Katherine Ross


<p>CertiK, on Wednesday, claimed that it found a vulnerability with the Solana Saga phone.</p>



<p>Saga is an Android device — the first being offered by Solana.</p>



<p>The auditor said in a post on X that the phone has a bootloader vulnerability. Essentially, a backdoor can supposedly be installed on the phone allowing the initial software responsible for the starting of the device to be compromised.&nbsp;</p>



<p>“The boot loader is unlocked and software integrity cannot be guaranteed. Any data stored on the device may be available to attackers, Do not store any sensitive data on the device,” a screengrab from CertiK’s accompanying video shows the Solana phone’s screen following the backdoor install.</p>



<p>The message is an indication that the phone has been hacked, CertiK said. However, it’s not clear if the vulnerability is unique to Saga or if it could impact other Android devices. CertiK did not immediately respond to a request for comment.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Ever wondered about the security of your Web3 devices? <br><br>Our newest exploration reveals a significant bootloader vulnerability in the Solana Phone, a challenge not just for this device but for the entire industry. Our commitment to enhancing security standards is unwavering. 🔐… <a href="https://t.co/lHZ5W7hXzy">pic.twitter.com/lHZ5W7hXzy</a></p>&mdash; CertiK (@CertiK) <a href="https://twitter.com/CertiK/status/1724774322324062524?ref_src=twsrc%5Etfw">November 15, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>In an email to Blockworks, Steven Laver, lead software engineer of mobile at Solana Labs said that “the CertiK video does not reveal any known vulnerability or security threat to Saga holders. The video shows the user unlocking the bootloader, which is something that can be done on many Android devices.”&nbsp;</p>



<p>Android’s own <a href="https://source.android.com/docs/core/architecture/bootloader/locking_unlocking">documentation</a> from its Open Source Project outlines the ability to lock and unlock the bootloader.&nbsp;</p>



<p>“Unlocking the bootloader is an advanced feature of Saga, and is disabled by default. We believe in allowing users the choice of how they use their phone, however, unlocking the bootloader is not a security vulnerability – a user must explicitly allow such changes to be made to their device, and those changes can only be made by an authorized user of the phone,” Laver continued.</p>



<p>However, if a user or attacker proceeds to unlock the bootloader, then they not only go through multiple warnings, but their device is wiped — along with their private keys.</p>



<p>“So it&#8217;s not a process that can take place without users&#8217; active participation or awareness,” Laver said. </p>



<p>CertiK, however, said that only being able to unlock the bootloader with user participation “does not eliminate all potential threats.”</p>



<p>“Malicious actors can purchase Saga phones and install backdoors through such ‘feature,’ and deliver devices to unconscious users. If users did not understand the warnings, they would be tricked and lose funds to attackers,” CertiK said in an email to Blockworks.</p>



<p>“In addition, given the fact that a considerable portion of traditional phone users have taken the initiative to jailbreak or unlock their devices in the past, it is also likely that some Saga phone users will also explore this “feature” but without enough security awareness. That&#8217;s why we warn users about such situations in our video.”</p>



<p>The video then proceeds to show how an attacker could drain bitcoin from the wallet attached to the phone. It did not show Seed Vault being used in the video, which protects both supported digital assets and seeds.&nbsp;</p>



<p>Seed Vault was <a href="https://solana.com/news/solana-mobile-stack-reveal">announced</a> in June 2022, and “accesses the highest privileged security environment available on a device, from secure operating modes of the processor to dedicated Secure Elements, which enables a secure transaction signing experience through UI components built into Android.”</p>



<p><a href="https://blockworks.co/news/solana-launches-saga-phone">Saga was released in April,</a> having been designed to pair Web3 with smartphones. Alongside traditional app stores, Solana offers a separate app store.</p>



<p>The phone is designed to allow users to have “self-custody of their assets” to make them “feel comfortable bringing those assets with them on the go,” Laver told Blockworks when the phone was released.&nbsp;</p>



<p>Months after the launch, the <a href="https://blockworks.co/news/solana-saga-phone-price-cut">price of Saga was reduced to $599 from $1,000</a> — a 40% cut.</p>



<p>At the time, Emmett Hollyer, head of business operations for Solana Mobile, told Blockworks that the price reduction is “common practice in the consumer electronics business, particularly with smartphones.”</p>



<p>According to CoinMarketCap, the vulnerability has not impacted <a href="https://blockworks.co/price/sol">SOL</a> — Solana’s native crypto — at the time of publishing. In fact, it’s up more than 13% over the past day.</p>



