Changpeng Zhao, the CEO of Binance, has recently made a prediction that the next bull run for cryptocurrencies will happen after the coverage of CCTV, China’s state-run television channel, on cryptocurrencies. This comes after CCTV aired a program last October that discussed the use of blockchain technology and cryptocurrencies, including Bitcoin and Ethereum.
CCTV’s coverage was a significant event in the cryptocurrency world, especially since China was once a major player in the market before the country’s regulatory crackdown on digital assets. The program was a positive development for the industry, as it served as an endorsement of sorts for the legitimacy and potential of blockchain technology and cryptocurrencies.
Zhao has expressed his belief that CCTV’s coverage will lead to a surge in interest in cryptocurrencies, which will, in turn, trigger a bull run. A bull run is a situation where the price of a particular cryptocurrency or all cryptocurrencies increases significantly over a short period. This typically leads to a rush of investors looking to get in on the action, driven by the fear of missing out on potential profits.
Zhao’s prediction is not unfounded, as there are several historical examples of significant bull runs occurring in the wake of positive news coverage. For instance, in late 2017, Bitcoin saw a massive surge in price and volume after multiple mainstream media outlets covered the cryptocurrency’s performance and increasing value.
However, Zhang Jian, the founder of Fcoin, holds a different view. In a recent interview, Zhang explained that CCTV’s coverage on cryptocurrency has little to no effect on China’s crypto market since it was merely educational. He also pointed out that the report failed to mention China’s stance on initial coin offerings (ICOs), which is still very prohibitive.
Despite Zhang Jian’s counter-argument, it is essential to note that CCTV is no ordinary media outlet. It is a state-run TV channel, and the content it airs tends to influence the opinions of a significant portion of China’s population. As such, critical coverage of cryptocurrencies can have severe consequences for the market. CCTV’s positive coverage could, therefore, act as an entry point for potential investors who may have previously been hesitant to invest in cryptocurrencies.
Additionally, the COVID-19 pandemic has raised interest in digital currencies as governments globally pump trillions into their economies, leading to fears of inflation and currency devaluation. The Bitcoin halving event in May 2020, which saw the rate at which new Bitcoins are created every ten minutes halved to 6.25 BTC, also proved to be an event to watch out for in the cryptocurrency world.
In conclusion, while Zhang Jian’s argument holds some truth, Zhao’s prediction is still a significant possibility. CCTV’s coverage will likely have a positive impact on the crypto market and may spur a bull run. The current global economic landscape, coupled with significant crypto events like the halving, will also likely impact the cryptocurrency market’s future. Nonetheless, crypto investors need to remain vigilant and cautious as bull markets always come with significant volatility, which could be sudden and rather extreme.
Celer Network, the leading inter-blockchain and cross-layer communication platform, recently encountered a critical vulnerability in its State Guardian Network (SGN), which is designed to enable cross-chain communication. The vulnerability posed a significant risk as a malicious validator could have compromised the entire network and associated applications, including the widely-used Celer cBridge, which currently boasts a Total Value Locked (TVL) of over $130 million.
Leading blockchain security firm, Jump Crypto, discovered the flaw, and promptly reported it to the Celer team, who acted swiftly to address the issue. Fortunately, no instances of malicious exploitation were detected before the flaw was patched.
Celer’s cross-chain communication and bridging products rely on the State Guardian Network (SGNv2), based on the Cosmos Proof of Stake (PoS) blockchain. Validators within the SGN monitor Celer’s onchain contracts for incoming messages or transfers and facilitate their execution on the destination chain.
While the onchain smart contracts of major bridge providers undergo rigorous scrutiny, thanks to their open-source nature and bug bounty programs, the same level of scrutiny is often lacking for off-chain components. Celer, like other bridge providers, relies on closed-source implementations and centralized components for off-chain operations, which may not be subject to the same bug bounty programs. This gap in security measures can leave these systems vulnerable.
Despite implementing defense-in-depth measures to mitigate the risks associated with the recent vulnerability, Celer’s built-in mechanisms primarily protect its bridge contracts. As a result, Decentralized Applications (dApps) built on top of Celer’s inter-chain messaging system remain exposed to these vulnerabilities. Celer is actively exploring potential solutions, such as implementing a dApp safeguard, to address this issue.
The Celer ecosystem comprises three unique products, namely, inter-chain Message Framework, cBridge, and Layer2.Finance. The protocol offers fast, secure, and cheap bridging between multiple chains. Outgoing transfers of high value are deliberately delayed, and the VolumeControl mechanism limits the extraction of tokens within a short timeframe. Moreover, designated Governor addresses can pause Celer’s core contracts, triggering an emergency halt in the event of under-collateralization caused by malicious transfers.
To avoid future vulnerabilities, Celer, and other bridge providers, must conduct regular security audits of closed-source implementations and centralized components. By doing so, they can mitigate risks and protect their users’ assets.
In conclusion, the recent vulnerability discovered in Celer’s State Guardian Network highlights the importance of robust security measures in the fast-evolving blockchain industry. While Celer acted promptly to address the flaw, the incident serves as a reminder that all blockchain projects, big and small, must prioritize security measures to protect their systems and users from malicious actors.
