Hacker Exploited a $1 Million DeFi Protocol but Forgot to Take the Loot

Jenson Nunez
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Hacker Exploited a $1 Million DeFi Protocol but Forgot to Take the Loot

Everything seems to be possible in DeFi. a Hacker appeared to forget to collect the stolen funds, but there are theories about a more elaborate scheme behind the situation.

A little-known decentralized finance (DeFi) protocol called Zeed came under a cyberattack this week. However, after executing the exploitation, the attacker seems to have forgotten to take the profits generated by the exploit, According to the medium The Block, which reviewed the news first.

The BNB Chain (formerly Binance Smart Chain, BSC)-based platform Zeed fell victim to a cyberattack on Thursday, according to blockchain security firm BlockSec, which highlighted the incident via Twitter. Reports determined that the attack occurred when a malicious actor unveiled a vulnerability in the protocol’s reward minting archetype.

The hack would have allowed the attacker to access just over $1 million in digital assets. However, before migrating the profit, he destroyed the intelligent contract granting access to the extracted currencies.

Interestingly, the attacker did not migrate the stolen items before self-destructing the attack contract. He was probably too excited, according to the BlockSec team. Blockchain analysis firm, PeckShield also noticed the curious situation.

The malicious actor had difficulty getting access to the stolen currencies, but other theories suggest he forgot to do so in the heat of the moment. Although the possibility that it was a white hat exploit to expose the protocol’s vulnerability cannot get ruled out.

Among the chain of events of the DeFi world, this attack appears to be particularly strange. The funds acquired are out of reach by anyone after the contract gets destroyed, including the project developers.

Meanwhile, the YEED token connected to the DeFi project in question fell to zero following the attack. The Twitter account of the Zeed community, a protocol that presents itself as an autonomous decentralized financial integrated environment, did not bring vital information about what occurred and did not respond to tweets from security firms that sent a warning regarding the attack.

Cyberattacks and Breaches are Big Business

Malicious individuals with a hunger for wealth Lurk on the internet, hunting unaware users or looking for flaws in networks and systems to pounce on insecure data and breach the walls that protect those assets.

Despite the large amounts of money that usually get linked to these attacks, they often lack the attention of traditional entities robberies or attacks. However, cryptocurrency experts say they warn possible crypto investors by saying that exchanges move massive amounts of money and become a lucrative target for hackers and cybercriminals.

By: Jenson Nuñez

The Central African Republic Does Not Adopt Bitcoin but Regulates It

Alexander Salazar
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The Central African Republic Does Not Adopt Bitcoin but Regulates It

The new Central African law seeks to create a favorable environment for cryptocurrencies in the financial sector. Some congresspeople oppose it, arguing that they contribute to money laundering and fraud, among other illicit activities.

Reports on social networks indicate that the Central African Republic (CAR) has adopted Bitcoin (BTC) as legal tender. For that reason, the country is at the center of the buzz in the crypto world. However, various sources from the African continent have confirmed a different reality.

The National Assembly of the African country recently unanimously approved a bill that contemplates the regulation of cryptocurrencies. For example, the new law controls the use of Bitcoin in the territory, according to the LeTsunami media outlet.

The Minister of Digital Economy, Post and Telecommunications, Justin Gourna Zacko, issued that draft law. The official explained that the document establishes a favorable environment for the financial sector that meets the needs of that sector. In addition, it aims to provide the country with a legal framework that governs cryptocurrencies and the businesses using them.

The official also stated that investing in those digital assets offers many advantages to millions of users. He also pointed out that nobody should lose sight of the volatility in that market.

Curiously, the cabinet member referred to the ability not to depend on central banks. His position on the subject was very different from what other governments usually state.

Gourna Zacko said that the Central Bank would no longer be in control with the arrival of cryptocurrencies. He explained that they could send money to investors in currencies like the US dollar, the euro, and the naira. He highlighted that crypto assets offer advantages and that the legal framework should allow all Central Africans to benefit.

The Country Has Not Adopted Bitcoin as Legal Tender

The report from LeTsunami does not mention the adoption of Bitcoin or any other cryptocurrency as legal tender. However, media like Forbes Monaco and many bitcoiners said that the Central African Republic had taken the path of El Salvador.

Although that is not true, some local congresspeople have expressed their disagreement with the approved law. They argue that cryptocurrencies facilitate money laundering and tax fraud, among other crimes, as many regulators and governments do worldwide.

The Central African Republic has an area of about 623 square kilometers and barely over 5 million inhabitants. Besides having a tense political situation, it is also one of the poorest countries. For that reason, its citizens could benefit from cryptocurrencies like Bitcoin, as they would not depend on governmental policies.

