Month: February 2023

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Altcoins Could Tank: Traders Urged to Take Caution

• Pentoshi, a well-known cryptocurrency trader and analyst, warned that he is feeling less confident in the market than he was a week ago due to concerns over momentum and tired altcoins.
• His decision to be “less aggressive” in the market is a sign that he’s taking a more cautious approach to trading.
• This could be a warning to other traders that they need to be careful too, as it could mean that we’re entering a period of consolidation or that the hype around cryptocurrency is starting to die down.

Warning From Crypto Trader Pentoshi

Pentoshi, a well-known cryptocurrency trader and analyst, has issued an ominous warning about the current state of the crypto market. In his tweet, Pentoshi admitted that he was feeling less confident in the market than he was just a week ago because of concerns over momentum and what he called “tired” altcoins.

Pentoshi’s Cautious Approach

To reflect his reduced confidence in the market, Pentoshi said he would be “less aggressive” in his trading going forward. As someone with lots of experience in the crypto industry, his opinion carries weight and should serve as an indicator for other traders who need to stay alert and ready to adapt to changes in market conditions.

What Does This Mean For The Crypto Market?

It’s hard to say for certain what this means for the overall crypto industry at this point. It could indicate that we are entering into a period of consolidation where prices stabilize after experiencing growth, which could be good news as it would make markets less volatile and more predictable; however it could also mean demand is starting to decrease as hype surrounding cryptocurrency starts dying down.

The Impact Of Pentoshi’s Warning

Regardless of how things turn out down the line, one thing is certain: Pentoshi’s words will be closely watched by everyone involved with cryptos and will have significant influence on market sentiment going forward. Investors need to pay attention so they can react appropriately when needed.

Conclusion

Cryptocurrency markets are always changing and investors need to remain aware of potential risks so they can make informed decisions about their investments. Pentoshi’s warning should not be taken lightly–it carries substantial weight within the crypto community today and will likely shape opinions going forward if left unaddressed or ignored altogether.

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Hacken Boosts Binance Security with Zero-Knowledge Proof Upgrade

• On Feb 14, 2023, Hacken researchers identified a bug in the Binance zkSNARK-based Proof of Reserves system.
• Binance announced an upgrade on its proof-of-reserves verification to include zk-SNARKs.
• The Hacken team found 42 vulnerabilities, with 16 exposed to public exploitation, including the possibility of creating fake debt undetectable by a third party.

Binance Upgrades Security With zkSNARK

Binance upgraded their proof of reserves verification system on Feb 10th, 2023 to include zk-SNARKs. This addition was expected to boost transparency and security while preserving user safety and privacy during transactions. Prior to this update, Binance used Merkle tree cryptography for system safety and transparency.

Hacken Identifies Bug in System

On Feb 14th, 2023 Hacken researchers identified a bug in the Binance zkSNARK-based Proof of Reserves system which allowed for the generation of fake accounts and negative balances undetectable by third parties. After identifying the bug they published a report on their findings and alerted the Binance team immediately so that they could resolve the issue.

Vulnerabilities Found

The Hacken team went through all 1157 dependencies on the project and found 42 vulnerabilities with 16 exposed to public exploitation. Of these 42 vulnerabilities, 20 had severe severity while 20 had medium severity with two significant shortcomings discovered on Merkle sum tree; negative balance and privacy issues. The researchers then discovered loopholes allowing for generation of fake user debts undetectable by third parties as well as possibility of creating fake debt due to missing CheckValueInRange validation within BasePrice parameter setting when generating zero knowledge proofs containing batches of 864 users linked through Poseidon hash functions .

Solution Implemented

After discovering these bugs and loopholes in their existing proof of reserves system, Binance immediately responded by generating zero-knowledge proofs containing batches of 864 users interlinked via Poseidon hash functions which addressed both negative balance & privacy issues previously present in Merkle sum tree cryptography .

Open Source Project Benefits Crypto Industry

In response to FTX’s fall many blockchains adopted Merkle Tree Cryptography based systems for increased industry transparency ,which inspired Binance make this project open source which will benefit entire crypto industry (ensuring users feel SAFU).

