?? Contagion
Bitcompare
Maximise your Crypto wealth. Find the best staking, lending and borrow rates from the best platforms.
"BlockFi is not able to operate business as usual. We have limited platform activity, including pausing client withdrawals..." - BlockFi
You can also check out our?previous emails?and follow us on?Twitter?too!
In this edition:
Unraveling...
"NOT YOUR KEYS, NOT YOUR COINS"
Investors have started taking this saying seriously as a recent?report published by Glassnode?revealed that the number of Bitcoin (BTC) users who hold their BTC assets in self-custody wallets has hit an all-time high.
The report showed the recent collapse of?FTX?has led to a decrease in the percentage of Bitcoin holders who store their assets in exchanges. It revealed that the net BTC balance in exchanges dropped by 72.9K BTC over the last week, with FTX’s BTC balance declining “effectively to zero.”
Similarly, users have withdrawn over 1.101M Ethereum (ETH) assets within the last seven days.
Glassnode compared?FTX’s?sudden collapse?to the failure of Mt Gox in 2013. It claimed that the downfall of FTX caused users to hold their BTC and ETH tokens in the safety of their self-custody wallets.?
Contrary to Bitcoin and Ethereum trends, exchanges have witnessed a drastic increase in the stablecoin inflow. Glassnode reported that more than $1.04M worth of Dai (DAI), USD Coin (USDC), USD Tether (USDT), and Binance USD (BUSD) tokens were added on November 10, making it the seventh-highest daily stablecoin inflow of all time.
Midas.Investments?is a hugely popular platform amongst the Bitcompare community, and it's easy to see why.
Join more than 7,000 investors:
Read our?in-depth review?of Midas.Investments for more information.
This week's trending coins??
Genesis, BlockFi, Salt Victims of FTX Contagion
The FTX contagion is spreading, sweeping many crypto firms in its path.
Genesis Global Capital
Genesis is the latest firm affected by FTX’s collapse, as its lending entity halted loan originations and redemptions due to liquidity issues. According to Genesis’ tweets, its lending arm--Genesis Global Capital--faced liquidity issues due to 3AC’s bankruptcy. This got worse with the collapse of FTX when withdrawal requests exceeded its liquidity.
This event could pose a lot of exposure to other counterparties because Genesis sits at the center of the crypto capital markets. Several companies like Gemini use Genesis to help their consumers earn yield. Gemini warned its users about potential delays in withdrawals for its Earn product.
BlockFi
Just last week, BlockFi was looking to?roll out?its crypto yield account for US clients. But as it stands, this might not happen.
In a?Twitter post?on November 11, BlockFi?announced that it is limiting operations, including clients' withdrawals?citing the lack of clarity surrounding FTX as the reason behind such a move.
A?WSJ reported?that BlockFi is considering filing for bankruptcy which might also include job cuts and layoffs.
Salt
Another crypto lending platform affected by the FTX contagion is Salt. The platform has also?paused withdrawals and deposits, citing the impact of the FTX collapse.
In a message to its account holders, Salt stated the fall of FTX has greatly affected its business. As a result, the firm will immediately halt withdrawals and deposits on the platform. The lending platform also noted that this would last until it can ascertain the extent of the exchange’s impact and with specific details that it believes are factually correct.
These are just?some of the victims of FTX’s unexpected downfall with more exposure predicted to occur in the coming days.
领英推荐
The Teaser section
Question:
How much % of Solana's total supply do Alameda and FTX own?
Potential Answers:
BC's Musts
Book:?The Crypto Story
Latest on FTX Bankruptcy...
The Supreme Court of Bahamas has?appointed two insolvency experts at Pricewaterhouse Coopers (PwC) as provisional liquidators overseeing FTX's assets.
In a?press release, the Commission stated,?
“Given the magnitude, urgency, and international implications of the unfolding events with regard to FTX, the Commission recognized that it had to, and moved swiftly to use its regulatory powers under the Digital Assets and Registered Exchanges Act, 2020 (“DARE Act”) to further protect the interests of clients, creditors, and other stakeholders globally of FTX Digital Markets Ltd. (FDM).”
The Commission also noted that it would meet with other supervisory authorities in the coming weeks since the issue is multijurisdictional. They also promised to offer full assistance to the police if necessary.
Latest on Voyager...
Remember in September when FTX won a $1.4 billion bid to buy Voyager assets following the lender’s bankruptcy? Well, that deal is off!
With recent unpleasant events going on in with FTX, Voyager is calling off the agreement. The firm?tweeted?that it has reopened the bidding process for its assets. In a?press release, the firm mentioned,
“It is important to note that Voyager did not transfer any assets to FTX US in connection with the previously proposed transaction. FTX US previously submitted a $5 million "good faith" deposit as part of the auction process, which is held in escrow.”
Top Stories…