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ChainityX | Crypto Insights
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​​Solana wallets ‘compromised and abandoned’ as users warned of scam solutions.

Solana users have been urged to move their funds to cold storage and be alert to possible scams after a major exploit of thousands of wallets sees more than $8 million stolen.

The cryptocurrency ecosystem has been rocked by a widespread exploit targeting Solana wallets that have been ongoing since Wednesday. Phantom and Slope, two Solana-based wallet services, initially flagged the attack on their social media platforms, alongside a host of cryptocurrency influencers, blockchain analytic and security firms and victims of the hack as it continued to unfold.

A handful of commentators noted that attackers had gained access to user private keys, as transactions were signed on the chain legitimately. Ava Labs CEO and founder Emin Gun Sirer estimated that more than 7,000 wallets had been affected, a number cited by various other individuals and firms online.

As investigations begin to unpack the root cause that allowed an attacker to pillage thousands of wallets, affected users are being warned not to accept help from individuals online purporting to have solutions to the hack. Heidi Chakos, the host of the YouTube channel Crypto Tips, stressed that scammers would be looking to exploit the ongoing situation.

Solana Status has been providing updates since the exploit began and noted that 7,767 wallets had been affected at 5:00 am UTC on Wednesday. Several wallets were affected across mobile and browser extensions.

Solana stressed that users move funds to cold storage and create new seed phrases, while the owners of the 8,000 drained wallets were told that these should “be treated as compromised, and abandoned.”

A spokesperson from Solana told Cointelegraph that engineers from several ecosystems as well as audit and security firms were continuing to explore the root cause that saw affected wallets drained.

"This does not appear to be a bug with Solana core code, but in software used by several wallets popular among Solana users."

Users affected by the exploit are being asked to provide their compromised wallet addresses to the Solana Foundation to assist in the investigation.
Lucky Block V2 has completed it’s listing on LBank and has seen a huge surge in volume and a 250% increase in price in the first couple of days and is expected to continue rocketing ! 📈

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​​Avalanche price analysis: AVAX spikes to $25.9.

Today’s Avalanche price analysis shows a bearish trend gaining momentum with bullish possibilities. AVAX/USD is currently trading at $25.9, up 6.47% in the past 24 hours, with a trading volume of $567,800,848. The market capped yesterday in a tremendous positive momentum and is opening today with further hopeful bullish signs adding to yesterday’s spike above the $24.8 mark. In addition, the volatility increases, giving the bulls further opportunity for a tremendous value increment. The live market cap of AVAX is $7,363,086,908, and it ranks #14 in the cryptocurrency rankings.

Avalanche price analysis indicates market volatility following a significantly increasing trend, which means that AVAX/USD prices are increasingly prone to change. In addition, the Bollinger’s band’s upper limit is $25.7, which acts as a support point for AVAX. Conversely, the lower limit for the Bollinger’s band is available at $22.5, which serves as another support point for AVAX.

The price of AVAX/USD appears to cross over the Moving Average curve, signifying a bullish movement. However, bears have been taking care of the market for the last few hours and will maintain their momentum. However, the price appears to show extreme increasing dynamics by moving above the resistance; the trend might soon shift and obtain a bearish one.

Avalanche price analysis reveals that the Relative Strength Index (RSI) is 69, which puts cryptocurrency in a very overvalued state. However, we can trace the RSI following a further upward path in the overvalued region, indicating the dominance of buying activity. If the RSI decides to move further towards a dominant buying activity era, a reversal movement will become inevitable, and the bears will have their chance at glory once again.
​​Brazilian payment app PicPay launches crypto exchange with Paxos.

The integration with Paxos marks the first move for PicPay to introduce its 30 million customers to digital assets and help them understand Bitcoin.

Major Brazilian payment application PicPay is moving into cryptocurrencies by integrating a crypto exchange service allowing users to buy Bitcoin (BTC) and Ether (ETH).

The firm officially announced on Wednesday that PicPay clients can now buy, sell and store two major cryptocurrencies, BTC or ETH, directly on its app. PicPay pointed out that its choice was due to the real use cases provided by these digital assets, including security and many other benefits. The firm stated:

“Blockchain technology, which is behind coins like Bitcoin and Ethereum, is already used in the real estate sector, the insurance industry and even the art market, through non-fungible tokens.
The new crypto feature is enabled through a partnership with the major crypto company Paxos and allows customers to use Paxos-issued United States dollar-backed stablecoin USDP. Acting as a broker and custodian, Paxos is known for cooperating with some of the world’s biggest traditional financial firms like PayPal and Venmo.

