DeFi App Mirror Protocol Suffers Fresh Exploit Due to LUNA Classic Pricing Error

Mirror Protocol, a decentralised finance (DeFi) app on the Terra blockchain, has suffered yet another exploit due to an error in the configuration of price oracles, just days after discovering that it had been exploited for almost $90 million (roughly Rs. 700 crore) seven months ago. The attacker has leveraged the fact that price oracles are mismatching the old Terra Classic (LUNC) token with the new LUNA token. This was confirmed by a Chainlink community member who said oracles are currently “reporting the price of the new Terra 2.0 $LUNA coin instead of the original Terra Classic $LUNC coin.”

Quickly circulated on Twitter by user and Terra Research Forum member FatMan (@FatManTerra), who discovered the previous Mirror exploit four days ago.

According to FatMan, the hack was possible due to an error in the configuration of price oracles. FatMan estimates the exploit has already cost Mirror Protocol around $2 million (roughly Rs. 15.5 crore) when first reported at 1:30 am IST. FatMan has since tweeted that Mirror Protocol has reacted and disabled mBTC, mETH, mGLXY, and mDOT as collateral and thus prevented the attacker from draining other liquidity pools completely. That said, we don’t yet have an official figure as to how much the attacker has been able to drain from Mirror Protocol’s pool combined.

For the uninitiated, Mirror Protocol is a decentralised application that allows for the creation of digital synthetics that track the price of real-world assets, such as stocks. Mirror’s core contracts were deployed on Terra Classic, but its assets are available on networks like Ethereum.

This is the second time Mirror Protocol has suffered from a major vulnerability. The previous bug in Mirror’s code was exploited “hundreds of times” since 2021 according to a tweet from FatMan.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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ISRO to Launch Communication Satellite GSAT-24 From French Guiana on June 22


BTC, ETH Open First Day of June With Minor Losses, Stablecoins See Gains

After facing tough market days all throughout May, the crypto market stepped into June with some gains and some losses. Bitcoin on Wednesday, June 1, opened with minor losses on national and international exchanges. As per India’s CoinSwitch Kuber, BTC value stands at $33,234 (roughly Rs. 25 lakh) after incurring a miniscule dip of 0.25 percent. The world’s first cryptocurrency dropped by over one percent on international exchanges such as CoinMarketCap and Binance, bringing its value to around $31,432 (roughly Rs. 24 lakh).

Threading behind Bitcoin, Ether also saw a small tumble down the price ladder. As per Gadgets 360’s crypto price tracker, ETH fell by 2.75 percent to open trading at $2,029 (roughly Rs. 1.5 lakh).

A significant number of popular altcoins began the first day of the new month with small losses.

These include Solana, Polkadot, Avalanche, and Polygon among others.

Despite Elon Musk announcing to open DOGE payments for SpaceX merch, the memecoin failed to see any gains.

Shiba Inu’s market movement also remained riddled with losses amid the assumed exit of its anonymous creator Riyoshi from the crypto world.

Meanwhile, stablecoins such as Tether, USD Coin maintained the greens on the crypto price charts along with a few others like Binance Coin, Cardano, and Ripple.

Industry insiders are not worried about minor losses hitting Bitcoin.

“Bitcoin’s long-standing narrative as a store of value and inflation hedge is once again becoming prominent as dip buyers return on prospective value growth,” Indian crypto exchange CoinDCX told Gadgets 360.

Experts remain optimistic on the digital asset’s growth trajectory over the longer term.

The current global crypto market cap is $1.30 trillion (roughly Rs. 100,99,574 crore), as per CoinMarketCap. The figure was lower at $1.25 trillion (roughly Rs. 97,50,067 crore) as of May 30.

Gradual adoption of cryptocurrencies continues to see growth, irrespective of whether the daily market movements end with losses or profits.

MoneyGram, one of world’s largest money transfer platforms, is making it possible for users to send USDC stablecoin, while allowing the receiver to cash them out in fiat currencies.

