Citizen Daily Brief

DeFi's Big Scare ($)

Weekly Recap: Ledger faces attack, more Trump NFTs. gm Bankless Citizen.
Dec 16, 20235 min read
DeFi's Big Scare
Published on Dec 16, 2023
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Return of Good Times™

📊 Roaring Twenties rerun? Crypto assets are down slightly on the week, taking a well-deserved break from the pump after 8 consecutive weeks of green candles, but interest rate optimism has market participants heralding the return of the bull market! How much further can we run?

Prices as of 6pm ET 24hr 7d
Crypto $1.59t ↘ 2.0% ↘ 3.0%
BTC $42,112 ↘ 2.1% ↘ 5.0%
ETH $2,244.04 ↘ -2.9% ↘ 5.2%
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Ledger's Code Red

1️⃣ Ledger security scare

Hardware wallet company Ledger just faced a huge security threat. 

The attack, originating from a compromised software library within Ledger's ConnectKit, led to malicious code injection in the frontends of numerous apps. The breach posed a serious risk to Ledger users and their assets, prompting multiple projects like RevokeCash to temporarily disable their websites.

The "supply chain attack" ended up netting the attacker approximately $500k USD worth of crypto across various tokens. Ledger has since implemented a patch, and the coast seems clear for now, but the episode is a massive reminder to never take anything for granted in crypto. 

2️⃣ Pudgy World unveiled

The Pudgy Penguins are going metaversal!

The popular NFT project just announced "Pudgy World," an immersive Web3 game powered by zkSync Era, the Layer 2 (L2) scaling solution. The game, set to launch in alpha in Q1 next year, will be open to all, with special perks for Pudgy NFT holders and Pudgy toy purchasers. 

On the heels of the growing success of the Pengus, including a high-profile collaboration with Walmart and a recent floor price resurgence, Pudgy World offers a new opportunity for the collection to take its next leap forward and reach new audiences. 

3️⃣ Synthetix ends SNX inflation

Synthetix, the OG DeFi derivatives protocol, just passed governance proposal SIP-2043, which put an end to SNX token inflation—a system that was started in 2018 and helped inspire today’s modern yield farming scene.  

The big move shifts Synthetix’s focus to new strategies, including token buybacks, as part of the project’s forthcoming Andromeda software release. After this update, Synthetix will use its trading fees for buybacks and burns, aiming to reduce the SNX supply and strengthen the token’s economic model going forward. 

4️⃣ Trump drops new NFTs

Here’s a sentence we thought we’d never write: Former President Donald Trump just launched his latest NFT series, the “Mugshot Edition” collection. 

Anyone bullish enough to ape the special number of trading cards—47 editions for ~$5k—will earn an invitation to Trump’s next gala dinner and receive a complementary physical trading card containing a piece of the actual suit he wore during his infamous Georgia mugshot picture.

It sounds crazy, it is crazy, but also people have traded a lot less for a lot more in crypto before. Just another day on the NFT frontier at this point. 

5️⃣ Rainbow Points arrive

Rainbow, the crypto wallet, just unveiled a points program aimed at rewarding Ethereum users for their onchain actions. It’s not clear what the points will lead to yet, but most everyone’s presumption is an airdrop’s in the works. 

To kickstart the program, Rainbow captured a snapshot of Ethereum user activity, using it to determine distributions starting with minimum allocations of 100 points per address. Additional points were given to users who used the MetaMask Swap service over the past year, a strategic move to draw users from Rainbow’s biggest competitor. 


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