“Binance CEO Changpeng “CZ” Zhao says that his exchange is setting up a recovery fund to help rebuild the industry. Tron founder Justin Sun said that Tron, Huobi Global and Poloniex will support Binance in its initiative.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify.
In remarks made Monday at the B20 Summit in Indonesia, CZ said he wanted the industry, as well as regulators, to take responsibility for cleaning up its act.”
See Also: CrossTower revises new offer for Voyager’s assets after FTX’s bankruptcy
See Also: Binance to Be ‘Guinea Pig’ for Vitalik Buterin’s Proof-of-Reserves Protocol: CZ
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“With many commentators mistakenly equating one person’s record-breaking fraud with the failings of the entire crypto space, we have seen two very unexpected voices speaking out in defense of cryptocurrencies.
The first comes from Deutsche Bank which notes, ‘this second “crypto winter” will be a net positive because the FTX collapse will edge the crypto ecosystem closer to the established financial sector.‘ Specifically, the DB analyst writes that the FTX crash spotlighted well-known structural issues in the crypto ecosystem: ‘insufficient reserves, conflict of interest, a lack of regulation and transparency, and unreliable data.’
A more surprising defense of crypto came from JPMorgan crypto analyst Steven Alexopoulos:
While this is certainly a major short-term setback, we see the widely publicized collapse of FTX as potentially dramatically accelerating the timeline to which crypto-related regulation will be ushered in. In fact, we see the establishment of a regulatory framework as the needed catalyst to massively ramp the institutional adoption of crypto.
Moreover, while the news of the collapse of FTX is empowering crypto skeptics, we would point out that all of the recent collapses in the crypto ecosystem have been from centralized players and not from decentralized protocols.”
See Also: After Bitcoin’s Worst Week in 5 Months, Here’s What Crypto Analysts Are Saying
“The shockwaves from FTX’s historic collapse are still being felt across the industry today, but some industry segments, like DeFi, are actually doing better because of it.
Trading volumes on decentralized exchanges (DEXs) hit a whopping $32 billion over the last seven days. The lion’s share of the volume comes from Uniswap, which accounts for $20.9 billion of the trades. Smaller DeFi platforms also benefited. On Friday, 1Inch network, an aggregation platform for various DEXs, tweeted gains across all of its protocols.
The rising popularity of decentralized exchanges over the last week is not surprising considering the biggest horror stories of the industry’s ongoing liquidity crunch—dubbed “crypto winter”—have all followed a similar pattern. Lenders like Hodlnaut, Vauld, Celsius, and Singaporean exchange Zipmex all suspended customer crypto withdrawals because of “recent market conditions,” a term which is a bit of a euphemism for “not having the liquidity to meet outstanding redemption requests.” All of them are bankrupt now.
So, how can consumers avoid the obvious risks of custodying their crypto with a centralized exchange? To DeFi fans, the answer is obvious: enter decentralized exchanges. If there’s one silver lining to the terrible liquidity crises blowing up across the industry, it’s that crypto appears to be returning to first principles. After all, centralized interventions were the very reason crypto was created in the first place.“
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“The Solana Foundation said Monday it has tens of millions of dollars in cryptocurrencies stranded on FTX – as well as 3.24 million common stock shares in Sam Bankman-Fried’s bankrupt crypto exchange. The Foundation said it held 134.54 million SRM tokens and 3.43 million FTT tokens on FTX when withdrawals went dark on Nov. 6. Those assets are worth $29.3 million and $4.4 million, respectively, at current market prices; they were worth around $107 million and $83 million one day before the freeze.
Those holdings point to deep financial ties between Solana and FTX, which created the FTT token and held court over Serum, an on-chain crypto exchange that Bankman-Fried created and which was at the center of much of Solana-based decentralized finance (DeFi).
FTX’s collapse last week continues to reverberate through Solana, perhaps most acutely through its severe sell pressure on the price of SOL, which is down 57% in a week. But FTX’s role in managing infrastructure critical to Solana DeFi has caused a crisis for individual protocols, too.
Many trading projects on Solana used wrapped assets called “Sollet assets” as stand-ins for bitcoin, ether and other non-native cryptocurrencies. FTX was believed to be the issuer and backer of these assets; its collapse has sent them into a spiral and shouldered a handful of protocols with bad debt.
