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The Komodo platform is many things – a unique blockchain, a coin that pays interest, a decentralized exchange, a development blockchain with many additional features being planned for the future.

The Komodo blockchain is a fork of the ZCash blockchain, which itself was forked from the Bitcoin blockchain, making Komodo a descendent of Bitcoin. It includes the zk-snark technology that Zcash was built upon, and adds a delayed proof of work consensus algorithm to make Komodo more robust and secure.

The ultimate goal of Komodo is to create an entire ecosystem comprised of diverse partnerships that will send the platform forward into the future. Because it was designed to be used by developers of any level and in any industry it is extremely versatile.

In this comprehensive review, I will give you everything that you need to know about the Komodo platform.

How Komodo WorksThose doing development on the Komodo platform are not building onto the blockchain, but are instead building their own standalone blockchains. It’s not a fork or sidechain, and the Komodo platform doesn’t act as a parent to the new blockchain.

Each project is an independent blockchain that becomes connected to the Komodo ecosystem. This is crucial because the fact that each blockchain is independent means that future development won’t be limited by Komodo in any way.

Benefits of the Komodo Platform

Komodo was also designed from the ground up as a modular ecosystem. This allows developers to choose which technologies they wish to use in their own projects.

Perhaps most importantly, Komodo was developed with security as a top priority. In addition to using the Zcash zk-snark protocols for anonymity and privacy, Komodo uses a delayed proof of work (PoW) protocol to provide Bitcoin level security to even the smallest blockchains and projects. As stated on the Komodo website itself:

Komodo’s innovative dPOW (delayed proof of work) provides a security layer that creates backups of your blockchain’s data and notarizes it to Bitcoin’s blockchain, providing even the smallest of blockchains with Bitcoin-level security.

In essence, Komodo is using Bitcoin’s hashrate to ensure immutability for the Komodo blockchain.

Komodo PrivacyKomodo was created as a form of the Zcash blockchain, using their technology known as ‘Zero Knowledge Proofs’. This technology allows each transaction on the blockchain to be 100% anonymous or as transparent as necessary given the requirements of each situation.

Anonymous transactions are important to many users because they hide the amount, sender and recipient of the transaction, but still make it possible for miners to verify that the transaction is valid and without any double-spending. Alternatively transactions can be left transparent, in which case information shows just as it would for a Bitcoin transaction.

Anonymous transactions help protect user privacy, but they provide a more important function, and that is to preserve fungibility, which is a basic requirement for any currency.

Komodo SecurityAfter including privacy by forming from Zcash, the developers of Komodo provided for enhanced security of the blockchain in a unique manner. They created a proof of work token, but modified it to be Delayed Proof of Work, allowing it to recycle Bitcoin’s hashrate to ensure immutability of Komodo’s blockchain.

Komodo does this by using 64 “notary nodes” that work to notarize blocks in the Bitcoin blockchain. This provides protection for Komodo because an attacker would have to alter both the block in the Komodo blockchain and the block in the Bitcoin blockchain.

Steps in the Komodo Delayed Proof of Work

As long as the Bitcoin blockchain is secure, so too will Komodo – and all the other blockchains built using Komodo – remain secure.

This mechanism can now be used by any cryptocurrency that wishes enhanced security. By using Komodo the new blockchains are connected to Bitcoin, benefiting from the security of the Bitcoin blockchain, while also saving on transaction costs.

Komodo TeamThe Komodo project is based on anonymity, so it comes as no surprise that many of the Komodo team members initially chose not to reveal their identity. The founder and one core developer of Komodo went by the moniker JL777, but is now known as James ‘JL777’ Lee.

The CTO of the project was known as CA333, but we now know him as Kadan Stadelmann. This increased transparency has come about as Komodo grows in size and scope and is attracting more investors.

The full team is now nearly 30 members spanning leadership, development, marketing, and community development. And speaking of community, there are numerous contributors from the community, both developers and community outreach ambassadors.

Some of the Komodo Team Members

Currently, the general manager of Komodo is Ben Fairbanks, who is also the founder and CEO of RedFOX Labs, an incubator that is helping to launch Komodo based companies in emerging markets. Prior to joining Komodo and launching RedFOX, he served as COO at the ride-hailing service Grab. He brings extensive business and marketing experience to the project.

The CTO of the Komodo project, almost since the very beginning, has been Kaden Stadelmann. He also serves as CTO of RedFOX Labs. He previously worked as an IT security analyst and software developer, and founded the company satoshihack back in 2011, making him a pioneer in the blockchain space.

Core development is led by founder James Lee, and he is joined by Adam Bullock and Mihailo Milenkovic as well as roughly a dozen full-time developers and another dozen community volunteer developers.

KMD CoinThe Komodo native currency (KMD) was launched in an ICO in February 2017 at a price of $0.10. Since then the price of the coin has risen and fallen with the fortunes of the project and the markets. As of mid-March 2018 it was trading at $2.73 and was ranked the #48 coin by market cap on Coinmarketcap.com.

Even though 2018 saw many coins losing 90% or more of their value, KMD held up fairly well in the face of the bear market. It rallied in April, topping $4 and slowly sank from that level, finally dipping under $1 in November 2018 and hitting a low of $0.492329 on November 25, 2018.

It slowly recovered from that low and by February 2019 had doubled in price as it traded back above $1. It remained above $1 for nearly all of 2019, and nearly hit $2 in July 2019, but the price has recently dropped and as of August 9, 2019 stands at $0.863399.

KMD Price Performance. Image via CMC

The fundamentals for the coin continue to look solid thanks to the 5% annual interest rate paid to KMD holders, and the current low price is more a reflection of broad-based weakness in the cryptocurrency markets.

There are currently 115,389,114KMD in circulation, with a planned total supply of 200 million coins, which is projected to be reached in 2031. Until that time, KMD holders will continue to receive a 5.1% annual interest payment (called Active User Rewards) on their KMD holdings, so long as they keep more than 10 KMD in a wallet where they control the private keys. The KMD had an all-time high of $12.54 on December 21, 2017.

Buying & Storing KMDKMD can be purchased on a good number of exchanges, with the largest volume on CoinBene. There is also good volume at Binance, CoinEx, and HitBTC. Other good choices for buying KMD include CoinEx and Bittrex.

Given that there is strong volume across a number of exhanges, it bodes well for the liquidity of KMD. Improved liquidity means that you can execute large block orders on these books without much slippage in the price of the coin.

Register at Binance and Buy KMD Coin

In order to earn the 5.1% annual interest users must hold their KMD in a supported wallet. The top two based on the Komodo website are the Verus Agama wallet, which is a multi-coin wallet from the Verus Coin project, or the native Komodo OceanQT wallet. Other options include the Guarda Wallet and the ZelCore wallet.

Development & RoadmapWhen it comes to determining the amount of work that has been done by a project, there are a number of metrics one can look at.

However, one of the most effective that I have found is to take a look at the coding activity in the project's public repositories.

Therefore, I decided to jump into the Komodo GitHub to get a better sense of what the developers have been pushing over the past year. Below is the total code commits to two of their development repos.

