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SEC is looking into Robinhood’s handling of GameStop trading

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The U.S. securities watchdog is looking into the affair of Robinhood and the Redditors.

At least in so many words. The Securities and Exchange Commission made a joint statement on Friday expressing concern over the “extreme price volatility of certain stocks’ trading prices over the past several days.”

Though the commission didn’t use the words “GameStop,” “Robinhood,” or “Reddit,” it’s obvious that what the commission is talking about is the recent chaos surrounding the three. It’s already attracted major regulatory pressure. The SEC did, however, specify:

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“The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.”

Robinhood, already the subject of enormous backlash from its users, is clearly in the sights of this announcement, as it is the “regulated entity” i.e. broker-dealer at the heart of the news. It is not unprecedented for Robinhood to shut down trading on GME and other stocks, but the firm’s shutting off of sales but not buys provoked mass ire from investors and casual observers.

At the same time, many point to r/WallStreetBets, the Reddit group united in buying and holding Gamestop, as an example of classic market manipulation or other securities law violations in a new media venue. Marc Powers, formerly of the SEC’s enforcement office and currently an adjunct professor on blockchain regulation at Florida International University, defended this view, but put forward alternatives to classic enforcement:

“Another way of approaching this issue, rather than going after individuals, is to issue a 21(a) report as a way of providing guidance to the marketplace and these generally newer investors as to the SEC’s view on market manipulation and other laws that may have been applicable to the situation, similar to what the SEC did with the issuance of the DAO report involving ICO in July 2017.”

Powers was referring to the SEC’s initial entry into initial coin offerings, which refrained from enforcement at the time but did result in a mass clampdown on subsequent ICOs.

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But, maybe it’s a result of a House, Senate and Presidency suddenly under Democratic rule and eager to roll back the pro-Wall Street legacy of the past four years, but very few at the federal level are seriously talking about doing anything about the redditors.

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Binance

Binance’s Trading Volume Hits $100 Billion in Just One Day

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Binance continues to see unprecedent trading activity while attempting to sail through regulatory hurdles

Binance’s daily volume hit an eye-popping $100 billion on Oct. 20, according to a tweet by CEO Changpeng Zhao.

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The leading crypto exchange recorded this crucial milestone on the day Bitcoin, the largest cryptocurrency, reached a new all-time high of $67,276.

Despite introducing stricter measures for users due to severe regulatory scrutiny, Binance enjoys a comfortable lead over other crypto exchanges in both spot and derivatives trading, according to data provided by CoinMarketCap.

Eerier this month, the trading platform also announced a $1 billion ecosystem fund.         

Meanwhile, the decentralized finance sector is catching up with centralized behemoths. The total value locked in DeFi protocols has hit $100 billion for the first time.

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Crypto Exchange

Binance Smart Chain DeFi protocol PancakeHunny suffers flash loan attack

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As the users argue “what’s better,” Ethereum or Binance Smart Chain, the latter saw another decentralized protocol being exploited. PancakeHunny on BSC was attacked by a flashloan and no, this wasn’t a first for the protocol.

Blockchain security and data analytics company Peckshield Inc. announced the attack on Twitter.

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The last time that this protocol was exploited, was in June, wherein the team had noted the creation of a smart contract to exploit the Hunny Minter Smart Contract. The contract was subsequently executed 91 times, as per the team.

The team took a long time to respond to the hack this time but assured the users that their funds were safe. The team added in a preliminary report,

“On 20 October 2021, at 0920 UTC. A smart contract was created to exploit the Hunny TUSD vault. The Contract was subsequently executed 26 times.”

PeckShield provided some details about the same noting,

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According to the agency, this hack was possible due to a profit inflation bug, which converts the relatively small amount of harvested ALPACA, to a large amount of TUSD for staking. PeckShield added,

“These converted TUSDs are then counted as profit, now inflated to mint large amount of $HUNNY!”

Source: Twitter

Actions taken by the team

The PancakeHunny team has stopped the minting process for the TUSD vault while assuring that funds in Hives were all SAFE. The exploit did not affect other Hives and Vaults but the price of HUNNY.

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They added that the issue has been identified and the team will change its rooting to higher liquidity pools to prevent the aftereffects of price manipulation of LP pools.

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Coinbase

NBA Makes Coinbase Its Exclusive Crypto Partner

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Coinbase has joined FTX in scoring major partnerships in the sports industry     

The National Basketball Association has announced a multi-year deal with Coinbase, America’s biggest crypto trading platform in an Oct. 19 press release.   

Coinbase will act as the exclusive partner of the NBA, NBA G League, Women’s National Basketball Association (WNBA), and other leagues. 

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As part of the deal, the exchange will have a brand presence during televised games as well as unique content and activations that are meant to boost crypto awareness.  

Kate Rouch, Coinbase’s chief marketing officer, says that the company is proud of joining forces with the NBA:

The freedom to participate and benefit from the things you believe in is at the heart of Coinbase’s mission.  Nobody believes this more than NBA and WNBA fans. We’re proud to become the Leagues’ official cryptocurrency partner.

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The shares of Coinbase are up roughly 3% at press time. 

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