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FTX bankruptcy filing details, Binance’s crypto industry fund and a U.S. CBDC pilot: Hodler’s Digest, Nov. 13-19
Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
SBF received $1B in personal loans from Alameda: FTX bankruptcy filing
Documentation related to FTX’s bankruptcy proceedings revealed the firm was mismanaged on multiple levels. FTX Group was reportedly composed of multiple companies categorized into four silos. A $1 billion personal loan was reportedly allocated to former FTX CEO Sam Bankman-Fried from one of those silos. The documentation also revealed many other holes and oddities relating to the function of FTX. Several regulators are reportedly looking into FTX, including the Securities Commission of the Bahamas. The Financial Industry Regulatory Authority, a self-regulatory U.S. organization, has also opened a broader investigation into crypto-involved companies in general, evaluating their communications with the retail public.
Binance creates industry recovery fund to help projects struggling with liquidity
Binance CEO Changpeng Zhao unveiled his work on a new fund to help the struggling crypto sector — a sector which has been negatively affected by the fall of FTX. Zhao’s new fund looks to help by assisting “strong” crypto industry companies that have liquidity issues, the CEO said in a Nov. 14 tweet. Such companies should reach out to Binance Labs, as well as players looking to add capital to the fund. The fund will not go toward helping FTX, however, as specified by Zhao.
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Features
How to prepare for the end of the bull run, Part 1: Timing
FTX illustrated why banks need to take over cryptocurrency
Banks should embrace crypto as a way to mitigate risk and prevent losses that consumers at the hands of rogue crypto exchanges.
Singapore police warn investors against FTX phishing scams: Report
FTX has an estimated $8 billion hole in its balance sheet. Investors desperate to get their money back are being targeted by phishing scams.
Proof-of-reserves: Can reserve audits avoid another FTX-like moment?
Crypto exchanges are actively releasing proof-of-reserves audits in order to build transparency but experts believe it would take more than that to regain investor trust.
Bitcoin sees record Stock-to-Flow miss — BTC price model creator brushes off FTX 'blip'
Bitcoin price action since FTX "feels like the world has ended," says Stock-to-Flow creator PlanB.
Bitcoin sees record Stock-to-Flow miss — BTC price model creator brushes off FTX 'blip'
Bitcoin (BTC) is now further than ever from its target price according to the Stock-to-Flow (S2F) model.
The latest data shows that BTC/USD has deviated from planned price growth to an extent never seen before.
Stock-to-Flow sets grim new record
With BTC price suppression ongoing in light of the FTX scandal, an already bearish trend has only strengthened.
This has implications for many core aspects of the Bitcoin network, notably miners, but some of its best-known metrics are also feeling the heat.
Among them is S2F, which is seeing its price forecasts come under increasing strain — and criticism.
Binance CEO CZ begins working on Vitalik Buterin's ‘safe CEX’ ideas
While long-term solutions will need the involvement of multisig and social recovery wallets, Buterin pointed out two alternatives for the short-term — custodial and non-custodial exchanges.
SBF's lawyers terminate FTX representation due to conflicts of interest
Attorney Martin Flumenbaum believed that Sam Bankman-Fried's "incessant and disruptive tweeting" negatively impacted the reorganization efforts of the lawyers.
Spain for the win? Top 3 fan tokens to watch during the FIFA World Cup
The FIFA World Cup in Qatar is boosting the value of national soccer club fan tokens despite the cryptocurrency bear market.
World Cup Qatar hype boosts fan token prices
These digital fan tokens are currently rallying despite the cryptocurrency market downturn, securing up to 170% gains from the Nov. 10 lows. At the core of the massive uptrend is the World Cup, which will be held from Nov. 20 to Dec. 18 in Qatar.
Fan tokens are cryptocurrencies that enable fans to engage with and participate in their favorite team's decisions. Moreover, they create new sponsorship opportunities for sports clubs and national squads outside of traditional revenue sources.