The sector of CBDCs is also seeing healthy developments in different parts of the world.

The Central Bank of Russia (CBR) has also decided to hasten the development of its Digital Ruble in response to sanctions imposed on country since its invasion of Ukraine.

China, in a bid to drive the adoption of its e-CNY digital Yuan, is too gearing up for a mega token airdrop in the Shenzhen city.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

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China Plans to Airdrop $4.5 Million in e-CNY to Shenzhen Dwellers, Bids Big on CBDC

China, in a bid to drive the adoption of its e-CNY digital currency, is gearing up for a mega token airdrop in the Shenzhen city. Despite China’s reluctance on nurturing the crypto industry, it is betting big on its Central Bank Digital Currency (CBDC), that will work like crypto and facilitate instant payments, but will be issued and regulated by the central bank. A total of $4.5 million (roughly Rs. 34 crore), wrapped in e-CNY, will be airdropped in China’s Shenzhen city.

After banning all crypto-related activities in September last year, China launched the pilot of its Digital Yuan or e-CNY back in January this year. In the last five months, the world’s second largest economy has been taking measures to get more citizens to use its CBDC.

The Shenzhen Municipal Bureau of Commerce will be partnering with several banks for the distribution of the digital currency in the form of ‘red envelopes’ through a ‘lottery process’ to its residents.

“With the Dragon Boat Festival, the traditional peak season of consumption, is approaching, Shenzhen residents welcome a splendid gift package of consumption. As a part of Shenzhen’s consumption promotion policy ‘Combo Boxing’, Shenzhen will distribute 30 million yuan of digital RMB red envelopes through the Meituan platform to boost people’s livelihood consumption,” said an official press release by the Shenzhen government.

The people of Shenzen will be able to use their e-CNY tokens for the purchase of food, clothing, housing, and transportation.

The development comes a month after China’s central bank added ten cities to launch the pilot CBDC in.

“Many consumers expressed their hope to use [e-CNY] red envelopes in more online and offline consumption scenarios,” the press release noted.

In fact, just recently, Beijing’s satellite city named XiongAn New Area had launched a similar campaign to give out 50 million digital yuan as gifts to the residents.

A Reuters report said China should increase the amount they’re ‘gifting’ people via e-CNY tokens, citing economy experts.

Along with making the e-CNY a daily-payment alternative in China, President Xi Zinping’s government also aims to position e-CNY as a payment option for international transactions.

Meanwhile, China is tightening the noose around illegal crypto activities happening in its region despite strict prohibiting orders.

In February this year, the country imposed a fresh ban on raising funds using ‘virtual currency’, deeming the activity illegal.

Chinese authorities are also combing the regional geography to identify illegal crypto mining hubs. Tracing down areas with regular electricity shortages, Chinese officials have been conducting raids.

In March, a crypto mining centre was busted in China’s Guangdong Province. The facility had consumed over 90,000 kilowatts of electricity after having been operational for over 1,000 hours.

Not just cryptocurrencies, China is also closely monitoring the movement of non-fungible tokens (NFTs) in order to safeguard people from financial risks associated with digital assets.

Three organisations have come together in China to focus on NFTs. These organisations are, the China Banking Association, the China Internet Finance Association, and the Securities Association of China. The group aims to shape up the NFT sector in a way to reduce the chances of them being used as tools to process illicit activities like money laundering.


Bitcoin Being Used to Fund Retirement by Senior Citizens in the US, Says Kucoin Poll: Report

If you assumed crypto was just a young person’s game, think again. More people in the United States than ever before are turning to cryptocurrencies to help fund their retirement, it seems, even as the recent market carnage provides a stark reminder that this wild market is not for the faint-hearted.

Some 27 percent of Americans aged 18-60—around 50 million people—have owned or traded crypto in the past six months, a poll published last week by crypto exchange KuCoin found.