<p><em>Updated Friday, Nov. 17 at 12:15 pm ET: Added comment from CertiK</em>.</p>



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Solana denies ‘security threat’ to Saga phones following CertiK video

James Cirrone


<p>The Android-based Solana Saga has seen a significant price reduction from its iPhone-like starting price of $1,000 down to $599.&nbsp;</p>



<p>Solana Mobile, a subsidiary of Solana Labs, <a href="https://twitter.com/solanamobile/status/1689305794049634304?s=20">announced</a> the news via Twitter on Wednesday. The company said the $400 cut is “the next step to get wider adoption of mobile web3 and continue to improve the experience for the Solana mobile community.”</p>



<p>The numbers tell a slightly different story.</p>



<p>On-chain <a href="https://flipsidecrypto.xyz/kiryl_sol/q/teMJ5GbI42zi/saga-genesis-tokens-chart">data</a> compiled by Flipside Crypto shows that sales for the <a href="https://blockworks.co/tag/saga">Solana Saga</a> have come down massively since their April and May highs.&nbsp;</p>



<p>The data tracks the number of Saga Genesis NFT mints, something that occurs when the owner of a Solana Saga sets up their phone and the Solana app store.&nbsp;</p>



<p>As of July 25, there are slightly more than 2,100 unique Saga Genesis NFT owners. This suggests that approximately this many Solana Sagas have been activated since early April.</p>



<iframe title="Number of Saga Genesis Mints" aria-label="Interactive line chart" id="datawrapper-chart-aAfvQ" src="https://datawrapper.dwcdn.net/aAfvQ/3/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="411" data-external="1"></iframe>



<p></p>



<p>Emmett Hollyer, the head of business operations for Solana Mobile, told Blockworks that price cuts like this are standard in the industry.</p>



<p>“Implementing a price reduction several months after launch is common practice in the consumer electronics business, particularly with smartphones,” Hollyer said.&nbsp;</p>



<p>“A lower price will accelerate user adoption,” he added.</p>



<p>Twitter users who say they purchased the Solana Saga at the $1,000 price point voiced their frustration with Solana&#8217;s decision. Others showed support for the price reduction.</p>



<p>One user said they regretted buying the phone and said this was a “terrible look.”</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">To do this without anything being given to those of us who paid full price to offset how much this burns is a terrible look. You guys are the worst; I highly regret buying this thing.</p>&mdash; ema.sol (@ThisHighUp) <a href="https://twitter.com/ThisHighUp/status/1689317215043035136?ref_src=twsrc%5Etfw">August 9, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>In the replies to that tweet, some argued that early adopters often pay a premium. In this case, that would be the people who bought the first 2,000 Solana Sagas.</p>



<p>Other argued that early owners of the phone were able to mint exclusive Claynosaurz NFTs. The <a href="https://magiceden.io/marketplace/claynosaurz">floor price</a> for one of these collectibles on Magic Eden is about 33 <a href="https://blockworks.co/price/sol">SOL</a>, which equates to over $800. This more than covers the price differential of $400.&nbsp;</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Everyone with a Saga got a clayno &#8230; the last clayno mint allowed Sagas who already had a clayno to get a second clayno, so everyone with a Saga could have gotten at least one clayno. Clayno&#39;s are several hundred dollars.</p>&mdash; Eugene 🇺🇦 (@Eugene482) <a href="https://twitter.com/Eugene482/status/1689323517291253760?ref_src=twsrc%5Etfw">August 9, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>The first rumblings of the Solana Saga occurred way back in June 2022, when the company unveiled their plan to give people an opportunity <a href="https://blockworks.co/news/solana-branches-out-to-hardware-development-with-web3-mobile-phone">to manage their crypto and NFT holdings from a mobile device</a>.</p>



<p>“We live our lives on our mobile devices — except for Web3 because there hasn’t been a mobile-centric approach to private key management,” Solana co-founder Anatoly Yakovenko told Blockworks at the time.&nbsp;</p>



<p>The phone launched in April, <a href="https://blockworks.co/news/solana-launches-saga-phone">starting out with 16 decentralized apps on its native app store</a>, including Audius, Dialect, Jupiter Aggregator, Ledger and Magic Eden among others.</p>



<p><em>Updated Aug. 10, 2023 at 4:36 pm ET: Added comment from Emmett Hollyer, the head of business operations for Solana Mobile.</em></p>



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Solana cuts price of its Saga phone by 40% four months after launch