Due to their small and failing economies, Africans have sought alternatives like Bitcoin for years. That is evident in the high trading volumes of cryptocurrencies in P2P markets. Unlike in the Central African Republic, the governments of other countries have not always accepted BTC.

For example, the Nigerian government had approved a ban on Bitcoin and other cryptocurrencies, which they later canceled. Then they announced the creation of their central bank digital currency (CBDC), the eNaira, following the trend of most governments worldwide.

By Alexander Salazar

The LUNA Price Is Likely to Resume Its Bullish Trend in the Short Term

Alexander Salazar
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The LUNA Price Is Likely to Resume Its Bullish Trend in the Short Term

A large bullish candlestick could curb the seven-day bearish intent, confirming an effective resumption of the upward trend. After appreciating by over 2,400% in a year, the tendency of LUNA will drive the price toward new all-time highs.

The price of LUNA, the native cryptocurrency of the Terra network, might reach new all-time highs in the short term. The widespread optimism in the crypto market has driven it up by nearly 30% from the recent low of USD 75.67.

LUNA is trading at around USD 91.16 and has accumulated a 3.1% loss over the last 24 hours. Its trading volume is above USD 1.24 billion, and its market capitalization is about USD 31.88 billion. It occupies 8th place in the cryptocurrency ranking, according to CoinGecko.

One of the best performing cryptocurrencies in 2022 has been precisely LUNA, thanks to the trust the Terra network has gained.

Although the value of LUNA had dropped quickly during the first two weeks of April, the upward trend remained intact. For that reason, the cryptocurrency might have been just going through a corrective period.

As the price is jumping considerably to the upside, there is a confirmation that the bulls are regaining control. The following technical analysis will allow investors to find out what to expect from that crypto asset.

Although LUNA Can Find New Highs, Investors Must Be Cautious

The daily LUNA/USDT chart shows that buyers took over the short-term trend. The price broke through two nearby resistances, and there began to be increasingly high lows.

After achieving demand at USD 78, the cryptocurrency price formed a large bullish candlestick, which could curb the seven-day bearish intent. That great force confirms an effective resumption of the upward trend.

The price maintains the 8-day EMA and 18-day SMA crossed to the downside but breaks through them. The medium-term trend continues as the 200-period SMA remains bullish.

After the price had a recent minor pullback, it looks like a short-term bullish momentum is starting. The next objective is to reach new highs, but investors have to be careful at that point.

Even Though the Trend Is Bullish, It Has Lost Strength

After appreciating by more than 2,400% in a year, the trend of LUNA is bullish, and the rally has extended.

The momentum is undoubtedly bullish and will continue to drive the price toward new all-time highs in the short-medium term.

However, the Relative Strength Index (RSI) indicates a significant bearish divergence with the price chart. Meanwhile, the weekly graph shows higher highs, suggesting that the bulls have run out of steam with the new price records.

The ongoing strongly bullish candlestick makes support above the 8-week EMA and 18-week SMA. For that reason, investors can be confident that the price will reach new highs in the short term.

However, there may not be a rally as big as last year at this point in the rally unless a major pullback occurs first. Before thinking of a significant correction in the short term, the price must lose support at USD 77. However, a drop in the value of LUNA would not be a concern if it remains at the USD 50 level.

By Alexander Salazar

Top Five Cryptocurrencies to Watch this Week: BTC, DOT, XMR, APE, CAKE

Audy Castañeda
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Top Five Cryptocurrencies to Watch this Week: BTC, DOT, XMR, APE, CAKE

Bitcoin bulls are attempting to reclaim the $40,000 level and if this happens, DOT, XMR, APE, and CAKE could be the first altcoins to break higher.

The sharp drop in US stock markets on April 22 suggests that investors are becoming increasingly nervous about the aggressive stance of central banks. The market expects a 250 basis point rate hike by the US Federal Reserve in 2022. In addition, there is an expectation that the European Central Bank will raise rates for the first time since 2011, according to a source in Reuters.

Data from Coinglass showed that funding rates on crypto derivatives exchanges remained negative over the weekend, indicating a bearish bias. Failure to hold a rally has pushed the Crypto Fear and Greed Index back into “extreme fear” territory.

Could Bitcoin attract strong buying at lower levels? If that happens, the selected altcoins could outperform. Let us study the charts of the top five cryptocurrencies that show a positive chart structure.

BTC/USDT

Bitcoin broke below the psychological support at $40,000 on April 22, but the bears have been unable to build on this advantage. The successive inside candlestick patterns on April 23 and 24 suggest indecision between the bulls and the bears.