Commits for Select Repos over past 12 months

As you can see from the above, the team has been quite active pushing code to their core repository over the past year. It is also worth pointing out that there are a further 56 other repositories with varying degrees of activity.

This is more development activity than we have seen at most other projects. In fact, if we were to compare Komodo to its peers, it is ranked 30th in terms of commits and 12th for overall coding activity on coincodecap.

This perhaps makes sense when viewed in the context of the numerous projects being built on the Komodo platform (more below). 

In terms of the upcoming roadmap, the two most important remaining milestones for 2019 are the release of the developer portal as well as the GUI for the fully mobile-ready wallet/DEX hybrid.

If you want to keep up to date with development on the project then I suggest you jump into their discord and meet the team. They also encourage community developer contributions to the core.

Komodo Platform ProjectsThere are a number of standalone projects that were developed for the Komodo platform. Those that are farthest along in development and have been released as at least betas include Decentralized ICOs, BarterDEX along with a built-in “tumbler” service called Jumblr.

However, as of July 2019 Komodo has launched its Antara Framework, which is the basis for nearly all current services on Komodo.

Decentralized Initial Coin Offerings (ICOs)The Decentralised ICO concept was meant to be an exciting option for startups as it would mean that they could launch their process much easier. It would also have given them access to the Komodo technology, marketing channels, and consultants.

However, given the regulatory pressure that has been placed on ICOs recently, this initiative seems to have fallen by the wayside. Of course, the lackluster performance of most recent ICOs has not helped the process.

The Komodo team had plans to launch a number of Decentralised ICOs. In May of last year they planned to release their first with the BlocNation dICO. However, this did not seem to materialize and the Blocnation project seems to have gone dead (with the site down).

The dICO that never materialized... Image via Komodo Blog

Despite this though, Komodo will accept pre-existing blockchain projects on other platforms that would like to migrate to Komodo to receive your own fully customizable, high performing independent blockchain.

As of August 2019 there are a number of projects that have launched on Komodo.

JumblrJumblr is a cryptocurrency anonymizer developed by Komodo which is decentralized and open-source. It can be used to increase privacy when using the Komodo platform.

Anonymizing funds is actually a fairly straightforward and simple practice. The Jumblr will take KMD tokens from a non-private address and send them through a number of zk-snark addresses.

Once these untraceable addresses have processed the coins they are sent to a new address where they are completely anonymous. The fee for using the Jumblr service is 0.3%, which is payable in KMD tokens.

BarterDEX Rebranded to AtomicDEXBarterDEX was previously called EasyDEX but was rebranded in July 2017. It is a decentralized exchange utilizing atomic swaps, and more recently etomic swaps, which bridge the gap between Bitcoin and Ethereum based blockchains.

The use of atomic swaps and etomic swaps lower counterparty risk, transaction fees and speeds the transfer of assets. BarterDEX can support trading of any cryptocurrency, and will also support fiat in the future. Already the decentralized exchange is capable of performing swaps for 95% of the cryptocurrencies in existence.

BarterDEX also solves the liquidity problem encountered by most decentralized exchanges by producing Liquidity Nodes that stabilizes prices by buying and selling assets in the order books.

Screenshots from the AtomicDex App. Image via atomicdex.io

In July 2019 the BarterDEX platform got another upgrade and rebrand and has been re-launched as AtomicDEX in a closed public beta. AtomicDEX provides a secure, reliable, and completely decentralized method for trading digital assets.

Trades no longer have to pass through an intermediary but are done from wallet to wallet. AtomicDEX will act as a multi-currency wallet and as a fully decentralized trading platform. At its beta release, AtomicDEX has support for 13 different coins, but can technically support 99% of all existing cryptocurrencies. New coins will be added with each update to the DEX.

The Antara FrameworkThe Antara Framework was launched on the Komodo mainnet on July 15, 2019, completing a rebrand that stretched out for nearly a full year. This relaunch has included several new developments, such as the beta release of the Antara Smart Chain Composer, which allows anyone to launch their own SmartChain blockchain in just minutes, including full seed nodes and mining nodes.

The Antara Framework is an adaptable framework for simple, end-to-end blockchain development. Antara makes it easier than ever before to launch a chain, activate modules, and start building blockchain-based applications.

Antara has maintained the independence and privacy of building with Komodo. Each independent chain has its own consensus rules, hashing algorithm, decentralized network, and coin. Blockchains launched with Komodo’s technology never depend on the KMD chain, network, or platform.

Antara Network Recently Going live. Image via Komodo Blog

It’s an open ecosystem so there is no vendor lock-in. Creating a chain from the CLI is permissionless and free. The Komodo team is not informed when a chain is created so there's no way to track a chain after launch.

The framework also comes with built-in modules, making development speedy and easier. This allows developers to natively support any software, dApp or blockchain-based games.

With 18 different customizable Smart Chain parameters, any blockchain can be built to serve any business need. The Antara Integration Layer also offers several white label products such as a multi-coin wallet, block explorers, full seed nodes, a branded DEX, a crowdfunding app and integration with SPV Electrum servers.

CompetitionBecause Komodo is involved in so many aspects of the blockchain it is facing competition from many different directions.

Decentralized exchanges are becoming increasingly popular, and the AtomicDEX exchange is in competition with BitShares, EtherDelta, and Waves, as well as many other smaller players.

As a privacy coin, KMD competes against the larger Dash and Monero coins, and of course against the Zcash that it was forked from.

Komodo faces stiff competition from Ethereum as it is the leader in the ICO and smart contracts field, but other established blockchains such as NEO, NXT and Waves are also competing for ICO traction.

And now we also have initial exchange offerings (IEOs) from the likes of Binance and other exchanges growing in popularity. Smart contracts have also found their way into most projects. One strength for Komodo is that it is the first to offer a fully decentralized exchange with atomic swap capabilities.

ConclusionThe Komodo project is an extensive and ambitious large-scale project that aims to solve many issues that centralization of cryptocurrencies and blockchains face.

In addition to being its own blockchain and coin, it is also tackling the decentralized exchange, atomic swap, and decentralized ICO space. It includes options for anonymity and has a unique proof of work consensus algorithm that promises enhanced security, even for new blockchains based off Komodo.

Needless to say, that’s a lot to bite off, but the Komodo team has shown itself to be up to the challenge time and again. In a world where deadlines are often missed by months, the Komodo team has not only delivered but also delivered early and with few bugs. The team also takes user feedback into consideration and has been known to pivot quickly based on the needs of the community.

If the Komodo team continues to deliver it could make a long-term lasting impact on the cryptocurrency space, but it is too early to tell if this will be the case. In any event, it is certainly a project worth watching.

In the roughly 18 months since this review was first prepared the Komodo team has continued to deliver an exceptional product, and with the July 2019 release of the Antara Framework, it has advanced to the first composable SmartChain platform in the industry. This first-mover advantage keeps Komodo on the cutting edge of blockchain development.

Disclaimer: These are the writer's opinions and should not be considered investment advice. Readers should do their own research.

