This Week in Crypto: October 7, 2022
This Week in Crypto is a weekly newsletter from MXC Foundation, which compresses the major news stories from the crypto-verse into a condensed, easily digestible newsletter.
MXC Foundation provides related insights into each news story, helping you make sense of it all.
Binance Smart Chain (BSC) Suffers Attack
On October 6, Binance — one of the world’s largest cryptocurrency exchanges — announced that it had suffered a major attack on its Binance Smart Chain (BSC). The hacker targeted a vulnerability on the cross-chain bridge, BSC Token Hub. The hacker managed to steal 2 million BNB (estimated to be around $560 million), resulting in a true loss of nearly $110 million in assets. $7 million of the losses are already frozen.
After suffering the attack, BSC came to a temporary halt. As of 7am UTC on October 7, BSC is operational again.
Key Points to Takeaway
You can never be too safe when it comes to storing your cryptocurrency assets. We highly recommend that you use multi-layered security solutions when it comes to keeping your assets safe. Use a hardware wallet such as Ledger, or use multi-signature wallets such as Gnosis Safe for extra security. Alternatively, keep your MXC safe by staking it on our Datadash mobile application. Make sure to turn on 2FA on your Datadash mobile application.
Credit Suisse Faces Major Financial Threat
According to reports, Credit Suisse — one of the most trusted financial institutions in the world — may be facing a major financial crisis. While Credit Suisse’s stock price has been in steady decline over the past few months, the real threat kicked in after an internal memo from the institution’s CEO was released. Many Credit Suisse investors focused on the mention of an upcoming restructuring, which may impact the share price negatively as it becomes public knowledge at the end of this month. Many notable figures made the comparison of the 2008 Lehman Brothers crisis, spreading further fear.
Key Points to Takeaway
While Credit Suisse does not have an outstanding track record — due to the recent losses in the billions after the fall of Archegos and Greensill — this week’s crisis points to the presence of extreme fear in the market and the potential justification of it. Credit Suisse’s need for restructuring may be hinting at its internal struggle, which also reflects on the potential losses faced by the retail investors in the bear market.
Bitcoin Hashrate and Boxzone
This week saw Bitcoin’s hashrate peak at 242 exahashes per second, recovering from 193 exahash per second in July. This can be interpreted as the fact that there are more resources being poured into mining BTC, which may be coming from the injection of new hardwares in major BTC farms. Meanwhile, BTC has been trading within the “boxzone” between $19,000 to $20,000.
Key Points to Takeaway
Why should one care about the BTC hashrate and the boxzone? Historically, BTC hashrate has correlated with BTC price. In 2018, hashrate reached 34 exahashes per second when BTC reached a low of $3,217. In 2021, hashrate reached 86 exahashes per second. 20 days later, BTC price reached $30,000 then continued its uptrend to reach all-time highs.
Also historically speaking, BTC has never traded within the boxzone for too long. The recent trend of BTC price staying within the boxzone may indicate that soon potential volatility may come. The peaking of BTC hashrate, combined with BTC being within the boxzone, hints towards the volatility being an uptrend. However, it is also possible that the trends may be broken. If you are looking to get more BTC without investing in heavy, costly ASIC miners, try low-power Bitcoin mining with M2 Pro today!
SEC Fines Kim Kardashian
Earlier this week, the US SEC (United States Securities and Exchange Commission) has issued a fine of $1.26 million to Kim Kardashian for her promotion of Ethereum Max (EMAX). The SEC has determined that Kim Kardashian failed to reveal the details of her partnership with EMAX, which included EMAX paying $250,000 to Kim Kardashian for the promotion. The $1.26 million fine includes the return of $250,000 along with prejudgment interest, and a $1 million fine.
Key Points to Takeaway
This is not the first time the SEC has fined celebrities and influencers for promoting cryptocurrency assets. Recently, the SEC has issued fines to multiple people for their endorsement of investment opportunities. This, along with recent actions from the US government, indicates that stronger restrictions are on the way for crypto space.
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About MXC
Based in Berlin, Germany, the MXC Foundation is a purpose-built IoT Foundation with the mission to inspire fast, efficient, decentralized data exchanges using LPWAN, Blockchain, and Token technology. The MXC Foundation is pairing “MXC” — the pioneer IoT cryptocurrency — with advanced LPWAN technology, developing the next, vital step in the fourth industrial revolution, enabling secure, vastly scalable, lightning-fast transactions. Learn more at: www.mxc.org
For further information, media requests or comment, please MXC can be contacted directly at hello@mxc.org or via the www.mxc.org website.
