Crypto Guides, Knowledge & Insights

Binance CEO CZ bans employees from futures trading

Binance CEO CZ bans employees from futures trading and strict internal monitoring and violators face termination. Last week, Binance recorded the Largest liquidation order at $55.9M.　　Binance CEO Changpeng Zhao (CZ) recently tweeted that Binance employees, including himself, are not allowed to trade futures.　　　　In addition, Binance requires all employees to hold positions for at least 90 days before trading. The internal security team monitors employee trading activities on multiple platforms, and any violation of these rules will result in immediate termination.　　We reported that during a sharp market drop on Friday, an investor in Binances ETH/BUSD contract was liquidated at $1,434.37 for $55.9211 million, the largest liquidation order of the day. According to Wu Blockchain, this could be a market maker who hedges on other exchanges.　　Binance recorded the total of liquidations today with almost $220 million, of which long positions liquidated $188 million. These numbers show Binances futures trading scale and the potential risks involved.　　Recently, Binance announced the issuance and conversion of its users‘ delisted New Bitshares (NBS) tokens. The transition is set to take place promptly at 08:00 on September 9th, with a snapshot taken to determine the NBS token balances based on users’ Binance Wallet location records.　　

2023-08-21Deep Dive

Binance Converts Delisted NBS Tokens To USDT For Profitable Transition

Binance has announced the issuance and conversion of delisted New Bitshares (NBS) tokens held by its users.　　This transition is set to take place promptly at 08:00 on September 9th, with a snapshot taken to determine the NBS token balances based on users Binance Wallet location records.　　Following the snapshot, Binance will work diligently to replace the NBS token balances with an equivalent amount of USDT (Tether) by December 8th, 2023, at 23:59 (UTC). This conversion will be carried out using the average NBS/USDT exchange rate between the specified time frame of September 9th, 2023, at 00:00 (UTC) and December 8th, 2023, at 23:59 (UTC). This period aptly termed the “Conversion Period,” aims to ensure a fair and accurate exchange rate for the benefit of users.　　To offer transparency and insight into the transition, Binance plans to provide users with comprehensive information about the average NBS/USDT exchange rate during the Conversion Period. This valuable data will be made available at the end of the transition period, allowing users to understand and assess the exchange rate dynamics that influenced the token conversion.　　Binances commitment to providing its users with a seamless and user-friendly experience remains at the forefront of this initiative. By enabling the conversion

2023-08-21Deep Dive

The Wall Street Journal: SpaceX Writes Down $373 Million in Bitcoin

Musks SpaceX had written down a total of $373 million worth of bitcoin over two years in 2021 and 2022, according to the Wall Street Journal. This record may represent that SpaceX has sold out of bitcoin.　　This data comes from SpaceX documents obtained by the Wall Street Journal, but the Wall Street Journal did not disclose the specific time or specific amount of bitcoin sold by SpaceX.　　The release of this information may have contributed to yesterdays sharp market decline　　

2023-08-18Deep Dive

Connext Token Economics Revealed, Airdrop Set for September 5th

The Layer2 interoperability protocol Connext is set to launch its native token, Next, on September 5th. The Connext team also plans to distribute Next tokens to early users on Polygon, Arbitrum, Optimism, and Gnosis Chain through an airdrop, with the claiming process opening on September 5th. The Next token will serve as a governance tool for the Connext ecosystem through a decentralized autonomous organization (DAO).　　It is reported that Connext is collaborating with Tokensoft to introduce “Cross-Chain Airdrop as a Service.” Through this service, airdrop recipients can claim tokens on any chain without the need for bridging or incurring additional gas fees. This service will launch with the next airdrop.　　In previous news, Connext introduced the cross-chain token standard xERC20, aiming to reduce liquidity costs and enhance the security of bridging tokens.　　Connext has revealed the token economics for its Nest token, with a total supply of 1 billion tokens. The token type is xERC20, and the distribution is as follows: 30% allocated to the DAO, 10.8% to the Connext Foundation, 10% for airdrops, 22.34% to early supporters, 11.24% to the ecosystem and strategic supporters, 11.68% to the early team and advisors, and 3.90% to Proxima Labs.　　To qualify for the NEXT airdrop, users