Here's a brief overview of the top gainers in the fan token sector, alongside their technical outlook during the course of the World Cup.
Spain National Football Team Fan Token (SNFT)
The Spain National Football Team Fan Token (SNFT) emerged as the top gainer in the sports token section, rising 170% to a high of $0.54 on Nov. 19, nine days after bottoming out at $0.20.
Spain for the win? Top 3 fan tokens to watch during the FIFA World Cup
The FIFA World Cup in Qatar is boosting the value of national soccer team fan tokens despite the cryptocurrency bear market.
World Cup Qatar hype boosts fan token prices
These digital fan tokens are currently rallying despite the cryptocurrency market downturn, securing up to 170% gains from the Nov. 10 lows. At the core of the massive uptrend is the World Cup, which will be held from Nov. 20 to Dec. 18 in Qatar.
Fan tokens are cryptocurrencies that enable fans to engage with and participate in their favorite team's decisions. Moreover, they create new sponsorship opportunities for sports clubs and national squads outside of traditional revenue sources.
Here's a brief overview of the top gainers in the fan token sector, alongside their technical outlook during the course of the World Cup.
Spain National Football Team Fan Token (SNFT)
The Spain National Football Team Fan Token (SNFT) emerged as the top gainer in the sports token section, rising 170% to a high of $0.54 on Nov. 19, nine days after bottoming out at $0.20.
Bitcoin scarcity rises as bad exchanges take 1.2M BTC out of circulation
Historical data around crypto crashes revealed that 14 crypto exchanges, together, were responsible for the loss of at least 1,195,000 BTC, representing 6.3% of the 19.2 Bitcoin currently in circulation.
South Korea seizes $104M from Terra co-founder suspecting unfair profits
The decision to freeze Shin’s asset worth over $104 million was approved by the Seoul Southern District Court, which was based on a request from the prosecutors.
Nickel Digital, Metaplex, and others continue to feel the impact of FTX collapse
Some companies have resulted in layoffs to deal with their million-dollar losses.
FTX is done — What’s next for Bitcoin, altcoins and crypto in general?
2022 was a tough year for crypto, and November was especially hard on investors and traders alike.
While it was incredibly painful for many, FTX’s blowup and the ensuing contagion that threatens to pull other centralized crypto exchanges down with it could be positive over the long run.
Allow me to explain.
What people learned, albeit in the hardest way possible, is that exchanges were running fractional reserve-like banks to fund their own speculative, leveraged investments in exchange for providing users with a “guaranteed” yield.
Somewhere, across the crypto Twitterverse, the phrase “If you don’t know where the yield comes from, you are the yield!” is floating around.
FTX is done — What’s next for Bitcoin, altcoins and crypto in general?
2022 was a tough year for crypto, and November was especially hard on investors and traders alike.
While it was incredibly painful for many, FTX’s blowup and the ensuing contagion that threatens to pull other centralized crypto exchanges down with it could be positive over the long run.
Allow me to explain.
What people learned, albeit in the hardest way possible, is that exchanges were running fractional reserve-like banks to fund their own speculative, leveraged investments in exchange for providing users with a “guaranteed” yield.
Somewhere, across the crypto Twitterverse, the phrase “If you don’t know where the yield comes from, you are the yield!” is floating around.
FTX is done — What’s next for Bitcoin, altcoins and crypto in general?
FTX is gone, and it looks like many centralized crypto platforms will fall with it. But is there a silver lining?
FTX collapse could trigger ‘appetite' for harsher regulation, says Andrew Yang
“This is categorically a very, very negative thing for human beings and for the regulatory environment,” Yang said.
Bitcoin traders increase leverage longs even as crypto critics say BTC is a “pure Ponzi”
In the past 48-hours Bitcoin traders added to their leveraged long positions even as crypto critics and politicians ramp up their criticism of cryptocurrencies.