Binance Tokens Slide in Value; U.S. Senate Targets Crypto Rule; pump.fun Reports $1.9M Exploit
Summary:
In the past six months, over 80% tokens debuted on Binance have declined in value compared to their listing price, says pump.fun. Meanwhile, the U.S. Senate has approved a resolution for the SEC to rescind a rule affecting banks' involvement with cryptocurrencies. Pump.fun claims a past employee exploited the firm, leading to the theft of $1.9 million, temporarily halting trading. Despite Congress passing a resolution to nullify an SEC ruling impacting banks' dealings with crypto firms, President Biden plans to veto the bill.
In the past half-year, over 80% of tokens that debuted on the cryptocurrency exchange Binance have seen a drop in value relative to their initial listing price, according to pump.fun, a Solana memecoin tool developed by a former employee. Concurrently, the U.S. Senate approved a proposal urging the SEC to repeal a regulation affecting banks' involvement with cryptocurrencies.
Examining all new listings from the previous six months on Binance, crypto and macro specialist Flow identified that the value of more than 80% of these tokens has declined since they were first listed. His analysis of 31 tokens revealed only five--MEME, ORDI, JUP, JTO, and WIF--showed an increase in value, according to the anonymized crypto researcher's May 17 post.
In other news, pump.fun claimed that a past employee used their privileged position within the organization to access withdrawal authority, resulting in a $1.9 million exploit. This unauthorized access caused the company to temporarily halt trading after the theft of nearly $2 million from the company's total bond contracts valued at $45 million.
Discussing the previous incident, pump.fun stated its cooperation with law enforcement in investigating the matter. The company did not disclose the identity of the former staff member believed to have conducted the exploit using flash loans taken from lending protocol Raydium to purchase a significant amount of coins. Once these coins reached 100% on their bonding curves, the whistleblower could then access the bonding curve liquidity and repay the initially borrowed flash loans.
Moreover, U.S. legislators have approved a joint resolution targeting the SEC's ruling that affects how financial houses deal with digital asset firms. The resolution passed in a May 16 vote seeks to nullify the Commission’s Staff Accounting Bulletin No. 121, which states that banks must include customers' crypto balances in their balance sheet.
Despite the resolution passing both houses of Congress, President Joe Biden has expressed his intention to veto the bill to safeguard the broader financial system and investors in the crypto-asset market.
Reporter credits go to Geraint Price, Sam Bourgi, and Felix Ng.
Published At
5/17/2024 2:38:24 PM
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