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  • 🔥 The Kraken vs. CertiK hack drama, what happened?

🔥 The Kraken vs. CertiK hack drama, what happened?

Also inside: ETH holders RELIEVED by SEC decision 👇️

GM, frens! Today may be unpredictable, but your strategy and resilience are your greatest assets.

Trust in your journey and keep an eye out for those golden opportunities ✊ 

Today we’re talking about:

  • 🤯 Kraken vs. CertiK hack drama, what happened?

  • 😌 RELIEF for all ETH holders: SEC ends security classification probe

  • 🎙️ The latest W3OF podcast: where do blockchain and folklore intersect?

  • 🖼️ Konami and AVAX Launch an NFT Platform

  • 🪙 Solana captured 60% of DEX volume in May

Let’s get down to it!

The Kraken vs. CertiK hack drama

Kraken, a major crypto exchange, claims that CertiK, a blockchain security firm, conducted a hack (that CertiK in turn claims to be a "white hat" hack) on their platform, exploiting vulnerabilities and taking about $3 million from Kraken's accounts 🎩 

Since it was a "white hat" hack, i.e, the primary goal was to discover and report the vulnerability, the funds should go back to the platform, so what's the problem?

The problem is, Kraken says they didn't get all the funds back…

CertiK insists they returned everything but admitted to using Tornado Cash, a controversial crypto mixing service, for some transactions.

This raises a lot of eyebrows because Tornado Cash is often linked with money laundering due to its ability to obscure the origins of funds 🤔 

Kraken argued that CertiK's actions were not entirely transparent and that there’s still a significant amount of money missing.

CertiK, on the other hand, defended their actions, stating they were performing necessary security tests and suggesting Kraken even threatened them over the incident.

The situation was getting hot hot hot, with accusations flying both ways.

The crypto community itself was divided, with some people criticizing CertiK for using Tornado Cash with ill intent while also acting as rogue hackers (not to mention that the firm is also constantly under a lot of criticism from the community because of big profile hacks on platforms that were previously audited by them) 🤷 

Others were suspecting Kraken might not be sharing the full story or just trying to cover everything up, as it is a big security breach.

In the end though, the CSO for Kraken reported that everything was returned back, excluding some minor gas fees. So, all well that ends well, but a lot of questions still remain 🤨

RELIEF for ETH holders: SEC ends security classification probe

The SEC has decided to drop its investigation into whether Ethereum should be classified as a security.

  • The SEC had been looking into this for quite some time, and the decision to drop the probe is a huge relief for Ethereum devs and users.

  • It means they won't have to deal with the potential complications and restrictions that come with being classified as a security.

This is significant because it allows Ethereum to continue its development and operations without the looming threat of strict regulations 👇️ 

One of the reasons this is such a big deal is that it sets a precedent for other projects 🧠 

If Ethereum, one of the largest and most well-known Layer-1s, isn’t classified as a security, it could lead to a more favorable regulatory environment for other digital assets as well:

The crypto market as a whole (including Solana and other runner-ups) could benefit from this, as it reduces some of the uncertainty that has been a barrier to broader adoption and investment, so other chains can continue to grow and innovate without the overhang of regulatory uncertainty 🔒️ 

This approach by SEC could help the industry grow sustainably. Well, compared to war they were waging.

Ethereum compared to Banks

Bitwise recently put out a couple of interesting ads featuring Ethereum.

In these ads, Bitwise is highlighting how Ethereum is accessible 24/7, unlike traditional banks that are closed on weekends and holidays ⌚️ 

The ad points out this difference by showing Ethereum saying, "People can access me 24/7," which emphasizes the convenience and flexibility of using crypto.

This ad got us thinking about how Ethereum's always-on nature really sets it apart from TradFi 🤔 

The blockchain tech allows for transactions to be processed at any time, without the delays associated with banking hours, holidays, your location or the device you use 📱 

This can be a huge advantage for people who want more control over their finances and don't want to be restricted by TradFi industry’s arbitrary rules.

Bitwise's ad is a smart way to highlight these advantages. It’s likely to resonate with people who are frustrated with the limitations of traditional banks and are looking for more flexible options.

Overall, it was a pretty bullish week for Ethereum 🥳 here’s some hope for that much expected growth 🥂 

The latest W3OF podcast: where do blockchain and folklore intersect?

Join us for an insightful convo 🗯️ with digital marketer Kairon as he shares his journey from e-commerce to blockchain and their intersection 🎧️ 

In this episode, we’re highlighting the importance of community building in the Web3 landscape and how blockchain can shape our digital identities and folklore 👇️ 

Konami and AVAX Launch an NFT Platform

Konami Digital Entertainment has teamed up with Avalanche blockchain to launch Resella, a new NFT platform aimed at enhancing Web3 services and NFT transactions for gaming.

This platform focuses on the Japanese market initially, with plans for global expansion. Resella uses Avalanche’s Subnet technology and Ava Labs’ AvaCloud service to try and position itself as a competitive NFT marketplace.

  • Konami Digital Entertainment is a renowned Japanese video game developer and publisher, responsible for popular franchises such as Metal Gear, Silent Hill, and Pro Evolution Soccer.

  • With over 50 years of experience in the gaming industry, Konami's move to enter the NFT market signals a significant shift towards adoption 🎮️ 

  • This could inspire other gaming giants to explore similar ventures, further expanding the reach and applications of blockchain in the gaming industry.

GameFi in particular has not achieved much attention this cycle, despite being an important and promising part of the industry, but with the entry of such big names, it could see significant growth and adoption 📈 

NFTs aren't dying any time soon, especially when they can have their use cases expanded to other industries. The potential for NFTs to revolutionize ownership and value in the entertainment industry is immense, and we can expect to see more bullish news to pop up soon 🐂 

Solana captured 60% of DEX volume in May

Solana has recently achieved a significant milestone, capturing 60% of the new DEX volume in May.

Here’s a closer look at why 👇️ 

Why Solana stands out to users?

  • Solana boasts high transaction speeds, handling thousands of transactions per second, making it a preferred choice for many users.

  • Low gas: the platform offers low transaction fees, which is a significant advantage over some other blockchains.

  • Expanding Ecosystem: Solana’s ecosystem is rapidly growing, with numerous applications in DeFi, NFTs, and more.

  • As funny as it can sound, different programming language used for smart contracts, which resulted in the chain having way less scammers at first, since few really focused on the chain prior to when it exploded. (Though, sadly, this “flaw” was quickly corrected)

Solana's success in capturing a large portion of the DEX market highlights a few key trends in the crypto industry 🤔 

  • Both regular users and devs are more increasingly interested in platforms that can offer fast and cost-effective transactions. Solana's ability to meet these demands positions it well against competitors.

  • Growing ecosystem: The rapid growth of Solana’s ecosystem is a testament to its versatility and the trust the community has in its technology. As more projects and applications are built on Solana, its value proposition strengthens.

  • Solana's architecture allows for high scalability without compromising on security or decentralization. This balance is crucial for sustainable growth in the blockchain space.

All in all, Solana's capture of 60% of new DEX volume is a significant achievement that underscores its growing importance in the crypto landscape. Its blend of speed, low fees, and a robust ecosystem made it a formidable player in the industry. Whether some in the community like it or not.

Other worthy reads

Some recent headlines by 0xSalazar:

A look at investments by Miles Deutscher:

Some thoughts on narratives from Koryo:


That's all for now, frens.

We'll meet again in a week! And remember, the market conditions are temporary, but our commitment to building a better Web3 is here to stay. Thanks for joining us, and we look forward to seeing you back next week. Cheers!

Yours, The 🔥 Team

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