclusion and multi-millions drained in DeFi attacks!
In Singapore, two big crypto exchanges shared different views - Binance pondered over its exit while waiting for license (more), while Huobi planned to build its Asia base (more).
Indonesia’s Central Bank intended to use CBDC as a countering tool toward cryptocurrencies (more).
Due to high gas fee of using Ethereum, developers were seen moving away from it sparking growth in some key front runners of ‘Ethereum killers’ are Solana, Cardano, Polkadot (more).
Along with the NFTs popularity, risk and security concerns should not be ignored, for example, Challenges for Asset Ownership, Smart Contract Risks, Marketplace Risk (more)
Regulatory development,
UK Law Commission issued advisory on smart contracts indicating that they are enforceable within current legal framework (more).
Germany government displayed its openness toward crypto assets with mentioning of them under coalition agreement (more), and also allowed up to 20% of funds to be in crypto assets under ‘Fund Location Act’ - covering pension funds and insurance companies (more).
Security related events,
Decentralized finance (DeFi) platform BadgerDAO has been hit by a hacking attack that has led to investors losing a whopping $120 million plus. Nearly 2,100 Bitcoin and 151 Ether were drained from the wallets of dozens of users of the Badger DAO yield vault protocol (more-1) (more-2).
The attack was implemented using malicious contract permissions, allowing the malicious address to operate on these vault funds.
It is believed that attacker had inserted a malicious code in the UI of the Badger website. The code then transferred tokens of any users who interacted with the site to the attacker’s chosen address. The malicious code was inserted as early as Nov. 10 and randomly run by the attackers,
Another DeFi platform MonoX was drained an estimate of $31 million worth of tokens due to an exploitation of software bug that is being used to draft smart contract (more).
The attacker greatly inflated the price of the MONO token by using the same token for both tokenIn and tokenOut (tokenOut overwrote the price update of the tokenIn). The attacker then exchanged the token for $31 million worth of tokens on the Ethereum and Polygon blockchains.