Week of Nov 7, 2022
The FTX Saga
It all started with the Journal covered by Coindesk, revealed that $FTT contributed the majority of the net equity on their balance sheet, suggested there might be liquidity issues. The situation deteriorated when CZ announced that Binance will liquidate all $FTT on their book, However it then turns out to be such an memorizable week of the entire crypto industry.
November 7th, SBF twitted to claim that FTX kept 100% customer fund safe and dedicated to fulfill all withdrawals properly, he deleted this specific tweet when FTX ceased all withdrawals a few days later.
November 8th, Dune Analytic recorded the amount of ETH out-flow from FTX is amounted to 365,123.76 ETH. Later that day, FTX was identified stopped processing on-cgain withdrawals from their identified wallet.
November 9th, SBF announced that Binance has signed a letter of intent to bail out FTX through acquisition. CZ re-affirmed the news and revealed SBF asked help from binance to cover the liquidity crunch. Rumour has it that SBF was seeking help from Wall Street for a $1B of fresh capitals. FTX later confirmed to all users at telegram that the withdrawal has ceaszed. Source also revealed that FinCEN is currently undergo investigation towards this incident.
Later that day CZ call for centralized exchanged to have proof-of-reserves and give users full transparency. Okx, Huobi Global, Bitget, Gate.io, Bybit, Kucoin, Bitmex and Deribit then announced to utilize merkle tree to proof their trustness to all users.
Solana as the closed ecosystem to FTX, has face tremendous strike as over 45M of SOL unstaked from the network. November 10th, Binance walks away from Deal to rescue FTX after due diligence. Some source say FTX might have a shortfall of up to $8 Billions.
November 10th, Sequoia issued a note to private LP announce to marking their investment in FTX to $0 and bearing a loss of $150M;
Many has reported that Alameda’s loss in the luna incident is the reason why FTX transferred constomer asset to avoid the asset management company went bankrupt. According to WSJ, there are $16B worth of asset on the trading platform and half of it was lending to Alameda. SBF disclosed to a investor later that the loan FTX granted to Alemeda is worth $10B
SBF tweetwd to apologize and announced Alameda is winding down trading.
November 11th Justin Sun is actively in talk with SBF to bail out FTX.
November 12th Bloomberg’s source said FTX US employee were trying to sale FTX stock and Miami Heat Arena naming rights without SBF’s authorization. Zane Tackett, working as a BD direator at FTX has been let go without notice. He later confirmed that FTX has liability of $8.8B. FTX Future Fund team issued a letter state their resignation.
BlockFi stopped asset withdrawal due to FTX and Alameda .
November 13th Released by the FTX that together with its affiliate companies it has filed for voluntary proceedings for Bankruptcy. SBF resigned his role as CEO and John J. Ray has been appointed as the new Executive. The new CEO confidently revealed that he will be in assistance to regrouping FTX.
Later that day FTX was identified as hacked where all platform assets were transferred to an address and traded into $DAI and $ETH. People was suspicious wether it was done by hacker or an employee. The address has stole about $515M. Later the group’s general counsel has initiated procedure to transfer left asset to cold wallet.
Reuters’ source then pointed out that SBF has “backdoor” to execute commands that could alter the company;s financial records.
November 14th SBF interviewed by Bahamas Police and Regulators.
In Conclusion, it is such a big tragedy and it has left scars to numerous tier 1 institutions. On a positive pespective it is many people’s hope that this event could drive people to build a true regulated and transparent centralized exchange framework to ensure that no one get rubbed. To date the market Cap for the cryptocurrency is about $0.8 Trillion and it is sitting on the lowest point since the last bull cycle, however there are still many builders will help it grow and recover.
Highest NFT Sale of the Week
BAYC #5718
350 ETH ($ 440K)
Overview of Fundraisings of the Week
Compliance Firm TRM Labs Raises $70M as Crypto Crime Ticks Up
They Built Ramp Into An $8 Billion Company In Under 3 Years: The Inside Story Of How They Did It
ARCHAX RAISES $28.5 MILLION TO EXPAND FCA-REGULATED DIGITAL ASSET EXCHANGE, BROKERAGE AND CUSTODIAN
Fordefi Raises $18M Seed Round to Launch Institutional DeFi Wallet and Security Platform
Ping wants to simplify global payments while helping Latin Americans embrace crypto
Web3 messaging infrastructure Notifi raises $10M seed round co-led by Hashed, Race Capital
Sepana Raises $10M in Funding Round, Seeks to Enhance Operations in Web3 Search & Indexing Tool Space
https://www.coinspeaker.com/sepana-10m-funding-round-web3/
Crypto Exchange Coinmetro Eyes US, Europe Expansion With $7M Funding Round
Eterlast raises €4.5m to develop sports NFTs and blockchain games
XTERNITY SECURES $4.5 MILLION FUNDING TO BOOST WEB3 GAMES
DeFi
Weekly TVL
Gross: ⬇️$43.42B
Top 3 Apps: MakerDAO ⬇️($6.83B), Lido ⬇️($6.03B), AAVE ⬇️($4.71B)
Top 3 Chains: ETH ⬇️($25.29B), BSC ⬇️($5.15B), TRON ⬇️($4.1B)
Top 7D Change 📈: Undercollateralized lending marketplace — Maple (+838%, $136.11m)
DeFi News
[OpenSea Enforces Creator Fees] OpenSea, the leading NFT marketplace by volume, will continue to enforce creator fees on its platform for existing collections.