The integration marks the first move for PicPay to introduce its 30 million customers with digital assets and help them understand how people can benefit from the potential of the growing asset class. The Brazilian fintech app is working on a feature to allow their clients to pay with crypto as well.

“PicPay is one of the most disruptive players in payments in Brazil, and our goal is to lead the growth of the crypto market,” PicPay’s head of crypto Bruno Gregory said. One of the major challenges associated with crypto adoption is eliminating its complexity by expanding information about the technology so that everyone can take advantage of the new asset class, he added.

Cryptocurrency adoption in Brazil has been taking off recently, with major local crypto companies like Mercado Bitcoin actively expanding operations. Local lawmakers have been working to introduce crypto-friendly regulation, initiating a bill to legalize crypto payments in June 2022.
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​​Coinbase would rather shut down staking than enable on-chain censorship — Brian Armstrong.

With the ban on Tornado Cash, many DeFi proponents are worried that crypto exchanges, which are also the key validators of Ethereum, will succumb to pressure and impose protocol-level censorship.

In light of the recent ban on crypto mixing tool Tornado Cash and the subsequent arrest of the Tornado Cash developer, there has been a growing debate over whether crypto services providers would choose decentralization or censorship as form of compliance.

The question has become more prominent as Ethereum is moving from its current proof-of-work (PoW) blockchain to a proof-of-stake (PoS) mining consensus. With the transition less than a month away, a user pointed out that more than 66% of validators on the Beacon Chain (Ethereum PoS chain) will adhere to the United States Department of the Treasury's Office of Foreign Assets Control (OFAC) regulations.

When asked whether Coinbase and others would choose to adhere to compliance requests and impose protocol-level censorship or shut down staking services, Brain Armstrong, the CEO of Coinbase, chose the latter. Armstrong said:

“It's a hypothetical we hopefully won't face. But if we did we'd go with B I think. Got to focus on the bigger picture. There may be some better option (C) or a legal challenge as well that could help reach a better outcome.”

There was growing speculation about the actions of Coinbase, Kraken and other prominent crypto exchanges that are also key ETH validators on the Beacon Chain.

Many believed that centralized crypto exchanges would take the easy way out and impose protocol-level censorship rather than block individual transactions from banned crypto mixers such as Tornado Cash.

The current dilemma comes from the OFAC sanctions that have deemed all Tornado Cash transactions illegal. However, decentralized finance (DeFi) experts believe it has complicated the issue. Instead of sanctioning a particular address or country, the regulators have decided to ban the protocol.

Experts believe a decision to ban would discourage many protocols and exchange operators from engaging with anything related to Tornado Cash, including ETH transacted through the mixer, which could lead to unnecessary censorship.
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🔥 Lucky Block V2 to be listed on Gate Io The 5th Ranked Exchange on CoinGecko and CoinMarketCap 🔥

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​🚀 Bluelight.inc game: don’t miss the public land sale

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1️⃣ Only 10,000 land sites with prices from 0.1 ETH a piece
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Important links: Telegram chat, Twitter

The game is based on the Take My Muffin animation show by the Toonbox studios, which is available for free on YouTube. The game allows building your own startups in a metaverse, and the end-goal of the game is to build the most powerful startup, represented as a unicorn.

The sale will take place starting August 26, 2022 on the game’s website. The initial sale will be only for roughly 15% of the total city acreage. The land pieces differ on their level of uniqueness, varying from common to rare, epic, legendary and unique, priced from 0.1 ETH for a common land to 10 ETH for the unique one.
​​Hetzner anti-crypto policies: A wake-up call for Ethereum’s future.

The terms of services, laid down by Ethereum's second-biggest host Hetzner, prohibits customers from running nodes, mining and farming, plotting, storage of blockchain data and trading.

Just when the Ethereum ecosystem reached its final stages in preparing for the much-anticipated upgrade, The Merge, german cloud provider Hetzner, reiterated its stance against allowing mining operations for both proof-of-stake (PoS) and proof-of-work (PoW) applications.

Hetzner, a private, centralized cloud provider, stepped in on a discussion around running blockchain nodes, highlighting its terms of services that prohibit customers from using the services for crypto activities. However, the Ethereum community perceived the revelation as a threat to the ecosystem as Hetzner’s cloud services host nearly 16% of the Ethereum nodes, as shown below.

