Shiba Inu Army Reaches New Major Milestone in Just 2 Days

According to data shared by WhaleStats platform that track the largest wallets on Ethereum and several other chains, over the past two days, the amount of SHIB holders has become several thousand bigger. The price of the meme coin has remained unaffected, though.

On average, the 100 largest wallets on Ethereum chain hold slightly more than 2 billion SHIB coins. In the meantime, SHIB adoption continues to expand. As reported by U.Today earlier, an Australia-based Shiba Wings diner I expected to open “really soon”. The restaurant is fully crypto integrated thanks to NowPayments crypto gateway and is ready to integrate Shibarium when this long-expected upgrade is ready and gets rolled out.

💰 Solana Bear That SBF Dunked On With $3 Offer Gets the Last Laugh

Back in January 2021, when Solana was a relatively new blockchain network and Sam Bankman-Fried wasn’t quite the mythical crypto figure he’d soon become, the FTX founder publicly antagonized a trader who was bearish on Solana’s prospects.

The tweet became legendary in crypto. But now, following the collapse of FTX and Sam Bankman-Fried's bankruptcy, the tables have turned. On November 11, when Bloomberg estimated SBF’s post-FTX-bankruptcy net worth at just $3, CoinMamba tweeted, “I'll buy everything you have, right now, at $3. Sell me all you want. Then go fuck off.”

MAS Explains Reasons for Not Alerting Local Users About FTX

 The Singaporean regulator explains the difference between Binance and FTX.

The Monetary Authority of Singapore stated that there was no reason to caution investors against FTX crypto exchange as it did with Binance because the former did not actively solicit users in Singapore.

This comes amid earlier speculations stating that the regulator’s action against Binance caused Singaporean users to shift to FTX thereby causing them to be caught in the exchange’s collapse.

FTX Did Not Solicit Singapore Users

In a statement published on Monday (November 21, 2022), MAS responded to “questions and misconceptions” following FTX’s downfall. The Singaporean financial regulator said it was not possible to protect locals who used the Bahamas-based FTX as the crypto exchange was not licensed by the agency and operated offshore.

MAS also addressed concerns about its treatment of the world’s largest crypto exchange Binance, and FTX. The regulatory watchdog said that while both crypto exchanges were unregulated in Singapore, there was a difference between them.

The regulator received several complaints about Binance between January and August 2021, adding that the exchange giant was soliciting Singapore users without having a license. Consequently, MAS placed Binance on the Investor Alert List (IAL). Also, the Commercial Affairs Department (CAD) investigated Binance for possible violation of the Payment Services Act (PSA) on MAS’ referral.

Meanwhile, FTX did not go through the same treatment as its rival because, according to the regulator, it did not specifically solicit users in Singapore and did not conduct trades in the local currency, even though residents could access the Bahamas-based platform online. There was also no evidence that the firm violated the PS Act.

“While both Binance and FTX are not licensed here, there is a clear difference between the two: Binance was actively soliciting users in Singapore while FTX was not. Binance in fact went to the extent of offering listings in Singapore dollars and accepted Singapore-specific payment modes such as PayNow and PayLah.”MAS Repeats Warning About Crypto Risks

MAS also reiterated its warning about the crypto industry, stating that the FTX crisis was an example that engaging in cryptocurrency was risky.

“The ongoing turmoil in the crypto industry serves as a reminder of the huge risks of dealing in cryptocurrencies. As MAS has repeatedly stated, there is no protection for customers who deal in cryptocurrencies. They can lose all their money.”

The collapse of one of the largest crypto exchanges has affected all facets of the industry, both retail and institutional actors. As previously reported by CryptoPotato, court filings revealed that the bankrupt FTX owed over $3 billion to its top 50 creditors.

Gemini Is Working With Genesis to Find Solution for Earn Users

 The report comes as possible bankruptcy looms over Genesis as it struggles to raise fresh capital.

Crypto exchange Gemini revealed working closely with Genesis Trading and its parent company Digital Currency Group, Inc, to find a solution for Earn users to redeem their funds.

