Značka: crypto.com

FTX collapse could see crypto sector layoffs accelerate

FTX collapse could see crypto sector layoffs accelerate

podľa | nov 15, 2022 | 0 |

The fall of crypto exchange FTX and potential resulting contagion could lead to an acceleration of crypto-company layoffs in the coming months, recruitment specialists warn.A Nov. 14 report from crypto data aggregator platform CoinGecko found that as of Nov. 13, the crypto space has seen 4,695 employees let go in 2022 so far, presenting 4% of staff cuts across all “technology startups.” However, the authors of the report warn that crypto layoffs could increase in the coming months when the “full impact” of FTX’s sudden collapse takes effect: “With the collapse of FTX since November 2 and its full impact on the cryptocurrency space still unfolding, further cryptocurrency layoffs may occur in the months to follow.”Speaking to Cointelegraph, CryptoRecruit founder Neil Dundon argues that while FTX’s events will cause some layoffs, it hasn’t changed the broader trend that crypto recruitment follows crypto prices.“Layoffs have been consistent effectively following the same trend as crypto prices. FTX hasn’t changed that broader trend albeit a tragic event,” he said, adding: “There will be layoffs because of it but that will present opportunities for good projects to scoop up good talent which we are collecting.”Kevin Gibson, the founder of recruitment firm Proof of Search was less optimistic, sharing that he had one candidate that was due to start employment today but had his offer “pulled” during the first call with the company. Gibson said it was hard to comment on how the FTX collapse will shake out as it’s “changing daily” but said his candidate’s experience “will not be an isolated incident.”Companies across the crypto sector have already undergone a number of layoffs throughout the year as a result of the market downturn. Among the most recent staff cuts in the industry include payment processor Stripe’s layoff of 1,000 employees, Flow blockchain developer Dapper Lab’s 22% cut, and venture capital firm Digital Currency Group’s 10% layoff. All layoffs took effect in early November.Digital asset-focused investment firm Galaxy Digital was also reported to be eyeing off a 20% cut on Nov. 1. Coinbase is understood to have cut another 60 staff on Nov. 10, according to Yahoo Finance.Related: Tech talent migrates to Web3 as large companies face layoffsThe latest CoinGecko report follows an earlier Nov. 4 report which looked into the cities most impacted by cryptocurrency layoffs. At the top of the list was San Francisco — home to Silicon Valley, one of the world’s largest technology and innovation hubs — which was followed by Dubai, New York City and Singapore.

Čítaj viac
Bitcoin derivatives data reflects traders’ mixed feelings below $17,000

Bitcoin derivatives data reflects traders’ mixed feelings below $17,000

podľa | nov 14, 2022 | 0 |

Bitcoin (BTC) lost 25.4% in 48 hours, bottoming at $15,590 on Nov. 9 as investors rushed to exit positions after the second-largest cryptocurrency exchange, FTX, halted withdrawals. More importantly, the sub-$17,000 levels were last seen almost two years prior, and the fear of contagion became evident.The move liquidated $285 million worth of leverage long (bull) positions, leading some traders to predict a potential downside of $13,800.What an exciting time to be alive! Loving the volatility these elites are creating! They really wana buy LOW before the next bull cycle! Thank goodness we were ready months in advanced!Are we gona hit that 13k target? Who cares, its a huge buy opportunity long term! $BTC #BTC pic.twitter.com/2v0ThmIoNG— JD (@jaydee_757) November 14, 2022As described by independent market analyst Jaydee_757, the bearish trend continues to exert its pressure, with $17,200 as a resistance level. Still, such an analysis provides no guarantee that the ultimate $13,800 bottom will be hit.Curiously, the price action coincided with improving conditions for global equity markets on Oct. 4, as the S&P 500 index gained 6.4% between Nov. 10 and Nov. 11 and the tech-heavy Nasdaq Composite rallied 9.5%. Hence, at least from a technical perspective, Bitcoin completely decoupled from traditional finance.Additional uncertainty on Bitcoin has been brought on by Grayscale Bitcoin Trust shares trading on over-the-counter stock markets after the $11.4 billion fund discount to its assets surpassed 40%.watching GBTC liquidity and lenders exposure to said product for contagion riskseems someone is selling a lot of GBTCdiscount is now >40% and widening, implied BTC price is $9K, and a lot of GBTC is sitting in toxic places atm— Vance Spencer (@pythianism) November 11, 2022

