Node Sales Raise $60M for Anonymous Founders, Address Poisoning Losses Highlight Crypto Risks

In the latest edition of The Protocol, a CoinDesk newsletter focused on blockchain developments, we delve into the emerging trend of node sales, where blockchain projects sell nodes directly to investors in exchange for quick cash and the perceived benefit of easier decentralization. Notably, Sophon, an entertainment-focused blockchain ecosystem based on zkSync technology, recently raised over $60 million through a node sale, despite the anonymous status of its founders. These sales often employ tactics designed to stoke FOMO, such as tiered pricing structures and exclusive whitelists. As with many crypto-related investments, buyers also hope for generous token rewards and eligibility for future airdrops. In other news, a cryptocurrency user has fallen victim to a form of exploit known as “address poisoning”, resulting in the loss of $68 million worth of wrapped bitcoin. Meanwhile, a hacker who stole $125 million from Poloniex’s hot wallets in November has transferred 1,100 ETH to sanctioned coin mixer Tornado Cash, while developers of the same mixer face criminal charges. Additionally, former New England Patriots and Tampa Bay Buccaneers tight end Rob Gronkowski has agreed to settle claims brought against him by former customers of Voyager Digital, for $1.9 million. Finally, Consensus is partnering with blockchain learning platform EasyA to host the first in-person hackathon together, featuring major chains including Sui, Stellar, and Polkadot. Projects launched by EasyA alumni are valued at over $2.5 billion. Other highlights from the past week include Polyhedra Network’s release of an open-source ZK proof system, “Expander”, which can produce proofs nearly two times faster than existing options whilst boosting the safety and efficiency of ZK proof processes; MetaMask’s rollout of a new feature aimed at protecting users against maximal extractable value (MEV); MicroStrategy’s announcement of plans to develop a decentralised identity service utilising Ordinals inscriptions; and Aave Labs’ proposal to develop its “V4” as part of a wider grant proposal, with a timeline commencing this quarter and concluding mid-2024. Furthermore, major corporations including Citi, JPMorgan, Mastercard, Swift, and Deloitte are collaborating to test sharing ledger technology by simulating multi-asset transactions in U.S. Dollars through the Regulated Settlement Network (RSN) proof-of-concept (PoC).