Binance Launches Staking, Faces Sharp Criticism From Crypto Community

The value of the cryptocurrency Tezos rose by 26 percent last night, the slow-burning result of Coinbase’s announcement that it would reward customers for "staking" the cryptocurrency on its platform. But what does that actually mean?  

In practice, staking allows customers to earn what is essentially interest on any cryptocurrency they hold, rewarding HODLers with a stream of passive income. Coinbase’s estimated annual return for users staking Tezos is 5 percent. 

To earn rewards, customers must first stake Tezos for around 35-40 days, after which they will start to be rewarded with interest every three days. 

Tezos is a proof-of-stake coin, meaning it has no miners. Instead, those who verify transactions stake coins on the validity of the transaction to help keep things running smoothly. Those who stake the coin have the chance to generate new Tezos, and provide the liquidity that underpins the network. Previously, Tezos users had to set up a “baker”—the proof-of-stake equivalent of a “miner”, to earn rewards. This was a relatively complicated process, requiring specialist knowledge. 

On Coinbase, staking rewards are issued automatically, and customers do not have to take any further action to enter into the program. “This makes earning staking rewards much easier,” Nic Carter, a partner at Castle Island Ventures tells Decrypt.

Tezos, which is similar to Ethereum and allows distributed applications to be built on its blockchain, was started in 2014 by Kathleen and Arthur Breitman, a married couple who had significant fintech experience on Wall Street and beyond. The company raised $232 million in a 2017 ICO in Switzerland—which was a record fundraise at the time. In a long feature about the internecine struggles of the young company, "Inside the Crypto World's Biggest Scandal," Wired said that "the name 'tezos' became crypto-world shorthand for ICO avarice."

The company has since recovered from its governance crisis.

Interestingly, though Coinbase announced the Tezos staking program late morning California time, it didn’t start to surge until around 7:30PM PST. Then it took off like a rocket as traders raced to get in on the action. Carter said he couldn’t find any specific reason that the price jumped so dramatically so late in the day.

“Markets aren’t particularly good at incorporating information,” he said. That's particularly true in the crypto market, which Carter says is especially slow to respond to news.

For Coinbase, encouraging staking of Tezos could supply its exchange with a steady stream of the coin, adding liquidity to its exchange. This is helpful for the exchange, which Carter says is transitioning to being the equivalent of a “crypto native bank with a full custody offering.” Carter says the announcement is “a good incentive to have retail owners of Tezos deposit them with Coinbase.”

(We reached out to Coinbase and Tezos to understand more about the deal and will update the article when we have more information.)

Coinbase’s announcement follows rival cryptocurrency exchange Binance, who launched its own staking platform last month. It supported the following eight cryptocurrencies: NEO (NEO/GAS), Ontology (ONT/ONG), Vechain (VET/VTHO), Stellar (XLM), Komodo (KMD), Algorand (ALGO), Qtum (QTUM), & Stratis (STRAT). Stellar staking has finished, but several more pairings have been added: TRON, Elrond, Fetch.ai, and ONE. 

Binance’s CEO, Changpeng Zhao has previously hinted at Binance’s future support for Tezos staking.

Of course, though stakers might be consistently rewarded with 5 percent of the coin’s value—the value of the individual coin is still subject to fluctuation. Binance estimates that staking Algorand, for example, will yield over 15 percent, but Algorand is a more volatile cryptocurrency. The Algo, worth $0.26—down from highs of $3.28 in June—has netted investors minus 92 percent in returns.

And, as Carter tells Decrypt, staking comes with risks: staking funds on Coinbase requires customers to keep funds on Coinbase. If the exchange—or the customer—gets hacked, then they could lose their Tezos. 

Additionally, Carter says that staking on large exchanges means that “Coinbase and other exchanges will come to own a huge fraction of supply for these staked coins.” This, says Carter, is a potential risk: “the security model ultimately could degenerate into a few large custodial institutions signing blocks.” 

Crypto analyst Eric Wall echoed Carter's caution: “I'd keep a worried eye on this. It's about time Proof-of-Stake really gets battle-tested in the context of a fully matured industry. We’ll soon see which tools and services become popular—then we can work out which threats are the most concerning, the same way we've done for Proof-of-Work.”

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Is Bitcoin’s Rise a Blessing or a Threat to Corporate Treasuries?

The Federal Reserve’s decision to cut interest rates this week indicates that the American economy is experiencing choppy market conditions. If history repeats itself, the crypto market will benefit as the economy unlocks fresh liquidity.

However, rate cuts this time may not boost crypto as they have in the past. According to experts, political and inflationary uncertainty, coupled with investor caution, could temper the impact. Still, they believe distinct sectors like Real-World Assets (RWAs), decentralized finance (DeFi), and stablecoins are well-positioned to benefit.

A Rate Cut, But with a CatchThe Federal Reserve’s decision to cut interest rates is typically met with a cheer from risk asset investors, a signal that cheaper money is coming. But this time feels different. 

Though Bitcoin’s price remained steady amid Powell’s decision to cut rates by 25 bps, its sustained momentum was largely due to institutional support, like ETF inflows, and commitment from long-term participants.

However, on-chain signals soon revealed that not every participant shared the same optimism.

⚠️⚠️ Interest rate cuts

At first glance, many people assume that when the Federal Reserve (Fed) cuts interest rates, it should boost the stock market because borrowing is cheaper, companies can expand, and consumers can spend more. And that can happen in the short term. But in… pic.twitter.com/YrIpqKfgx1

— Erik (@ero_crypto) September 17, 2025 As BeInCrypto recently reported, a decline in New Address Momentum suggests retail investors are pulling back. Fewer new entrants highlight fears of market saturation or a coming downturn.

The data represents a tension now defining the market—a rate cut injecting liquidity and confirming a weakening economy. 

“The reason for yesterday’s rate cut was ‘risk management’ per Powell, and it’s an appropriate term. The FOMC sees their objective balance tilting towards growth protection from inflation prevention, even while acknowledging that both are active risks. In other words, the specter of stagflation is spooking us again, and it’s not even Halloween,” Max Gokham, Deputy Chief Investment Officer at Franklin Templeton Investment Solutions, explained.

This single Fed move forces crypto investors to navigate a panorama more complex than a simple “buy the dip” narrative.

The Liquidity CatalystThe Federal Reserve’s rate cut has introduced a dynamic in which economic conditions and market liquidity appear to be in opposition. While the rate cut itself acknowledges a weakening economy, it also signals fresh liquidity that has historically served as a catalyst for cryptocurrency markets.

Analysts are observing this liquidity factor closely. 

“[Cuts] inject liquidity, lower discount rates, and force investors back into risk assets. This paradox is why equities and crypto can rally even when the Fed is essentially confirming slower growth. For now, markets are focused more on the liquidity impulse and the prospect of a soft landing than the drag from weaker fundamentals,” Komodo Platform Chief Technology Officer Kadan Stadelmann told BeInCrypto.

This perspective aligns with the historical record of past easing cycles, during which significant crypto rallies have followed. 