Yet older folk are more devoted to the young asset class than the general population, according to the survey carried out at the end of March, with 28 percent of those aged 50 and above betting on crypto as part of their early retirement plans.

Their most popular for investing in crypto were that they saw it as the future of finance, they didn’t want to miss a hot trend, and they saw it as a way to diversify their portfolios.

The market turmoil of recent weeks has hushed talk earlier in 2022 that Bitcoin and other crypto would win mainstream acceptance and be ushered into pension plans.

“If they (investors) want crypto, it should be a very small allocation of their portfolio, and they should be prepared to lose it,” said Erik Knutzen, chief investment officer for multi-asset class strategies at Neuberger Berman.

“We would not recommend it to everybody.”

Indeed Bitcoin is trading at around $30,000 (roughly Rs. 23,29,900), down 60 percent from a peak of $69,000 (roughly Rs. 53,58,900) in November. And the market meltdown means many newcomers’ investments are deeply in the red.

Nonetheless, crypto investors and analysts are watching like hawks for any indication that Bitcoin could bounce back.

JP Morgan’s Nikolaos Panigirtzoglou and his global strategy team said last week the crypto mayhem had soured investor sentiment so much that certain metrics signalled a “good entry point for long-term investors.”

Bitcoin funds, including exchange-traded funds (ETFs) saw the largest outflow since May 2021, JP Morgan said, adding that its position proxy for Chicago Mercantile Exchange Bitcoin futures was approaching oversold territory.

Using a model based on the volatility ratio of Bitcoin to gold, the team estimate “fair value” for Bitcoin at $38,000 (roughly Rs. 29,51,500).

$100K or more

The KuCoin poll comes a week after a survey of 11,000 adults by the Fed found that 12 percent of Americans dabbled in cryptocurrencies as an investment last year.

It did not break down participants by age, but found almost half of those holding crypto for an investment had an annual income of $100,000 (roughly Rs. 77,66,700) or more, while almost a third had an income under $50,000 (roughly Rs. 38,833,80).

If older investors are in the new crypto vanguard, though, has there been a rush from asset managers to meet this demand?

Fidelity Investments caused a stir in April when it announced individuals will soon be allowed to allocate part of their retirement savings in Bitcoin through their 401(k) investment plans.

“Fidelity always operates and makes decisions with the highest level of integrity and an unwavering commitment to our customers, including those saving for retirement,” a Fidelity spokesperson told Reuters.

But if anecdotal evidence from a Reuters-hosted summit of investors and asset managers in New York last week is any guide, it may have the 401k crypto market to itself for a while yet.

The general consensus was that crypto is prohibitively volatile for retirement purposes. Unless you are a sophisticated investor, such as a hedge fund, or are prepared to swallow a hefty loss, then it is best to steer clear.

© Thomson Reuters 2022

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 


Russian Central Bank to Speed Up Digital Ruble Trials Amid Pressure Due to Western Sanctions

The Central Bank of Russia (CBR) has decided to hasten the development of its Digital Ruble in response to sanctions imposed on country since its invasion of Ukraine. Under the newly released roadmap, phase two — in which the programmable, trackable digital token will be integrated, small-scale, into “real money” operations — is now slated to start in April 2023. Essentially, the monetary authority now intends to conduct transactions with the new version of national fiat in early 2023 instead of 2024 as originally planned.

The Central Bank of Russia will begin pilot tests of the Digital Ruble with real clients and with the use of smart contracts, as announced this week by the vice president of the issuing body, Olga Skorobogátova, according to EFE, citing Interfax.

“We plan to start a pilot project with real clients and real operations from April next year,” Skorobogatova told a meeting of the Association of Russian Banks. The Russian official explained that “most of the pilot banks participate with test operations.”

The pilot project also involves tests for the use of smart contracts — computer programs written in code that allow automatic compliance with the terms agreed between the parties without the need for intermediaries.

The Russian Central Bank announced a month ago that it was already testing the Digital Ruble prototype it had created with banks. The tests include the opening of digital wallets for bank customers and transfers between users.

