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- OpenSea Cuts Staff By 50% To Prepare For V2 Launch 💰👥
OpenSea Cuts Staff By 50% To Prepare For V2 Launch 💰👥
PLUS: Monero’s community wallet loses all funds after attack. ApeFest attendees report ‘extreme pain’ and vision problems after event.
Manan Vora
November 06, 2023
Snapshot Web3
November 6, 2023
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Regulatory and Legal News
The trial of Avraham Eisenberg, the alleged perpetrator of the $116 million Mango Markets exploit, has been postponed to April 8, 2024, after his lawyers successfully argued for more time to review discovery materials. Despite confessing to the exploit, Eisenberg pleaded not guilty to three criminal counts in June. His attorneys stated that they needed additional time to analyze the voluminous discovery materials provided by U.S. prosecutors. Eisenberg's unexpected transfer to the Metropolitan Detention Center in Brooklyn on October 26 also hindered trial preparation. The move limits defense counsel's access to Eisenberg, making it challenging to review documents.
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Innovation and Launches
China-based BTC Digital, formerly known as Meten EdtechX Education Group, has announced the acquisition of 220 new Bitcoin mining units, bringing its total to 2,174 with over 230 petahashes per second (PH/s) of computing power. The new machines are expected to be operational by the end of the month. BTC Digital, which initially operated as an English language training service provider in China, transitioned into Bitcoin mining at the end of 2021. The company's mining farms are located in Pennsylvania and Tennessee and are operated by a third party. CEO Alan Peng stated the aim is to improve the company's financial conditions and maximize value for shareholders.
At the Solana Breakpoint conference in Amsterdam, businesses showcased the adoption of Web3 tools powered by layer-1 blockchain Solana. Boba Guys, a bubble tea brand based in the U.S., presented data from its pilot program for a new customer loyalty app, which showed a 67% increase in monthly visits and a 65% increase in spending from loyalty program users. Solana Pay's recent integration into the Shopify e-commerce platform is another sign of Web3-based payment tools gaining traction in conventional businesses. However, it's acknowledged that there is still work to be done to drive adoption of Solana Pay and Web3 tools. The involvement of major payment processors and rails will play a crucial role in this process.
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NFT, Gaming and Metaverse
OpenSea, the prominent NFT marketplace, has announced a significant round of layoffs, affecting approximately 50% of its employees across various functions. This move comes as the company prepares to launch OpenSea 2.0 with a smaller team. The affected employees will receive four-month severance packages, accelerated equity vesting, and six months of continued healthcare and mental healthcare. This is the second round of layoffs for OpenSea in recent times, with the first occurring in July 2022. The company cited the challenging crypto market conditions at that time. OpenSea has been a leading NFT marketplace since its launch in 2017.
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Scams and Hacks
The Monero community's crowdfunding wallet was recently compromised in an attack, resulting in the loss of its entire balance of 2,675.73 Monero (XMR), valued at nearly $460,000. The incident occurred on September 1, 2023, but was only disclosed on November 2. The source of the breach has not yet been identified. The affected wallet was used to fund development proposals from community members. Only two individuals, Monero developers Luigi and Ricardo "Fluffypony" Spagni, had access to the wallet seed phrase. Monero's core team is now seeking support from the General Fund to cover current liabilities.
A fake Ledger Live application, named "Ledger Live Web3," made its way onto Microsoft's app store, resulting in the theft of almost $600,000 in Bitcoin from users who downloaded it. The scam app mimicked the legitimate Ledger Live interface used for Ledger hardware wallets. The scammer received around 16.8 BTC (approximately $588,000) across 38 transactions before some funds were moved out of the wallet. The incident highlights the need for users to only download applications from trusted sources, and Ledger has emphasized that the "only safe place" to download Ledger Live is from its official website.
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Resource of the Day
Metadata in blockchain transactions refers to additional information attached to a cryptocurrency transaction. It can be on-chain (stored directly on the blockchain, visible to all) or off-chain (referenced in the transaction but not stored on the blockchain). On-chain metadata includes transaction details, smart contract data, and more. Off-chain metadata can be links to external content. This extra information is used in various industries like supply chain, digital identity, and NFTs. Challenges include scalability and data security, which need innovative solutions for blockchain technology to thrive.
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Interesting Reads
Moore's Law, proposed by Intel co-founder Gordon Moore in 1965, predicts a doubling of microchip transistor density roughly every two years, leading to exponential growth in computing power. In cryptography, this means that as processing power increases, formerly secure encryption techniques may become vulnerable. To counteract this, stronger encryption methods with longer key lengths are developed. Moore's Law also impacts blockchain technology, offering opportunities for scalability and security, but raising challenges like potential centralization. In 2023, while the exact transistor doubling rate may have slowed, the underlying principles of technical growth and innovation continue to guide progress in semiconductor technology, with significant implications for cryptography and blockchain.
Bloomberg Intelligence analyst Jamie Coutts predicts that if current adoption rates continue, blockchain technology could have 100 million daily users by 2028. Coutts notes that blockchain adoption has been steady, unaffected by market fluctuations, and compares it to PayPal's growth trajectory. He suggests that the blockchain ecosystem could be valued between $5 trillion to $14 trillion once 100 million users are on board. This projection aligns with sustained interest in blockchain technology, as evidenced by a 5% rise in crypto industry development in 2022 and a survey showing 91% of institutional investors are interested in tokenized assets.
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Miscellaneous
Several attendees of Yuga Labs' ApeFest event in Hong Kong reported experiencing eye pain, burns, and vision issues, which they attribute to improper lighting. Some of those affected sought medical attention and reported symptoms consistent with photokeratitis, a condition caused by prolonged exposure to high levels of UV radiation. The reports suggest that the issue was limited to guests in close proximity to the stage lighting. Similar incidents have occurred in the past in Hong Kong due to improper UV lighting at events. Yuga Labs has not yet responded to requests for comment on the matter.
On November 4, decentralized finance (DeFi) protocol Aave temporarily paused several markets after receiving reports of an issue affecting a specific feature. The affected networks include Aave v2 Ethereum Market and certain assets on Aave v2 on Avalanche, as well as certain assets on Polygon, Arbitrum, and Optimism. Aave assured users that no funds were at risk, and specified that Aave v3 markets on Ethereum, Base, and Metis were not affected. The protocol stated that a governance proposal to restore normal operation will be submitted soon, with a detailed postmortem to follow after the issue is fully resolved.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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