Vitalik Buterin, one of Ethereum’s co-founders, answered the criticism regarding the new institutional focus of blockchain and cryptocurrency projects. Buterin told Joe Weisenthal, co-host of Bloomberg’s financial podcast Odd Lots, that crypto culture “idealistic hippies” were still in the space, and that projects in this regard have moved forward quite a bit, citing Lens and […]
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New Stablecoin Bill Faces Criticism for Stifling Innovation and Breaching First Amendment
A new bill co-sponsored by Senators Cynthia Lummis and Kirsten Gillibrand, aimed at regulating stablecoins, has drawn criticism for potentially stifling innovation and breaching First Amendment rights. The bill includes a provision that bans all “algorithmic payment stablecoins,” which could have significant implications for software developers and the broader tech community. Lummis-Gillibrand Stablecoin Bill Criticized […]
Bitcoin News
Ethereum Issuance Reduction Proposal Prompts Fierce Crypto Community Criticism
Discussions about adjusting Ethereum’s issuance curve due to staking concentration and other factors are taking place on social media, with some developers in favor and some against this change. A recent article by Mike Neuder, an Ethereum Foundation researcher, highlights that Ethereum issuance should “preserve the viability and proportion of solo stakers.” Ethereum Issuance Curve […]
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Crypto Community Fires Back at Hillary Clinton’s Criticism of Bitcoin Undermining US Dollar as Reserve Currency
The crypto industry has responded to criticism from Hillary Clinton, who said that cryptocurrency can undermine the role of the U.S. dollar as the world’s reserve currency. Galaxy Digital CEO Mike Novogratz argued that the only thing that can undermine the U.S. dollar as a reserve currency is reckless spending by both U.S. political parties. […]
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GHO Stablecoin Fails to Enforce Dollar Peg Amid Criticism, Receives D Grade From Bluechip
Roughly three weeks ago, Bitcoin.com News covered the stablecoin GHO, when it achieved a notable milestone by reaching .98 per coin. However, on December 11, the token experienced a slight dip, hitting .975 per unit. Despite some improvement in its stability, the stablecoin has still not enforced its intended goal of a peg.
GHO’s Struggle for Stability
Launched by Avara (formerly known as Aave), GHO has been a noteworthy example in the realm of dollar-pegged tokens. Since its inception in mid-July, the digital currency has consistently failed to maintain its peg to the U.S. dollar, persistently falling short of this mark. Despite a low point of .917 on October 24, 2023, GHO saw an upswing towards the end of November, reaching .98 per coin.
Nevertheless, the stability was short-lived. By December 11, GHO had dropped to .975 and, despite a spike to .987, it has not reached the intended mark to date. Interestingly, since October 21, an extra 10 million coins have been introduced. With a total of 34.72 million coins in circulation, the market capitalization of GHO barely exceeds million, primarily due to its price not aligning with the dollar. The stablecoin has faced criticism for these fluctuations.
Chroma’s Jack Longarzo remarked on X, “Scaling stablecoins is a demand side problem, not a supply side problem. The problem with GHO is AAVE only has an advantage on the supply side and isn’t positioned to create demand to actually hold the stablecoin. This won’t scale. Time to GHO build something else.” This critique was in response to a post on X by Stani Kulechov, founder and CEO of Avara.
Kulechov stated, “GHO is already bringing 2.1M in annualised revenue @ tiny 35M mint cap. Also, GHO peg is getting better. It’s [a] matter of time when GHO is ready for scale, and imagine the revenue for the Aave DAO.”
Bluechip Stablecoin Ratings Gives GHO a D Grade Assessment
Bluechip, an independent, nonprofit stablecoin rating agency, has assigned GHO a D grade, based on stability and risk factors. Bluechip’s rating system parallels that of a school report card, where A+ represents the highest achievable score, and F marks the lowest. Bluechip’s report on GHO points out its consistent underperformance relative to the peg and suggests that a short-term recovery of the peg is unlikely.
This is attributed to a “lack of strong stability mechanisms to enforce a peg.” The report continues, “Due to low borrowing rates and no reserve redemption mechanism, GHO’s price is more likely to drop further than increase. GHO, in its current form, is unsafe. We caution users against holding GHO,” the report adds. However, the report further says GHO can improve to a B/B+ rating.
“Despite our rating, we believe GHO already has many key ingredients in place to become a safe, decentralized stablecoin, provided that it implements stability-enhancing changes to its design,” the report concludes.
What do you think about the stablecoin GHO failing to achieve its intended parity? Share your thoughts and opinions about this subject in the comments section below.
Connect Kit Exploit Sparks Criticism of Ledger’s Security Framework
On Dec. 14, 2023, Ledger’s Connect Kit, a Javascript library for wallet connectivity, suffered a significant exploit. This incident, which was contained within two hours, has brought forth a number of criticisms of Ledger’s security practices.
