Research Summary
This report provides an in-depth analysis of recent events in the crypto market. It begins with an examination of the issues surrounding Curve, emphasizing the vulnerability that resulted in a loss of ~$65 million. The analysis continues with the efforts of Curve’s founder, Michael Egorov, to address the debt and stabilize the situation through OTC sales of CRV. The report also investigates the trend of “shitcoins,” spotlighting $PEPE’s ascent and the subsequent meme coin patterns. It concludes with a discussion on the recent “shitcoin shenanigan” on Coinbase’s new L2, Base, centered around the token $BALD.
Actionable Insights
- Monitor Vulnerabilities: The reentrancy vulnerability in Curve pools resulted in significant losses. Continuous monitoring of such vulnerabilities is crucial for risk management.
- Understand Market Dynamics: The report illustrates how fear and speculation can lead to a reflexive loop, affecting prices and liquidity. Understanding these dynamics can inform investment strategies.
- Explore Emerging Trends: The rise of meme coins like $PEPE and the success of tokens like $BITCOIN and $UNIBOT highlight new opportunities and risks in the crypto market.
- Be Cautious with New Platforms: The incident with $BALD on Coinbase’s L2, Base, serves as a reminder to exercise caution when engaging with new and untested platforms.
