An un-Harmonious proposalHarmony proposes minting a load of ONE tokens to cover the loss of the Horizon Bridge hack in June… and people aren’t best pleased.
- Harmony proposed on Wednesday to mint almost 5bn worth of tokens to cover the $100m lost across 65k wallets in its Horizon Bridge hack in June. The proposal offers two solutions that are spread over a three-year period: mint 4.97bn ONE tokens at a rate of 138m tokens per month, or have a 50% reimbursement of 2.48bn ONE tokens at a rate of 69m tokens per month.
- The proposal received so much backlash Harmony did a quick U-turn. By minting a plethora of ONE to repay those who had lost tokens was seen by many as an inflationary measure in which the tokens would lose value on the basis of supply/demand laws. And so Harmony founder Stephen Tse responded on Thursday morning, “Your concerns are understood and we are returning to the drawing board.”
- ONE is down a colossal 92% YTD, currently trading at just $0.02 after reaching an all-time high in October last year of $0.38. Its Horizon Bridge is designed to oversee token and NFT transfers between Harmony and Ethereum and Binance’s chains. The hackers in June managed to exploit it through what appears to be a multi-signature attack that required just two of four signatures to drain funds.
the Bialons / Unsplash
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A bridge too farAfter hackers looted $100m worth of crypto from Harmony’s bridge, the crypto protocol is now offering a bounty to those behind the attack.
- Harmony is offering a $1m bounty on $100m worth of crypto stolen from its ‘Horizon Bridge’ – another bridge attack in which trolls (hackers), waiting in the lurk, siphon tokens during their travel from one blockchain to another.
- The bounty doesn’t seem to have worked, however. The hacker’s wallet has already been sending 100 ETH in frequent transactions to TornadoCash, ignoring Harmony’s forgive-and-forget offer and decision to get the FBI involved.
- Harmony’s native token ONE took a 14.2% hit last week, but has since stabilized this week to fall only a further 4%. This latest attack now brings the total lost to blockchain bridge attacks to $1bn in 2022 alone. Wowza.
Alt coins go mainstreamThese smaller altcoins are joining the cool kids table as De-Fi becomes the new “It Girl”.
- The “FOAN trade” is the market’s new plaything. It’s a basket of cryptos including Fantom (FTMUSD), Harmony (ONEUSD), Cosmos (ATOM) and Near (NEARUSD), all of which are up between 16% and 35% this week so far despite (or because of?) a sell-off in major cryptos.
- It’s thanks to the rapid growth of De-Fi and a resurgence in undervalued Ethereum Layer 1 blockchains inspired by the success of Solana (SOLUSD), Avalanche (AVAXUSD) and Terra (LUNAUSD).
- They can all boast cheap and fast networks, and have been undergoing network upgrades in the past few months to set the perfect stage for De-Fi dominance.
Illustration by TradingView
Crypto choir finds its HarmonyHarmony One is hitting the perfect pitch after its blockchain gets more advanced.
- The token soared almost 15% on Tuesday. A new update on Monday means the blockchain can now accommodate over 4x as much user activity.
- Data can be easily moved across separate blockchains through Harmony's network, and this update should ultimately increase speed and boost the crypto’s utility.
- It announced a $300m ecosystem development fund on September 9 to attract developers to its ecosystem. Prices are up over 130% since then.