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 volition assistance you way each azygous important quality communicative that happened this week. The champion (and worst) quotes, adoption and regularisation highlights, starring coins, predictions and overmuch much — a week connected Cointelegraph successful 1 link.

Top Stories This Week

SBF received $1B successful idiosyncratic loans from Alameda: FTX bankruptcy filing

Documentation related to FTX’s bankruptcy proceedings revealed the steadfast was mismanaged connected aggregate levels. FTX Group was reportedly composed of aggregate companies categorized into 4 silos. A $1 cardinal idiosyncratic indebtedness was reportedly allocated to erstwhile FTX CEO Sam Bankman-Fried from 1 of those silos. The documentation besides revealed galore different holes and oddities relating to the relation of FTX. Several regulators are reportedly looking into FTX, including the Securities Commission of the Bahamas. The Financial Industry Regulatory Authority, a self-regulatory U.S. organization, has besides opened a broader probe into crypto-involved companies successful general, evaluating their communications with the retail public.

Binance creates manufacture betterment money to assistance projects struggling with liquidity

Binance CEO Changpeng Zhao unveiled his enactment connected a caller money to assistance the struggling crypto assemblage — a assemblage which has been negatively affected by the autumn of FTX. Zhao’s caller money looks to assistance by assisting “strong” crypto manufacture companies that person liquidity issues, the CEO said successful a Nov. 14 tweet. Such companies should scope retired to Binance Labs, arsenic good arsenic players looking to adhd superior to the fund. The money volition not spell toward helping FTX, however, arsenic specified by Zhao.

NY Fed launches 12-week CBDC aviator programme with large banks

For the adjacent 3 months, the Federal Reserve Bank of New York’s Innovation Center volition trial a simulated cardinal slope integer currency (CBDC) strategy with the practice of aggregate banking behemoths. Citigroup, PNC Bank, BNY Mellon, Wells Fargo and others volition transact simulated tokenized wealth via a distributed ledger, settled against simulated cardinal slope reserves.

The FTX contagion: Which companies were affected by the FTX collapse?

The caller downfall of FTX has impacted the wide crypto abstraction successful aggregate ways — from accrued regulatory ticker to companies having assets stuck with FTX. More than 10 companies person reported having felt antagonistic effects from the FTX ordeal, often with millions of dollars successful jeopardy. Companies see Galaxy Digital, Sequoia Capital, BlockFi, Crypto.com and Pantera Capital, among others. At this stage, the impacts connected the affected companies bash not look to beryllium devastating for the astir part, though the details vary.

SEC pushes deadline to determine connected ARK 21Shares spot Bitcoin ETF to January 2023

The hold continues for a determination connected ARK 21Shares’ spot Bitcoin exchange-traded money (ETF) from the United States Securities and Exchange Commission (SEC). The regulator has pushed its determination deadline to Jan. 27, 2023 regarding a regularisation alteration that would let listing of the mainstream Bitcoin product. The committee has delayed its determination doubly earlier connected this peculiar product. Numerous Bitcoin ETFs person faced denials from the SEC successful the past.

Winners and Losers

At the extremity of the week, Bitcoin (BTC) is astatine $16,577, Ether (ETH) astatine $1,205 and XRP astatine $0.38. The full marketplace headdress is astatine $828.34 billion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the apical 3 altcoin gainers of the week are Trust Wallet Token (TWT) astatine 93.40%, GMX (GMX) astatine 20.40% and Toncoin (TON) astatine 18.41%.

The apical 3 altcoin losers of the week are Casper (CSPR) astatine -20.66%, Solana (SOL) astatine -20.25% and Cronos (CRO) astatine -18.58%.

For much info connected crypto prices, marque definite to work Cointelegraph’s marketplace analysis.

Most Memorable Quotations

“In systems wherever determination is nary self-custody, the custodians accumulate excessively overmuch powerfulness and past they tin maltreatment that power.”

Michael Saylor, enforcement president of MicroStrategy

“Never successful my vocation person I seen specified a implicit nonaccomplishment of firm controls and specified a implicit lack of trustworthy fiscal accusation arsenic occurred here.”

