Cryptocurrencies To Watch

Author: Abigail Michelle

  • Radiant Capital Exploiter Moves $52M in Stolen Crypto to Ethereum Network

    Radiant Capital Exploiter Moves $52M in Stolen Crypto to Ethereum Network

    Following the recent security breach of the decentralized finance (DeFi) protocol, Radiant Capital, the individual or group behind the exploit has bridged nearly all stolen assets from layer-2 scaling solutions to the Ethereum network.

    According to blockchain security firm PeckShield, the hacker moved about 20,500 ETH worth around $52 million from Layer 2 networks Arbitrum and Binance BNB Chain to the Ethereum network on Thursday.

    The recent development poses significant challenges for the DeFi protocol and affected victims waiting for the refund of their lost funds, as evidence suggests the Radiant Capital hacker relocated the stolen funds to the Ethereum network, potentially to conceal transaction histories and hinder recovery attempts.

    Radiant Capital Loses Over $50M to Security Breach

    On October 16, Radiant Capital suffered a sophisticated security breach that caused the DeFi protocol to lose over $52 million to the hackers. 

    The exploit occurred during the protocol’s RIZ BSC market launch celebration. Specifically, the hacker compromised the devices of at least three core developers through malware injection. This breach granted the hacker unauthorized access to the multi-signature wallet, enabling the signing of malicious transactions and subsequent theft of funds from the BNB Chain and Arbitrum networks.

    Following the incident, Radiant Capital halted its lending markets and enlisted the expertise of security specialists like SEAL911, Hypernative, ZeroShadow, and Chainalysis to investigate and mitigate the security breach.

    The recent hack marks the second significant security breach for the DeFi protocol. Earlier this year, Radiant Capital, temporarily suspended lending and borrowing operations on Arbitrum due to a $4.5 million exploit targeting one of its newly launched USDC markets.

    Hackers Exploit Ethereum Protocols to Launder Stolen Funds

    The Radiant Capital hack is just one example of the persistent problem of hackers exploiting Ethereum-based protocol for money laundering. 

    Notable examples include the high-profile breaches of Axie Infinity ($622M), Poly Network ($610M), and Harmony Horizon Bridge ($100M), where Tornado Cash was utilized to launder illicit funds.

    Last month, the perpetrator responsible for the $27 million security breach targeting Penpie, another DeFi project like Radiant Capital, utilized the Tornado Cash crypto mixer to launder approximately $7 million of the stolen funds.

  • Northern Data Dumps Bitcoin Mining Business to Explore AI

    Northern Data Dumps Bitcoin Mining Business to Explore AI

    In a Monday press release, Northern Data, a German-based technology and high-performance computing (HPC) solutions provider, revealed its intention to offload its mining rigs from its Bitcoin mining unit, Peak Mining, shifting entirely to artificial intelligence (AI).

    The firm’s potential sale of Peak Mining will transform it into a dedicated AI solutions company, boasting Europe’s largest generative AI cloud platform and cutting-edge data centers.

    Northern Data Divests Bitcoin Mining

    Northern Data intends to redirect funds from its Bitcoin mining unit sale toward AI growth initiatives, including software development, managed services expansion, Data Center upgrades, and AI-focused GPU procurement.

    Northern Data’s Q3 2024 results showed strong AI solutions growth for the third quarter in a row. The company will now accelerate AI innovation, customer support, and sustainable infrastructure development.

    Concerning the company’s new move, Aroosh Thillainathan, founder and CEO of Northern Data Group, stated:

    “Mining is a foundational part of Northern Data’s heritage and growth story. We remain supporters of blockchain technology and continue to believe in its potential. This commitment means identifying the right steward for this valuable business is of absolute importance, as we solidify our focus on powering AI innovation through best-in-class infrastructure and carbon-neutral energy systems.”

    Northern Data’s Group COO, Rosanne Kincaid-Smith, also emphasized the company’s commitment to its goal of spearheading the AI revolution, providing seamless access to intelligent and sustainable solutions, and delivering exceptional services and tools to customers.

