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Asian VCs Invest $100M Into Assembly Blockchain
A few of the largest Asian venture capital firms and crypto hedge funds will invest $100M into a new blockchain called Assembly under the IOTA network.
Assembly will begin by focusing on major niche categories such as decentralized finance (DeFi), NFTs, and P2E games.
LD Capital, Signum Capital, Huobi Ventures, UOB Venture Management, HyperChain and CapitalDu Capital led the round.
Iota co-founder Domink Schiener said, “Assembly is now its own network that's built on top of IOTA and enables anybody to create their own blockchain network. And this blockchain network is deemed secure and connected through IOTA”
Opinion: This capital lays the foundation for explosive growth on the layer-1 chain. It appears this investor cohort is mirroring the moves made by crypto VC firms over the past two years. By deploying vast amounts of capital for hackathons and infrastructure upgrades - an innovation cycle is catalyzed. During the innovation cycle we often observe the proliferation of DeFi protocols, NFTs, GameFi, and metaverse projects. This in return this attracts speculators and bootstraps a user base.
However, the quality and experience of investors weighs heavily on the overall outcome. I believe just like new retail investors, many non-crypto orientated investments funds are feeling the FOMO. They’ve probably heard of crypto funds making a killing this cycle and are quickly mobilizing to capture the big gains. This is likely to result in froth and misallocation as we approach the terminal stage of this cycle.
BadgerDao Post Morterm
On 12/2 authorized transactions resulted in loss of $120M in user funds.
The attack vector was Cloudflare the hacker/s were able to generate API keys to insert malicious scripts.
These scripts prompted users to allow a foreign address approval to operate ERC20 tokens in their wallet.
Post hack, Cloudflare API keys were rotated, passwords changed, the authorities were contacted.
Opinion: In past newsletters I’ve covered the inevitability of these hacks. During the early days we should expect hacks to be relatively common place. However, over time the industry will become more resilient and robust as they respond with defensive measures. I’m sure other DeFi protocols are preemptively beefing up their cybersecurity measures and security protocols as a result of this hack. In my view, they should also begin hiring cybersecurity experts and hosting security focused hackathons. Particularly protocols with total value locked exceeding 10 figures. These huge honey pots attract savvy hackers who will patiently and meticulously search for attack vectors.
Also, never put 100% of your net worth in any single protocol. Until the industry figures out how to socialize losses with comprehensive insurance, I would exercise extreme caution.
OTC & markets insights + Portfolio update below
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