🏓 FTX collapse was inevitable
What's new? Genesis hires a restructuring advisor, an NFT platform to strengthen web3 gaming, CoinMarketCap tracks exchanges on proof-of-reserves, and El Salvador prepares new crypto legislation.
Your Favorite Crypto Digest From TradeCrypto.com #175
Daily statistics update:
Today's market is red. BTC is trading above $16,400; ETH is around $1,100.
💪 Bitcoin dominance: 38.60%
📉 Total Cryptocurrency Market Cap: $820.74B
😲 Fear and greed index: 22 (Extreme Fear)
🚀 Gainers (Top-100)
• Curve DAO Token (CRV) +46.20%
• LiteCoin (LTC) +27.28%
• Dash (DASH) +20.96%
😭 Losers (Top-100)
• BinaryX (BNX) -6.15%
• PAX Gold (PAXG) -0.06%
• TrueUSD (TUSD) -0.02%
FTX collapse was inevitable
Glassnode, blockchain data analytics, traced FTX activity well before the red November. You guessed it. Do Kwon's LUNA and the following collapses of crypto lenders such as 3AC and Celsius made holes in the exchange's reserves. To fill the void, Sam decided to bet on users' funds. Glassnode's on-chain data show proof of all speculations, citing it was hard to track the FTX reserves cause they used several intermediate addresses to move funds. Well, the collapse was inevitable. And some might have guessed it's coming. Maybe faith in a white knight mask played its role?
El Salvador prepares a crypto law
Just Bitcoin law is not enough for Nayib Bukele. Now, the country is betting on crypto amidst the crazy cycle. El Salvador, the first place on Earth, declared BTC as a legal tender and is currently working on Digital Asset Issuance Law which will legalize any other crypto. With a big exception of CBDCs and any other foreign-regulated assets. Votes were made, and the new law will work pretty soon.
Genesis hires a restructuring advisor
The company's future is cloudy, and bankruptcy is an option. A story of trapped crypto lenders is repeating itself. 3AC, FTX, and the hardship of finding an investor made Genesis pause withdrawals and open to any possible outcome. Investment bank Moelis is currently helping to find a solution. DCG, the parent company of Genesis, revealed it loaned $575M from Genesis and will pay it back in March 2023. Those numbers may keep Genesis afloat. Will they?
Magic Eden to strengthen blockchain gaming
The NFT platform wants to boost web3 gaming, partnering with Polygon blockchain. By the way, Polygon is the home base for Decentaland, Animoca Brands, Sandbox, and many others. Magic Eden will bring a launchpad feature for game developers, simultaneously seeking to widen the mass adoption and attract brands to the space. Magic Eden has skyrocketed since 2021, and Polygon is famous for bringing brands to the blockchain. Seems like a fruitful alliance.
CoinMarketCap to check on proof-of-reserves
Crypto turmoil touched not only exchanges but data provider websites as well. CMC will provide a proof-of-reserves centralized exchange tracker via the app to tone down the fear. Transparency for all. The data is already available for Bitfinex, KuCoin, and Binance, the website owner. CMC aims to update the info every 5 min, with the help of analytics and the official websites of exchanges as well. This a big step both for users and firms.
Conclusion: Cycle after cycle, the crypto space learns from its mistakes. Be wise not to think this place is full of speculation and fraud. Lying, dishonest people wanting to grab yours will always be everywhere. No exception. Thanks to advanced technology, we're going forward. Focus on builders and choose who you trust. See you.
See you tomorrow, folks! Thanks for being with us.
Brought to you by Maksym, Yana, and Aleksandar :)
Let us know how you would rate today's digest:
What is Crypto Ping Pong digest?
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.
So memes, leaks, gossips naturally come about – we collect them and share them with you in this interstellar space on our site we like to call Crypto Ping Pong digest.