Bitcoin, in particular, has a history of front-running these events, with its price increasing in the run-up to an anticipated rate cut. It’s often followed by a “sell the news” dip, as traders who bought on the rumor take profits once the news is confirmed.

“In 2019, BTC rose from $4,000 to $13,000 in anticipation of cuts but didn’t explode right after the announcements. In the wake of the 2020 March cuts, as lockdowns gripped the world, Bitcoin crashed before being one of the first commodities to rebound—even ahead of gold,” Stadelmann added. 

However, this week’s rate cuts were made under circumstances that differ significantly from previous easing cycles.

Inflation, Tariffs, and UncertaintyWhile history offers a compelling roadmap for how liquidity can fuel a crypto rally, the current environment is defined by significant variables that could disrupt that pattern. 

As Bitget Wallet Chief Marketing Officer Jamie Elkaleh points out, this time, two key factors are different:

“First, the political backdrop: Fed independence is under scrutiny, and that can create credibility issues. Second, the inflation mix is less straightforward, with tariffs and supply chain risks complicating the picture. So while history suggests rate cuts should lift markets, the margin for error is narrower today.”

The political element adds a layer of uncertainty not seen in past cycles. The recent legal challenge against a Fed governor has raised concerns about the potential for political interference in monetary policy. This risk could undermine the market’s trust in the central bank.

Furthermore, unlike past cycles driven by strong demand, current geopolitical events, particularly tariffs and supply chain risks, further complicate inflationary pressures.

“Labor market data has softened, and tariffs have added pressure to the inflation outlook. The Fed is walking a fine line: it’s easing policy to prevent the slowdown from becoming something more severe, while still acknowledging that inflation hasn’t fully disappeared… the cut is less a ‘green light’ for growth, and more a recognition that the economy needs support,” Elkaleh added.

Despite the political and macroeconomic headwinds, the liquidity injection still needs to find a home. Some sectors may stand to benefit more than others.

A Look at the WinnersWhile Bitcoin remains a macro play, this easing cycle’s true “winners” may be found in distinct crypto categories most sensitive to a fresh influx of capital. 

For investors, three key categories are poised to be the most immediate and sensitive beneficiaries of a liquidity injection: DeFi, meme coins, and RWAs.

Everyone always waits for rate cuts

BUT not everyone knows how they actually work

I spent 19 hours doing a deep breakdown

Here’s how rate cuts affect the crypto market👇🧵 pic.twitter.com/CmlXJGqoFS

— ToraX (@torax_fi) September 18, 2025 DeFi thrives as lower borrowing costs and a “reach for yield” push investors away from less-attractive traditional finance products and into on-chain money markets. Meanwhile, meme coins are often the first to see a surge in speculative activity.

As XYO Co-founder Markus Levin told BeInCrypto:

“Categories like DeFi and meme coins are historically the most sensitive to fresh inflows, as retail speculation and trading volumes rebound first.”

The growth of RWAs is also a compelling narrative for this cycle. The RWA market is expanding, with tokenized Treasuries and private credit lending gaining institutional adoption. Hard data backs this growth: total value locked (TVL) in RWAs is up 31% quarter over quarter to $8.2 billion.

Decentralized Physical Infrastructure Networks (DePINs) also hold important potential.

“Messari tracked over 400% growth for the industry in 2024. As of September 2025, CoinMarketCap’s category page for DePIN shows a collective market cap currently over $37 billion. The World Economic Forum projects it could scale into the trillions by 2028, reshaping computing through a more distributed infrastructure,” Levin added.

Meanwhile, stablecoins will grow significantly, serving as the foundation for much of the on-chain economy.

The Yield-Seeking NarrativeAs traditional finance products like government bonds become less attractive in a low-rate environment, the yields offered by DeFi stablecoin protocols become more appealing.

“Stablecoins sit at the center of this story. Lower policy rates compress yields in traditional cash products, while on-chain markets still offer mid-single to double-digit returns through lending, structured products, or tokenized T-bills. That relative spread makes stablecoins even more attractive as both a store of liquidity and a spendable currency,” Elkaleh explained. 

As the cost of money goes down, demand shifts to where the yield is greatest.

“With rate cuts expected through year-end, short-duration Treasuries may become less attractive relative to on-chain products that package credit, staking, or basis premia. This can support stablecoin deposits. Thus we expect a shift toward tokenized cash equivalents and yield-bearing stables, alongside tighter integrations with exchanges as issuers chase scale,” Gokham added.

This new reality presents a critical test for the crypto market. The true measure of this easing cycle will be whether these nascent, on-chain sectors can fully capitalize on the liquidity impulse and prove their resilience in an uncertain macro environment.

Nvidia’s recent investments in Intel and OpenAI mark a new era of strategic consolidation in the AI race. These moves represent a need for secure, domestic supply chain security and a bid to dominate the future of computing.

While the deals are not a direct play for crypto, their significance for the industry is profound. According to experts from BitMind and Komodo Platform, this partnership will create a new generation of powerful, cost-efficient hardware that will particularly benefit decentralized AI projects. 

From Archrivals to AlliesOnce archrivals, Nvidia and Intel spent decades competing fiercely in the high-performance computing space. This rivalry wasn’t just about market share; it was a battle for technological dominance, defined by a history of legal disputes and unsuccessful joint ventures that shaped the very foundation of the chip industry.

Last week, that all changed. Nvidia announced a $5 billion investment in Intel, acquiring a 4% stake and launching a new partnership to develop custom products for data centers and personal computers.

Though shocking, the news wasn’t met with surprise. With the dawn of the AI race, these companies have become indispensable. The training of AI models demands massive parallel processing, a function that relies entirely on essential hardware such as GPUs and CPUs.

“It signals an AI industry consolidating to gain strategic advantages over competitors like AMD and Arm while ensuring onshore US manufacturing, which is a strong move from Nvidia given the importance the current administration has put on domestic manufacturing,” said Ken Jon Miyachi, the Co-Founder of BitMind.

Nvidia also announced recently that it would invest up to $100 billion in OpenAI to power its next-generation infrastructure. Against this backdrop, Nvidia’s investment in Intel represents a strategic move to secure its supply and lock in a partnership with the only other US company with significant manufacturing capabilities. 

Why Now? The Geopolitical Game of ChipsThe motivations behind the recent Nvidia-Intel partnership are deeply rooted in the American semiconductor industry’s need to secure supply chains and maintain a competitive edge in an increasingly cutthroat race. 

This investment responds to Nvidia’s historically overwhelming reliance on the Taiwan Semiconductor Manufacturing Company (TSMC) to produce high-end GPUs. A critical dimension of this partnership is geopolitical. TSMC manufactures over 90% of the world’s most advanced chips, including the high-end GPUs that power AI.

Nvidia can design the world's best AI chips, but they can't manufacture them at scale.

They rely on TSMC in Taiwan for production. Which is a massive geopolitical risk.

