This Week in Crypto | 18-24 August



Aug 24, 2021



Visa buys a CryptoPunk at $150,000

Global Banking Giant Wells Fargo Registers a Bitcoin Fund

Coinbase to Invest $500M in Crypto and set Aside 10% of its Profits to buy More

White Hat Hacker Prevents $350M Loss to SushiSwap by Revealing a Smart Contract Flaw

Leading Publishing Platform Substack Begins Accepting Bitcoin

The crypto industry has become one of the most happening industries of today. No week goes by without any major headlines regarding how industry bigwigs are going all gaga over cryptocurrencies. Can we blame them? After all, crypto space is turning out to be a true crowd puller, amassing millions of users over a short period.

This week, Visa finally made its move into the coveted NFT segment by buying a CryptoPunk. Wells Fargo, a global banking giant, has filed a Bitcoin fund, and Coinbase is buying $500 million of crypto to hold onto its balance sheet. The leading crypto exchange has also announced that it will set aside a tenth part of its profits to buy more crypto. 

Aren't we all fed up with reading all the bad news about DeFi protocols losing millions of dollars of crypto funds to hackers? Luckily for every DeFi proponent, a white hacker saved the day for SushiSwap by revealing a flaw in its smart contract. It is a big deal as SushiSwap is among the most popular decentralized exchanges today. Now comes the big bonanza for all the crypto enthusiasts. Substack, a leading content publishing platform, has announced that it will accept Bitcoin payments. 

Visa buys a CryptoPunk at $150,000

Visa, the global payments industry behemoth, has acquired CryptoPunk, one of the most popular collections of digital arts, for 49.5 ETH worth $149,939 at the time of purchase. 

CryptoPunks are believed to have pioneered the emerging NFT space and brought it into the mainstream.

Expressing his views on the exciting update about Visa's purchase of CryptoPunk, head of crypto at Visa, Cuy Sheffield, shared his views in a blog post released on Monday. 

He commented on the astounding growth that the NFT space observed over the past few years and the commercial reasons behind Visa’s purchase of CryptoPunk. Cuy said:

“To help our clients and partners participate, we need a first-hand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT.”

The CryptoPunk that Visa bought is CryptoPunk 7610. Claimed for the very first time on June 23, 2017, the CryptoPunk 7610 is a female figure wearing lipstick and has clown green eyes. It was first sold a month after it was claimed. That, too, at a mere 0.6 ETH, valuing the transaction at $114 at the time.

Global Banking Giant Wells Fargo Registers a Bitcoin Fund

In an interesting update for the cryptoverse, Wells Fargo, one of the oldest banks in the United States, is finally entering the crypto market. 

Recently, the baking giant registered a new Bitcoin fund offering its rich clientele an indirect exposure to the world's largest cryptocurrency by market cap.

Wells Fargo has called the fund "FS NYDIG BITCOIN FUND I" in its “Notice of Exempt Offering of Securities” filing, commonly referred to as Form D.

The fund's name consists of both NYDIG and FS Investments, as Wells Fargo has partnered with both of these firms to launch this firm. These three firms have incorporated a limited partnership to register this fund.

For all the clients that Wells Fargo Clearing Services will refer to the fund, it will receive placement and servicing fees.

Coinbase to Invest $500M in Crypto and set Aside 10% of its Profits to buy More

With quarterly trade worth over $350 billion, Coinbase is the largest cryptocurrency exchange in the United States by trade volume. It is one of the leading names in the crypto space and is considered one of the flag bearers of the global crypto industry.

Staying true to its roots, the crypto behemoth has made it public that they will be buying crypto worth $500 million. 

Taking to Twitter to announce his company’s decision, Brian Armstrong, Coinbase’s CEO, said that the company also plans to set aside 10% of its profits to buy more cryptocurrency from now onwards.

Interestingly, Armstrong also disclosed that the company plans to dedicate a higher share of its profits to buy more crypto over time. 

White Hat Hacker Prevents $350M Loss to SushiSwap by Revealing a Smart Contract Flaw

Amid the flurry of hacks in the decentralized finance space, a white hat hacker saves SushiSwap from prey to a hacker. 

Working as a security researcher with Paradigm and known as Samczsun on Twitter, he acted swiftly to prevent a potential loss of almost 109,000 Ether to SushiSwap and its Misho platform.

The white-hat hacker came to know of this bug while examining the BitDAO token sale's smart contract on Miso, the token launchpad of SushiSwap.  

After examining closely, the white hat hacker figured out that the Dutch auction contract was flawed. It was clear to him that if any malicious actors exploited the flaw, they would be able to drain out all the crypto assets. He reached out to Joseph Delong, SushiSwap’s Chief Technology Officer to inform him about the flaw.

They combinedly tackled this issue by formulating a rescue plan. The first step was to pause the contract manually, which was done by the BitDAO team. To do so, they bought the remaining tokens to complete the process loop. Then, the SushiSwap team paused using Miso until the issue resolves.

After the flaw was taken care of, the BitDAO token sale continued without any problems. It turned out to be a hit as 9200 participants participated in the sale, helping BitDAO raise 112,000 ETH.

Leading Publishing Platform Substack Begins Accepting Bitcoin 

With over 500,000 paid subscribers, Substack is one of the largest names in the publishing space. In what we can term a big moment for the cryptoverse, Substack has announced that it will roll out Bitcoin payments on its platform. Initially, the Bitcoin payments will be only available for some crypto-focused publications. It has become a reality after OpenNode's integration with Substack, as it has enabled the content platform to accept Bitcoin payments.