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User who turned $200 in Ethereum into $250k due to altcoin bug comes clean

Last week, a coin attempting to leech off the success of Yearn.finance (YFI) launched.

The post User who turned $200 in Ethereum into $250k due to altcoin bug comes clean appeared first on CryptoSlate.

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Last week, a coin attempting to leech off the success of Yearn.finance (YFI) launched.

Dubbed “Soft Yearn” (SYFI), the Ethereum-based crypto asset was launched with the premise of emulating the price of 0.0003 YFI through a rebasing mechanism popularized by Ampleforth (AMPL). As the project’s website reads:

“Soft Yearn is an adaptive cryptocurrency that will expand or contract its supply automatically. A soft pegged currency is tied to another currency. When a soft pegged currency has a significant difference from the main currency’s price, the contract or expansion algorithm will converge the market price to the pegged price.”

The cryptocurrency saw immediate success.

Uniswap price tracker Chartex recorded the coin rallying around 1,000 percent in the two hours from its launch. At the peak, at $190, the coin had a market capitalization in the millions, despite it only launching just hours earlier.

SYFI chart over the first eight hours in circulation from Chartex and TradingView.com

But just a day after its launch, SYFI crashed by over 99.9 percent to under a cent, with the coin becoming a laughingstock on Twitter as millions of dollars worth of wealth evaporated within moments.

What happened was that there was a bug in SYFI’s rebasing mechanism that allowed an anonymous user to obtain a large sum of coins during the rebase to SYFI = 0.0003 YFI, then sell those coins at the pre-rebase price. There was also another bug that incorrectly rebased the coin to the target price.

As a result of these bugs, the user made away with 740 Ethereum, currently valued at around $250,000, despite him only putting up around $200 worth of ETH as starting capital.

Today, that user revealed himself and came clean, telling the story of what happened and what comes next.

An anonymous user who turned $200 into $250k in Ethereum comes clean

On the morning of Sep. 6, a Twiter user with the handle “Amplify” released a 30-part Twitter thread, revealing that it was he that pulled off the impossible.

“I am the person who sold $SYFI on uniswap at the same time as the Rebase. Or, I am the person who exploited the rebase bug in $SYFI.”

After identifying himself as someone with a small crypto account of under $5,000 and someone that has dabbled in arbitrage, Robinhood, stocks, and many other investment venues, he got into what exactly happened on that fateful day.

Amplify explained that he found SYFI through Telegram groups, where users regularly “ape” into coins with perceived intrinsic value for exponential profits. He eventually stumbled across SYFI, which he claimed he made an instant 200 percent of one ETH by buying the coin when it listed on Uniswap, then selling the top.

SYFI was heavily promoted because its ICO, conducted through an Ethereum-based platform called Bounce, sold out within a minute according to some users.

A day after the coin’s launch on Uniswap, the Soft Yearn team prepared for the coin’s first rebase.

Amplify, expecting the coin to potentially rally after the rebase took place, decided to buy back in with 0.5 ETH.

Due to the aforementioned bug, when the rebase happened, he was offered the opportunity to sell his sudden influx of SYFI coins for 740 Ethereum, again valued at around $250,000.

He took the opportunity. Chances are, there were likely other users looking at the exact same thing as he was, but didn’t pull the trigger:

“I didn’t know what would happen or where this fantastical made-up number in ETH would come from… Now, looking back. This was going to happen regardless. If I didn’t push that transaction through with 500 gwei, someone else would have (and likely did) with 490 gwei.”

And as we now know, Amplify succeeded, having drained the liquidity from the Soft Yearn pool, leaving most users with coins worth basically nothing.

While he didn’t explicitly say that he would be returning funds, the user has been gracious in his replies, pledging to return some of the funds to users who verifiably held SYFI or liquidity provider tokens at the time of the rebase. He added that he will be donating some of the capital to a Gitcoin grant of his choosing.

What’s next for SYFI?

SYFI took a big reputational blow. Still, the anonymous founders behind the project intend on moving forward with a relaunch of the coin.

They wrote in a recent Discord post:

“The Soft Yearn team is devastated by this event.  We understand everyone’s frustration and anger, please bear with us while we work on sYFIV2 to fix things.  Although this was a major setback, we believe we can come back stronger as we initiate our migration plan.”

It’s worth noting that a project attempting to accomplish a similar feat to Soft Yearn, the Chainlink-focused Soft LINK, has a mere $1.3 million market capitalization three weeks after its launch.

Posted In: Ethereum, DeFi

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Source: https://cryptoslate.com/user-who-turned-200-in-ethereum-into-250k-due-to-altcoin-bug-comes-clean/

Blockchain

Ledger Live Adds Self-Custody Staking for Polkadot (DOT)

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The popular hardware wallet provider, Ledger, will add Polkadot to its wide variety of supported tokens as of March 4th. Additionally, Ledger will also enable users to stake DOT coins directly on the platform, thus increasing the total number of staking options to five.

