- Blockchain and Fintech at Fordham
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- Your BFF | 9/30
Fordham's blockchain + fintech club educates students on a growing industry.
Welcome back to the newsletter curated by the Blockchain and FinTech at Fordham Club!
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Table of Contents
TODAY’S TOP FIVE MOVERS
As of Sept. 30th, 2024 4:00 PM EST, Courtesy of coinmarketcap.com
A Safer Future for Fintech Applications May Be in Progress
Despite being advertised as “FDIC-insured,” one hundred thousand people were locked out of their fin-tech bank accounts, and $256 million in deposits were locked and inaccessible. The Synapse fintech bankruptcy collapse awakened many economists, finance gurus, and stakeholders, illustrating how third-party apps are unsafe for one’s finances. Furthermore, as of September 17th, the Federal Deposit Insurance Corp. (FDIC) presented a new rule for fintech firms: fintech firms are encouraged to partner with banks to establish institutional records of the fintech firms’ accounts and daily balances. If the proposed ruling is passed, the rules will be enforced within sixty days through the Federal Register. With the prospective ruling, will the future of fintech be more secure and, thus, more streamlined for the average American investor?
Contributor: Rebecca Trosman
Sources:
https://www.cnbc.com/2024/09/17/fdic-banks-fintech-customer-data-synapse.html https://www.cnbc.com/2024/07/02/synapse-fintech-fdic-false-promise.html https://www.fdic.gov/news/press-releases/2024/fdic-proposes-deposit-insurance-recordkeeping-rule-banks-third-party, https://www.raisin.com/en-us/deposit-insurance
Optimizing Portfolio Management Through AI and Machine Learning
The global takeover of artificial intelligence (AI) and machine learning (ML) over the past decade has significantly transformed various fields, particularly finance. In the realm of portfolio management, leveraging AI and ML can lead to more informed decision-making and enhanced investment strategies. Machine learning algorithms are particularly effective in analyzing large data sets and non-linear relationships that frequently arise in financial markets. Investment professionals take advantage of these ML algorithms to gain an edge when constructing their portfolios, as these algorithms can be used to detect trends that are not easily identified by humans.
Moreover, AI plays a pivotal role in algorithmic trading, where high volumes of transactions and rapid market fluctuations require precise decision making. By processing vast amounts of market data, AI not only assists traders in determining optimal buy and sell moments, but can also be used to help formulate dynamic trading strategies that adapt to changing market conditions. This capability allows for the identification of the most favorable prices while minimizing transaction costs, ultimately enhancing overall profitability. As AI and ML continue to evolve, their integration into finance will likely deepen, leading to even more innovative approaches to investment management and market analysis.
Contributor: Jack Reynard
Sources:
Hack Costs Leading Singapore-Based Crypto Exchange BingX over $43,000,000
On September 20th, 2024, the leading Singapore-Based Crypto Exchange, BingX, was hacked. The hacker worked in batches, first taking about $26.68M in Crypto, and then hours later taking another $16.5M. The hacker swapped most of the assets right after taking them, mostly for Ethereum and BNB. BingX uses a layered management system to protect user assets, storing assets in two locations: hot wallets and cold wallets. The cold wallets, which are stored offline, are where most assets are stored, and are much harder to hack. The hot wallets are where a minimal amount of assets are stored for the purpose of withdrawals. This attack was targeted on the hot wallets. Following the attack, BingX temporarily paused withdrawals to prevent further losses, however they assured users withdrawals would resume within 24 hours. Even though over $43,000,000 were stolen, BingX reported “only minor losses”, and assured users they would compensate them for missing assets.
Contributor: Taylor Clark
Sources:
Singapore-Based Crypto Exchange BingX Suffers $52,000,000 Hack: Blockchain Security Firm - The Daily Hodl, BingX Crypto Exchange Suffers $43M Hot Wallet Hack, Describes Loss as Manageable (techreport.com), BingX on X: "🚨 Security Update 🚨 At 4 AM (SGT) on Sept 20, our team detected abnormal access to the BingX hot wallet, suspecting a hacker attack. We immediately initiated an emergency response, including asset transfers and pausing withdrawals. 🔒 Only minor losses so far, and we’ve got" / X
Stay Tuned Here 👇
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