Finance Redefined: AWS turns crypto exchanges offline, and Sushi CTO resigns, Dec. 3–10

An AWS outage sent shockwaves around the crypto industry, Delong left his role as Sushi CTO, and Coinbase opened a cryptography library — all coming to you in this week’s Finance Redefined.

Welcome to the latest edition of Cointelegraph’s decentralized finance newsletter.

Although the markets may be down and technical indicators built upon AWS malfunctioning, fear not young degens, fundamental news and the spirit of Wagmi is abundant as ever. So, read on and discover all you need to know about the most important events of this week.

What you’re about to read is a shorter, more succinct version of the newsletter. For a comprehensive summary of DeFi’s developments over the last week, subscribe below.

AWS outage highlights the need for truly decentralized exchanges.

An Amazon Web Service outage this week produced significant cascading effects on the global supply chain and delivery industry, as well as hours-long operational disruptions to decentralized exchange dYdX and leading centralized exchanges Binance.US and Coinbase.

AWS is the world’s largest cloud service infrastructure, which provides an array of services, including network servers, storage capacities, remote computing and mobile development, to name a few.

According to data published this year by Synergy Research Group, the tech titan holds a 33% share of the cloud infrastructure market, followed by Microsoft and Google with 20% and 10%, respectively.

Details on the incident were largely undisclosed; however, it was stated on the company’s service health page that “multiple AWS APIs in the US-EAST-1 Region,” located in Northern Virginia, were experiencing connectivity issues.

In a Twitter statement shared on Tuesday, and into the early hours of Wednesday, dYdX spoke about enhanced latency across the network, as well as website loading failures, before disclosing its overreliance on the centralized servers, one of which is AWS.

Analytical data from DappRadar reveals that dYdX is the 13th largest decentralized finance application built on the Ethereum Network, registering approximately $1.5 billion in daily trading volume. In September this year, dYdX achieved a historic transactional milestone in surpassing the volume of Coinbase over the course of a single day, with $4.3 billion in comparison to $3.7 billion.

Decentralization is understood by many early crypto adopters to be a core component of the industry’s architecture. Alongside security and scalability, the former makes up the so-called blockchain trilemma, a concept coined by Ethereum co-founder Vitalik Buterin, to denote the necessity to sacrifice one side of the triad to experience the benefits of the other two.

In the world of crypto exchanges, many opt to prioritize security and scalability in pursuit of mass adoption but, therefore, operate with largely centralized, Web 2.0-like structures.

Related: Decentralization vs. centralization: Where does the future lie? Experts answer

Joseph Delong wraps up time as SushiSwap CTO

SushiSwap chief technology officer Joseph Delong, announced his immediate departure from the decentralized exchange this week, pledging to honorably pass the proverbial baton onto the next leader, alongside necessary accounting and information data.

Delong explained the reasoning behind his decision in a candid Twitter thread, citing internal conflicts and a lack of unified vision for the project, stating:

​​“I wish Sushi the best and am saddened that Sushi is so imperiled within and without. The chaos that is occurring now is unlikely to result in a resolution that will leave the DAO as much more of a shadow than it once was without a radical structural transformation.”

Delong has experience working in the Web 3.0 space as a blockchain engineer and developer. Formerly employed as a senior software engineer at ConsenSys, Delong took up the position of chief technology officer at SushiSwap at the beginning of 2021 following Chef Nomi’s infamous exodus in the months prior.

Over the past year, Delong has guided SushiSwap to the 12th ranked position in nominal total value locked value (TVL) with $2.85 billion but also suffered obstacles with stringent whitelisting acceptance on layer-two protocol Optimism, as well as a $3-million supply chain exploit on launchpad MISO and, more recently, a rumored vulnerability in its smart contracts to the value of $1 billion.

Related: SushiSwap denies reports of billion-dollar bug

Coinbase opens cryptography library to promote innovation

One of the leading cryptocurrency exchanges, Coinbase, this week announced the launch of an open-source library-themed platform, titled Kryptology, designed to provide developers with a suite of “secure, audited, and easy-to-use application programme interfaces (APIs).”

In an official blog post, Coinbase outlined its intentions for the library in fostering the continued development of this long-standing technology:

“While enabling further innovation is our primary goal, we also aim for Kryptology to elevate the standard for what is considered to be a robust, usable cryptographic library.”

Related: Coinbase announces support for hardware wallets, starting with Ledger

Token performances 

Analytical data reveals that DeFi’s total value locked has decreased 11.3% across the week to a figure of $143.95 billion.

