Come every Saturday, Hodler’s Digest will help you keep track of every important news story happening this week. The best (and worst) quotes, adoption and regulatory highlights, leading coins, predictions, and more – a link to the week on Cointelegraph.
headlines of the week
SBF Secures $1 Billion Personal Loan From Alameda: FTX Bankruptcy Files
Documents related to FTX’s bankruptcy proceedings reveal that the company was mismanaged on multiple levels. According to reports, the FTX Group consists of multiple companies divided into four silos. Former FTX CEO Sam Bankman-Fried reportedly took a $1 billion personal loan from one of the silos. The document also revealed many other vulnerabilities and oddities related to FTX functionality. Several regulators are reportedly investigating FTX, including the Bahamas Securities Commission. The U.S. self-regulatory organization Financial Industry Regulatory Authority has also launched a broader investigation of companies involved in cryptocurrencies in general, assessing their communications with the retail public.
Binance creates industry recovery fund to help projects struggling with liquidity
Binance CEO Changpeng Zhao unveiled his new fund efforts to help the struggling crypto industry — which was negatively impacted by the FTX drop. In a Nov. 14 tweet, the CEO said Zhao’s new fund hopes to help by assisting “powerful” crypto industry companies with liquidity issues. Such companies should contact Binance Labs, as well as participants wishing to increase capital to the fund. However, as Zhao pointed out, the fund will not be used to help FTX.
How to Prepare for the End of the Bull Market, Part 1: Timing
Conquering the ‘last bastion’: Anxiety and anger as NFTs claim high cultural status
New York Fed launches 12-week CBDC pilot program with major banks
Over the next three months, the New York Fed Innovation Center will work with several banking giants to test a simulated central bank digital currency (CBDC) system. Citigroup, PNC Bank, BNY Mellon, Wells Fargo and others will process simulated tokenized currencies through a distributed ledger and settle against simulated central bank reserves.
FTX’s recent debacle has affected the entire cryptocurrency space in a number of ways — from heightened regulation to companies whose assets are trapped in FTX. More than 10 companies reported that they felt the negative effects of the FTX test, often losing millions of dollars. Companies include Galaxy Digital, Sequoia Capital, BlockFi, Crypto.com, and Pantera Capital, among others. At this stage, the impact on affected companies does not appear to be largely devastating, although details vary.
Awaiting the SEC’s decision on ARK 21Shares’ spot bitcoin exchange-traded fund (ETF). The regulator has pushed back the deadline for its decision to Jan. 27, 2023, on rule changes that would allow mainstream bitcoin offerings to go public. The committee has delayed a decision on this particular product twice before. Many bitcoin ETFs have faced rejection from the SEC in the past.
winners and losers
On weekends, bitcoin (bitcoin) exist $16,577Ether (Ethereum) exist $1,205 and Ripple exist $0.38. The total market capitalization is $828.34 billion, according to to CoinMarketCap.
Among the largest 100 cryptocurrencies, this week’s top 3 altcoin winners are Trust Wallet Token (Taiwan) At 93.40%, GMX (GMX) 20.40% and Toncoin (Ton) was 18.41%.
The top 3 altcoin losers of the week are Casper (CSPR) -20.66%, Solana (sun) -20.25% and Cronos (Contract Research Organization) At -18.58%.
For more on cryptocurrency prices, be sure to read Cointelegraph’s market analysis.
Despite a bad rap, NFTs can be a force for good
Here’s how to make and lose wealth with NFTs
most memorable quote
“In a system without self-custody, custodians accumulate too much power, which they can then abuse.”
“Never in my career have I witnessed such a complete failure of corporate controls, and such a complete lack of trustworthy financial information.”
“I repeat… get out of all markets”
“If I didn’t do that, everything would be about 70% fixed now [filed for Chapter 11 bankruptcy]. […] But instead, I filed the application, and whoever is in charge of it is trying to burn it all out of disgrace. “
“I’m sure there are a lot of players that could be affected […] Over the next few weeks, you know, little ones, big ones – but I’ll say [FTX] It will be one of the bigger ones in terms of magnitude before the whole cycle really ends. “
“Billionaire Crypto Brothers’ efforts to block meaningful legislation by funneling millions of dollars in campaign contributions and lobbying spending to Washington have so far been effective.”
forecast for the week
Bitcoin fell below $16,000 earlier this week. The asset then rallied back to $17,000, according to Cointelegraph’s BTC Price Index, but faced rejection around that level several times throughout the week.
Due to the situation at FTX, QCP Capital now predicts that BTC could drop to $12,000 based on its Elliot Wave theoretical chart analysis.
“The underperformance of all crypto assets will persist until most of the uncertainty disappears — probably only at the beginning of the new year,” QCP said on Telegram.
FUD of the week
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 was flagged as suspicious by some members of the crypto community because it happened at a time when the exchange was releasing proof of reserves following the FTX crash. Crypto.com claims that 100% of user-owned cryptocurrencies are kept in cold storage, so the transfer to Gate.io has confused some crypto sleuths. 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 Snapshots Using Loan Funds
Speaking of Gate.io, it and cryptocurrency exchange Huobi have come under fire for allegedly sharing outdated snapshots of their digital asset reserves, including lending funds. Apparently, some investors suspected that Gate.io had received deposits from Crypto.com before publishing its proof of reserves. However, Gate.io founder Lin Han revealed that the snapshot was taken on October 19, two days before Crypto.com accidentally transferred 240,000 ETH. Meanwhile, Huobi has yet to explain why it transferred 10,000 ETH to Binance and OKX wallets shortly after publishing the snapshot.
FTX Crisis May Extend Crypto Winter to End of 2023: Report
The 2022 bear market is unlike anything we’ve seen in the cryptocurrency space, 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 crash and its resulting contagion effects could prolong the crypto winter for another year. “The unfortunate events surrounding FTX have undoubtedly damaged investor confidence in the digital asset class,” read the report. “Remediation will take time, and it is likely that this could prolong the crypto winter for a few more months, which we believe could last until the end of 2023.”
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