    Bitcoin Mining Firms Branch Out into New Markets

    Northern Data is not alone in its strategic shift, as several Bitcoin mining firms are now exploring new revenue streams. 

    Last month, Bitcoin mining firm Cathedra announced plans to discontinue mining operations and focus on acquiring bitcoin (BTC) through market purchases.

    The company’s shift from bitcoin mining is driven by strategic and operational considerations. Specifically, the company is trying to recover from the 2024 Bitcoin halving event, which reduced mining block rewards. In addition, Cathedra stated that its core objective – acquiring Bitcoin for investors – was not being met, prompting this adjustment.

    Recently, Bitcoin’s network hashrate surged to 769.8 EH/s, indicating enhanced security but also signaling increased costs in mining operations that may drive smaller firms to consolidate or explore alternative revenue streams. This new development will potentially prompt other firms to join Northern Data and Cathedra in exploring alternative business strategies.

  • Bitcoin Hashrate Hits New All-Time High of 769.8 EH/s

    Bitcoin Hashrate Hits New All-Time High of 769.8 EH/s

    In a significant milestone, data on BitInfoCharts revealed that Bitcoin’s network hashrate has surged to an unprecedented 769.8 exahashes per second (EH/s), surpassing its previous peak and establishing a new benchmark.

    Bitcoin Hashrate Surge Boosts Network Security

    Bitcoin hashrate measures the total computational power of all miners on the network used to secure the Bitcoin network, validate transactions, and mine new bitcoins. The metric is calculated in exahashes per second (EH/s), with higher rates indicating greater network security.

    Bitcoin’s latest hashrate record of 769.8 EH/s, a 13% growth since April’s halving event, indicates the network’s increased security. A higher hashrate makes it more difficult for attackers to breach the network, ensuring the integrity of the blockchain. 

    In addition, a higher hashrate increases Bitcoin’s network resilience against 51% attacks, making it more challenging for malicious actors to launch such assaults, thus, reinforcing its decentralized architecture.

    Hashrate Hike Spells Doom for Crypto’s Little Guys

    As Bitcoin’s hashrate records new highs, the network’s security improves, but miners face increasing competition and dwindling profits. This development could trigger a shakeout of inefficient and smaller mining firms, leading to consolidation and migration to low-cost energy centers.

    Following the Bitcoin halving in April, which slashed block rewards to 3.125 BTC, mining costs surged, making it increasingly challenging for miners.

    In August, bitcoin miners’ revenue plummeted by 10.5% to $827.56 million, a significant drop from July’s $927.35 million. 

    Bitcoin mining totals also fell in August, with 13,843 BTC mined, down 5.9% from July’s 14,725 BTC, despite strong showings from mining firms Foundry USA and Antpool. The former dominated with 1,240 blocks, capturing 30% of the market, while the latter followed closely with 1,074 blocks, accounting for 25.04%.

    Last month, Bitcoin Miner Cathedra, announced its plans to temporarily halt its Bitcoin mining operations, diversify into data center development and operation, and redirect its realized profits to enhance its Bitcoin portfolio through targeted acquisitions and investments.

    According to the firm, its decision to pause mining operations is a strategic response to the 2024 Bitcoin halving’s reward reduction, which diminished bitcoin acquisitions for investors, prompting exploration of alternative methods to boost shareholder bitcoin per share.

    Following in the footsteps of U.S. bitcoin mining firm Marathon Digital, Cathedra plans to expand its holdings through regular buys.

  • EigenLayer User Loses $800K to Malicious Airdrop

    EigenLayer User Loses $800K to Malicious Airdrop

    According to on-chain data, the malicious actor responsible for the security breach of EigenLayer has stolen a significant amount from users on the platform. As of the latest update, a user on EigenLayer has incurred losses that exceed $800,000 in mETH (Mantle Staked Ether) tokens as a result of the phishing scam.

