Autor Cointelegraph By Zhiyuan Sun

Chain.com tokens lose 96% of value in 24 hours due to flash crash before recovery

Chain.com tokens lose 96% of value in 24 hours due to flash crash before recovery

Uverejnil používateľ | jún 14, 2022 |

On Tuesday, tokens of cloud blockchain infrastructure provider Chain.com (XCN) suddenly lost over 90% of their value before recovering most of their losses later in the day. In a post-mortem analysis published by Chain.com, the firm said that a market maker and API error at 1:00 pm SGT (5:00 am UCT) began to cause XCN to drop in large percentiles. As the event took place, corresponding bids became stuck via API orders, causing further downward selling pressure due to low liquidity and margin calls. But by approximately 3:00 pm SGT (7:00 am UCT), developers at Chain.com conferred with exchanges and market participants that the issue was not due to a breach or exploit, and prices began to recover. According to Deepak.eth, CEO of Crypto.com, a single large margin call appears to have exacerbated the flash crash. As much as 500 million XCN worth of tokens purchased ($42.24 million at time of publication) through leveraged was liquidated within a short period. There seems to have been a large margin call on #XCN markets. We are working with exchanges and our market makers to identify the issues.— Deepak.eth ⛓ (@dt_chain) June 14, 2022A token’s price does not always correlate on a proportional basis with changes in supply and demand. Contrary to popular belief, one single large trade or a series of substantial buy/sell orders in a short period can cause disproportional impacts on a token’s price, especially when there is little liquidity.For example, as first pointed out by crypto enthusiast dev.eth last month, crypto project Cope witnessed a 77% drop in its token price after develops said that they needed to sell coins “to keep dev going through this tough time.” However, due to a lack of liquidity, all it took was for the developers to sell just 10% of outstanding COPE tokens to cause the massive drop. 

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Floor price of popular NFT collections collapse due to bear market

Floor price of popular NFT collections collapse due to bear market

Uverejnil používateľ | jún 13, 2022 |

It appears there is no respite anywhere in the crypto realm in the face of Monday’s extraordinary market sell-off. Based on data from NFT Price Floor, the floor prices for Bored Ape Yacht Club (BAYC) and CryptoPunks, two of the most popular nonfungible token, or NFT, collections on the market, have fallen to 74 ETH ($92,223) and 48 ETH ($69,473), respectively. In comparison, pieces in the BAYC collection had an all-time high floor price of 153.70 ETH, while the same metric amounted to 123 ETH for CryptoPunks. The data aggregator tracks 380 collections with a total market cap of $5.58 billion at the time of publication.The sell-off among NFTs was partly exacerbated by a warning just a day prior, where Gordon Goner, co-founder of Yuga Labs — the firm owning both BAYC and CryptoPunks collections — issued a warning regarding an “imminent” attack on social media accounts operating under the firm’s umbrella.The incoming attack allegedly has the support of an insider from Twitter who would help bypass the security of the accounts. Yuga Labs’ social accounts had been compromised three times already this year, some of which involved sophisticated phishing attacks that drained millions of dollars worth of users’ NFTs. Meanwhile, according to DappRadar, the number of users on OpenSea.io, the largest NFT marketplace by volume, has fallen 14% in the past month. Simultaneously, monthly trading volume fell 65% to $500 million. Interestingly, the number of transactions increased month over month by 6.4%, possibly due to the sheer number of users seeking to sell their NFT collections at a better price. 

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Crypto crash wreaking havoc on DeFi protocols, CEXs

