The FTX Collapse Leads Regulators to Exert Further Control over the Crypto Industry

Alexander Salazar
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<strong>The FTX Collapse Leads Regulators to Exert Further Control over the Crypto Industry</strong>

Supporters of the DeFi industry have criticized the DCCPA, as it encourages centralization and plays the game of leading stock exchanges. Jake Chervinsky considers that no law in the US Congress could prevent an offshore company like FTX from bankruptcy.

More than a week later, the crypto industry has begun to suffer the aftershocks from the FTX collapse. There is growing fear about what measures the financial regulators involved in the case might take. If there was already instability regarding trust in the cryptocurrency sector, it should now be entirely in ruins.

Since Sam Bankman-Fried had a good relationship with legislators, the FTX case should be a disgrace to the politicians.

Changpeng Zhao Calls for More Self-Regulation in the Crypto Space

Many politicians, including Gary Gensler, the chairman of the SEC, spoke out immediately after the collapse of FTX. Although the official has punished and prosecuted various projects for months, he called for further regulation in the sector.

Many senators are introducing the Digital Assets Consumer Protection Act (DCCPA) in the US Senate to push clearly stated cryptocurrency regulations. However, advocates of the DeFi industry have criticized the proposal, as it promotes centralization and plays the game of leading stock exchanges.

They consider the law imposes the outdated and flawed design of the traditional financial world, which Sam Bankman-Fried defends. Meanwhile, Changpeng Zhao, the CEO of Binance, calls for more self-regulation by the other centralized players in the cryptocurrency sector.

Clearly-Stated Regulations Might Prevent Crypto Companies from Going Bankrupt

Sam Bankman-Fried joins Do Kwon, Kyle Davies, Zu Shu, and Alex Maschinsky on a long list of failures in the industry. Although none had legal consequences, the developer of Tornado Cash Code, an open-source software, went to jail.

Many regulators have suspicions about the decentralized financial system, but the target of their resentment is wrong. New centralized players converge their power and meet novel unregulated sectors of the crypto industry.

Unclearly stated regulations in key world jurisdictions have led many players into a bleak world. Brian Armstrong, the CEO of Coinbase, considers the new regulatory efforts from the EU, Hong Kong, and Singapore as positive steps.

Despite some shortcomings, the EU has set clear rules on how exchanges should handle customer funds. Stefan Berger, a member of the EU Parliament, believes future regulation will prevent other situations like the Lehmann Brothers case in the sector.

The Regulation of the Crypto Industry Requires Using Global Technologies

Since FTX was a Bahamas-based cryptocurrency exchange, it benefited from favorable legal provisions while having a US branch. Although Bankman-Fried said he ensured security on the platform in the United States, both went bankrupt.

According to Jake Chervinsky, the head of policy at the Blockchain Association, this is one of the worst problems in the industry. He thinks that no law in the US Congress could prevent an offshore company from bankruptcy.

Corruptible industry players should apply in the Bahamas, the US, the EU, or elsewhere to make globally coordinated legislation possible. Furthermore, trading platforms should be under scrutiny by regulators and their clients, which requires intuitive and accessible technologies.

By Alexander Salazar

Will the Shiba Inu (SHIB) price be able to experience a New Year’s Eve Rally?

Audy Castañeda
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<strong>Will the Shiba Inu (SHIB) price be able to experience a New Year’s Eve Rally?</strong>

The Shiba Inu price has been a roller coaster for traders.

Shiba Inu has been high on the Ethereum whales’ buying list despite SHIB price action looking largely barren. With the support of the ETH whales and other macroeconomic factors driving the price action, does the SHIB price have any chance of moving higher before the end of the year?

Shiba Inu (SHIB), the dog-themed meme cryptocurrency, has had its fair share of popularity in the market. However, along with the larger market, the SHIB price struggled last week after FTX crashed.

After hitting a multi-week high of $0.00001519 on Oct. 29, SHIB began its consolidation and downtrend. Nonetheless, with the global crypto market looking gloomy on the price front, SHIB managed to briefly overtake Solana, to become the 13th largest cryptocurrency.