Ornella Hernandez

<div id="highlights-block_62c6e8eed1f51" class="highlights">
        <ul>
                <li>Polygon and Ethereum-based NFTs were tested on some selected users on Facebook at the start of this month</li>
                <li>Otherdeed was the most-traded project on OpenSea the past few days, which had 988 ETH in sales, an uptick most likely due to the anticipation of the upcoming Otherdeed metaverse</li>
            </ul>
    
</div>



<h3 class="wp-block-heading"><strong>Web3 gaming console is met with mixed reviews</strong></h3>



<p>Web3 company Polium is attempting to build a gaming console that will support multiple blockchains and NFTs. The company <a href="https://medium.com/@Polium_/polium-one-the-worlds-first-multi-chain-gaming-console-5052a44594c8" target="_blank" rel="noreferrer noopener">seeks</a> to “bring mass adoption into the Web3 space” to entice traditional gamers away from strictly playing on their PCs.&nbsp;</p>



<p>Heralded “Polium One,” the console will run games built on the ImmutableX, Ethereum, Solana, Polygon, BNB Chain, Harmony, EOS and WAX blockchains. A multichain wallet for trading, swapping and staking cryptocurrency will be available, according to press materials.</p>



<p>Its estimated release date is set for the third quarter of 2024, but the device is still a work in progress. Many Twitter users have been quick to criticize the project.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">We are introducing the Polium One, A multi-chain console for Web 3 Gaming. <a href="https://twitter.com/hashtag/Web3OnConsole?src=hash&amp;ref_src=twsrc%5Etfw">#Web3OnConsole</a> <a href="https://t.co/tkRaP2O13A">pic.twitter.com/tkRaP2O13A</a></p>&mdash; Polium (@Polium__) <a href="https://twitter.com/Polium__/status/1543288314433867777?ref_src=twsrc%5Etfw">July 2, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>After Polium’s logo was called out for resembling the Nintendo GameCube logo, the company <a href="https://twitter.com/Polium__/status/1543939765644443651?s=20&amp;t=VeRSMP4t4oEH7DK92_n6AA" target="_blank" rel="noreferrer noopener">denied</a> the likeness via Twitter and stated a new original logo is in the works.</p>



<p>The intended specifications for the console include 4K Ultra HD resolution at 120 frames per second and a fingerprint scanner on the controller that was originally called Touch ID — until Twitter users pointed out the term is an Apple trademark.</p>



<p>Polium aims to have a functional prototype in “a few months” that is “built by the community.”&nbsp;</p>



<h3 class="wp-block-heading"><strong>RTFKT provides new utility to Clone X holders</strong></h3>



<p>The Nike-owned RTFKT NFT (non-fungible token) collection has <a href="https://rtfktstudios.medium.com/a-new-era-begins-the-start-of-the-avatar-economy-91f644be33be" target="_blank" rel="noreferrer noopener">marked</a> the beginning of a “new era” by granting full commercial rights to Clone X NFT holders. The company said owners will be able to use their Clones to mint fan art NFTs, make merch or music, and create their own businesses.</p>



<p>RTFKT is providing community members with the necessary files of their Clones to render 3D models and animations on software such as Maya and Blender.&nbsp;</p>



<p>The company envisions an ecosystem where a new generation of creators can collaborate with 3D artists, become virtual YouTubers or design their own wearables.&nbsp;</p>



<p>“The era of PFP is over, welcome to the Avatar Economy,” RTFKT stated on Medium.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">A new Era begins <br>3D Files 🌐<br>Full Commercial Rights 👩‍⚖️<br>It’s time to CREATE 🧵<a href="https://twitter.com/hashtag/clonesunlocked?src=hash&amp;ref_src=twsrc%5Etfw">#clonesunlocked</a> 🔓 <a href="https://t.co/fYqx6Sbg23">pic.twitter.com/fYqx6Sbg23</a></p>&mdash; RTFKT (@RTFKT) <a href="https://twitter.com/RTFKT/status/1544035652848738304?ref_src=twsrc%5Etfw">July 4, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>Additionally, Nike recently <a href="https://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&amp;Sect2=HITOFF&amp;p=1&amp;u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&amp;r=3&amp;f=G&amp;l=50&amp;co1=AND&amp;d=PG01&amp;s1=nike&amp;OS=nike&amp;RS=nike" target="_blank" rel="noreferrer noopener">filed</a> a patent with the United States Patent and Trademark Office (USPTO) on June 30 for “video game integration” of NFTs.</p>



<p>The filing states that Nike seeks to patent a method where a “virtual object,” such as a “shoe, article of apparel, headgear, avatar or pet” will be used in digital collectible games from basketball and soccer. Users would be able to unlock NFT sneakers named &#8220;CryptoKicks&#8221; for their avatars, and physical twins of shoes and clothing will be available for retail sale.&nbsp;</p>



