CryptoSentinel :: crypto news and analysis

Global total value locked in DeFi just reached $148 billion and is rapidly approaching new ATHs — link

BTC: $150k ETH: $11.5k By Feb 2022 Not financial advice.

20 crypto specific ETF filings this year in the US, from 16 different potential issuers — link

https://www.coindesk.com/polygon-merges-with-hermez-network-in-250m-deal?amp=1&__twitter_impression=true&s=09

Polygon EIP1559 Community Call on Thursday, 19th August! 📣 Every month, our founders discuss the key highlights and all the exciting progress we've made in the previous month, this time we'll be covering an important upgrade on Polygon, The EIP1559, we’ll be talking about how EIP1559 will be implemented on the Polygon chain and how it would impact Dapps and Validators. 🗣 Join the Polygon core contributors: Anurag Arjun, Jaynti Kanani, Delroy Bosco and Prabal Banerjee on this live discussion. 📅 19th August, Thursday 7:30 PM IST | 2:00 PM UTC 👉 Save your spot: https://www.crowdcast.io/e/polygon-eip1559 Retweet: https://twitter.com/0xPolygon/status/1426150802830233609?s=20

​​The Latest Breaking News 📣 #1 Kryptoin files for Ethereum ETF — link #2 US Immigration and Customs Enforcement plans to use Coinbase forensics tools — link #3 Singapore monetary authority approves crypto trading for DBS — link #4 Crypto crowdfunding platform DAO Maker hacked for $7M — link #5 Lionel Messi's move to PSG includes payment in crypto — link 👉https://cryptorank.io/news

🌀Institutions are buying Bitcoin like it's late 2020🌀 https://blockchair.com/news/institutions-are-buying-bitcoin-like-its-late-2020--0cb7d4c4f0 BTC: $46180 ▪️ ETH: $3214 ▪️ XRP: $0.89 ▪️ BCH: $608

Poly Network Hack Clarification 📕WHO DID THE HACK TARGET? This is a big question to ask. I've seen a couple of comments like "Not your keys, not your Crypto" and likening it to BitConnect or Mt. Gox. It's similar but with a big caveat, these types of attacks don't typically target users crypto in their wallet. Custodial exchange and centralized lending will often target users crypto just sitting in a spot wallet. When you supply liquidity to a protocol on DeFi it is not your crypto. You're keys should still be able to authorize the withdrawal of that crypto or your wallet will have a receipt of supplying like cETH or LP tokens. You are still ultimately the custodian of your own crypto in DeFi If you've been interacting with DeFi protocols, it is highly unlikely you will wake up to a drained Metamask after one of these hacks. You are too small of a fish for those types of attacks to target. You are more likely to have to fall for a phishing scam if that is the case. Typically hacks like this target liquidity pools. Liquidity pools often have immense value in them. You may lose crypto you have deposited in a hacked pool or farm, but often times protocols come up with solutions to reimburse any lost crypto like PancakeBunny earlier this year that suffered a flash loan attack. Poly Network holds large liquidity pools to facilitate cross chain transfers. Holding a lot of exit liquidity on each chain. The money that was hacked from this event is likely to have been stolen from those who have large amounts of liquidity staked. This is not likely to be you farming CAKE on PCS! Cross Chain protocols are incredibly hard to code, and they should be treated with caution when supplying liquidity to them. 📗HOW DID THE ATTACK TAKE PLACE? I want to keep this part simple for those not technically minded but there are currently two working theories as to how the hack took place. They both involve the private keys for the ownership of the liquidity pools. 🔑Theory 1: Leaked Key Poly Network has a big security problem from the outset. They had a single sig key to the pools which means that only one signer would need to authorise any changes to the liquidity pool, including withdrawal of funds. This is like leaving a vault of gold with only one key. If you wanted to access this, there wouldn't be any other parties involved. Current theories suggest that this key was leaked or hacked via another method off-chain. This is the story from early official post mortem from Poly Network EDIT: This theory has been disproved by Poly Network, but I wrote it so I thought I'd leave it here as an example of an early working theory 🖋Theory 2: Hacked Contracts There are two important contracts. A "manager" contract and a "data" contract. The data contract specifies the address which can submit transactions which can withdraw funds from the pool. If someone was to replace this address in the contract to theirs, they could withdraw as much from the pools as possible. In solidity there is a concept called ownership. A smart contract can set certain functions to only execute if the owner executed them. Typically, when constructed the owner is the wallet who deployed the contract, which is typically the developer. However, in this case the owner of the "Data" contract was the "Manager" contract. So now, if you were to call a function which could replace the address in the data contract with theirs from the manager, it would be allowed. But here's another flaw in the design of Poly Network. The "manager" contract exists to run transactions on different chains. It has a function called verifyHeaderAndExecuteTx which verifies that a transaction exists on one chain, and if it does, runs it on another. This is needed for cross chain interoperability. But wait... we've now got a way to run arbitrary functions from the "manager". If the attacker devises a specific input they can now freely set the most important address, the one which says who can withdraw from the pools, to theirs. Confirmed by Poly Network

BitMEX settles with CFTC, FinCEN for $100 million, but criminal cases against former execs continue — link

https://www.washingtonpost.com/business/2021/08/07/cryptocurrency-infrastructure-bill-lobby-bitcoin/

Currently, retail investors are dominating the market. In terms of addresses, whales have a mere concentration of 1.53%, whereas retail holders have an 88.64% dominance today. At the same time when it comes to balance, these whales only have 288k cumulatively. Retail investors, on the other hand, hold 16.65 million BTC altogether. These are the biggest signs of retail domination which is exactly the need of the moment. If their participation grows, the next rally can be led by retail investors. On exchanges, it can be seen that selling is active in the market. At the moment, whales’ balance is close to its all-time high. Whale addresses possessing 100-10k BTC hold 49.1% of Bitcoin’s supply. This shows that selling from their end is close to none.

https://bitcoinwarrior.net/2021/08/bloomberg-intelligence-bitcoin-going-for-the-gold-further-run-up-to-100000/