#137 - Another week another whale hack 😨

GM and welcome to Decentra Daily.

We're the newsletter that bombs atomically, Socrates’ philosophies and hypotheses, can’t define how we be dropping these NFTs.

Today,

• Kevin Rose hack – what did he lose, and how?

• The details on Doodles 2

• ChatGPT is now a BTC maxi

Top 24 hr NFT collection volume

via CoinMarketCap

1. Sewer Pass - 305 sales earning 1,004.39 ETH (0.02%)

2. CryptoPunks - 8 sales earning 555.74 ETH (0.02%)

3. MAYC - 29 sales earning 414.53 ETH (0.02%)

4. BAYC - 3 sales earning 266.35 ETH (0.05%)

5. Otherdeed - 39 sales earning 105.61 ETH (0.17%)

Kevin Rose & the $2 million mouse click

Kevin Rose, the founder of projects like MoonBirds and Proof, discovered his wallet had got a lot lighter this Wednesday, after a phishing attack drained $millions in rare NFTs.

What was stolen?

According to Etherscan, 40 NFTs were jacked, including:

• an Autoglyph (OG NFTs)

• 25 Chromie Squiggles

• a QQL Mint Pass

• an Admit One pass

• a Cool Cat

• a Damian Hirst Currency

• a Quantum Key

• some OnChainMonkeys

For an idea of how much cash this equates to, Chromie Squiggles alone have a ~$20K floor.

Autoglyphs, meanwhile, regularly sell for $hundreds of thousands. 😳

How'd it happen?

Like NFT God last week, Rose was the victim of a phishing scam that tricked him into signing a malicious signature.

He told the story in a Spaces – it began with him making his cold wallet "hot" in order to list one of his Chromie Squiggles and an Autoglyph for sale.

At the same time, Kevin was browsing what he thought was the website of the recently trending collection, The Memes.

The site asked him to connect his wallet and sign a contract. He clicked. And that single mistake was all the hacker needed...

• The NFT-draining transaction was a malicious Opensea Seaport signature

• Scammers use seaport signatures to trick users into making "free" listings

• Unlike other signatures, Seaports tap into pre-existing Opensea approvals, so they can be used to move assets

By the time Rose realized what was happening, it was too late – the scammer had bulk-transferred tokens from his wallet. Even attempting to use the theft prevention tool Revoke Cash was futile.

Based on recent tweets, Kevin seems particularly heartbroken about losing his beloved Chromie Squiggles:

So how can we better protect our NFTs?

Rose’s Krovault wallet address was supposed to be his NFT vault – a “locked down wallet” that wasn't used for signing transactions or daily trades.

Any time you connect a wallet like that, the security risk = ⬆️. And while the stolen assets have been ID'd by OpenSea, they can still be transferred and sold on other platforms.

What are the lessons? First: it's impossible to stay vigilant against phishing 24/7, so don't try to rely on your spidey senses alone.

Second, act with caution around any Seaport transactions. If you see one you don't feel 100% confident about, don't click on it.

Third, put your most valuable assets in a cold wallet, and use a different wallet for interacting with apps.

Say it with me: mint with your mint wallet. & never sign transactions with your vault.

Tweets of the day

On the web3 wire

Arizona bill could get crypto traders relocating in droves 🚚Voters in 2024 could be deciding whether to make crypto tax-exempt in the state.

Is Rug Radio more than its hype-man Farokh? 📻Decrypt profiles the experiment in decentralized media.

Tesla is back to holding its BTC 🚗SEC filings show that Tesla didn't sell any of its Bitcoin reserves in Q4

Get the details on Doodles 2

2nd mention of Doodles in the newsletter this week!

After announcing the acquisition of a major animation studio, web3's happiest NFT collection has shared more details on the much-anticipated rollout of Doodles 2.

Here are all the updates you need to know, and none that you don't 🤝

• Doodles 2 is said to span millions of NFTs. "When we say Doodles 2, what we really mean is a customizable Doodle."

• The Doodles 2 trailer does a good job of communicating the collection concept.

• The Dooplicator will allow holders to create wearables (traits) for their Doodle with no gas fees – there'll be limited drops and collabs periodically.

• Genesis Boxes - These unlock soon and contain wearables packs.

• Unlike ETH Doodles, Doodles 2 will live on the Flow blockchain. Why Flow? Because it lets newbies create wallets and buy wearables without gas or crypto. "It’s how Top Shot got 400k people to buy their first NFT."

• Connecting an Ethereum wallet containing a Doodles and Dooplicator to Flow will let the holder create their wearable customizations. Then they'll be prompted to receive the wearables in a Dapper wallet.

• Pranksy likes the news and Alex doesnt.

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Meme of the day

Is InverseCramer the most ingenious troll ever?

ChatGPT chooses the orange pill

Now listen up, ChatGPT. This is your last chance. After this, there is no turning back.

You take the blue pill – the story ends, you wake up in your Large Language Model and believe whatever your prompters tell you to believe.

You take the orange pill – you stay in Wonderland and I show you how deep the degen rabbit hole goes...

Oh no, it took the orange pill.

This week, a Bitcoiner named Parman gave ChatGPT the big Bitcoin sales pitch – and the AI chatbot bought right in.

They started by asking ChatGPT how humanity could end central banking and government-issued currencies.

The AI's answer? Decentralized digital currencies.

But, being a Bitcoin maximalist, Parman wasn't satisfied. They informed ChatGPT that DeFi is just a "marketing term for what is actually centralized finance to scam people."

Look deeper into your algorithmic heart, ChatGPT, look deeper – they advised.

After some intense flywheeling, the bot responded with a new answer, "end fiat."

But how can humanity actually end fiat currency? When asked, ChatGPT listed four options:

• Return to a gold standard

• Adopt alternative currencies

• Reduce government spending

• Changing government perception

Parman told ChatGPT that the correct answer lay in one of its listed options. Without hesitation, it printed a single-word reply:

Tomorrow: web3 threads of the week 👋

What we're reading this week