If the price bounces hard off the support line, it will indicate strong demand at lower levels. The bulls will have to push and sustain the price above the 50-day SMA ($41.993) to signal that the correction may be over. Afterwards, the pair can attempt a rally to the 200-day SMA ($47.828).

Alternatively, if the price breaks below the channel, the selling could intensify further and the pair could drop to $34.322 and then $32.917.

DOT/USDT

Polkadot (DOT) has been trading near the overhead resistance at $19 for the past few days. This suggests that the bears have successfully defended the level, but a minor upside is that the bulls have not given much ground to the sellers.

The slightly downward sloping 20-day EMA ($19) and the RSI in the negative zone suggest that the bears have a slight advantage. If the price turns down and drops below $18, the possibility of a drop to the strong support at $16 increases.

Conversely, if the bulls push the price above the 50-day SMA ($19), the bullish momentum could pick up and the DOT/USDT pair could rally to the overhead resistance at $23. The bears will likely ride strong defense at this level.

USDT/XMR

Monero (XMR) is correcting in a bullish move. The price turned down from $290 on April 22, which indicates that the bears pose a strong challenge near the psychological level of $300.

The XMR/USDT pair might first drop to the 20-day EMA ($245), which is likely to act as strong support. If the price bounces hard off this level, it will indicate that the bulls are buying the dips. Then, the pair might again try to break above the overhead resistance at $300. If that happens, the pair can rally to $340.

Alternatively, if the price breaks below the 20-day EMA, the selling could intensify and the pair could slide to the 50-day SMA ($215).

APE/USDT

Ape Coin (APE) broke out of the symmetrical triangle pattern on April 19, indicating that the indecision between the bulls and bears has resolved in favor of the buyers.

The 20-day EMA ($13.67) has turned up and the RSI is in the positive zone, which indicates that the bulls are in command. There is minor resistance at $18.44 from where the APE/USDT pair turned down on Apr 23.

If the price turns up from the current level, the bulls will try to push the pair above $18.44. If they are successful, the pair could rally to $20 and then $24. This positive view could be not valid in the short term if the price turns down and breaks below the 20-day EMA.

CAKE/USDT

PancakeSwap (CAKE) recently bounced off the downtrend line, indicating that the bulls had flipped the level to support. The 20-day EMA ($8.69) and the 50-day SMA ($7.71) are gradually rising and the relative strength index is in the positive territory, which suggests that the bulls have the upper hand. If the buyers push and sustain the price above the 200-day SMA, the CAKE/USDT pair could rally to $13.50 and then $15.

By Audy Castaneda

Bitcoin Sets Lowest Weekly Close Since Early March as Its Fourth Red Candle Looms

Audy Castañeda
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Bitcoin Sets Lowest Weekly Close Since Early March as Its Fourth Red Candle Looms

It is a question of whether BTC can avoid its first four weekly red candles since June 2020.

Bitcoin (BTC) held below $40,000 on April 24, as the weekly close appeared to be painful for the bulls.

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair failed to recapture the $40,000 mark after losing it earlier on the weekend.

As traders braced for classic volatility at the weekly close, Bitcoin looked decidedly unappetizing. At $39,500 on Bitstamp, the spot price at the time of writing would constitute the lowest weekly close since the week of March 7.

Bitcoin was now facing the possibility of resistance consolidating at the $40,000 mark, with traders showing their lack of confidence in a short-term rebound.

Binance Offerings Slowly Dilute Below Spot

Data from on-chain analytics site Coinglass confirmed that funding rates on derivatives exchanges were firmly negative over the weekend, suggesting most market participants expected short strategies to be an upcoming profitable trade.

“Pretty obvious uptrend from mid to late January. If we get our fourth RED weekly close today, it could be bad,” the CryptoBull Twitter account commented in a discussion with popular analysts Johal Miles and Pentoshi.

Four red weekly candles in a row would be a rare event, the account added, noting their absence for the past two years on the weekly chart.

“It hasn’t happened since 6/2020. But after that happened we went up to the ATH,” Cryptobull wrote on Twitter.

Meanwhile, data from on-chain monitoring resource Material Indicators showed declining offers below the spot price, which nonetheless continued to retest the $40,000 resistance.

France Keeps Markets on Alert

Outside of technical signals, attention turned to France on Sunday as the presidential election ended.

With incumbent Emmanuel Macron expected to win a second term, the warnings painted a dire market reaction should his rival, Marine Le Pen, win the presidency.

“It would be a terrible day for the markets,” Ariane Hayate, a fund manager at Edmond de Rothschild Asset Management, told Bloomberg.