Data from Cointelegraph Markets Pro and TradingView reveals DeFi’s top 100 tokens by market capitalization exceeding bearish across the last seven days.

Terra (LUNA) was the sole gainer of the top 100 this week with a mere 1.81%. Not the most memorable technical week for DeFi, let’s put it that way, but unsurprising considering the wider context of the crypto-wide market pullback.

Interviews, features and other cool stuff

  • Without staking, institutional crypto investors cannot escape inflation
  • Gold, Bitcoin or DeFi: How can investors hedge against inflation?
  • Bitcoin continues consolidation: Are we still in a bull market?

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically advancing space.

Coinbase users launch online refund campaign following GYEN troubles

Many Coinbase customers are understandably frustrated after the company decided to freeze their accounts for weeks.

Coinbase has come under fire recently following a technology snafu that reportedly resulted in the company closing many of its customer’s accounts. 

When users attempted to purchase Japanese stablecoin GYEN and Powerledger (POWR), they suffered from technical difficulties. This was then followed by an error in the system response. Now, deeply frustrated customers have launched an online campaign demanding refunds. 

Chris Flemming, a Coinbase user, has started an online petition against the exchange called “Accountability for COINBASE GYEN account freeze,” which has already garnered 1,620 signatures. It states, “We as a whole recognize that mistakes happen and there is the potential for loss when investing in any cryptocurrency or asset. Though in this case the losses came from internal technical errors of Coinbase.”

On Nov. 10, according to a CNBC report, Coinbase listed GYEN for the first time. Somehow, the coin became detached from the Japanese yen’s price it was supposed to track starting around Nov. 17. The token’s value rose to a peak of 0.065643, which is more than 7.5 times greater than investors had anticipated in fiat currency. Transfer activity on Coinbase increased on Nov. 18 and peaked at $122 million, according to the report.

It’s still unclear how many clients were affected, how much money was lost, or whether anybody made a profit by selling before the price tumbled again. The currency is now trading at the yen peg rate as it was originally intended.

Related: Binance CEO reveals one key factor for token listings

A Coinbase representative told CNBC that the company would provide a thorough explanation of what occurred and how concerns would be addressed. The Nasdaq-listed exchange “will publish a blog article on the November 19 event involving GYEN and POWR assets in the coming weeks,” the representative said. They noted that both GYEN and POWR have resumed trading on Coinbase Pro, and withdrawals are enabled on Coinbase.com.

Elon Musk, CEO of Tesla, recently suggested that cryptocurrency owners transfer their funds out of centralized exchanges to safeguard them. “Any crypto wallet that won’t give you your private keys should be avoided at all costs,” Musk said.

Coinbase announces support for hardware wallets, starting with Ledger

The partnership will take into effect during the first quarter of 2022, with the Coinbase mobile app planning to also support Ledger down the track.

Major exchange Coinbase has announced it will begin to supporting crypto hardware wallets, starting with Ledger. The two companies made the announcement at the Ledger Open conference, which is taking place in Paris on Dec 9 and 10.

Ledger is a major supplier of cold hardware wallets, which store users’ private keys more securely than hot online wallets.

Users of the Coinbase Wallet browser extension will be able to connect their Ledger hardware wallets, maintaining self-custody and full controlover their assets.

The partnership will be rolled out in phases, starting in the first quarter of 2022. Further down the track, the Coinbase mobile app will also support Ledger hardware wallets.

Max Branzburg, VP of Product at Coinbase said: “we’re excited to share more announcements on how we’re making Coinbase Wallet the safest and most secure way to participate in Web3 over the coming months.”

Coinbase stores 12% of all crypto

Meanwhile, Coinbase CFO Alesia Haas made some big statements in her testimony to the U.S. House Committee on Financial Services on Dec 8. She claimed that Coinbase stores about 12% of all crypto across more than 150 asset types and said crypto was moving beyond simple coin swaps.

“Nearly 50% of our transacting customers are doing something other than buying and selling crypto, which indicates to us that crypto is moving beyond its initial investment phase into the long expected utility phase,” she said.

Related: Why hardware wallets might not offer as much protection as you think, explained

Coinbase claims to have over 73 million customers globally, including 10,000 institutions and 185,000 application developers.

Exchange listings and mainnet launch boost SUPER, PBR and BTT price

Bitcoin is struggling to hold $50,000, but that’s not stopping SUPER, PBR and BTT from tacking down double-digit gains.