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SEC Votes on Crypto Firm Qualification: Will it Change the Game?

• The US Securities and Exchange Commission (SEC) plans to propose new regulations this week that could affect the services crypto firms offer their clients.
• A five-member SEC panel will vote on the proposal on Feb. 15, with a majority vote of three out of five required to proceed to the next stage.
• If approved, the proposal could make it harder for crypto firms to hold digital assets for their clients, possibly forcing entities that work with them to move their holdings elsewhere.

SEC To Vote On New Rule Regarding Crypto Firms

The US Securities and Exchange Commission (SEC) is set to propose new regulations this week that could have an impact on the services offered by crypto firms. A five-member SEC panel will be voting on the proposed rule changes on February 15th, with a majority vote of three out of five required in order for it to proceed further.

Impact Of Proposed Changes

If approved, these proposed changes could make it more difficult for crypto firms to hold digital assets for their clients. Hedge funds, private equity firms and pension funds may find themselves in an awkward position if they currently use crypto firms as custodians – as these entities are typically required to use qualified custodians when holding client assets.

Feedback From Public Needed

After approval from the SEC panel, the proposal will then be put out for public participation which would allow people to provide feedback before it is finalized into a rule which can take effect. This follows an announcement made by an SEC staff member in 2020 regarding who can be considered a qualified custodian of crypto assets and requested feedback from members of the public at large.

Regulators Becoming More Cautious With Crypto

The new rules proposed by the regulator aligns with its plans towards curtailing risks associated with cryptocurrencies within wider financial systems following highly publicized failures from certain crypto companies such as FTX exchange and Voyager Digital brokerage in 2022.

Conclusion

It remains unclear what specific change the agency seeks but if implemented correctly, these measures could help ensure better safety protocols when dealing with digital asset management while also ensuring greater consumer protection against fraud or any other misappropriation schemes related cryptocurrencies or blockchain technology at large.

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Korea FSC Issues Guidelines for Security Token Regulation

• The South Korean Financial Services Commission (FSC) released rules on January 6th that outline which digital assets are regulated as securities in the country.
• Assets like stablecoins will operate following the upcoming digital assets regulations.
• The guidelines support innovation and simultaneously ensure consumer protection.

South Korea’s Regulations on Digital Assets

The South Korean financial services commission (FSC) recently published rules on Jan. 6th that define which digital assets can be regulated as securities in the country. According to these guidelines, all blockchain-based tokens will be treated and regulated as securities if they possess inherent characteristics that fit them into the country’s capital market act. This includes assets used for staking to derive dividends.

Digital Asset Regulations

On the other hand, any asset outside this category of security such as stablecoins will be held to different regulations under the upcoming digital asset regulations. In addition, the FSC has stated that cryptocurrency and other digital assets’ security-like financial assets will have to undergo case-by-case assessments by issuers and brokers, such as crypto exchanges, according to these rules.

Consumer Protection & Innovation

These new guidelines promote innovation while simultaneously ensuring consumer protection through regulation of digital asset markets in Korea. Initially, there will be more promotional activities with a focus on institutionalization throughout 2023 when these drafted guidelines go through assessments before becoming official policy.

South Korea’s Crypto Ecosystem

South Korea is one of few countries with a strong presence in the crypto ecosystems with many initiatives being taken towards legitimizing it within their borders over recent years. For instance, Yonhap reported back in 2018 that the government was investing 4 billion won into developing a blockchain-based virtual power plant and then later during a national assembly policy discussion on ICOs highlighted how important an internationally consistent crypto regulatory framework is for proper governance of cryptocurrencies globally .

Busan’s Plans for a Decentralized Market

In January 2023, Busan announced its plans to build what would become world’s first decentralized digital commodity market by H2 2023 with all products tokenized and traded on the blockchain infrastructure while also providing an avenue for tackling money laundering issues through launching their “virtual currency tracking system” proposed by ministry of justice at around same time period .