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0x DEX Protocol Suspended Because of Vulnerability, Funds Safe

The Ethereum smart contract of 0x decentralized exchange protocol has been suspended after the discovery of a vulnerability in its code.

The Ethereum (ETH) smart contract of 0x (ZRX) decentralized exchange (DEX) protocol has been suspended after a vulnerability has been uncovered in its code, the project’s team announced in a Medium post published on July 13.

Per the announcement, third-party security researcher samczsun warned the 0x team about the vulnerability in the exchange smart contract and, after evaluating it, the team suspended the exchange’s contract and the AssetProxy contracts.

The vulnerability would have allowed an attacker to fill certain orders with invalid signatures. The announcement reassures that one has exploited this vulnerability and no users have lost their funds. The only consequence is apparently a temporary suspension of the service:

“Unfortunately, this also means the currently deployed 0x contracts cannot process trades and are unable to be used. A patched version of the Exchange contract — that we are confident fixes this vulnerability — and new AssetProxy contracts are being deployed to the Ethereum mainnet and we expect them to be ready to use later tonight.”

Lastly, the team notes that the vulnerability is not contained in its ZRX token contract and that user funds are safe. They thanked the security researchers while inviting other white hat hackers to participate in 0x’s bug bounty program:

“We also want to extend our sincerest gratitude to samczsun. We continue to offer a generous bug bounty to white hat hackers and community members that identify potential vulnerabilities. ”

As Cointelegraph reported in October last year, ZRX was the first ERC20 token to be listed on the Coinbase cryptocurrency exchange.

At the beginning of May, the Tron Foundation disclosed a fixed vulnerability that could have crashed its blockchain.

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Binance Announces Bitcoin-Pegged Token on Binance Chain

Major cryptocurrency exchange Binance announced BTCB, a bitcoin-pegged token on Binance Chain.

Major cryptocurrency exchange Binance announced BTCB, a bitcoin (BTC)-pegged token on its native blockchain, Binance Chain, in a blog post on June 17.

Per the announcement, the newly-released BEP2 token will be traded on Binance and will also be available on its decentralized counterpart Binance DEX. Furthermore, this asset is one of a series of cryptocurrency-pegged tokens which the company intends to launch on Binance Chain.

The post states that BTCB are 100% backed by bitcoin, with the reserves easily visible as they are recorded on the public blockchain. Binance noted that using bitcoin as a backing asset for the new token allows for more convenient audits, as the wallets are available to anyone through the public blockchain explorer:

“The blockchain offers a much easier way to audit a crypto reserve than a traditional bank balance tether.”

On Binance, the token will be traded against BTC, allowing users to exchange BTCB for the native asset to which it is pegged.

The post explains that creating cryptocurrency-pegged tokens on the Binance Chain will give users of the Binance DEX access to tokens that have their own blockchains and are not on the Binance Chain.

Furthermore, Binance says that an increased selection of tokens on the decentralized exchange will result in increased volume and liquidity. Still, the company admits that such an approach compromises decentralization:

“While this approach is more centralized than atomic swaps, we believe it provides a higher degree of ease-of-use to most traders. And most traders are already trusting Binance.com to hold their funds anyway.”

In an apparently related tweet earlier today, Binance CEO Changpeng Zhao announced that the exchange was about to move 9,001 BTC. In another tweet he posted hours later, Zhao seemingly confirmed that the transferred funds are meant to back its bitcoin-backed token:

Changpeng Zhao tweet. Source: TwitterChangpeng Zhao tweet. Source: Twitter

As Cointelegraph reported at the beginning of June, Binance DEX will block website access to users based in 29 countries, including the United States.

Ethfinex Trustless, a Bitfinex-owned hybrid cryptocurrency exchange and Binance DEX competitor, recently announced the launch of its on-chain decentralized over-the-counter service.

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Bitfinex Subsidiary Hybrid Crypto Exchange Ethfinex Trustless Launches Decentralized OTC

Ethfinex Trustless announced the launch of its on-chain decentralized over-the-counter service.

Bitfinex-owned hybrid cryptocurrency exchange Ethfinex Trustless announced the launch of its on-chain decentralized over-the-counter (OTC) service in a press release shared with Cointelegraph on June 3.

The system allegedly has no centralized order book or matching engine, and only financial instruments are restricted from the platform. Furthermore, the press release claims:

“Customers can trade any ERC20 token, and even specify custom Ethereum addresses for tokens which are not currently listed on any exchanges.”

Per the release, the new system uses blockchain to enforce an OTC transaction as an atomic swap. This removes the need for an escrow, according to the release, and reportedly “opens up OTC to anyone through significantly lower fees at 0.02%,” as the release claims those fees are usually 2% to 5% on traditional OTC desks.

The press release notes that Ethfinex Trustless OTC has no Know Your Customer (KYC) or signup process, but that people residing in the United States and other restricted countries are not permitted access to the service.