Ledger Exploit Elicits Mixed Reactions From Crypto Sphere; Dapps and Tether Respond Promptly to Breach
Ledger, known for its crypto security solutions and hardware wallet manufacturing, faced an exploit in its Ledger Connect Kit, a Javascript tool used to connect websites to wallets. The breach, which lasted less than two hours, did not impact Ledger’s hardware or Ledger Live but was confined to third-party decentralized applications (dapps) using the Connect Kit. However, this has raised questions about Ledger’s software security protocols.
Jameson Lopp, a prominent figure in the crypto community and CTO of the bitcoin security provider Casa, pointed out three critical failures at Ledger: “Blindly loading code without pinning a specific version and checksum, not enforcing ‘2 man rules’ around code review and deployment, and not revoking former employee access.”
These lapses in security protocol allowed the exploit to occur when a phishing attack on a former employee led to the introduction of malicious code into Ledger’s NPMJS. Lefteris Karapetsas also criticized Ledger’s approach, exclaiming, “Are you guys insane? Why would you build the most security-conscious library in the world to ‘load from CDN’ for convenience without having users to wait for dapps to update?”
Cryptofinally, another industry commentator, expressed disbelief at the nature of the breach: “Imagine being smart enough to exploit the entire ledger to dapp interface, and then leave your full name in the code, leading to your Twitter account that says, ex-ledger employee.”
In response to the exploit, Ledger CEO Pascal Gauthier acknowledged the breach and outlined steps for enhanced security measures. Gauthier stated, “This was an unfortunate isolated incident. It is a reminder that security is not static, and Ledger must continuously improve our security systems and processes.” Ledger plans to implement stronger controls, especially in software supply chain security, to avert similar future incidents.
The company has engaged with law enforcement and cybersecurity experts to track the stolen assets and is working with affected users. “We deeply regret the events that unfolded today for affected individuals,” Gauthier said. Ledger insists the incident has been contained, and Ledger assured the crypto community that the threat has been mitigated. A full timeline of the incident and response efforts was also shared alongside Gauthier’s statements.
In the wake of the Ledger exploit, various dapps and crypto firms took immediate action to mitigate the impact. Several protocols and companies disabled their front-end user interfaces as a precaution. Projects that took action include Lido, Sushi, Balancer, Revokecash, Zapper, and the non-fungible token (NFT) marketplace Opensea. Tether CEO Paolo Ardoino also notified the crypto community that the stablecoin firm froze the Ledger exploiter address.
Arkham Intelligence announced a bounty for identifying those behind the Ledger Library Drainer Exploit. The exploit, linked to “Angel Drainer,” resulted in a loss of over 0K from multiple dapps. Arkham stated that rewards include revealing Angel Drainer’s identity, fund recovery leads, and information on post-incident KYC exchange deposits by Angel Drainer. Arkham offered a similar bounty after the Okx Dex incident which saw the loss of .7 million.
What do you think about the recent Ledger exploit and the criticism? Share your thoughts and opinions about this subject in the comments section below.
Paradigm Says Blast Launch ‘Crossed Lines’ in Messaging and Execution, Pacman Defends Platform Amid Criticism
Amid the rapidly evolving landscape of Ethereum layer two (L2) solutions, Blast, a new entrant, has sparked a wave of discussions in the crypto community. Spearheaded by Pacman, known for his work on the non-fungible token (NFT) marketplace Blur, Blast has garnered both significant funding and scrutiny. Despite being a lead investor in the project, Paradigm’s head of research, Dan Robinson, highlighted issues with “the messaging and execution” of Blast’s launch strategy, while Pacman defends the platform’s mechanics and vision.
Paradigm Addresses Blast Launch
Dan Robinson of Paradigm, a key investor in the Ethereum L2 platform Blast, has recently discussed the project’s launch via the social media platform X. Robinson cited issues with the messaging and execution, particularly the decision to launch the bridge before the L2 and the restriction on withdrawals for three months.
He remarked, “We at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the bridge before the L2, or not to allow withdrawals for three months, since we think it sets a bad precedent for other projects. We also think much of the marketing cheapens the work of a serious team.”
Despite these concerns, Robinson acknowledged the team’s proven track record, including their previous work on Namebase and Blur. He stated, “We backed Pacman and his cofounder because they demonstrated an ability to build great products over many years.” Robinson also shared insights into his collaboration with the team on the NFT-collateralized lending protocol, Blend, emphasizing their technical talent and vision for scaling Blur through the L2 chain.
Paradigm, known for its role in investing in the crypto ecosystem, takes its responsibility seriously, according to Robinson. He mentioned ongoing discussions with the Blast team and Paradigm’s commitment to investing in strong, independent founders. “We invest in strong, independent founders who we don’t always agree with. But we understand that people may look to us to set an example on best practices in crypto. We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously,” said Robinson.
