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FTX Bankruptcy Filing Details, Binance Crypto Industrial Funds, and a US CBDC Pilot: Hodler's Digest, May 13-19 November

Published on

January 20, 2023
Read Time:7 Minute, 15 Second

Come each Saturday Hodler's Digest will show you how to maintain observe of each single essential information that occurred this week. Greatest (and worst) charges, launch and regulation highlights, main cash, predictions and extra - per week on Cointelegraph in a single hyperlink.

High tales of this week

SBF Acquired $1 Billion in Private Loans from Alameda: FTX Chapter Submitting

Documentation surrounding FTX's chapter proceedings revealed that the corporate was poorly managed on a variety of ranges. FTX Group reportedly consisted of a number of firms categorized into 4 silos. Former FTX CEO Sam Bankman-Fried was reportedly allotted a $1 billion private mortgage from a type of silos. The documentary additionally revealed many different holes and oddities relating to how FTX works. A number of regulators are reportedly trying into FTX, together with the Securities Fee of the Bahamas. The Monetary Business Regulatory Authority, a US self-regulatory group, has additionally launched a broader investigation into crypto-related firms usually, assessing their communications with the retail public.

Binance is establishing an business restoration fund to assist tasks fighting liquidity

Binance CEO Changpeng Zhao unveiled his work on a brand new fund to assist the struggling crypto sector — a sector negatively impacted by the autumn of FTX. Zhao's new fund goals to assist by serving to "sturdy" crypto business firms dealing with liquidity issues, the CEO stated in a Nov. 14 tweet. Such firms ought to flip to Binance Labs, as ought to gamers trying so as to add capital to the fund. Nevertheless, the fund is not going to be used to assist FTX, as acknowledged by Zhao.

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The best way to Put together for the Finish of the Bull Run, Half 1: Timing

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Assaulting the “Final Bastion”: Worry and anger as NFTs declare excessive tradition standing

NY Fed launches 12-week CBDC pilot program with main banks

Over the subsequent three months, the Federal Reserve Financial institution of New York's Innovation Heart will check a simulated central financial institution digital foreign money system (CBDC) in collaboration with a number of banking giants. Citigroup, PNC Financial institution, BNY Mellon, Wells Fargo and others will settle simulated tokenized cash by way of a distributed ledger settled in opposition to simulated central financial institution reserves.

The FTX Contagion: Which Companies Were Affected by the FTX Collapse?

FTX's recent demise has impacted the entire crypto space in a variety of ways, from increased scrutiny from regulators to companies whose assets are on FTX. More than 10 companies have reported feeling negative effects from the FTX ordeal, often with millions of dollars at risk. The companies include Galaxy Digital, Sequoia Capital, BlockFi, Crypto.com and Pantera Capital, among others. As of this writing, the impact on affected businesses appears largely non-devastating, although details vary.

The SEC is pushing back the decision deadline on the ARK 21Shares Spot Bitcoin ETF to January 2023

The wait for a decision on ARK 21Shares' Spot Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC) continues. The regulator has pushed back its decision deadline to January 27, 2023 on a rule change that would allow the mainstream Bitcoin product to be listed. The Commission has already twice postponed its decision on this particular product. Numerous Bitcoin ETFs have been rejected by the SEC in the past.

Winner and Loser

Bitcoin at the end of the week (Bitcoin) is at $16,577ether (ETH) at $1,205 and XRP at $0.38. The total market capitalization is at $828.34 Billion, according to to CoinMarketCap.

Among the many high 100 cryptocurrencies, the highest three altcoin gainers of the week are Belief Pockets Token (TWT) at 93.40%, GMX (GMX) at 20.40% and Toncoin (TON) at 18.41%.

The highest three altcoin losers of the week are Casper (CSPR) at -20.66%, Solana (SOL) at -20.25% and Cronos (CRO) at -18.58%.

For extra data on crypto costs, see Cointelegraph's Market Evaluation.

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Regardless of the dangerous fame, NFTs is usually a pressure for good

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This is the way you make - and lose - a fortune on NFTs

Most Memorable Quotes

"In programs the place there is no such thing as a self-custody, stewards accumulate an excessive amount of energy and might then abuse that energy."

