Crypto Guides, Knowledge & Insights

FTX or Alameda Slumps Issued Wrapped Tokens, No Longer Redeemable

Coingecko stats show that Wrapped bitcoin on Sollet has decreased by more than 60% over the past day from its native bitcoins current price of $16,811. In comparison, Wrapped ETH on Sollet is also down for the past 24 hours, but only by roughly 8% to $1,209. At the time of writing, native ETH is trading for $1,261. 　　Notably, Coingecko is posting the following caution on its site for both wrapped tokens, soETH and soBTC:　　“soBTC tokens are wrapped BTC tokens issued by FTX or Alameda. Both these entities have filed for Chapter 11 bankruptcy, and the BTC tokens are no longer redeemable.”　　Rather than holding or trading genuine Bitcoin or Ethereum, users can store or exchange wrapping tokens for these assets, like the ones for Bitcoin or Ethereum, on the Solana blockchain. 　　　　As a result of the majority of Solana wrapped commodities being held by the now-defunct cryptocurrency exchange FTX and Alameda study, the wrapped tokens are no immediately convertible and will likely drop to zero, according to the founder of the open source portfolio tracking tool Roktiapp. 　　Reactions to the wrapped resources were merely people trying to alert individuals to the fact that the wrapped tokens were fake tokens. Tweeted

2022-11-15Deep Dive

Why FTX Might Not Be the Only Victim in its Own Demise

Despite information regarding discrepancies in the balance statement of its sister trading company Alameda Research, FTX continued to seem regular last week. 　　Nobody was prepared for the path that led to FTX Derivatives Exchanges bankruptcy, and as a result, many people were taken off guard. Even if the process is still in its early phases, these slumps will eventually have a rippling effect.　　FTX held a key place in the ecosystem of digital currencies, acting as an investment and the borrower of last option to struggling businesses throughout the whole crypto winter. Over 200 businesses that FTX has interests in were named in its bankruptcy petition. 　　　　While the failure of FTX was a major shock, the fact that throughout the summer, several big firms, including Celsius Network, Voyager Digital, Three Arrows Capital, and Terraform Labs, failed must have served as a reminder to keen observers that nothing was impossible in this industry.　　The Broad-based Heartbreak and FTX　　What may be hurting many peoples hearts right now is a significant distinction between the FTXs demise and a plethora of other insolvent enterprises. Having promised the ethos of centralization, FTX notably dipped its claws into users finances in an unscrupulous fashion which it utilized to

2022-11-15Deep Dive

Numerous Crypto Exchanges Suffer as a Result of FTX

Hong Kong-listed business New Huo Technology Limited (HKEX: 1611) announced from within knowledge on Monday that approximately $18.1 million worth of digital currencies possessed by its subsidiary Hbit Limited are placed in cryptocurrency exchanges FTX, per the most latest revelation posted on Hong Kong Exchange, going to cite “Failure to withdraw cryptocurrency assets from crypto exchange FTX.”　　　　According to the clients trade request, about $13.2 million of the $18.1 million capital is the “clients asset,” and about USD 4.9 million is the “asset of Hbit Limited.” The listed firm issued a warning that due to FTXs petition for bankruptcy proceedings on November 11 and its subsequent liquidity crisis, the crypto assets “may not be able to be removed from FTX.”　　The companys board of directors emphasized that it will keep offering consumers financial services involving virtual assets that are legal, competent, and secure.　　“The Board is of the view that the Incident currently does not affect the normal business operations of the Group. As Hbit Limited is legally and operationally separated from other business entities of the Group, other assets and business lines of the Group will not be affected.”　　The Board stated that if “the incident is not solved,” it could have an

2022-11-14Deep Dive

After the FTX data leak, Solana Developers split apart the Solana Liquidity Hub Serum

