Autor Cointelegraph By Editorial Staff

Top Stories This Week

Sam Bankman-Fried petitions court to prioritize reimbursing his legal fees

Sam Bankman-Fried (SBF) is seeking to use FTX’s corporate insurance policies to cover his legal expenses, according to a court filing on March 15. As per the filing, the policies provide “priority of payment” to insured individuals such as Bankman-Fried. The move would put the former CEO on top of the FTX payout list. Another headline shows that Bankman-Fried’s inner circle received $3.2 billion in payments and loans from FTX-linked entities. The amounts exclude over $240 million used for the purchases of luxury properties in the Bahamas, political and charity donations, as well as “substantial transfers” to non-FTX subsidiaries. In another headline, FTX debtors reported $11.6 billion in claims and $4.8 billion in assets, meaning there’s a $6.8 billion hole in the exchange’s balance sheet.

Signature Bank closed by New York regulators for not providing data

Crypto-friendly Signature Bank was officially closed down and taken over by the New York Department of Financial Services on March 12 for “failing to provide consistent and reliable data.” The bank has been investigated by two United States government bodies over whether it took adequate measures to monitor and detect potential money laundering by its clients. Former member of the U.S. House of Representatives Barney Frank suggested that New York regulators closed Signature as part of a seeming show of force against the crypto market.

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USDC bounces back toward $1 peg after Fed announcement

Circle’s stablecoin, USD Coin (USDC), climbed back to its $1 peg following positive developments concerning Circle’s $3.3 billion worth of reserves held at Silicon Valley Bank and its new banking partners: redemptions of USDC will now be processed by Cross River Bank and BNY Mellon. The stablecoin depegged from the U.S. dollar on March 10 following SVB’s sudden collapse, triggering the depeg of many other stablecoins. The stablecoins’ depegging prompted a growth in loan repayments over the weekend, allowing debtors to save more than $100 million on loans.

US Fed announces $25B in funding to backstop banks

United States federal regulators announced “decisive actions” that would “fully protect depositors” at both Silicon Valley Bank and the now-shuttered Signature Bank, including $25 billion worth of funding aimed at backstopping banks and other depository firms. The Federal Reserve is investigating the failure of Silicon Valley Bank — including an internal probe as to how the Fed supervised and regulated the financial institution. Amid the sudden collapse, SVB’s U.K. arm was acquired by HSBC for 1 British pound ($1.21), with loans of 5.5 billion pounds ($6.7 billion) and deposits of 6.7 billion pounds ($8.1 billion).

Bitcoin market cap flips tech giant Meta, widens gap on Visa

Despite a turbulent week for crypto following the downfall of Silicon Valley Bank and Signature Bank, Bitcoin’s market cap has managed to flip that of tech giant Meta. On March 14, Bitcoin’s market cap reached $471.86 billion, surpassing Meta’s $469 billion, according to data from Companies Market Cap. The leading cryptocurrency climbed to the 11th spot among top assets by market cap, sitting behind electric vehicle maker Tesla. The market capitalization of Bitcoin has added over $190 billion in 2023, outperforming top Wall Street bank stocks, particularly as fears of a global banking crisis are rising.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $27,571, Ether (ETH) at $1,823 and XRP at $0.38. The total market cap is at $1.18 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Conflux (CFX) at 186.02%, Mask Network (MASK) at 120.56% and Stacks (STX) at 102.97%.The top three altcoin losers of the week are UNUS SED LEO (LEO) at -2.22%, Tether (USDT) at -0.35% and Binance USD (BUSD) at -0.16%. For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

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Unlocking Cultural Markets with Blockchain: Web3 Brands and the Decentralized Renaissance

Most Memorable Quotations

“The recent shutdowns of financial institutions may be the opportunity for crypto to reach mass adoption.”

Johnny Lyu, CEO of KuCoin

“We believe that elements of the future of finance will be blockchain enabled and we’re already witnessing rapid change in the tokenisation market.”

Drew Bradford, executive general manager, markets at the National Australia Bank

“Major adoption by mainstream businesses and their consumers is right around the corner thanks to recent developments in scaling and privacy technology.”

Mark Smargon, CEO of Fuse Network

“Drop the blockchain/NFT/play-to-earn (P2E)/metaverse/Web3 talk. […] They [players] just want to have an entertaining playing experience — not a science lesson.”