Pacman Refutes Allegations
Addressing the allegations of Blast being a Ponzi scheme, Pacman, the entrepreneur behind the platform, offered an explanation of the yield mechanics. He clarified that the yields come from sources like Lido and Makerdao, stating, “The yield that Blast provides users can feel too good to be true, so this meme is understandable. But to put it simply, the yield Blast provides comes (initially) from Lido and Makerdao.”
Pacman also refuted claims about Paradigm’s involvement in Blast’s go-to-market (GTM) strategy, emphasizing the independence of their approach. “Paradigm had zero involvement in Blast’s GTM. Candidly, they probably would have asked me to change a lot about Blast’s launch if they had been involved,” he explained. He highlighted Paradigm’s expertise in technical design and their contributions to Ethereum development.
In response to criticism over Blast’s invite rewards system, Pacman justified the approach as essential for building a robust community. He argued that such mechanisms are not new and are crucial for the growth of the platform. “If you are a user and help make Blast a thriving L2 by bringing friends along, you are providing real value and should be rewarded for that. That’s why invite rewards exist,” Pacman concluded.
What do you think about Paradigm’s statement? What do you think about Pacman’s defense? Share your thoughts and opinions about this subject in the comments section below.
Ethereum L2 Platform Blast Draws $400M in a Week Despite Invite-Only Access and Criticism
This week, the crypto community is abuzz with discussions about Blast, a new Ethereum layer two (L2) platform. The project gained prominence after securing a notable million in funding, spearheaded by Paradigm and Standard Crypto, among other investors. Developed by Pacman, the entrepreneur behind the non-fungible token (NFT) marketplace Blur, Blast has garnered over 0 million in digital assets in the past week. At the same time, the platform has been scrutinized a great deal over its mechanics.
Blast, Ethereum’s L2 Newcomer, Secures 0M
On November 20, 2023, Tieshun Roquerre, also known as Pacman, unveiled Blast following the project’s funding from Standard Crypto, Paradigm, and additional investors. As an Ethereum L2 network, Blast stands out by offering native yields for ethereum (ETH), staked ethereum (STETH), and stablecoins such as DAI, USDT, and USDC, setting it apart from other L2 solutions.
In under a week, Blast has amassed 5 million in value locked, despite being an invite-only platform at present. Although some social media users are distributing Blast invite codes, they have noted that users cannot bridge out or withdraw funds until February 2024.
The platform’s referral system and padded emissions mechanics have led to some labeling it as a “pyramid scheme” and a “Ponzi.” Co-founder and managing partner at Omnichain Capital, David Attermann, said, “awful look for the ‘investors’ in this deal [and] ‘influencers’ shamelessly shilling this MLM scheme on CT.”
Blast reveals that its team, in addition to Pacman, includes alumni from institutions such as MIT, Yale, and Nanyang Technological University, as well as experts from FAANG and Seoul National University. The referral system of Blast features a leaderboard that ranks members based on the points they earn for bridging assets and inviting friends.
The platform is also preparing for an airdrop, with its distribution set to be evenly split between early access members (50%) and developers (50%), as stated on their website. The early access phase is currently active, and developers are slated to receive their share of the airdrop in January, coinciding with the launch of the Blast Testnet.
Early access participants will have to wait until May for their airdrop. Despite skepticism surrounding Blast, paralleling the early days of Blur, the project is experiencing considerable traction. This decentralized finance protocol is under close observation on analytics platforms and explorers, including Arkham Intelligence, Dune Analytics, and Defillama.
There’s also discussions and public disapproval about the project’s multi-signature mechanism tied to the vault. Blast, however, emphasized the nuanced and spectrum-based nature of security in an X post published on Friday. The startup insists upgradeable contracts, despite their perceived vulnerabilities, particularly in token-gated, time-locked mechanisms, can offer more security in certain scenarios.
What’s your opinion about Blast’s quick rise and the criticism it has received? Share your thoughts and opinions about this subject in the comments section below.
Dr. Doom Embraces What He Once Scorned: Nouriel Roubini’s Firm Rolls Out Crypto Amidst Criticism
Critics are currently roasting economist Nouriel Roubini, whose disdain for cryptocurrency is well-documented, as his company Atlas Capital announces its venture into the very market he once scorned. The firm is rolling out a crypto asset token crafted to combat the “negative effects of climate change,” marking a significant shift from Roubini’s previous stance when he labeled crypto enthusiasts as “corrupt, crooks, criminals, conmen, [and] carnival barkers.”