As Cointelegraph reported yesterday, the decentralized exchange (DEX) developed by major cryptocurrency exchange Binance will block website access to users based in 29 countries, including the U.S.

Also this week, Finnish P2P bitcoin (BTC) trading platform LocalBitcoins apparently removed its cash trading option from its service, according to online reports. The company had reported in February that it would be working towards compliance with European Union Anti-Money Laundering/KYC standards.

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Binance DEX Will Geoblock Users From 29 Countries, Including the US

The decentralized exchange developed by Binance warns that it will block access from 29 countries.

The decentralized exchange (DEX) developed by major cryptocurrency exchange Binance will block access to users based in 29 countries. The DEX informs potential users of the restriction via a message that appears when accessing the platform from one of the regions.

The message appearing on the platform states:

“It seems you are accessing www.binance.org from an IP address belonging to one of the following countries:

USA, Albania, Belarus, Bosnia, Burma, Central African Republic, Democratic Republic of Congo, Democratic People’s Republic of Korea, Cote D’Ivoire, the Crimea region of Ukraine, Croatia, Cuba, Herzegovina, Iran, Iraq, Kosovo, Lebanon, Liberia, Libya, Macedonia, Moldova, Serbia, Somalia, Sudan, South Sudan, Syria, Venezuela, Yemen, or Zimbabwe.”

Pop-up when accessing the platform from within the U.S.

Pop-up when accessing the platform from within the U.S. | Source: binance.org

The pop-up also warns about how trading and accessing the wallet interface through the website will be blocked for users with IP addresses from the aforementioned countries.

Lastly, the message also links to a list of wallets supporting the Binance Chain (BNB) mainnet, suggesting them as alternatives for holding and managing the assets.

Binance has not replied to Cointelegraph’s request for comment on the move at press time.

Many in the crypto community characterized the finding as an indication that the DEX is in fact not decentralized. A Twitter user well known among crypto enthusiasts, Whale Panda, commented:

“Reminder that it was never a DEX so stop calling it a DEX. It’s just a word they used to pump $BNB, it was never meant to be decentralized.”

A Steemit post dedicated to the topic links to a list of suggested crypto asset trading platforms that do not require users to go through Know Your Customer procedures.

As Cointelegraph reported at the time, Binance launched its decentralized trading platform earlier than planned, in the second half of April.

Yesterday, June 1, Cointelegraph reported that the largest portion of traffic directed at crypto exchanges globally comes from the U.S., followed by Japan.

At the end of last year, Time reported that bitcoin (BTC) has a substantial liberating potential thanks, among other things, to the inability of authorities to control access to it.

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Binance Continues Crypto World Domination With Ethereum Rivaling Chain and DEX Rollout

By all latest accounts Binance is clearly angling to become
the Google of the crypto world. The world’s top exchange is not content being
just that, it is now taking on Ethereum with its own blockchain services as it
continues to strive for world domination.

All Consuming Binance Keeps Growing

In addition to an expanding array of crypto related services
Binance has just launched
its own decentralized exchange in the form of Binance Chain mainnet. The public
permissionless blockchain will be available on April 23rd when the company
plans to conduct the BNB mainnet swap from ERC-20 based tokens to its own BEP2
standard.

In their short history decentralized exchanges have been
plagued with problems such as low liquidity, latency and poor user interfaces.
They are also vulnerable to exploitation by algorithmic trading programs that
use this latency weakness to their advantage. Binance has no such liquidity
problems so could be on the verge of achieving what many industry observers
have described as the ‘holy grail’ – a truly decentralized
exchange
.

According to chief investment officer of asset manager Arca,
Jeff Dorman, who spoke to Forbes
on the subject;

“Binance Chain can incentivize market makers to provide liquidity since they already have a huge user base and liquidity pool, they won’t be reliant on Ethereum (which solves the speed problem) and they have already proven to be amazing with UI/UX which will allow for a seamless transition for its customers from its current centralized exchange to this new DEX.”

At the moment Binance has the best chance of pulling this
off but that also raises other questions about its current market dominance. Earlier
this week the multi-billion dollar corporation flexed its muscles when it
delisted Bitcoin SV following an online dispute between owner, Changpeng “CZ” Zhao,
and Craig “Faketoshi” Wright. BSV plummeted 25% on the day much to the chagrin
of its supporters but the delight
of several industry heavyweights
who followed suit.

Now it appears that Binance is going after Ethereum by
launching its own rival blockchain platform. The crypto behemoth is also
attempting to entice token projects to switch to it, at least according to a
recent report in The
Block
. Binance has a lot of leverage and can make or break a crypto project
– its Launchpad program does exactly that while the threat of delisting could
spell the end.

Binance also charges a fair sum of money for new listings so
it has kind of become the new Google of the crypto industry. Whether that is a
good thing for the space or the end of Satoshi’s original vision of
decentralized peer-to-peer finance remains to be seen. It is still early days
in the world of crypto.

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