Solana hack post-mortemSolana-based hot wallet owners have finally been given some answers as to how a hacker swiftly swiped all their precious crypto earlier this week.
- More than 8k hot wallets were drained of around $8m earlier this week when Solana-based hot wallets like Phantom and Slope were targeted by a hacker. It was a massive blow to the blockchain, which already has a sketchy security rep, but lucky for SOL it doesn't seem to have been all on them.
- Slope wallets is taking the blame for the exploit. An investigation by developers, security auditors found that Slope’s “egregiously bad” security practices were the cause, with security company Otter revealing that the company was sending users’ seed phrases (which are like a key) to a centralized server without any kind of encryption – so like catnip to hackers.
- You’d think a company that specializes in crypto wallets would know that encrypting key info is like basic safety – in fact, some are even questioning whether not doing so could be criminal negligence. Slope hasn’t confirmed all this yet but it’s looking likely, and the standout message here is to stay vigilant no matter the promises made by your custodian.
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Hackers get their hands on SOLTwitter was aflutter with tension on Tuesday as Solana-based hot wallet holders watched a multi-million dollar exploit take place on the blockchain.
- Around $8m has been drained from an estimated 8k wallets after a widespread exploit on the Solana blockchain took place late on Tuesday. The funds were taken in SOL (and other SOL-based tokens) and USDC, affecting a wide range of hot wallets like Phantom and Slope, and sending the price of SOL down 7% in a few hours.
- It’s not yet clear what exactly happened here, but many signs are pointing to a supply chain attack, which essentially means the malicious actor was able to somehow obtain the ability to sign in, initiate, and approve transactions on behalf of the hacked users – so people are thinking a trusted third-party service may have been compromised.
- This will surely revive the long-running debate on the security of hot wallets, which stay connected to the internet at all times to make transactions more convenient. In contrast, cold wallets are seen as more secure bc your drive will need to be plugged into a computer to authorize transactions. Internet sleuths and the Solana team are investigating the attack, so more details are prolly to come.
Smells like hacker spiritA DeFi project running on Solana gets exploited, sending its stablecoin down, down, down.
- Nirvana Finance was exploited for $3.5m on Friday after hacker(s) orchestrated a flash loan attack. The adaptive yield protocol saw its native token ANA tank over 80%, while its algorithmic stablecoin NIRV collapsed under the pressure to fall as low as $0.05.
- The hackers loaned $10m in USDC from the lender Solend, using it artificially hike the price of ANA. With the price up to $24 from $8, a butt-load of the inflated ANA was minted and swapped for 3.5m USDT – paid out by Nirvana’s Treasury wallet. After being basically tricked that the sudden injection of funds wasn’t malicious, its entire liquidity pool was drained and the total value locked on the protocol fell to $0.07.
- Nirvana have put out a $300k bounty, but it’s all gone ominously quiet, with the funds off the blockchain and converted into DAI on Ethereum. Investors will be shocked by the unraveling, but it’s not the first time DeFi has seen this sort of attack: back in April, Beanstalk had $182m siphoned off its books due to flash loans.
ActionVance / Unsplash
The SEC’s ears are prickingThe SEC might soon be beefing with yet another blockchain brand after one investor blew his “unregistered security” whistle.
- Solana Labs has been accused of offering an “unregistered security” in the form of its native SOL token after a team of retail investors filed a class action suit against the firm and its key players, as well as accusing crypto VC firm Multicoin Capital of “relentlessly” promoting the coin in spite of its technical issues.
- They claim the company’s leaders have illegally profited from selling the token at the expense of the retail traders that bought in, and that the way it's created and sold meets the three requirements of a security. Neither firm has responded yet to the claims.
- The “unregistered security” argument is an old one. Ripple Labs has been embroiled in a fight with the SEC since 2020 over similar accusations regarding its XRP token, and if the many twists and turns in that case tell us anything, it’s that there’s no telling who could come out on top – though it’ll be a big deal for the whole industry either way.
Solana causes a stirHold the phone, cause Solana’s on a relief rally after a new development from its team creates chatter in the cryptoverse.
