Categories: Business

First Mover Americas: FTX Faces Prison Costs

[ad_1]

This text initially appeared in First Mover, CoinDesk’s every day e-newsletter placing the newest strikes in crypto markets in context. Subscribe to get it in your inbox daily.

Newest Costs

CoinDesk Market Index (CMI)

850.19

+6.0 ▲ 0.7%

Bitcoin (BTC)

$16,671

+59.6 ▲ 0.4%

Ethereum (ETH)

$1,247

+10.2 ▲ 0.8%

S&P 500 futures

3,985.00

−15.3 ▼ 0.4%

FTSE 100

7,336.54

+18.5 ▲ 0.3%

Treasury Yield 10 Years

3.81%

▼ 0.0

BTC/ETH costs per CoinDesk Indices, as of seven a.m. ET (11 a.m. UTC)

Prime Tales

Bankrupt crypto alternate FTX faces a felony investigation within the Bahamas following its dramatic collapse final week. Authorities within the Caribbean nation the place FTX has its headquarters are investigating whether or not any felony misconduct occurred within the alternate’s decline and chapter. Sam Bankman-Fried’s crypto alternate went from being one of many world’s largest to submitting for chapter in just every week, after a CoinDesk article raised questions in regards to the monetary stability of its sister firm Alameda Analysis.

The native token of Binance-owned Belief Pockets soared 80% on Sunday after CEO Changpeng Zhao inspired crypto customers to take private management of their digital belongings. Zhao made the warning following the collapse of Binance’s rival FTX, which Binance briefly agreed to rescue earlier than aborting its plan after it took a better have a look at FTX’s stability sheet. Belief Pockets is a decentralized scorching pockets facilitating the storage of cryptocurrencies. Its native token TWT permits holders to take part in choice making associated to the app’s options. On the time of writing, TWT was up about 50% within the final 24 hours at $2.44, in accordance with knowledge by CoinMarketCap.

Crypto.com CEO Kris Marszalek has tried to assuage fears that the alternate might be the subsequent to face a liquidity disaster. Crypto.com’s native token CRO has dropped round 45% within the final week, whereas its every day quantity was all the way down to about $284 million in October in contrast with final yr’s highs of round $4 billion. In a YouTube interview, Marszalek reiterated that Crypto.com’s stability sheet is powerful and its publicity to FTT was restricted. He added that CRO, not like FTX’s native token FTT, has by no means been used as mortgage collateral.

(Delphi Digital)

This chart exhibits similarities between the present bitcoin bear market and the 2018 market swoon.
The most recent decline is paying homage to the November 2018 capitulation that noticed bitcoin drop practically 50% to $3,200 exactly one yr after the bull run peaked.