Peter Bergstrom, former producer of Age of Empires and CEO of BitBlock Ventures

“We are going to have a credit crunch in the U.S. and globally. […] You want to be long gold and silver […] and you want to be long Bitcoin.”

Michael Novogratz, founder and CEO of Galaxy Digital

“I believe regulators are using crypto as a scapegoat for their own lapses in oversight of traditional banking.”

Cathie Wood, CEO of ARK Invest

Prediction of the Week 

Bitcoin price hits $27K in new 9-month high as Fed injects $300B

Bitcoin hit new nine-month highs on March 17 as the latest events in the U.S. banking crisis boosted crypto markets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $27,025 on Bitstamp before consolidating. A catalyst for fresh upside had come overnight in the form of the Federal Reserve’s balance sheet data, which showed almost $300 billion being injected into the economy as part of the banking crisis response.Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, eyed specific levels up and down.“Chopperino land on Bitcoin, which means that we’ll probably have some sideways structures,” he wrote on Twitter. “Needs to hold $26K. If that holds, $28–30K is next. If it loses $26K, I’m punting around $25K for some longs. Relatively easy to understand.”

FUD of the Week 

Euler Finance hacked for over $195M in a flash loan attack

Lending protocol Eurler Finance faced a flash loan attack on March 13. The exploiter carried out multiple transactions, stealing nearly $196 million in stablecoins DAI and USDC, as well as staked Ether and wrapped Bitcoin. The attack was dubbed the largest hack of 2023 so far. A portion of the stolen funds started to be transferred to crypto mixer Tornado Cash shortly after a $1 million bounty was launched to identify the hacker. As of March 18, only a small portion of the funds had been recovered — around 3,000 Ether ($5.4 million).

Europol seizes $46M from crypto mixer after $2.88B allegedly laundered

Law enforcement agency Europol has seized assets of cryptocurrency mixer ChipMixer worth $46 million for its alleged involvement in money-laundering activities. ChipMixer’s website has been shut down and four servers hosting the application have been seized. Europol claims that ChipMixer has laundered over 152,000 BTC ($2.88 billion) since its inception in 2017.

FBI, NY authorities probes collapse of TerraUSD stablecoin

The U.S. Justice Department is reportedly investigating the collapse of the TerraClassicUSD (USTC) stablecoin, which contributed to a $40 billion wipeout in the Terra ecosystem last May. Former staff at Terraform Labs have been interrogated in recent weeks by U.S. agencies, including the FBI. The probe covers similar ground to a lawsuit filed against Terraform Labs and its founder Do Kwon by the U.S. Securities and Exchange Commission in February, including misleading investors.

Best Cointelegraph Features

4 out of 10 NFT sales are fake: Learn to spot the signs of wash trading

NFT wash trading inflates the volume on some platforms by 10x–20x the legitimate volume. Why is it encouraged, and what can be done about it?

All rise for the robot judge: AI and blockchain could transform the courtroom

Do the developers of legal bots have sufficient knowledge and experience of the law? Is the data used to “train” their algorithms timely? Will critical evidence be filtered out?

Crypto winter can take a toll on hodlers’ mental health

The relentless bear market, a string of high-profile criminal charges and the fall of trusted institutions have taken their toll on those actively involved in the crypto industry.

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The most engaging reads in blockchain. Delivered once a
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Editorial Staff
Cointelegraph Magazine writers and reporters contributed to this article.

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

Tornado Cash developer Alexey Pertsev to stay detained until next year’s hearing

Amid an ongoing investigation into crypto mixer Tornado Cash, the product’s developer, Alexey Pertsev, will be subject to at least another three months of detainment, as per a court ruling this week. Earlier in 2022, United States authorities flagged Tornado Cash as a tool nefarious parties allegedly used to launder funds. Pertsev was detained for suspicions of foul play, although the situation has drawn controversy.

US Senate committee schedules FTX hearing for Dec. 1, CFTC head to testify

A U.S. senate hearing slated for Dec. 1 will aim to look into FTX and the events surrounding its downfall. Titled “Why Congress Needs To Act: Lessons Learned From The FTX Collapse,” the hearing will feature Commodity Futures Trading Commission Chairman Rostin Behnam, among other witnesses. According to recent documentation from FTX’s Chapter 11 bankruptcy case, FTX Trading Ltd. owes a combined sum of more than $3 billion to its 50 largest creditors.