As noted by Vance Spencer, the implied BTC price according to the funds’ trading is below $9,000, and pressure should continue if some holders use their shares as collateral for loans.Still, the negative sentiment that caused Bitcoin to break below $20,000 does not mean professional investors are bearish at the current price levels.Margin traders did not close their longsMonitoring margin and options markets provide excellent insight into how professional traders are positioned, allowing investors to borrow cryptocurrency to leverage their trading position. For instance, one can increase exposure by borrowing stablecoins to buy an additional Bitcoin position. On the other hand, Bitcoin borrowers can only short the cryptocurrency as they bet on its price declining. Unlike futures contracts, the balance between margin longs and shorts isn’t always matched.OKX USDT/BTC margin lending ratio. Source: OKXThe above chart shows that OKX traders’ margin lending ratio increased from Nov. 8 to Nov. 10, signaling that traders did not close their leverage longs despite the 25.4% price correction.Furthermore, the metric continues to favor stablecoin borrowing by a wide margin, indicating traders have been holding bullish positions.Option markets flipped bearishTraders should scan options markets to understand whether Bitcoin can reclaim the $18,500 support. The 25% delta skew is a telling sign whenever arbitrage desks and market makers are overcharging for upside or downside protection.The indicator compares similar call (buy) and put (sell) options and will turn positive when fear is prevalent because the protective put options premium is higher than risk call options.The skew indicator will move above 10% if traders fear a Bitcoin price crash. On the other hand, generalized excitement reflects a negative 10% skew.Bitcoin 60-day options 25% delta skew: Source: LaevitasAs displayed above, the 25% delta skew had been below 10% since Oct. 26, but it quickly moved above that threshold on Nov. 8, suggesting options traders were pricing a higher risk of unexpected price dumps.Whenever this metric stands above 10%, it signals that traders are fearful and reflects a lack of interest in offering downside protection.Related: Crypto.com’s CRO is in trouble, but a 50% price rebound is in playFUD dismissal does not happen overnightDespite the bearish Bitcoin options indicator, the OKX margin lending rate showed whales and market makers maintaining bullish bets. The contagion fear might explain the mixed feeling as investors struggle to interpret recent movements by the Crypto.com exchange, including an “accidental” transfer of 320,000 Ether (ETH) to Gate.io. Run on Crypto com starts after FTX collapse. Investors began pulling funds from Singapore-based crypto exchange in a sign that the dramatic collapse of FTX is sparking contagion among exchanges. Cronos, token underpinning Crypto com business, has plunged. https://t.co/evk4J1vnnL pic.twitter.com/wMJmvch2D0— Holger Zschaepitz (@Schuldensuehner) November 14, 2022

Analyst Holger Zschaepitz’s post describes investors’ current sentiment as unwilling to take risks on centralized exchanges offering similar products and services from the now-bankrupt FTX. Consequently, derivatives are reflecting low confidence in regaining the $18,500 support until more data shows that the cryptocurrency ecosystem’s liquidity has been restored.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac
Crypto.com CEO addresses whereabouts of $1B in stablecoins sent to FTX

Crypto.com CEO addresses whereabouts of $1B in stablecoins sent to FTX

podľa | nov 14, 2022 | 0 |

During a live ask-me-anything (AMA) session with users on Monday, Crypto.com CEO Kris Marszalek explained that the firm sent large-sum stablecoins to troubled cryptocurrency exchange FTX to fulfill liquidity within customers’ orders at the time when FTX was still functional. As told by Marszalek: “Over a year, $1B was moved to FTX and we recovered all of this. We only had exposure of under $10 million when FTX shut down. And FTX was a trading venue where this is one of the few trading venues with decent liquidity for some of the coins like the ones I mentioned earlier.”During the session, Marszalek reassured users that the exchange was not halting withdrawals. Although, a higher volume of requests has led to a backlog of customer service tickets. The Crypto.com chief then stated that only three coins, two of which are FTX tokens and the other being a securitized token, currently have their withdrawal functions suspended on the exchange.Marszalek also denied allegations that the exchange was using its native token, CRO, as collateral for loans: “We’ve never used it, and we haven’t needed to use it,” he said, pointing out that the exchange has a “very simple business that generates a fairly decent amount of revenue,” opting to focus on that direction instead.Finally, in response to users questioning why approximately 20% of the exchange’s reserves are in memecoin Shiba Inu (SHIB), Marszalek explained that they were simply customer deposits:”And it so happens that last year DOGE, and SHIB were two extremely hot meme coins. And people bought a lot. And they’re holding it; they didn’t sell it. We have no control over what you guys buy. You buy it; we will start it will keep it safe.”Like many other exchanges, Crypto.com has seen a flurry of withdrawals in the aftermath of FTX’s collapse. The firm also became the target of wide-ranging conspiracy theories on Twitter after it was uncovered that the exchange accidentally sent 320,000 Ether (ETH) to Gate.io before recovering the funds shortly after. 

