15/11/2022
Overview 15/11/2022
Good Morning Alternative Crew,
After the fall of FTX, Binance CEO CZ said that the crypto exchange would be providing Proof-of-Reserves to give its users peace of mind, allowing them to see that their capital is locked up and safe. Many exchanges soon followed suit by saying they would do the same.
Now, there are a lot of rumors circulating the space about certain centralized crypto exchanges moving around assets between themselves to provide potentially fraudulent Proof-of-Reserve reports to the public Crypto.com and Gate.io are among the exchanges at the center of the controversy.
Crypto.com accidentally sent 82% of its ETH holdings to Gate.io, and Gate.io soon returned those funds. The transaction was meant to be sent to a new Crypto.com cold wallet. This added fuel to the fire. However, Samczsun came out to debunk claims being made about the whole Proof-of-Reserve debacle.
All we can say is we hope customer funds are indeed safe, and that this is all just FUD.
Market update 🌍
BTC/USDT 1W
The collapse of FTX will have implications beyond its platform users and the weekly BTC chart has begun showcasing weakness across the broader crypto market. BTC formed a bearish engulfing candle, breaking past the $19k support level this week. The bearish engulfing candle is often preceded by further downside especially when backed by increased volume. A highly possible scenario is the test of the $12.5k support level (red) as the Relative Strength Index (RSI) has yet to bottom during the latest move. BTC completed the weekly candle down -21.89% to $16,329.
High-resolution chart below👇
ETH/BTC ratio 1W
Ethereum is holding up relatively well when compared to BTC. It will continue to fall faster than BTC when broader market sell-offs occur but during rallies, ETH has shown a recent trend of outperforming BTC by a considerable amount. The recent sell-off sparked Ether (ETH) to go deflationary by over 5,000 ETH since the Merge. A difference of nearly 700,000 ETH ($840m) would have been issued if Ethereum was still a Proof-Of-Work (PoW) network. The long-term effects of diminishing supply will eventually begin reflecting positively on price when the market begins turning. ETH completed the weekly candle down 0.29% versus BTC.
High-resolution chart below👇
Newswatch 📰
The fall of one of the biggest crypto exchanges around - FTX - has been the talk of the town for the past week. And there have been a lot of developments regarding it. I present to you some of the most important updates below. 👇
- Alameda, FTX executives are said to have known FTX was using customer funds.
- Securities Commission addresses FTX statement on Bahamian withdrawals.
- Sam built a backdoor to bypass FTX compliance systems.
- FTX Trading LTD balance sheet leaked.
-Kraken frozen accounts related to bankrupt FTX group.
-Statement from John Ray, Chief Restructuring Officer and CEO of FTX.
-Jump Crypto says that they remain well capitalized.
-Paradigm marks down FTX investment to zero.
-Paxos froze 11,184.38 PAXG tokens related to FTX valued at roughly $19M.
-Celo Foundation has zero exposure to FTX/Alameda.
-Sam was trying to sell his 7.6% Robinhood share of $472M.
CZ, Binance CEO interview. Watch Binance CEO CZ in his first interview after the collapse of FTX - at Indonesia Fintech Summit 2022.
Newsworthy notes:
-Wintermute discloses holdings to avoid fake news.
-Staking ETH with RocketPool is live on Loopring.
-Mango is forking Serum.
-Tokensoft has doxxed 5k users.
-Are your funds safer in DeFi protocols than on centralized exchanges? And who actually controls the largest projects on Solana?
What's my take?
The crypto space seems scary right now. We have major exchanges collapsing after potentially using customer funds, the controversy surrounding other exchanges’ asset reserve integrity, and a general sense of distrust overall.
We can only hope that things turn around quickly and that no one else has to go through any more of this mess that is enveloping the crypto sphere. We leave you with this great advice from CZ.
CZ 🔶 Binance
CZ 🔶 Binance
FTX aside, avoid businesses/exchanges/projects that:
- are not profitable (musical chairs)
- survive by selling their own tokens
- give high incentives for locking your tokens
- have a large total supply, but only a small circulation supply
- involves loans
Keep a cool head and remember Diamond hands will win the battle!😛
Jono 🖖- Mr Alternative Crypto Network