Economist Nouriel Roubini’s Firm Reveals Climate-Focused Crypto Token
Dubbed ‘Dr. Doom’ for his stark skepticism, Nouriel Roubini has maintained a consistent stance against crypto assets. In a notable mid-October 2019 clash, Roubini squared off with the well known entrepreneur and crypto evangelist Roger Ver, declaring “bitcoin or any other sh** coin” a non-starter for legitimate financial transactions. During that exchange, Ver challenged Roubini’s hesitance to embrace crypto assets asking “Why are you afraid to try it?”
Fast forward four years, and it appears that Atlas Capital, under Roubini’s leadership, has softened its stance, confidently introducing a new crypto asset known as atlas (ACT). The ACT token is designed to confront climate change, offering “everyday investors” a “climate investment strategy that is available on low-cost, liquid terms.” Its backing comes from tangible assets such as gold, bonds, commodities, and “climate-resilient” real estate investment trusts (REITs).
Laden with today’s trendiest jargon and tech-infused buzzwords, the ACT initiative’s overview boasts enhancements from artificial intelligence (AI), machine learning (ML), climate tech, and blockchain. This pivot to a crypto asset project has led to widespread mockery of Roubini, with many labeling his move as sheer hypocrisy. Binance CEO Changpenz Zhao called Roubini shameless.
“Some people are shameless,” CZ wrote. “After attacking Binance publicly on stage a year ago, now issues a token and puts [a] Binance logo on their website WITHOUT permission.”
One of the members of the Atlas Capital token team is a former Binance executive. Furthermore, the mocking of Roubini continued across social media over the past 24 hours. “Buzzword galore,” Bram Kanstein wrote. “It’s OK because it’s ESG crypto amirite,” Jameson Lopp said. “Wow my bestie Nouriel included all the buzzwords it must mean he is going to make money,” Bitmex founder Arthur Hayes added. The crypto account dubbed “Autism Capital” remarked:
No way. Why sell out and grift after all this time? This seems to be a common pattern. The ones who fight the grift seem to grift later at an inappropriate time and have it look way worse than if they just grifted when it was the right time. SAD!
Roubini has remained silent in the face of the backlash, despite being mentioned in numerous social media updates. His posts have remained sharply concentrated on the escalating conflict between Israel and Hamas, as well as on what he calls a “climate disaster.” The team behind the ACT token also stars notable industry figures, including Reza Bundy, the co-founder of Iron Planet; Paschalis Bouchoris, Blackrock’s former chief in the Middle East; Puneet Agarwal, an erstwhile Goldman Sachs executive; and Mayur Kamat, ex-head of product at Binance.
What do you think about Dr. Doom or Nouriel Roubini’s climate crypto token? Do you think it shows sheer hypocrisy? Share your thoughts and opinions about this subject in the comments section below.
UK Online Safety Bill to Become Law Amidst Heavy Criticism From Civil Liberties Organizations
The U.K. Online Safety Bill, a piece of legislation that seeks to make the country “the safest place in the world to be online,” has been signed by both houses of parliament and will become law soon. Several civil liberties organizations and activists have criticized it due to its possible effects on online privacy and encryption.
U.K. Online Safety Bill Ready to Become Law
The U.K. Online Safety Bill, a piece of legislation that seeks to improve the safety levels of children and adults online, has been passed by both houses of the parliament and is ready to become law. In a press release, the U.K. government stated that the law will make the country “the safest place in the world to be online,” establishing new rules that messaging and social media platforms now have to comply with.
The bill, which takes a “zero-tolerance approach to protecting children and makes sure social media platforms are held responsible for the content they host” by establishing penalties of up to £18 million (.16 million) or 10% of their global annual revenue, has been praised as a milestone by government officials.
Technology Secretary Michelle Donelan stated:
The Online Safety Bill is a game-changing piece of legislation. Today, this government is taking an enormous step forward in our mission to make the U.K. the safest place in the world to be online.
New Criticism
Civil liberties organizations and freedom advocates had criticized the bill before, stating that it posed challenges to platforms affected by the so-called spy clause, which allows Ofcom, the U.K. telecom regulator, to scan the private messages of their users.
The Electronic Frontier Foundation (EFF) stated that, with these new measures, “lawmakers will damage the security people need to protect themselves from harassers, data thieves, authoritarian governments, and others” while doing it in the name of online safety.
Encryption could also be affected, even as Stephen Parkinson, the Parliamentary Under-Secretary of State for Arts and Heritage, stated that it would not be “technically feasible” to go around it. However, Donelan declared on September 7 that the conversation around encryption “could take place” if social media platforms cannot meet the requirements in the bill.
On the encryption issue, the EFF explained that “neither the government’s private statements to tech companies nor its weak public assurances are enough to protect the human rights of British people or internet users around the world.”
What do you think about the U.K. Online Safety Bill? Tell us in the comments section below.