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Sketchy Ethereum Transaction: Users Sends 3200 ETH, Pays $500K Fee

A new sketchy Ethereum transaction occurred yesterday when a single, unmarked address that was unknown to the crypto public, sent two transactions with a few of 10,668 ETH in a 16-hour span. In our latest Ethereum news, we find out more about the transaction. The first transaction cost $2.5 million and sent only $130 of […]

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A new sketchy Ethereum transaction occurred yesterday when a single, unmarked address that was unknown to the crypto public, sent two transactions with a few of 10,668 ETH in a 16-hour span. In our latest Ethereum news, we find out more about the transaction.

The first transaction cost $2.5 million and sent only $130 of value while the other one cost $2.5 million and sent $87,000 worth of ethereum. The transactions were flagged as likely mistakes which were likely caused by a bug in the wallet software that was used by the transaction sender. While this story quickly reached the crypto public, another address made the same error and paid an extremely high fee which was much higher than the status quo. This time, some analysts explained that the sketchy ethereum transaction could be related to a hack. 24 hours after the second fee transaction, block explorers, and individuals noticed another transaction that was suspicious: one user spent more than $500,000 to send 3200 ETH worth $750,000.

 

Scam alert

One of the founding partners at Primitive Ventures Dovey Wan, who is a notable crypto commentator, remarked in reference to the blockchain data of the transaction:

 “WOW another abnormal ETH transaction with over 2K ETH fee just emerged, following the previous two incidences each with over 10K ETH fee.”

The address that sent the latest transaction had nothing to do with the single address that sent the last two transactions. According to Wan, there is a good chance that the address related to this transaction was hacked:

 “A wild guess [is that] a certain exchange/wallet/Ethereum services is being “kidnapped” by a hacker… The hacker can move the coins but only to a list of certain addresses which are whitelisted (or other unknown constraints), hence by [wasting the assets they can pressure the] exchange to settle with a ransom.’’

This is quite a different stance than the previous two suspicious transactions which were deemed by the community to be caused by a bug. As Larry Cermak explained:

 “This is from the same address with the same exact fee in ETH (10,668.73185). This reinforces the theory of a bug and points to it not being fixed yet.”

The associate professor of computer science at Cornell University Emin Gun Sirer explained that the bug was likely swapped the intended transaction amount with the transaction fee resulting in a 10,668 ETH fee instead of the 10,668 ETH transaction. Although these transactions are only outlines, the highlight one of the main issues that Ethereum has over the past few weeks which is, of course, high fees.

Source: https://www.dcforecasts.com/ethereum-news/sketchy-ethereum-transaction-users-sends-3200-eth-pays-500k-fee/

Blockchain

The Resistance to Bitcoin on PayPal Has Already Begun

PayPal’s new cryptocurrency service will allow its users to hold BTC. But some people think that misses the point of Bitcoin.

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In brief

  • PayPal is introducing a feature for buying and selling crypto.
  • The price of Bitcoin shot up at the news, with speculation that mass adoption is around the corner.
  • However, PayPal is stripping several salient Bitcoin features from its product.

News broke this morning that PayPal, the company that kickstarted the online money transfer industry, will start allowing users to buy Bitcoin via its app and website.

Some have hailed the move as a decisive moment for Bitcoin adoption and cryptocurrency markets have responded favorably, with the price of BTC briefly hitting $13,000 today. But others think PayPal’s forthcoming feature is a bad look for the world’s largest cryptocurrency, primarily because of what it lacks.

PayPal’s new feature will allow users in the United States to buy, sell, and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on its platform. 

But there are a few things missing—for starters, private keys. While that’s something exchange users may not scoff at, they may be more troubled that “the crypto in your account cannot be transferred to other accounts on or off PayPal.” Which is something you would expect from an asset you supposedly own.

Blockstream CEO Adam Back and Kraken’s Dan Held pointed out that PayPal could follow the lead of other platforms, such as eToro, and add withdrawal features after the fact.

However, for the moment PayPal’s proposal is like Bitcoin without the Bitcoin.

Thus, according to Casa CTO Jameson Lopp, it’s not really crypto that PayPal is making available, but IOUs. In other words, and say it with me, not your keys, not your coins.

SatoshiLabs, the creator of the Trezor hardware wallet, wasted no time telling people not to use PayPal for Bitcoin (which would, of course, cut into their core offering).

“When a household brand like PayPal starts selling Bitcoin, it’s probably not because they want to spur healthy adoption,” it said in a blog post.

It continued: “The only reasons to own Bitcoin which cannot be used would be to invest for the long term, which is incredibly reckless to do when your funds are held by a third party, or speculate on its price, which again, would be introducing the masses to financial mechanisms they do not understand.”

Ripple CEO Brad Garlinghouse admitted it was “great to see a payment pioneer leaning in,” but noted it was “disappointing [that] some fundamental tenets/benefits of crypto are spurned.” He then pivoted to a common refrain at Ripple, speculating that PayPal is remaining cautious because of crypto’s regulatory uncertainty within the US. (Ripple execs have publicly stated they are considering relocating the company outside the US.)

If Garlinghouse is right, then one might reasonably expect PayPal’s cryptocurrency features to evolve and expand, as Back and Held apparently do. Indeed, next year, PayPal plans to allow users to actually use Bitcoin for payments, though merchants will receive dollars rather than BTC.

