Multichain Bridge Hacked For $121M 🫣

GM. This is Degen Scoop. It’s Friday, here’s the scoop:

• Multichain Bridge Hacked For $122M 🫣

• NFT Royalties At Two Year Lows 🪹

• IMF: Bitcoin Tax Evasion Inevitable 🧾

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Multichain Experiences Nine Figure Losses in Hack

It’s been some time since we’ve seen such a large hack occur. At the time of this writing, the wallet has lost over $122M but seems to have contained the losses. It’s not clear what was the cause behind the hack and the team is currently investigating to discover the root cause.

We do hope that none of our readers were affected by this hack. With that being said, avoid keeping funds on bridge and stick to native assets to prevent this from happening. This will provide a detailed list of events in the order that they happened. The story is still developing.

NFT Royalties At Their Lowest in Two Years

In a bear market, volumes go down across the board and this includes more than just trading of tokens. The shining toy of the last bull market is getting its fair share of pain as well as volumes continue to drop. The largest projects have large treasuries, but NFTs that are not considered to blue chips are hurting. This leads to projects dying (possibly a good thing) and artists losing revenue.

Blur is arguably a large culprit. Long story short, Blur came onto the market with an 0.5% fee, much smaller than the 2.5% of OpenSea, and did not mandate collection royalties. The unfortunate effect of this is that many projects saw a significant decrease in revenues. Traders will avoid fees as it hurts their bottom line. Blur is a great tool for NFT traders, but has arguably caused more damage to the NFT market than the good it has done.

Bitcoin Tax Evasion is Unstoppable By Just AML, According to IMF

In a recent paper from the IMF regarding the taxation of crypto currency, they claim that anti-money laundering (AML) regulations aren’t a cure-all. Granted, both KYC and AML do prevent a lot of tax evasion from occurring, the two won’t be able stop everything. It’s easier to prevent tax evasion in TradFi because funds moving around on TradFi rails are easier to keep an eye on.

The IMF also claims that crypto provides criminals with new tools to evade taxation, but that’s a flimsy argument. Blockchain at its core is a digital ledger that exists forever as long as a single node is running. Sure, criminals may be able to move four or five figure sums but this doesn’t scale well. It’s not realistic to assume criminals will be swapping crypto OTC for off-chain funds for seven figures and up.

Notable NFT Sales in the Last 24 Hours:

Notable Threads You May Have Missed:

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.