<p>The application cites Nike’s main motivations as a need to “more directly influence and/or control” the exclusivity and supply of digital objects in the virtual market as a way of tackling counterfeit footwear and imitation goods. Additionally, the sportswear giant sees creating video games as an opportunity to further physical brand engagement by influencing users in the digital realm.&nbsp;</p>



<h3 class="wp-block-heading"><strong>Phones with built-in crypto wallets are the new trend</strong></h3>



<p>First, Solana Labs <a href="https://cms.blockworks.co/solana-branches-out-to-hardware-development-with-web3-mobile-phone/" target="_blank" rel="noreferrer noopener">announced</a> its plan to build a Web3 Android mobile phone, Saga, to easily transact with cryptocurrency. Now, Ethereum scaling solution Polygon has partnered with two other phone makers to further Web3 access for mobile users.</p>



<p>HTC is <a href="https://twitter.com/htc/status/1541678095870164995?s=20&amp;t=64g3nKcSqoivCm-FHZm8Ew" target="_blank" rel="noreferrer noopener">building</a> the HTC Desire 22 phone so that users can connect with its Vive Flow virtual reality glasses and stream content from the phone’s screen to the wearable’s display. Users will be able to manage their tokens and NFTs on Ethereum and Polygon via the Vive Wallet and the Vive Marketplace. The apps will offer “rich metaverse experiences without a VR headset.”</p>



<p>Polygon has teamed up with phone company Nothing to integrate its tech into the Nothing Phone (1) launching on July 12. The smartphone will not officially be released in North America but will work in the region.</p>



<p>Smartphone users will have access to apps and games on the Polygon platform, as well as its payments features and its proof-based identification solution, Polygon ID. Those who pre-ordered the Nothing Phone (1) became part of an NFT membership club and could receive Nothing’s Black Dot NFTs, which provide early access to certain products, events and benefits.&nbsp;</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Nothing Series #3. We take a deeper look at Phone (1). See what it takes to build it from the inside out. And to get it ready for the launch.  <a href="https://t.co/VxTHXn1XtJ">https://t.co/VxTHXn1XtJ</a> <a href="https://t.co/CA3fdZBovR">pic.twitter.com/CA3fdZBovR</a></p>&mdash; Nothing (@nothing) <a href="https://twitter.com/nothing/status/1544668542930505729?ref_src=twsrc%5Etfw">July 6, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading"><strong>Latest Funding News</strong></h3>



<ol><li>Zigazoo, a social network for kids built on the Flow blockchain, recently <a href="https://fortune.com/2022/06/28/web3-nft-company-zigazoo-raises-17-million-series-a-funding/" target="_blank" rel="noreferrer noopener">announced</a> a $17 million Series A funding round. Liberty City Ventures led the raise, with participation from venture capital firm Causeway, the NBA, Dapper Labs, OneFootball, Medici VC, Animoca Brands, Lightspeed Venture Partners, Core Ventures, Spartan Group and TikTok stars Charli and Dixie D’Amelio. Zigazoo’s mission is to provide a “safe and positive online community” for children by helping them navigate the world of Web3, NFTs and the metaverse. Capital will be spent on the expansion of Web3 offerings such as NFT drops, increasing the token’s in-app utility, and building an NFT creator studio.</li><li>Gaming-focused VC firm Konvoy Ventures has <a href="https://cms.blockworks.co/konvoy-ventures-launches-150m-fund-to-back-web3-gaming-firms/" target="_blank" rel="noreferrer noopener">raised a $150 million fund</a> to support its portfolio companies during the market downturn and back other gaming startups. The company plans to spend 20% to 30% of that money on blockchain-based games. The firm has previously backed Sky Mavis, the developer of Axie Infinity, as well as the Genopets NFT game and the Ready Player Me avatar platform.</li><li>Bonfire Union, the investment arm of Web3 protocol Mask Network, <a href="https://techcrunch.com/2022/07/06/bonfire-union-mask-network-maiden-fund/" target="_blank" rel="noreferrer noopener">announced</a> that it has raised a $42 million fund with support from Binance, Alameda Research, Animoca Brands, Digital Currency Group, Arweave, HashKey Group and others. Mask Network is a Binance-backed startup that enables users to send cryptocurrencies and encrypted messages through platforms such as Twitter. The firm plans to invest in the “social ecosystem” of Web3, inspired by a fellow Chinese company Tencent, creator of the WeChat app.</li></ol>



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