Bitcoin gains new heights, Warp Finance gets new trouble
On the eve of the New Year, bitcoin has prepared a pleasant gift — it continues to confidently conquer new heights and evidently is not going to stop. However, for the DeFi protocol Warp Finance, the end of the year was overshadowed by a hacker attack. Read about the most up-to-date events in our digest.
In the middle of last week, BTC broke through the historical high of $20,000 and reached the $20,800 mark, then continued the rally and gained the $23,000 level, taking a firm foothold in the green zone. This is the first time in the history of the digital market when the capitalization of just one cryptocurrency exceeded $400 billion! Against the background of BTC upswing, other top-10 coins by market capitalization also strengthened.
Many cryptoenthusiasts could not set aside such an event. For example, CEO of Binance cryptocurrency exchange Changpeng Zhao tweeted, ‘I told you so’. In his opinion, bitcoin will continue its move north, but some downward corrections are still expected. As usual, the rapid BTC rise affected the work of some cryptoexchanges — Coinbase could not process a huge number of users’ requests and had some technical problems. The Binance platform also faced malfunctions.
Meanwhile, ahead of the weekend, the DeFi protocol Warp Finance suffered from a hacker attack, losing almost $8 million. This platform providing P2P lending services enabled the fraudster to exploit a common scheme with flash loans, which allow a user to borrow funds without the collateral, provided that the money will be immediately repaid within one block.
The Warp Finance team confirmed the fraud and recommended users to refrain from placing deposits in stablecoins on the platform during the investigation. It is worth noting that this time the attacker was not too far-sighted and managed to “earn” only $1 million as he had to spend the rest of the money on transaction fees.