The Digital Assets Report 93
Summary
Despite the acknowledge bear market, we see more announcement from financial institutions and regulators around the world, moving toward a stronger framework for digital assets to expand.
- Binance sold its FTT ( FTX Token) position following a report about the balance sheet of Alameda Research, a crypto trading firm once run by FTX CEO. Tensions between crypto giants spilled into public view, questioning the solvency of FTX which led to liquidity crunch ant bailout proposal from Binance.
- The Fed raised rates by 0.75% last week as well as Bank of England, its biggest increase in 30 years.
- Systemic banks UBS & JP Morgan are leveraging blockchain technologies by tokenising respectively bonds and cash deposits.
- NFT industry continue to attract major art collectors and foundations into its digital art transformation while Instagram reveals full NFT integration.
- Another week, another hack. A leaked private key from the Github ( open source code repository ) caused a change of ownership in the compromised smart contract 70 days prior, revealing the negligence of audits during months. This led to 12,977 BNB , roughly $4.5 mio.
To watch
- US CPI inflation data for October. Thursday, November 11 at1:30pm
- Token2049 - London, November 9-10
Business
The Collapse of the FTX Empire
We’ll talk about elections next week.
Nikhilesh De
Billions Withdrawn From FTX, Nodes Hit Capacity, CZ Announces Divorce
“Get your funds out of FTX. This is financial advice,” so says Ran Neuner, who describes himself as a “CNBC
Trustnodes News
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
Fidelity, ForUsAll now offering 401(k) investors access to cryptocurrency
Fidelity Investments and ForUsAll appear to be the first 401(k) administrators to offer workers access to cryptocurrency.
UBS AG launches digital bond settled on blockchain and traditional exchanges
The digital bond has the same instrument structure, legal status and rating as a traditional UBS AG senior unsecured note, said the bank.
Ana Paula Pereira
JPMorgan Trade on Public Blockchain ‘Monumental Step’ for DeFi
JPMorgan has used public blockchain Polygon to trade tokenized cash deposits — the latest example of banks exploring decentralized finance.
Ornella Hernandez
Circle Begins Putting Reserves Into New BlackRock Fund
The assets backing Circle Internet Financial’s USDC will finish moving into an SEC-regulated money market fund early next year.
Jesse Hamilton
Report: GALA token exploit resulted from public leak of private key on GitHub
Over $2 billion worth of extra tokens were minted in the exploit.
Zhiyuan Sun
Twitter slashes nearly half its workforce as Musk admits ‘massive drop’ in revenue
Claims that the social media platform’s entire curation team was dismissed prompts fears content could become ‘more toxic’
Dominic Rushe
OpenSea creates tool to help NFT collections enforce royalties on-chain
The code to which it is giving creators access restricts NFT sales to marketplaces that enforce creator fees.
A New Blockchain Company From Art Basel and the Luma Foundation Gives Artists and Galleries the Chance to Benefit From Skyrocketing Resale Prices
Meta Pins Web3 Hopes on Instagram Creators Minting NFTs
A new Instagram NFT offering from Meta won’t include service fees until 2024, and the tech giant will cover any gas costs for the time being.
Ornella Hernandez
Markets
Crypto Charts 86
Bitcoin As mentioned last week I will: ‘remain bearish on BTC and whilst below $25′220 I will keep this view’ I have gone back to the hourly chart to show the possible completion of wave (iv) at the last run up to $21′466. A break of that level will mean
Bitcoin, Ether Slide as Protective Puts Draw Demand Amid Sell-Off in FTX’s Token
Options market tied to bitcoin and ether shows renewed bias for puts, perhaps a sign of investor fears that the FTX-Alameda drama may bring another market-wide crash.
Omkar Godbole
Regulation
CBDCs May Need Global Regulation, EU Commissioner Says
Paolo Gentiloni says a series of international agreements may be needed to stop state-backed digital currencies from infringing on countries’ sovereignty.
Jack Schickler
EU Delays Vote on MiCA Crypto Legislation Until February
Technical issues in the lengthy text could delay the start of the licensing regime set out in the Markets in Crypto Assets regulation.
Jack Schickler
Countries ignoring crypto AML rules risk placement on FATF’s ‘grey list’ — Report
The Financial Action Task Force is reportedly conducting annual checks on countries to ensure anti-money laundering rules are being applied to its crypto providers.
Stephen Katte
Singapore leverages Polygon and Aave in first DeFi wholesale markets transaction
The live trade is the first of Singapore’s Project Guardian pilot, which aims to explore the potential of DeFi applications in wholesale funding markets.
Opinions
At Stake in the US Midterms: The Future of Money
With some seminal regulatory legislation up for consideration, the makeup of Congress in 2023 matters not only to crypto natives but to everyone.
Michael J. Casey