Week in DeFi: Celebrity Memecoin Surge, Iggy Azalea's Anti-Scam Plan, and Crypto Loss Decline
Summary:
This past week in DeFi saw a rise in celebrity-launched memecoins and a strategy from pop star Iggy Azalea to evade scam coins. A trader who lost $6.91m in Ether managed to reclaim a large portion of the stolen money from scammers. A report indicated a 12% decline in crypto losses to hacks and frauds for May. Despite mixed performance, the top 100 DeFi tokens saw mostly green and over $100bn stayed locked in DeFi contracts. Azalea plans to burn her coins if celebrity coins prove to be scams, promoting trust in crypto community. However, insider trading allegations trailed her new memecoin. An exploit lost $80k worth of a token labeled as "BTC" on the BNB Smart Chain, sparking speculations on perpetrator’s motive. Finally, the recovery of a major loss of Ether gave victims of crypto scams some hope. The DeFi sector continues to evolve with these rapid developments.
This week, the decentralized finance (DeFi) scene witnessed another surge in the popularity of memecoins, with several celebrities launching their own versions. This demonstrates a change in trend from 2021 and 2022 when famous personalities introduced non-fungible tokens (NFTs) instead. Amid the memecoin frenzy, pop icon Iggy Azalea conceptualized a unique "burning" strategy to circumvent scams and rug pulls.
In another significant development, a trader who lost 1,807 liquid-staked Ether (ETH), equating to $6.91 million, reportedly got back a significant portion of the stolen amount from the fraudsters. A recent investigative report by Immunefi indicated that crypto losses relating to hacks and fraudulent activities were reduced by 12% on an annual basis in May.
In terms of DeFi tokens, the top 100 revealed mixed performance this week, with prices primarily consolidating and majority of tokens displayed green. The total value locked into DeFi contracts remained over $100 billion.
Crypto losses resulting from scams and hacks experienced a 12% year-on-year drop in May as per a report by blockchain security firm Immunefi released on May 30. The total loss was approximately $52 million for the month, showing a decline from over $59 million for the same period the previous year. This constituted a 28% decrease relative to the losses incurred in April. The report brings to light an ongoing downtrend in losses from fraudulent activities and hacks within the Web3 industry.
Pop and crypto sensation Iggy Azalea made news by announcing her plan to burn her own coins whenever a celebrity coin turns out to be a scam, colloquially known as a "rug." She aims to inspire trust and honesty within the crypto community and establish a unique identity as compared to other contentious individuals in the industry. Despite this, questions were raised regarding the distribution of her memecoin, named Mother Iggy (MOTHER), when insider trading was suspected.
Approximately $80,000 in a BEP-20 token labeled as "BTC" was lost to an exploit on the BNB Smart Chain, involving a number of dubious transactions. Despite the relatively small amount, this incident led to speculation regarding the motive of the perpetrator.
In a turn of good news, a trader who had lost 1,807 liquid-staked ETH, an equivalent of $6.91 million, on May 26, reportedly got back a substantial part of the stolen amount. This incident, though rare, provides some hope for victims of these types of scams.
Data sourced from Cointelegraph Markets Pro and TradingView depict a varied week for the top 100 DeFI tokens by market capitalization. A majority of tokens were green on the weekly charts. Post weeks of bearish trends, the total value locked in DeFi protocols crossed the $100 billion threshold.
Join us next Friday for a recap of the week's key developments in the rapidly evolving DeFi sector.
Published At
5/31/2024 10:25:00 PM
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