Indian railways to explore NFT ticketing during Holi festival

Shapella Upgrade to Have limited Impact on ETH’s Selling PressureThe Shapella upgrade on the Ethereum network scheduled to take place on Wednesday will only have a limited impact on the selling pressure on ETH, according to a report by the research center at Korean cryptocurrency exchange Korbit.©Pexels/JievaniShapella upgradeOne of the key features of the Shapella upgrade is to allow withdrawal of staked ETH. This upgrade follows September’s Merge upgrade that switched the Ethereum network’s consensus algorithm from Proof of Work to Proof of Stake, significantly reducing electricity consumption.Impact on selling pressureTo predict the impact of the Shapella upgrade on the selling pressure on ETH, the analysts at Korbit Research calculated the amount of time it takes for all the ETH staked as of March 22 to be withdrawn. They believe this calculation is relevant because withdrawals of staked ETH could trigger bulk sales, potentially imposing a greater selling pressure on ETH.According to the findings, the daily sell volume for the first three days is expected to be 300,700 ETH, 0.254% of the circulating supply. This volume will gradually decrease to 43,000 ETH for the next six months and to 29,000 ETH for the following six months, each corresponding to 0.035% and 0.024% of the circulating supply, respectively.All in all, bulk selling of ETH is not likely, considering it will take about a year and five months for all the staked ETH to be withdrawn and that the amount of withdrawable ETH will stay relatively low for each period. Furthermore, since this analysis assumes an extreme case, the market will be able to effectively handle the volume over the six month to 18 month period.4 other reasonsIn addition, Korbit Research outlined four other aspects that limit the selling pressure on ETH.Firstly, there is some concern that the selling volume of ETH may increase due to unstaking resulting from the cessation of staking services at American crypto exchange Kraken. However, a decrease in the number of validators on the Ethereum network will raise the base reward. This may prompt those who unstaked ETH to stake them on other platforms, rather than selling them.Second, ETH locked up at liquidity staking protocols such as Lido Finance and Rocket Pool provide liquidity for representations of staked ETH. These platforms allow users to stake fewer than 32 ETH for rewards. According to a February Binance Research report, 57.7% of ETH stakers enjoy liquidity and rewards. Therefore, there may be a limited impetus to divest of staked ETH.Third, since only 41.1% of ETH stakers are seeing profits as of the time of writing the report, the remaining stakers would have to risk losses when withdrawing ETH. This suggests that those not yet seeing profits are more likely to keep ETH staked. Furthermore, Dune Analytics data shows that most of the ETH stakers with gains staked ETH when its price was relatively low, which indicates that they participated in staking in early days. Shivam Sharma, the author of the aforementioned Binance report, states that these ETH stakers are likely “some of the strongest Ethereum believers.”Lastly, despite the Shapella upgrade, ETH withdrawals at different staking pools may not be initiated immediately. This could limit the circulation of withdrawable ETH, which in turn would hinder the selling pressure on ETH.Macroeconomic factorsThe Korbit researchers concluded their paper with a note that the selling pressure on ETH will be more influenced by macroeconomic factors than technical factors. They added that a possible downturn in the overall economy and corrections in risky asset markets might lead investors to sell ETH.