Intel owns something irreplaceable: advanced semiconductor fabs on U.S. soil. pic.twitter.com/o4S8eTjAxg

— Renç Korzay (@renckorzay) September 19, 2025 Given rising US-China tensions over Taiwan, this concentration of manufacturing presents a significant national security risk for the United States. Reducing reliance on a single foreign source aligns with the US government’s push for domestic production.

“The deal signals US tech dominance, aligning with CHIPS Act onshoring to counter China’s chip ambitions and their recent ban of Nvidia chips. It strengthens domestic AI manufacturing infrastructure, potentially reducing reliance on foreign foundries like TSMC,” Bitmind Co-founder Ken Jon Miyachi told BeInCrypto. 

By investing in Intel, Nvidia is committing to securing a domestic supply chain for its critical hardware.

Fusing Core StrengthsThe collaboration combines the two companies’ core strengths: Nvidia’s dominance in AI and GPU design and Intel’s legacy in x86 CPUs and vast manufacturing scale.

EVERYTHING YOU NEED TO KNOW ABOUT $NVDA + $INTC DEAL

There are plenty of details still missing on timing, bandwidth & packaging, but Nvidia just gave Intel a $5B lifeline and rewrote where CPUs sit in the AI stack.

For years, Intel was treated like the boring middleman –just… pic.twitter.com/mpZ1qPJzfH

— Shay Boloor (@StockSavvyShay) September 18, 2025 This alliance is also a direct response to the rising influence of AMD, a US-based rival that has been gaining market share in CPUs and GPUs. It can also be seen as a “Plan B” for Nvidia after regulators blocked its high-profile attempt to acquire the UK-based chip designer Arm.

According to Komodo Platform Chief Technology Officer Kadan Stadelmann, the speed of AI development requires this kind of strategic consolidation. 

“In five years, AI technology will far exceed the capabilities of today’s LLM AI. The space is moving fast, and NVIDIA and Intel understand this,” he said.

While AI and crypto are distinct industries, they frequently overlap. This recent partnership, though indirect, could have a spillover effect on the broader crypto market.

The Ripple Effect on CryptoThe Nvidia-Intel partnership primarily focuses on AI and high-performance computing, meaning its impact on major cryptocurrencies like Bitcoin is limited. The fundamental shift in the crypto sector from general-purpose GPUs to more efficient, specialized ASICs for mining has largely decoupled the two industries. 

However, this alliance may still profoundly impact crypto. Experts particularly cited decentralized AI as the primary beneficiary of this partnership. 

These blockchain-based platforms aim to democratize AI by distributing the computational power needed for training and inference across a network of users, rather than relying on centralized tech giants. 

“The partnership… will be a boon to decentralized AI companies, most of which leverage blockchain technology in some way. Don’t be surprised if these companies begin making their way up the list of top coins in the space, as they incorporate improving AI technology,” Stadelmann told BeInCrypto.

Meanwhile, as new advanced hardware for AI is created through high-profile alliances, older but still powerful GPUs become more affordable. This increased availability allows decentralized projects to boost their capabilities without breaking the bank.

“[This] could be a great resource for decentralized AI projects to leverage either past-generation GPUs or any cost-efficient computing platform they release,” Miyachi said.

Ultimately, the alliance between Nvidia and Intel indicates that global technology is consolidating around AI. The real story for crypto lies in the ripple effect—a powerful catalyst that could finally cement the convergence of artificial intelligence and blockchain technology.

Expoin, a multi-chain decentralized exchange, built upon the powerful and secure technology of the Komodo blockchain platform. By integrating Komodo’s cutting-edge AtomicDEX technology, Expoin is set to redefine the cross-chain trading experience, offering users a truly decentralized, secure, and interoperable platform for digital asset exchange.

At the core of Expoin is the implementation of atomic swaps, a technology that enables peer-to-peer trading directly between users’ wallets without the need for a centralized intermediary. This eliminates the counterparty risk and custodial vulnerabilities that have plagued traditional cryptocurrency exchanges. Expoin leverages Komodo’s AtomicDEX, which has been in development since 2014 to provide a seamless and trustless trading environment.

By building on Komodo’s robust infrastructure, we are able to provide our users with a platform that is not only secure and reliable but also incredibly versatile. Our goal is to make cross-chain trading as simple and secure as possible, and Komodo’s technology is instrumental in achieving that vision.

In addition to its advanced trading capabilities, Expoin.io also benefits from Komodo’s Delayed Proof of Work (dPoW) security mechanism. This consensus protocol provides an additional layer of security by anchoring the Expoin blockchain to the Litecoin network, one of the most secure and established blockchains in existence. This makes the Expoin platform highly resistant to 51% attacks and ensures the immutability of its transaction history.

Expoin is committed to fostering a vibrant developer community and offers a comprehensive API for seamless integration with other applications and services. This allows developers to build custom trading solutions and further expand the capabilities of the Expoin.io ecosystem.

About Expoin.io: Expoin.io is a decentralized exchange platform that offers a secure, non-custodial, and cross-chain trading experience. By leveraging AtomicDEX technology, Expoin provides users with a truly decentralized and interoperable platform for digital asset exchange.

To learn more, visit https://expoin.io/.

Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

Michelle DG

Michelle is an editor at CoinCentral & Blockonomi, covering the latest trends in crypto, blockchain, and digital finance. With a sharp eye for detail and a passion for emerging technologies. [email protected]

Updated Dec 1, 2025, 5:14 p.m. Published Dec 1, 2025, 1:00 p.m.

2 min read

Gleec buys Komodo’s cross-chain DeFi stack in $23.5M deal. (Pixabay, modified by CoinDesk)Summary

Gleec said it bought the full Komodo Platform ecosystem, including its tech stack, brand, token infrastructure and team.While the company declined to say how much it paid, it valued the acquisition at $23.5 million.Komodo’s atomic-swap trading stack will become part of Gleec’s regulated financial suite, enabling bridge-free, cross-chain swaps and expanded enterprise services.Gleec acquired the entire Komodo Platform ecosystem, bringing one of crypto’s earliest atomic-swap and cross-chain technology stacks under the umbrella of a licensed financial services provider, the digital asset platform said in a press release on Monday.

While the price paid was not disclosed, Gleec said the assessed value of the Kimodo ecosystem was $23.5 million.

The purchase includes Komodo’s brand, tech suite, token infrastructure and core developers, giving Gleec full ownership of a system that already powered parts of its decentralized exchange (DEX) and enabling faster integration with products such as its crypto debit card, virtual IBANs and fiat on- and off-ramps.

Gleec also plans to offer white-label DEX and blockchain services to institutions seeking cross-chain capabilities without relying on custodial bridges.

Komodo’s technology is built around native atomic swaps, allowing cross-chain trading without wrapped assets or bridges, an attack vector responsible for nearly half of all crypto value stolen to date, according to research from Chainalysis.

Gleec CEO Daniel Dimitrov said the acquisition embeds a mature decentralized trading stack into a regulated environment, while Komodo CTO Kadan Stadelmann, said in the release that the move gives the technology the compliance footing needed for wider adoption.

