Good Morning Crypto Enthusiasts!

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

We’re coming to you a few hours late today as our reporters have been following all of the latest drama related to the Ledger incident that was first reported this morning. Now that the dust has settled we are bringing you all of the latest info on the Ledger hack.

TLDR: “Hackers inserted malicious code into Ledger's ConnectKit library. It is highly advised to not connect to any DApps until confirmation that the issue has been fixed.” - Jonathan Gibson, Editor, UseTheBitcoin.com

Without anymore delay let’s hop right into today’s first story…

📰 News Highlights:

🚨Security Alert: Hackers Turns Ledger into Trojan Horse (Link) (Link) (Link) (Link)

Crypto chaos erupted today when several major several decentralized applications (DApps) such as SushiSwap, Zapper, Balancer, Revoke.cash, and others started reporting that their users were having problems using Ledger's connector library.

SushiSwap’s eagle-eyed CTO, Matthew Lilley was the first to publicly announce the issue. Squarely placing the blame on Ledger.

The culprit behind the hack? A hidden line of code injection into Ledger's ConnectKit, a once trusted link between hardware wallets and decentralized applications (DApps).

The hacking method was deviously simple. Upon connecting their Ledger wallets to the compromised DApps, users were bombarded with fake prompts, mimicking the legitimate Ledger interface. These fakes lured victims into unknowingly granting hackers access to their crypto. The result? Stolen funds and drained wallets, leaving users scrambling to contain the damage.

In an official statement, SushiSwap warned users to avoid any unexpected "Connect Wallet" pop-ups:

While funds held on hardware wallets like Ledger devices remain secure, users could unknowingly approve transactions that result in theft if they connect to any compromised DApps.

Latest Update: Ledger has now released an official statement on its X account.

This incident serves as a stark reminder for all DeFi users to exercise extreme caution and vigilance.

Remember that even established platforms and trusted tools can be compromised. Double-check connections, scrutinize prompts, and prioritize security above all else.

Stay vigilant, stay informed, and stay safe in the crypto jungle!

🚀 ETF Rollercoaster: SEC Now Pushing for Cash Redemption Model (Link) (Link) (Link)

In a whiplash move, the U.S. Securities and Exchange Commission (SEC) is now steering spot Bitcoin exchange-traded fund (ETF) issuers towards a "cash" redemption model. Recent updates reveal that ETF applicants like Invesco and Galaxy are aligning with this approach.

The SEC's preference for a cash redemption model contrasts with proposals from BlackRock and others favoring an "in-kind" model. The decision carries implications for ETF creation and redemption processes, impacting market dynamics. The crypto community is keenly watching these developments, anticipating potential SEC approvals in early 2024.

In the evolving crypto market, the competition and collaboration between regulators and innovators shape the future of financial instruments. While challenges persist, the industry's resilience and adaptability underscore its transformative potential.

📈 JPMorgan Predicts Ether to Outperform Bitcoin in 2024 (Link) (Link) (Link)

JP Morgan analysts forecast a significant shift in the crypto landscape in 2024, predicting that Ether will outperform Bitcoin and other cryptocurrencies. The basis for this projection is Ethereum's EIP-4844 upgrade, scheduled for the first half of 2024.

The upgrade introduces a more efficient form of sharding, enhancing Ethereum's network activity. JPMorgan remains cautious about overall crypto market trends but expects Ethereum's resurgence to be a key narrative in the coming year. The analysts highlight the importance of network upgrades in influencing market dynamics, emphasizing Ethereum's potential to capture greater market share.

In a broader context, JPMorgan's insights reflect the nuanced considerations and evolving narratives within the crypto space. The upcoming year holds promise for Ethereum as it navigates critical upgrades and market dynamics.

💱 Coinbase Expands Global Services: Spot Crypto Trading for Institutional Investors Outside U.S. (Link) (Link) (Link)

Coinbase is set to broaden its global reach by offering spot crypto trading services for institutional investors outside the United States. The move aims to address concerns related to the uncertain regulatory landscape in the U.S.

The expansion includes trading Bitcoin and Ether against USDC, with plans to extend services to retail investors and introduce additional tokens in the near future.

🌐Breaking Boundaries: Worldcoin Integrates with Minecraft, Reddit, Telegram, Shopify, and Mercado Libre (Link) (Link)

In a groundbreaking move, Worldcoin, founded by Sam Altman, is pushing the boundaries of blockchain identity verification. The “World ID 2.0” now integrates with major platforms like Minecraft, Reddit, Telegram, Shopify, and Mercado Libre. This evolution comes just four months after the project's public launch. 

The revamped World ID seeks to distinguish between bots and "verified humans" online, making it easier for developers to create seamless integrations. The move opens avenues for personalized interactions, such as Reddit moderators granting special permissions to World ID users or Shopify store owners enhancing fraud prevention.

Moreover, Worldcoin is expanding its reach by extending its onboarding operations to Mexico and Singapore. Despite facing challenges, including a ban in Kenya earlier this year, Worldcoin has gained significant traction, with nearly 5 million people globally adopting World ID. The company's commitment to constant improvement and inclusivity aims to shape the future landscape of decentralized identity verification.

💡 Feature of the Day:

⚡ Immutable's zkEVM to Eliminate Web3 Gaming Gas Fees (Link) (Link) (Link)

Immutable, is set to revolutionize the gaming experience by eliminating gas fees for users through its zkEVM scaling platform. Gas fees, a significant barrier to mainstream Web3 gaming adoption, will be sponsored by Immutable, providing a frictionless onboarding experience. 

The proprietary zero-knowledge proof-based scaling platform is scheduled to go live in early 2024.

As Web3 gaming continues to evolve, Immutable's innovative approach sets the stage for enhanced user adoption, paving the way for a seamless transition from traditional gaming to blockchain-based experiences.

😂 Crypto Memes of the Day: 

Due to the recent hack users like @gabrielHanes have actually taken to twitter to roast Ledger and voice their disappointment in a humorous way.

All chuckles aside our heartfelt condolences go out to the victims of this attack and we hope that Ledger steps up to correct the problem ASAP.

Stay tuned for our Friday edition as we wrap up another exciting week in the crypto world!

See you again tomorrow,
Jonathan Gibson
UseTheBitcoin.com