Another Day in Crypto #9

Curating some crypto content from around the web.

Hello everyone,

Hope you’re doing well and thank you for all the love!

As always - this is most definitely Not Financial Advice.

Now, let’s look at some interesting stuff from today.


Well, you know what they say - another day, another 100M Dollar hack somewhere.

This time - Harmony.

CryptoCondom @crypto_condom

👀

Harmony 💙 @harmonyprotocol

1/ The Harmony team has identified a theft occurring this morning on the Horizon bridge amounting to approx. $100MM. We have begun working with national authorities and forensic specialists to identify the culprit and retrieve the stolen funds. More 🧵

Harmony 💙 @harmonyprotocol

1/ The Harmony team has identified a theft occurring this morning on the Horizon bridge amounting to approx. $100MM. We have begun working with national authorities and forensic specialists to identify the culprit and retrieve the stolen funds. More 🧵

Bridges definitely seem like a specific target for hackers.

Others were also quick to respond to the news.

Let’s start with ChainLinkGod.eth:

ChainLinkGod.eth @ChainLinkGod

Another day, another crypto system catastrophically failing and causing 9 figures in user losses 🫠

ChainLinkGod.eth @ChainLinkGod

The size and frequency of bridge exploits doesn’t seem to be decreasing or slowing down, quite the opposite The Achilles heel of sovereign blockchains; the rotting wooden bridge between them other chain clusters Chainlink CCIP needed now more than ever to save the day

Harmony 💙 @harmonyprotocol

1/ The Harmony team has identified a theft occurring this morning on the Horizon bridge amounting to approx. $100MM. We have begun working with national authorities and forensic specialists to identify the culprit and retrieve the stolen funds. More 🧵

BrendanEich had a very interesting response on the Harmony announcement thread:

BrendanEich @BrendanEich

@ChrisBlec @harmonyprotocol @_apedev called it on April 1st.

Ape Dev @_apedev

Since the current narative du-jour is bridges & bridge hacks, I wanted to do some digging on the harmony bridge on Ethereum which secures ~$330m worth of tokens.

Ape Dev @_apedev

Since the current narative du-jour is bridges & bridge hacks, I wanted to do some digging on the harmony bridge on Ethereum which secures ~$330m worth of tokens.

Chainlink Red Pill 2.0 CCIP @ChainlinkP

#Chainlink's Cross Chain Interoperability Protocol (#CCIP) can't come fast enough. Soon™.

Harmony 💙 @harmonyprotocol

1/ The Harmony team has identified a theft occurring this morning on the Horizon bridge amounting to approx. $100MM. We have begun working with national authorities and forensic specialists to identify the culprit and retrieve the stolen funds. More 🧵

As always, some are more blunt than others.

USDCBULL1 @usdcbull1

Harmony ONE? More like Harmony ZERO

The Stable / Buck is indeed ferocious.

He didn’t stop there:

USDCBULL1 @usdcbull1

Can't believe a chain that had "DeFi Kingdoms" as their most serious dapp could have something like this happen!!!! What will be the contagion!?!?!? How many firms will go insolvent because of this?!?!?!!?

As you can probably already tell - I’m mostly focused on the Ethereum ecosystem, as I see it as the most complete settlement layer and the base for the new internet (like sassal.eth described it on The Daily Gwei from today) which is rising, definitely from how I’m using everything related to web3 and crypto.

Sassal had a very interesting recap of his opinions on the dYdX move to their own chain on Cosmos.

A lot of extra discussions rose about that subject today. Here’s some of them.

Thyborg @Thyborg_

Yesterday @dYdX announced their decision to spin up their own chain using the Cosmos SDK, which immediately made the #Cosmos hashtag trending on Twitter everywhere In this thread, I cover what is DyDx, their decision and the massive impact for both Cosmos & Ethereum roll-ups 🧵

alephv.eth @alpeh_v

DyDx moving to cosmos reflects far more negatively on starkware as a service provider than eth rollups tbh.

CryptoCondom @crypto_condom

@DefiDrew @StarkWareLtd Im not sure where you get the idea $ETH's L2 vision heavily wounded. There is no 2nd best to $ETH security. L2s are more secure with greater decentralization than $ATOM. They're moving bc they refuse to revenue share & $DYDX as a gas token at least gives it MINOR value.

Alex G. @gluk64

This is a humbling moment for Ethereum and rollups. We're taking too many shortcuts and not moving fast enough towards our vision. @dYdX has no decentralized L2 alternative as of today. This is a justified decision, but not for long. L1 model is unsustainable. Here is why: 🧵1/

Antonio | dYdX @AntonioMJuliano

Product means the best possible combination of: - UX - Features - Decentralization - Security

Other interesting tweets I found referred to a subject I definitely believe is one of the most important for users - self custody.

Recommend you go through this thread by FatMan:

FatMan @FatManTerra

🧵 Su Zhu is now back in Singapore working with a law firm specializing in white collar crime. He really doesn't want to go to prison, and creditors are after him. But how did he get to this point? Where did 3AC go wrong, and what should you do next?

FatMan @FatManTerra

In the face of this knowledge, what should you do? There is one crucial, actionable piece of advice. Pull all of your money out of centralized yield services like BlockFi, Voyager, and Nexo for the time being. It is not worth the risk. Withdraw it all into your Ledger. (10/14)

FatMan @FatManTerra

There is no reason to have money in these services right now, because their long-term viability is uncertain and you are gambling on solvency. You will potentially give up 0.5% in yield (or less, once they reduce rates), but you lower your risk massively. (13/14)

FatMan definitely has a strong opinion on this issue:

FatMan @FatManTerra

So - and I can't stress this enough - bring all of your coins into self-custody until yields stabilize and the situation is clear. This is a wise risk-adjusted decision given the scenario, and you can always come back later. Stay safe & stay vigilant! (14/14)

BowTiedBull share this view as well -

BowTiedBull - Read Pinned Tweet or NGMI @BowTiedBull

If you have any significant amount of crypto held in any exchange (Coin, Kraken etc) or any levered up scam like Voyager, Cel, BlockFi etc You have to take every cent out. If you don't get this please don't follow this account. Warnings have been issued here for well over a year

Let’s end with this - DeFi Dave (¤, ¤) is inviting everyone to the Fraximalist Meetup at NFT NYC:

DeFi Dave (¤, ¤) @davesaidthat_

Attention all stablecoin enjooyers at NFT NYC 🚨 Come thru the Fraximalist Meetup tomorrow 6/23 at noon in Madison Square Park. Be there or be depegged. lu.ma/fraxnyc

lu.maNYC Fraximalist MeetupFraximalists, stablecoin enjoooyers, and everyone in between, come by and chill.

Thanks for reading everyone, have a great day!