Autor Cointelegraph By Zhiyuan Sun

CertiK's identification of Crypto Cars as 'rug pull' was a false alarm

CertiK's identification of Crypto Cars as 'rug pull' was a false alarm

Uverejnil používateľ | jan 28, 2022 |

In a period of market downturns, rumors of crypto bans and decentralized finance, or DeFi scams, blockchain enthusiasts can be sensitive to the smallest abnormalities within projects they follow and sometimes erroneously fear for the worse. The day prior, CertiK, a leading cybersecurity ranking platform in the blockchain space, issued a warning via Twitter regarding CryptoCars, alleging that it was a “rug pull.” However, the staff quickly deleted the post as it was a false alarm.Via a series of Twitter screenshots obtained by Cointelegraph, CertiK first claimed that the website and Telegram for CrytoCars were down. However, users quickly pointed out that both the CryptoCars website and Telegram apps were still functional, resulting in CertiK rescinding the community alert.According to the developers of CryptoCars, the project’s Telegram chat will be temporarily closed “until the end of the Lunar New Year from 27th Jan to 7th Feb.” The CryptoCars development team is based in Vietnam, which celebrates the Lunar New Year holiday.Sources at CertiK issued the following statement to Cointelegraph regarding the incident:”Incident reporting, although complex, is rapid in nature and is done in a manner to alert the community on up-to-date suspicious activity. In this situation, we noticed [their] Telegram went offline, funds dropping to zero, and the $CCARs website being unavailable. This created an alert of a possible rug pull.”Despite the error, CertiK has done much to benefit the blockchain community. As recently as the day prior, it issued a verified community alert for Qubit Finance as the protocol suffered an $80 million hack.CryptoCars launched in September 2021 as a nonfungible token, or NFT, car racing game. Structured under a play-to-earn model, CryptoCars requires players to purchase an NFT car minted on the Binance Smart Chain through a blind box created by its developers for 6,600 CCAR or from another user starting at 490 CCAR. According to its official site, the project claims to have 721,683 players, 582,666 NFT cars, and 248.8 million in-game transactions at the time of publication. It also has over 124,500 followers on Twitter.

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Fitch says proposed Russia crypto ban eases risks but curbs innovation

Fitch says proposed Russia crypto ban eases risks but curbs innovation

Uverejnil používateľ | jan 28, 2022 |

On Friday, credit rating agency Fitch published a research piece about Russia’s proposed ban on cryptocurrencies. Although the report agreed with the Central Bank of Russia’s (CBR) position that the ban would limit its financial system’s exposure to risks, it also cautioned that such a proposal could “hold back the diffusion of technologies that could improve productivity.”In addition, Fitch warned:”Suppose this slows the spread of crypto-driven innovations that, for example, improve the speed and security of payments or asset liquidity via tokenization. In that case, it could over time weaken this aspect of the Russian banking sector’s operational environment relative to peers.”Additionally, Fitch commented on the adoption of a central bank digital currency, or CBDC, in Russia, saying that “[the digital ruble] should increase the authorities’ capacity to monitor and manage financial flows, which might otherwise be eroded by the growth of cryptocurrency transactions.” The report also clarified that a primary motive for the CBR proposing harsh cryptocurrency restrictions might be to reduce competition against its upcoming CBDC.Like India, Russia’s crypto regulatory environment has been chaotic lately, with policymakers frequently oscillating between an outright ban on digital currencies versus calling for an established regulatory framework. At the same time, even former Russian president Dmitry Medvedev offered his comments on the crypto ban proposal as reported by local news outlet rbc.ru on Friday, and translated by Cointelegraph:”I’ll say it frankly — when they try to ban something, it very often leads to the opposite result of what is intended. But the position of the Central Bank has, of course, its own reasons, which are also known to everyone.”

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Daniele Sestagalli discusses Wonderland’s future after QuadrigaCX co-founder dox

