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Here is the breakdown of today's newsletter:
🔐 Ledger Controversy Explained
🐧 Pudgy Penguins Toys On Amazon
Believe it or not, the first Bitcoin purchase ever was actually a NFT JPEG!
The community is not happy with Ledgers' new KYC feature. Check out the full breakdown. (@0xfoobar)
Some users have expressed their disappointment regarding Yuga Labs HVMTL reveal, claiming it to be low effort. You decide. (@CryptoDiamonds)
Why did CEO of Binance unfollow Elon Musk on Twitter? (@BreakingWhale)
Twitter user @voshy recently conducted a social experiment on Twitter called $GREED, asking users to submit nearly all of their information and sign a sketchy transaction in hopes for a meme coin airdrop. (@xsanyar)
A new claim against BlockFi says they possibly used customer funds to purchase insurance. (CT)
Gala Film is launching an exciting new NFT-infused Anime Series called Ghost of Ruin. Check out the details. (@GoGalaFilms)
The rise incoin trading recently has sent Uniswap users to a near all-time high. (@Delphi_Digital)
Boss Beautiesteams up with Mattel Creations to drop NFT Barbie project. (@BossBeauties)
Ledger Controversy Explained 🔐
In a surprising (or perhaps perturbing) turn of events, Ledger, the celebrated hardware wallet manufacturer, is facing a massive dilemma.
💡 What happened?
The introduction of "Ledger Recover," an optional backup service for your Secret Recovery Phrase (SRP), the key to your digital assets.
Users are worried about Ledger's security, especially after they tweeted (then deleted) that the company was technically able to write firmware that could extract users’ private keys.
This tweet was later clarified and deleted by ledger
💡 So, where did the controversy start?
The controversy began on May 16th when the company introduced a new service called "Ledger Recover," which allows users to split their secret recovery phrase into three shards and store them with different data custody services. The deleted tweet above was in response to this new feature.
When you subscribe to "Ledger Recover," it encrypts and divides your SRP into three fragments stored separately in digital vaults.
These fragments are useless without identity verification and can only be restored on Ledger devices.
Here is Ledger’s official response on the matter:
[1/3] You may have seen a tweet from our Ledger Support account being shared regarding Ledger firmware updates.
Unfortunately, in our attempt to clarify how Ledger and all wallets work with the firmware, a customer support agent posted a tweet with confusing wording.
— Ledger Support (@Ledger_Support)
May 18, 2023
💡 Ongoing drama
For now, it is crucial for the Ledger Team to provide clarifications on this matter.
We should also probably wait until Ledger's bad sentiment cold down.
Understanding what is happening with Ledger and their new service is significant for several reasons.
This is a classic case of "Trust Gone Sour," which is entirely understandable.
Ledger claims the service is secure, but it's like eating your favorite ice cream and discovering it changed its recipe halfway through.
You might still enjoy it, but you feel deceived, right?
The situation with Ledger is similar. Previously, it was believed that the Secure Element chip couldn't expose the seed … and this seems to not be the case.
We're left wondering what's in our hardware wallets.
This revelation raises concerns, shakes confidence, and tarnishes Ledger's image.
The entire issue is summed up in this tweet below:
Nov 2022: A firmware update cannot extract the private keys from the Secure Element — Ledger
May 2023: Technically speaking it is and always has been possible to write firmware that facilitates key extraction — Ledger
@Ledger, do you now understand the problem?
— olimpio (@OlimpioCrypto)
May 17, 2023
Pudgy Penguins Added To Amazon 🛍️
Two days in a row talking about Pudgy Penguins??
Well when there’s big news, there’s big news. And this is definitely big news.
Here’s the big news:
Pudgy Penguins announces Pudgy Toys and Pudgy World
Over 7 different toys are available on Amazon to purchase with numerous variations of each toy. You can check out the collection here.
Each toy comes with a digital experience (this is where Pudgy World comes into play)
Each toy comes with a birth certificate holding unique traits
After the toy purchase, you can create your Forever Pudgy Penguin which effectively creates a new wallet, Soulbound NFT, and tradable traits
Make sure to watch CEO Luca Netz explain below:
Pudgy Toys mark a special moment in history. They are the first mass-market product licensed DIRECTLY from the community.
This will be the first time that NFTs and blockchain technology are introduced to the everyday consumer, in a seamless, non-intimidating way.
— Pudgy Penguins (@pudgypenguins)
May 18, 2023
In response, Pudgy Penguins’ floor has skyrocketed to 5 ETH after all these updates. This new journey to digital experiences via IRL toys will be pivotal for onboarding - especially since most won’t even know they are being onboarded to crypto in the process!
PUDGY PENGUIN TOYS ON AMAZON
Bullish? @pudgypenguins
— The Drop (@thedropnft)
May 18, 2023
Definitely the thread of the week so far…
The dark side of NFTs:
A throwback to the most controversial moments in web3 history 🧵👇
(1/25)
— Lamboland (@LambolandNFT)
May 16, 2023
Sponsored Content: There is no sponsored content in this newsletter.
That's all for today's issue! Thanks for reading this far and also make sure to give our Twitter a follow daily for breaking NFT/web3 news! (@TheDropNFT)
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