August 18, 2023 · 3 min read
The Weekly Wrap - 18th August 2023
RocketSwap suffers Hacking
Decentralized exchange RocketSwap on Base network experienced a hack where RCKT tokens were stolen and converted into Ethereum, totaling $870,000. The attacker then introduced a memecoin called LoveRCKT. The incident raised concerns about RocketSwap's security practices, including deployment processes and private key storage. PeckShield, a security firm, identified security vulnerabilities that contributed to the breach. The attacker's rapid conversion of assets and creation of LoveRCKT aimed to exploit stolen funds and potentially manipulate market sentiment.
Generative Ventures Launched
Fintech strategist and entrepreneur Lex Sokolin has taken a significant step in the world of venture capital with the launch of "Generative Ventures." This newly established venture capital fund sets its sights on the unfolding machine economy, a landscape driven by AI, fintech innovation, and Web3 blockchain networks.
Generative Ventures, spearheaded by Lex Sokolin as the founder, aims to identify and support promising startups through Seed and Series A funding rounds. The fund's distinct investment strategy revolves around identifying companies with the potential to outperform traditional benchmarks, such as Bitcoin, or notable growth in AI infrastructure, exemplified by industry leader NVIDIA.
Bitcoin Price Falls 10% as SpaceX Sells Crypto Holdings
The price of Bitcoin plunged by more than 10% on Thursday after it was reported that Elon Musk's SpaceX had sold its Bitcoin holdings. The Wall Street Journal reported that SpaceX wrote down the value of its Bitcoin holdings by a total of $373 million in 2021 and 2022 and has sold the crypto.
The news of SpaceX's Bitcoin sale came as a surprise to many, as Musk has been a vocal supporter of the cryptocurrency in the past. However, the sale is likely a sign of the tough times that the cryptocurrency market is currently facing. Bitcoin has been in a bear market for most of 2022, and its price has fallen by more than 70% from its all-time high of $68,789 in November 2021.
The sale of SpaceX's Bitcoin holdings is likely to add to the downward pressure on the price of the cryptocurrency.
Ethereum Futures ETF Likely to Get Approval
According to Bloomberg, The Securities and Exchange Commission (SEC) is anticipated to grant approval for Ethereum futures-based exchange-traded funds (ETFs) during the fall of 2023. This decision would enable companies like ProShares, Bitwise, and Valkyrie to introduce investment products tied to Ethereum futures trading on the Chicago Mercantile Exchange. While the SEC has exhibited hesitancy towards ETFs linked to spot cryptocurrencies, its attitude is more favorable towards futures-based ETFs, following the approval of a Bitcoin futures ETF in October 2021. This milestone, if realized, holds potential to simplify Ethereum investment, enhance its credibility among conventional investors, and potentially impact its market value.
Notably, the SEC has received numerous applications for Ethereum futures ETFs, reflecting the high interest in such investment vehicles. These ETFs are expected to garner popularity due to their enhanced accessibility for Ethereum investments. If Ethereum futures ETFs secure approval, it could contribute to an upswing in Ethereum's valuation. Additionally, the SEC continues to deliberate on whether to approve ETFs based on spot Bitcoin.