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American CryptoFed registration at risk as SEC alleges filing anomalies

American CryptoFed DAO is at risk of losing its registration as a legal entity after the United States Securities and Exchange Commission (SEC) dug up anomalies in the Form S-1 registration statement filed by the firm in September. According to the SEC, the form lacks vital information regarding American CryptoFed DAO, such as audited financial statements and details about its business and management. CryptoFed was the first decentralized autonomous organization (DAO) to get legal recognition in the United States in July 2021.

Bankrupt crypto exchange FTX begins strategic review of global assets

Defunct crypto exchange FTX launched a strategic review of its global assets as part of its recent bankruptcy filing, attempting to maximize recoverable value for stakeholders. The assets of 101 of 130 companies affiliated with FTX are also being reviewed. According to John J. Ray III, the new CEO of FTX, the affiliates are solvent and can be sold or restructured in order to reduce losses.

Amber Group’s co-founder Tiantian Kullander passes away at 30

Tiantian “TT” Kullander, co-founder of Amber Group, unexpectedly passed away in his sleep on Nov. 23, per a statement released by the firm. He was 30 years old and leaves behind a wife and a son. Kullander also sat on the board of the esports company Fnatic and founded KeeperDAO. Previously in his career, he worked in structured credit trading at Goldman Sachs and as an emerging markets trader at Morgan Stanley.  

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $16,531, Ether (ETH) at $1,200 and XRP at $0.40. The total market cap is at $834.17 billion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Huobi Token (HT) at 43.84%, Curve DAO Token (CRV) at 23.52%, and Litecoin (LTC) at 19.45%.  

The top three altcoin losers of the week are Chiliz (CHZ) at -35.17%, Chain (XCN) at -21.83%, and Algorand (ALGO) at -16.09%.For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

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Most Memorable Quotations

“If you go to a person who is not crypto savvy and you try to convince him to invest, especially in Brazil — the population has always been very skeptical of crypto. Now it’s harder.”

Thiago César, CEO of Transfero Group

“A general rule of thumb is if a company prints a token out of thin air and either sells it to retail, or relies on it as an asset, you should expect them to collapse eventually.”

Samson Mow, CEO of JAN3

“The NFT space is sure to stabilize and consolidate around the strongest communities, then we will see a second generation of smarter, more sustainable NFT models.”

Oscar Franklin Tan, chief financial officer and chief legal officer for Enjin

“If you see FUD out there – remember, our financials are public (we’re a public company).”

Brian Armstrong, CEO of Coinbase

“I was initially a crypto skeptic, but […] I have come to believe that crypto can enable the formation of useful businesses and technologies that heretofore could not be created.”

Bill Ackman, founder and CEO of Pershing Square Capital Management

“The recent implosion of FTX, a cryptocurrency exchange, has made it abundantly clear the digital asset industry has serious problems.”

Letter from U.S. Senators Richard Durbin, Tina Smith and Elizabeth Warren

Prediction of the Week 

Bitcoin price levels to watch as traders bet on sub-$14K BTC

Bitcoin’s price has largely struggled under $20,000 for much of November, according to Cointelegraph’s BTC price index.  

Pseudonymous Twitter user The London Crypto sees possible further downward price action for BTC based on history. “BTC has made a 77% correction in this bear market, compared to 84% in 2013 and 83% in 2017,” he tweeted on Nov. 21 with an accompanying chart. “Studying our previous cycles high vs lows, we can estimate the low for this bear to be the $10k-$12k range, followed by a high of $175k in 2024-2025.”

FUD of the Week 

HashFlare founders arrested in ‘astounding’ $575M crypto fraud scheme

Recently publicized court documentation revealed the arrest of Ivan Turõgin and Sergei Potapenko, founders of HashFlare — an allegedly fraudulent Bitcoin cloud mining operation. Started in 2015, HashFlare posed itself as a Bitcoin cloud mining company, but on the backend, its founders allegedly conducted multiple criminal acts, including numerous instances of wire fraud. HashFlare has seemingly not been active since 2019.

New York governor signs PoW mining moratorium into law

After passing multiple stages of approval in 2022, a two-year ban on proof-of-work (PoW) mining has been signed into law by New York’s governor, Kathy Hochul. The moratorium means new PoW mining operations cannot open in the state unless they utilize 100% renewable energy. Current PoW mining outfits in New York also will not be granted license renewal during the two-year ban.

