Crypto market wrap: Coins stay strong after Nomad bridge hack
Updated
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.
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.”
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