2023-08-18Deep Dive

FTX 2.0 Coalition: FTX Seeks Court Resolution for Genesis Claim Dispute and Resolves $175 Million Cu

The FTX 2.0 Coalition, representing FTX creditors, has stated on Twitter that FTX is seeking a court resolution to settle a $175 million claim dispute with Genesis, waive $175 million in customer claims, and address the nearly worthless Alameda claim. The claim amount has decreased from an initial $3.9 billion to $2 billion, making it undoubtedly one of the most unfavorable deals to date, particularly considering the ongoing Department of Justice investigation into DCG and Genesis.　　Even though Genesis claim amount remains higher than FTXs claim amount, the balance of Genesis loan has inflated due to interest earned from loans to Alameda and others.　　In 2022, Alameda used billions of FTX customer funds to repay Genesis. The crypto assets they hold can be directly traced back to FTX customer deposits. It is expected that the UCC will oppose this “transaction.”　　Earlier on August 5th, according to Bloombergs sources, the office of New York Attorney General Letitia James requested information from former executives of cryptocurrency lending firm Genesis. Michael Patchen, former Chief Risk Officer of Genesis, has recently been questioned. Federal prosecutors and the U.S. Securities and Exchange Commission (SEC) have initiated investigations and sought interviews with potential witnesses from Genesis and its parent

2023-08-18Deep Dive

Layer 2 Shibarium Moved To Insecure Mode And Stopped Working For Upgrades

Key Points:　　Layer 2 Shibarium announces that the network has entered unsafe mode and is down to ensure the safety of due funds.　　The Shibarium developers and the Unity team are working on an extensive upgrade.　　$1.7 million stuck in a cross-chain bridge is safe, and more info will be updated tomorrow.　　Kaal Dhairya, a core member of the development team of Shibarium, the Layer 2 Ethereum network launched by Shiba Inu, posted that the network has gone into failsafe mode and shut down to ensure the safety of the due funds.　　The problem was caused by traffic exceeding expectations after Shibarium went online. Currently, the Shibarium developers and the Unity team are working on an extensive upgrade.　　“Knowing the issue, we called in the support of some powerful frens (who we will name later with their permission) to help, alongside our Shibarium devs and the Unification team who have spent tireless hours working to scale our beloved blockchain. We have identified multiple possible plans of action, and will keep you updated as we execute to bring up the blockchain.”　　The project also claims that the “pause” funds in the bridge are safe and has therefore chosen to “insurance” the total $2 million in case of any

2023-08-18Deep Dive

CoinDesk Confirms Layoffs This Week, Including Reporter Who Sparks FTX Breaking News

Key Points:　　CoinDesk trims its editorial team by 20 amidst cost-cutting efforts.　　Tracy Wang, one of the people who brought the FTX event to light, was also among these employees.　　Blockchain investors lead acquisition talks for CoinDesk at $125 million.　　CoinDesk, a prominent cryptocurrency media outlet, has recently undertaken staff layoffs, as reported by Marc Hochstein, the event planner of the encrypted media company.　　The cutbacks were confirmed by CoinDesk officials, who echoed Hochsteins sentiments about the journalistic contributions of the affected employees.　　Tracy Wang, who won The George Polk Awards in Journalism, and other editors and reporters are among these staff members. Wang is a journalist with great merit for revealing the shadiness of the billion-dollar FTX empire last year.　　Hochstein cited the former employees contributions to journalism and called on other companies to recruit them. CoinDesk officials also confirmed the matter by reposting the post.　　These developments emerged after sources familiar with the matter indicated that CoinDesks parent company, Digital Currency Group (DCG), intended to introduce strategic investors.　　Approximately 45% of its editorial team, equating to 20 individuals, were affected by the layoffs, part of DCGs broader strategy to optimize expenditures and enhance profitability, according to a report by The Block.　　An investor consortium led by blockchain investors