American regulators to investigate Genesis and other crypto firms

Genesis Global Capital’s saga saw another chapter on Nov. 25, after the Alabama Securities Commission disclosed an ongoing investigation against the company and several other crypto firms in different U.S. states to determine whether they influenced investors on crypto-related securities without obtaining proper registration. Genesis has been in the spotlight since it revealed around $175 million worth of its funds are stuck in an FTX trading account. The company hired restructuring advisers to explore all possible options to avoid potential bankruptcy amid difficulties raising funds for its lending unit.

Best Cointelegraph Features

Election tally: Does blockchain beat the ballot box?

With election integrity under assault in the United States and elsewhere, is blockchain technology part of the solution? Greenland explores voting options.

My story of telling the SEC ‘I told you so’ on FTX

I asked the SEC to take public comments on issues related to cryptocurrency custodians and intermediary conflicts. The SEC declined to take my advice, and FTX fell apart soon after.

House on a hill: Top countries to buy real estate with crypto

More countries are beginning to allow real estate purchases using crypto, here are some of the top destinations.

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The most engaging reads in blockchain. Delivered once a
week.

Editorial Staff
Cointelegraph Magazine writers and reporters contributed to this article.

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

SBF received $1B in personal loans from Alameda: FTX bankruptcy filing

Documentation related to FTX’s bankruptcy proceedings revealed the firm was mismanaged on multiple levels. FTX Group was reportedly composed of multiple companies categorized into four silos. A $1 billion personal loan was reportedly allocated to former FTX CEO Sam Bankman-Fried from one of those silos. The documentation also revealed many other holes and oddities relating to the function of FTX. Several regulators are reportedly looking into FTX, including the Securities Commission of the Bahamas. The Financial Industry Regulatory Authority, a self-regulatory U.S. organization, has also opened a broader investigation into crypto-involved companies in general, evaluating their communications with the retail public.

Binance creates industry recovery fund to help projects struggling with liquidity

Binance CEO Changpeng Zhao unveiled his work on a new fund to help the struggling crypto sector — a sector which has been negatively affected by the fall of FTX. Zhao’s new fund looks to help by assisting “strong” crypto industry companies that have liquidity issues, the CEO said in a Nov. 14 tweet. Such companies should reach out to Binance Labs, as well as players looking to add capital to the fund. The fund will not go toward helping FTX, however, as specified by Zhao.

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Storming the ‘last bastion’: Angst and anger as NFTs claim high-culture status

NY Fed launches 12-week CBDC pilot program with major banks

For the next three months, the Federal Reserve Bank of New York’s Innovation Center will test a simulated central bank digital currency (CBDC) system with the cooperation of multiple banking behemoths. Citigroup, PNC Bank, BNY Mellon, Wells Fargo and others will transact simulated tokenized money via a distributed ledger, settled against simulated central bank reserves.

The FTX contagion: Which companies were affected by the FTX collapse?

The recent downfall of FTX has impacted the overall crypto space in multiple ways — from increased regulatory watch to companies having assets stuck with FTX. More than 10 companies have reported having felt negative effects from the FTX ordeal, often with millions of dollars in jeopardy. Companies include Galaxy Digital, Sequoia Capital, BlockFi, Crypto.com and Pantera Capital, among others. At this stage, the impacts on the affected companies do not appear to be devastating for the most part, although the details vary.

SEC pushes deadline to decide on ARK 21Shares spot Bitcoin ETF to January 2023

The wait continues for a decision on ARK 21Shares’ spot Bitcoin exchange-traded fund (ETF) from the United States Securities and Exchange Commission (SEC). The regulator has pushed its decision deadline to Jan. 27, 2023 regarding a rule change that would allow listing of the mainstream Bitcoin product. The commission has delayed its decision twice before on this particular product. Numerous Bitcoin ETFs have faced denials from the SEC in the past.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $16,577, Ether (ETH) at $1,205 and XRP at $0.38. The total market cap is at $828.34 billion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Trust Wallet Token (TWT) at 93.40%, GMX (GMX) at 20.40% and Toncoin (TON) at 18.41%.

The top three altcoin losers of the week are Casper (CSPR) at -20.66%, Solana (SOL) at -20.25% and Cronos (CRO) at -18.58%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

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Most Memorable Quotations

“In systems where there is no self-custody, the custodians accumulate too much power and then they can abuse that power.”