In crypto, the reliance on centralized service providers has been historically perceived as a negative trait when it comes to long-term sustenance — and for a good reason. Redditor u/Supermann- questioned the anti-crypto policies laid down by the second biggest Ethereum Mainnet host, Hetzner. Clarifying the doubts and legal implications associated with using its services for crypto activities, Hetzner stated:

“Using our products for any application related to mining, even remotely related, is not permitted. This includes Ethereum.”

The company also stated that the non-allowance extends to running nodes, mining and farming, plotting, storage of blockchain data and trading. While acknowledging the extensive use of its services for powering Ethereum, Hetzner revealed that “we have been internally discussing how we can best address this issue.” As a fair warning to the community, Hetzner added:

“If you, or any other potential customers are unsure about whether your use case will violate our ToS, please reach out to us.”

The latest revelation from german cloud provider Hetzner showcases the impact of the decision made by centralized entities on thriving crypto ecosystems.

The majority of the Ethereum ecosystem currently runs on Amazon, which hosts 54% of the total Ethereum nodes. Some of the mainstream cloud providers that currently host Ethereum nodes include Oracle Cloud (4.1%), Alibaba (2.8%) and Google Cloud (2.7%).
​​Vermont’s financial regulator alleges Celsius and its CEO made ‘false and misleading claims’.

According to the regulator, Celsius “lacked sufficient assets to repay its obligations” despite suggesting it had enough funds in its reserves to mitigate the risk of insolvency.

The ​​Vermont Department of Financial Regulation, or DFR, alleged crypto lending platform Celsius Network and CEO Alex Mashinsky misled state regulators about the firm’s financial health and its compliance with securities laws.

In a Wednesday filing with the United States Bankruptcy Court in the Southern District of New York, Vermont’s financial regulator said Celsius and Mashinsky “made false and misleading claims to investors,” which allegedly downplayed concerns about volatility in the crypto market and encouraged retail investors to leave their funds on the platform or make new investments. According to the state regulator, Celsius and its CEO “lacked sufficient assets to repay its obligations” despite claiming the firm had enough funds in its reserves to mitigate the risk of insolvency.

The DFR cited company blog posts and tweets from Mashinsky starting in 2021, suggesting that the platform was “profitable or financially healthy” at a time when it was experiencing “catastrophic losses” and “failed to earn sufficient revenue to support returns.” In addition, the regulator said it had learned of credible claims that Celsius and its management team “engaged in the improper manipulation of the price of the CEL token,” using investor funds to purchase additional tokens and payout many to depositors as interest.

“By increasing its Net Position in CEL by hundreds of millions of dollars, Celsius increased and propped up the market price of CEL, thereby artificially inflating the company’s CEL holdings on its balance sheet and financial statements,” said DFR assistant general counsel Ethan McLaughlin. “Excluding the Company’s Net Position in CEL, liabilities would have exceeded its assets since at least February 28, 2019. These practices may also have enriched Celsius insiders, at the expense of retail investors.”
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​​While the banks were closed, Bitcoin reached 5,000 days online.

Bitcoin celebrates a milestone of 5,000 days online on Sept. 12, 2022, as miners continue to solve valid blocks on average every 10 minutes.

The world's largest cryptocurrency reached a milestone on Monday, Sept. 12 — Bitcoin (BTC) celebrated 5,000 days of uptime. The network has functioned almost without a hiccup for 13.69 years.

In Bitcoin speak, the blockchain has been online, confirming a valid block of transactions every 10 minutes, on average, for 753,782 blocks (5,000 days). Plus, 3,464 days have passed since the last downtime incident.

The first Bitcoin block was mined by Satoshi Nakamoto on Jan. 3, 2009. Bitcoin spent 99.9% of the year online, confirming valid blocks on average every 10 minutes until what is known as the Value Overflow Incident. The incident refers to the creation of a “strange block,” block 74,638, which resulted in the creation of billions more Bitcoin. Five hours later, during block 74,691, the blockchain was soft-forked, and nodes reached consensus.

In 2013, Bitcoin software split, and the chain forked into two. The blockchain was down for 6 hours and 20 minutes causing a price drop of more than 23%, hitting lows of $37. Combining the downtime of the Bitcoin network between 2010 and 2013 creates roughly 0.01% of the total time.

