Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of theUseTheBitcoin.com newsletter.

1. WazirX $235M Hack: WazirX, a major cryptocurrency exchange in Mumbai, suffered a significant security breach, losing over $235 million from a multisig wallet.

2. Winklevoss Twins Donation: Tyler and Cameron Winklevoss each donated $500,000 in bitcoin to support John Deaton, a Republican candidate running against Senator Elizabeth Warren in Massachusetts.

3. 📈Technical Analysis Masterclass - Have you heard about Shorting in crypto? In the volatile world of cryptocurrency trading, shorting plays a crucial role. Watch UseTheBitcoin’s latest Youtube video “I have been shorting Ripple recently (XRP)” to learn more about short positions or join our Official Discord Channel for more alpha!

4. Kraken Expands to UK and Australia: Kraken has expanded its Kraken Custody services to the United Kingdom and Australia, targeting institutional clients in these regions.

5. Li.Fi $11M Hack: Li.Fi, an API for bridging and swapping digital assets, released an incident report following an $11.6 million exploit. The breach was due to a vulnerability in a newly deployed smart contract, affecting 156 wallets with “infinite approvals” turned on.

6. 💡Feature of the Day - Spot Ether ETF Fee War: As spot Ether exchange-traded funds (ETFs) near launch, issuers are engaging in a fee war to attract investors. Nearly all new Ether ETFs are offering fee waivers or significant discounts.

   
   All this and more in today’s headlines!

📰 News Highlights:

WazirX $235M Hack [Source][Source][Source]

WazirX, a prominent cryptocurrency exchange based in Mumbai, experienced a major security breach resulting in the theft of over $235 million from one of its multisig wallets. The incident has prompted WazirX to halt all Indian rupee withdrawals as investigations are underway.

Crypto withdrawals were already suspended, causing concern among users. The exchange described the hack as a “force majeure event beyond our control” and pledged to recover the stolen funds. The suspected hacker’s Ethereum address was identified, having been funded via Tornado Cash.

The compromised wallet utilized services from Liminal's digital asset custody and wallet infrastructure. Liminal has disclaimed responsibility for the incident.

Security experts, including Valerian Callens from Quantstamp, emphasized the need for strict adherence to security best practices to prevent such exploits. On-chain analysis suggests the involvement of the North Korean Lazarus hacking group, known for similar attacks.

Winklevoss Twins Donation [Source][Source]

The Winklevoss twins, Tyler and Cameron, have each donated $500,000 in bitcoin to support John Deaton, a Republican candidate running against Senator Elizabeth Warren in Massachusetts.

Tyler Winklevoss criticized Senator Warren, calling her crypto’s "public enemy number one" and accusing her of driving the Biden Administration’s anti-crypto policies. Deaton, described as pro-bitcoin and pro-crypto, aims to unseat Warren in the upcoming election.

This substantial donation follows Ripple Labs’ contribution of $1 million to a super political action committee supporting Deaton.

The Winklevoss twins have been active in the political sphere, previously endorsing and financially supporting former President Donald Trump’s campaign. Their involvement underscores the increasing intersection of cryptocurrency advocacy and U.S. politics.

📈Technical Analysis Masterclass:

I Have Been Shorting Ripple Recently (XRP)

Recently, I initiated a short position on XRP as it approached the resistance levels of $0.60 to $0.63. This decision was based on the observation that investors who bought XRP at lower prices might seize the opportunity to sell as prices moved upwards.

Understanding Shorting in Crypto Trading

• Definition: Shorting involves selling an asset at a higher price with the intention of buying it back at a lower price. It's the inverse of traditional trading (buy low, sell high).

• Profit Mechanism: You profit from the decline in the asset's price.

The Role of Resistance Levels

• Critical Analysis Tool: Resistance levels represent points where the price of an asset faces upward pressure.

• Psychological Barriers: These levels often lead to a price drop as sellers outweigh buyers.

• XRP Case: The $0.60 to $0.63 range was identified as a resistance level, suggesting a potential reversal or consolidation.

Using Fibonacci Retracement for Profit Targets

• Tool for Anticipating Profit Levels: Fibonacci retracement helps identify key levels where the price might find support during a retracement.

• Key Levels for XRP: The $0.52 to $0.54 range aligns with the 50% and 61.8% retracement levels, known as the "golden ratio."

Why Fibonacci Levels Matter

• Derived from the Fibonacci Sequence: These levels are widely used in technical analysis to predict potential reversal points.

• Common Levels: 38.2%, 50%, and 61.8% are frequently used to identify support or resistance.

• Importance for Traders: Crucial for setting profit targets and entry points.

Reentering the Market

• Monitoring Price Action: Keep an eye on price behavior at the Fibonacci golden levels ($0.49, $0.52, $0.54).

• Strategic Entry Points: These levels often act as strong support, indicating potential moments to reenter the market.

Kraken Expands to UK and Australia [Source][Source]

Kraken, the well-known cryptocurrency exchange, has announced the international expansion of its Kraken Custody services to the United Kingdom and Australia, aims to provide secure digital asset custody solutions, essential for institutions to store, manage, and scale their strategies in the crypto market.

Tim Ogilvie, Kraken’s global head of institutional, described the expansion to the UK and Australia as a "natural choice" for the company. The service has been well-received in the U.S. and is expected to see similar success internationally.

Additionally, Kraken has formed a partnership with UK football club Tottenham Hotspur, becoming the team’s first official crypto and Web3 partner.

Li.Fi $11M Hack [Source][Source][Source]

Li.Fi, an API used for bridging and swapping digital assets across blockchains, has released a detailed incident report following an $11.6 million exploit.

The breach was traced to a vulnerability in a newly deployed smart contract facet, allowing the attacker to initiate unauthorized contract calls. The exploit affected 156 wallets with the “infinite approvals” option turned on, while users without this option remained unaffected.

The Li.Fi team has since contained the exploit, addressed the critical vulnerability, and notified law enforcement. The protocol is now operating normally.

This incident is reminiscent of a similar hack in March 2022, where $600,000 was drained from 29 wallets. In both instances, Li.Fi responded by reimbursing affected users and implementing measures to prevent future breaches.

💡 Feature of the Day: 

Spot Ether ETF Fee War [Source][Source]

As the launch of spot Ether exchange-traded funds (ETFs) approaches, a fee war has erupted among issuers. Documents filed with U.S. regulators reveal that nearly all of the soon-to-be-listed Ether ETFs are offering fee waivers or significant discounts to attract investors.

These promotional discounts range from full waivers to 50% reductions, varying in duration from six months to a year or until a certain asset threshold is reached.

Franklin Ethereum ETF (EZET) has positioned itself as the frontrunner in this fee race, offering a full waiver for one year or until it reaches $10 billion in assets under management (AUM). Its baseline fee of 0.19% is the lowest among competitors.

Other ETFs, including those from Grayscale and Invesco, have opted out of the fee war, with Grayscale sticking to its longstanding management fee of 2.5% for its Ethereum Trust.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com