Michael Saylor, executive chairman of MicroStrategy

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”

John Ray III, new CEO of FTX

“I repeat… EXIT ALL THE MARKETS”

Il Capo Of Crypto, independent cryptocurrency trader and analyst

“Everything would be ~70% fixed right now if I hadn’t [filed for Chapter 11 bankruptcy]. […] But instead I filed, and the people in charge of it are trying to burn it all to the ground out of shame.”

Sam Bankman-Fried, former CEO of FTX

“I’m sure there are multiple players that will probably get impacted […] in the following weeks, you know, small, large — but I would say [FTX] in terms of magnitude will be one of the larger ones before the whole cycle really ends.”

CK Zheng, co-founder of ZX Squared Capital

“To date, efforts by billionaire crypto bros to deter meaningful legislation by flooding Washington with millions of dollars in campaign contributions and lobbying spending have been effective.”

Brad Sherman, United States Congressman

Prediction of the Week 

Bitcoin price may still drop 40% after FTX ‘Lehman moment’ — Analysis

Bitcoin fell below $16,000 early in the week. The asset subsequently rallied back to $17,000, only to face rejection around the level on multiple occasions throughout the week, according to Cointelegraph’s BTC price index. 

Due to the FTX situation, QCP Capital now expects that BTC may possibly fall to $12,000, according to its Elliot Wave theory chart analysis. 

“This underperformance of all crypto assets is here to stay until the bulk of uncertainty has cleared up — likely only near the turn of the new year,” QCP said on Telegram.

FUD of the Week 

Crypto.com accidentally sends 320k ETH to Gate.io, recovers funds days after

Speculation about the health and solvency of Crypto.com reached a boiling point this week after the digital asset exchange sent 340,000 ETH to Gate.io. The transfer was flagged as suspicious by some members of the crypto community because it occurred around the time that exchanges were publishing proof-of-reserves in the wake of FTX’s collapse. Crypto.com claims that 100% of user-owned cryptocurrencies are held in cold storage, so the transfer to Gate.io was confusing to some crypto sleuths. Crypto.com CEO Kris Marszalek later revealed that the funds were sent to Gate.io accidentally.

Huobi and Gate.io under fire for allegedly sharing snapshots using loaned funds

Speaking of Gate.io, it along with crypto exchange Huobi has been under fire for allegedly sharing outdated snapshots of its digital asset reserves that included loaned funds. Obviously, some investors were suspicious that Gate.io received a top-up from Crypto.com before publishing its proof-of-reserves. However, Gate.io founder Lin Han revealed that the snapshot in question was taken on Oct. 19, two days before Crypto.com accidentally transferred 240,000 ETH. Huobi, meanwhile, has yet to explain why it transferred 10,000 ETH to Binance and OKX wallets soon after releasing its snapshot.

FTX crisis could extend crypto winter to the end of 2023: Report

The 2022 bear market has been unlike anything we’ve ever seen in crypto, with the collective failures of Terra (LUNA), Celsius, Voyager, FTX and BlockFi still reverberating across the industry. According to new research from Coinbase, the FTX collapse and its resulting contagion effects could extend crypto winter for another year. “The unfortunate events surrounding FTX have undoubtedly damaged investor confidence in the digital asset class,” the report read. “Remediation will take time, and very likely this could extend crypto winter by several more months, perhaps through the end of 2023 in our view.”

Best Cointelegraph Features

Blockchain and the world’s growing plastic problem

“People are being asked to make changes to help mitigate climate change, but I can’t pull a CO2 molecule from the air and show it to you.”

Designing the metaverse: Location, location, location

“People imagine this as a second life… in the virtual world, people can have a better virtual house than others.”

Banks still show interest in digital assets and DeFi amid market chaos

Traditional financial institutions continue to demonstrate use cases for digital asset support, along with DeFi capabilities, despite current market conditions.

Subscribe
The most engaging reads in blockchain. Delivered once a
week.

Editorial Staff
Cointelegraph Magazine writers and reporters contributed to this article.