    EigenLayer Faces Major Security Breach

    In an unfortunate turn of events, EigenLayer, a leading decentralized finance (DeFi) restaking protocol on Ethereum, reported a security breach on its official X account earlier today.

    A malicious actor exploited the platform’s account to promote a fraudulent token airdrop, deceiving unsuspecting users.

    The scammer made a false airdrop campaign about reallocating EIGEN tokens for Season 2 of EigenLayer’s airdrop. Meanwhile, the platform had already announced its Season 2 stakedrop in September, and the claim duration has since concluded.

    The phishing post redirected users to a spoofed website, ‘blog.eigenfoundation.org’, instead of the authentic ‘blog.eigenlayer.xyz’ link provided by EigenLayer for the Season 2 stakedrop.

    An analysis of on-chain data from the blockchain explorer Etherscan reveals that the hacker has successfully transferred a substantial portion of the stolen funds to multiple wallets.

    Furthermore, the hacker initiated requests to unstake mETH tokens, potentially to launder the ill-gotten funds.

    The platform’s significant presence in the DeFi ecosystem, as the second-largest protocol on Ethereum with a substantial total value locked (TVL) of $11.1 billion, makes it an attractive target for malicious actors seeking to exploit user trust.

    Earlier this month, EigenLayer announced that it launched an investigation into suspicious activity from a wallet ending in “f10D,” which sold 1.6 million EIGEN tokens worth $5.7 million.

    Further investigation revealed that a malicious attacker compromised an email thread related to an investor’s token transfer, resulting in the theft.

    Although the hack involved the platform’s token, the EigenLayer team emphasized that the security incident was isolated and did not disrupt its ecosystem or on-chain services.

    The crypto industry continues to grapple with recurring security breaches, with frequent incidents leading to massive financial losses. Last month, the market suffered more than 20 hack incidents, culminating in financial losses exceeding $120 million.

  • Bitcoin Google Search Volume Drops to 12-Month Low Amid Price Rally

    Bitcoin Google Search Volume Drops to 12-Month Low Amid Price Rally

    According to a recent data on Google Trends, global searches for “Bitcoin” reached a 12-month low, scoring just 33 out of 100 on Google’s interest scale by the end of the week of October 12, 2024.

    Google Trends is an online tool that tracks Google search data to reveal popular search terms, topics, and trends. It offers a glimpse into public interest and behavior over time and across regions.

    The popularity score ranges from 0 to 100, indicating the term’s relative popularity. 100 represents peak popularity, 50 signifies half-peak popularity, and 0 indicates insufficient data.

    The Google search score for Bitcoin stands at 33 out of 100, reflecting limited search queries and interest in the cryptocurrency, contrasting with its recent price growth.

    Bitcoin’s price has increased significantly over the last 12 months, rising from $26,850 to $64,919, according to data on CoinMarketCap, with the highest interest recorded in March. At press time, Bitcoin was selling at $65,600.

    Low Bitcoin Search Volume – A Bearish Signal?

    The decline in Bitcoin-related Google searches may signal several trends. It could mean fewer people are searching for Bitcoin, suggesting waning interest or enthusiasm. It could also mean Bitcoin has become mainstream, reducing the need for searches.

    Low search volume could also reflect a stable or stagnant Bitcoin price, reducing the need for information. However, low search rates don’t automatically signify a bearish market, it could precede significant price jumps. 

    For instance, following the launch of U.S. spot Bitcoin ETFs in late January to early February, search interest plummeted below 20, yet Bitcoin’s price skyrocketed from $41,000 to nearly $71,500.

    El Salvador Tops Global Rankings for Bitcoin Google Searches

    In the list of regions with the top Bitcoin Google searches, El Salvador tops the list followed by Nigeria and Switzerland. 

    El Salvador has been bullish for a while now after the Central American country took a groundbreaking step in 2021 to adopt Bitcoin as its legal tender under President Nayib Bukele’s administration. 

