Market update

Cointree Crypto Market Update - September 4th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$84,272, moving -3.84% at the time of writing. Meanwhile, Ethereum ends at AU$3,512 moving -2.58% week-on-week. On the Altcoin side, Solana dips -13.26%, Cardano -9.56%, and XRP drops -2.53%.

🗞 What’s happening in the news?

⛓️‍💥 Polygon's MATIC Upgrade to POL

The much-anticipated Polygon (formerly MATIC) upgrade is here, and it’s all about transformation. Polygon is set to swap its longstanding MATIC token for a new token called POL. This upgrade brings significant changes, notably in tokenomics, with a new emission rate of 2% annually. But what does this mean for you?

Polygon is aiming to evolve with its “Polygon 2.0” roadmap. POL will be the native token across multiple Polygon chains, including the popular Polygon PoS chain. In its first phase, POL replaces MATIC as the staking and gas token. Marc Boiron, CEO of Polygon Labs, explains,

“The biggest reason why the upgrade was needed from a technical perspective, is that the MATIC upgrade keys were burned... We couldn't make changes to that token."

With POL, a new emission system is being introduced, allowing the community treasury to fund ecosystem growth. 2% of the supply will be split between validators and the treasury, helping to decentralise the network further and support community-driven projects. The value proposition for holders is clear: as more chains adopt decentralisation, POL holders will receive fees from these networks.

🌪️ WazirX Hacked: $6.5 Million Moved to Tornado Cash

In a major security breach, hackers targeting the WazirX crypto exchange have moved 2,600 ETH (equivalent to AU$10.2 million) to Tornado Cash, a notorious mixer used by cybercriminals to launder stolen funds. This incident highlights the ongoing challenges exchanges face with security.

The WazirX hack, which occurred in July 2024, led to the loss of over AU$360 million. Trading on the platform has been paused since the attack, and users are still awaiting news on recovering their funds. Unfortunately, reports suggest that some users may not receive the full value of their cryptocurrency due to the platform's restructuring.

This attack is believed to have been orchestrated by the infamous North Korean Lazarus Group, the same group behind the massive AU$900 million Ronin hack in 2022. PeckShield, a leading security firm, was able to track the funds to Tornado Cash, further confirming the role of this group in the attack.

🔪 First Crypto Seizure Case following Machete Robbery in Scotland

In an unprecedented case, a Scottish court has seized £110,000 ($198,000) worth of Bitcoin from John Ross Rennie, who was convicted as the “technical brains” behind a 2020 machete robbery involving cryptocurrency. The robbery involved a physical assault where the victim was forced to transfer their Bitcoin at knifepoint.

This is a landmark case in Scotland, as it marks the first time police have successfully traced and seized stolen cryptocurrency. The seized Bitcoin has since been converted into cash by prosecutors. This case underscores the growing sophistication of criminals in the crypto space and the increased capability of law enforcement in tracking and retrieving stolen funds.