- Prices soared over 9% on Friday to build on their 11% gains on Thursday, with the token enjoying its best week since the end of March – though it’s far from recovered from the 10 weeks of misery it has had since then. The surge came on the back of a new mobile platform release on Thursday, but that’s not all…
- Solana has unveiled its very own crypto smartphone, which is dubbed the Solana Saga. The announcement elicited a mixed range of reactions from the crypto community, with some even calling the company the “Apple of Web3” and saying that Solana is becoming an even more formidable rival to Ethereum.
- But others couldn’t help voice their concern that Solana needs to get its house in order before taking on something like this. The network has had over six outages this year, contributing to recent price declines, and Cardano co-founder Charles Hoskinson even poked fun at the new feature and implied it would suffer similar interruptions. Do you think this is the start of a new era for Web3?
The storming of the Solend PalaceSolana lending platform Solend seizes control of a whale wallet due “extremely large” vulnerable margin positions, only to reverse the decision hours later.
- A governance vote on Solend to take control of a whale’s wallet was approved on Sunday, allowing the lending service to liquidate vulnerable margin positions over-the-counter (OTC). While Solend justified the emergency intervention as a way to mitigate the danger of a DeFi implosion, backlash was deft and cutting: did this undermine the entire purpose of decentralization?
- In a second vote, however, 99.8% of users approved a U-turn, leaving Solend in somewhat of a PR disaster and stuck with a highly-risky wallet on its blockchain. The wallet in question has deposited 95% of Solend’s entire SOL pool worth $20m and takes up 88% of USDC borrowings. Unfortunately for Solend, if Solana was ever to drop to $22.30, it would have to liquidate 20% of the whale’s collateral, potentially sparking a liquidation cascade.
- SOL closed Sunday at a price of $34.14, so the liquidation trigger is currently being kept at arm’s length. However, as Bitcoin dropped beneath its 2017 all-time high of $19.6k over the weekend, and the panic of DeFi lending platforms continues to curdle in the stomach of crypto, Solana fans will be hoping for the markets to take a chill pill for a sec.
Ussama Azam / Unsplash
Solana’s need for solitude?Solana decides it wants to spend some time alone again, halting its blockchain to fix a bug that hit its network.
- Solana went offline on Wednesday, this time for over four hours as a bug in its transaction system forced the blockchain to halt. Not only was this obvs a big concern to SOL fans, it also meant peeps were unable to buy SOL-based NFTs – overall sales on Solana plummeted 61% thanks to the hiccup.
- So, what happened? Apparently, something called a “durable nonce instruction” fell victim to a bug that caused nodes to generate different outputs – resulting in the blockchain not being able to continue till it was fixed.
- SOL fell over 12% thanks to the outage – which can’t come to investors as a completely out-of-the-blue surprise given this is certainly not the first time the network has gone down. It also went offline on May 1st, which makes one wonder… what’s gonna happen on July 1st?
Illustration by TradingView
A new NFT paradise?Solana’s NFT marketplace Magic Eden climbs the apple and pears (stairs), taking on Ethereum’s OpenSea.
- Magic Eden is killing it rn, boasting 2m weekly transactions in comparison to OpenSea’s 340k. While Magic Eden’s volume was around $60m short of OpenSea’s last week, the gulf in transactions between the two reflects Solana’s cost-effectiveness for casual users looking to buy an NFT here and there.
- No, it’s not a trick spread by a serpent, Solana really does have super cheap transaction fees. SOL’s gas prices usually cost no more than a cent, while Ethereum’s come in at an average of $10. However, ETH will be sorting that out with its upcoming shift to a proof-of-stake model.
- What’s Solana up to these days? After Terra bit the apple and got expelled from the DeFi tokens, SOL will be hoping to take some of the limelight LUNA stole. However, it suffered its sixth straight weekly close in the red on Sunday, down a whopping 60% in that time. It’s still trending at #9 in the rankings, though, so no divine intervention is needed just yet.
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Solana’s Saturday night blackoutRoses are red, violets are blue. Solana's down again? Tell us something new.
- Solana’s network had an outage for seven hours on Saturday after an onslaught of bots broke its NFT minting program Candy Machine. The bots caused a mega spike in volume, making 4m transactions in a short space of time – resulting in 100GB of data being pumped through the network. Solana eventually cracked under the pressure, spending Saturday night in the dark.
- It’s the seventh time this year the crypto has suffered a blackout. Solana went down for 18 hours in January, beating its former record of 17 hours in September last year. These outages have proven particularly bad for investors wanting to buy or sell tokens on the blockchain, with many missing key price moves due to the downtime.
