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.
Copyright © 2020 | Crypto Broker AG | All rights reserved.
All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.
Disclaimer
This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.
Risk disclosure
Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.