The cryptocurrency market is back in high spirits on Dec. 7 after the wider market bounced back from the Dec. 3 downturn in Bitcoin (BTC) price. Currently, bulls are aiming to send the price of BTC above the $52,000 support/resistance level and Ether (ETH) is trying to reclaim $4,400 but both assets are encountering push back at overhead resistance. 

Even with BTC and ETH consolidating, traders’ change of sentiment has been a boon for altcoins and many have seen gains in excess of 50% within the past 24-hours.

Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets Pro

Data from Cointelegraph Markets Pro and TradingView shows that a few of the biggest gainers over the past 24 hours were SuperFarm (SUPER), PolkaBridge (PBR) and BitTorrent (BTT).

SuperFarm lists on Coinbase

SuperFarm is a cross-chain protocol that combines decentralized finance (DeFi) and nonfungible tokens (NFTs) to create an ecosystem where NFT creators, collectors and traders can interact in an open marketplace.

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $1.02 on Dec. 6, the price of SUPER surged 81% to a daily high at $1.81 on Dec. 7 as its 24-hour trading volume spiked 500% to $323 million.

SUPER/USDT 4-hour chart. Source: TradingView

The run-up in the price of SUPER comes after the token listed on Coinbase alongside PolkaStarter (POLS) and Spell Token (SPELL).

Related: Coinbase adds ‘ETH2’ despite tomorrow’s Ethereum upgrade postponing difficulty bomb

PolkaBridge opens registration for IDOs

PolkaBridge is a decentralized multichain protocol designed to work as the primary bridge between Polkadot and other networks. The platform also supports an all-in-one platform that includes an automated market maker (AMM) with farming, lending, token launchpads, prediction markets and an NFT marketplace.

Data from Cointelegraph Markets Pro and TradingView shows that after reaching a low of $0.85 on Dec. 6, the price of PBR catapulted 99.4% to reach a daily high of $1.71 on Dec. 7 as its 24-hour trading volume increased 80% to $10.2 million.

The quick turnaround in PBR price comes as the platform opened registration for several upcoming initial decentralized exchange offerings that require users to stake at least 10,000 PBR tokens to qualify for an allocation.

BitTorrent prepares for its mainnet launch

BitTorrent is an established peer-to-peer file sharing and torrent platform that has been making a shift toward a more decentralized design over the past couple of years after being integrated with the Tron ecosystem.

VORTECSâ„¢ data from Cointelegraph Markets Pro began to detect a bullish outlook for BTT on Dec. 4, prior to the recent price rise.

The VORTECSâ„¢ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECSâ„¢ Score (green) vs. BTT price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSâ„¢ Score for BTT climbed into the green zone on Dec. 4 and reached a high of 82 around 29 hours before the price increased 75% over the next day.

The building momentum for BTT comes as the project is making its final preparations for the launch of the BitTorrent Chain mainnet, which will include a token redenomination plan where current BTT holders will receive 1,000 new BTT tokens for each old BTT held in their wallet.

The overall cryptocurrency market cap now stands at $2.384 trillion and Bitcoin’s dominance rate is 40.7%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Amex, Visa, Citi, Paypal Invest in Crypto Transaction Monitoring and Forensics Platform

Amex, Visa, Citi, Paypal Invest in Crypto Transaction Monitoring and Forensics Platform

American Express’ Amex Ventures, Visa, Citi Ventures, DRW Venture Capital, Jump Capital, Marshall Wace, Block (formerly Square Inc.), and Paypal Ventures are among investors in the latest funding round of crypto transaction monitoring and forensics platform TRM.

Amex, Visa, Citi, Paypal Invest in TRM Platform

Crypto transaction monitoring and forensics platform TRM announced Tuesday investments from major financial institutions in its Series B funding round.

The company has raised $60 billion from leading financial institutions, including American Express’ Amex Ventures, Visa, Citi Ventures, DRW Venture Capital, Jump Capital, Marshall Wace, Block (formerly Square Inc.), and Paypal Ventures.

The funding round was led by Tiger Global. It also included investments from 50 of the world’s leading operators including Coinbase President and COO Emilie Choi.

Esteban Castaño, TRM’s cofounder and CEO, commented:

Crypto is moving faster than any sector in our lifetimes. Organizations need a blockchain intelligence partner that can stay ahead of the evolving risk landscape — from ransomware attacks to defi [decentralized finance] exploits.