So far, Shiba Inu had maintained his 14th position in the market, after crossing the market cap of Tron. SHIB traded at $0.000009105 on November 15, noting losses of 16.59% on the weekly.

Shiba Inu: The ETH Whales Favorite

As recently reported, the aggressive burning of SHIB and hoarding of Shiba Inu tokens has worked in favor of the meme cryptocurrency’s price. A recent update from WhaleStats showed that the top 5,000 ETH whales were worth $75.28 million in SHIB.

In fact, SHIB topped the ETH whale list in terms of altcoin holdings.

Shiba Inu was also one of the most used smart contracts among the top 1,000 ETH whales in the last 24 hours.

Clearly, SHIB was not just an asset that the ETH whales also had, but also used. This was a positive sign for the Shiba Inu, and could act in favor of the token’s price trajectory.

While ETH whales were bullish on SHIB, the Shiba Inu community also had high expectations for the SHIB price. The SHIB community on CoinMarketCap estimates that the token will value at an average price of $0.00001123 by the end of the year.

From the current price level of $0.0000091, the SHIB would need to appreciate by a little more than 20% to hit that target.

SHIB Supply Is Dwindling, but Is there Demand?

On November 15, the Shiba Inu consumption rate skyrocketed by 1,100%. The recent burn reduced the total amount of SHIB burned from the total supply to 410 billion SHIB tokens, with 27 billion of those tokens staked.

The main group that led the price action was retail traders. A look at IntoTheBlock’s In/Out of Money Around Price indicator suggested that the $0.0000080 level is currently a solid support level. At this price, 24,800 addresses hold 18.12 billion SHIB tokens

By Audy Castaneda

Failed Binance-FTX Deal to Be Investigated by UK Lawmakers

Audy Castañeda
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<strong>Failed Binance-FTX Deal to Be Investigated by UK Lawmakers</strong>

The news comes as Binance appears as a witness to a UK-led investigation into the FTX crisis.

FTX and Binance are cryptocurrency exchange houses, that is, their purpose was and is to offer their clients a space to exchange digital currencies for other digital currencies, or for traditional money and vice versa.

On Nov. 9, Binance announced that it had decided not to purchase FTX, “after completing the due process audit of the company.”

Binance has to present all the evidence about the now-suspended deal to buy FTX.com assets to UK lawmakers, Bloomberg reported.

Binance will reportedly provide documentation on its deal negotiations with FTX and decision-making for the sale of FTX’s native token FTT.

Exchange to Provide Documents to UK Regulators

An exchange spokesperson told the news outlet: “Binance will provide the documents that it has promised to share.”

The news comes as former FTX competitor and largest exchange by volume, Binance, appears as a witness in a UK-led investigation into the exchange.

Daniel Trinder, Binance’s vice president of government affairs, said there was no intent to kill the competition. Instead, Trinder argued that after the deal was announced, they did not believe the assets were “worth it.”

Trinder promised that Binance would provide the committee with internal documents on the aborted deal.

Meanwhile, UK lawmakers warn of cascading effects on the market when FTX files for bankruptcy.

Cascading Effect of FTX Bankruptcy

Ian Taylor, the chief executive of Crypto UK, told the Treasury select committee that, “What we heard is that most of the funding on that platform came from institutional investors.”

He added that, “There are now many UK-regulated crypto exchanges that accept retail money, and at the moment, hopefully, they are doing well. We haven’t seen anything. But… this is a superfluid situation.”

As many companies have money trapped in the exchange, several cryptocurrency companies have started to experience the full effects of the FTX crash.

Sequoia Capital, a venture capital firm, reported a loss on its exchange investment of $213.5 million. Solana-based game studio Star Atlas has revealed that the FTX accident cost it half its cash flow.

Meanwhile, the Monetary Authority of Singapore (MAS) clarified that the exchange does not operate in Singapore after it was alleged that many Singaporeans lost money when the exchange went down.

The FTX Group is claimed to have over a million creditors as it moves towards bankruptcy.

Travis Kling, director of cryptocurrency hedge fund Ikigai, told The Guardian: “There is a lot of uncertainty about what will happen next… At some point, we will be able to make a better decision about whether or not Ikigai will continue.” just move into relaxation mode.”