Meanwhile, Russia’s Minister of Industry and Trade Denis Manturov earlier this month made it known that it is only a matter of time before the country decides to recognise cryptocurrency as legal means of payment. “The question is when it will happen, how it will happen and how it will be regulated. Now both the Central Bank and the government are actively engaged in this,” Manturov said while speaking at an educational event.


Brazil Launches Blockchain Network for Its Public Institutions: Here’s Why

The Brazilian government has unveiled a new blockchain network in a bid to combat corruption in public expenses by tracking them efficiently. The network was launched at an event, which was streamed on YouTube took place after a cooperation agreement was signed by the Court of Accounts of Uniam (TCU) and the Brazilian Development Bank (BNDES). The move is part of Brazil’s interest in being at the forefront of integrating blockchain technology into its public administrative system and helping improve both efficiency and traceability in the process.

As per a press release issued by TCU ahead of Monday’s launch event, the Brazilian Blockchain Network is still in development but will be used by a number of governmental institutions in an attempt to improve services provided to citizens and offer better transparency on public expenditures.

“The network, public and not-for-profit, will be national in scope and will connect participating institutions in a governance structure and technological infrastructure with the aim of facilitating the adoption of blockchain technology in solutions aimed at the public interest,” reads the release when translated from Portuguese, verbatim.

The launch of the Brazilian Blockchain Network also comes at a time when Brazil’s taxation body, the Federal Revenue of Brazil (RFB), has passed a law that will require investors to pay personal income tax when they exchange one digital currency for another.

As per a separate report by CoinGeek, the law specifies that even when digital currency transactions do not involve the Brazilian Real or any other fiat currency, any profit made from the transaction is taxable.

“The capital gain calculated on the sale of cryptocurrencies, when one is directly used in the acquisition of another, even if the acquisition cryptocurrency is not previously converted into reais or other fiat currency, is taxed by the Individual Income Tax, subject to progressive rates, in accordance with the provisions of art. 21 of Law No. 8,981, of January 20, 1995,” it reads.

However, the law will not apply to all traders. The RFB caps the reporting requirement at transactions that exceed 35,000 real (roughly Rs. 5.6 lakh). The RFB states that the declaration was made following consultations that began last year.


Shiba Inu’s Anonymous Founder ‘Riyoshi’ May Have Quit Crypto World, All Tweets Erased

Riyoshi, the anonymous founder of Shiba Inu may have decided to quit the world of cryptocurrency. In a rather encouraging farewell note, the SHIB creator who went by the pseudonym ‘Riyoshi’ announced his decision on a Medium post. While Riyoshi has previously hinted at moving on from the crypto world, speculations about this farewell note claim a scammer could be behind Riyoshi’s Medium post. For now, Riyoshi’s account @RiyoshiResearch with over 200,000 followers is visible on Twitter, but all of the posts from its page have been deleted, showing correspondence with the exit post.

“I am not important, and one day I will be gone without notice. Take the SHIBA and journey upwards frens,” Riyoshi’s Medium post published on May 30 reads.

The screenshots of this post have found their way on social media, with people warning members of the crypto community, that this could all be a fake scam.

Despite Riyoshi’s assumed exit from the crypto sphere, the working of the Shiba Inu will remain unaffected.

This was confirmed by Shytoshi Kusama, a lead developer of Shiba Inu who also claimed that even he is unaware of Riyoshi’s real identity.

“Ryoshi was, and is, one of the most successful anonymous founders of any project, ever. Though I don’t know his identity, his legacy lives on in the Shib token, Shib Ecosystem and all the projects we foresee to decentralise the world,” Kusama noted.

Despite all the noise around the future of SHIB at this point, the cryptocurrency is currently trading at $0.000012 (roughly Rs. 0.000958) as per Gadgets 360’s crypto price tracker.

