Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and wors
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…
cointelegraph.com