TRM detailed: “In support of our mission to build a safer financial system for billions of people, we developed the first blockchain intelligence platform that combines cross-chain data with threat intelligence, advanced analytics, and intuitive visualizations to help organizations detect crypto fraud and financial crime.”

Crypto businesses — such as Circle, FTX US, and Moonpay — “use TRM Transaction Monitoring to detect suspicious activity and meet anti-money laundering (AML) regulatory requirements,” the company said, adding:

Government agencies use TRM Forensics to investigate sophisticated crypto-related crime including scams, hacks, and terrorist financing.

The TRM team includes threat finance experts from the Federal Bureau of Investigation (FBI), the U.S. Secret Service, and Europol. It also includes data scientists from companies like Apple, Amazon, and Google.

What do you think about major companies investing in TRM? Let us know in the comments section below.

Coinbase adds ‘ETH2’ despite tomorrow’s Ethereum upgrade postponing difficulty bomb

But ETH2 is not a new cryptocurrency and the exchange appears to be prepping for Ethereum’s transition to Proof-of-Stake.

Cryptocurrency exchange Coinbase has added a mirrored version of the Ethereum blockchain’s native token Ether (ETH) to its crypto price index, just ahead of a key network upgrade on Dec. 10.

Dubbed “ETH2,” the symbol appeared to have been tracking the original Ether market data synchronously. For instance, the cost to purchase ETH2 came out to be the same as that for ETH. Meanwhile, their market capitalization, volume, circulating supply, and price changes were also identical.

Nonetheless, unlike the original, the ETH2 token had no Trading Activity, Popularity Score, or Typical Hold Time, underscoring that its role — for now — is to merely track the ETH market data at least until mid-2022.

ETH vs ETH2.0 market data. Source: Coinbase

That is probably as ETH2 seems to have been posing as the native token of Ethereum’s ongoing upgrade, dubbed Ethereum 2.0, which expects to go live fully by June 2022. But the Coinbase’s index listing appears closer to “Arrow Glacier,” a fork that would give developers more time to prepare for Ethereum 2.0.

Before Ethereum 2.0

The Arrow Glacier update aims to delay a so-called “difficulty bomb,” an incentive hardcoded inside the Ethereum blockchain since its launch in 2015, which would make it difficult for people to mine Ether. In doing so, the BOMB, if triggered, would slow down the Ethereum network, for as long as it remains proof-of-work.

Tim Beiko, one of the core developers working on the Ethereum upgrade, noted that Arrow Glacier might be the last upgrade before Ethereum 2.0 goes live next year. Meanwhile, Coinbase appears to have been treating the Arrow Glacier fork as a confirmation that they would exist a new token called ETH2 after the Ethereum 2.0 upgrade.

In detail, Ethereum 2.0, also known as “Serenity,” would enable significant changes to its design, including a full-scale transition from energy-intensive Proof-of-Work (PoW) — also used by Bitcoin (BTC) — to Proof-of-Stake (PoS).

In the current version, nodes must validate every transaction to maintain Ethereum’s public ledger. But the Ethereum 2.0 upgrade would launch “sharding,” which would divide the network into various segments (called shards) and would randomly assign nodes to each shard.

Beacon Chain and Sharding. Source: Vitalik.ca

That would remove the need for each node to scan the entire chain, theoretically improving the speed and costs required to maintain the network. Meanwhile, individual shards would share the transaction details with a so-called Beacon Chain, which serves as the backbone of Ethereum 2.0.

ETH2 is not a new crypto

Beacon Chain, which went live in December 2020, would validate the transactions on each shard, thus assisting the entire Ethereum 2.0 network reach consensus. It would also detect dishonest validators and initiate penalties by removing a portion of the validator’s stake from circulation.

Related: Vitalik Buterin outlines ‘endgame’ roadmap for ETH 2.0

At the core of Ethereum 2.0’s PoS design would be ETH (or ETH2), which primarily serves as a staking token for validators to participate in the network consensus and, in turn, to receive block rewards for it.

Beacon Chain’s deposit contract has received over 8.42 million ETH tokens from 55,300 unique depositors (validators) since its launch in December 2020.

The balance of the Ethereum 2.0 deposit contract divided by the total ETH supply. Source: CryptoQuant

That being said, ETH2 is not a new coin and would not change the ETH amount one holds. Instead, as Coinbase’s index listing suggests, ETH2 may end up becoming a rebranded version of the original Ether, without needing holders to swap one version for another.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

IDEX Token Skyrockets 60% Following Coinbase Listing

The so-termed “Coinbase Effect” is in total power following the American crypto trade mentioned numerous cryptocurrencies, subsequently pushing lots of of their rates to new all-time highs.

