Decrypting the Solana Wallet attack and how investors can safeguard their crypto holdings

Decrypting the Solana Wallet attack and how investors can safeguard their crypto holdings

Solana’s hack is one of the major events that happened this week. These are my additional comments.

According to a tweet on Solana account. “There is no evidence the Solana protocol or its cryptography was compromised.” I think we should not take this lightly. I would expect a full postmortem later this week to address to the attack.

The addresses that were affected by the attack were at one point created, imported or used in the Slope mobile applications. Private key information was also accidentally sent to an application monitoring service. I think a decentralized network should stay independent and operate purely by codes. This can help to reduce similar problems.

Whether it is a bridge exploit or supply chain attack, the root problem is still uncertain. I would suggest users to create a new wallet, move their funds over to the new wallet and delete the old ones. Users for the time being can also consider moving their funds to the more reputable centralized exchanges or hardware wallets too. Keeping assets secure amid the uncertain situation is the best way for now.

I think the rest on the network should check on their codes and increase their security to prevent any other possible exploits that could happen. Never be too sure and let your guard down.

 

 

Decrypting the Solana Wallet attack and how investors can safeguard their crypto holdings

With reports indicating around 8,000 ‘hot’ wallets were compromised in the attack, experts advise investors to switch to hardware wallets for better security.

Close on the heels of cross-chain messaging platform Nomad being the target of a $200-million crypto heist, investors using ‘hot’ or internet-connected crypto wallets on the popular blockchain Solana were under attack from an unknown bad actor.

 

Over $8 million stolen from 8,000 investors

With crypto holdings worth over $8 million stolen from approximately 8,000 investors, this latest attack has raised many questions about the security offered by both the Solana network and ‘hot’ wallets that are quite popular with the average crypto investor.
While Solana’s official Twitter account was quick to clarify that the attack was not the result of any compromise in the network’s software, it added that its team of engineers is fervently working with security researchers and ecosystem teams to identify the root cause of this wallet hack.

Create new wallets, delete old ones

“While it is my opinion that a decentralised network should stay independent and operate purely by codes, I think the team at Solana should re-check all their partner systems and increase their security to prevent any other possible exploits. Investors ought to remain vigilant and take necessary precautions at their end,” he said.

“I would suggest users create a new wallet, move their funds over to the new wallet and delete the old ones. They can also consider moving their funds to the more reputable centralised exchanges or hardware wallets too. Keeping assets secure amid the uncertain situation is the best way for now,” he added.

Preliminary investigations have revealed that this exploit was limited to just the Slope wallet on the Solana ecosystem, while hardware wallets used by Slope remained unscathed.

According to Solana, affected wallet addresses were at one point created, imported or used in Slope mobile wallet applications, and their private key information was transmitted to an application monitoring service.

 

Do not store private keys on computers

Commenting on the Solana network and the underlying sentiment, Lin, a senior analyst at Block Review, said according to his statistics, there were 10.5 percent negative sentiments for Solana in the last seven days, while Ethereum had around 6.2 percent and anything below 15 percent is still okay in his opinion.

“Coming back to the private keys that were compromised, I think any of this information should never be on any computer at any given time. This part should be taken care of and well audited by the wallet providers. Users, on the other hand, have to take extra care of their private keys and seed phrases,” Lin said.

Solana has already urged investors affected by the attack to abandon the affected wallets as they could still be compromised even after revoking wallet approvals.

While the exact modus operandi employed is still unknown, crypto industry leaders have highlighted that the suspect transactions were properly signed, further indicating that it could be a supply chain attack with a specific focus on Slope ‘hot’ wallet users.

 

Investors should opt for cold or hardware wallets   

Elaborating on how hackers can still steal from a compromised wallet, Raj Kapoor, founder of India Blockchain Alliance, said since private keys are stored in application and device wallets, hackers can access them and steal cryptocurrencies and that sums up the Solana hack.

“If your wallet has been compromised, it’s paramount that you transfer any existing funds from your compromised wallet to another wallet. Hackers will wipe your account of funds immediately, but if you’re lucky and they have not done this yet, it’s time for investors to take immediate action,” he added.

Since most hacks happen to hit “hot” wallets, investors should opt for cold or hardware wallets instead. While investors may need some of it online for transactions, they should keep what they need in the short term and store most of it offline.

A cold crypto wallet, which is similar in size to a USB device, holds a private key that can be used to access your funds. Investors can set their own private keys as well.

 

Use multi-factor authentication

Investors should also use multi-factor authentication (MFA) as this creates a layered defence on their account with independent credentials based on a password, security token, and/or biometrics.

Phishing is another danger and to prevent it, investors should never log in to their cryptocurrency exchange unless they are sure they are on the correct site.

 

Do not share information over texts, emails

Additionally, investors should not trust texts, emails or chats that ask for your personal information.

