In a recent Twitter thread, Shenyu, the founder of Cobo, raised concerns about the security of private keys for Ethereum staking nodes. With an upcoming upgrade in Shanghai, more than two years of ETH staking can withdraw cash. However, Shenyu warns that the private keys of some staking nodes may have already been leaked.
This news comes after thousands of addresses eligible for arbitrum airdrops had their private keys leaked. Shenyu recommends that institutions that provide centralized staking should review their private key storage methods, check the status of authorized personnel, monitor server logs, and formulate emergency plans.
Institutions offering centralized staking services should heed this warning and implement necessary measures to safeguard their users’ funds. As staking gains more traction, the associated security risks also escalate, making it imperative to establish robust security protocols to protect users’ assets.
As the upgrade in Shanghai approaches, users and institutions should be vigilant and take all necessary precautions to prevent potential security breaches. Shenyu’s warning serves as a timely reminder of the importance of robust security measures for staking services.
Sharp Drop in Ethereum Options Implied Volatility (IV)
In another related update, the Ethereum market has experienced a sharp drop in options implied volatility (IV), despite the upcoming Shanghai upgrade. IV has fallen by as much as 8% in the past two days, which is a significant drop. This decline in IV is mainly attributed to the drop in market liquidity due to the Easter holidays.
While it is not unusual for market liquidity to drop during holidays, it is unexpected for the monthly IV to fall to the same level as Bitcoin. This drop in IV is an indication that traders are not as concerned about Ethereum price movements as they have been in recent weeks.
According to the analytics platform, GreeksLive, the fall in IV is primarily driven by the reduced demand for options rather than an increase in supply. The reduced demand for options can be attributed to the lower trading volume in the Ethereum market, as investors take a break during the holiday period.
The decline in IV indicates that traders are less concerned about potential price movements in the Ethereum market in the short term. However, this could change after the Shanghai upgrade, which is expected to significantly change the Ethereum network.
Ethereum traders and investors should monitor the market closely ahead of the upgrade. Although the drop in IV is not alarming at the moment, market sentiment can change rapidly, emphasizing the need to be updated on any potential market-moving events.
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