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Crypto Weekly Roundup: Market Crash, China FUD, and DeFi Hacks

Crypto Weekly Roundup: Market Crash, China FUD, and DeFi Hacks

It has been an eventful week, to say the very least. With the crypto market crashing, the overall sentiment is extremely negative right now. Let’s take a look at some of the more important news that happened this week.

General

Since this Monday, the overall crypto market cap has slumped by >$600 billion, crashing from $2.15T to $1.525T. The biggest factor behind this crash was China’s State Council implementing a Bitcoin mining ban. The Council identified Bitcoin mining as a key sector that may cause a slew of ‘financial risks’ for the Chinese economy. This is the first time that the state organization has issued such a pronouncement aimed directly at the crypto mining sector.

Several analysts and experts have moved quickly to allay any unfounded fears about the cryptocurrency market. According to them, volatility is embedded in the cryptocurrency market, and a price drop is nothing to worry about.

Business

Ripple has announced its partnership with Egypt's largest bank, the National Bank of Egypt (NBE). RippleNet, a global payments network, will connect NBE with LuLu International Exchange, a financial service provider based in the UAE, and process cross-border payments.

Valour, a Swiss digital asset investment firm, has launched two new exchange-traded products (ETPs), Valour Cardano (ADA) SEK and Valour Polkadot (DOT) SEK. Trading in Valour Cardano (ADA) SEK began on the Nordic Growth Market (NGM) stock exchange on May 18th.

Blockfi, the crypto lending and trading company, had erroneously deposited massive amounts of crypto to some of its customers in a promotion scheme that went badly wrong. The promotion was supposed to pay out bonuses in GUSD stablecoins. Instead, some customers were paid out in Bitcoin, to the tune of $28 million at current prices.

DeFi

Binance Smart Chain-based DeFi apps had a tumultuous week - especially Venus Protocol and PancakeBunny FInance.

Venus, Binance Smart Chain’s largest lending platform, suffered from significant price manipulations. Bad actors manipulated the price of XVS and ended up borrowing 4100 BTC and 9600 ETH. This led to the generation of over $100 million in bad debt.

PancakeBunny Finance faced a flash loan attack wherein the attacker sold 690,000 BUNNY tokens into ETH and BNB. This caused the token to lose a staggering 95.5% in its overall valuation. However, PancakeBunny insisted on Twitter that their vaults are all secure.

NFT

Red Bull’s FI racing team has chosen Tezos to become its blockchain partner. Tezos will enable the racing team to create a series of NFTs to expand the racing team’s existing fan engagement.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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