Weekly Web3 Research | Some Pools of Curve Were Hacked, With An Estimated Loss of Over $70M, SEC Sues Hex and Pulsechain’s Founder on Suspicion of Selling Unregistered Securities

Weekly Trend Overview

In the past week, compared with last week, the actual trend of the crypto market has not changed much, but due to the influence of the Curve event, the declining trend of various currencies is more obvious.

Most of the cryptocurrency projects in Top100 continue to show a downward trend, with 24% not falling in price. Several mainstream tokens continued to decline, with XRP and SOL experiencing declines of -7.2% and -9.8%, respectively. CRV was impacted by the Curve hacking, with a decrease of -20%.

In the market trend last week, the cryptocurrency market has entered a new round of short trading cycles, and there should be good news such as price recovery. Still, the sudden Curve event has interrupted this process. In the future, we must monitor various information developments inside and outside the market.

The biggest external impact on the crypto market this week came from the new round of prosecutions by the SEC, in which Hex and Pulsechain were involved, which cast a shadow on the blockchain industry. The competition between the crypto market and the regulatory direction is still continuing.

While BTC and ETH have weekly fluctuations of -0.4% and -1.7%, BTC maintains a small negative decline, the Curve event impacts ETH. Although the founder of Curve took remedial measures after the event, it still has a significant impact on Ethereum‘s eco, so the price of ETH has dropped significantly.

Up to now, the market value of global cryptocurrency is $1.21 trillion, with little change in the quarter as a whole. Due to the lack of liquidity, the crypto market is still in a relatively stable market cycle, and there are few favorable external news recently, so the investment attitude needs to be more rational.

Crypto Market

🔥 Some pools of Curve were hacked, involving products such as Alchemix, JPEG’d, Metronome, cross-chain bridge deBridge, and DEX Ellipsis on BNB. It is estimated that the loss is $70 million. The reason is that some versions of the Ethereum programming language Vyper have a recursive lock vulnerability with function failure, which triggered a series of events and market shocks.

🔥 Due to the Curve event, the largest MEV reward block in Ethereum history was created this week.

🔥 The meme coin BALD project withdrew most of its liquidity, causing a sharp drop in BALD. BALD stated that the project has not sold any tokens since deployment, only added, removed liquidity, and purchased tokens. Currently, there are rumors in the industry that SBF or BALD deployers are involved.

🔥 The founder of Curve sold a total of 72 million CRVs through OTC for $28.8 million. These CRVs have a lock-in period of 6 months, and the proceeds from the sale are used to repay a large amount of debt. However, they still have a loan of $82.6 million, which is expected to result in a 15% reduction in CRV production before and after the event.

🔥 Worldcoin claims to allow companies and governments to use its ID to find broader application scenarios for the user life information data contained in its projects, establishing connections to the identity and financial network of billions of people in the AI era.

🔥 Sui’s daily trading volume reached 65.8 million, setting the highest historical record in the history of the public chain.

🔥 FTX has submitted a restructuring plan, but the specific bankruptcy process still requires time.

🔥 The Base TVL has exceeded $60 million.
The partial transaction of LeetSwap token LEET has removed liquidity, causing the LEET price to return to zero at one point.

Regulatory Policies

🔥The US Senate passed the amendment to the National Defense Authorization Act of 2024, including provisions on cryptocurrency mixers, anonymous currencies, etc.

🔥The SEC is suing Hex and Pulsechain’s founder Richard Heart for allegedly selling unregistered securities, claiming that they misappropriated at least $12 million in customer funds for personal purchases of luxury goods.

🔥The Internal Revenue Service announced that the POS on-chain staking reward is subject to tax.

Macro Economy

🔥The Federal Reserve’s 25 basis point rate hike policy has been implemented, marking the 11th consecutive rate hike since March last year.

🔥The Chairman of the Federal Reserve stated that inflation has eased somewhat, but there is still a long way to go before returning to the 2% target. It may not fall back to 2% until 2025, and policies must be kept at restrictive levels for a period of time. By September, interest rates may be raised again or kept unchanged.

Crypto Market Highlights

⭐️In the past week, there has been less positive news in the crypto market, and the overall market liquidity remains relatively stable within a stable range.

⭐️The Curve incident has had a negative impact on the crypto market, but its founder is still trying to solve it. However, a large number of asset sales have further lowered the confidence of CRV holders who have been hit, and the probability will maintain a long-term downward trend in the future.

(Data Courtesy Of CoinGecko)

BTC & ETH Weekly Performance

Bitcoin (BTC)

(Data Courtesy Of TradingView)

BTC reached a high of $30,050 this week and has been volatile since falling below the $29,500 line last week.

Impacted by market shocks, BTC prices hit a bottom within the $28,570 range this week, and then began to rebound due to liquidity impact. Currently, it appears that the maximum resistance level has once again reached $30,000.

Judging from the week’s situation, most of the hot news in the crypto market this week was bad news. The overall market liquidity was insufficient, but the long-term confidence of the market was still there. Only in the absence of all kinds of good news, BTC may continue to fluctuate within the $28,500-$30,000 price range.

Ether (ETH)

(Data Courtesy Of TradingView)

ETH broke out of a more intense Candlestick chart this week and failed to maintain its linkage with BTC. Due to the impact of eco events, prices experienced a downward trend and reached the $1,820 price range, which was lower than last week’s mainstream price forecast.

However, Due to the Curve event, the largest MEV reward block in Ethereum history was created this week, which contributed to the shock recovery of ETH prices.

However, after the price of ETH rebounded to the $1,850 stage this week, there was a clear lack of strength, with prices fluctuating down to the $1,830 range. However, it has returned to the $1,850 range and is expected to maintain a relatively stable trend next week. Currently, the larger resistance level is still at $1,900.

Web3 Project Trend

This week, all seven sectors of project changes have shown a downward trend. Although some projects have shown impressive performance, based on the lack of significant growth in the market volume, the overall trend is still mainly small. The valuation and trading volume of most project categories continues to show a slight downward trend. Presently, it may be difficult for different project categories in the entire crypto market to achieve explosive growth in the short term under a bull market state. Judging the conditions for investment and entry requires more external information acquisition.