- A charge of 0.01 SOL ($0.89) will now be made for invalid transactions. Candy Machine’s operator Metaplex said the charge will aim to curb crazy traffic by flagging up wallets run by mint-greedy bots. Sounds like pest control to us. And it’s needed – these bots would prolly auction themselves as an NFT on OpenSea if they could.
Kelly Sikkema / Unsplash
Solana outscores EthereumThis week on NFT wars: Solana racks up $18m in Okay Bear sales, stealing the limelight from Ethereum-based NFT projects.
- Last week it was Moonbirds on Ethereum, this week it’s Okay Bears on Solana. Okay Bears launched on Tuesday through Solana’s NFT marketplace Magic Eden. Around 10k avatars were available at a mint price of 1.5 SOL per NFT. That’s only $145 – a lot cheaper than the $7k it cost to mint an ETH Moonbird.
- By Wednesday it was the most traded NFT on OpenSea. The bears have already got their paws on $18m worth of sales, with the average floor price of an Okay Bear NFT now worth 60 SOL (roughly $6k).
- SOL gained 2.7% on Wednesday but was pipped by ETH, which narrowly beat its rival to finish up nearly 3%. The token has been clawed down 28% since its rejection at the $140 resistance level at the start of April.
Michael Förtsch / Unsplash
Solana wants the NFT crownCatch me if you can: Solana is off to the NFT races, sprinting past the big $1.5bn milestone in sales.
- Solana has surpassed a hefty $1.5bn in NFT sales, putting some space between itself and its competitors AVAX and MATIC. Sales volume was boosted of late by Coinbase’s decision to add support for Solana and its SPL tokens via its wallet’s desktop extension.
- It currently sits third in the NFT race with over 2.5m total transactions. It is only pipped by market leader Ethereum and Ronin. The Axie Infinity chaos (aka the biggest crypto hack in history), however, saw the Ronin Network lose a grizzly sum of $625m, so SOL might be breathing down its neck to claim that second spot.
- SOL may need to get its ducks in order first, tho. The token slumped 4% on Tuesday, following an equally red day on Monday. There’s been pretty positive news of late, including a listing on OpenSea, but it may be a marathon rather than a sprint to trade above $150 again.
Lians Jadan / Unsplash
Solana rides the NFT waveSolana thinks it's better down where it's wetter, after entering the OpenSea NFT marketplace after months of rumors.
🔍 Key points:
- The token surged 10% on Monday, before ebbing back to close the day a modest 5% up. Solana’s non-fungibles are already traded on Magic Eden (currently the leading marketplace for Solana NFTs), but OpenSea offers a lot more fish to nibble on the network.
- OpenSea is the biggest NFT marketplace in town, with over $1.6m in ETH sales in March alone. Solana will become a viable alternative on the platform, given its more energy-efficient transactions and cheaper prices compared to Ethereum. This latest addition makes it the fourth blockchain to launch after Polygon and Katlyn.
- The marketplace has been teasing an April launch, but we all know things don’t necessarily happen on schedule in the cryptoverse. Solana’s been dubbed as another ‘Ethereum killer’, and according to CryptoSlam, it’s right behind Ethereum in all-time NFT sales – should Vitalik be watching over his shoulder?
Illustration by TradingView
A stablecoin loses stabilityInvestors are feeling unsteady after a Solana stablecoin protocol fails to live up to the “stable” part of its name, after a hacker hits the network.
🔍 Key points:
- The Cashio stablecoin project has been looted for an estimated $28m after a hacker exploited an “infinite mint glitch” in the Solana-based stablecoin project, and users were warned to get their money out ASAP.
- Cashio’s dollar-pegged stablecoin CASH fell from $1 to $0.00005 in a matter of minutes after the glitch let hackers mint a bunch of tokens without providing any collateral, essentially wiping out their value.
- This isn’t the first time an infinite mint glitch derailed a stablecoin project. Last year, attackers stole over $250k worth of stablecoins from the SafeDollar liquidity pool and drove its price down to zero. No wonder Biden is considering clamping down on the industry.
Bitgert bounds ahead of other altcoinsThere’s a new altcoin in town atm, and its zero-gas-fee platform is causing interest in the token to spike big time.