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

FTX and Binance’s ongoing saga: Everything that’s happened until now

An earthquake rattled the crypto space this week, its impact felt in numerous related stories regarding FTX, Alameda Research and Binance. Although the bad news came rolling in this week, suspicions relating to FTX’s status appear to have started on Nov. 2. The concerns had to do with a large number of FTX Token (FTT) held by Alameda (Sam Bankman-Fried, aka SBF, founded Alameda and co-founded FTX). By Nov. 6, Binance had decided it would sell its sizable position in FTT. FTX withdrawal issues surfaced on Nov. 7, symptomatic of a bank run. Binance expressed interest in buying FTX but declined the purchase, citing concerns on Nov. 9. 

Other developments throughout the week included SBF reportedly requesting $8 billion to cover exchange withdrawals and news of the situation affecting other big players such as Sequoia Capital, as well as related regulatory headlines. 

Nov. 11 saw SBF’s resignation as well as FTX, Alameda and FTX US applying for Chapter 11 bankruptcy in the United States. About 130 entities under FTX Group are filing for bankruptcy.

Breaking: Bahamas securities regulator freezes FTX assets

On Nov. 10, FTX saw its assets frozen and its registration suspended by the Securities Commission of The Bahamas, based on suspicions of mishandled client funds. A provisional liquidator was elected by the Bahamian Supreme Court, meaning FTX must now obtain permission to touch any of its assets. FTX is primarily based in the Bahamas, falling under its jurisdiction. The situation regarding FTX user withdrawals has been touch and go, with some withdrawals seemingly approved and funds leaving the exchange. Additionally, FTX negotiated a deal with Tron to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX to external wallets without penalty.

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Chainlink Labs offers proof-of-reserve service for embattled exchanges

Given the situation with FTX, talk has arisen around requiring crypto exchanges to come forward with proof-of-reserves, which would essentially give assurance that exchanges have enough assets to cover their liabilities. Chainlink Labs has developed a product that aims to ease that process for exchanges. Multiple crypto exchanges have come forward with intent to provide some kind of proof-of-reserves system (not necessarily Chainlink’s product, but some type of system in general), including Binance, which has already made headway on a proof-of-reserves system.

White House says ‘prudent regulation of cryptocurrencies‘ is needed, hinting at situation with FTX

This week’s turmoil has driven United States President Joe Biden’s administration to keep an eye on the crypto space, with the help of U.S. regulatory bodies for enforcement. “The administration […] has consistently maintained that without proper oversight, cryptocurrencies risk harming everyday Americans,” White House Press Secretary Karine Jean-Pierre said during a press briefing on Nov. 10. “The most recent news further underscores these concerns and highlights why prudent regulation of cryptocurrencies is indeed needed.”

Post-election roundup: Who were the pro- and anti-crypto winners and losers from the US Midterms?

The U.S. Midterm elections occurred on Nov. 8. The crypto space had a presence in the elections, spanning a broad number of stances and positions on industry regulation held by involved politicians. Among the mix, J.D. Vance, a known Bitcoin owner, won an Ohio Senate seat. Tom Emmer and Patrick McHenry, two figures in favor of crypto, also retained their positions in Minnesota and North Carolina, respectively. Brad Sherman, who is less favorable toward the crypto space, achieved re-election in California, however.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $16,932, Ether (ETH) at $1,274 and XRP at $0.37. The total market cap is at $859.61 billion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are PAX Gold (PAXG) at 5.69%, Gemini Dollar (GUSD) at 0.71% and Dai (DAI) at 0.14%.

The top three altcoin losers of the week are FTX Token (FTT) at -89.18%, Solana (SOL) at -50.30% and Loopring (LRC) at -38.47%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

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Most Memorable Quotations

“If the world economy is a circulatory system, it is stagnant. Parts are dying.”

Michel Khazzaka, cryptographer and founder of Valuechain

“If you look at it closely, fractional NFTs represent the very essence of the Web3 concept.”

Alexei Kulevets, co-founder and CEO of Walken

“I think what people often misunderstand is that Web3 is not an exclusive new internet. Inside Web3 we also find Web2, the same way we found the former World Wide Web within Web2.”

Max Kordek, president of Lisk

“With a global MiCA [Markets in Crypto-Assets regulatory framework], the FTX crash would not have happened.”

Stefan Berger, member of the European Parliament Committee on Economic and Monetary Affairs

“All crypto exchanges should do merkle-tree proof-of-reserves.”

Changpeng “CZ” Zhao, CEO of Binance

“FTX.com was an offshore exchange not regulated by the SEC. The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore. Punishing US companies for this makes no sense.”

