Loopring's $5M Breach, Surging NFT Sales, and Uniswap Founder's Take on Ethereum Scalability
Summary:
Ethereum protocol Loopring disclosed a $5M breach of its two-factor authentication service for smart wallet apps. Meanwhile, NFT sales volumes have experienced an 18.9% weekly spike, driven by Bitcoin-based NFT sales. Uniswap's founder Hayden Adams advocated against focusing on immutability in Ethereum layer-2 chains. Other news includes the development of a blockchain for social media platform Friend.tech and a hair loss assessment AI bot on Alipay.
The Ethereum zero-knowledge rollup protocol, Loopring, disclosed on Sunday that it fell victim to a $5 million security breach involving its two-factor authentication tool, "Guardian" used within its smart wallet app. On June 9, Loopring explained in a report that the attacker exploited the project's 2FA tool, triggering a recovery procedure that reset wallet ownership and allowed asset withdrawal. They revealed two wallet addresses suspected of being involved in the exploit, with Etherscan data revealing one wallet containing over $5 million in cryptocurrencies. Loopring's Guardian tool lets users pick trusted wallets to assist in retrieving seed phrases or securing breached wallets. The culprit compromised Loopring's "Official Guardian" and initiated recovery on wallets using only this guardian, it was reported. In an effort to find how the 2FA tool was breached, Loopring is working with Mist security specialists and they’re also working with authorities to catch the offender. As a precautionary measure, they have suspended Guardian and 2FA operations which has stopped the compromise in its track.
In the world of NFTs, sales have seen a weekly increase of 18.9%, driven by Bitcoin Ordinals, an NFT-like entity. Seven-day NFT sales reached $147.3 million, of which sales based on Bitcoin surged over 57% to approximately $49.7 million, according to data from CryptoSlam! Ethereum was second with nearly $35.6 million in NFT sale volumes, despite a minor 2.35% weekly decline. Polygon, Immutable, and Blast were among the top ten blockchains by weekly sales volume with double-digit percentage growth. The most significant sale of the week came from the newly introduced BRC-20 token, PIZZA, with sales of $19.3 million.
Uniswap founder, Hayden Adams, commented on scalability of Ethereum, saying that layer-2 blockchains, designed to enhance Ethereum scalability, should not prioritize immutability, which is the ability to maintain an unchangeable transaction ledger, before the Ethereum blockchain is ready. His perspective is that it is irrational to expect layer 2 networks to refrain from further upgrades, forcing large-scale migrations and causing issues with composability if some users migrate and others don't.
In other news, Friendchain, the blockchain behind Friend.tech, the cryptocurrency-based social media platform, is causing curiosity among its users as to the reason for its development. Meanwhile, Alipay, China's most extensive payment and multi-purpose application, now boasts an AI bot that can evaluate hair loss. Also, Ronin was pushed to the number two spot for daily users, via bots and airdrops, though not by Pixels fans.
Published At
6/10/2024 5:40:13 AM
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