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Crypto market wrap: Coins stay strong after Nomad bridge hack

By Monte Stewart


Updated

Photo of coin and graph
Synthetix was the only top-100 cryptocurrency that posted a notable gain on Tuesday following Nomad bridge hack. - Photo: Shutterstock

Cryptocurrencies stayed strong Tuesday in the aftermath of a Nomad bridge hack.

It was not a great day for the crypto market as most coins posted marginal gains. However, the sector showed resilience, refusing to get fazed after investors lost $200m as Nomad was breached on Monday.

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ETH to USD

Bridges facilitate transfers

Bridges are used to transfer cryptocurrencies between blockchains, converting one coin to another.

Before transactions are completed, assets have to be validated by passing through a series of computer servers known as nodes.

Due to a software bug, the culprits were able to withdraw more assets than were deposited in the bridge, Tom Robinson, the founder of crypto security firm Elliptic told Bloomberg.

DAI to USD

Minimal expertise required

According to Sun, the bad actors required minimal technical knowledge to steal the coins.

“All you had to do was find a transaction that worked, find/replace the other person's address with yours, and then re-broadcast it,” he wrote.

The Nomad hack followed the $600m Ronin bridge hack in April, one of the largest heists in crypto history.

Sky Mavis, the company that developed the Axie Infinity play-to-earn online game and the Ronin blockchain network behind it, reported that a hacker had stolen 173,600 ethereum (ETH) worth $300m in cash and $25.5m worth of the USDC which is pegged to the US dollar.

FXS to USD

North Koreans blamed

US officials have blamed North Korean state-backed hackers for the theft.

US100

19,526.60 Price
-1.140% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 7.0

BTC/USD

66,743.50 Price
-0.450% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,512.09 Price
+0.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Gold

2,401.36 Price
-1.830% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 21:00 (UTC)
Spread 1.20

Chen Li, CEO of venture capital firm Youbi Capital, blasted SkyMavis, contending that the company was more intent on making money than protecting investors. Li has called for more regulation of crypto assets.

In June, Harmony’s Horizon bridge was drained of $100m.

CQT to USD

Synthetix leads turtle derby

Synthetix (SNX) led Monday’s turtle derby as it rose a modest 4%.

Bitcoin (BTC) was up about 1% as its price hovered in the $23,000 range, while ethereum gained 2%. However, ETH was in the red later in the afternoon.

 

No major declines

No coins in the top 100 suffered major declines – even after the crypto suffered another black eye.

Also on Monday, the US Securities and Exchange Commission charged 11 people in relation to an alleged $300m crypto Ponzi scheme.

The SEC contends that the culprits operated a “fraudulent pyramid scheme launched on a massive scale.”

Markets in this article

DAI/USD
DAI/USD
1.0247 USD
0 0.000%
ETH/USD
Ethereum / USD
3512.09 USD
2.4 +0.070%
DXY
US Dollar Index
103.945 USD
0.135 +0.130%
BTC/USD
Bitcoin / USD
66743.50 USD
-301.8 -0.450%
SNX/USD
Synthetix / USD
2.022 USD
-0.006 -0.310%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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