The Komodo ecosystem and KMD will continue under the Gleec umbrella for now, with a decision about the token in the future, whether it will be merged over to GLEEC or kept separate.

Gleec expects full integration of the Komodo stack in early 2026, with continued expansion of its B2B infrastructure.

Read more: Crypto Wallet Firm Exodus Buys Baanx and Monavate for $175M

CORRECT (Dec. 1, 17:10 UTC): Gleec clarifies that the assessed value of Kimodo was $23.5 million. An earlier version of this story said Gleec paid $23.5 million.

AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

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DA Davidson Raises Micron’s Price Target to $2,000, Retains Buy Rating

U.S. investment bank DA Davidson released a research note stating that Micron Technology has entered a new phase with one of the best performance visibility in the semiconductor industry, a stark contrast to its past standing in the sector. Driven by another quarter of results that handily exceeded expectations and positive forward guidance, Micron’s stock price surged sharply. These signals indicate that the current memory chip boom cycle is far from over. While the company is ramping up capacity investments (with capital expenditure (CAPEX) projected to hit $10 billion in the fourth quarter of fiscal 2026, which will bring additional supply), management expects the memory market to remain tight on supply and demand at least through 2027. Against this backdrop, DA Davidson reiterated its "Buy" rating on Micron and raised its price target from $1,500 to $2,000, equivalent to a 20x price-to-earnings (P/E) ratio based on the company’s 2026 calendar year expected earnings per share (EPS).

10 minutes ago

Morgan Stanley raises Micron's price target to $1,200, maintains 'Overweight' rating.

Morgan Stanley released a report raising Micron Technology (MU.O)’s price target from $1,050 to $1,200, while maintaining an "Overweight" rating. The investment bank lifted its fiscal 2027 earnings per share (EPS) forecast for the chipmaker by roughly 40% to $168, and upgraded its free cash flow (FCF) projection from $104 billion to $140 billion. Aligning with Micron’s management, the bank holds that AI will push DRAM demand to consistently outpace supply significantly after 2027. Micron’s last fiscal quarter results matched this trend, with both its quarterly performance and outlook showing notable upside potential.

10 minutes ago

US officials: Israel has withdrawn troops from parts of the buffer zone in southern Lebanon.

A U.S. State Department official said Israel has withdrawn from parts of the buffer zone in southern Lebanon, describing the move as a "goodwill gesture" toward the Lebanese government.

10 minutes ago

CBRS trades below IPO price post-earnings: Erases all gains six weeks after listing, two smart money firms net $5.8 million from first-day IPO shorts.

According to Hyperinsight monitoring, Cerebras (CBRS), the AI chip firm previously dubbed "Nvidia’s strongest challenger", saw its stock price fall in stages after reporting its first quarterly results since going public, as negative guidance overshadowed better-than-expected performance. The stock has dropped roughly 22% since the earnings release and officially broke below its IPO price today. On-chain whales are overall bearish. CBRS trades at $184 on the Hyperliquid platform, down 7.7% in 24 hours. Large-scale short positions (million-dollar level) total around $11.62 million, 2.39 times the long positions ($4.87 million). Two major short positions were placed precisely at high levels as early as the IPO day or even before the IPO: - Whale 0xe0ff: Shorted at $284.51 on May 14 with a 3x leveraged position of $6.13 million, generating an unrealized profit of $3.24 million (+104%); - Whale 0x9996: Shorted at $275.92 on May 11 with a 5x leveraged position of $5.48 million, generating an unrealized profit of $2.64 million (+162%). It is learned that both addresses currently hold short positions in both CBRS and SPCX, and have recorded substantial unrealized profits, preferring to place short positions at high levels before or on the day of major stock listings. With the realization of negative earnings news in this round, the combined unrealized profit of the two positions is around $5.88 million. Currently, the average entry price of CBRS short whales is around $275, and the current price is over 30% lower than that. The nearest short liquidation line is at $200.13, about 7% away from the current price.

10 minutes ago

Multiple high-performing domestic public mutual fund products have tightened their purchase restrictions.

E Fund Management announced in its latest filing that the E Fund Information Industry Select Fund, managed by Zheng Xi, has cut its purchase limit to 10,000 yuan. The same purchase limit reduction to 10,000 yuan applies to another fund under his management, E Fund Information Industry Fund, while E Fund Global Growth Select Hybrid Fund (QDII) has lowered its purchase limit to 10 yuan. In addition, Guolianan Preferred Industry Fund, Harvest Tech Innovation Fund, and Principal Performance-Driven Fund have also announced purchase limits or adjustments to their limits recently. Jin Zicai, a fund manager closely watched by the market, imposed additional purchase limits on multiple public offering funds under his management, with the four funds involved cutting their purchase limits to 500 yuan starting June 23. Purchase limits on high-performing funds likely stem from multiple considerations: they can avoid return dilution caused by short-term concentrated subscriptions, and proactive limits during overheated market conditions also send risk warning signals to the market. As the first half of the year draws to a close, such moves have become increasingly frequent. Overall, Wind data shows that since June alone, 19 funds with year-to-date net asset value returns exceeding 90% have suspended large subscriptions or adjusted their purchase caps. (Source: Cailian Press)

10 minutes ago

The US stock market's optical communication sector rises across the board in pre-market trading, with Corning up 9.28%.

According to Bitget market data, the U.S. stock market's optical communication sector saw broad pre-market gains, with MRVL rising 4.99%, LITE up 3.24%, Nokia up 3.11%, Corning up 9.28%, and AXTI up 6.69%.

10 minutes ago

KMD: Mandatory Komodo Daemon Update Before January 1, 2026

Months ago, Binance announced its Binance US and began to accept deposits from US citizens on September 18, starting with Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC) and USDT.

Binance US later grew this number to 19 and according to a recently published blog post written by Binance US CEO Catherine Coley, the company is now considering adding another 18 tokens to those already listed.

In the post, the exchange suggests that its decision to expand its list of supported tokens is borne out of the need to have “the most diverse selection of high-quality digital assets, without high fees.”

This expansion is bound to ensure that all of the exchange’s customers are not denied access to the bigger market with a lot more tokens and competition, ensuring that customers can trade assets with “true utility.”

The tokens currently been considered are Celer Network (CELR), Decreed (DCR), Enjin Coin (ENJ), Fantom (FTM), Icon (ICX), IOST (IOST), Komodo (KMD), OmiseGo (OMG), Harmony (ONE), Ontology (ONT), Ren (REN), Status (SNT), Theta (THETA), TomoChain (TOMO), Tron (TRX), NEM (XEM), Tezos (XTZ), and Hedera Hashgraph (HBAR).

 

The announcement also adds a reminder that all new users will get a $15 bonus when they sign up and will be able to trade free of charge for 30 days as it has been doing since the launch. Because Binance US is unavailable in some US states, the announcement also intimates that the platform is working on expanding access to the states that do not have Binance US access.