Michael Saylor, CEO of MicroStrategy

"Never in my career have I seen such a complete failure of corporate controls and a complete lack of trustworthy financial information as here."

John Ray III, new CEO of FTX

“I repeat… EXIT ALL MARKETS”

Il Capo Of Crypto, independent cryptocurrency trader and analyst

"Everything would be ~70% fixed now if I hadn't done that [filed for Chapter 11 bankruptcy]. […] But instead I submitted and those in charge are trying to burn everything down out of shame.”

Sam Bankman-Fried, former CEO of FTX

"I'm sure there are likely multiple players that will be affected […] in the following weeks, you know, small, large - but I would say [FTX] in terms of magnitude, one of the larger ones will be before the whole cycle really ends.”

CK Zheng, co-founder of ZX Squared Capital

“To date, efforts by billionaire crypto brethren to prevent meaningful legislation by flooding Washington with millions of dollars in campaign contributions and lobbying spending have been successful.”

Brad Sherman, United States Congressman

forecast of the week

Bitcoin Price Could Still Drop 40% After FTX's 'Lehman Moment' - Analysis

Bitcoin fell below $16,000 earlier in the week. The asset subsequently rallied back to $17,000, only to face multiple rejections around that level throughout the week, according to Cointelegraph's BTC price index.

Due to the FTX situation, QCP Capital now expects BTC could potentially drop to $12,000 according to its Elliot Wave Theory chart analysis.

"This underperformance of all crypto assets will continue until most of the uncertainty is cleared - probably just before the turn of the year," QCP said on Telegram.

FUD of the week

Crypto.com accidentally sends 320,000 ETH to Gate.io and gets funds back days later

Speculation about Crypto.com's health and solvency reached a boiling point this week after the digital asset exchange sent 340,000 ETH to Gate.io. The transfer has been flagged as suspicious by some members of the crypto community as it occurred around the time exchanges were releasing reserve statements following the FTX collapse. Crypto.com claims that 100% of user-owned cryptocurrencies are kept in cold storage, so the transfer to Gate.io has been confusing for some crypto sniffer dogs. Crypto.com CEO Kris Marszalek later revealed that the funds were accidentally sent to Gate.io.

Huobi and Gate.io under fire for allegedly sharing snaps with borrowed funds

Speaking of Gate.io, it came under fire along with crypto exchange Huobi for allegedly sharing outdated snapshots of its digital asset stash that included borrowed funds. Apparently, some investors were suspicious that Gate.io received a top-up from Crypto.com before it released its proof of reserve. However, Gate.io founder Lin Han revealed that the snapshot in question was taken on Oct. 19, two days before Crypto.com accidentally transferred 240,000 ETH. Huobi, meanwhile, has yet to explain why it transferred 10,000 ETH to Binance and OKX wallets shortly after the release of his snap.

FTX Crisis Could Extend Crypto Winter To Late 2023: Report

The 2022 bear market was unlike anything we've ever seen in crypto, with the collective failures of Terra (LUNA), Celsius, Voyager, FTX and BlockFi still reverberating across the industry. According to new research from Coinbase, the FTX collapse and resulting contagion effects could extend the crypto winter by another year. "The unfortunate events surrounding FTX have undoubtedly damaged investor confidence in the digital asset class," the report said. “It will take time to fix and very likely this could extend the crypto winter by several months, perhaps to the end of 2023 in our view.”

Best Cointelegraph Features

Blockchain and the growing plastic problem worldwide

"People are being urged to make changes to mitigate climate change, but I can't pull a molecule of CO2 out of the air and show you."

Designing the metaverse: location, location, location

"People think of it like a second life... in the virtual world, people can have a better virtual house than others."

Banks continue to show interest in digital assets and DeFi amid market chaos

Traditional financial institutions continue to demonstrate use cases for supporting digital assets along with DeFi capabilities, despite the current market conditions.

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editorial staff

Cointelegraph Magazine writers and reporters contributed to this article.

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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 20, 2023
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