Avoiding public WiFi is also a great idea as is updating your software from time to time. Regularly changing the passwords is great as well. Change the password regularly and use a password manager like LastPass or 1Password.

 

‘Hot’ wallets are vulnerable

As Solana continues to work with Slope Finance in conjunction with their partners OtterSec and SlowMist to restore normalcy, this incident again serves to highlight the vulnerability of ‘hot’ wallets to cyberattacks, despite the faster transaction times offered by them.

Comprising the entire collection of web-based, mobile and desktop wallets available today, ‘hot’ wallets should be used in conjunction with ‘cold’ or hardware wallets to strike the perfect balance between speed, functionality and security.

For those actively trading in crypto tokens and other crypto assets, it is recommended to hold trading funds in a ‘hot’ wallet while the bulk of their crypto holdings remains secure in a ‘cold’ or hardware wallet.

Nearly impossible to hack hardware wallets

Since a user’s private keys never leave the device, stealing funds from a hardware wallet is an almost impossible task for malicious cyber entities. Ranging from 50 to a few hundred dollars, the security offered by these hardware wallets more than compensates for the one-time costs involved and is highly recommended for all crypto investors out there.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Solana price prediction: Where is the SOL coin headed?

Solana price prediction: Where is the SOL coin headed?

Dubbed the ‘Ethereum killer’, Solana’s native cryptocurrency, SOL, saw its price grow almost tenfold last year. However in recent months, the token has been struggling to pick up speed, losing nearly 70% of its value by mid-March 2022.

A recent spike in major outages faced by the blockchain threw many investors off, with SOL’s price falling to $107.24 by 20 April 2022.

On 12 April 2022, Solana was listed on Robinhood, with high hopes of attracting new investors. Can it regain past highs, and what’s in store for the Solana (SOL/USD) forecast?

What is Solana?

Unlike many other popular blockchains that operate using Proof-of-Work (PoW) or Proof-of-Stake (PoS) algorithms, Solana was the first to introduce a Proof-of-History (PoH) algorithm, which allows the blockchain to operate quickly while staying secure and decentralised.
Founded in 2017 by former Qualcomm employee and Dropbox software engineer Anatoly Yakovenko and his colleague Greg Fitzgerald, Solana’s main goal was to create an open-source project that implemented a new, high-performance permissionless blockchain.

Because of its PoH algorithm, Solana can process over 250,000 transactions a second , marking it as a competitor to Ethereum (ETH), the second highest cryptocurrency by market capitalisation, as of 20 April. Ethereum has become the leader in decentralised finance (DeFi) due to its compatibility with smart contracts, which enable the building of decentralised applications (dApps).

However, while Ethereum remains the second largest cryptocurrency, its popularity has also made the blockchain very expensive and slow to use, which allowed for the creation of Solana.

According to Solana’s official website, the platform is “the fastest blockchain in the world and the fastest growing ecosystem in crypto, with thousands of projects spanning DeFi, NFTs, Web3 and more”.

In addition to being fast, Solana is also cheap – average fees are less than $0.1 – and censorship-resistant, allowing the application to remain open and run freely.

Solana allows users to:

  • Mint, sell and trade non-fungible tokens (NFTs) at high throughput and low prices. As of 20 April, over 5.7m NFTs have been created on the network.
  • Create their own DeFi projects and easily write smart contracts aided by the blockchain’s high transaction throughput, very low fees, low latency and great efficiency.
  • Build Web3 games, which will operate at lightning speed.
  • Accept payments in cryptocurrencies.

Solana’s ecosystem covers a number of lending protocols, DeFi projects, NFT marketplaces, Web3 Apps and decentralised exchange (DEX) projects. It also includes Phantom, a Solana wallet built for DeFi and NFTs, and Audius, a decentralised music sharing platform.

Solana is powered by its native cryptocurrency, SOL, an ERC-20 token running on the Ethereum network. SOL is used to pay for transaction fees and any purchases in the Solana ecosystem and staking.

The total supply of SOL tokens exceeds 511m, with over 333m tokens currently in circulation, according to data provided by CoinMarketCap at the time of writing (20 April).

The SOL cryptocurrency has a market capitalisation of more than $35bn and is the 7th most popular token, above Dogecoin (DOGE), Terra (LUNA) and Shiba Inu (SHIB).

Will SOL coin price go up or down? Technical outlook

Since SOL’s launch in 2020, the coin has struggled to pick up any momentum moving sideways for around 10 months before starting to gain speed by the end of February 2021.
Between late February 2021 and mid-July 2021, the token battled values that dropped as low as $13 and did not exceed $56.

However, when the token’s value finally started to rise at the beginning of August 2021, it did so very quickly, surging by 407.1% within a month, up from $37.67 on 8 August 2021 to $191.04 on 8 September 2021, a then record high.