Socket, a cross-chain infrastructure protocol, and its interoperability bridging platform, Bungee, have restarted operations following a temporary pause prompted by an exploit that led to the apparent theft of $3.3 million.Photo by Anna Tarazevich on PexelsSecurity incidentTaking to the company’s Discord, Socket team hospitality lead Taylor Melvin clarified that it had “experienced a security incident which affected wallets with infinite approvals to Socket contracts.” The incident, which occurred on Tuesday, involved an unknown attacker draining millions worth of stablecoins and other tokens from the Bungee bridging aggregator. The attackers targeted wallets with infinite approvals to Socket contracts, exploiting authorizations for blockchain-based tools that allow applications to access tokens in a user's wallet. Security researcher "@speekaway" was the first to flag the exploit on Tuesday. The attacker's wallet, connected to the exploit, held nearly $3 million in ether (ETH) and $300,000 worth of other tokens. By 2:47 p.m. ET, the attack seemed to have ceased, with the researcher recommending users to revoke approvals for Socket to safeguard their assets. Pausing contractsIn response to the security breach, Socket announced the pause of affected contracts on Tuesday at 3:15 p.m. ET. The project's team promptly identified and addressed the issue, taking swift action to mitigate the exploit's impact. @speekaway chimed back in once contracts had been paused, writing:”Think this pause fixed it, very likely no more attacks are possible. So if you are currently freaking out about revoking you can probably relax.” Normal service returnsAs Socket paused activity during the incident, preventing further propagation of the attack, developers worked to fix the issue. Early Wednesday, Socket developers announced that the problem had been resolved, and normal activities had resumed. The team also stated that plans for compensation were in progress. Cross-chain bridges, like Socket's Bungee, facilitate token transfers between different blockchains but remain susceptible to exploitation. Blockchain security and data analytics company PeckShield confirmed that at least $3.3 million had been lost, highlighting the need for enhanced security measures in the rapidly evolving blockchain ecosystem. The exploit involved the exploitation of a recently added route, which has since been disabled. The attacker targeted users who had over-approved Socket, draining funds up to the limit of their approval. This incident follows the $81 million hack of Orbit Chain, a cross-chain bridge connecting Ethereum to other networks, earlier in January. Cross-chain tools' complexity contributes to the frequency of such attacks, emphasizing the importance of understanding the security measures in place when utilizing these bridges. In a message to CoinDesk, Sergey Nazarov, co-founder of Chainlink, emphasized the need for users to scrutinize the security of their chosen bridge, considering the various levels of cross-chain security. With the complexities involved, users are encouraged to be vigilant and informed about the security spectrum of the bridges they employ. Socket was founded by Indian duo Rishabh Khurana and Vaibhav Chellani. In September, the company raised $5 million, with funding coming from Framework Ventures and Coinbase Ventures. 

Hong Kong’s Metalpha Secures $5M Investment from BitmainMetalpha Technology Holding, a Hong Kong-headquartered crypto-based wealth management company, has recently announced a significant milestone for its Next Generation Fund I. The fund, put together in collaboration with NextGen Digital Venture Limited, has secured a strategic investment of $5 million from Bitmain, a prominent player in the crypto space.Photo by Pixabay on PexelsFund expansionThe timing of this investment is noteworthy as Metalpha’s licensed fund products are experiencing rapid growth. These products cater to the increasing demand for exposure to cryptocurrencies among institutional investors, family offices, and high net worth individuals. The Next Generation Fund I serves as a regulated and compliant avenue for investing in the Grayscale Trust’s digital asset investment products through structured derivatives.Having set a target capital raise of $100 million, the fund had already secured $20 million by March of this year, demonstrating a strong market interest. This additional $5 million investment from Bitmain further solidifies Metalpha’s position and potential for expansion.Adrian Wang, the President of Metalpha, commented on the development: “We aim to capitalize on the fast growing digital assets industry here in Hong Kong and provide our clients with competitive, complaint products worldwide.”Founded in 2015, Metalpha aims to provide customers with high-quality investment products and trading capabilities. The company, which went public in October 2017, claims to deliver the best structured derivative products to participants in the cryptocurrency market.Strategic investmentThe strategic investment from Bitmain not only brings substantial financial backing to Metalpha’s Next Generation Fund I but also signifies the confidence that industry leaders have in the company’s potential. Bitmain’s reputation as a prominent manufacturer of cryptocurrency mining hardware lends credibility to the investment and serves as a testament to Metalpha’s position in the market.The digital assets sector has had to deal with a 2022 bear market and macroeconomic headwinds. Notwithstanding that, the investment is timely and while we are not in bull market conditions, the space remains progressive, working towards ongoing adoption. Institutional investors, in particular, are increasingly seeking exposure to digital assets as part of their diversified portfolios. Metalpha’s licensed fund products provide a regulated and compliant solution to meet this demand, offering investors a secure and structured way to access the cryptocurrency market.Asian hubHong Kong, as a global financial hub and aspiring crypto hub, has witnessed substantial interest in digital assets in recent months. The region’s supportive regulatory environment, combined with its proximity to major Asian markets, makes it an attractive destination for companies like Metalpha to operate and grow. The autonomous Chinese territory’s credentials have been bolstered in that respect recently with a move to permit retail crypto trading while enabling aspiring digital asset unicorns.The $5 million investment from Bitmain will enable Metalpha to further enhance its fund offerings, expand its reach, and strengthen its position as a leader in crypto-based wealth management. With the financial support and industry expertise of Bitmain, Metalpha can leverage this partnership to drive innovation and develop new investment opportunities for its clients.As the digital assets industry continues to evolve and mature, companies like Metalpha play a crucial role in bridging the gap between traditional finance and the crypto space. By providing regulated investment products and maintaining compliance with regulatory frameworks, Metalpha contributes to the overall growth and legitimacy of the cryptocurrency market.