Bitcoin influencers (Bitfluencers?) were quick to honor the occasion with celebratory boating accidents, events in which Bitcoiners lose their private keys. Others expressed their gratitude for the anonymous creator of the protocol:

Popular cryptocurrencies such as Solana (SOL) or Ether (ETH) cannot currently compete with the uptime nor decentralization for which Bitcoin is known. Solana regularly experiences outages, labeled a "curse" to the network by its cofounder, while Ethereum’s creation was the result of a hard fork.

Vitalik Buterin, Ethereum’s cofounder, boasted in 2020 that “You can be net profitable with as little as 60% uptime.” Nonetheless, Bitcoin is still some way from reaching Nakamoto’s promise of a peer-to-peer cash system that removes third parties: Scaling payments on layer-2 are an uphill battle.
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​​Blockchain venture capital funding fell to a 12-month low in August.

The crypto market downturn continues to impact private funding, but one fund is bullish about the future of Web3.

Data from Cointelegraph Research reveals that in August 2022, the blockchain industry saw $1.36 billion of venture capital invested in the blockchain industry — a 12-month low and the fourth consecutive month-on-month decline in capital inflows. August’s inflows represent a 31.3% drop from July’s $1.98 billion, and the 101 deals closed in August had an average capital investment of $14.3 million — a 10.1% decline from July. The data was drawn from the Cointelegraph Research Terminal’s Venture Capital Database, which contains comprehensive information on deals, mergers and acquisition activity, investors, crypto companies, and funds.

August’s three most popular investment categories were Web3, infrastructure and nonfungible tokens (NFTs), drawing more than $1.16 billion, or 85.4%, of the total capital. Some of the biggest deals include the following: Web3 game developer Limit Break raised $200 million. Barca Studios, FC Barcelona’s Web3 arm, raised $100 million from Chiliz, the owner of blockchain-based fan rewards platform Socios. Ready Player Me, a platform that allows people to create metaverse avatars, raised $56 million in a Series B funding round led by Andreessen Horowitz. Inworld AI, a developer platform for creating AI-driven virtual characters, raised $50 million in a Series A round led by Section 32 and Intel Capital.

Venture capital firms have been raising funds too. Web3 and crypto-focused venture capital firm CoinFund launched a new $300 million fund to back early-stage startups, emphasizing its bullish belief that Web3 will “continue to progress through all market cycles.” Orange DAO raised $80 million from the Algorand Foundation and Near and looks set to continue growing as an investment-focused decentralized autonomous organization backing crypto startups. Meanwhile, Shima Capital launched a $200 million debut capital fund to support emerging digital asset companies.
​​Moscow Exchange drafting bill on digital financial assets and securities trading.

Russia's stock exchange expects to become a registered digital asset exchange and begin trading both digital financial assets and digital asset-based securities.

The Moscow Exchange (MOEX) is drafting a bill to allow trading in digital financial assets (DFAs) and securities based on them, according to a report in the Russian press. The stock exchange is writing the bill on the behalf of the Russian Central Bank, which does not have the power to introduce legislation, Vedomosti newspaper reported on Thursday.

Speaking at a banking conference, MOEX supervisory board chair Sergei Shvetsov said the bill in preparation foresees trading in both DFAs and DFA certificates that would trade like securities. “The exchange and its subsidiaries will apply to the regulator and I hope that they will receive the status of exchange operators” to trade in DFAs, Shvetsov said. He added:

“We want the market to make its own choice between blockchain accounting and depositary accounting, and if the law is passed, Russian depositories will be able to hold DFAs in their accounts on the blockchain — as soon as the client needs the underlying asset, they redeem the certificate and receive the asset in their account on the blockchain.”

Lack of familiarity is an impediment to distributed ledger technology in Russia, according to Shvetsov. “When you don’t know who to call and who to sue, many people don’t want to participate,” he said, but “It’s a blank sheet that we can draw whatever we want on, according to the needs of the economy and investors.”

Shvetsov said that the bill is currently under review by the Russian Central Bank. State Duma finance committee chair and head of the Russian Banking Association Anatoly Aksakov suggested in July that MOEX become a crypto exchange, following the examples of the Toronto Stock Exchange and the Deutsche Boerse.

A MOEX spokesman said in August that the exchange expects to be permitted to trade DFAs. “It’s in the interests of our clients,” MOEX International managing director of strategy Artem Zheleznov said.