Are Soulbound (SBT) tokens the next BIG thing?PLUS Another MAJOR HACK rocks the crypto world!
Overview
ELI5: Soulbound Tokens (SBT).
Bitcoin run begins to flutter.
DXY testing major support.
Binance’s Soulbound token (BAB).
The $190m Nomad Bridge hack.
Good morning Fam,
We’re not just here to give you the news, we’re here to also help you understand it.
Today, Binance announced the release of its Soulbound token Binance Account Bound (BAB), and if you are clueless about soulbound tokens (SBT), then this might be the read for you.
Explain it Like I’m 5: Soulbound Tokens (SBT).
Simple answer: SBTs are a one-of-a-kind digital ID to navigate the decentralized digital world. A single token tied to your crypto-wallet and your identity.
Soulbound Tokens are an essential piece of the decentralized world or decentralized society (DeSoc). The non-transferable tokens are tied to a “soul” or to put it mildly, a real person. It's a method to identify a person on the other side of a crypto-based transaction with the benefit of privacy. Simple but game-changing.
Soulbound tokens were originally conceived by Vitalik Buterin and were inspired by World of Warcraft’s “soulbound” feature for spells or items that prevent them from being sold in the games market.
Soulbound tokens will be used for:
Tracking memberships privately.
Credentials.
Governance and governance voting.
Transaction verifications.
To prevent scams and fraud.
If you’d like to read Vitalik’s abstract on “Finding Web3’s Soul” you can find it here.
Market update 🌍
The Bitcoin chart looks very similar to yesterday’s chart with price continuing to retrace after the weekend highs. A test of the $22k support seems likely this week with the bulls asking for the uptrend (green) to continue. BTC completed the daily candle at $23,259.
High-resolution chart
DXY/USD
When economies become stressed, traders gravitate towards the reserve currency. The continuing rise of the dollar reflects the state of the world economy, although the charts may be forecasting a change. The dollar index (DXY) nears its uptrend support (green) level with investors hoping for a trend reversal. A break in the current DXY trend could signal a return to risk-on strategies, which bodes well for crypto.
High-resolution chart
Newswatch 📰
Binance’s soulbound token. The crypto exchange giant looks to release its first non-transferable soulbound token on the Binance Smart Chain (BSC). The soulbound token, Binance Account Bound (BAB) will be available on the Binance mobile app for know-your-customer (KYC’d) customers.
Socios partners with FC Barcelona. Socios.com has announced a strategic partnership deal with football club FC Barcelona that includes a 24.5% stake in the Club’s digital content. The partnership will focus on accelerating FC Barcelona’s Web3 growth strategy.
Nomad bridge hack. The Nomad token bridge has been exploited for $190.7m of Total-Value-Locked (TVL). The team has confirmed the exploit but little else was mentioned since. The bridge protocol recently participated in a seed round that included Coinbase Ventures, Crypto.com, Polygon and others.
News tidbits:
N. Korea targeting an increase of crypto insider attacks.
11 charged by SEC in Forsage crypto ponzi scheme worth $300m.
Japan scraps CBDC plans after lack of interest.
At the protocol level ⛓
Aave’s GHO stablecoin is a “GO”! The Aave community has voted 99.99% in favor of launching the GHO token, a decentralized, overcollateralized stablecoin on the Aave protocol. Aave now looks to create a genesis parameter proposal.
Protocol level tidbits:
Near to decentralize wallet offerings.
A dive into GMX multiplier points.
Synthetix (SNX) staking guide.
NFT & metaverse update 🐵
British rock band Muse to release new album as a limited edition NFT on Polygon’s Serenade.
Writer’s take
Vitalik Buterin warned the crypto community in early January this year, saying the future will be “multi-chain” NOT “cross-chain.” But the exploits continue. Today another crypto bridge (Nomad) was exploited, this time for $190m.
Here’s a list of recent cross-chain bridge hacks and exploits this year:
Trust is essential in crypto and security is a MUST. If the future is cross-chain, these essential structures (bridges) will have to prove critics like Buterin wrong before the crypto community begins to falter in faith.
Just a quick fact check: Badger wasn’t a bridge hack