Krystal Newsflash (3rd March 2023)
Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:
Major stablecoin delisted on Coinbase
In response to the controversy surrounding the BUSD stablecoin, Coinbase has announced its decision to delist BUSD from its exchange for not meeting its listing standards.
Brian Armstrong, Coinbase’s CEO, later further clarified that delisting was due to liquidity concerns. This comes after BUSD’s issuer, Paxos, was ordered by the New York Department of Financial Services (NYDFS) to stop minting its stablecoin.
Do you still own any BUSD and are looking to swap it for another stablecoin?
Take advantage of Krystal’s SmartSwap Router where we give you the best rates with minimal slippage.
Swap BUSD across multiple networks (Ethereum, BNB Smart Chain, Avalanche or Polygon) on our dashboard, or download our mobile app to try it out!
The latest breakthrough for Ethereum 🎉
Account abstraction was announced during an ETHDenver conference at a WalletCon event.
This could be a game-changer for Ethereum as it offers the capabilities of a smart contract wallet, which could improve the security of your wallet.
Currently, your private keys and seed phrases are the only way of securing your wallet, and if anyone gets hold of it, they will be able to take full control of your funds.
With account abstraction, it is possible for your wallet to be more programmable, and brings about certain unique capabilities such as social recovery.
This means that you could use ‘guardians’ (including your friends’ wallets) to store an encrypted version of your private key for you.
In the event that you lose your private key, you can get these guardians to approve the recovery of your wallet for you.
While this may still take a while before it gets implemented on various wallets, you may want to learn a bit more about how to keep your seed phrase secure in our article here.
LaunchZone hacked
This DeFi protocol on the BNB Smart Chain was exploited, where more than 80% of its liquidity pool was drained by a hacker.
This led to a huge crash in the price of LZ, LaunchZone’s native token.
PeckShield, a blockchain security and data analytics company, mentioned that this was due to a malicious smart contract that drained funds from users’ wallets.
One of the victims of this smart contract exploit was a user who owned 9.88 million worth of LZ tokens.
Token approvals can be rather dangerous, especially if you mistakenly approved a malicious smart contract.
This usually happens when you unknowingly click on a phishing website, and then approve the smart contract on the site to interact with the funds in your wallet.
The smart contract is malicious in nature, and will drain any tokens you have in your wallet!
A best practice would be to revoke any smart contracts you no longer interact with, and you can check out Krystal’s Token Approval tool to revoke access to these contracts.
You can revoke any smart contract you’ve previously approved across 10 supported EVM-compatible networks.
Do note that each transaction will cost some gas fees, so don’t forget to have enough of the native tokens to pay for each transaction!
Silvergate has lost its shine
Once the darling of Wall Street, the crypto-friendly bank Silvergate is in quite a crisis.
Silvergate announced that it would delay the filing of its annual report, where it mentioned that it was uncertain about its “ability to comply with the heightened regulatory scrutiny of banking institutions that provide products and services to the digital asset industry”.
FTX was one of the major customers of Silvergate, and after its crash, this resulted in around $150 million of the bank’s deposits being held by customers who had filed for bankruptcy protection.
In light of this news, many major crypto companies like Circle have started to distance themselves from Silvergate.
Things are rather uncertain now and it remains to be seen if any crypto assets are under the custody of Silvergate.
Liquid Staking reaches a new milestone
The popularity of earning staking rewards while still having access to your crypto has shot up, such that it has now become the second-largest crypto market sector.
The total value of crypto assets that are locked in liquid staking was $14.1 billion, which is $0.4 billion more than the total amount in crypto lending and staking.
Meanwhile, decentralised exchanges still maintain the top spot at around $19.4 billion.
At Krystal, we give you the best of both worlds where you can either choose to lend or stake your funds with reputable partners like Ankr, Lido, Aave, Venus and Compound.
Take advantage of the best yields for your assets and earn passive income while you sleep. Try it out now on our dashboard or download our mobile app!
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