The crypto market has experienced another volatile week, with several notable developments happening in both the Bitcoin and Ethereum spheres. Here's a roundup of all that's been happening.
1. BSC DeFi Project Belt Finance Loses a Total of $50M in Flash Loan Exploit
Belt Finance, a DeFi project operating on the Binance Smart Chain network, has suffered a flash loan exploit that saw it lose $50 million in total. This marks the second project on the BSC network that has suffered an exploit in recent weeks, the first being yield farming protocol bEarn Fi. The attacker exploited the beltBUSD pool, making a profit of $6.23 million. Users suffered a loss of 21.36% in funds.
No other pools have been affected, and deposits and withdrawals should resume within the next 24 hours. The Belt Finance team has commissioned more audits of the protocol, after it completely resolves the current points of exploitation.
The Binance Smart Chain network is popular for its high throughput and low transaction fees, but the advantages have resulted in a surge of unaudited protocols. Projects on the network are suffering the same fate that Ethereum DeFi protocols did last year, when DeFi dapps saw an explosion.
2. Ripple Manages to Block SEC from Viewing Legal Documents
Ripple has prevented the United States Securities and Exchange Commission (SEC) from accessing legal documents concerning issues the company might have about XRP’s status as a security. Judge Sarah Netburn said in the filing that Ripple is protected by attorney-client privilege. Ripple is currently undergoing a lawsuit filed by the SEC that claims it had violated security laws.
The SEC had asked the case judge to order Ripple to produce documents related to legal advice that Ripple had received concerning whether XRP and its compliance with securities laws. Ripple has firmly denied that it conducted an unregistered securities offering in the form of an ICO in 2017. The SEC claims that it had sold $1.3 billion worth of XRP.
Ripple has also asked the judge to order the SEC to disclose internal memos about cryptocurrencies, to ascertain whether the SEC is biased. This request has mostly been granted.
3. Bitcoin Mining Difficulty Drops by 16% as China Experiences Mining Exodus
Bitcoin’s mining difficulty dropped by 16% on May 30 as some Chinese miners began calling it quits following reports of a crackdown by authorities. This is the biggest drop in difficulty in 2021 -- unsurprising given that over three quarters of validations happen in China.
The Chinese government recently stepped up its efforts in clamping down in the market, a move which has resulted in Huobi scuppering its Hong Kong expansion plans. The government has not banned the holding of cryptocurrencies, but it has ordered financial institutions and payments platforms to stop offering any services related to cryptocurrencies.
4. IndyCar Series Has its First Bitcoin-sponsored Car
The Indianapolis 500 will see its first Bitcoin-sponsored car, as team Ed Carpenter Racing’s Chevrolet is sponsored by the Bitcoin community. The car’s liveries will be black and orange and feature Bitcoin logos, making it the first Bitcoin-sponsored race car.
Team owner Ed Carpenter was himself ecstatic about the sponsorship, noting his own attachment to the asset, saying“To bring my personal interest and immersion in Bitcoin to our industry is historic…I see it as an opportunity to transform how we operate within our own motorsport industry.”
The team seems fully behind the Bitcoin ideal, with other associates saying that the team is racing for human freedom, financial literacy and inclusivity. The Indianapolis 500 receives millions in viewership, so Bitcoin will get considerable exposure during the event.
5. Ethereum Scaling Solution Arbitrum Launches Mainnet Beta
Ethereum scaling solution Arbitrum launched its mainnet beta version on May 29, opening itself up to developers. The optimistic rollup-based solution can reduce gas fees by 50 times with a greatly increased throughput, according to developers Offchain Labs. The launch comes at a time when most users are plagued with incredibly high gas fees due to the network’s congestion.
The official announcement states that over 250 teams have asked for access for the developer launch. The current mainnet phase is called the beta erosion because the team will continue to upgrade the system, which includes performance and features changes. The team is currently focused on ensuring that security is airtight with no room for exploits that will result in the loss of funds.
6. Uniswap Community Votes to Deploy Uniswap V3 on Arbitrum
The Uniswap community has voted in favor of deploying Uniswap V3 on Arbitrum, an optimistic rollup-based Ethereum scaling solution. The poll was launched by Compound Finance’s Robert Leshner, with an overwhelming majority supporting the move. Arbitrum launched on May 28.
The proposal states that this will help Uniswap stay competitive while also helping grow the list of projects that can be built on Uniswap v3. The move will also help the platform as users endure high gas fees as a result of the heavy activity that the Ethereum network is experiencing. Arbitrum has a much higher transaction throughput while reportedly reducing gas fees by 50 times.