Regardless, these battle lines have been drawn before, and they’ll continue to divide cryptocurrency users. However, the question is: When more giants like PayPal get into the game (and perhaps drive the price up), how many people will stand with Lopp on the other side?

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Blockchain

Analysis: Current Bitcoin Rise Due To New Money Entering Crypto (And Not Altcoins Sell Off)

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Bitcoin is enjoying several consecutive bullish days, resulting in a break above $12,000. The movement may surprise some. A few days ago, news broke that the popular cryptocurrency exchange OKEx had suspended withdrawals after reports emerged that its founder was taken away by the police.

In early October, the owners of another large platform, namely BitMEX, were charged by the US CFTC with illegally operating a derivatives exchange.

Similar developments typically lead to adverse consequences for the cryptocurrency market. Although Bitcoin’s price indeed dipped briefly, the asset recovered swiftly. Moreover, it actually started accelerating.

On October 2nd, when the BitMEX news came out, BTC slumped to $10,400. With its price set above $12,200, this represents a 17% increase in less than three weeks. Since last Friday alone, when the OKEx events transpired, Bitcoin has gained about $1,000 of value.

Apart from building optimism within the community that a new 2020 high of above $12,500 is coming, BTC’s impressive performance raised questions about the nature of the funds going into Bitcoin.

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New Capital Enters

Popular cryptocurrency commentator Alex Saunders published a graphic on the matter called “Crypto Market Cycle Capital Flows.”

Crypto Market Cycle Capital Flows. Source: Twitter
Crypto Market Cycle Capital Flows. Source: Twitter

Saunders specified that the blue represented the entire cryptocurrency market cap, the black – BTC’s market cap, and the orange was the cumulative market cap of all alternative coins.

He outlined several periods when Bitcoin’s performance contrasted altcoins. This implies that when BTC was heading up, investors were swapping their altcoin positions for more significant exposure to Bitcoin and vice-versa.

However, the latest price increase for the primary cryptocurrency doesn’t fall under the same category. Saunders concluded that the data he collected “suggests the capital entering Bitcoin is new money rather than a rotation from Altcoins.”

Alternative Coins Stay Still

By examining the price performance of the altcoin market, one could see merit in his words. Although some alts have lost value lately, most have remained relatively stable.

On a weekly scale, Ethereum has lost less than 1%, while Ripple has dropped by about 2%, according to data from CoinMarketCap.

The altcoin market cap hovered around $148 billion a week ago and is slightly down to $147 billion now. The monthly scale even sees an increase from about $135 billion.

Altcoin Market Cap. Source: CoinMarketCap
Altcoin Market Cap. Source: CoinMarketCap
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Source: https://cryptopotato.com/analysis-current-bitcoin-rise-due-to-new-money-entering-crypto-and-not-altcoins-sell-off/

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Bitcoin Price Moons to New 2020 Highs on PayPal News

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Newfound bullish momentum is omnipresent with Bitcoin’s price throughout the last few days. The cryptocurrency has increased by more than $2,000 since October 6th, and it shows no signs of slowing down.

Bitcoin Price Breaks 2020 Highs on PayPal News

Throughout the entire month of September, Bitcoin’s price was somewhat stagnant, with a few minor exceptions. This became a cause for increasing worries among cryptocurrency analysts and traders, many of whom were worried that the price would head lower and fill the (still) unfilled CME gap down at $9,600.

All of this changed on October 6th when BTC started its ascend. Since then, the price has increased by more than $2,000, with the momentum culminating today on some major news coming from PayPal.

The world’s largest online payment processor announced that it would enable its customers to buy, sell, and store Bitcoin and other cryptocurrencies as soon as the “coming weeks” for US-based accounts and the first half of 2021 for other countries.

Naturally, the market reacted in a positive way. Today, Bitcoin’s price has surged from a low of around $11,910 to a high of $12,888 on Binance Futures, before retracing to where it’s currently trading at $11,750. With this sudden move, Bitcoin broke the previous 2020 high marked on August 17th when the price reached almost $12,500.

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btcusd_Chart
BTC/USD. Source: TradingView

The Rest of the Market Stalls Against BTC

Somewhat expectedly, altcoins are bleeding heavily against Bitcoin. The market dominance of the world’s leading cryptocurrency is increasing aggressively over the past few days, as it’s now sitting at 61.%, up about 3% in the last month.

BTC_dominance_chart-min
Bitcoin Dominance. Source: CoinMarketCap

As CryptoPotato reported yesterday, BTC’s market dominance is sitting on a 2-month high, while altcoins are already feeling the pressure.

Moreover, a recent analysis indicated that the latest increase in the price of Bitcoin comes from fresh capital, and it’s not a rotation of funds from alts. This shows that the new money entering the space goes into Bitcoin, rather than alternative cryptocurrencies.

On an entirely positive note, it’s worth mentioning that this seems to be a news-driven event. The fact is, however, that PayPal still hasn’t allowed its users to buy Bitcoin, meaning that there might be more positive developments once the feature is rolled into the platform’s services. Moreover, the company has also stated that it will push for the adoption of using digital assets with its vast merchant network in the following year.

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Source: https://cryptopotato.com/bitcoin-price-skyrockets-to-new-2020-highs-on-paypal-news/

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