GM. Cardano briefly split into two chains after a malformed transaction triggered a validation flaw, forcing emergency patches and sparking an FBI probe into the incident.

Meanwhile, Aerodrome and Velodrome suffered another front-end hijack, Grayscale’s Dogecoin and XRP ETFs are set to list, and Kalshi hit an $11B valuation after a $1B raise.

Chaos, comebacks, and capital flow kick off the week. 👇

Cardano Network Splits After Malformed Transaction Attack

Cardano briefly split into two ledgers on Friday after a malformed transaction triggered a validation flaw between newer and older nodes. Governance body Intersect confirmed the issue, calling it a “poisoned” transaction that caused a mismatch in block production until emergency patches restored network alignment.

The incident was traced to a wallet linked to a former testnet participant who admitted using AI-generated code to replicate faulty transactions. Posting as “Homer J,” the user apologized publicly, saying the disruption was unintentional and not motivated by financial gain.

Cardano founder Charles Hoskinson described the episode as a targeted attack by a disgruntled stake-pool operator seeking to damage Input Output Global’s reputation. He said the FBI is now investigating the matter, warning that network cleanup could take weeks to fully complete.

Intersect stated that no user funds were lost and most retail wallets remained unaffected because they safely ignored the malformed transaction. ADA fell roughly 6% following the disruption, underperforming broader crypto markets amid renewed scrutiny of Cardano’s node software resilience.

Aerodrome and Velodrome Front-Ends Compromised Again

Aerodrome and Velodrome, leading decentralized exchanges on Base and Optimism, suffered front-end compromises on early Saturday morning. Both teams said their domains were hijacked in a DNS attack, temporarily redirecting users to fraudulent websites. Developers urged traders to access backup mirrors and emphasized that underlying smart contracts remain unaffected and fully operational.

The incident echoes a similar November 2023 breach that targeted both exchanges’ front-ends, causing over $100,000 in losses. Investigators said the latest exploit may involve registrar vulnerabilities, with domain providers contacted for urgent recovery. Operator Dromos Labs confirmed plans to merge both platforms under the unified Aero brand by Q2 2026.

Grayscale’s Dogecoin and XRP ETFs Set for Launch

The New York Stock Exchange has approved Grayscale’s Dogecoin and XRP exchange-traded funds, paving the way for Monday listings. The certification from NYSE Arca formalized registration for both products under the Exchange Act of 1934. Each ETF represents a conversion of existing private trusts into public investment vehicles accessible through US brokerage accounts.

The additions expand Grayscale’s ETF roster, which already includes Bitcoin, Ethereum, and Solana funds. Both Dogecoin and XRP maintain substantial retail followings and large market capitalizations among top digital assets. Grayscale’s approvals follow SEC guidance updates that streamlined altcoin ETF procedures during last year’s US government shutdown period.

Kalshi Hits $11 Billion Valuation After $1 Billion Raise

Prediction platform Kalshi reportedly received $1 billion in new funding, boosting its valuation to approximately $11 billion. The surge follows a year of rapid trading growth, with October volumes reaching $4.4 billion across active prediction markets. Investors including Sequoia Capital, Paradigm, and Andreessen Horowitz participated in the round, according to multiple industry reports.

Kalshi’s annualized trading volume has climbed to about $50 billion, far exceeding rival Polymarket’s October results. Analysts said regulatory victories, including the right to host election contracts, have accelerated US market expansion. The company continues facing state-level disputes over whether such prediction products qualify as regulated derivatives or gambling contracts.

Data of the day

Public digital asset treasury firms saw combined market caps plunge from $176 billion in July to $99 billion today. The drawdown follows steep declines across Bitcoin, Ethereum, and Solana, which triggered widespread portfolio losses and stock price erosion. Analysts said shrinking ETF inflows and global macro uncertainty continue weighing on corporate balance sheets tied to crypto exposure.

Michael Saylor’s Strategy still leads with 649,870 Bitcoin worth about $54.5 billion despite the broader selloff. Bitmine and Forward Industries remain under pressure as Ethereum and Solana holdings record double-digit percentage drawdowns. Some companies, including FG Nexus, have begun liquidating crypto reserves to fund buybacks, signaling heightened caution among public treasury operators.

More breaking news

• MegaETH will open pre-deposits for its USDm stablecoin on November 25, capping contributions at $250 million ahead of its Ethereum Layer 2 mainnet launch.

• Coinbase is acquiring Solana meme coin app Vector to improve its onchain trading experience and expand lightning-fast support for Solana assets across its platform.

• A solo Bitcoin miner with just six terahashes per second of hashpower won a $265,000 block reward, beating one-in-180-million odds on Friday.

• The Winklevoss twins launched Cypherpunk, a $100 million Zcash treasury initiative, betting privacy-focused assets will surge as artificial intelligence reshapes digital finance.

• Wormhole Labs unveiled Sunrise, a Solana-focused liquidity gateway designed to bring Monad’s MON and other external assets securely into Solana’s DeFi ecosystem.

• Coinbase Derivatives will roll out 24/7 futures and long-dated “perp-style” contracts for ADA, AVAX, DOGE, SHIB, and other altcoins beginning December 5.

• BitMine announced plans to pay its first annual dividend amid a steep decline in ETH prices, as its treasury multiple to net asset value dips below parity.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.

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