Ledger Adds Polkadot and DOT Staking

Founded in 2014, Ledger is a digital asset wallet provider describing itself as the “global leader in security and infrastructure solutions for safeguarding critical” cryptocurrencies. In a press release shared with CryptoPotato, the company announced plans to add another blockchain project with its own cryptocurrency to the Ledger ecosystem – Polkadot (DOT).

The statement reads that the wallet provider will support Polkadot in its software application and will add it to Ledger Live – the mobile application working in parallel to the Ledger hardware wallet. Apart from storing crypto assets, Ledger Live also enables users to follow and manage the holdings even if the wallet is nowhere nearby.

Polkadot’s native digital asset – DOT – will become just the fifth coin that Ledger Live users can deploy for staking. According to the announcement, the mobile application “offers the most secure way to manage and stake DOT tokens as the private keys are stored on a dedicated hardware device that is not connected to the Internet.”

The installing process will be simplified as users need to install a designated Polkadot app on their respective devices, create a DOT account on Ledger Live, add the token to the bounded balance, nominate a validator, and confirm the information.

“Polkadot is one of the most promising projects in the entire crypto ecosystem, and we are happy to provide our users with additional options to earn rewards and participate in the expanding Polkadot ecosystem.” – commented Head of Coin Integration at Ledger – Fabrice Dautriat.

Ledger spokesperson told CryptoPotato that the integration will be fully live starting from March 4th, 2021.

DOT Price and Staking Stats

DOT has been among the best price performers as of late. The asset entered the new year at about $8 but has taken full advantage of the bullish developments in the following months and even breached $40 for a new all-time high.

Despite retracing slightly during last week’s market crash, DOT is still 350% up YTD as it currently hovers above $36.

Additionally, the token is the second-most utilized coin for staking, per data from stakingrewards.com. With over $24 billion worth locked for staking, DOT trails only to Cardano (ADA) by $4 billion. About 64% of all DOT in circulation has been staked as of writing these lines.

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Source: https://cryptopotato.com/ledger-live-adds-self-custody-staking-for-polkadot-dot/

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Blockchain

Change of Heart: Shark Tank’s Kevin O’Leary Joins the Bitcoin Club With a 3% Allocation

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The growing in popularity “I changed my mind on bitcoin” club has another prominent representative. The Canadian businessman and star of Shark Tank, Kevin O’Leary, went from calling BTC garbage to allocating 3% of his portfolio in the asset.

O’Leary Has Bought Bitcoin

Born in Montreal, Canada, O’Leary is a popular businessman, author and is perhaps best known for his role in the reality TV show – Shark Tank. Also referred to as Mr. Wonderful, O’Leary recently announced his entrance into the bitcoin ecosystem.

Apart from allocating 3% of his portfolio in the primary cryptocurrency, the businessman also pledged to invest in BTC miners using clean energy to avoid “blood coins.”

Furthermore, O’Leary said that all companies he had invested in are currently examining the possibility of putting bitcoin on their balance sheets. He attributed this to “changes in the regulatory environment,” but he failed to provide details regarding their precise nature.

Another Change of Heart Moment

Prior to his 3% BTC allocation, O’Leary rarely had anything positive to say about the cryptocurrency. Just the opposite, he was openly bashing it.

Back in 2019 he O’Leary was predominantly negative on this “digital game” called bitcoin, which was “worthless” to him. He went even further by naming it a “useless currency” and “garbage because you can’t get in and out of it in large amounts.”

“Let’s say you want to buy a piece of real estate for $10 million in Switzerland. They want a guarantee that the value comes back to the US currency. You have to somehow hedge the risk of bitcoin. That means it’s not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.”

Fast-forward to February 2021, he was still neglectful of BTC’s potential. O’Leary said he’s not against it and actually respected the asset but dismissed any chances of putting a lot of capital in it.

“No, I don’t want to own something that goes up and down 30% in a day or a week.” – O’Leary noted and added that bitcoin is “not backed by anything. It’s just backed by your faith.”

However, it seems now that this “worthless, not backed by anything digital game” has earned at least 3% of his investment portfolio.

With this change of heart, O’Leary has joined a prominent club with several similar examples. Names such as MicroStrategy’s Michael Saylor, CNBC’s Jim Cramer, and the former Fed Governor – Kevin Warsh.

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Source: https://cryptopotato.com/change-of-heart-shark-tanks-kevin-oleary-joins-the-bitcoin-club-with-a-3-allocation/

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Blockchain

FreeBitco.in purchases 3.75 billion FUN Tokens in a multi-million dollar deal

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Through a series of ventures, FreeBitco.in seeks to promote the mass adoption and utilization of FUN Token in the iGaming and Gaming spaces.