    El Salvador has also launched several Bitcoin-focused initiatives, including Bitcoin bonds, geothermal mining operations that have yielded approximately 474 BTC, and a novel citizenship program linked to Bitcoin investments. In August, the National Bitcoin Office (ONBTC) of El Salvador revealed its plans to train and provide Bitcoin certification program to 80,000 public servants.

  • Nearly 50% of Traditional Hedge Funds Now Have Crypto Exposure: Survey

    Nearly 50% of Traditional Hedge Funds Now Have Crypto Exposure: Survey

    Recent advancements in regulatory clarity, coupled with the successful launch of exchange-traded funds in the United States and Asia, have catalyzed a pronounced shift toward cryptocurrency investment among institutional players.

    According to a Bloomberg report, a recent survey by the Alternative Investment Management Association and PwC shows that about 47% of traditional hedge funds now hold cryptocurrencies, a significant increase of 29% in 2023 and 37% in 2022.

    The 6th Annual Global Crypto Hedge Fund Report 2024 survey added that among the existing crypto investors, about 67% intend to sustain their current allocation, while the remaining 33% plan to increase their investment by year-end 2024.

    In addition, traditional hedge funds are increasingly shifting to digital asset derivatives, with adoption increasing from 38% in 2023 to 58% in 2024, while spot trading dropped from 69% to 25%.

    Big Money Bets on Crypto

    Although institutions are betting on crypto, several traditional hedge funds (about 76%) remain cautious and unwilling to enter the digital asset space within three years.

    Commenting on institutional investors’ influx into crypto, James Delaney, Managing Director, Asset Management Regulation, AIMA, said,

    “The findings from this year’s report indicate a steady recovery in confidence over the past year. Institutional investors are showing renewed interest, driven by several key factors including increased regulatory clarity, such as the European Union’s MiCA [Markets in Crypto-Assets] regulation, advancements in infrastructure, and the approval of new products like spot bitcoin and ether ETFs by the US Securities and Exchange Commission”

    He also mentioned the growing interest in blockchain technology and tokenization for improving efficiencies in asset management. Delaney emphasized that AIMA remains committed to supporting the institutionalization of the asset class through advocacy, operational guidance, and educational efforts.

    Last month, DBS, Singapore’s top bank, became the first Asian bank to unveil plans to introduce bitcoin and cryptocurrency options trading on its platform, bridging the gap between traditional finance and crypto assets.

    Another traditional institution, Commerzbank, a major player in German banking, joined forces with Crypto Finance to introduce cryptocurrency services, enabling its corporate clients to trade Bitcoin (BTC) and Ether (ETH) and tap into the digital asset market.

  • Solana Could Increase 5X If Trump Wins. Here’s Why

    Solana Could Increase 5X If Trump Wins. Here’s Why

    Solana could increase by 5X by the end of 2025 if Donald Trump wins the United State presidential election, according to Geoffrey Kendrick, Global Head of Digital Assets Research at the British multinational bank Standard Chartered.

    In a Tuesday note, Kendrick predicted that Solana could outperform Bitcoin and Ethereum upon Trump emerging as the president of the U.S. since his economic policies and administration will create a conducive environment for Solana’s expansion, potentially leading to significant price increases.

    “In rough terms from today’s prices under Trump I predict the following multiples by year-end 2025: SOL 5X, ETH 4X, BTC 3X,” he stated.

    Crypto’s Possible Future Under Trump

    Kendrick’s prediction for Solana’s growth hinges on Trump’s support, which could pave the way for a Solana exchange-traded fund (ETF).

    This development would significantly boost growth prospects, as a recent report suggests that an approval of a Solana Spot ETF could lead to a staggering price surge of over 8.9 times. In other words, Trump’s backing could be the catalyst for Solana’s meteoric rise.

    The Standard Chartered executive also predicted a substantial rise in Solana’s throughput, varying from 100 to 400 times, based on the current market cap-to-fees ratio, with SOL at 250x, and ETH at 121x. However, for this prediction to materialize, Solana must first meet key conditions.