- A new blockchain platform called Bitgert has been taking the market by storm, and it’s fighting mainstream protocols for public interest rn – overtaking Binance Coin (BNBUSD) and Polkadot (DOTUSD) on Google Trends in the last 24 hours.
- There are a couple of things sending prices soaring. The token started building momentum thanks to a listing on exchange Gate.io, opening the doors to more DEX listings. Things really took off after the launch of the BRC20 blockchain last week, which offers a zero-gas-fee blockchain.
- Some users are constantly on the hunt for lower gas fees, which is largely to thank for the rise of Layer 1 blockchains like Solana, so a zero-fee platform is a real attraction. Its native token is up over 70% in the week since the release, and Analytics Insight thinks it could take over Shiba Inu's (SHIBUSD) market cap within a year.
Illustration by TradingView
Solana announces stablecoin payment serviceSolana thinks it’s solved crypto’s payments problems with its new service, despite all its recent network drama.
- Prices hopped up nearly 11% on Tuesday for their best day since December 21, now up 18% so far this week.
- It’s launched Solana Pay, which will focus on letting people send stablecoins from their crypto wallets directly into merchants’ accounts with very low transaction fees.
- Crypto payments have disappointed the market so far. Solana isn’t the first to give it a go, while those who have struggled with high transaction fees and slow speeds. Solana has its own set of issues with network instability though, so only time will tell if it's truly solved the crypto payments puzzle.
Coinbase sends Solana soaringSolana proves The Coinbase Effect is still in full swing (for now).
- The token regained its $100 price tag on Monday after jumping 15% in 12 hours and closing up nearly 7%, though prices still ended January with losses of over 41%.
- Coinbase (COIN) listed two tokens that are built on the Solana ecosystem, marking the first time that the exchange has listed non-Ethereum based tokens and gaining back some faith for the Solana network after its recent outages.
- A Coinbase listing once elicited average gains of 91% for tokens, but as CEO Brian Armstrong works towards listing every legal asset, could more tokens mean less Coinbase Effect?
Mondays, amirite?Solana is suffering a moody Monday after its network endures yet another bout of instability.
- The token is down 17% in early Monday morning trading after leading the crypto losses last week with declines of 36% – it’s down nearly 70% from its November highs.
- People were complaining about network instability over the weekend after noticing duplicate transactions and major network congestion amid a broader crypto market sell-off.
- It’s not the first time it’s received complaints about unreliability on the network, and doubters are wondering if Solana has what it takes to make it in the big leagues.
Can Solana convince the non-(fungible)believers?Leading global esports club G2 Esports is basing a new NFT gaming community on Solana, but it seems sports fans aren’t yet sold on the whole digital asset thing… yet.
- The brand is dropping a line of Solana-based NFTs, following in the footsteps of esports club TSM and its $210m naming rights deal with crypto exchange FTX.
- But it looks like fans aren't convinced they’re on the right team, crying out against the negative environmental impacts and the growing list of scams and rug pulls in the crypto community.
- They’re not wrong on the scams front, but that doesn’t seem to be stopping others – NFT marketplace OpenSea has seen nearly $2.7bn in volume this month alone, and is on track for its biggest month ever.
David Spiers / Unsplash
Will Solana shine the brightest?Bank of America thinks the sun is only starting to rise on Solana’s success, and prices sparkle under the praise.
- The crypto blazed ahead by 8% on Wednesday, making up for the 20% it lost last week for its worst seven-day performance since May.
- BofA thinks it’ll become the “Visa of Crypto”, arguing that Solana is set to steal some of Ethereum’s market share thanks to its scalability, low transaction fees, and ease of use.
- It’ll need to put shades on to block out the haters. Some analysts argue that its unreliable network will get in the way, and think “the real pain is yet to come” for outperforming altcoins.
Reports of another network shutdownSolana is flying close to the sun as it heads into 2022, but another network incident could leave it with a few scorch marks.
- The Solana network apparently went down for a few hours on Tuesday, its third network incident in less than six months.
- It’s not me, it’s you. People are starting to wonder if the network itself is unstable, with one inflamed Reddit user calling its vulnerability and frequent outages “a death knell for serious traders”. Yikes.
- The bulls still outweigh the bears. Analysts see an upside of up to 200% for the token in 2022 as Layer 2 solutions continue to grow.
Illustration by TradingView