Daily Update - November 12, 2020- Infura Down, Exchanges block ETH Withdrawals

Total Market Cap $447.3 BN (+1.36%)

24 Hour Volume $111.2 BN (-12.99%)

Notable Movers Loopring (LRC) (+39.80%)

BTC Dominance 63.8% (-0.47%)

Markets are going through a minor sell off this morning in Asia, shedding most of the gains from the American trading session.  Volumes have waned slightly with Veteran’s Day interrupting US banking services for the holiday. 

  • $ETH is forcing all providers to update their software with its unannounced fork. There was a temporary disruption in the blockchain after a code change split the network’s transaction history in two, significantly affecting the DeFi sector with Metamask, MakerDAO, Uniswap, Compound and MyCrypto down via the Infura platform and all coin movements on the chain. Some exchanges suspended withdrawals as they coped with the remediation.

  • $ETH price dropped 2.5% over the past eight hours to 458 levels on the news, but is still trading up 5.3% (week to date) with ETH 2.0 seeing 50k ETH already staked in its contract

  • $BTC was unable to break through 16K last night and has corrected down to 15,600 levels on 29B traded volumes. Not a surprising move with an overdue market correction expected with $BTC’s 20% month to date ascent (and +51% over the past 3 months). 

  • Ray Dalio expects governments to make moves towards “outlawing” $BTC in the future if prices keep increasing, also mentioning in the article that “Bitcoin and other cryptos are too volatile to be considered an effective store of wealth…vendors won't know how much they're getting”

  • Almost $525m in $BTC options set to expire on Friday, expecting more volatility today and tomorrow as traders may start to hedge their positions.

Alts and DeFi watch:

  • DeFi sector maintained 13.5B TVL, with most deft-related coins seeing a sell-off larger than the major coins

  • Largest drop last night came from $AAVE and $SNX:  $AAVE dropped 12% to 56 levels after moving closer to its ATH with +103% over the past seven days while $SNX also dropped 12.6% to 4.05 levels after moving +56% over the past eight days

Ethereum Infrastructure Provider Infura Is Down, Crypto Exchanges Begin to Disable ETH Withdrawals

The outage has also caused crypto exchanges, including Binance and Bithumb, to disable ETH and ERC-20 tokens withdrawals. The popular Ethereum wallet MetaMask is also having difficulties since Infura is its default service provider. (Both MetaMask and Infura are owned by Ethereum development studio ConsenSys). At 11:23 UTC, Infura said the root cause was traced to several components within its infrastructure, which were locked to an older stable version of the Go-Ethereum client that encountered "a critical consensus bug at block 11234873."

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Monero Hit by Sybil Attack From 'Incompetent Attacker'

The attack was trying to gain information about users on the Monero blockchain. Monero maintainer Riccardo Spagni says it was largely ineffective. Recent Monero updates have made it more resistant to such attacks.

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Ethereum 2.0 Deposit Contract Tops $22.5M One Week After Launch

This deposit contract is the cornerstone of the Ethereum 2.0 update and serves as a bridge for the migration Ethereum network away from proof-of-work (PoW) to a new technical infrastructure that supports proof-of-stake (PoS). In order to become a transaction validator on the new network (those individuals who process transactions like miners in PoW), an Ethereum user must stake at least 32 ETH.

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Joe Biden Transition Team Adds Former CFTC Chair and Crypto-Focused Academic Gary Gensler

As CFTC chair, Gary Gensler oversaw substantial reforms to the financial derivatives market mandated under the 2010 Dodd-Frank act. But more relevant to cryptocurrency users is his most recent posting at MIT, where he is a professor of global economics at the business school and senior advisor to the MIT Media Lab’s influential Digital Currency Initiative.

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ShapeShift Confirms Regulatory Risk Led to Privacy Coin Delistings

A ShapeShift executive confirmed the platform has delisted Monero, Dash, and Zcash. All three are privacy coins, some of which have drawn scrutiny from US regulators. While ShapeShift is "de-risking" the company, several US exchanges still offer these coins.

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Bitcoin and Gold Cannot Coexist, Says MicroStrategy CEO

Michael Saylor is the CEO of business intelligence company MicroStrategy, which is heavily invested in Bitcoin. Today, Saylor suggested Bitcoin and gold aren’t so similar, contrary to the "digital gold" narrative. When Bitcoin is fully realized as an asset class, it will come at gold's expense, he claims.

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Lebanon Will Launch Its Own Digital Currency in 2021: Report

Lebanon's central bank is reportedly moving toward the launch of a digital currency next year, according to a Tuesday report. Bloomberg, citing Lebanon's National News Agency, reported that the digital currency is intended to shore up "confidence" in the country's banking system. Riad Salameh, the central bank governor in Lebanon, has said as far back as mid-2019 that such a project was in the works.

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Uniswap ‘Community Call’ Will Discuss Extending Liquidity Mining Rewards

Leading decentralized exchange (DEX) Uniswap has announced an "unofficial community call" set for Nov. 12 at 12 noon ET. The call is scheduled to discuss several core governance issues central to Uniswap, including the future of its liquidity mining program. Uniswap’s current liquidity mining program is scheduled to end on Nov. 17, with the call set to discuss whether to extend the existing program or revise the scheme

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