3 February

The popular bridge for connecting Ethereum, Solana and more is now attempting to negotiate on-chain with the hacker. The Wormhole team has reached out to the exploiter’s address on the Ethereum network, offering a $10 million bounty for returning the funds.

The hack has raised alarm in DeFi circles because it now means ETH that has been bridged to Solana may be unbacked. Cross-blockchain bridges often work by taking an asset, such as ETH, and locking it in a contract to issue a parallel asset on the bridged chain.

George Harrap, founder of Solana DeFi platform Step Finance, said he expects Jump Capital, which purchased Wormhole developer Certus One in August 2021, to step in to backstop the hacked ETH. If not, he added, a number of Solana-based platforms that accept ETH as collateral may now be partially insolvent.

If nobody backs it and the coins are truly gone then Wormhole ETH is worth 0 and everyone who has a balance of it becomes worthless.

In a follow-up tweet, Wormhole confirmed a total loss of 120,000 ETH and said that funds would be added to the bridge to backstop the wrapped ETH on Solana, though the team did not specify who would provide the funds.

Presciently, in a Reddit post in January, Ethereum co-founder Vitalik Buterin argued that bridges will not be popular in the future, due in part to risks to the backing of bridged assets.”

See Also: Hackers Move $3.55B Worth of Bitcoin From 2016 Bitfinex Hack
See Also: New malware targets MetaMask and 40 other crypto wallets

Sundar Pichai, the CEO of Alphabet, said there are several “areas of interest” for Alphabet, hinting at augmented reality and exploring how blockchain technology may be utilized to power computing and service layers like YouTube and Google Maps.

Any time there is innovation, I find it exciting, and I think it is something we want to support the best we can […] The Web has always evolved, and it’s going to continue to evolve, and as Google, we have benefited tremendously from open-source technologies, so we do plan to contribute there.”

“Bitcoin prices have plunged alongside stocks as the Fed moves to reverse nearly two years of emergency monetary stimulus. But some top crypto analysts argue that Fed Chair Jerome Powell and his colleagues may quickly back off from their new campaign to tighten monetary policy – due to worries that traditional markets, the banking system and the real economy can’t handle the higher borrowing costs.

I anticipate that we are to see some slowdown in the pace of Fed monetary-policy tightening. If there’s some cracks in the economy and the Fed goes slower, that is going to provide a spark for bitcoin.”

See Also: $1B worth of ETH burned in the past 30 days due to record high OpenSea NFT transactions
See Also: Crypto Prices Plunge Late After Weak Meta Earnings

Institutions now make up 50% of Coinbase’s business, up from 10% three years ago.

There has been an “avalanche of hedge funds” entering the bitcoin space over the past year.

A far more recent emerging theme, he said, is retailers interested in non-fungible tokens (NFT). This may lead these companies into holding bitcoin in their treasuries, once they are comfortable with the concept, and then accept customer payments in crypto. Tejpaul also noted institutions are getting comfortable holding stablecoins, from roughly $10 billion three years ago to $150 billion today.”

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See Also: NYDIG Launches Service for Workers to Get Paid in Bitcoin

Today, 68-year-old magazine Sports Illustrated announced an alliance with NFT startup OneOf to launch a sports NFT series on Polygon, with an initial lineup of nine sports icons including Muhammad Ali, Wayne Gretzky, and Mia Hamm.

OneOf plans to launch the platform later this month following Super Bowl LVI on February 13, with its first drop featuring NFL veterans Emmitt Smith, Jerry Rice, and Dick Butkus.”

See Also: Digital Artist Pak and Julian Assange Launch Ethereum NFT Collection
See Also: Coachella Music Festival to Launch Solana NFTs in Deal With FTX

“MetaMask currently has 21 million monthly active users, but the acquisition would bring the wallet to more platforms and deepen its integrations as it is currently offered only through mobile apps and web browser extensions. MyCrypto offers its Ethereum account management solutions through browsers and desktop applications.

With our talents combined, and our strong sense of shared ethics and goals for this ecosystem, I think we’ll be able to provide a wallet experience that is much more able to help its users make the best decisions through this rapidly evolving Web 3 wallet landscape.”

Grayscale has launched the first equity exchange-traded fund (ETF) tracking the Bloomberg Grayscale Future of Finance (BGFOF) index. With the launch of its first equity ETF, Grayscale is now broadening its product range away from strictly cryptocurrency investing and giving investors exposure to mainstream markets.

The index, which can include payments, exchange, asset management, hardware, blockchain/tech and mining companies, is rebalanced every quarter. The list of companies includes Silvergate Capital (SI), PayPal (PYPL), Coinbase Global (COIN), Block (SQ), Robinhood Markets (HOOD), Argo Blockchain PLC (ARB) and more.”

See Also: SEC Asks Bitwise to Address Concerns About Proposed Spot Bitcoin ETF

A Bloomberg report noted that Russians own about 12% of the total global crypto holdings. The estimates are believed to be on the lower side, given that crypto regulations are not yet clear in the country and many users prefer to use anonymous tools to carry out their transactions.

Russia is currently third in terms of Bitcoin network mining input and Putin acknowledged the same, calling for the use of surplus energy for crypto mining. With the finance ministry and president onboard, Russia could soon regulate crypto trading and mining.”

See Also: India to introduce 30% crypto tax, digital rupee CBDC by 2022–23
See Also: Hester Peirce Warns Proposed SEC Reform of Securities Trading Platforms Could Threaten DeFi

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