The largest information within the cryptoverse for Nov. 11 consists of FTX submitting for chapter as John Ray III takes over from Sam Bankman-Fried as CEO, FTX customers in search of to bypass chapter course of utilizing the “Bahamas loophole”, US Congressman accused SEC Chairman of getting doubtful ties to FTX, and Crypto.com disclosing reserve holdings to allay rumors of insolvency.
CryptoSlate High Tales
About 130 firms affiliated with the FTX Group have collectively filed for Chapter 11 chapter on Nov. 11. The change stated that it’s going to work to restructure its remaining belongings in order to refund affected stakeholders.
As well as, John Ray III will take up the CEO function from Sam Bankman-Fried.
Binance CEO Changpeng Zhao “CZ” stated it needed to again off the FTX deal, on account of the regulatory scrutiny FTX has to battle with.
CZ added that the FTX collapse will name for elevated scrutiny of crypto exchanges. For extra transparency, CZ recommends that regulators ought to contemplate auditing the change’s enterprise fashions and proof-of-reserves, along with KYC and AML legal guidelines.
Following the FTX fallout, a number of crypto exchanges together with Crypto.com have moved to reveal their reserve holdings, to allay fears of insolvency.
In line with particulars shared by Crypto.com CEO Kris Marszalek, the change holds about 53,024 Bitcoin, 391,564 Ethereum, and a few altcoins which totaled roughly $3 billion.
Enterprise Capital agency Pantera stated it carried out a danger evaluation for tasks in its funding portfolio, in order to take preventive measures following the FTX collapse.
From the evaluation report, about 95% of the tasks in Pantera’s portfolio don’t have any publicity to FTX or Alameda. Nevertheless, two startups had been affected and can obtain additional help from the funding agency.
SEC Chairman Gary Gensler, FTX CEO Sam Bankman-Fried, and Alameda CEO Caroline Ellison, reportedly have a long-standing relationship that was linked to MIT.
Because of this, rumors are spreading that Gensler had sinister ties to FTX, in an try to assist FTX achieve extra management over the crypto house.
In response to the speculations, crypto-friendly U.S. Congressman Tom Emmer stated he would launch an investigation to uncover Gensler’s function in serving to FTX achieve a regulatory monopoly.
Within the wake of the FTX collapse, the Bahamas’ authority froze FTX’s belongings. Nevertheless, it licensed Bahamians to withdraw their remaining funds.
Because of this, many FTX customers are opting to collaborate with Bahamian residents to assist withdraw their funds. Whereas some crypto group members have criticized the act as unlawful, many traders together with @depression2019 stated it was higher to make use of such ways to reclaim full funds as a substitute of ready for a 5-year chapter course of.
BlockFi halts withdrawals amid FTX disaster, Genesis Buying and selling, Crypto.com emphasize transparency
The FTX fallout impact has caught up with BlockFi because it moved to droop withdrawals and buying and selling actions on its platform. BlockFi reportedly has a $400 million mortgage from FTX.US due for July 2023.
In efforts to distance Kucoin from the FTX collapse, CEO Johnny Lyu shared some particulars of the Kucoin proof-of-reserve.
As of publication, Kucoin held about 20,504 BTC, 180,299 ETH, 69.6 million KCS, 1.08 million USDT, and 365 million USDC.
FTX’s collapse which began on Nov. 9 pressured Bitcoin to fall under $15,590. Because of this, the realized losses on the flagship asset have spiked to new highs.
Equally, Grayscale’s GBTC share has declined to an all-time low of $9,771. The GBTC is buying and selling at a 41% low cost to its internet asset worth (NAV).
Because the FTX contagion unfolds, extra traders are shifting their Bitcoin approach from centralized exchanges into self-custody wallets. Glassnode knowledge exhibits that as of Nov. 11, out of roughly 19 million BTC in circulation, as much as 78% (roughly 15 million) are held in self-custody. Because of this, Bitcoin’s illiquid provide chart has spiked to new highs.
Additional on-chain investigation revealed that the market cap of the highest 4 stablecoins has flipped that of Ethereum. By implication, extra traders are shifting funds into stablecoins to hedge in opposition to the rising crypto market uncertainty.
The FTX collapse has fueled bearish sentiment throughout the market. Nevertheless, on-chain knowledge analyzed by CryptoSlate signifies that Bitcoin whales growing their holdings.
As of Nov. 10, the buildup development rating (ATS) reached about 0.74, which signifies that Bitcoin traders are actively accumulating.
Equally, the change internet place change chart exhibits that holdings of whales and tremendous whales have elevated considerably extra lately.
Information from the Cryptoverse
FTX withdraws US CFTC derivatives plan
Following the chapter submitting of the FTX Group earlier on Nov. 11, Bloomberg reported that the corporate has withdrawn a derivatives clearing plan submitted to the U.S. Commodity Futures Buying and selling Fee (CFTC).
The proposal would have allowed FTX customers to entry and mitigate derivatives danger in actual time.
Deribit adjusts withdrawals and deposits process
Deribit change has notified customers to create new pockets addresses following its Fireblocks replace. Customers had been cautioned in opposition to sending funds to their earlier accounts.
Withdrawal requests on the change will probably be accredited and processed manually by a Deribit withdrawal.
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