By Audy Castaneda

Although the Ripple Network Grows Considerably, Investors Doubt the Price of XRP

Alexander Salazar
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<strong>Although the Ripple Network Grows Considerably, Investors Doubt the Price of XRP</strong>

Although the interest of traders has increased by around 118%, the value of XRP has gone down. Although the token is slightly recovering from its lower levels, a rally into positive territory might drive its price higher.

Many believe Ripple will win the case against the US Securities and Exchange Commission (SEC), causing the price of XRP to fall.

The excitement of a potential victory led the XRP price to rise by almost 15% from October 4th to 9th. However, the collapse of the overall market and the recent FTX crash have pushed XRP as low as USD 0.3436.

Traders Hope the Price of XRP to Increase Significantly

Investors and traders alike remain hopeful though XRP has lost around 89.62% from its all-time high. Bitcoin (BTC) and most altcoins are posting losses in daily data.

Like other cryptocurrencies, the price of XRP has fallen despite the increased interest from traders. The trading volumes of the token have increased by around 118% over the last 24 hours, according to CoinMarketCap.

The seventh strongest altcoin by market capitalization is hovering near its long-term support, not far from USD 0.32.

Despite the apparent considerably bearish price action, on-chain data indicate that Ripple has shown bullish deviations.

There has been a significant increase in daily active addresses (DAAs), recently reaching 48,666, along with high transaction volumes. However, the coin might face problems as the DAA fell by more than 25% in one day.

However, the Ripple network also showed a massive rally, reaching a yearly high not seen since November 2021. A healthy rebound in its growth might help the price rise if the bulls dominate the market.

Although the overall market sentiment remains bearish, nobody knows where the growth of the network and XRP activity might go.

The Behavior of the Ripple Whales over the Last 24 Hours

According to WhaleStats, the Ripple whales have recently transferred around 90 XRP, a curious move. Those long-term holders sent those tokens from unknown wallets to cryptocurrency exchanges.

Previously, the whales made two transactions in which they sent XRP from an unknown cryptocurrency wallet. After that, they transferred 30,000,000 XRP, equivalent to over USD 10.23 million, from an unknown address.

The whales have sent more than USD 35 million worth of XRP to cryptocurrency exchanges. That suggests the sale or redistribution of funds by those long-term holders.

Based on a short-term and long-term MVRV analysis, the price of XRP is slightly rebounding from its lower levels. However, a rally into positive territory might push the asset price out of the negative zone.

On-chain data indicates that the XRP price might be preparing for a bearish action based on the distribution of whales. If the bears dominate the price action, the crypto asset might test the zone below USD 0.30 again.

If not, the next target might be a bullish rally toward the USD 0.45 and USD 0.47 areas. However, investors should research the behavior of XRP before buying it to make better trading decisions.

By Alexander Salazar

Traders Wonder whether the Price of FTT Might Drop to Zero

Alexander Salazar
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<strong>Traders Wonder whether the Price of FTT Might Drop to Zero</strong>

Hackers siphoned off more than USD 473 million from FTX accounts after it officially filed for bankruptcy protection. Since FTT only aimed to incentivize investors to prefer the now-defunct exchange, no one knows whether its price will rise again.

FTT recently crashed when the now-defunct cryptocurrency exchange FTX descended into chaos. Its price fell to a low of USD 1.36, about 95% below the high in November.

Since the total market capitalization of FTT dipped to USD 469 million, many fear its exchange rate will hit zero.

The Collapse of FTX Causes a Crisis in the Crypto Market

Alameda Research, the sister company of FTX, secretly bought unusually high amounts of FTT. That situation raised suspicions among many investors, who proceeded to sell their token holdings. Since FTX clients also emptied their accounts, the cryptocurrency exchange faced liquidity problems.

Finally, Sam Bankman-Fried decided that FTX, its US subsidiary, and Alameda Research should file for bankruptcy protection.

That caused a crisis in the crypto market, as the prices of most cryptocurrencies plummeted. For example, Bitcoin (BTC) fell to USD 15,800, its lowest level in 2 years. Meanwhile, Solana (SOL) and other altcoins closely related to FTX fell further.

