Recurring market commentary on what's happening in the crypto markets, summarized by Crypto Finance AG Senior Trader Patrick Heusser.

Market commentary

Good Morning!

Bitcoin BTC$ Update

I do not want to be the party-pooper but this potential rising wedge could hurt our over leveraged retail traders on Binance and Bybit.

March term future basis trades at over 5% with only six weeks till maturity (that is 45% annualized). Perpetual funding is also on the upper end of the scale.

CREAM exploit

A quick update on the CREAM and Iron Bank exploit. For the ones who follow our market commentary we have mentioned the Iron Bank before. One of the rather brave (or even crazy projects) in the DeFi space. But definitely very innovative.

Like most of those very complex and extremely intertwined smart contract projects, there was a flaw in it and got exploited for about $30 mio. (more details on the exploit below).

IronBank ($CREAM) was exploited on $37.5M, let’s take a quick look at what happened.👇
1/ Attacker used Alpha Homora for borrowing sUSD from IronBank.
Each time they borrow twice as much as in the previous one.
— Igor Igamberdiev (@FrankResearcher) February 13, 2021

First the market only reacted in $ALPHA and $CREAM tokens to sell off but after 2-3 hours the whole DeFi space took a hit of roughly 5-10%. I do not want to play it down. I just want to mention that every exploit that is not killing the system will make it stronger.

From what I can see and read it looks like that ALPHA is on the hook for the debt that is left behind due to the exploit. The hacker used ALPHA as their borrowing service provider with no intention to pay back the debt. Here's the final update from ALPHA Financial Labs.

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