On the issuance of these tokens, Coley suggests that the company will take whatever measures it deems fit, to protect against fraud:

“Binance.US recognizes that the ease of issuing blockchain tokens and the perceived lack of regulation could make these tokens targets for abuse. Binanace.US has both legal obligations and moral duties to shield our users from fraudulent blockchain projects and combat financial crimes.”

Coley then concludes by asking the public to do “digital homework” before any decisions are made suggesting that customers are to not only learn about the prospective assets but also about methods being used by Binance.

Hacked Italian Exchange Altsbit to Shut Down in May 2020

Altsbit has lost nearly all of its funds in a hack this month.  Due to this, it will be shutting down his services in May 2020. The hack caused Altsbit to lose 6.9 bitcoins, 23 ETH tokens as well as many other losses in different cryptocurrencies It was reported recently that a small cryptocurrency platform, Altsbit, lost nearly all of its funds in a hack this month. Due to this, it will be shutting down his services in May 2020.

It was first reported on the 6th of February that this hack took place on the Italian platform releasing withdrawal instructions on the 9th of February, at the end of last week. Going off what the statement says, the hack caused Altsbit to lose 6.9 bitcoins, 23 ETH tokens as well as many other losses in different cryptocurrencies including Pirate Chain and Komodo (KMD).

A significant part of Altsbit’s crypto funds were held in cold storage. Despite this, the exchange will still be terminated on the 8th of May. The firm has nevertheless promised to refund all the affected users from the cold storage funds.

In the statement, they say:

“Refunds will begin on February 10, 2020 and end on May 8, 2020, after this date it will no longer be possible to request a refund as the Altsbit platform will be terminated.”

Writing in an email, a spokesperson from the exchanges confirmed that the company’s decision to shut down is final and it doesn’t seem like there is any going back from here. All of these customers will be reimbursed. They added, “we will refund whatever we are holding on cold storage to users and then the platform will close down.”

For more news on this and other crypto updates, keep it with CryptoDaily!

Tagged:

Italy's bitcoin exchange closes after hackers steal over R $ 300 million

Market continues its decline as Bitcoin closes in on $8,400

The recent $1.5 billion Bybit hack turned North Korean Lazarus Group into one of the top 15 Ethereum holders in the world. The breach sent shockwaves through the crypto space, alerting users who previously thought Ethereum was among the safest and most decentralized networks.

In a conversation with BeInCrypto, representatives from Holonym, Cartesi, and Komodo Platform discussed the implications of this breach, steps to curb similar situations in the future, and how public trust in Ethereum can be restored.

A Different Kind of BreachThe Bybit hack shook the crypto community not just because of the quantity of funds stolen but also because of the nature of the breach. 

The Bybit breach was the largest in crypto history. Source: X.While other crypto exchange breaches, like the 2014 Mt. Gox episode or the 2018 Coincheck hack, involved private keys or direct compromises of exchange wallets, Bybit’s situation was different.

Rather than stealing private keys, the hackers manipulated the transaction signing process, indicating that it was an infrastructure-level attack. The transaction signing process was targeted instead of the asset storage itself.

Forensic analysis of the Bybit hack traced the breach to Safe Wallet, a multi-signature wallet infrastructure provided by a third party. Safe Wallet uses smart contracts and cloud-stored JavaScript files on AWS S3 to process and secure transactions.

Hackers could secretly modify transactions by injecting malicious JavaScript into Safe Wallet’s AWS S3 storage. Therefore, although Bybit’s system was not directly hacked, the hackers altered the destination of transfers that Bybit had approved.

This detail exposed a serious security flaw. Third-party integrations become weak points even if an exchange locks down its systems. 

Lazarus Group Among Ethereum’s Top Holders‬‭Following the monumental hack, North‬‭ Korea‬‭ is‬ among‬‭ the‬‭ top‬‭ 15‬‭ largest‬‭ Ethereum‬‭ holders.‬‭ 

According‬‭ to‬‭ on-chain‬‭ data,‬‭ Gemini,‬‭ which‬‭ previously‬‭ held‬‭ the‬‭ 15th‬‭ position,‬‭ holds‬‭ 369,498‬‭ ETH‬‭ in‬‭ its‬‭ Ethereum‬‭ wallet.‬‭ Since‬‭ Bybit‬‭ hackers‬‭ stole‬‭ over‬‭ 401,000 ETH,‬‭ they‬‭ now overtook Gemini in ownership.

Following the Bybit hack, the Lazarus Group was among Ethereum’s top 15 holders. Source: Etherscan.The‬‭ fact‬‭ that‬‭ an‬‭ infamous‬‭ group‬‭ like‬‭ Lazarus,‬‭ responsible‬‭ for‬‭ several‬‭ high-profile‬‭ hacks‬‭ in‬‭ the‬‭ crypto‬‭ sector,‬‭ now‬‭ holds‬‭ such‬‭ an‬‭ important‬‭ amount‬‭ of‬‭ Ether‬‭ raises‬‭ several‬‭ trust‬‭ issues. While initial speculation pointed toward a weakness in Ethereum’s decentralized nature, Nanak Nihal Khalsa, Co-Founder of Holonym‬, discards this claim. 

Given that Ethereum’s governance and consensus mechanisms rely on validators rather than token holders, the Lazarus Group holding such a substantial amount of ETH does not compromise the network’s overall decentralization. 

“‬‭Lazarus still owns less than 1% of ETH in circulation, so I don’t see it as highly relevant‬‭ beyond simple optics.‬‭ While it’s a lot of ETH, they still own less than 1%. I’m not worried at all,” Khalsa‬ told BeInCrypto.

Kadan Stadelmann, Chief Technology Officer at Komodo Platform, agreed, emphasizing that Ethereum’s infrastructure design is the source of its weakness.

“It proves a vulnerability in‬‭ Ethereum’s architecture: illicit actors could expand their holdings further by targeting exchanges or‬‭ DeFi protocols, and thus wield an influence over market dynamics and possibly change governance‬‭ decisions in Ethereum’s off-chain processes by voting on improvement proposals. While Ethereum’s technical decentralization has not been compromised, Lazarus Group has eroded trust in Ethereum,” Stadelmann told BeInCrypto. ‭

However, while token holders cannot influence Ethereum’s consensus mechanisms, they can manipulate markets.

Potential Impacts and Market ManipulationsThough the Bybit hackers have already finished laundering the stolen ETH, Stadelmann outlined a series of possible scenarios that the Lazarus Group could have carried out with the massive wealth they originally accumulated. One option is staking.

“Ethereum’s Proof-of-Stake security relies on honest validators and resilience of wallets, exchanges, and‬ dApps. While the Lazarus Group’s haul doesn’t threaten the blockchain’s consensus mechanism, since‬‭ their holdings are not known to be staked, it certainly raises the spectre that this could be achieved.‬‭ They’re unlikely to do this, as the funds they’ve stolen have been tracked,” he explained.

Along equally unlikely lines, the Bybit hackers could cause a significant market downturn by selling their holdings altogether.

“‬Their holdings do give them an opportunity to manipulate markets, such as if they dump their holdings.‬ This would be difficult to do since their ETH are flagged. If they try to exchange the ETH via selling, their‬ assets could be frozen,” Stadelmann added.

