Today blackrock and coinbase team up to
offer bitcoin trading to wall street
riot blockchain made more money in power
credits than bitcoin mining in july and
the ceo of bitsky shares how to keep
crypto funds safe amid the surge in
hacks welcome to crypto world i'm
tanaya mckeel digital asset prices were
moving lower after the bank of england
raised interest rates and new data
showed jobless claims are rising in the
u.s
by noon eastern bitcoin fell to 22
thousand dollars ether traded at sixteen
hundred dollars and polka dot dipped to
eight bucks
okay on to the top stories first
blackrock will let customers trade
crypto thanks to coinbase the two
companies are partnering to let
blackrock's institutional investors gain
access to coinbase's prime brokerage
platform the service includes trading
custody reporting and more in a
statement blackrock said the partnership
will let clients quote manage their
bitcoin exposures directly in their
existing portfolio management and
trading workflows coinbase's stock got a
much needed boost on the news jumping as
much as 40 this morning the stock has
been under pressure as customers flood
its platform and crypto prices have
plummeted
next riot blockchain made more money by
shutting off its crypto mining facility
than using it the company produced 318
bitcoin last month according to a new
press release that comes out to about
6.8 million dollars and is a near 30
percent decrease from a year earlier
thanks to that extreme texas heat wave
that forced riots facilities to shut
down but the company earned nine and a
half million dollars in power credits
thanks to those shutdowns which the
company says equals about 439 bitcoin
last up chain alice's says 2 billion
have now been stolen through cross chain
bridge hacks this year
in a new report it also says the attacks
account for nearly 70 of all crypto
funds stolen in 2022. one billion of
those funds have been stolen by north
korean linked hackers chain alice's says
the thefts represent a significant
threat to building trust in blockchain
technology
so with the rise in security breaches
and stolen funds how can businesses and
customers keep their crypto safe for our
main story of the day i spoke to the ceo
of bitsky to find out
well thanks for joining me donnie first
things first how concerning are these
latest hacks for your business bitsky
offers an nft wallet
how are you advising your customers
you know ultimately i think that anytime
any of these projects have issues
it has a little bit of a
downside effect for the entire industry
and i think it just it really sort of
rocks the confidence that people have
and the products that they've been using
and so for us it's about sort of
reinforcing the decisions that we've
made from an architectural perspective
and the steps that we've taken to
maintain like you know a secure stack
under our uh with what we're working on
chain analysis had a new report on cross
chain bridge hacks in it they
essentially said that
multi-multi-billion dollar breaches this
year could erode trust in blockchain
technology is that something you agree
with i absolutely think so i mean i
think when you look at i mean even if
it's not a bridge if you look what
happened with um with luna i think
there's just so much uh just positive
momentum and excitement around it
without people truly understanding the
underlying
principles and architecture of how that
how that
token worked and so certainly with
bridges the thing about bridges is that
they're actually very very tricky to
build they're the last scalable step
for blockchains and they're actually
quite a honeypot because they have so
much access to so many
so much volume and because of that
they're just high target attacks
and can you just go a little further
there what exactly are bridges for
viewers that might not know yeah so
bridges help you effectively swap tokens
from one chain to another and when you
do that you need to have effectively a
middle person that kind of takes takes a
bit of an escrow of that and is able to
make sure that okay i verify that you
own these funds let me go ahead and send
these funds and that's just something
that is a it's a very very tricky thing
to do um if that's why there's so few of
them and most of them had a lot of
issues um i i'd imagine that we're going
to continue to see a few more of these
things happen over the course of you
know bridge development um but it's an
unnecessary part of like scaling this
blockchain infrastructure
and you were talking about not
understanding fully how the protocol
works to what extent do you think
that that is going to be necessary for
participants
in the space it's a tricky thing to
understand all of the complex things
happening within like blockchain
services and infrastructure and tokens
and i think that there is a certain
amount of you know reliance of trust of
the people that are building it and
unfortunately social proof seems to
really be the most prominent way that
people build trust um
i think that
taking a step back and looking at the
perspective that this is still a
relatively young technology there's a
there's going to be chop there's going
to be things that happen and i think
understanding that and protecting any
sort of downside you may have with the
participation you have in any of these
tokens
any of these networks i think is
important in understanding the risk of
that and i think that i don't think it's
really feasible for everyone to truly
understand everything that's happening
under the hood um but but you should do
your you should do your best to be as
educated as possible but don't beat
yourself up if you don't know all the
details in regards to the breach of
solana linked wallets yesterday uh
you know how common is that and
how concerned should users of those
wallets be the wallet that was breached
was actually um it was doing something
it just made a bad architectural
decision um and it was a they were
sending seed phrases in plain text uh to
one of the services they used to monitor
any any sort of alerts or bugs that
happen with their infrastructure the
reality is if you're using a browser
extension or using like a wallet that
keeps your private key in memory on your
computer
there's always an associated risk with
that because the way that software is
developed these days is not from you
know zero to one ground up developers
are using
hundreds if not thousands of open source
libraries to quickly get up to speed to
build what they need to and when you
think about an attack vector any of
those dependencies and that's in that
sort of supply chain stack of dependent
uh dependencies um you know could go
down and so that was actually what was a
little bit scary about the uh the hack
the other day is that you know there was
a quorum of you know some of those
brilliant investors and security firms
and and and uh companies in the crypto
space in a war room trying to figure out
what happened because there's so much
code to cover when you're reliant on
that i think the way that you should um
think about managing crypto in general
is that using a wallet where your keys
are secured in hardware um is probably
the the right choice for almost everyone
whether it's a company like bitsky where
we have our hardware security modules in
the cloud or you want to buy your own
like ledger and put it in your lock box
in your house
in that case your private key will never
get exposed because it doesn't leave
hardware um so i think that uh
again back to there's going to be some
chop people are going to make mistakes
that you know the real downside of
working with blockchain is that well
upside and downside is that it's
immutable what happens happens you can't
just call you know the the wallet and be
like i need you to charge this back like
that's it and so um i think just trying
to understand where your private keys
are how they could be shared is probably
a good step for um
for consumers
okay that's all for crypto world today
but block reports earnings after the
bell so be sure to head over to cnbc.com this afternoon and come back to us tomorrow for all the details.
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