On November 12, a developer using the alias Mango Max claimed on Twitter that a “confirmed build of the same version has been generated and deployed.” Additionally, a multi-sig owned by a group of reliable programmers is now in charge of managing the upgrade authority and fee earnings. The functioning of the Serum (SRM) and MegaSerum (MSRM) tokens as well as the fee savings has not been changed. 　　Many Solana professional developers the hack may well have damaged the protocol because FTX creates Serum. Developers are scrambling to fork Serums code today and continue the protocol without FTX, according to Anatoly Yakovenko of the Solana blockchain.　　　　The original Serum could only be upgraded via an encryption key that is owned by others at FTX and not the Serum DAO, and that key may have been stolen as a result of the FTX hack, therefore it appears that programmers may need a different version of Serum. The developers who rely on serum are going to fork the software, according to Yakovenko, because the upgrading key to the current version has been hacked. 　　Not just Yakovenko but other developers also contributed to the forking issue. Says Mango Max, “The serum program update key

2022-11-14Deep Dive

Huobi addresses concerns raised surrounding fake reserves ‘snapshot’

Huobi has addressed the concerns raised in response to Wu Blockchains tweet, which revealed that over 10,000 ETH had been transferred out of the Huobi 34 wallet.　　Huobi clarified that the hot wallet address is part of the advertised address and informed people worried that the company guarantees the security of user assets, 100% redemption, and will not put any restrictions on deposits and withdrawals.　　On November 13, Huobi published its Work Report on Asset Transparency, which detailed the disclosure of its hot and cold wallet balances. Huobi stated that disclosing its hot and cold wallets will become a standard procedure.　　Concerns about the asset snapshot of the asset reserve began to emerge shortly after Huobis disclosure statement. According to Wu Blockchain, Huobi transferred 10,000 Ethereum (ETH) from the Huobi 34 wallet to “Binance and OKX deposit wallets.”　　At the moment of the snapshot, the wallet contained 14,858 ETH. The 10,000 ETH in question was removed from the wallet two minutes later.　　The Huobi 34 wallet reported previously now has a total balance of about 18,000 ETH and is still seeing regular transactions in and out of the wallet.

2022-11-14Deep Dive

Binance to launch ‘recovery fund’ for strong projects with liquidity crisis

On November 14, Binance CEO Changpeng CZ Zhao said that the exchange would launch an industry recovery fund to assist strong projects in a liquidity crisis.　　CZ made the statement in response to the recent bear market liquidity shortage that has impacted various cryptocurrency projects, pushing some of them out of business.　　CZ stated that the fund would be open to other industry players that choose to invest. He also stated that further details regarding the effort would be released soon.　　CZ has asked projects that believe they are eligible for the money to contact Binance Labs.　　CZ stated in June that Binance was prepared to help industry participants survive and develop even if the firm did not benefit from such assistance.　　Binance Pool also created a $500 million loan facility to help the cryptocurrency mining business.　　Crypto community praises CZ initiative　　The crypto community has embraced CZs effort, with many hailing it as a positive step forward.　　Justin Sun, the founder of Tron (TRX), stated that his two exchanges, Huobi Global and Poloniex, would participate in the project. Sun stated:　　“(We would) contribute to this industry recovery fund in order to assist good builders and developers in recovering from the crisis!”　　Meanwhile, some questioned the proposal, wondering how Binance

2022-11-14Deep Dive

FTX exchange crash: A lesson for all Nigerian crypto traders

By: Damian Okonkwo　　Traders lose money as FTX exchange files for Bankruptcy 　　The crypto market has suffered what appears to be the greatest blow in its history with the crash of the second largest crypto exchange which saw over $200Billion wiped out of the crypto market in less than 12hrs after the news. Over 5 million users trading on the exchange including Nigerian crypto traders have been unable to access and withdraw their funds from the exchange after the founder of the FTX exchange - Sam Bankman-Fried filed for bankruptcy protection under Chapter 11 of the US laws and resigned his position as the CEO of the exchange.　　The current crash of the FTX exchange has exposed the vulnerability of using the Centralized exchange for crypto trading which in itself goes against the purpose of cryptocurrency when it was first created. It has further exposed the risk involved in cryptocurrency trading where the traders capital is always at risk and he stands the chance of losing his whole investment should either the project or exchange he is dealing with crash in the future.　　What are the lessons to learn from the FTX exchange crash today？　　The major lesson every crypto trader must learn from

2022-11-14Deep Dive

FTX’s bankruptcy rippled through the sports world. Steven Curry and other celebrities take a hit.