[FTX Collapse] Cryptocurrency is facing a crisis of confidence after popular crypto exchange FTX filed for bankruptcy, the latest and most significant failure in a series of high-profile collapses.
[Crypto.com Bank Run Rumors] Over the past week, Crypto.com’s CRO token has dropped almost 45% on concerns the Singapore-based exchange will be the next to face a liquidity crisis. The exchange’s daily volume has collapsed from last year’s highs of around $4 billion to about $284 million this past October, according to data from Nomics, and withdrawals are on their way back up as users and investors remove their funds from the platform.
NFT
7D SALES: $111,322,281.67 (-36.87%)
7D NUMBER OF BUYERS: 173,191 (-7.40%)
7D NUMBER OF SALES: 785,457 (-13.29%)
NFT News
Nov. 10, OpenSea to enforce NFT royalties for creators.
Nov. 9, Messi becomes Sorare NFT fantasy football ambassador.
Nov. 9, FIFA and Altered State Machine partner for AI League football metaverse game.
Nov. 8, Russia’s central bank issue framework for trading NFT and digital assets.
Nov. 7, Rolex files metaverse and NFT trademarks.
GameFi & Metaverse
[Bora Network and Widus Partners launch $30M GameFi fund] Bora Network and Widus Partners have launched a $30 million fund to invest in web3 games. The fund has already selected GameFi wallet solution Me3 among its first investments. Other projects targeted include Skyark Chronicles, a global Web3 game build and HAVAH, an NFT multi-side chain platform.
[Roshambo announces BSC support for its popular GameFi platform along with their first NFT sale date] Roshambo is a multichain web3 entertainment app with SocialFi and GameFi elements that aims to provide the best experience possible for the GameFi community. The Roshambo platform includes revolutionary features in addition to games, events, tournaments, and NFTs.
[Oasys aims to grow blockchain gaming in Japan through YGG partnership] Oasys, a gaming-oriented, Japan-based Web3 project, is partnering with YGG, a blockchain gaming guild, to grow blockchain gaming in Japan. The partnership encompasses the use of YGG resources to promote gaming projects built on top of the Oasys ecosystem, giving developers from all over the world an opportunity to get into Japan’s gaming market.
[FormaCar launches a GameFi racing ecosystem] FormaCar Action is a large-scale game project created in the popular GameFi industry. It is based on Play-To-Earn mechanics. This gaming crypto project allows players to immerse themselves in a beautifully designed automotive universe to experience the thrill of racing competitions, win rewards and tokens, and enjoy driving cars while collecting NFTs. Currently, it has surpassed 250k downloads of its app.
[Elemon completes GameFi updates for New Boss Guild, PVP Seasons] Elemon is a protocol built on BNB Chain with Play-to-Earn features. The protocol combines the aspects of gaming and digital collectibles. The native $ELMON token has utility on the protocol. Users can use the token to farm and make payments in its NFT marketplace along with other tokens. The PVP Championship offers rewards including a $5,000 cash prize in BUSD.
[PetaRush: a new win-to-earn GameFi] PetaRush is one of the world’s first multi-IP blockchain game. The game’s NFTs were released for public sale on November 5. Prior to the public sale, PetaRush initially released 300 NFT whitelist contingents, which sold out in less than a day. PetaRush also held a raffle in the Discord community and gave away iPad prizes to thank early holders.
[MetaMask invests in blockchain gaming with HyperPlay] MetaMask partners with Game7 to introduce HyperPlay, a Web3 game launcher that allows users to easily carry in-game assets like NFTs and Tokens through the iconic crypto wallet, MetaMask. The collaborative project aims to give MetaMask a foothold in the GameFi industry through the creation of a blockchain game launcher that can be interacted with users’ Metamask wallets.
[Dubai to host a golf championship in the metaverse] The DP World Tour has partnered with the leading virtual reality golf game Golf5 eClub, to launch a new tournament in the metaverse that will coincide with the season-ending DP World Tour Championship in Dubai. The “DP World Tour Championship Metaverse Challenge” will be open to Golf5 eClub members and is available to play from 10th — 25th November 2022.
Regulation & Adoption
- Nov 7 (🇧🇸🇰🇾) Binance starts to liquidate the entire position of FTX Tokens.
- Nov 7 (🇺🇸) Crypto no longer cited as one of the top 10 potential risks on US bank report.
- Nov 8 (🇯🇵) Nomura, a 500bn USD Japanese bank, to launch institutional BTC and crypto platforms through their new subsidiary.
- Nov 8 (🇩🇪) Coinbase addressed by German financial regulator after discovering risk management deficiencies.
- Nov 11 (🇧🇸) FTX Declares bankruptcy.
- Nov 10 (🇸🇬) Crypto.com “accidentally” moved 400M USD in ETH to Gate, which was returned.
- Nov 13 (🇭🇰) AAX Exchange based in Hong Kong suspends all operations, citing “system updates”, rumoring it might be in trouble.
Macro
- German CPI +10.4% in October, Highest inflation rate in 70 years.
- Euro ends the week breaking above the US dollar.
- US CPI, comes at 7.7% YoY, down from 8.2% in September.
- Turkey’s Inflation hits 86%.
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