Crypto crash wreaking havoc on DeFi protocols, CEXs

Uverejnil používateľ | jún 13, 2022 |

On Monday, a heavy cryptocurrency sell-off in the markets caused significant ripples for projects and entities alike. On popular decentralized finance, or DeFi, lending protocol Aave, utilization rates have fallen across nearly all stablecoin borrowings. Most notably, borrowings for Binance USD (BUSD) now stand at a mere 30% compared to a high of 80% back in May. Utilization rate is the ratio of borrowed funds to deposited funds. Since borrowers are required to post digital asset collateral before taking out a loan on Aave, users are likely withdrawing en mass in light of today’s sell-off to prevent liquidation. Data from DeFi Llama indicates that Aave’s total value locked has fallen from $33.51 billion last October to $8.11 billion.According to CryptoRank Platform, TVL in overall DeFi protocols have fallen by 55% since the end of April, driven in part by capital flight and a decrease in the value of digital assets. Currently, there is $115.7 billion worth of funds remaining, with $72 billion of them located on the Ethereum (ETH) blockchain. It represents a fraction of the $303.9 billion in peak TVL witnessed in November 2021. Over the weekend, cryptocurrency exchange Crypto.com announced that it was laying off 260, or 5% of its corporate workforce, citing difficult market conditions. Just last month, the company also stated that it was significantly cutting back rewards for its popular crypto-backed debit card. Annual cash-back APYs for spending have reportedly been scaled back from 2% to 8% to just 0% to 2% for cardholders with unstaked assets. Monday morning, in an emotional message posted by founders, BlockFi also announced that it was laying off 20% of its 850-strong staff. The firm cites the need to achieve profitability goals for the long haul in making the decision. Similarly, cryptocurrency exchange Coinbase has decided to extend a hiring freeze and rescinded job offers to hundreds of new hires. Though Brian Armstrong, its CEO, has said that “funds are safe” amidst bankruptcy protection fears surrounding the exchange. Other major crypto firms are reportedly cutting 10% of their staff amidst the ongoing bear market. 

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Edge announces confidential no-KYC digital currency Mastercard

Edge announces confidential no-KYC digital currency Mastercard

Uverejnil používateľ | jún 8, 2022 |

On Wednesday, self-custody crypto exchange Edge announced a no-KYC debit Mastercard that can be funded with Bitcoin and other digital currencies.Without know-your-customer, or KYC, verification, users would be able to spend their crypto at more than 10 million merchant terminals in the U.S. Currently, one can fund the Edge Mastercard using Bitcoin, Bitcoin Cash, Dogecoin, Litecoin, and Dash directly from the Edge app.In a statement to Cointelegraph, representatives at Edge say that the card is compliant with anti-money laundering and terrorism financing regulations because of a $1,000 daily spending limit on the card (approx. $30,000 monthly). In addition, the card is only available for use at U.S. merchant terminals. Paul Puey, co-founder of Edge, commented:”Without compromising any personal info, and without the usual fees or delays to top up their card, the Edge Mastercard is a true breakthrough for using crypto for day-to-day payments.”Because there is no address associated with the card, users can simply enter any name and address for billing purposes when shopping online. In addition to its confidentiality, Edge claimed that there are no fees charged on its new Mastercard. When users sell their BTC to add funds, the company uses spot exchange rates from third-party sites such as Coinmarketcap with no margin taken.The Edge Mastercard will be issued by is issued by Patriot Bank, N.A., under license by Mastercard International, and powered by fintech company Ionia. Edge says that it has over 1.7 million accounts across 179 countries on its self-custody cryptocurrency trading platform. 

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PayPal enables transfer of digital currencies to external wallets

PayPal enables transfer of digital currencies to external wallets

Uverejnil používateľ | jún 7, 2022 |

After rolling out the ability to buy and sell crypto on its platform in October 2020, PayPal is finally allowing users the ability to natively transfer, send and receive digital assets between PayPal and other wallets and exchanges. As of Tuesday, the feature is available to select U.S. users, with the feature expanding to all eligible U.S. users in the coming weeks. The first batch of supported coins consists of Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). In addition, customers who transfer their crypto onto PayPal can spend it via Checkout at millions of merchant terminals. The company has been granted a full Bitlicense by the New York Department of Financial Services for the conduct.Users would simply need to log in to their accounts and enter the crypto section of the application to start transferring transfer coins. Users are generally required to complete a one-time ID verification before the procedure.Crypto transfers to recipients outside of PayPal would incur a network fee based on their respective blockchains, but transfers between PayPal users will not incur such fees. To protect users’ privacy, the firm generates a new recipient address for each transaction into one’s PayPal account. PayPal will also not charge fees for incoming transfers,The company is also working to integrate other forms of cryptocurrency services, such as central bank digital currencies, to boost its digital footprint. It is also exploring the possibility of launching its own stablecoin, dubbed “PayPal Coin.” The discovery came after a developer found evidence of such a stablecoin within the source code of the company’s iPhone app. 

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