John Ray III, caller CEO of FTX

“I repeat… EXIT ALL THE MARKETS”

Il Capo Of Crypto, autarkic cryptocurrency trader and analyst

“Everything would beryllium ~70% fixed close present if I hadn’t [filed for Chapter 11 bankruptcy]. […] But alternatively I filed, and the radical successful complaint of it are trying to pain it each to the crushed retired of shame.”

Sam Bankman-Fried, erstwhile CEO of FTX

“I’m definite determination are aggregate players that volition astir apt get impacted […] successful the pursuing weeks, you know, small, ample — but I would accidental [FTX] successful presumption of magnitude volition beryllium 1 of the larger ones earlier the full rhythm truly ends.”

CK Zheng, co-founder of ZX Squared Capital

“To date, efforts by billionaire crypto bros to deter meaningful authorities by flooding Washington with millions of dollars successful run contributions and lobbying spending person been effective.”

Brad Sherman, United States Congressman

Prediction of the Week 

Bitcoin terms whitethorn inactive driblet 40% aft FTX ‘Lehman moment’ — Analysis

Bitcoin fell beneath $16,000 aboriginal successful the week. The plus subsequently rallied backmost to $17,000, lone to look rejection astir the level connected aggregate occasions passim the week, according to Cointelegraph’s BTC terms index. 

Due to the FTX situation, QCP Capital present expects that BTC whitethorn perchance autumn to $12,000, according to its Elliot Wave mentation illustration analysis. 

“This underperformance of each crypto assets is present to enactment until the bulk of uncertainty has cleared up — apt lone adjacent the crook of the caller year,” QCP said connected Telegram.

FUD of the Week 

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

Speculation astir the wellness and solvency of Crypto.com reached a boiling constituent this week aft the integer plus speech sent 340,000 ETH to Gate.io. The transportation was flagged arsenic suspicious by immoderate members of the crypto assemblage due to the fact that it occurred astir the clip that exchanges were publishing proof-of-reserves successful the aftermath of FTX’s collapse. Crypto.com claims that 100% of user-owned cryptocurrencies are held successful acold storage, truthful the transportation to Gate.io was confusing to immoderate crypto sleuths. Crypto.com CEO Kris Marszalek aboriginal revealed that the funds were sent to Gate.io accidentally.

Huobi and Gate.io nether occurrence for allegedly sharing snapshots utilizing loaned funds

Speaking of Gate.io, it on with crypto speech Huobi has been nether occurrence for allegedly sharing outdated snapshots of its integer plus reserves that included loaned funds. Obviously, immoderate investors were suspicious that Gate.io received a top-up from Crypto.com earlier publishing its proof-of-reserves. However, Gate.io laminitis Lin Han revealed that the snapshot successful question was taken connected Oct. 19, 2 days earlier Crypto.com accidentally transferred 240,000 ETH. Huobi, meanwhile, has yet to explicate wherefore it transferred 10,000 ETH to Binance and OKX wallets soon aft releasing its snapshot.

FTX situation could widen crypto wintertime to the extremity of 2023: Report

The 2022 carnivore marketplace has been dissimilar thing we’ve ever seen successful crypto, with the corporate failures of Terra (LUNA), Celsius, Voyager, FTX and BlockFi inactive reverberating crossed the industry. According to caller probe from Coinbase, the FTX illness and its resulting contagion effects could widen crypto wintertime for different year. “The unfortunate events surrounding FTX person undoubtedly damaged capitalist assurance successful the integer plus class,” the study read. “Remediation volition instrumentality time, and precise apt this could widen crypto wintertime by respective much months, possibly done the extremity of 2023 successful our view.”

Best Cointelegraph Features

Blockchain and the world’s increasing integrative problem

“People are being asked to marque changes to assistance mitigate clime change, but I can’t propulsion a CO2 molecule from the aerial and amusement it to you.”

Designing the metaverse: Location, location, location

“People ideate this arsenic a 2nd life… successful the virtual world, radical tin person a amended virtual location than others.”

Banks inactive amusement involvement successful integer assets and DeFi amid marketplace chaos

Traditional fiscal institutions proceed to show usage cases for integer plus support, on with DeFi capabilities, contempt existent marketplace conditions.