Daniele Sestagalli discusses Wonderland’s future after QuadrigaCX co-founder dox

Uverejnil používateľ | jan 28, 2022 |

On Friday, Daniele Sestagalli, co-founder of decentralized finance, or DeFi, protocol Wonderland and stablecoin protocol Abracadabra, issued a statement on the path forward after the doxing of his colleague Michael Patryn:“Do we wind down or continue to fight for the aspect of an investment DAO [decentralized autonomous organization] being a revolutionary new organization? For the option that I am for, which is to fight and bring someone new and experienced to manage the treasury.”The day prior, an investor uncovered the identity of Wonderland’s chief financial officer to be Patryn, who was the former co-founder of defunct Canadian cryptocurrency exchange QuadrigaCX. Over $145 million worth of QuadrigaCX customers’ funds are still missing after the mysterious death of its co-founder in late 2018. In addition, Patryn was convicted of operating a credit card fraud scheme under a different name in 2002.Although no allegations of misconduct have taken place during Patryn’s tenure at Wonderland, the thought of appointing an individual with past criminal financial mishaps to manage the protocol’s treasury raised alarms among many Wonderland users. In a forum proposal cited by Sestagalli, its author, co-founder of Bastion trading known as “TheSkyHopper,” calls for the immediate removal of 0xSifu (Michael Patryn) from treasury management and proposed for members of his firm to join in as replacements. One user, El_jefe_NYC, commented:“This is EXACTLY the type of action Dani needed to do in these hard times. That’s how a leader is supposed to react. We will grow back MUCH stronger moving forward.”Wonderland is a reserve currency protocol built on the Avalanche blockchain. On Jan. 2, before the recent crypto market turmoil and the Michael Patryn dox, Wonderland’s treasury balance amounted to $1.9 billion in total value locked. However, that has dropped to $278 million at time of publication.

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Users flock to Curve amid lack of stablecoin liquidity on major DEXs

Users flock to Curve amid lack of stablecoin liquidity on major DEXs

Uverejnil používateľ | jan 28, 2022 |

In a Tweet posted by user @cryptotutor Friday, a screenshot appears to show a 27% spread between stablecoin Magic Internet Money (MIM) and USD Coin (USDC) trading pair on decentralized exchange, or DEX, Uniswap (UNI). Both have a theoretical peg of 1:1 against the U.S. Dollar.”Magic Internet Money,” joked cryptotutor, as he attempted to swap approximately $1 million in MIM but received a quote for only 728.6k USDC. Others quickly took to social media to complain as well. In another screenshot, user @DeFiDownsin allegedly received a quote to swap $984k worth of MIM for just 4,173 in USDT on SushiSwap (SUSHI).Swapping $1M in $MIM gives $730K in $USDC on Uniswap’Magic Internet Money’ pic.twitter.com/CKowe6dwJR— Tutor (@cryptotutor) January 27, 2022Curve, a popular platform for stablecoin trading, offered its insight on the matter. “Uniswap actually now works much better than what the screenshot shows. Sushiswap is just unsuitable for stablecoin-to-stablecoin swaps always,” said the Curve team via a tweet.During bear markets, investors typically flee from holding volatile cryptocurrencies and instead pile into stable assets that generate fixed income. For example, the amount of deposits in Terra Luna’s flagship stablecoin savings protocol, Anchor, which promises yields of up to 20%, has increased from $2.3 billion to $6.1 billion in the past 60 days.However, the capital flight has also resulted in issues, such as stablecoin liquidity disappearing from exchanges, causing their spread to widen to excruciating levels. In addition, the flock of stablecoins into the Anchor protocol has caused its yield to become unsustainable as there are not enough borrowers to pay depositors’ interest.But despite large fluctuations in the market, Curve appears to be doing better than ever. According to its developers, the platform saw a record trading daily volume of $3.6 billion, with total deposits surpassing $16.7 billion. Investors typically seek to take advantage of the occasional difference between stablecoins’ theoretical peg to fiat money or other stablecoins to make a profit.

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Fidelity seeks approval for 2 more crypto-metaverse ETFs

Fidelity seeks approval for 2 more crypto-metaverse ETFs

Uverejnil používateľ | jan 28, 2022 |

Fidelity Investments appeared undeterred by the U.S. Securities and Exchange Commission’s, or SEC’s, rejection of its Wise Origin Bitcoin Trust spot exchange-traded fund (ETF) on Thursday. Following the setback, the company filed two more prospectuses involving crypto-metaverse ETFs for regulatory approval. The proposals are for the Fidelity Crypto Industry and Digital Payments ETF and the Fidelity Metaverse ETF, respectively. In rejecting the Wise Origin Bitcoin ETF, the SEC cited the exchange listing the ETF, the Cboe BZX, for not having a proper “surveillance-sharing agreement with markets trading” to prevent fraud and protect investor interests.However, neither of the two new ETF applications will have any exposure to digital assets. Instead, they seek to gain exposure to stocks of cryptocurrency and metaverse companies operating in the space. Additionally, the constituent companies must generate substantial revenue for their shares to be added to the fund.For the Fidelity Metaverse ETF, sectors under consideration are computing hardware and components, digital infrastructure, design, engineering software, gaming technology, web/content developers and smartphone and wearable technology. As for the Crypto Industry and Digital Payments ETF, it will invest in companies operating in cryptocurrency mining, cryptocurrency trading, crypto exchanges, blockchain tech firms, and digital payments processors. In total, there are over 40 digital currency ETFs from a variety of financial entities awaiting a decision from the SEC. The prior month, Fidelity officially gained regulatory approval in Canada to launch a Bitcoin ETF and a Bitcoin Mutual Fund.

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