FreeBitco.in, one of the biggest Bitcoin iGaming websites in the world, has acquired the majority of FunFair’s remaining cold storage of FUN tokens, the native cryptocurrency of the FunFair gaming ecosystem. The cold storage holds 4.45 billion FUN Tokens and FreeBitco.in has acquired 3.75 billion tokens.

Through this acquisition, FreeBitco.in plans to invest in the token’s long-term development.

“Since 2013, FreeBitco.in’s goal has always been to provide online gaming enthusiasts with a frictionless, transparent, and truly fair experience,” said a statement by FreeBitco.in. “There’s no better fit than the FUN token to help us significantly enhance our efforts.”

The FUN Token

Since 2017, FunFair Technologies has been striving to deliver a guaranteed fair, decentralized gaming experience to the mass market through blockchain technology utilizing the FUN token.

FunFair team said in a statement: 

Despite several industry firsts and significant milestones in proving that use case, it has recently become apparent that FreeBitco.in has developed a different and superior use case for the FUN token.

This announcement refers to FreeBitco.in’s Premium Membership Program; a feature that incentivizes FreeBitco.in users to buy and hold FUN tokens for significant benefits. This activity has driven considerable volume into the token economy without the burden of significant on-chain transactions. According to the statement: 

There’s no doubt that FreeBitco.in’s customers are currently generating the bulk of FUN token commercial activity rather than FunFair’s customers.

With this in mind and for the token economy to maintain its recent success, FunFair has agreed to sell the majority of their FUN token holdings to FreeBitco.in.

FUN is an ERC20 token listed on major exchanges Binance, BitFinex, HitBTC, Changelly, and OKEx, as well as decentralized exchanges like Uniswap.

FreeBitco.in’s Vision for FUN

FreeBitco.in aspires to grow the FUN token as an independent entity through a series of upcoming projects.

Our sole objective, as of now, is to work to increase FUN’s utility and value,” the FreeBitco.in. team said. “We’re thoroughly committed to its long-term growth.

Accordingly, FreeBitco.in is preparing to undertake the following initiatives:

  • Strategic Burning of Tokens: FreeBitco.in plans to invest a substantial portion of its bottom line into strategically acquiring and burning FUN tokens to elevate their value over time.
  • Improving Liquidity: FreeBitco.in is working on increasing FUN’s liquidity across all markets, thus making it easily accessible and tradeable. This is evidenced by a cumulative influx of $3 million in the FUN/ETH and FUN/USDC trading pairs on Uniswap recently, and other exchanges are set to follow.
  • New Blockchain: Based on the Ethereum blockchain, FUN prided itself on being fast, open, and secure. However, the growth of DeFi on Ethereum has been pushing gas prices up for many months, making the adoption of FUN too expensive for users. FreeBitco.in is actively exploring opportunities to port the FUN Token to a new blockchain that is faster and cheaper.
  • Dedicated Wallet: FreeBitco.in is working on creating a dedicated wallet for FUN users that can operate seamlessly between different iGaming platforms. The wallet would also help users convert their FUN tokens into multiple crypto and fiat currencies.
  • Proactive Development: FreeBitco.in is assembling a development team to build innovative, consumer-facing apps based around the FUN token, thus creating more use cases, strengthening utility, and promoting adoption.
  • Creating Effective Partnerships: FreeBitco.in seeks to build productive partnerships and affiliations with other iGaming entities to promote FUN’s identity as a transactional currency in online gambling.

Note: This is not a partnership between the two organizations, namely FreeBitco.in and FunFair Technologies. The aforementioned acquisition and venture is at the sole discretion of FreeBitco.in.

About FreeBitco.in

Founded in 2013, FreeBitco.in is one of the largest crypto-gaming websites and the seventh-largest online casino in the world (Source: SimilarWeb). FreeBitco.in was created to promote Bitcoin’s utility and facilitate its adoption. However, it has grown by leaps and bounds since then.

Powered by a fully automated, proprietary tech-stack, FreeBitco.in features a simple but powerful HI-LO Dice Game supplemented by contests, rewards, jackpots, and a popular Lamborghini giveaway.

With 41 million users, 52 million monthly visits, and a $600 million-per-annum wagering volume, its influence on the Bitcoin community is significant.

Useful Links

Official FUN Token Website: https://funtoken.io

Official FreeBitco.in Website: https://freebitco.in

Twitter: https://twitter.com/FUNtoken_io

Telegram Channel: https://t.me/officialFUNToken_channel

Telegram Chat: https://t.me/officialFUNToken

Reddit: https://www.reddit.com/user/FUN_token

Discord: https://discord.gg/e7vfgKbEKU

Disclaimer: This article is a paid post and must not be considered as news/advice. 


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Source: https://ambcrypto.com/freebitco-in-purchases-3-75-billion-fun-tokens-in-a-multi-million-dollar-deal

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