OVERVIEW

A N-UwU Exploit Hits Crypto 🧐

It was a quiet start to the week in the land of crypto, with bitcoin and other risk assets awaiting this week’s inflation data and Fed decision. ⏸️

In today’s Litepaper, the exploit hitting UwU lending and a bitcoin chart that’s begging for a clear catalyst.

Also on deck are five crazy crypto stats you might not know and a crypto 101 on the world of decentralized exchanges (DEXs).

P.S. As noted last week, this is The Daily Rip writer (Tom Bruni), and I am covering for Jon this week as he enjoys some well-deserved time off. Just an FYI in case you notice any changes to the content. 👍

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total and altcoin market cap YTD:

NEWS
UwU Lend Losses $20 Million In Latest Exploit 🚨

Several blockchain security firms reported that the lending and liquidity protocol suffered an exploit worth $19.30 million. 💸

On-chain data showed the hacker’s wallet moved several assets: wrapped Ethereum (WETH), wrapped Bitcoin (WBTC), and stablecoins like USDC over the course of a few minutes.

It’s unclear how the exploit happened, with the UwU Lend team posting to X that they paused the protocol and are investigating the situation. 🔍

Data as of this morning showed that UwU Lend currently holds over 82,000 Ethereum, but approximately 81% of those funds ($247/$305 million) are borrowed. 😬

That’s what we know since this morning, and we will keep an eye on how this story develops. 👀

TECHNICAL ANALYSIS
Crypto Awaits A Catalyst 🕰️

It doesn’t take a rocket scientist (or technical analyst) to identify that bitcoin is in a long-term uptrend, with the chart below showing a clear uptrend line from last October’s lows topped off with resistance near $74,000.

That said, although most are expecting this bullish pattern to resolve to the upside and result in new all-time highs, nobody can identify a clear catalyst that will make it happen. 🤔

As the 7-day rate of change (ROC) shows, bitcoin volatility is once again contracting to historically low levels. Past compressions have led to strong moves in one direction or another, and many expect that outcome again. 🐢

The most likely catalyst is the FOMC’s interest rate decision and updated economic projections on Wednesday at 2:00 PM ET, which are expected to give risk assets some pep in their step.

In what direction though remains to be seen. 🤷