Edgen Crypto·Nov 23 2025, 00:33
[1] Whale Alert: New Wallet Receives 21537 ETH ($60.04M) from ... (https://blockchain.news/flashnews/whale-alert ...)[2] FalconX: Largest Institutional Crypto Prime Brokerage (https://www.falconx.io/ ...)[3] New Wallet Receives Significant ETH Transfer from FalconX - Binance (https://www.binance.com/en/square/post/08-19- ...)
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Nov 23 2025, 00:31
Port3 Network Exploited: Attacker Mints 1B Tokens, Crashes Price, Then Destroys Supply
## Executive Summary The **Port3 Network** has suffered a significant security exploit, resulting in the unauthorized minting of 1 billion **$PORT3** tokens. The attacker subsequently executed a large-scale dump of the tokens on the open market, leading to a severe price depreciation. In a final, unusual step, the perpetrator destroyed the remaining illicitly created tokens. This event underscores persistent security risks within the DeFi sector, particularly concerning smart contract vulnerabilities that permit supply manipulation. ## The Event in Detail The attack unfolded in a clear sequence. First, an unidentified entity exploited a flaw in the **Port3 Network's** protocol, gaining the ability to create new tokens. This vulnerability was leveraged to mint 1 billion **$PORT3** tokens, an action that massively inflated the token's circulating supply. Immediately following the minting event, the attacker began liquidating the illicitly acquired assets on various cryptocurrency exchanges. The sudden and massive increase in sell pressure triggered a rapid price collapse. The final phase of the attack involved the attacker sending the remaining un-dumped tokens to a burn address, effectively destroying them and permanently removing them from the supply. ## Financial Mechanics of the Exploit Unlike exploits that drain liquidity pools or steal existing assets, this attack centered on manipulating the token supply itself. By minting new tokens, the attacker created value out of thin air, which was then realized by selling into the existing market. This method directly devalues the holdings of all legitimate token owners through hyperinflation. The destruction of the remaining tokens is an atypical action. While the motive is not confirmed, it could be interpreted as an attempt to erase trails or simply as a final, definitive action to conclude the exploit, ensuring the remaining illicit tokens could not be frozen or recovered. ## Market Implications and Precedent The immediate market reaction was a loss of confidence and a significant drop in the valuation of **$PORT3**. This incident draws parallels to previous exploits in the DeFi space, such as the **Yala** hack. In that event, an attacker also illegally minted tokens by exploiting a cross-chain bridge, converting them into other assets like **$ETH**. However, the **Port3** exploit differs from incidents like the **Poly Network** hack, where the attacker eventually returned the funds, claiming to be a "white-hat" hacker exposing vulnerabilities. The actions of the **Port3** attacker—dumping tokens for profit—indicate clear malicious intent. Such events damage investor confidence not only in the specific project but also in the broader ecosystem, reinforcing the need for rigorous code audits and security measures. ## Broader Context: Smart Contract and Bridge Security This event again places a spotlight on the critical importance of robust smart contract security. The ability to mint new tokens should be one of the most protected functions of a token contract. Furthermore, a number of recent high-profile exploits, including those affecting **Harmony's Horizon Bridge**, have involved vulnerabilities in cross-chain bridge technology. These bridges, while essential for interoperability between blockchains, create additional attack surfaces. This incident serves as a stark reminder that as the DeFi landscape matures, attackers are increasingly targeting fundamental protocol logic and cross-chain infrastructure, necessitating a more sophisticated and layered approach to security from development teams.