Solana to USD chart, 2020 - 2022

The SOL cryptocurrency reached an all-time high on 6 November 2021, hitting $258.93 – a 35.5% surge on its September 2021 value. The bullish trend was in line with other cryptocurrencies, including Ethereum (ETH), Bitcoin (BTC) and Binance (BNB).

Since then, however, the trend has reversed, with the SOL token price decreasing by 65%, down to $78.94 by 13 March 2022, amid broad negative market sentiment as tensions started to rise on the Russia-Ukraine border and the outbreak of the war.

A mini surge occurred in the following three weeks as the coin managed to win back 73.2% of its value, rising to $136.78, following the publication of Solana’s energy use report, which stated that the blockchain’s carbon footprint has greatly decreased since December 2021.

Solana to USD chart, January - April 2022

SOL token technical analysis provided by CoinCodex showed that short-term sentiment for the coin was pretty neutral at the time of writing (20 April), with 22 indicators pointing to ‘sell’ and 8 to ‘buy’.

relative strength index (RSI) reading of 27 was in oversold territory. A reading of 30 or below would indicate that the asset is becoming undervalued and a trend reversal is likely to occur. The token is trading above its five-and 10-day moving averages, yet close to its R1 resistance level of $110.82.

Is Solana (SOL) a good investment?

Some of the biggest SOL coin news came as the platform announced a change in the leadership of its Solana Foundation Council on 18 April 2022. The council was established in 2020 with the aim of advancing the adoption of decentralised technologies as a public good. It’s been helping the Solana ecosystem develop.
On 29 March 2022, Solana launched Solana Pay, a “build your own online store” application on its blockchain. It allows users to create a storefront and accept low-fee, global payments directly into their wallets without the need for a bank or credit card.

Since launching, over 600 merchants have engaged with Solana Pay while others started incorporating the ecosystem into their payment flows, thus encouraging space for new investors to join the blockchain.

What is your sentiment on ETH/USD?

On 1 April 2022, the platform also announced that the Solana Hacker House World Tour will be making a comeback in new cities globally, including London, Tokyo and Barcelona, sparking international interest.

Additionally on 12 April 2022, Solana was listed on Robinhood, which, according to BigONE Exchange chair in Asia, Anndy Lian, is likely to boost SOL coin’s future price.

“An equally impressive partnership which has supported the bullish price… is the 12 April news from popular app Robinhood that it was listing SOL for the first time,” he said.

Lian told Capital.com that in addition to the listing, the price of the SOL coin to USD has been driven by debate sparked by Tesla (TSLA) CEO Elon Musk’s bid to buy Twitter (TWTR).

“This announcement over the Web3 future of the social networking platform, prompted FTX crypto exchange CEO Sam Bankman-Fried to suggest Twitter could move on-chain using the low-cost, high-speed Solana blockchain.”

In the past, Solana has hinted at wanting to work with Musk, replying to his tweets on the social media platform.

In addition, Lian told Capital.com that FTX’s investment in its own NFT platform on Solana , as well as OpenSea’s beta version launch on the blockchain, could boost SOL coin’s future price.

“Set in the context of pressure on altcoins, the outlook for the token price could be modestly optimistic after a bearish beginning to 2022,” he told Capital.com.

“Recent partnerships news support this thesis, and it’s also supported by the ‘Social Solana Prices Estimates’ on CoinMarketCap; with over 5000 voting (median average) for a 17.75% increase in price to $121.49 by the end of April; and over 2000 voting for a $127.42 price level by the end of May.”

On the minus side, however, It’s important to note that the blockchain is prone to network outages. During March and April 2022, Solana suffered nine network outages, seven of which were determined as “major”.

“The two key risks are firstly, if the bottom falls out of the altcoin market due to a ‘black swan’ event such as a Russian default impacting the wider markets; and a specific risk being if Solana suffers another serious network outage which leaves not just users but partners looking to other layer 1 options for a low cost, high speed blockchain alternative to Ethereum,” Lian told Capital.com.

Solana prediction 2022-2025, 2030

Despite recent bearish SOL token price action, algorithm-based forecasting service Wallet Investor gave a bullish SOL coin price prediction at the time of writing (20 April).
The site noted that SOL is “an awesome investment”, adding that it has a long-term earning potential of 576.24%.

Based on its analysis of past price performance, the website expected that the token could trade at $226.371 in 2023 and jump to $726.904 by 2027.

DigitalCoinPrice supported the positive Solana (SOL) crypto price prediction, but projected a much slower pace of growth in the following years, predicting that the token could rise to $150.10 by the end of 2022, $207.89 by the end of 2024 and $230.34 by the end of 2025.

For the end of 2028, the site projected a $387.31 SOL price target. Its long-term SOL future price prediction suggested that the cryptocurrency could have the potential to reach $523.61 by 2030.

Note that price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence. And never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/solana-sol-price-prediction-is-it-a-solid-investment

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j