The market capitalization of all cryptocurrencies dropped from USD trillion to around USD 833 billion.

After FTX officially filed for bankruptcy protection, more than USD 473 million flowed out of client accounts. Hackers may have been responsible for that attack, from which it was possible to recover some funds.

Regulators in the Bahamas and the United States are also investigating what may have caused the accident. In addition, most analysts believe that Sam Bankman-Fried will face legal charges.

Over the weekend, there was a launch of 200 million FTT tokens, contrary to the usual schedule. Binance and other cryptocurrency exchanges announced that they would not allow FTT deposits, but FTX has remained silent.

Despite Uncertainty about Its Use, FTT Could Rise Again

Many cryptocurrency traders wonder whether the price of FTT may fall to zero after the bankruptcy of FTX. Since that coin only aimed to incentivize investors to prefer the now-defunct exchange, no one knows what its use will be.

The price of FTT might drop to zero as it no longer plays a role. However, there have already been other cases of discrepancy between the value of native tokens of centralized exchanges (CEX) and their financial health.

CEL, the native token of the Celsius Network, rose sharply a few months after the company filed for bankruptcy protection. Similarly, the price of VGX rebounded after Voyager Digital went bankrupt.

Other examples are Terra Luna Classic (LUNC) and TerraClassicUSD (USTC), whose trading volume is comparatively high, as they still seem to have value.

Nobody can rule out that the price of FTT might rise again in the coming months. However, investors should be cautious as such an illiquid currency could be subject to scams and other forms of manipulation.

By Alexander Salazar

DYDX and TWT Prices Soar as DeFi Services Go Safe

Audy Castañeda
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<strong>DYDX and TWT Prices Soar as DeFi Services Go Safe</strong>

CZ Binance tweeted about how the Trust Wallet provides users with self-custody.

Over the past two weeks, unfolding events have led people to consider decentralized wallets and exchanges over their centralized counterparts.

Coins behind wallets and decentralized exchanges are picking up this week. Trust Wallet (TWT) is up 129%, GMX 55%, and DYDX 70% since the opening of the November 10 candle, according to data from TradingView.

The tweets from Changpeng Zhao, the CEO of Binance, about the Trust Wallet acted as a catalyst for the TWT rally. He tweeted that, “We are not just a CEX. We offer choices. Store crypto yourself? Read this article I wrote 2 years ago. The 15 minutes read will save you money and headache later.”

Collapse of Centralized Exchanges

Events involving FTX unfolded one after another, eventually resulting in the FTX group filing for bankruptcy. Just when the crypto community thought it couldn’t get any worse, the FTX exchange suffered a $400 million hack. The community speculates that it was an inside job.

After the FTX crash, centralized exchanges published their Proof of Reserves to promote transparency. During said announcements, it was discovered that Crypto.com has Shiba Inu as 20% of its reserves.

Before publishing its Proof of Reserves, the exchange withdrew 210 million USDT from Binance and 50 million USDC from Circle. Other than that, several other discoveries led to a 50% tank in the price of CRO, Crypto.com’s native token.

Zhao tweeted that, “If an exchange has to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away.”

Crypto.com is also one of the sponsors of the upcoming 2022 FIFA World Cup, as is FTX, which has spent millions of dollars sponsoring sporting events.

Transition from Centralization to Decentralized Services

During bull markets, users preferred centralized exchanges over decentralized ones due to the easy and convenient user interface (UI). They found DEX unusable due to various complexities present.

The collapse of several centralized exchanges during 2022 has now prompted users to transition to their decentralized counterparts. There is an understanding of the importance of self-custody, and the popular crypto phrase, “It’s not your keys, it’s not your crypto,” says it all. Notable crypto influencers are urging to get cryptocurrencies off exchanges.

There is also a recent rise in the search term ‘crypto wallets’ according to Google Trends data.

To conclude, it is worth considering that TWT will face immediate resistance at $2.6427, which is 2 Fibonacci retracement levels drawn from the March 2022 highs, to the May 2022 lows.

On the other hand, DYDX appears to form a solid double-bottom base. With volume support, a close above the neckline at $2.578 can send the price above the $5 level.

By Audy Castaneda

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