“The first impact would be on the French 10-year bond yield which could skyrocket,” the fund manager added.

Analysts Say Bitcoin “Has Already Capitulated,” Pointing to $41,300 as the Level to Hold.

As Cointelegraph reported, the financial fragility of the European Union has come to the fore as inflation soars and central bank balance sheet drawdowns have yet to come.

Meanwhile, European Union Rolls Up Sleeves to Regulate Cryptocurrencies

The European Union wants a single and harmonized regulation to regulate the universe of cryptocurrencies. A week ago, the European Parliament took a definitive step in this direction by giving the green light to the proposed MiCA Regulation (Markets in Crypto Assets), where the amendment proposal to prohibit or restrict the circulation of the Bitcoins.

The lack of a common law on virtual currencies is a brake on “the arrival of institutional investors and large fortunes in the sector.” This is the opinion of Lorena Martínez Romero, director of the risk and regulatory compliance department of the platform to sell and buy cryptocurrencies 2gether.

In her view, a regulation that guarantees a common regulatory framework between territories would dispel the doubts of investors who are still suspicious of the crypto world. This standard, however, could take a couple of years to arrive.

Until then, digital assets pose numerous legal challenges. “Legal certainty and uniformity are required, at least within the European Union. The main reluctance is the high volatility, the lack of government support and, in my experience, the little regulation that exists,” says the compliance officer.

By Audy Castaneda

Decentralized Credit Scores: How Can Blockchain Technology Change Scores?

Audy Castañeda
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Decentralized Credit Scores: How Can Blockchain Technology Change Scores?

Loans and credits are two important parts of DeFi, but they have been missing an effective operational credential: a decentralized credit rating.

The concept of lending and borrowing is as old as time itself. When it comes to finances, while some individuals have more than enough for themselves, others barely have enough to get by. As long as this imbalance in the distribution of finances exists, there will always be the need to borrow and the desire to lend.

Lending consists of giving a credit resource with the condition that you repay it after an agreed term. In this case, those resources would be money or any financial asset.

The lender can be an individual, a financial institution, a company, or even a country. Whatever the case, the lender often needs a kind of guarantee that he will receive his resources back within the agreed period.

There are certain criteria that qualify a borrower to take out a loan. Among them is the borrower’s debt-to-income ratio (DTI), which measures how much of their income goes toward monthly debt service, stable employment, collateral value, and real income.

Crucial Role of Credit Rating in Loan Granting

In general, most financial institutions and companies rely more on the credit score of the borrower than on the aforementioned criteria.

Consequently, the credit score is by far the main factor in determining whether a borrower should receive a loan. In a world of financial imbalance where loans are rapidly becoming necessary, especially due to recent economic difficulties, individuals, establishments and even governments must keep their credit ratings as favorable as possible.

These ratings or scores may be assigned to individuals, businesses, or governments that wish to take out a loan in an attempt to pay off a shortfall. Failure to repay the loan at the agreed time often has a negative impact on the borrower’s credit rating, making it difficult for them to obtain another loan in the future.

In the case of governments, they are likely to face sovereign credit risk, which is the possibility of a government defaulting on a borrowed loan. According to data from Wikipedia, Singapore, Norway, Switzerland, and Denmark rank first to fourth, respectively, among the least risky countries to grant loans.

Traditional Credit Rating is Barely Perfect

Although it may seem simple, the concept of credit scoring is far from perfect due, in large part, to its centralized nature.

Establishments commonly known as credit bureaus carry out credit scores. Agencies such as Transunion, Experian, and Equifax carry out the credit rating of individuals. Companies like Moody’s and S&P Global, to name a few, can evaluate governments and other companies as well.

Although credit bureaus strive to assess borrowers’ creditworthiness as transparently as possible, there have been numerous instances of improper assessments due to issues such as withholding material information, static study, misrepresentation, and human bias.

In a recent article, Dimitar Rafailov, a Bulgarian associate professor at the Varna University of Economics, highlighted the importance of proper and transparent credit rating.

The Patent Need for Decentralization

The arrival of Blockchain technology revolutionized many sectors, especially the financial one. Decentralized finance (DeFi), as a product of burgeoning technology, has revealed the possibility of managing financial services with a peer-to-peer (P2P) system, eliminating the idea of ​​an intermediary or central authority.

Decentralized credit scoring refers to the idea of ​​assessing a borrower’s creditworthiness using on-chain—sometimes off-chain—data without the need for an intermediary. The evaluation takes place on a Blockchain managed by a P2P system of computers without any central authority or control point. Additionally, a decentralized credit score erases traditional credit bureaus from the picture.

By Audy Castaneda

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