FTX bankruptcy filing details, Binance’s crypto industry fund and a U.S. CBDC pilot: Hodler’s Digest, Nov. 13-19

Coming each Saturday, Hodler’s Digest will assist you monitor each single necessary information story that occurred this week. The finest (and worst) quotes, adoption and regulation highlights, main cash, predictions and far more — a week on Cointelegraph in a single hyperlink.

Top Stories This Week

SBF obtained $1B in private loans from Alameda: FTX bankruptcy filing

Documentation associated to FTX’s bankruptcy proceedings revealed the agency was mismanaged on a number of ranges. FTX Group was reportedly composed of a number of corporations categorized into 4 silos. A $1 billion private mortgage was reportedly allotted to former FTX CEO Sam Bankman-Fried from a type of silos. The documentation additionally revealed many different holes and oddities referring to the operate of FTX. Several regulators are reportedly wanting into FTX, together with the Securities Commission of the Bahamas. The Financial Industry Regulatory Authority, a self-regulatory U.S. group, has additionally opened a broader investigation into crypto-involved corporations normally, evaluating their communications with the retail public.

Binance creates industry restoration fund to assist tasks combating liquidity

Binance CEO Changpeng Zhao unveiled his work on a new fund to assist the struggling crypto sector — a sector which has been negatively affected by the autumn of FTX. Zhao’s new fund seems to be to assist by aiding “strong” crypto industry corporations which have liquidity points, the CEO stated in a Nov. 14 tweet. Such corporations ought to attain out to Binance Labs, in addition to gamers wanting so as to add capital to the fund. The fund is not going to go towards serving to FTX, nevertheless, as specified by Zhao.

NY Fed launches 12-week CBDC pilot program with main banks

For the subsequent three months, the Federal Reserve Bank of New York’s Innovation Center will take a look at a simulated central financial institution digital forex (CBDC) system with the cooperation of a number of banking behemoths. Citigroup, PNC Bank, BNY Mellon, Wells Fargo and others will transact simulated tokenized cash by way of a distributed ledger, settled towards simulated central financial institution reserves.

The FTX contagion: Which corporations had been affected by the FTX collapse?

The latest downfall of FTX has impacted the general crypto area in a number of methods — from elevated regulatory watch to corporations having property caught with FTX. More than 10 corporations have reported having felt destructive results from the FTX ordeal, typically with thousands and thousands of {dollars} in jeopardy. Companies embrace Galaxy Digital, Sequoia Capital, BlockFi, Crypto.com and Pantera Capital, amongst others. At this stage, the impacts on the affected corporations don’t look like devastating for probably the most half, though the small print fluctuate.

SEC pushes deadline to resolve on ARK 21Shares spot Bitcoin ETF to January 2023

The wait continues for a choice on ARK 21Shares’ spot Bitcoin exchange-traded fund (ETF) from the United States Securities and Exchange Commission (SEC). The regulator has pushed its choice deadline to Jan. 27, 2023 relating to a rule change that will enable itemizing of the mainstream Bitcoin product. The fee has delayed its choice twice earlier than on this explicit product. Numerous Bitcoin ETFs have confronted denials from the SEC up to now.

Winners and Losers

At the tip of the week, Bitcoin (BTC) is at $16,577, Ether (ETH) at $1,205 and XRP at $0.38. The complete market cap is at $828.34 billion, based on CoinMarketCap.

Among the largest 100 cryptocurrencies, the highest three altcoin gainers of the week are Trust Wallet Token (TWT) at 93.40%, GMX (GMX) at 20.40% and Toncoin (TON) at 18.41%.

The high three altcoin losers of the week are Casper (CSPR) at -20.66%, Solana (SOL) at -20.25% and Cronos (CRO) at -18.58%.

For extra data on crypto costs, make certain to learn Cointelegraph’s market evaluation.

Most Memorable Quotations

“In systems where there is no self-custody, the custodians accumulate too much power and then they can abuse that power.”