On Monday, Coinbase Pro declared the listing of COVAL, IDEX, MCO2, POLS, FOX, SPELL, and Super, with the investing established to commence on Tuesday at 12 pm EST in supported jurisdictions and delivered the liquidity demands are fulfilled.

Transfers for COVAL, IDEX, MCO2, POLS, FOX, SPELL & Tremendous are available in the areas exactly where buying and selling is supported. Traders are unable to area orders & no orders will be filled. Trading will begin on or immediately after 9AM PT on Tues 12/7, if liquidity disorders are achieved. https://t.co/rKdw59RRzs pic.twitter.com/O1wUYD2cOh

— Coinbase Pro (@CoinbasePro) December 6, 2021

All seven belongings liked a hefty spike in rates promptly immediately after the information broke, with COVAL, an ERC-20 token powering the Emblem platform, leaping from $.02 to a new all-time substantial of $.092. Even with the subsequent correction, COVAL is however up by 287.5% over the past working day, in accordance to CoinGecko.

MCO2, an Ethereum-based mostly token underpinning the Moss Carbon Credit rating undertaking, noticed a related price tag increase, growing from $9.30 on Monday to a new all-time high of $21.68 on Tuesday. At press time, MCO2 is trading all over $19, or 104% around the working day.

IDEX, the governance token of the eponymous “hybrid liquidity” decentralized trade (DEX), also savored a hefty raise from the Coinbase listing. This will come just a 7 days right after the start of the protocol’s v3.

On Monday, IDEX v3 also listed IDEX/USDC buying and selling pair, with a corresponding liquidity pool and a generate farming option available as nicely.

Coupled with the Coinbase listing, the price tag of IDEX skyrocketed to a day-to-day significant of $.46 before on Tuesday, with the token transforming palms all over $.42 by push time, an enhance of 65.5% around the previous 24 several hours.

Market place rebounds amid Coinbase listings

The rest of the market place is taking pleasure in some positive times as properly, with many assets submitting double-digit gains as properly.

Bitcoin is up 8.4% about the day, at this time trading at about $51,270, whilst Ethereum, the next-premier cryptocurrency by sector cap, is up 10.8%, trading all over the $4,400 mark.

Some of the market’s largest gainers involve Polygon (MATIC), which is up 29.8%, Avalanche (+20%), as properly as Terra, Polkadot, Cardano, and Solana, all of whom are up about 12%.

The bullish motion comes just times following a current market-extensive rout over the weekend, a little something the business hadn’t knowledgeable in some time.

The post IDEX Token Skyrockets 60% Following Coinbase Listing appeared first on Soltimes.

Coinbase launches open-source cryptography library Kryptology

The library will aid in building complex cryptographic techniques to match the needs of the bourgeoning DeFi sector.

On Monday, Coinbase, the fourth-largest cryptocurrency exchange globally by trading volume, announced the creation of a novel cryptographic library, Kryptology, as a compendium of tools for blockchain developers. These include secure, audited and easy-to-use APIs as well as a repository of common issues and lessons learned throughout the history of crypto.

Without cryptography, cryptocurrencies such as Bitcoin would be digital lines of code that anyone can copy/paste. It would be easily replicable and falsifiable, leading to significant issues such as currency double-spending. Recent advancements include Boneh–Lynn–Shacham, or BLS, signatures, which are used to verify senders’ identities and validate transactions while ensuring thei data is safely stored. Another recent adoption is the Shamir Secret Sharing, or SSS, algorithm. SSS divides a secret value among multiple participants, called shareholders, who must work then together to reconstruct the secret. The setup is ideal for storing private keys holding entrance to decentralized finance, or DeFi, pools, and smart contracts that lock a large sum of money.

Then, there are zero-knowledge proofs, which ensure that encrypted messages can be passed on and validated without revealing underlying personal data, making them ideal for use in complex DeFi applications. Finally, the design of new elliptic curves, such as Pasta, could also potentially improve crypto wallets.

One leading area of cryptography innovation is in privacy coins, which can enable users to evade tracking by blockchain forensic firms and prevent outside participants from viewing their transaction details. Law enforcement has shunned such technology due to its ability to promote illicit activities.