    First, Solana has to implement the mainnet for Firedancer, a new independent validator client software that increases transactions per second to one million. In addition, Solana needs to establish dominance across multiple sectors, including finance, consumer services, and decentralized physical infrastructure (DePIN).

    Crypto’s Possible Future Under Harris

    While Kendrick predicts Solana will outshine Bitcoin and Ethereum under Trump’s presidency, his view changes with Harris at the helm.

    “Under Harris, we would expect BTC to outperform ETH and ETH to outperform SOL in 2025,” he said.

    Kendrick believes that by the end of 2025, Ethereum could sell at $7,000 while BTC at $200,000 if Harris wins.

    The upcoming U.S. presidential election is expected to significantly impact the crypto market. Both candidates, Trump and Harris, have expressed support for the crypto industry, although Trump has been more vocal about his intentions.

    The crypto community is cautiously optimistic, hoping the support is genuine and not just a strategic move to capture crypto votes.

  • Bullish! Bitcoin Outperforms Gold and Silver Year-to-Date

    Bullish! Bitcoin Outperforms Gold and Silver Year-to-Date

    In a bold rebound, Bitcoin has shrugged off its recent downturn. The resilient crypto asset topped the list of the best-performing assets of 2024, outpacing physical assets gold and silver in year-to-date returns.

    Bitcoin gained 49.2% year-to-date, while silver and gold recorded 30.6% and 26.5%, respectively, according to data collected by Greg Cipolaro, Global Head of Research at New York Digital Investment Group (NYDIG).

    Bitcoin’s Wild Ride in 2024

    Bitcoin’s performance rebounded following a volatile year marked by significant price fluctuations. In the first quarter (Q1) of 2024, Bitcoin saw a considerable price increase from $42,000 to a little above $73,000, recording a new all-time high (ATH) price in March.

    The new ATH record was primarily attributed to the approval of the Bitcoin spot exchange-traded fund (ETF) in the United States in January, coupled with sustained demand growth.

    However, Bitcoin’s momentum was short-lived, as its price fell from $71,400 to $60,700 in Q2, indicating a bearish reversal. This downward trajectory was driven mainly by major economic events, including miner capitulation and the Federal Reserve’s delay in reducing interest rates.

    The crypto market continued its downturn, with Bitcoin recording a 30% quarterly decline in Q3. The fall was attributed mainly to Mt. Gox repayment plans and government-led sell-offs. For instance, the German government sold the entirety of the 50,000 BTC, worth about $2 billion, confiscated from Movie2K in 2013.

    Mid-June 2024 marked the start of Germany’s Bitcoin sales, which continued through Q3, utilizing multiple wallets, OTC trading desks, and major crypto exchanges like Coinbase, Kraken, and Bitstamp.

    Bitcoin Performance Going Forward

    As Q4 unfolds, its outlook remains bullish, with experts predicting a prolonged growth trajectory. Notably, Binance CEO Richard Teng predicted that BTC will sell for more than $80,000 before the end of 2024.

    The 2024 U.S. presidential election could also significantly boost Bitcoin’s performance in recent months. The election’s outcome may clarify regulatory policies, thus influencing investor sentiment and potentially driving demand for the crypto asset.

    The presidential candidates, Kamala Harris and Donald Trump have expressed support for the cryptocurrency sector, albeit to varying degrees. While Harris has recently shown public support for the industry, Trump has consistently endorsed crypto since launching his campaign, even accepting crypto-denominated donations from notable individuals.

  • Crypto Exchange Bithumb Plans to Go Public on Nasdaq Next Year

    Crypto Exchange Bithumb Plans to Go Public on Nasdaq Next Year

    Bithumb, one of South Korea’s largest and most influential cryptocurrency exchanges based on trading volume, liquidity, and market presence is considering a potential listing on the US Nasdaq stock exchange, according to a local news outlet, Korea Economic Daily.

    At a temporary shareholders’ meeting on Monday, the crypto exchange announced that it is exploring a potential US Nasdaq listing as part of its broader strategy to go public through an initial public offering (IPO).