Nov 14- FTX, its affiliated crypto trading fund Alameda Research and about 130 other companies entered voluntary bankruptcy proceedings last Friday. As the brand ambassador of FTX, the NBA superstar Steven Curry has taken a hit because of the FTX collapse.　　Curry is currently working for the Golden State Warriors of the NBA. This NBA legend reached a partnership with FTX in September 2021 and became a global ambassador for the company. The epic collapse of FTX even entangled his non-profit organization “Eat. Learn. Play”. Earlier this year, Curry starred in a commercial ad for FTX in which he proudly claimed that he didnt need to be an expert to trade and sell cryptocurrencies on the FTX platform. Curry also appeared as a brand ambassador on FTXs website the day before the firm filed for bankruptcy.　　FTX is very focused on marketing in the sports world and many sports stars have partnerships with FTX. In addition to Curry, famous tennis star Naomi Osaka was given an equity stake. Another NBA legend Shaquille ONeal has cooperation with this crypto exchange as well.　　Bankman-Fried stepped down from his CEO position as FTX filed for Chapter 11 bankruptcy, after scrambling to shore up an $8 billion

2022-11-14Deep Dive

Binance US, Coinbase, Curve in Bidding War for BlockFi Credit Card Customers

Blockworks has learnt that Binance US and Coinbase are among the bidders for the BlockFi credit card program and its related clients, while smaller fintech competition Curve is also interested in the approximately 87,500 BlockFi accounts.　　BlockFi banned withdrawals on Thursday, November 12, citing a “lack of clarity” on the evolving situation at FTX and Alameda Research, both of which have now initiated bankruptcy proceedings.　　Several Twitter users have reported that their BlockFi cards have ceased operating in the last 24 hours.　　BlockFi is thought to have a $800 million hole in its balance sheet and is not thought to be significantly involved in the negotiations to buy its card assets.　　According to a source close to the situation, a settlement is expected within 72 hours, adding that the majority of the ongoing negotiations over the sale of the BlockFi card assets are being done by the fintech servicing firm Deserve, which manages the BlockFi program. The issuing bank is Evolve Bank s website lists ten coins for which it provides crypto prizes.　　In an emailed statement, they stated, “What distinguishes our bid is that Curve is not a centralized exchange and has no intention of becoming one.” We offer a cryptocurrency rewards credit card

2022-11-13Deep Dive

Bahamas Securities Commission neither “authorized” nor condones FTX enabling local withdrawals

In a press release issued on November 12, the Securities Commission of The Bahamas (SCB) refuted FTXs announcement about restarting withdrawals in The Bahamas.　　Zane Tackett, the former head of institutional sales at FTX, declared on Twitter on November 11 that the exchange would allow withdrawals for Bahamian clients. Tackett stated in the statement that the withdrawals were permitted in accordance with regulations.　　As a result, a huge number of FTX users attempted to route payments through Bahamians. Some even offered bribes to FTX personnel in order to shift their country to The Bahamas and assist in the withdrawal of monies.　　The SCB, on the other hand, stated that the regulator had not “ordered, permitted, or urged” that FTX prioritize local withdrawals.　　In reality, according to the SCB press release:　　“The Committee also observes that such transactions may be classified as voidable preferences under the insolvency framework, resulting in the clawback of monies from Bahamian clients.”　　In other words, the regulator said unequivocally that FTX withdrawals for Bahamian clients may be deemed void and hence overturned. The regulator also stated unequivocally that it does not “condone” preferential treatment of any FTX consumers.

2022-11-13Deep Dive

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