FTX Took Us From Crypto Winter to Nuclear Fallout in 1 Week

0 21
Avatar for cryptocracy
1 year ago

A bombshell dropped on crypto last week. I’m sure you’ve heard the news. Not all of the links in this newsletter are focused on FTX, but the first 14 are. Enjoy!

FTX announced on Veteran’s Day that it was filing for bankruptcy. And 134 FTX-owned subsidiaries along with it. A list of FTX/Alameda investments. The FTX brouhaha last week had a huge impact on crypto and stretched far and wide, so far in fact that Crypto.com suspended USDT and USDC trades on the Solana blockchain. Crypto’s Boy Wonder saw his fortune sink into quicksand, but does that mean the rest of crypto is doomed? Will the SEC get involved? Anthony Pompliano is disappointed and sad. How a community buyout of FTX could work. A post mortemWhat else could FTX do? Its only hope was a bail out from Binance, but it wouldn’t have needed a bail out if CZ hadn’t bailed out to begin with. Since FTX isn’t a bank, there wasn’t a snowball’s chance in Texas of a classic-style bailout from the feds. Remember when SBF said some crypto exchanges are already secretly insolvent? As it turns out, he was talking about his own. Hey crypto bros, when will you learn to quit looking at the wrong hand?

Are central planners suppressing BTC’s price? 3 ways to predict the price of bitcoin.

Crypto.com mishandled a $400 million transaction and withdrawals surged.

In the wake of the FTX scandal, crypto exchange users moved $3 billion into self-custody wallets.

FTX, post-bankruptcy filing, is investing unauthorized transfers.

Coinbase lays off 60 staff members.

Binance CEO Changpeng Zhao (CZ) calls for clear and stable crypto regulations. He also says self-custody is a fundamental human right. And warns to stay away from exchanges that move large amounts of crypto before or after demonstrating wallet addresses. If that’s not all, he says no one can be protected from bad actors.

Solana is down 95 percent from all-time high. A fallout from the FTX scandal. SOL is down 51.5 percent since November 8. With ties to FTX liquidity hub Serum, that’s a big punch to the face. The good news for Solana is a recovery is possible, but it will be an uphill climb.

Affected by the FTX fallout, BlockFi has paused trading activity.

Which states are the most crypto-readyFlorida, Texas, and Illinois are the states most ready for crypto adoption. Just as interesting are the states that are least ready … Vermont, West Virginia, and Montana. The state with the most bitcoin ATMs is Texas but when it comes to the most bitcoin ATM’s per 100,000 people, Rhode Island takes the satoshi. California and New York top the list for the most blockchain startups. This is an awesome read for anyone interested in the state of crypto today.

Source: Invezz

Cryptocurrencies are NOT digital goldThis is a MUST-READ deep dive into crypto valuation, from S&P Global.

Mark Cuban blames the Securities and Exchange Commisssion (SEC) for the FTX crisis. In the mind of Cuban, the SEC should have been all over FTX the same way it was all over Kim Kardashian. His logic makes sense. The commission has been regulating by enforcement for years now, but they are very selective about who they go after. Without clear regulations, it’s a pick-and-choose game. The legislative branch needs to grow a pair and create some clear ground rules for crypto. It can’t be left to the regulatory agencies.

LG is looking for Web3 experts.

5 principles for humanizing the metaverse.

Would you do me a favor and pick the book cover you like best?

My final word is this: Stop chasing rainbows and unicorns. FTX proves one thing: Crypto is full of shysters, hucksters, and flim-flam men (not to be sexist, but it is usually men). Instead of getting pissed off because someone you trusted did something that made you lose a lot of digital wishfuls, quit trusting strangers with lies on their lips. If it’s centralized, question it. If it seems too good to be true, it is. If it’s smooth and makes you feel sexy, don’t bend over. You will regret it. Don’t wait for a crisis to self-custody. Not your keys, not your crypto.

One more thing: Just because they say they’re looking out for you doesn’t mean they are.

Snark and commentary are in italics. Inclusion of an item doesn’t mean I agree or endorse the ideas presented. Of course, it also doesn’t mean I don’t.

Sponsors of cryptocracy
empty
empty
empty

Have you voted yet?

Cryptocracy is a decentralized newsletter published several times a week. I curate the latest news and crypto analysis from some of the brightest minds in crypto, and sometimes offer a little insightful and snarky commentary. Always fresh, always interesting, and always crypto. Original articles on Fridays.

First published at Cryptocracy. Not to be construed as financial advice. Do your own research.

2
$ 0.00
Avatar for cryptocracy
1 year ago

Comments