KEYTAKEAWAYS
- Kaspersky warns about SparkCat malware stealing crypto wallet recovery phrases via screenshots.
- MetaMask now supports transfers via ENS domain names on Layer 2.
- Analyst says Bitcoin’s market dominance needs to exceed 70% for a new altcoin season.
CONTENT
KASPERSKY: BEWARE OF SPARKCAT MALWARE STEALING CRYPTO WALLET RECOVERY PHRASES VIA SCREENSHOTS
Kaspersky Labs has discovered a new type of malware called SparkCat, which is designed to steal recovery phrases from crypto wallets. The attackers use OCR (Optical Character Recognition) technology to extract the recovery phrases from users’ screenshots, giving them full access to the victim’s wallet.
This malware has been found in apps on both Google Play and the App Store, some of which have been downloaded over 240,000 times. The malware has been active since at least March 2024, but it’s still unclear whether it was introduced through a supply chain attack or was deliberately implanted by the developers.
Analysis
This attack method is quite sneaky, as many people save their recovery phrases by taking screenshots. The attackers exploit this habit. If your recovery phrase is saved as a screenshot, it could be easily stolen. The security of a crypto wallet depends entirely on the privacy of the private key or recovery phrase. Once leaked, the assets in the wallet are essentially lost.
The safest practices are:
- Check and delete suspicious apps from Google Play or the App Store, especially any you’ve downloaded recently.
- Avoid saving recovery phrases in screenshots. It’s better to write them down and store them securely, or use offline storage methods.
- Regularly check wallet security. If you suspect your device is infected, move assets to a new wallet and ensure the new recovery phrase is not stored electronically.
This event serves as a reminder that wallet security in the Web3 world is critical, and what seems convenient can often be a vulnerability.
METAMASK NOW SUPPORTS TRANSFERS VIA ENS DOMAIN NAMES ON LAYER 2
MetaMask has added support for transferring funds using ENS domain names on Layer 2 (L2) networks. This means users can now transfer funds using an ENS address directly, without needing to input a long and complicated L2 wallet address. This makes transactions easier and more accurate.
Analysis
The main advantage of ENS domain names is that they simplify wallet addresses. Instead of remembering a long string of characters, you can use a name like “yourname.eth” for transactions. In the past, ENS was used mainly on the Ethereum mainnet. Now that it’s available on Layer 2, it lowers transaction costs and improves user experience.
ANALYST: BITCOIN’S MARKET DOMINANCE NEEDS TO EXCEED 70% FOR A NEW ALTCOIN SEASON
Crypto analyst Rekt Capital believes that Bitcoin’s market dominance (BTC.D) needs to break above 70% for a new “altcoin season” to begin. Currently, BTC.D has risen to 64.3%, but it recently dropped to 61%. However, the overall trend is still upward. Historical data shows that 71% is a key point. If BTC.D faces resistance at this level, the market may shift towards altcoins.
Analysis
In simple terms, the higher Bitcoin’s market dominance, the more the market is “Bitcoin-focused,” and most capital flows into BTC, leaving altcoins underperforming. Over the past few months, Bitcoin’s dominance has been rising, meaning the market is leaning towards BTC rather than high-risk altcoins.
So, when will the “altcoin season” start? History suggests that when BTC.D hits 70% and then drops back, funds begin to flow into altcoins. If BTC.D continues to rise, altcoins may have to wait longer. However, each cycle is different, so investors should consider market sentiment and the performance of specific sectors before making decisions.
Read More：
CoinRank Crypto Digest: February 05, 2025
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