2023-08-18Deep Dive

Bitcoin Drops Below $28,000, Over $220 Million Liquidated In The Last 24 Hours

Key Points:　　Bitcoins value falls below $28,000, with a 4% drop in 24 hours.　　$31.33 million in liquidation was reported, with BTC leading at $21.08 million.　　Market uncertainty grows as the SEC delays decisions on Bitcoin ETFs; the broader market follows suit with declines.　　The value of Bitcoin (BTC), the largest cryptocurrency, has slipped beneath the $28,000 mark, hitting a current trading price of $27,928, signifying a decrease of over 4% within a 24-hour span.　　Recent data from Coinglass has revealed substantial liquidation activity across the market in the last hour, totaling $31.33 million.　　Among these, BTC‘s liquidation amounted to approximately $21.08 million, while Ethereum’s liquidation stood at around $3.75 million. Notably, Binance and OKX exchanges contributed nearly 50% of these liquidation figures, with Bitmex accounting for almost 18%.Source: CoinGlass　　This occurrence marks the first instance in nearly two months that Bitcoin has registered a value below $28,000. Interestingly, throughout July, Bitcoin remained relatively stable, but todays sharp decline has piqued attention.BTC price chart. Source: TradingView　　Analysts are attributing this sell-off to the deliberation process of the U.S. Securities and Exchange Commission (SEC), the key regulator for Wall Street.　　The SEC‘s review of several high-profile Bitcoin ETF applications is believed to have contributed to the market’s uncertainty. There is

2023-08-18Deep Dive

Dubai Slaps $2.8 Million Fines On OPNX Exchange And Founders

Key Points:　　Dubai fines the OPNX exchange and its founders $2.8 million for market rule breaches.　　OPNX was hit with a $2.7 million fine; the founders smaller penalties were paid.　　VARA to take further steps against founders for unpaid fines and compliance.　　Dubais Virtual Assets Regulatory Authority (VARA) has imposed fines totaling nearly $2.8 million on the founders of the crypto exchange OPNX and the exchange itself as part of the ongoing crackdown on cryptocurrency-related activities.　　The co-founders, Kyle Davies and Su Zhu, who also played roles in the failed crypto hedge fund Three Arrows Capital (3AC), faced penalties due to violations of market regulations.　　VARA issued a notice on Wednesday detailing the fines, indicating that the co-founders and their exchange were fined for multiple infringements.　　The regulator fined OPNX a significant amount of 10 million dirhams (approximately $2.7 million) for failing to adhere to market regulations. Notably, this fine remains unpaid at the time of the notices publication.　　Furthermore, Davies and Zhu, OPNX co-founder Mark Lamb, and CEO Leslie Lamb faced separate penalties of $54,000 each. These fines were related to their failure to meet the standards set by the regulator for marketing, advertising, and promotional activities.　　However, these penalties were promptly paid by the parties involved.　　Despite the

2023-08-17Deep Dive

Proposed Revision of Spark Protocol Revenue Sharing Agreement by MakerDAO Founder to Ensure 10% Quar

On August 17th, Rune Christensen, the founder of MakerDAO, recently introduced multiple MIP sub-proposals to the community. Among these proposals is the formalization of the income-sharing mechanism between the Spark Protocol and Aave. This initiative aims to address shortcomings within the Maker ecosystem protocol and align it with intended behavior.　　According to the proposal, the Spark Protocol is required to pay 10% of the revenue generated from its lending functionality operated based on the Aave codebase. These payments are to be manually calculated by the coordinators of SparkDAO at the end of each quarter and manually transferred from SparkDAOs surplus buffer to DAI within the smart contracts governed by Aave governance.　　Furthermore, prior to the release of SubDAO tokens, Maker Governance will temporarily assume the responsibility of representing the Spark Protocol in paying the “virtual revenue share.” Once the SubDAO tokens are issued, the virtual revenue sharing mechanism will no longer be in effect, and the standard rules of the Spark Protocol Aave income-sharing ecosystem agreement will be implemented instead.　　

2023-08-17Deep Dive

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