Edgen Crypto·Nov 06 2025, 13:53
[1] Regulators Must Protect The Architecture Of Freedom (https://cointelegraph.com/news/regulators-pro ...)[2] Decoding the SEC's Evolving Crypto Regulations - Bloomberg Tax (https://news.bloombergtax.com/financial-accou ...)[3] EU's Chat Control Law Sparks Privacy Concerns and Potential Shift to Web3 Platforms (https://vertexaisearch.cloud.google.com/groun ...)
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Nov 06 2025, 15:02
Stable Pre-Deposit Error Leads to $2.34 Million Loss for Over 60 Wallets
## Executive Summary Over 60 cryptocurrency wallets collectively lost more than $2.34 million during **Stable's** second phase pre-deposit activity due to users incorrectly entering the contract address as the receiving address, impacting user confidence in the platform. ## The Event in Detail During **Stable's** second phase pre-deposit campaign, a significant error led to over 60 user wallets misdirecting funds, resulting in a total loss exceeding $2.34 million. Users mistakenly input the contract address instead of the correct receiving address for their deposits. **Stable**, a Layer 1 blockchain focused on stablecoin transactions, recently initiated its second pre-deposit campaign. This initiative allows users to deposit stablecoins, primarily **USDT**, to earn future rewards linked to the network's upcoming native token and ecosystem incentives. The first phase of this campaign saw an $825 million deposit cap reached within approximately 22 minutes. The rapid filling of Phase 1 sparked controversy, with multiple **X** users alleging front-running and "insider" participation, citing on-chain data showing large wallet clusters depositing funds prior to the official announcement. This limited retail participation and led to negative community feedback. For Phase 2, **Stable** announced measures such as a per-wallet deposit limit and individual wallet requirements to prevent large deposits from single entities, although it did not directly address the Phase 1 controversy or explicitly guarantee simultaneous access for all participants. Despite these adjustments, the recent misdirection of funds underscores persistent challenges in user interaction and communication within complex decentralized finance (DeFi) protocols. ## Market Implications The $2.34 million loss directly impacts user confidence in the **Stable** platform and raises critical questions about user error prevention mechanisms within DeFi protocols. Such incidents contribute to negative market sentiment and can deter broader adoption of new DeFi initiatives. This event occurs within a year marked by substantial losses across the crypto sector. By mid-2025, cyberattacks and scams had already cost the industry over $3.1 billion. Notable incidents include the **Balancer** exploit in November 2025, which saw over $100 million in digital assets stolen from its **V2 Composable Stable Pools** due to a rounding-error vulnerability impacting tokens like **osETH**, **WETH**, and **wstETH** across **Ethereum**, **Polygon**, and **Base**. Other significant breaches include a $1.5 billion loss by **Bybit** in Q1 and a $223 million hit in the **Cetus** exploit. Access control failures accounted for approximately 59% of funds lost, totaling $1.83 billion, while smart contract vulnerabilities contributed an additional $263 million. These figures highlight the pervasive security challenges, ranging from sophisticated exploits to fundamental user mistakes. ## Broader Context and Security Measures The ongoing series of security incidents and user-related financial losses underscores the evolving landscape of digital asset security, emphasizing the need for both technological resilience and improved user education. Industry experts consistently advocate for enhanced security and compliance measures to mitigate such risks. Recommendations include robust smart contract security practices, comprehensive risk controls, and leveraging regulatory sandboxes. Beyond standard audits, practices like formal verification and continuous code reviews are crucial. Implementing internal governance protocols to monitor unusual on-chain activities and potential exploit patterns, along with employing tools like **OpenZeppelin's SafeMath** to prevent arithmetic vulnerabilities, are considered essential for securing DeFi ecosystems. The incident with **Stable** reinforces the necessity for clear user interfaces, unambiguous instructions, and potentially built-in safeguards to prevent common user errors, alongside the more complex technical security measures.
