🏓 Binance confirms reserves
Hello and welcome to Crypto Ping Pong Digest! To make you stop yawning, we've put together a selection of hot topics; these include Binance continuing to show its strength against the background of other exchanges, and Sam looking for a way out of a difficult situation
Your Favorite Crypto Digest From TradeCrypto.com #167
Daily statistics update:
Today's market is green. BTC is now trading above $17,300, ETH is trading around $1,250.
💪 Bitcoin dominance: 40.19%
📉 Total Cryptocurrency Market Cap: $ 0.827 tr
😲 Fear and greed index: 25 (Extreme Fear)
🚀 Gainers (Top-100)
• FTX Token (FTT)+21.93%
• Chiliz (CHZ)+21.75%
• Chain (XCN)+19.53%
😭 Losers (Top-100)
• ImmutableX (IMX)-4.35%
• Huobi Token (HT)-3.83%
• Quant (QNT)-2.03%
White House Ramps Up Crypto Regulation Rhetoric Following FTX Crash
Stronger oversight of cryptocurrencies is needed to prevent hurting ordinary American citizens, the White House said, prompted by the news 🚨 of FTX’s debacle. At a press conference, White House Press Secretary Karine Jean-Pierre was asked if regulators should be taking a “harder look” at the crypto world after FTX imploded.
Secretary Karine Jean-Pierre responded that “the most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed.” Secretary Karine Jean-Pierre added that 💬 “without proper oversight of cryptocurrencies, they risk harming everyday Americans.” Quite logical.
Binance shares wallet addresses and activity after proof-of-reserve pledge
Binance published a new page titled “Proof of Assets” on which all details are available of its on-chain activity for its hot and cold wallet addresses. This comes only two days after the initial tweet from CZ on Nov. 8 in which he pledged to create a proof-of-reserve mechanism to ensure “full transparency” to the 👥 community. Binance released an official statement on the new page in which it says it’s the next step in its “commitment to transparency and fostering trust in the ecosystem,” but also that it is only a starting point. Nice work.
FTX Used Client Funds, FTT Tokens, and Robinhood Shares to Prop Up Alameda
Surprise, surprise. After Alameda Research suffered a series of losses in May and June this year, the trading firm’s founder Sam Bankman-Fried set at least $4 💰 billion in FTX funds to Alameda. A portion of these funds reportedly were FTX customer deposits, although their exact value is unclear. Bankman-Fried did not tell other FTX executives about the move, the people said, adding he was afraid this information could leak.
Another chunk of the funds used to prop up Alameda was secured by assets including FTT, the native token of the FTX crypto 💱 exchange, and shares in the trading platform Robinhood, per the report. Bankman-Fried purchased a 7.6% stake in Robinhood back in May.
Coinbase Lays Off Over 60 Employees Amid Crypto Market Turmoil
Again? Coinbase is laying off more than 60 staff in its recruiting and institutional onboarding departments. While not nearly as shocking as Meta’s move to layoff over 11,000 employees a few days ago, Coinbase’s latest round of layoffs is a sign that the exchange may still be trying to cut 💸 costs in the ongoing bear market—a development that barely moves the needle during a week that's overflowing with bad news for the crypto sector. Coinbase’s layoffs also come just five months after the exchange laid off 18% of its staff to prepare for what it said at the time could be an “extended crypto winter.”
BlockFi Pausing Withdrawals in Wake of FTX, Alameda Collapse
Here's the next one. The collapse of FTX continues to reverberate from coast to coast, with New Jersey-based exchange BlockFi—bailed out by FTX in June—notifying customers that it will be "limiting ⛔ platform activity,” and California state regulators announcing a probe.
“We, like the rest of the world, found out about this situation through Twitter,” BlockFi wrote in a letter posted to the social 📲 media site. “We are shocked and dismayed by the news regarding FTX and Alameda.” As a result, platform activity—including withdrawals—will be limited. The firm also discouraged customers from making deposits to hosted wallets and interest accounts.
Tether CTO confirms no plans to rescue FTX
Bad news for FTX. They won’t be getting a bailout from Tether who confirmed it isn’t planning to provide a cash injection despite the CEO reportedly reaching out to multiple firms for help. The CTO of stablecoin issuer Tether, Paolo Ardoino confirmed the company does not have “any plans to invest or lend money to FTX/Alameda.” «Tether does not have any plans to invest or lend money to FTX/Alameda. Full stop.» Ardoino’s 💬 comments came after a report suggested that FTX is now at a $9.4 billion shortfall, with FTX CEO Sam Bankman-Fried reaching out to multiple companies seeking cash to keep the exchange afloat.
Sam Bankman-Fried apologizes for FTX liquidity crisis: ‘I fucked up twice’
And this is all? In one of his first public statements since rumors and concerns about FTX’s insolvency flooded the crypto market, CEO Sam Bankman-Fried, or SBF, has said: “I’m sorry.” In Twitter 🌐 thread, SBF admitted to investors he “should have done better” in providing transparency on the situation with FTX.
The CEO reported that the exchange was experiencing a “liquidity crunch” caused by user withdrawals and requested financial assistance from Binance — a potential deal that later fell apart. According to SBF, the exchange 💱 saw roughly $5 billion in withdrawals on Nov. 6. The total market value of FTX International’s assets was higher than its clients’ deposits, but “the liquidity varies widely, from very to very little.”
Conclusion: The inflation rate is down in the United States. All markets reacted to this news and went up. The euro has become more expensive than the dollar, and stock and crypto are not lagging behind. Crypto rose even in spite of the recent FTX scandal, which is still ongoing and has no predictable ending.
See you tomorrow, folks! Thanks for being with us.
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TC lads here are working quite hard and from time to time we gotta chill. Recently, we got ourselves a ping pong table to complete our lazy-bag-stuffed chill zone. As you all know our main hobby is Crypto, so even while we play we don’t really shut up about it. Ever.
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