The world of cryptocurrencies continues to evolve at a rapid pace, with new scams, controversies and industry shake-ups occurring regularly. In this blog post, we take a look at three recent developments that have emerged from the crypto space: the Sleepdrop scam, Tether’s fund storage and Wyre’s shutdown.

Sleepdrop Scam:

The Sleepdrop scam is a new type of cryptocurrency scam that has recently been discovered by members of the Forta network. This scam involves airdropped tokens that impersonate genuine ERC-20 tokens, such as those from Uniswap and Chainlink. Unsuspecting users who connect their wallets to the website and sign a transaction are tricked into invoking the connect function of the contract, transferring a small amount of ETH and allowing the smart contract to steal from their wallets. To combat this scam, the Forta community has compiled a list of Sleepdropper addresses and scam URLs, and announced a bounty to detect Sleepdropping.

Tether’s Funds:

The issuer of the world’s largest stablecoin, Tether, has long been plagued by concerns that its stablecoin was not fully backed. However, documents obtained by CoinDesk reveal that Tether had funds spread across four banks, two investment management firms, two gold depositories, and its own sister company Bitfinex in March 2021. Tether also had funds in commercial paper and other securities issued by various entities, including the Agricultural Bank of China, Barclays, and Deutsche Bank. While this provides some transparency into Tether’s finances, the company’s controversial reputation continues to loom over the crypto space.

Wyre’s Shutdown:

San Francisco-based Wyre has announced its decision to shut down after nearly 10 years in operation. The crypto payments firm cited struggles with the bear market as the reason for its closure, stating that the decision was made to “protect the best interest of our key stakeholders and customers.” Customers have until July 14th to withdraw their assets, but the company has not commented on whether its assets are up for sale. The platform previously imposed a 90% withdrawal limit for all subscribers, which it later lifted after securing financing from an unnamed “strategic partner.”

In conclusion, while the crypto space offers exciting opportunities, there are also risks and uncertainties that investors and users need to be aware of. The emergence of scams like Sleepdrop highlights the need for vigilance and caution, while controversies around stablecoins like Tether demonstrate the importance of transparency and regulation. The shutdown of Wyre serves as a reminder that even established players in the crypto industry are not immune to the challenges presented by market volatility. As the crypto space continues to mature and evolve, it remains to be seen what developments will arise next.