What Stadelmann is most worried about looking toward the future is the impact hacks can have on Ethereum’s Layer 2 protocols.

“Lazarus and its partners could attempt to attack Layer 2 protocols like Arbitrum and Optimism. A censorship attack on layer 2 could undermine dApps and cause the ecosystem to move towards centralized transaction sequencers. That would underscore Ethereum’s weakness,” he said.

While Ethereum’s network was not compromised, Safe Wallet’s attacks underscored the vulnerabilities in the security of the greater ecosystem. 

“The breach has certainly increased tensions in the ecosystem, and created an uneven token distribution. The question remains: will‬‭ Lazarus or other hacking groups associated with state actors attempt to exploit the Ethereum ecosystem, particularly at layer 2?” Stadelmann concluded.

It also raised questions about the need for better security standards.

Verification Over TrustKhalsa argued that the Bybit hack, while not a threat to Ethereum’s core security, highlighted the need for improved security standards among users.

“Saying the hack is Ethereum’s problem is like saying death by car accident is the car’s problem when the driver didn’t wear a seatbelt. Could the car‬‭ have more safety measures? Yes, and it should. But as a seatbelt has little to do with the‬ car, the hack had little to do with Ethereum. It’s a protocol and it worked exactly as intended. The problem is the lack of convenience and know-how for securely custodying‬‭ digital assets,” he said. 

Specifically, the incident exposed vulnerabilities within multi-signature wallets, demonstrating that reliance on third-party integrations can introduce significant risks, even with robust internal security. Ultimately, even the most sophisticated wallet security measures become ineffective if the signing process can be compromised.

‭Khalsa emphasized that proven self-custody security measures exist, while multi-signature wallets are not among them. He added that government agencies should have long ago advocated for superior security standards and practices.

“The repercussion we can all hope for is getting serious about stopping North Korea from stealing more funds.‭ While it’s not the government’s place to change how self-custody is carried out, it is absolutely the government’s place to encourage better industry ‘best practices.’ This attack was due to the myth that multisigs of hardware wallets are secure. Sadly it took this attack for it to be acknowledged, but better standards set by‬ government agencies could encourage safer practices without the need for $1.5 billion compromises to wake up the industry,” he asserted. ‭

The incident also exposed the need to verify transactions rather than trust third-party applications.

A Solution to Front-End VulnerabilitiesBy injecting malicious JavaScript into vulnerable Safe Wallet cloud servers, the Lazarus Group launched a sophisticated attack, enabling them to mimic the interface and trick users. 

According to Erick de Moura, co-founder of Cartesi, this exploit highlights a critical vulnerability. The issue lies in the reliance on centralized build and deployment pipelines within a system intended for decentralization.

“The SAFE incident‬‭ serves as a stark reminder that Web3 is only as secure as its weakest link. If users cannot verify that the interface they interact with is genuine, decentralization becomes meaningless,” he said.

De Moura also added that a common misconception in Web3 security is that smart contract breaches are among the most effective forms of hacking exchanges. However, he deems that the Lazarus Group’s strategy on Bybit proves otherwise. Injecting malicious code into the‬‭ front-end or other off-chain components is much more seamless. 

“The hackers didn’t need to breach smart contracts or manipulate ByBit’s systems directly. Instead, they injected malicious code into the‬‭ front-end interface, deceiving users into thinking they were engaging with a trusted platform,” he explained. 

Despite these vulnerabilities, a transition from trust-based to verifiable security is possible.

The Case for Reproducible BuildsDe Moura views the Bybit hack as a wake-up call for the Web3 community. As exchanges and developers reassess their security, he argues that verifiable, reproducible builds are essential to prevent future attacks.

“At its core, a reproducible build ensures that when source code is compiled, it always produces the same binary output. This guarantees that the software users interact with hasn’t been‬‭ altered by a third party somewhere in the deployment pipeline,” he said.‬

Blockchain technology is vital to ensure that this process takes place.

“Imagine a system where every software build generates binaries and resources in a verifiable way, with their fingerprints (or checksums) stored on-chain. Instead of running such builds on cloud servers or computers that are prone to security breaches, they can be executed on dedicated blockchain co-processors or decentralized computational oracles,” De Moura told BeInCrypto.

Users can compare the checksum of the front-end resources they are loading against on-chain data through a browser plugin or feature. A successful match indicates an authentic build interface, whereas a discrepancy signals a potential compromise.

“If a verifiable reproducible builds approach had been applied to SAFE, the exploit could have been prevented. The malicious front-end would have failed verification against the on-chain‬ record, immediately exposing the attack,” De Moura concluded.

This approach presents a helpful alternative to relying on users with varying levels of self-custody knowledge.

Addressing Gaps in User KnowledgeAs attacks grow more sophisticated, the lack of user knowledge about how to securely custody digital assets presents a significant vulnerability. 

The Bybit hack frustrated users who originally thought that reliance on third-party integrations would be enough to safeguard their assets. It also affected the broader perception of cryptocurrency security.

“‬It shows crypto is still in the Wild West and in its growing phase in terms of security. I think in a couple years we will have superior security but in its current state, the public fear is well-justified,” Khalsa said. 

Ultimately, embracing different approaches will be essential for the Web3 community to build a more secure and resilient ecosystem. A good starting point is to demand better industry practices and evaluate the integration of verifiable, reproducible builds.

Alt Season Coming: Which Altcoins Will “Outperform Bitcoin” in 2020?

Posted: January 19, 2020

It is a common narrative in the digital asset industry that most of the time, Bitcoin is responsible for driving the market on a bullish surge. This is largely due to the fact that presently, Bitcoin dominates the crypto-market cap, with a dominance index of 66.3%, at press time.

However, over the past week, the tables may have turned a little in favor of the altcoins, with these crypto-assets outperforming the world’s largest cryptocurrency in some aspects.

According to Arcane Research, Bitcoin’s market-cap-weighted index has lagged behind mid-caps and small-caps, since the start of the year.

Source: Arcane Research

It can be observed that the Mid-cap crypto-index has led the way since 1 January, recording a collective growth of 47.19 percent. According to Weiss Mid-Cap Crypto Index, the registered growth is above 50 percent, at press time.

Weiss Crypto ratings for the Small-Cap Crypto-Index have been incurring a positive rise as well with a return of over 35% in 2020. The likes of Komodo, Sia, HyperCash, and Bitshares have earned a major bullish advantage over the bullish period.

For Mid-Cap altcoins, Dash has been a significant performer with a registered hike of over 100 percent. In fact, the growth briefly allowed Dash to break into the top 10 of the world’s top crypto-assets, before the altcoin failed to consolidate higher. Dash has registered a significant drop since, and it is down to 16th on the cryptocurrency rankings charts.

Bitcoin, however, has lagged behind all the indexes in 2020 as it registered a spike of only 21 percent in 2020. Moreover, it was also reported that BTC lost over 3 percent of its total market share over the past week, dropping down to 66% from 69% in terms of market dominance.

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