🥛Interest rates up. Prices down. 🤬
PLUS the hero that stopped a multi-hundred-million dollar hack
GM. This is the Milk Road. The daily newsletter that gives you the best taste of crypto and a good laugh.
We're like those OG popsicles with jokes.
Here's what we got today:
- The Fed raised interest rates by 75 bps. Whats next?
- How a hacker stopped a multi-hundred million dollar exploit
- Quick bites
- Meme of the day
THE FED RAISES INTEREST RATES BY 75 BPS. WHAT NOW?
Well, ladies and gents, it happened again. Jerome Powell and the Fed have decided to raise interest rates by another 75 bps. *Anotha one*
It's the 3rd straight hike of 75 bps. And there are no signs of it slowing down.
Here's everything Powell had to say in his speech:
- The Fed projects hiking rates to 4.6% by end of 2023
- "No painless way" to lower inflation (aka more economic pain incoming)
- Expects the housing market to go through a "correction"
So, how'd the markets react? It was a rollercoaster. No, seriously look at the price action...
Within a few hours, ETH went up to $1370 and crashed back down to $1230. Bitcoin went up to $19.3k then crashed all the way back down to as low as $18.3k.
Prices were more unstable than my legs after a SoulCycle class.
So, what now? Well, there are no signs that the Fed intends to slow down the pace of rate hikes, meaning things will likely get worse before they get better.
The next big things we'll have to keep an eye on is the upcoming CPI report for September.
Brace yourselves, it could be a rocky few months ahead for all markets.
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As we speak, they’re buying up new properties for investors to choose from. But for a limited time, you can get a piece of their entire portfolio by investing in the company itself.
A HACKER SAVES ARBITRUM FROM A MULTI-HUNDRED-MILLION DOLLAR HACK
It feels like every week we see a major hack in crypto. In fact, over ~$2b has been stolen in hacks this year.
Well, get ya popcorn ready ladies & gents. This is how a hacker stopped a potential multi-hundred-million dollar hack on Arbitrum.
Here’s what happened: Arbitrum is one of the most popular Layer 2's on Ethereum and they recently launched a new product, Arbitrum Nitro.
But with new products, come new vulnerabilities…And one hacker, known as Riptide, wanted to keep a close eye on it to see if he could find any.
Well, Riptide found one. A big one. The vulnerability would let a hacker reroute all deposits going into Arbitrum into their own wallet.
- Typical deposits can range in the millions, anywhere from $1m - $6m
- At the time of finding the vulnerability, the largest deposit was $250m
- Since then, the biggest deposit has been $470m
Riptide could’ve taken it all. And it would've been one of the biggest hacks to date.
But he didn’t. Instead, he got in contact with the Arbitrum team to let them know about the exploit. What a guy.
As a reward, Arbitrum paid Riptide a 400 ETH bounty (~$530k). But here’s the kicker…
Arbitrum didn't pay what they should've. This vulnerability is eligible for a max bounty (worth ~$2m), but they only paid out ~25% of it.
The Milk Road's Take: Here at the Milk Road we don't beat around the bush... Arbitrum cheaped out big time.
Sure, $500k is a lot of money, but it’s peanuts when you’re protecting hundreds of millions of dollars worth of crypto.
A U.S judge has ordered Tether to show documents that prove USDT, the largest stablecoin, is backed by real assets. We'll finally have an answer as to whether USDT is backed by real assets or is "magic internet money" printed out of thin air. Stay tuned.
Jesse Powell announces he is stepping down as CEO of Kraken, a popular crypto exchange. J Powell’s had a big news day.
Coinbase launches a new product, Coinbase Cloud, for Web3 developers. It helps developers easily build Web3 apps.
Universal Studios is teaming up with MoonPay to create an in-person NFT scavenger hunt. There will be over 7m NFTs hidden all over the theme park for people to find & claim.
Warner Brothers and Funko are partnering to drop a phygital comic book collectible. It's an NFT & physical comic book bundle that will only be available to buy at Walmart.
MEME OF THE DAY
That's a wrap for today, see ya tomorrow!
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VITALIK PIC OF THE DAY
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.