Čítaj viac
Crypto.com’s CRO is in trouble, but a 50% price rebound is in play

Crypto.com’s CRO is in trouble, but a 50% price rebound is in play

podľa | nov 14, 2022 | 0 |

Crypto.com’s native token Cronos (CRO) is showing restraint on Nov. 14 against mounting sell-pressure building in the wake of the FTX’s dramatic collapse last week. Now, the CRO/USD pair is eyeing a watershed price recovery.On Nov. 14, CRO’s price wobbled between profits and losses, trading around $0.069 a day after crashing to $0.05, its lowest level since April 2020 — that’s a 60% price decline from November’s peak of around $0.178.CRO/USD weekly price chart. Source: TradingViewCRO funding rate drops to -3%The period of CRO’s price decline occurred alongside a sharp drop in the token’s perpetual futures funding rates.Funding rates are recurring payments made by traders based on the difference between the prices in the futures and the spot market. A positive funding rate means bullish traders (long positions) pay bearish traders (short positions), representing their confidence about a price rally.Conversely, a negative funding rate means short traders pay long traders to keep their positions open. On Nov. 14, CRO’s funding rates on Huobi and OKX dropped to minus 3%, showing traders are extremely bearish on the token.CRO funding rates history. Source: Coinglass.com“This is literally the exact same dynamic that occurred before Celsius and FTX collapsed,” warned Dylan LeClair, senior analyst at digital asset fund UTXO Management on Nov. 13, when CRO funding rates were near minus 2%.FTX contagion fears spread to Crypto.com The CRO sell-off started from fears of contagion amid the FTX fiasco, particularly concerns that Crypto.com, a Singapore-based crypto exchange, would collapse in the same manner as FTX.At the core of these worries is potential insolvency, with analysts pointing out that Crypto.com is holding low-liquid cryptocurrencies like Shiba Inu (SHIB) and its own token CRO as reserves, which reportedly make up 40% of the exchange’s total assets. 4.https://t.co/INIxikfNzy holds $1.6B worth of BTC/ETH/USDT/USDC/DAI/BUSD assets, accounting for 60%.40% of assets are low liquidity assets.— Lookonchain (@lookonchain) November 13, 2022In addition, Crypto.com also moved $210 million worth of stablecoins from Binance and Circle before demonstrating its reserves to the public. Binance CEO Changpeng Zhao confirmed the move, urging caution, the day before CRO dropped to its April 2020 low.If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. Stay #SAFU. — CZ Binance (@cz_binance) November 13, 2022

What’s more, Crypto.com also misconducted a $400 million Ether (ETH) transaction, sending it to a Gate.io exchange wallet instead of its cold storage. Later, the exchange did manage to recover the funds, but that also raised a lot of questions. Crypto_com CEO is claiming they “accidentally” sent $400 million of their eth to the wrong wallet.He’s either lying, or incompetent. https://t.co/hWXvPqBime— Coffeezilla (@coffeebreak_YT) November 13, 2022

Overall, Crypto.com saw its users withdraw $14 million in ETH and $39 million in other tokens over the weekend, according to data tracked by Argus Inc.50% Cronos price relief rally ahead?Strictly from a technical perspective, however, CRO’s price could nevertheless see a potential relief rally in the coming weeks.A set of indicators support the said bullish outlook, including CRO’s weekly relative strength index (RSI), which dropped to nearly 30, or nearly “oversold” territory. A similar drop in June earlier this year had preceded a 75% recovery rally from $0.099 to $0.162, as shown below.CRO/USD weekly price chart. Source: TradingViewThe other bullish indicator includes strong historical support of $0.061. In addition, CRO’s current price range of $0.061 and $0.111 has the token’s highest volume profile visible range (VPVR) on record. In other words, CRO price could recover to $0.111, up over 50% from the current price levels, as its next upside target. Related: Exchange outflows hit historic highs as Bitcoin investors self-custodyConversely, CRO/USD falling alongside funding rates suggests that its drop may have been driven by futures markets, which was also the case with Terra’s collapse in May. Thus, the persistent bearish sentiment across the entire cryptocurrency market could dampen CRO’s recovery prospects.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac
Načítava

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy