Category: bitcoin

The bearish momentum looks overdone, according to Lucas Outumuro, head of research at IntoTheBlock. Previous bear markets ended with the majority of addresses being out of-the money. The percentage of out-of-the-money addresses stood at 55% in January 2019. Bitcoin bottomed near $3,200 around the same time and began a bull run three months later. Further reading: Silence From Digital Currency Group’s Genesis Spooks Crypto

The filing goes on to state that, originally, it was thought that there were “over one hundred thousand creditors in these Chapter 11 Cases.” It then states that, “in fact, there could be more than one million creditors,” meaning that FTX could owe money to more than a million people, the vast majority of whom are customers and former customers. The filing is an attempt to consolidate and simplify the bankruptcy process; as noted in an earlier filing, FTX operated a highly complex corporate structure with dozens of companies, each of which filed for bankruptcy separately last week. The fate of customers’ money is still up-in-the-air as FTX halted withdrawals last week. According to the Wall Street Journal, FTX founder Sam Bankman-Fried thinks he can raise enough money to make users whole. “Mr. Bankman-Fried, alongside a few remaining employees, spent the past weekend calling around in search of commitments from investors to plug a shortfall of up to $8 billion in the hopes of repaying FTX’s customers,” WSJ reports. “The efforts to cover that shortfall have so far been unsuccessful.”

The new page emphasizes customer safety. It provides a two-sentence explanation of what “crypto assets” are, plus a vocabulary list, and warns that: “Even when there are no scams involved, crypto assets can be risky, especially if you don’t have enough information to make sound judgments about how you’re spending your money.”

Aside from that, the page concentrated on scams, red flags and how to “stay safe.” That information is concise but complete. It reminded the reader of the limit legal recourse available if problems arise with a cryptocurrency purchase, but gave detailed instructions on how and where to file a complaint. Besides explaining what a rug pull and pig butchering are, the guide reminded readers that celebrities are paid for what they say about crypto and that the wise buyer does not fall for Fear of Missing Out.

At this time, withdrawals from BlockFi continue to be paused. We also continue to ask clients not to submit any deposits to BlockFi Wallet or Interest Accounts.” Reuters has a list of some firms who have given information about their exposure to FTX.

FTX and Alameda Trading are in trouble. If they hold large amounts of SOL, they are very likely to exit those positions, which will tank SOL price. CoinDesk reported on Nov. 2 that Alameda had $292 million in SOL and $863 million in locked SOL (on the Solana blockchain, large holders can earn more by backing the blockchain’s validators by committing not to sell — or locking — for a certain period of time). “People are dumping already — self-fulfilling prophecy,” Economics Design’s Lisa Jy Tan told Axios over Twitter DM. Tomorrow, the entities verifying the Solana blockchain have already publicly indicated their intention to unlock about a billion dollars worth of SOL (at current prices), about 17% of its market cap. It’s reasonable to expect they might intend to sell.

Solana’s fall has put stress on one of its leading decentralized finance applications, Solend, a money market that works much like Ethereum’s Compound. Solend is gradually unwinding a single, almost $30 million USDC (stablecoin) loan, collateralized by SOL, which is falling fast while the protocol tries to sell. Much like SOL’s price, the total value locked (TVL) in various DeFi projects on Solana has fallen much further in the last day than on other smart contract blockchains, according to DefiLlama. Solana TVL is down 45% over the last day, to $470 million, as of Wednesday afternoon, New York time.

Kwon’s TerraUSD algorithmic stablecoin and sister token Luna suffered a $60 billion wipeout in May as confidence in the project evaporated, exacerbating this year’s crypto meltdown. Hodlnaut’s Hong Kong arm made the near $190 million loss when it offloaded the stablecoin as its claimed dollar peg frayed. In a letter dated July 21, Hodlnaut’s directors “made an about-turn” about the impact and informed a Singapore police department that digital assets had been converted to TerraUSD, according to the report. Much of the latter was lent out on the Anchor Protocol, the report said, a decentralized finance platform developed on the Terra blockchain.

Hodlnaut, which operates out of Singapore and Hong Kong, halted withdrawals in August. The judicial report said more than 1,000 deleted documents from Hodlnaut’s Google workspace could have helped shed light on the business. The judicial managers haven’t been able to obtain several “key documents” in relation to Hodlnaut’s Hong Kong arm, which owes $58.3 million to Hodlnaut Pte in Singapore. About S$776,292 appeared to have been withdrawn by some employees between July and when withdrawals were halted in August, the report stated. Most of the company’s investments into DeFi were made via the Hong Kong division, it added.

The government is expected to flesh out its recently stated goal of creating a top crypto hub at a fintech conference starting Monday. The push comes amid a broader drive to restore Hong Kong’s credentials as a finance center after years of political turmoil and Covid curbs sparked a talent exodus. […] The upcoming regime for listing tokens on retail exchanges is likely to include criteria such as their market value, liquidity and membership of third-party crypto indexes, the people familiar said. That’s similar to the approach for structured products such as warrants, they added. “Introducing mandatory licensing in Hong Kong is just one of the important things regulators have to do,” said Gary Tiu, executive director at crypto firm BC Technology Group Ltd. “They can’t forever effectively close the needs of retail investors.”

Its 70 percent share price drop also makes this the sixth-worst performing debut ETF of its kind of all time, in a test for investors during what has become known as the “crypto winter.” The ETF, known as BITO, has attracted inflows consistently through its life, with only light withdrawals. But even with net inflows of $1.8 billion in its debut year, its assets now stand at $624 million. Taking together the timing of inflows and the 70 per cent drop in the fund’s equity price, Morningstar calculates that BITO has lost $1.2 billion of investors’ money, making this by far the biggest debut loser. Buyers “remained extremely loyal to the long-term thesis for bitcoin,” said Todd Rosenbluth, head of research at consultancy VettaFi.

“The fund has not seen the outflows one would expect given its performance. The pendulum has swung away from certain investment theses this year. Historically it can swing back in favor, but the challenge is whether the asset manager has the confidence to keep the product afloat.”