Michael Saylor, govt chairman of MicroStrategy

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”

John Ray III, new CEO of FTX

“I repeat… EXIT ALL THE MARKETS”

Il Capo Of Crypto, unbiased cryptocurrency dealer and analyst

“Everything would be ~70% fixed right now if I hadn’t [filed for Chapter 11 bankruptcy]. […] But instead I filed, and the people in charge of it are trying to burn it all to the ground out of shame.”

Sam Bankman-Fried, former CEO of FTX

“I’m sure there are multiple players that will probably get impacted […] in the following weeks, you know, small, large — but I would say [FTX] in terms of magnitude will be one of the larger ones before the whole cycle really ends.”

CK Zheng, co-founder of ZX Squared Capital

“To date, efforts by billionaire crypto bros to deter meaningful legislation by flooding Washington with millions of dollars in campaign contributions and lobbying spending have been effective.”

Brad Sherman, United States Congressman

Prediction of the Week 

Bitcoin value should drop 40% after FTX ‘Lehman moment’ — Analysis

Bitcoin fell under $16,000 early within the week. The asset subsequently rallied again to $17,000, solely to face rejection across the degree on a number of events all through the week, based on Cointelegraph’s BTC value index. 

Due to the FTX scenario, QCP Capital now expects that BTC could probably fall to $12,000, based on its Elliot Wave idea chart evaluation. 

“This underperformance of all crypto assets is here to stay until the bulk of uncertainty has cleared up — likely only near the turn of the new year,” QCP stated on Telegram.

FUD of the Week 

Crypto.com by chance sends 320k ETH to Gate.io, recovers funds days after

Speculation in regards to the well being and solvency of Crypto.com reached a boiling level this week after the digital asset alternate despatched 340,000 ETH to Gate.io. The switch was flagged as suspicious by some members of the crypto neighborhood as a result of it occurred across the time that exchanges had been publishing proof-of-reserves within the wake of FTX’s collapse. Crypto.com claims that 100% of user-owned cryptocurrencies are held in chilly storage, so the switch to Gate.io was complicated to some crypto sleuths. Crypto.com CEO Kris Marszalek later revealed that the funds had been despatched to Gate.io by chance.

Huobi and Gate.io underneath fireplace for allegedly sharing snapshots utilizing loaned funds

Speaking of Gate.io, it together with crypto alternate Huobi has been underneath fireplace for allegedly sharing outdated snapshots of its digital asset reserves that included loaned funds. Obviously, some traders had been suspicious that Gate.io obtained a top-up from Crypto.com earlier than publishing its proof-of-reserves. However, Gate.io founder Lin Han revealed that the snapshot in query was taken on Oct. 19, two days earlier than Crypto.com by chance transferred 240,000 ETH. Huobi, in the meantime, has but to elucidate why it transferred 10,000 ETH to Binance and OKX wallets quickly after releasing its snapshot.

FTX disaster may lengthen crypto winter to the tip of 2023: Report

The 2022 bear market has been in contrast to something we’ve ever seen in crypto, with the collective failures of Terra (LUNA), Celsius, Voyager, FTX and BlockFi nonetheless reverberating throughout the industry. According to new analysis from Coinbase, the FTX collapse and its ensuing contagion results may lengthen crypto winter for an additional 12 months. “The unfortunate events surrounding FTX have undoubtedly damaged investor confidence in the digital asset class,” the report learn. “Remediation will take time, and very likely this could extend crypto winter by several more months, perhaps through the end of 2023 in our view.”

Best Cointelegraph Features

Blockchain and the world’s rising plastic drawback

“People are being asked to make changes to help mitigate climate change, but I can’t pull a CO2 molecule from the air and show it to you.”

Designing the metaverse: Location, location, location

“People imagine this as a second life… in the virtual world, people can have a better virtual house than others.”

Banks nonetheless present curiosity in digital property and DeFi amid market chaos

Traditional monetary establishments proceed to display use circumstances for digital asset help, together with DeFi capabilities, regardless of present market situations.