The biggest crypto news and ideas of the day |
|
|
Hello and welcome to The Node. This is Daniel Kuhn and Xinyi Luo, here to take you through the latest in crypto news and why it matters. In today’s newsletter: |
|
|
Sam Bankman-Fried Says Alameda Winding Down, Promises US Customers 'Fine': FTX CEO Sam Bankman-Fried is winding down its sister company Alameda Research to backstop the beleaguered crypto exchange FTX, saying he wants to pay customers over investors. FTX is in dire need of funding and faces bankruptcy if it cannot raise at least $9.4 billion. There are serious indications that FTX used client funds in ways they weren't supposed to, and is now facing probes from the Department of Justice (DOJ), U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Japan’s financial watchdog ordered FTX to suspend its local unit’s operations following a withdrawal halt, while U.S. Sen. Elizabeth Warren (D-Mass.) has called for increased scrutiny across crypto. FTX plans to conduct a fundraise next week, according to Reuters, after Binance reneged on a tentative buyout offer following a review of FTX’s books. TRON founder Justin Sun announced he is "putting together a solution" for FTX, but the details are scant. No matter what happens, the effects of FTX's collapse are far-reaching: - Contagion: FTX suspended withdrawals on Tuesday, but some peers and major traders still have assets stuck on the exchange, including venture capital giant Sequoia, crypto-focused financial-services firm Galaxy Digital, troubled crypto lender Hodlnaut and more.
- Regulation: SEC Chair Gary Gensler said in an interview with CNBC the agency is doubling down on an investigation into FTX and FTX.US that began months ago. He reiterated calls for exchanges to register with the SEC, saying “noncompliance” and poor disclosures have hurt U.S. investors.
- Solana: The blockchain backed by Alameda Research and FTX has been hit hard by the ongoing fallout.Trading platforms dYdX, Crypto.com and OKX have restricted SOL trades. Meanwhile, nearly $800 million SOL tokens are set to be unstaked. Concerns are also being raised about next-gen blockchains Sui and Aptos, which SBF backed.
|
Don’t want to miss out on the Web3 revolution? Few platforms make it easier to join than Nexo. For starters, you can buy BTC, ETH, and 50+ more coins instantly with a card. On the Nexo Exchange, you can swap 300+ pairs and get up to 0.5% in crypto rewards on each transaction. The gem in the all-in-one suite is the Earn Crypto Interest product. What sets it apart is that the interest you earn compounds automatically and is paid out to your wallet daily. To top it all off, Nexo makes it easy to borrow funds against your crypto, starting at0% APR. Their pioneering Instant Crypto Credit Lines have stood the test of time thanks to fundamental principles such as overcollateralization and robust risk management. Create your Nexo account today and get everything for your crypto from a single, secure platform. Disclaimer: The Earn Interest Product is not available for citizens or residents of certain jurisdictions, including where restrictions may apply, such as the USA, Bulgaria, Estonia. |
|
|
Putting the news into perspective |
Sam Bankman-Fried (Jesse Hamilton/CoinDesk) Does Crypto Need a Central Bank? Yesterday, Binance pulled out of a tentative deal to buy out rival firm FTX, the crypto exchange founded by Sam Bankman-Fried that has lost just about everything following a bank run. The firm now has to go on the hunt for outside capital to backstop users' significant losses and high-profile investors. D.K. looks at the history of crypto's centralized development and failure of regulation that led to this crisis. Read the full story here. |
|
|
Hex Trust is a fully licensed digital asset custodian for financial institutions and organizations. Our bank-grade platform Hex Safe™ integrates top emerging blockchains, token standards, and licensed custody services for NFTs and metaverse assets. - Institutional-grade infrastructure: providing the highest standards of protection, scalability, and compliance
- Monetize digital assets: accessing DeFi, staking, and other on-chain services
- Enter the metaverse: integrating NFTs in your business operations safely
Unlock the full potential of your digital assets. Get started |
|
|
Overheard on CoinDesk TV... |
"Never let a good crisis go to waste." – CFTC Commissioner Kristin N. Johnson, on emerging regulatory efforts amid the FTX fiasco, on CoinDesk TV's "First Mover" |
|
|
- Crypto Main Characters Drop Like Flies as Bear Market Turns One (Blockworks)
- Crypto kingpin bet a fortune on Democrats. Now he’s lost it all. (Politico)
- EXCLUSIVE Behind FTX's fall, battling billionaires and a failed bid to save crypto (Reuters - paywalled)
- The FTX Collapse: A Market Analysis (Kaiko)
|
|
|
|
