Crypto Market Overview June 8th | Dex-Trade
The Launch of LUNA and UST Was a Recipe for Disaster: the Opinion of Tether's CTO
Tether's CTO, Paolo Ardoino, in an interview with Kitco News on June 7 accused the Terra’s founders of creating the UST stablecoin and pegging it to the LUNA cryptocurrency, calling it a "recipe for disaster." Since LUNA acted as the highest collateral for the stablecoin, Ardoino argued, the latter, in turn, was bound to lose its dollar peg once LUNA began to experience a collapse in value: “To have a safe reserve, you cannot have cryptocurrencies, especially 100% cryptocurrencies. These guys were creating two things, one their own cryptocurrency called LUNA, and a stablecoin on top of that cryptocurrency. That is a recipe for disaster.” Tether’s CTO also argues that if developers of other stablecoins want to avoid the fate of Terra, they must have sufficient reserves, as is the case with USDT. He clarified that a portfolio of assets, which must include US Treasury bills, cash bank deposits and commercial paper, will help maintain the peg to the dollar. Notably, after the crash of Terra, Tether also made headlines due to a temporary break in the dollar peg. Then Ardoino said that traders actively selling USDT are to blame for everything, but thanks to the collateral portfolio, the stablecoin will restore the peg. Since then, Tether developers have claimed that USDT’s slight drop was due to a lack of liquidity on some crypto exchanges…
Hackers Stole $5 Million from Osmosis DEX
Osmosis, a PoS blockchain with a decentralized exchange application in the Cosmos (ATOM) ecosystem, was hacked by a group of hackers who carried out an exploit and, apparently, withdrew $5 million from the liquidity pools of the protocol. The attack was made possible by a “critical bug” in liquidity pools, due to which the system “successfully” ignored users increasing their positions by 50% immediately after adding and removing liquidity in any pool. Experts report that the mistake could potentially lead to the depletion of all liquidity pools. On the official Twitter channel of the project, the developers confirmed the hack, but denied accusations that the liquidity pools were completely depleted. They announced a suspension of the blockchain to correct the error, assess the extent of the damage and restore the ecosystem. By the way, data on on-chain transactions from Mintscan shows that users started exploiting the vulnerability even before the network was shut down. For example, one address associated with the user “Junønaut”, who “repeatedly executed the bug for more than 30 minutes,” managed to withdraw ATOM in the amount of about $75,000.
Mercedes-AMG Petronas and FTX Launch NFT collection
Formula 1 racing team Mercedes-AMG Petronas has partnered with crypto exchange FTX to launch its first collection of NFTs, some of which will only be available to fans who register on the marketplace. In particular, fans of the team will be able to get an artistic interpretation of the ticket from the limited edition NFT Ticket Stubs. Almost every race of the season is expected to have 2,500 numbered tickets. But only five races will feature 1,000 rare NFTs created in collaboration with various artists. Users who sign up for free at FTX will also be able to receive collectible NFT ticket stubs for each upcoming or past Friday race, which will be distributed randomly. It’s also known that eleven collectible tokens featuring Mercedes-AMG Petronas vehicles have already been released in collaboration with multidisciplinary artist Mad Dog Jones. Three of them have already been put up for auction and sold, and the rest are waiting for their buyers. NFT pricing and auction conditions can be found on FTX.
