Ether Lags Bitcoin in Countdown to Revamp of Ethereum Blockchain | Tech News

Ether Lags Bitcoin in Countdown to Revamp of Ethereum Blockchain

The cryptocurrency market is flashing some signs of caution with just two days to go before a critical software upgrade of the Ethereum network, the sector’s most commercially important blockchain.

| Updated on: Sep 14 2022, 13:47 IST
This malicious Firefox add-on stole thousands of dollars in cryptocurrency
1/6 A particular malicious add-on for Firefox, that goes by the name Safepal Wallet, has managed to scam users by stealing money from them and managed to live on the Mozilla add-ons store for seven months before getting detected and removed. (Pixabay)
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2/6 Safepal is essentially a cryptocurrency wallet application that is capable of holding more than 10,000 types of assets, including Ethereum, Bitcoin, Litecoin, etc. However, Safepal is an official smartphone app that is available for Apple and Android both. There are no known “authentic” Safepal browser extensions. (BleepingComputer)
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3/6 According to a post shared by a user who goes by the name Cali on the Mozilla Support forum, within a few hours of installing and logging in to the Safepal Wallet extension with their real Safepal credentials, they saw their wallet balance drop to $0 from $4,000.  (Mozilla Support Forum )
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4/6 While investigating Safepal Wallet, BleepingComputer came across the phishing domain used by the add-on and this webpage was also listed as the "support site" link on the fake add-on's home page: WHOIS records indicate the this phishing site was registered in January this year via Namecheap. And BleepingComputer reported that at the time of them filing this report, the webpage is still live and it instructs people to key in their "12-word Backup Phrase in the correct order to pair your SafePal Wallet". (BleepingComputer )
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5/6 Once the recovery phrase is entered and the form is submitted, the page refreshes without any noticeable response and the recovery phrase is sent to the attacker. A stolen recovery phrase can give attackers control over your wallet along with the ability to access and transfer funds. (Pixabay)
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6/6 Five days after Cali publicly reported the incident, a Mozilla spokesperson responded to say that they were investigating the issue and the page for Safepal Wallet has since been removed by Mozilla. The Mozilla add-ons store now has one-star reviews posted by some users that are warning others to not download “Safepal Wallet”. (BleepingComputer )
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Bitcoin, the world's largest cryptocurrency, held at about $22,270 as of 9 a.m. in London. (REUTERS)

The cryptocurrency market is flashing some signs of caution with just two days to go before a critical software upgrade of the Ethereum network, the sector's most commercially important blockchain.

The wariness is evident in the way Ether, the network's native token, is lagging Bitcoin of late: the second-largest digital asset is down about 13% in the past month, compared with an 9% drop in Bitcoin. The gap between a gauge of expected volatility in Ether and a similar index for Bitcoin is also elevated.

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At issue is whether the blockchain's revamp, which is designed to dramatically shrink its energy use, goes smoothly or not. There is also a risk that an Ether jump since mid-June driven partly by hype around the update -- known as the Merge -- will continue to fizzle once the upgrade is done and dusted.

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While it seems unlikely, “we can't rule out a buy-the-rumor sell-the-fact playing out” around the Merge, Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note Tuesday.

Bitcoin held at about $22,270 as of 9 a.m. in London, Ether wavered at $1,716 and the MVIS CryptoCompare Digital Assets 100 Index was steady.

Ether-based investment products saw outflows of about $62 million last week, accounting for the bulk of the cash pulled from digital-asset vehicles, according to data from CoinShares.

This was “despite the improved certainty of the Merge and perhaps highlights a concern amongst investors that the event might not go as planned,” James Butterfill, head of research at CoinShares, wrote in a note.

In the derivatives market, more crypto traders are shorting Ether ahead of Ethereum's biggest technical upgrade.

Before the shift from a so-called proof-of-work to proof-of-stake blockchain, expected Sept. 15, crypto and global markets have to get through the US inflation report Tuesday. The data will shape views on the likely severity of US monetary-policy tightening, which threatens to sap liquidity.

Weston from Pepperstone argued that “from a short-term trading perspective it feels like the weight of evidence is that traders are far better off watching variables such as liquidity and sentiment over the switch to ‘proof of stake.'”

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First Published Date: 14 Sep, 13:47 IST