On CoinMarketCap, SHIB’s ranking is 16th, with a live market cap of $6.45 billion (roughly Rs. 50,140 crore). A total of over 549 trillion SHIB coins are currently in circulation with its maximum supply undecided.

Well, if Riyoshi has really moved on from the crypto world, the decision comes at a time when Shiba Inu is working on its own metaverse.

Earlier in March, the Shiba Inu developers announced that a total of 100,595 virtual land plots will be put up for sale on its metaverse, out of which some will be remain private.

Shiba Inu is also being listed on crypto exchanges like Robinhood and Bank of America crypto ATMs, which may boost its adoption.

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Prada Gears Up for New ‘TimeCapsule’ Collection With NFT Twist

Joining the list of luxury brands venturing into the Web3 space, Italian fashion label Prada is gearing up to take its next step into the NFT arena. The 109-year-old designer brand will be launching 100 non-fungible tokens (NFTs), or digital collectibles, to go along with their physical merch purchase from the new ‘Timecapsule’ collection. These NFTs will be based on the Ethereum blockchain, which is a popular choice to back these virtual assets. Both, the Timecapsule collection as well as these NFTs will be released later this week.

Prada’s new collection features unisex button-down shirts in black and white colours. These shirts have been designed in collaboration with artist Cassius Hirst, the son of UK’s veteran millionaire artist, Damien Hirst.

The NFTs that will correspond with the purchase of these gender-neutral shirts, will be GIFs of a black or white pill capsule. Each NFT will carry a number associated with each physical shirt. Prada will airdrop these NFTs to eligible receivers.

The high-end fashion mammoth shared glimpses of its NFTs with its 1.6 million followers on Twitter.

The Aura Blockchain Consortium is backing the NFR drop by Prada.

This non-profit blockchain, headquartered in Switzerland, is designed by three luxury brands — LVMH (Louis Vuitton parent), Prada, and Cartier.

This is not Prada’s first time into the NFT space.

In January this year, it partnered with sportswear brand adidas to release the “adidas for Prada re-source” collection on the Polygon blockchain.

“adidas and Prada reward holders of adidas Originals Into the Metaverse NFTs and bridge the gap for a new community of creators to join the innovative world of Web3,” the shoe brand had said in a statement at the time.

Lately, several luxury labels have been foraying into the digital assets category.

In recent months, Swiss luxury watchmaker Tag Heuer and Gucci started accepting crypto payments for their lavishly expensive products.

Earlier last week, French high-end fashion brand Balenciaga also enabled customers to purchase its products in Bitcoin and Ether.


MoneyGram Teams With Steller Blockchain to Facilitate Remittance Transactions in USDC Stablecoin

MoneyGram is making it possible for users to send USDCs stablecoin and the receiver can cash them out in fiat currencies. Steller blockchain has been partnered to facilitate these transactions. Headquartered in Dallas, US, MoneyGram offers online and in-person domestic and international money transfer as well as bill payment services. It has been in the finance industry for over 42 years. Its CEO Alex Holmes recently voiced his predictions on the future of the crypto sector.

The digital assets industry saw the year’s second-largest outflow as investors pulled out some $141 million (roughly Rs. 1,109 crore) from the industry last week following Terra’s recent crash.

Despite the present shaky market situation, Holmes believes that the virtual assets industry is here to stay.

“It is here to stay and it’s going to be here for a long time despite recent selloffs and volatility,” Bloomberg quoted Holmes as saying.

As part of its services, MoneyGram is now allowing users to conduct remittance transactions in USD Coin (USDC).

A remittance is a non-commercial money transfer initiated by a foreign worker, a member of a diaspora community, or a person with ties abroad to support the household income of their families in their home countries.

Several regions like El Salvador, that legalised Bitcoin last year, and Tonga, among others rely on these remittances to oil their economies.

Usually, money transfer services such as Western Union cut a substantial amount from the total fund as service fee. This reduces the money that is reaching these dependent countries via its diaspora working abroad.