Bankman-Fried’s exchange and trading firm had purchased a total of 58,086,686 SOL tokens from the Foundation and sister entity Solana Labs from August 2020 onwards, the blog post said. The Foundation said it is unclear what will happen to those assets during bankruptcy proceedings.“
See Also: Sam Bankman-Fried’s Unceremonious Exit Leaves ‘Alameda Gap’ in Crypto Markets
“Hacken investigated blockchain transactions and found that the looter tried to send tether (USDT) stablecoin on the Tron blockchain multiple times unsuccessfully because they didn’t have enough TRX, the Tron network’s native token, in the wallet to pay for transaction fees. So the looter used their verified personal account on crypto exchange Kraken to send 500 TRX to the compromised wallet address to cover the transaction.
Because of Kraken’s “know-your-customer” or KYC measures, the exchange had information on who owns the personal wallet the TRX was sent from, revealing the identity behind the exploit.
We know the identity of the user.
A Kraken spokesperson said that the exchange is ‘in contact with law enforcement, and has frozen Kraken account access to certain funds we suspect to be associated with ‘fraud, negligence or misconduct’ related to FTX.’ Percoco added he was told that FTX or the exchange’s founder and former chief executive, Sam Bankman-Fried, will release an official statement.
Budorin said that the exploit demonstrated that the way FTX managed its cold wallets was “very poor.””
See Also: FTX Hacker Panicked, Still Holds $339M in Ether, Cryptos: Arkham Intelligence
See Also: Paxos Ordered by US Officials to Freeze $19M in Crypto Tied to FTX
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“In the aftermath of crypto exchange FTX’s fall from grace, U.S. Treasury Secretary Janet Yellen said the industry needs ‘very careful regulation. It shows the weaknesses of this entire sector,’ Yellen said referring to the collapse of Sam Bankman-Fried’s multibillion dollar enterprise.
Congressman and crypto skeptic Brad Sherman says he will work with his colleagues at the House of Representatives to ‘examine options for federal legislation.‘”
See Also: Health of FTX’s US Derivatives Arm Owed to Oversight, Says CFTC Chief Behnam
See Also: There Was No Cause to Add FTX to Investor Alert List Before Collapse, Singapore’s MAS Says
“Alameda Research used prior knowledge of tokens that were scheduled to be listed on FTX to buy them ahead of the public announcements and then sold them for a profit, according to an analysis from crypto compliance firm Argus. Between the start of 2021 and March of this year, Alameda held $60 million worth of 18 different tokens that were eventually listed on FTX.
What we see is they’ve basically almost always in the month leading up to it bought into a position that they previously didn’t.
If the allegations against Alameda Research prove to be true, it will mean the company was frontrunning exchange listings on a bigger scale than either the ex-OpenSea or ex-Coinbase managers who’ve already been charged.”
See Also: Manhattan US Attorney’s Office Opens Probe Into FTX Collapse: Reuters
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“Bitcoin Cash (BCH) could be legal tender in Saint Kitts and Nevis by next March, its prime minister said at a conference on Saturday. A statement by the government cited issues of financial safety and security of citizens as needing to be ironed out.
Our nation has always been forward thinking nation and a leader in exploring new industries. The crypto revolution has the potential to bring enormous benefits and business opportunities.
The island chain would join countries such as El Salvador and the Central African Republic that have state backing for using crypto as a means of payment.“
“The .Swoosh platform is billed as the epicenter for Nike’s digital efforts around Web3. It’s designed to spotlight the brand’s NFTs and virtual apparel initiatives, including future ways for customers to become co-creators and share in digital product royalties.
Nike will use the platform as a hub to launch virtual apparel like t-shirts and sneakers for avatars that can be used within Web3 games. It will also utilize Web3 tech to allow users to unlock real-world benefits, such as exclusive physical apparel or chats with pro athletes.
Nike’s NFT apparel will be minted on Polygon, an Ethereum sidechain network, whereas the previous Nike and RTFKT drops have all been launched via the Ethereum mainnet. The company plans to gradually let new users into the closed platform through the end of the year, ahead of a first NFT drop in January 2023.”
See Also: Inaugural Gam3 Awards to honor the best Web3 games of 2022
The Disrupt 