Evening News | South Korean authorities summon all employees of Terraform Labs for investigation; Immutable X will charge a 2% fee on all secondary transactions
The Anchor protocol was exploited for oracle price vulnerabilities after the launch of the new Terra chain, resulting in a loss of approximately $800,000.Organizer: Hsilung, Chain Catcher
"What important events happened in the past 24 hours?"
1. The Anchor Protocol was exploited due to a price oracle vulnerability after the launch of the new Terra chain, resulting in a loss of approximately $800,000.
According to U.Today, after the launch of the new Terra chain, the price of LUNC (Luna Classic) reached $5, while the actual price was far below $5. A user on the Anchor platform noticed this vulnerability and deposited about 20 million Lido Bonded Luna tokens, which the platform valued at $100 million, while the actual value should have been around $200,000. The user borrowed 40 million UST and ultimately withdrew and profited about $800,000. (Source link)
2. Immutable X will activate protocol fees this week, charging a 2% fee on all secondary transactions.
The Ethereum NFT Layer 2 scaling solution Immutable X announced that it will activate protocol fees this week, which will charge a 2% fee on all secondary transactions (1% in June). The funds obtained from the reward pool will be used to increase rewards during the initial staking period of IMX. (Source link)
3. South Korean authorities summon all employees of Terra developer Terraform Labs for investigation.
According to JTBC, the Financial and Securities Crime Joint Investigation Team of the Seoul Southern District Prosecutor's Office has summoned all employees of Luna and Terra developer Terraform Labs for investigation and obtained relevant materials. It is understood that these employees participated in the initial development of Luna and Terra in 2019.
A statement obtained by the prosecution indicated that even when there were objections to the launch of Luna and Terra, Do Kwon forcibly launched the token. Former employees stated that the objections arose because the pilot model had already failed internally. At that time, some pointed out that if investors were paid interest rates in the tens of percentages without stable collateral or a profitable model, there might be an initial rush, but at some point, it would inevitably collapse because it could not sustain interest payments and value fluctuations.
It is reported that prosecutors are focusing on whether executives of Terraform Labs, including Do Kwon, were aware of the design flaws of Luna and Terra in advance. Additionally, prosecutors will investigate whether Do Kwon engaged in price manipulation and whether the country's cryptocurrency exchanges passed appropriate listing review procedures. (Source link)
4. Gitcoin's 14th round of donation matching funds has exceeded $1 million.
According to the official Twitter, Gitcoin's 14th round of donation activity, GR14, scheduled from June 8 to 23, will have over $1 million in matching funds, including categories such as Ethereum infrastructure ($300,000), Polygon ($100,000), ZK Tech ($150,000), ENS ($42,000), Open Gaming ($100,000), IPFS and Filecoin ($50,000), Unlock Protocol ($25,000), The Graph ($50,000), Web3 social network Mask Network ($50,000), Aurora ($100,000), Loot Project, Radicle ($20,000), and Celo ($50,000), among more than ten categories. (Source link)
5. The digital nation project Nation3 DAO will open the application for the Genesis Passport NFT on May 31.
The digital nation project Nation3 DAO announced that it will open the application for the Genesis Passport at 00:20 Beijing time on May 31, with users holding more than 2 VeNation Tokens receiving them on a first-come, first-served basis. It is reported that the rights of the Nation3 DAO Genesis Passport include: governance, participation in the construction of the internal economic system, benefiting from potential future income of Nation3, and receiving a unique Genesis NFT. (Source link)
"What are some interesting articles worth reading in the past 24 hours?"
1. “How do venture capital firms value crypto startups?”
Venture capital firms have valued crypto startups Blockchain.com, OpenSea, and Yuga Labs at $14 billion, $13.3 billion, and $4 billion, respectively. However, with the volatility in the cryptocurrency market, onlookers wonder if these high valuations have become a thing of the past. In this article, Multicoin Capital co-founder and managing partner Kurzweil and Tushar Jain, along with Lightspeed Venture Partners founder and managing director Ravi Mhatre, explain how they assess crypto startups amid market turmoil.
2. “In-depth study: How to design a token economics framework?”
The token economic models emerging from this bear market will be more creative, thoughtful, and revolutionary than any models seen so far. Founders and token designers can focus on building prosperous economies rather than applications, with these economies having vibrant domestic activities and active international trade.
3. “We can no longer blame Stepn on X to Earn.”
For the X to Earn model to be healthy, it should actively seek what X is that can make money from users even in web2, and on this basis, it should also have effective verification capabilities to prevent fraudulent activities. X to Earn addresses user acquisition and the resonance between creators' productivity and platform interests. Without a paid user model, merely relying on user acquisition and incentives for creators will still be difficult to sustain.