Nov 22 2025, 19:04
Coinbase to Launch 24/7 Altcoin Futures, Introduces Regulated Perpetual-Style Contracts
## Executive Summary **Coinbase Derivatives** has announced a significant expansion of its trading services, set to take effect on December 5. The exchange will introduce 24/7 trading for monthly futures contracts tied to several major altcoins, including **Dogecoin (DOGE)**, **Shiba Inu (SHIB)**, **Cardano (ADA)**, and **Avalanche (AVAX)**. Concurrently, Coinbase is launching a new U.S. Perpetual-Style Futures product. This instrument is designed to offer U.S.-based traders a regulated, capital-efficient method for gaining exposure to cryptocurrency price movements, directly competing with the dominant perpetual futures market found on offshore exchanges. ## The Event in Detail Starting December 5, **Coinbase Derivatives** will extend its continuous trading hours to all its altcoin monthly futures contracts, moving beyond its current offerings for **Bitcoin (BTC)** and **Ether (ETH)**. This development allows U.S. traders to speculate on the price of these altcoins at any time, aligning the exchange’s operating hours with the ceaseless nature of global crypto markets. The expansion aims to increase liquidity and trading volume for the newly included digital assets on a regulated U.S. platform. ## Financial Mechanics of Perpetual-Style Futures Alongside the 24/7 trading expansion, **Coinbase** is launching a novel financial instrument for the U.S. market: the U.S. Perpetual-Style Future. Unlike traditional futures that have a set expiration date, international perpetual futures roll over continuously and have become the most popular crypto derivatives product globally, accounting for over 90% of derivatives trading activity in some reports. To adhere to **CFTC** regulations, Coinbase's version is structured as a long-dated futures contract with a five-year expiration. However, it is engineered to closely track the spot price of the underlying asset, offer leverage, and be cash-settled in U.S. dollars. This structure provides the functional utility of a perpetual future—simplified long-term strategy execution and risk management—within a compliant framework, eliminating the need for U.S. traders to use offshore workarounds. ## Market Implications and Competitive Landscape The introduction of these products marks a strategic push by **Coinbase** to capture a significant share of the crypto derivatives market. By providing a regulated, domestic alternative, the exchange is directly challenging offshore platforms that have long dominated this space. The move also intensifies competition within the U.S., where other regulated exchanges like **Cboe** are also introducing similar "Continuous futures" products to meet demand from both institutional and retail traders. The availability of regulated, perpetual-style contracts is expected to attract a new wave of capital from traders who were previously hesitant to engage with unregulated offshore venues. For the listed altcoins, the inclusion in these futures products is likely to enhance their market legitimacy, liquidity, and price discovery. ## Broader Context This initiative reflects a broader market trend toward developing regulated crypto derivatives in the United States. As regulatory clarity emerges, major financial institutions are creating compliant products that mirror the most successful instruments from the global market. Catherine Clay, Cboe’s head of derivatives, noted that "perpetual-style futures have gained strong adoption in offshore markets," and exchanges are now positioning to serve that demand domestically. This shift provides U.S. investors with greater access to sophisticated trading tools while operating within the established U.S. regulatory and legal frameworks, potentially altering the global distribution of crypto trading volume.
Nov 22 2025, 17:34
Report: $12B in DeFi Liquidity Sits Idle, Highlighting Widespread Inefficiency
## Executive Summary A new report on the state of Decentralized Finance (DeFi) has exposed critical inefficiencies within its core infrastructure, revealing that as much as $12 billion in digital assets lies dormant in liquidity pools. The analysis indicates that between 83% and 95% of all capital supplied to automated market makers (AMMs) is not being actively used for trading. This widespread capital inefficiency is disproportionately impacting retail participants, with data showing that approximately half of all liquidity providers (LPs) are incurring financial losses. ## The Event in Detail The central issue identified is the phenomenon of **impermanent loss**, a risk inherent to providing liquidity in AMMs where the price of deposited assets changes compared to their value if simply held. According to the findings, these potential losses are not being sufficiently compensated by the trading fees earned. The study highlights that roughly 50% of LPs on major platforms like **Uniswap V3** have suffered negative returns, contributing to a collective deficit exceeding $60 million. This problem is exacerbated by what experts describe as fragmented liquidity. Capital is spread thinly across thousands of isolated pools, many of which fail to attract significant trading volume. An OECD report on the matter confirms this high concentration, noting that the vast majority of trading volume occurs in a "tiny fraction" of available liquidity pools, predominantly on the **Ethereum** blockchain. ## Market Implications The report's findings present a significant challenge to the DeFi ecosystem's long-term viability and its appeal to mainstream investors. The high rate of loss among retail LPs could erode confidence and deter new capital from entering the space, thereby limiting growth. Furthermore, the data suggests that the current AMM model, while innovative, is structurally flawed, failing to provide sustainable returns for a large portion of its user base. This inefficiency represents a substantial opportunity cost and a drag on the overall health of the decentralized economy. ## Expert Commentary Financial analysts and protocol developers have pointed to these figures as evidence of an unsustainable model for retail participants. A study conducted by **Bancor**, a decentralized trading protocol, previously corroborated these findings, noting that 49.5% of LPs on Uniswap V3 experienced negative returns due to impermanent loss. In response, some industry experts are championing **concentrated liquidity** as a potential solution. This mechanism allows LPs to allocate their capital within specific price ranges where most trading occurs, rather than across an infinite spectrum. By concentrating liquidity, providers can theoretically improve capital efficiency and earn higher fees from the same amount of assets, offering a more active way to manage risk and potentially mitigate impermanent loss. ## Broader Context This liquidity crisis is symptomatic of a broader structural issue within DeFi: market fragmentation. Even on integrated blockchains, liquidity remains siloed in isolated pools, preventing capital from flowing to where it is most needed. The over-concentration of activity in a handful of protocols and pools indicates a market that is still maturing. As the DeFi sector evolves, addressing these fundamental inefficiencies will be critical for fostering a more stable, efficient, and trustworthy financial ecosystem capable of supporting sophisticated, high-volume trading.