USD Coin has been chosen as MoneyGram to facilitate quick and cheap transactions of remittances.

Pegged against the US dollar, the current value of the USDC stands at $1.05 (roughly Rs. 82) as per Gadgets 360’s crypto-price tracker.

“If a country like El Salvador is going to make Bitcoin seamless with US dollars in country, I think that consumers, through MoneyGram, should be able to transfer Bitcoin to El Salvador or transfer dollars and convert them to Bitcoin. If that’s where the world is going, let’s participate in that world, and let’s see how we can help fulfil that opportunity,” Holmes reportedly added.

Meanwhile, the Stellar blockchain, founded in 2014 is an open-source decentralised protocol, capable of low-cost transfers of digital currencies to fiat. This allows cross-border transactions.


Bitcoin Bulls Ensure Climb to $31,600 Territory as Altcoins Aim to End May on a High

Crypto bulls went to work to begin the week after Bitcoin closed a record ninth week in the red on Sunday. In line with stock market movements in Europe and Asia, Bitcoin and a host of popular altcoins enjoyed sharp spikes in value after China said it will ease Covid curbs. The price of the largest cryptocurrency by market capitalisation rallied by close to 5 percent through Monday with figures holding up strong on early Tuesday too. In numerical terms, BTC is currently around the $31,600 (roughly Rs. 24.5 lakh) mark across global exchanges while Indian exchange CoinSwitch Kuber values Bitcoin at $33,269 (roughly Rs. 26 lakh), up by 4.79 percent in the past 24 hours.

On global exchanges like CoinMarketCap, Coinbase, and Binance the price of Bitcoin stands at $31,651 (roughly Rs. 24.5 lakh) up by 4.51 percent in value over the past 24 hours. As per CoinGecko data, BTC’s value has already moved way higher than where it stood last week, up 8.7 percent week-to-day.

While Bitcoin has held up well over the course of a difficult month, Ether hasn’t been holding up too well. That said, the second most popular cryptocurrency has begun the week on a strong footing. At the time of publishing, Ether is valued at $2,084 (roughly Rs. 1.6 lakh) on CoinSwitch Kuber while values on global exchanges see the crypto’s value at $1,983 (roughly Rs. 1.5 lakh), where the cryptocurrency has moved up by 5.85 percent over the past 24 hours.

Ether’s strong showing over the past 24 hours means that the cryptocurrency’s value has moved up 0.6 percent over last week’s value, as per CoinGecko data.

Gadgets 360’s cryptocurrency price tracker reveals a sight of green for most of the better-known altcoins — as the global crypto market capitalisation moved up by 4.26 percent in the last 24 hours. Cardano, Polygon, Litecoin, Uniswap, and Chainlink were among the bigger gainers, while metaverse tokens like Decentraland did fairly well too.

Memecoins Shiba Inu and Dogecoin saw little movement although DOGE fared better. Dogecoin is currently valued at $0.09 (roughly Rs. 7.5) after gaining 1.69 percent in value over the last 24 hours, while, Shiba Inu is valued at $0.000013 (roughly Rs. 0.000971), down by 0.21 percent over the past day.

Meanwhile, the Indian government has stated that it will soon finalise a consultation paper on cryptocurrencies with inputs from various stakeholders and institutions, including the World Bank and the IMF, Economic Affairs Secretary Ajay Seth said on Monday. He also underlined the need for a global response to deal with issues concerning cryptocurrencies as these operate in the virtual world. The Reserve Bank of India (RBI) on many occasions has expressed its reservation about such virtual currencies citing a threat to macroeconomic stability.

Speaking on the sidelines of the curtain raiser event of ‘Iconic Week’ as part of Azadi Ka Amrit Mahotsav to be celebrated by the Finance Ministry, Seth said the consultation paper is fairly ready.

“We have consulted not just the domestic institutional stakeholders but also organisations like the World Bank and the IMF. So, we hope that we will soon be in a position to finalise our consultation paper,” he said.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.