Brian Armstrong, CEO of Coinbase

Prediction of the Week 

Bitcoin price bottom takes shape as ‘old coins’ hit a record 78% of supply

Bitcoin started the week above $21,000, although the asset fell notably after the FTX news broke, dipping below $16,000 on Nov. 9, according to Cointelegraph’s BTC price index. BTC subsequently bounced back up to $18,000, but then declined once again. 

Pseudonymous Decentrader co-founder Filbfilb explained why the FTX situation is such a big industry event. His explanation essentially stated that all was fine during the most recent crypto industry bull market, but players became overextended. Then the bear market came along and declining prices created holes in company balance sheets. He explained that a healthy recovery could be a multi-year effort.

FUD of the Week 

Report: Tether freezes $46M of FTX’s USDT, setting new precedent

Stablecoin issuer Tether Limited has seemingly frozen about $46 million worth of USDT held in FTX’s Tron blockchain wallet, based on blockchain observations from Whale Alert on Nov. 10. Tether has not previously frozen a company or exchange wallet, only privately-owned wallets in tandem with regulatory investigations. In comments to Cointelegraph, a Tether spokesperson did not confirm the suspected freeze but noted the firm’s regular communication with law enforcement.

Bitcoin miner Iris Energy faces $103M default claim from creditors

Bear market casualties continued this week, as news surfaced of renewable energy Bitcoin mining operation Iris Energy’s financial struggles. According to a default notice issued by mining rig manufacturer Bitmain Technologies, the firm reportedly owes $103 million in total. Multiple factors have seemingly contributed to Iris Energy’s declining financial position, such as Bitcoin’s depressed price and electrical cost hikes. 

BlockFi limits platform activity, including a halt on client withdrawals

Withdrawals and other features have been paused on BlockFi, with the digital asset lending platform explaining that it is waiting for clarity around the FTX ordeal. Additionally, BlockFi noted that customers should refrain from depositing on BlockFi wallets or its interest platform. BlockFi and FTX US previously struck a deal involving a $400 million line of credit given to BlockFi.

Best Cointelegraph Features

How to stop your crypto community from imploding

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Some central banks have dropped out of the digital currency race

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Could Bitcoin have launched in the 1990s — Or was it waiting for Satoshi?

With the internet, elliptic curve cryptography, even Merkle trees and PoW protocols all present, Bitcoin was “technically possible” in 1994.

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Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

JPMorgan executes first DeFi trade on public blockchain

A cross-border currency swap was carried out on a public blockchain by JPMorgan as part of a pilot program involving the Monetary Authority of Singapore’s (MAS) Project Guardian, SBI Digital Asset Holdings, Oliver Wyman Forum and DBS Bank. The Polygon blockchain hosted the swap between tokenized deposits of the Japanese yen and the Singapore dollar, helped by smart contract technology from Aave.

UnionBank of the Philippines launches Bitcoin and Ethereum trading

Philippine banking giant UnionBank now offers certain retail clients access to Bitcoin and Ether trading and custody, thanks to a collaborative pilot between the bank and crypto company Metaco. The offering from UnionBank utilizes Harmonize, a platform from Metaco. UnionBank operates under the regulatory approval of the Bangko Sentral ng Pilipinas, the central bank of the Philippines. The offering has been almost a year in the making, the result of a January 2022 partnership between Metaco and UnionBank. This is also not UnionBank’s first foray into the crypto sector.

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NFT clone Punks: Right or wrong?

Come one, come all! Meta to bring NFT minting and trading to Instagram

New upcoming features on Instagram will help users create, show off and also sell nonfungible tokens (NFTs) on the social media platform. A social media operation under Meta (formerly Facebook), Instagram will provide an “end-to-end toolkit” for NFTs, according to a recent announcement from Meta. NFTs created on Instagram can be sold on the platform as well as off of it. The Solana blockchain was also added to the list of compatible blockchains for Instagram, as per the announcement. 

Elon Musk faces class-action suit over mass Twitter layoffs

Elon Musk has already implemented several changes to Twitter since finalizing its acquisition on Oct. 27. After firing top-level Twitter brass, Musk has reportedly begun significant staff layoffs. The affected staff are reportedly fighting back via a class-action lawsuit aimed at Musk that essentially claims the layoffs required more advance notice. A regulatory filing also recently publicized Musk as Twitter’s only board member after he removed all others.

