Uncover a key Lightning Network vulnerability, why FTX creditor claims are on the upswing, and how MicroStrategy profited from its $4.68B Bitcoin investment.
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Bitcoin Developer Uncovers Lightning Network Vulnerability

Bitcoin Developer Uncovers Lightning Network Vulnerability

Uncover a key Lightning Network vulnerability, why FTX creditor claims are on the upswing, and how MicroStrategy profited from its $4.68B Bitcoin investment.

Date:
Oct 24, 2023
| Issue
#
132

Welcome to the first edition of Datawallet Daily for the week. As always, we're spotlighting the key stories that have shaped the crypto market in the last 24 hours:

Before diving into the news, let's take a quick look at how markets are performing.

Bitcoin Developer uncovers Lightning Network vulnerability

Antoine Riard, a prominent Bitcoin developer, shed light on a noteworthy vulnerability in the Bitcoin Lightning Network. This layer, crafted to amplify the pace of blockchain transactions, appears to have a chink in its armor. Specifically termed as "replacement cycling attacks," this flaw holds potential to compromise funds coursing through the network.

Interestingly, while the revelation did sound the alarm bells, Riard reported zero confirmed instances of this vulnerability being exploited in the real world over the past 10 months. Yet, the ripple effect might extend further than just the Lightning Network. Riard's deep dive suggests that various other Bitcoin protocols and applications, including coinjoins, peerswap, and batch payouts, could also be impacted by the flaw.

In a move that captured the attention of crypto enthusiasts, Riard unveiled his decision to step away from the Lightning Network's developmental journey, citing pressing security challenges. 

FTX Creditor Claims See Upswing Amid Anthropic Investments

Thomas Braziel, a partner at 117 Partners specializing in crypto bankruptcy, highlighted the escalating value of FTX creditor claims. Claims have now changed hands for over 50 cents on the dollar, a noteworthy shift. In one significant transaction, a claim with a price tag exceeding $20 million went under the hammer for about 52 to 53 cents.

This newfound investor confidence is seemingly linked to FTX's significant stake in Anthropic. With Amazon's recent $4 billion investment in Anthropic, expectations of significant fund recoveries for creditors have heightened. The crypto world waits with bated breath as these developments unfold.

MicroStrategy's $4.68B Bitcoin Bet Pays Off 

MicroStrategy, headquartered in Tysons, Virginia and led by CEO Michael Saylor, is reaping the benefits of its substantial $4.68 billion investment in Bitcoin. At the current market rate of approximately $30k for Bitcoin, the company's return on investment is in excess of $340 per BTC. To quantify: MicroStrategy's treasury holdings amount to 158,245 BTC, yielding a net profit of over $54 million.

Given this success, MicroStrategy is considering additional acquisitions of Bitcoin. To facilitate this, they are contemplating the sale of company stock. It's worth noting that their initial investment in Bitcoin was made at an average price of $29,582 per BTC, demonstrating their strategic foresight in the cryptocurrency market.

Worldcoin Shifts to WLD Payments

Worldcoin Foundation has a new plan in motion. They're switching from paying their orb operators in USDC stablecoins to their very own WLD tokens. Expected to finalize by next month as part of a post-launch transitional phase, this move will not apply to users in the U.S. and certain other territories.

The WLD token kicked off with just a bit over 100M in circulating supply. They did this to get as many people as possible to join their network. The supply is expected to grow, as most of the Worldcoin tokens will be given to both old and new users as gifts in the coming years.

Meanwhile, the WLD token's price has rebounded to $1.64 after a post-launch dip.

Other breaking news

Wrapping up

Alright, folks, wrapping up today's round-up. FTX investors are finally seeing light at the end of the tunnel. Meanwhile, the Bitcoin lightning network is hitting a few bumps, and it doesn't help that a key developer is taking a step back. But on the bright side, Bitcoin's price is soaring, and early players like MicroStrategy are pretty happy. Additionally, Worldcoin's move to WLD Payments should boost its token supply. Stay with us for continuous updates in our ever-evolving crypto world.