Daily News Roundup - May 20

Daily News Roundup - May 20

By Abhimanyu Krishnan | News | 20 May 2021


In today's news, the DeFi market is experiencing some turmoil with liquidations on the rise and a major BSC platform experiencing a flash loan attack. Exchange outages and more sports teams embracing NFTs also feature in today's stories.

1. Coinbase and Binance Go Out During Market Crash

Two of the world’s largest centralized exchanges, Coinbase and Binance, both experienced down times during the market crash which saw hundreds of billions bleed out of the market. Other exchanges that went down include Bitfinex, Gemini and Kraken, all major exchanges in their own right.

Both exchanges have experienced downtimes in the past when market activity has been unusually high. Coinbase in particular has received flak for this, when it went down during 2020’s crash in March. This lack of reliability on centralized exchanges is what has partially inspired more use of DEXs -- which come with their own costs, as gas fees have been very high in the past week.

2. ETH DeFi Liquidations Skyrocket to Over $600 Million with Market Crash

ETH loans liquidations

The number of liquidations in the ETH DeFi ecosystem in the past 24 hours has crossed $317 million, according to data aggregator Debank. Aave and Compound, the leading lending platforms, respectively saw investors withdrawing $167 million and $120 million.

When including all networks, such as Binance Smart Chain, the total liquidations in the past 24 hours is just under $600 million. Traders are scrambling to protect their capital as the market undergoes a volatile period. Total value locked into the DeFi ecosytem has dropped sharply as well, from roughly $131 billion to $83 billion, according to Debank.

3. PancakeBunny Loses $200 Million in Flash Loan Attack

Binance Smart Chain-based DeFi platform PancakeBunny has experienced a flash loan attack resulting in the loss of $200 million, the team announced via Twitter. The price of BUNNY went from over $200 to $0 in just half an hour. He also left behind a note with the attack, saying “ArentFlashloansEaritating”.

The hacker borrowed a large amount of BNB, and then manipulated the price of USDT/BNB and BUNNY/BNB. After accumulating a large sum of BNB, the asset was dumped, causing the price to tank. The hacker then paid back the BNB that was used to initiate the attack. 

4. BlockFi Accidentally Sent BTC Worth Millions of Dollars to Users

Lending platform BlockFi accidentally sent large amounts of Bitcoin to users instead of fiat to users for a promotional giveaway. Fewer than 100 clients had been given the incorrect sum, and the total value of the accidental sum comes up to millions of dollars. The company has said that they will threaten legal action against those who do not cooperate with returns. 

At the time of writing, some users have returned some of the funds, though there is still a lot unrecovered. BlockFi offered an update saying that it has about $10 million in exposure and that no user funds had been compromised.

5. Coinbase Funds Asset Management Platform Vertalo

Vertalo

San Francisco-based exchange Coinbase has participated in a $5 million Series A funding round by digital transfer agent Vertalo. Other participants were Tezos Foundation and Wedbush Capital, among others. 

Vertalo offers several services, most notably allowing equity and real estate to be tokenized in the form of securities. It also offers features such as a blockchain-based cap table management, digital security issuance, insurance and a Vertalo V-Token to streamline tokenization.

6. Manchester City to Enshrine Premier League Title in NFTs

Newly crowned 2021 Premier League champions Manchester City have announced that they will release their league victory in an NFT series. The collection is titled “1” and will consist of 4 NFTs created by artist Jon Noorlander. They will be available for purchase from May 24.

NFTs have become highly popular in the sports industry, as it finds use cases in grant exclusive access, player collectible items and ownership of highlights or key moments. Other sports teams that are working with NFTs include FC Barcelona and the NBA’s Golden State Warriors.

 

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Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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