Biggest cryptoverse news for Nov. 10 includes SBF planning to raise funds to bail out FTX and make users whole, SEC Chairman Gary Gensler arguing for greater investor protections after FTX collapse , and Sequoia Capital writing off its over $200 million investment in FTX as worthless.
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According to leaked slack messages allegedly sent to FTX employees, Sam Bankman Fried plans to raise more funds to reimburse customers and investors affected by the collapse.
Venture capital firm Sequoia previously invested around $63.5 million in FTX and FTX US before the crypto exchange began to struggle.
In the light of the FTX collapse, Sequoia notified its investors that it was writing off more than $200 million in bad debt to FTX.
FTX’CEO Sam Bankman Fried (SBF) in a November 10 tweet, he apologized for exceeding the user deposit margin, which caused FTX to collapse. As a result, FTX had a higher asset value than user deposits.
SBF said it was exploring all possible options to raise funds and liquidate existing collateral to reimburse users affected by the collapse.
Crypto Markets Tumbled as Stablecoins Supply Dries Up, Curve 3pool Concentrated by USDT, 60k BTC Leaves Binance, Alameda Shorts USDT
Following reports that Binance pulled out of the FTX economy due to an $8 billion hole in FTX’s balance sheet, Binance released its proof of assets, which revealed that Binance held around $18.3 billion in assets in its stash
However, the collapse of FTX poses liquidity problems for stablecoins. The Curve 3 pool has become unbalanced as USDT, DAI and USDC balances have adjusted to 84%, 8% and 8% respectively. Rumors also emerged that FTX’s Alameda was looking to sell around $550,000 worth of USDT.
With growing fear, uncertainty, and doubt rocking the crypto market, some Bitcoin holders decided to withdraw around 60,000 BTC from the exchanges, indicating a sentiment to sell their assets to avoid further contagion.
Chairman of the Securities and Exchange Commission (SEC) Gary Gensler told CNBC he warned crypto exchanges, including Sam Bankman’s FTX failure to comply with regulatory laws would compromise investor protection.
Gensler reiterated that the best way forward would be for crypto exchanges to be duly registered with regulators, to protect investors and avoid market crashes caused by big players, who “mix” to trade against their clients. .
By design, Solana was supposed to unlock around 18 million FLOOR between November 9 and 10. However, due to the collapse of the FTX ecosystem, Solana postponed the unlock date to November 12, in order to reduce the selling pressure on Solana’s struggling token (SOL).
Counterintuitively, staking unlocks for Solana developers were completed today, which saw around 353,687 SOL tokens launched into the market.
The November 9 FTX collapse saw Bitcoin fall to a 103-week low of around $15,600. Less than 24 hours later, Bitcoin jumped 7.5% to trade at $17,800 in response to the October Consumer Price Index (CPI) data release.
The market had been expecting a report of around 7.9% higher inflation, however, October CPI data showed inflation standing at 7.7% YoY.
krakenthe founder Jesse Powell in response to FTX’s collapse, said the crypto community, while open-minded and confident, should adopt strict standards for vetting crypto projects before promoting them.
Powell called on venture capitalists to be strict with their due diligence process before backing any project and approving them to the public.
Kraken’s chairman added that US regulators must provide a clear regulatory framework for crypto firms to operate and offer their services in a supervised manner.
On-chain data analyzed by CryptoSlate revealed that between November 2021 and November 2022, Sam Bankman-Fried’s Alameda Research transferred approximately $49 billion worth of tokens to FTX, of which over $4.2 billion was reportedly sent in September 2022.
According to the chart, Alameda reportedly received around $25 billion in stablecoins and altcoins, including $7.1 billion from FTX and over $15.5 billion from Binance wallets.
According to on-chain data, Binance played the middleman to facilitate funds transfers between Alameda and FTX, which caused the 9/11 Crypto Market collapse.
Many economists consider the M2 money supply (which includes cash and check deposits, savings deposits and money market securities) to be a better measure of inflation than M1, which is used to track the index of consumer prices (CPI).
According to October CPI data, inflation stands at 8%, while the M2 figure is above 25%. Many consumers believe that inflation could approach the 25% mark set by M2.
Furthermore, the M2 figure is attracting increasing interest from crypto analysts as it tracks Bitcoin price performance.
According to the chart, during the periods 2015, 2019 and 2022, the M2 figure witnessed a decline, which coincided with a drop in the price of Bitcoin. Therefore, the global M2 becomes a metric that plays a key role in determining the price movement of Bitcoin.
Tron to assist FTX
FTX has announced that it is working with Tron to allow holders of TRX, BTT, JST, SUN and HT tokens to exchange their assets 1:1 to external wallets.
For the first installment, approximately $13,000,000 in assets will be available for withdrawal with plans to roll out more assets in the coming weeks.
Iranian companies trade around $8 billion via Binance
Reuters reported that major crypto exchange Binance allegedly facilitated transitions worth $7.8 billion from Iranian companies sanctioned by the US government.
The funds flowed between Binance and Iran’s largest crypto exchange, Nobitex, using the Tron cryptocurrency to cancel their on-chain identity.
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