Nov 06 2025, 14:32
Fomo Secures $17 Million in Series A Funding Led by Benchmark
## Executive Summary **Fomo**, a consumer cryptocurrency trading application, has successfully closed a **$17 million Series A funding round** led by **Benchmark**. This investment elevates Fomo's total capital raised to **$19 million**. The platform, co-founded by Paul Erlanger and Se Yong Park, launched in May and facilitates cross-chain trading of various crypto assets. Benchmark's participation in this round signals a notable vote of confidence in the consumer crypto trading sector. ## The Event in Detail The **$17 million Series A funding round** for **Fomo** was officially announced on November 6th. The round was spearheaded by **Benchmark**, a prominent venture capital firm, and included contributions from **140 industry leaders**. Notable individual investors included **Polygon Labs CEO Marc Boiron**, **Solana co-founder Raj Gokal**, and **former Coinbase CTO Balaji Srinivasan**. Fomo, which commenced operations in May, offers a streamlined trading experience, supporting millions of crypto assets across multiple blockchains, encompassing major coins, meme coins, and altcoins. The platform features **Apple Pay integration** for rapid account setup and trading, a **0.5% transaction fee**, and a policy of waiving gas fees. The application has demonstrated significant growth, achieving **$40 million in daily trading volume** and accumulating **120,000 users** within its initial six months. The integration of **Apple Pay** in June is identified as a catalyst for this expansion, with daily volume surging from $150,000 to $40 million. Furthermore, Fomo incorporates social trading functionalities, enabling users to observe and learn from other traders' strategies. ## Market Implications The investment by **Benchmark** in a consumer-focused crypto trading application suggests an increasing institutional comfort and interest in the digital asset market, particularly in platforms that prioritize user accessibility and experience. Fomo's rapid user acquisition and substantial trading volume highlight a robust demand for intuitive and efficient cryptocurrency trading solutions. The platform's strategic emphasis on **cross-chain trading** capabilities and the elimination of **gas fees** directly addresses key operational hurdles for users, which could contribute to broader market adoption. The incorporation of **social trading features** positions Fomo to leverage the growing trend of community-driven investment within the crypto space, drawing parallels with platforms that offer copy trading. This significant funding is expected to bolster Fomo's expansion strategies, enhance its service offerings, and attract a larger user base, thereby contributing to increased overall trading activity across the crypto market. ## Expert Commentary While direct public statements from the participating investors regarding their rationale for the investment are not provided, the involvement of figures such as **Marc Boiron**, **Raj Gokal**, and **Balaji Srinivasan** implicitly signals an endorsement of Fomo's business model and the broader potential of consumer-centric crypto applications. Benchmark's decision to lead this Series A round, characterized in reports as a "rare crypto investment" for the firm, further underscores a strategic belief in Fomo's market approach and its growth trajectory. ## Broader Context Fomo's successful fundraising round reflects a wider trend of innovation within the **Web3 ecosystem**, with a particular focus on improving user experience and accessibility. The integration of established payment methods like **Apple Pay** exemplifies a strategy aimed at bridging the gap between traditional financial systems and decentralized applications, thereby lowering entry barriers for new participants. This development could encourage other venture capital firms to explore and invest in the consumer crypto sector, especially in applications that demonstrate clear product-market fit and strong growth metrics. The platform's emphasis on social trading and facilitating informed decisions through observing others' strategies indicates a market shift towards more collaborative and transparent trading environments.
Nov 06 2025, 14:15
Stable's Second Pre-Deposit Phase Exceeds $100 Million in Five Minutes
## Executive Summary Stable, a Layer 1 blockchain, commenced the second phase of its pre-deposit campaign, attracting over **$100 million** in deposits within the initial five minutes. This phase is designed to accept up to **$500 million** in **USDC** deposits and requires **Know Your Customer (KYC)** verification, limiting participation to one wallet per verified user. The rapid accumulation of funds underscores robust market interest, echoing a bullish sentiment within the stablecoin ecosystem and highlighting the strategic importance of community-focused fundraising mechanics. ## The Event in Detail The second phase of **Stable's** pre-deposit event witnessed a rapid influx of capital, with deposits surpassing **$100 million** in the first five minutes. This follows a previous phase that reached its **$825 million** cap within 10 minutes, raising concerns regarding concentrated ownership by large participants, often referred to as "whales." In response to these concerns, **Stable** implemented stricter controls for the current phase, including a **$500 million** deposit cap, mandatory **USDC** deposits, and a stringent **KYC** verification process, limiting contributions to a single wallet per verified user. The campaign offers participants future rewards linked to **Stable's** forthcoming native token and broader ecosystem incentives. ## Financial Mechanics and Strategy The financial structure of **Stable's** pre-deposit campaign is centered on securing capital via stablecoin deposits, specifically **USDC**. This approach leverages the stability of fiat-pegged cryptocurrencies while offering participants a stake in the nascent Layer 1 ecosystem. The requirement for **USDC** not only streamlines the deposit process but also contributes to demand for this particular stablecoin. The integration of **KYC** verification is a critical compliance measure, aligning with evolving regulatory landscapes such as the **MiCA framework** in the EU, which mandates robust onboarding and monitoring for **CASPs** by **2025**. This strategy aims to mitigate risks associated with fraud and money laundering, while also providing enhanced security and potentially higher withdrawal limits for verified users. By imposing per-wallet deposit limits, **Stable** seeks to distribute participation more broadly, contrasting with the previous phase's perceived whale dominance, thereby fostering a more decentralized and resilient user base. ## Broader Market Implications The swift success of **Stable's** pre-deposit campaign carries significant implications for the broader Web3 ecosystem and corporate adoption trends. The rapid accumulation of **USDC** indicates sustained high demand for leading stablecoins as foundational assets within decentralized finance (DeFi) and new blockchain initiatives. Furthermore, **Stable's** proactive implementation of **KYC** and per-wallet limits sets a precedent for regulatory compliance and equitable participation in fundraising events, potentially influencing future project designs. This strategic pivot addresses investor concerns regarding fairness and decentralization, which could bolster investor confidence across the crypto market. The ongoing ability of Layer 1 blockchains to attract substantial capital through such mechanisms underscores the continued growth and innovation within the digital asset space, emphasizing the critical role of stablecoins in facilitating efficient capital deployment and ecosystem development.