Week 35 Newsletter: Bitcoin Dip, Security Breaches and more
Bitcoin Dip and the Iran Escalation
Geopolitical events are affecting the price action on Bitcoin and the altcoin market.
Was it a surprise that markets dumped because of this? Not really.
Markets dump with almost every geopolitical event.
However, the proverbial ‘glass of ice water, in hell’ at this moment is that, in situations like this, Bitcoin is always the fastest major asset to recover.
It has a habit of bouncing back 37.5% on average within a 60 day time frame, following each geopolitical event since 2020.
Check this out below:
Five out of six times, Bitcoin has outperformed Gold and the S&P 500 on a 60 day time frame, following each event.
The takeaway – things feel grim right now, but context is key here (so let’s set some):
$BTC crashed to prices we haven’t seen in checks calendar two weeks – and if history is anything to go by, Bitcoin’s recovery should be faster than most any other major asset.
Banana Gun Breach
On September 19th, Banana Gun, a Telegram trading bot, experienced a significant security breach leading to substantial financial losses.
Initially, $1.9 million was reported missing, affecting 36 users. However, the total losses soon escalated to $3 million, impacting 11 users.
The breach allowed unauthorized access to user wallets, resulting in widespread concern and panic among its user base.
The situation began with rumors of compromised wallets, which quickly intensified as more users reported unauthorized transactions. In response, Banana Gun has committed to reimbursing the affected users.
This incident highlights the inherent risks in decentralized finance (DeFi) platforms and raises questions about the true level of security they offer.
The event underscores the urgent need for enhanced security measures to protect users from such vulnerabilities.
“There is rumour that Banana Gun wallet's getting drained right now. But there is rumour that there are much more victims.”
While Yannick identified the initial issue, the situation quickly escalated beyond anyone's expectations.
Initial reports suggested that 36 users had lost $1.9 million. However, further investigation revealed the full extent of the breach: 11 users were ultimately affected, with total losses amounting to $3 million.
The attack exploited a novel vulnerability in the Telegram message oracle, impacting both Ethereum and Solana bots.
It seems cross-chain compatibility has become the ultimate enabler for exploiters. Who said innovation in crypto was dead?
In response to the chaos, the Banana Gun team swiftly shut down their Ethereum and Solana bots, attempting to halt the damage. While commendable, their efforts were too late to prevent substantial losses.
The attack was precise, targeting seasoned traders and crypto veterans—individuals expected to be more vigilant.
All victims were well-known in the crypto space, either through their social presence or trading expertise, highlighting the high cost of fame in this industry.
In a dramatic twist, reminiscent of a Christopher Nolan film, victims watched in real-time as the attacker manually transferred ETH from their wallets.
It added a painful, interactive dimension to an already distressing situation, akin to watching your portfolio plummet during a bear market.
Banana Gun's incident report highlights a series of security measures that, in hindsight, should have been in place from the start.
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