You have our swords: 12 independent entities pledge legal support for Ripple

The United States Securities and Exchange Commission’s (SEC) legal case against Ripple continues after nearly two years. The latest developments see official support from 12 different entities backing Ripple in the form of submitted amicus briefs. The Chamber of Digital Commerce and Coinbase sit among the list of supporters. The SEC claims Ripple’s XRP sale was an unregistered securities offering. The case’s outcome can potentially affect the crypto industry as a whole.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $20,861, Ether (ETH) at $1,626 and XRP at $0.49. The total market cap is at $1.03 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Loopring (LRC) at 45.27%, Dogecoin (DOGE) at 41.72% and Arweave (AR) at 40.73%.  

The top three altcoin losers of the week are Aptos (APT) at -11.80%, Klaytn (KLAY) at -7.22% and Terra Classic (LUNC) at -6.77%.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

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Investing in Blockchain Gaming: Why VCs Are Betting Big

Most Memorable Quotations

“If the world economy is a circulatory system, it is stagnant. Parts are dying.

Ray Youssef, co-founder and CEO of Paxful

“I think DeFi will replace institutions based on innovative use cases that we are starting to see today.

Mike Belshe, co-founder and CEO of BitGo

“Great cryptocurrencies have to go through several collapses.

Charles Hoskinson, founder of Cardano

“Crypto exchanges often determine the winners and losers of the crypto world, as listed on one is an almost surefire way to raise your token price and provide early investors an opportunity for liquidity.

Habeeb Syed, senior associate attorney at Vicente Sederberg

“I think people care about compounding value rather than going public or being private.

Guillaume Pousaz, founder and CEO of Checkout.com

“It’s easier to hire talent in the bear market.

Changpeng “CZ” Zhao, CEO of Binance

Prediction of the Week 

Bitcoin price bottom takes shape as ‘old coins’ hit a record 78% of supply

Bitcoin saw some price volatility this week, making a move past $21,000 on Nov. 4, according to Cointelegraph’s BTC price index. The U.S. Federal Reserve also raised interest rates another 0.75%, coinciding with some of Bitcoin’s volatility.   

According to data from Glassnode, the number of Bitcoin held for six months or longer now accounts for most of Bitcoin’s circulating supply — over 78% — as of October’s end. This could mean lessened odds of significant selling activity ahead.

FUD of the Week

Deribit crypto exchange halts withdrawals amid $28M hot wallet hack

Crypto derivatives exchange Deribit suffered a hot wallet attack this week, with $28 million stolen. The exchange, however, will use its reserves to pay for the loss, and customers should not feel any effects aside from the platform pausing withdrawals while it ensures sound security. Other than that, the exchange is reportedly functioning normally. Deribit typically holds 99% of customers’ assets in cold storage, which limited the hack. 

‘Everything is fine’ — Gala Games calls for calm after fears of multi-billion dollar hack

FUD surrounding Gala Games this week turned out to be unfounded. In short, fear ensued after PeckShield noticed $2 billion in GALA tokens were seemingly created by a lone wallet address. GALA fell notably in price as a result. The real reason for the odd wallet activity? Gala Games’ affiliated bridge pNetwork drained a vulnerable liquidity pool before anyone could hack it. GALA’s price regained some losses after the explanation was communicated to the public.

Santander UK limits crypto transactions for its customers

Effective on Nov. 15, banking customers of Santander in the United Kingdom will not be able to send more than 1,000 pounds to crypto exchanges in any given transaction, and not more than 3,000 pounds total per month. The bank claims the limits will help protect customers, given the lack of regulatory protections in crypto. The limits pertain to all outgoing pound transactions that relate to crypto. Santander also hinted at further restrictions in the future.

Best Cointelegraph Features

Andy Warhol would have loved (or possibly hated) NFTs

“There were a lot of cypherpunks at those early Bitcoin meetups that I went to.”

Can internet outages really disrupt crypto networks?

“We’re going to use whatever seems easiest — whatever’s going to work. And when it’s not working, we’re going to ditch it.”

Developers need to stop crypto hackers — or face regulation in 2023

One report indicates that more than $2.5 billion in crypto was lost to cross-chain bridge hacks over the last two years alone.

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The most engaging reads in blockchain. Delivered once a
week.

Editorial Staff
Cointelegraph Magazine writers and reporters contributed to this article.