    Bithumb intends to initiate its IPO in the second half of next year, with Samsung Securities serving as lead manager.

    Bithumb Reviews IPO Plans

    Bithumb’s current IPO push follows a previous, unsuccessful bid to list on KOSDAQ, South Korea’s equivalent of NASDAQ,  in 2020, which was hindered by ambiguous regulatory and accounting issues.  However, the company remains open to exploring all possibilities, both domestically and internationally.

    “Regarding listing, all possibilities are open, not only domestically but also overseas. Because the financial authorities do not recognize virtual assets as financial products, there are no Bitcoin ETFs available in Korea…Since Coinbase, the largest virtual asset exchange in the U.S., is listed on the NASDAQ, Bithumb may look overseas rather than the stock market or KOSDAQ,” a Bithumb official said.

    Leading up to its highly anticipated IPO, Bithumb undertook a significant restructuring step in March, dividing its human resources into two distinct entities. This strategic realignment aims to sharpen the company’s focus on its core virtual asset exchange business, thus enhancing its chances of a successful IPO. 

    Bithumb will maintain its existing business divisions, while the new entity – Bithumb A or Bithumb Investment – will manage non-core assets, including holding company, investment, and real estate brokerage businesses.

    Bithumb Gears Up for Rebranding

    As Bithumb prepares for its NASDAQ debut, the company plans to rebrand, following its successful 2019 reorganization from BTC Korea.com to Bithumb Korea. Bithumb Korea intends to change its corporate name to Bithumb, streamlining its brand identity to bolster international awareness.

    Meanwhile, Bithumb faced a legal issue in May last year when prosecutors investigated its platform, along with another South Korean crypto exchange, Upbit, over former politician and lawyer Kim Nam-kuk’s digital asset transactions.

  • Singapore High Court Grants WazirX 4-Month Moratorium to Restructure Liabilities After $230M Hack

    Singapore High Court Grants WazirX 4-Month Moratorium to Restructure Liabilities After $230M Hack

    Judicial Commissioner Kristy Tan of a Singapore High Court has granted the Indian crypto exchange, WazirX, a four-month conditional moratorium to restructure its liabilities after experiencing a major $230 million cyber heist in July.

    The court ruling implies that WazirX has been granted a four-month breathing space to restructure its debts, under Section 64 of the Insolvency, Restructuring, and Dissolution Act (IRDA), with certain conditions attached.

    The court orders WazirX to disclose wallet addresses, respond to user queries, release financial records within six weeks, and ensure third-party oversight of future voting processes.

    WazirX Suffers Massive $230M Hack

    India’s biggest crypto exchange WazirX suffered a massive hack in July losing about $235 million in various cryptocurrencies, including USDT, Ethereum, and Shiba Inu. 

    The hacker infiltrated the exchange’s network through its Ethereum-based Safe Multisig Wallet, using TornadoCash, a decentralized protocol for private transactions on Ethereum,  to conceal transactions. 

    Following the incident, WazirX suspended withdrawals and launched an investigation. In addition to the stolen funds, the exploit caused the crypto exchange’s token, WRX, to drop by 15%.

    A week after the attack, WazirX suspended trading on the platform to protect users’ funds and announced a reward to anyone who could help identify the hacker and secure the lost funds.

    After several unsuccessful attempts to recover the stolen funds, WazirX, through its  Singapore-based parent company,  Zettai Pte Ltd, filed for a 6-month moratorium in August. The application, submitted by Director Nischal Shetty included a request for a six-month breathing space to settle financial liabilities after the hack.

    However, the latest update indicates that the initial extension request was modified to four months.

    WazirX Users React to the 4-Month Moratorium

    WazirX’s conditional moratorium approval by Singapore’s court drew mixed reactions from the crypto community. 

    The approval sparked widespread skepticism, with hardly any users expressing enthusiasm, as most worried that the four-month extension would grant the hacker sufficient time to dispose of stolen funds.