In a seris of tweets, the Winklevoss-led platform noted that it is working to provide a material informational update soon.

“This remains our highest priority and we understand Genesis and DCG remain committed to exploring every possible option to fulfill their obligations to Earn users.”

Gemini assured that the turmoil had not impacted any other products and services on its platform and that rest of its operations are working normally.

The Unraveling

The on-chain activity revealed that Genesis had significant interactions with Alameda, Gemini, and BlockFi via their OTC trading desk. FTT was also a top token received and sent in those transactions. However, Genesis is yet to share more information to bring clarity on the extent of the exposure and capital required to make customers whole.

Due to the exposure to the bankrupt FTX and its sister trading firm, Alameda, Genesis Trading – touted as the backbone infrastructure of the institutional investor base for the crypto market – is now scrambling for more liquidity injection. Genesis and its subsidiaries are owned by Barry Silbert’s Digital Currency Group (DCG). Reports suggest it had around $175 million locked in a trading account with FTX.

CryptoPotato reported earlier that the platform sought a $1 billion emergency loan from its investors. But it failed to score the funding, which prompted its decision to suspend withdrawals from its lending arm, citing “abnormal withdrawal requests which have exceeded its current liquidity” on November 16. To keep operations running smoothly, its parent firm, Digital Currency Group, initially poured in $140 million.

In response to Genesis suspending withdrawals, Gemini halted withdrawals from its Earn product, in which the former is a lending partner.

In the Brink of Bankruptcy?

Genesis is now looking to raise more fresh funding for its lending unit from potential investors. However, a failure to do so may push the company to file for bankruptcy, according to a new report. Despite this, a representative of for Genesis told Bloomberg that it has no plans to file for bankruptcy imminently and went on to add,

“Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

Genesis reportedly aprached Binance for an investment as well as private equity giant Apollo Global Management for support. The CZ-led crypto exchange, however, has turned down the request.

Cardano’s Algorithmic Stablecoin DJED to Launch in January 2023

 The stablecoin will be backed and overcollateralized using solely cryptocurrency, including ADA and SHEN – the smart contract’s reserve token. 

Shahaf Bar-Geffen – CEO of COTI, a stablecoin development company – revealed the launch date for Cardano’s new algorithmic stablecoin at Cardano Summit on Monday. 

After a successful audit, the over-collateralized DJED token will go live in January 2023.

What is DJED?

DJED is Cardano’s attempt to create a price-stable digital asset backed by ADA – the network’s native cryptocurrency. 

By sending ADA to a given smart contract address on Cardano, users will receive the same dollar value worth of DJED in return. Likewise, by sending 1 DJED back to the smart contract, the sender will receive $1 worth of ADA. 

This model could theoretically collapse if ADA were to experience major downside volatility, causing circulating DJED tokens to no longer be fully backed. As such, the smart contract will also include a reserve currency, SHEN, to cover ADA’s price fluctuations, ensure price stability, and guarantee a collateralization rate of 400-800%.

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SHEN holders will be rewarded with fees every time someone exchanges DJED or SHEN for ADA (or vice versa), creating an incentive to hold the token and help maintain the stablecoin peg ratio. 

Unlike DJED, Shen will not be price-pegged, leaving it open to volatility just like ADA. However, the smart contract will prevent anyone from minting new SHEN tokens once the smart contract reaches a maximum threshold, in order not to dilute existing holders. 

Recent market events have proven again that we need a safe haven from volatility, and Djed will serve as this safe haven in the Cardano network,” said Shahaf Bar-Geffen. “Not only do we need a stablecoin, but we need one that is decentralized, and has on-chain proof of reserves.”

Proof of Reserves

“Proof of reserves,” is a growing trend among crypto industry giants in the aftermath of FTX’s fallout, in which the exchange went bankrupt after allegedly misappropriating depositors’ funds for lending activity. This left the exchange unable to satisfy client withdrawals following a bank run earlier this month. 

Rival exchanges including Binance and Bitstamp have agreed to provide blockchain-based proof of reserves to ensure customers that their funds remain safe at all times. Grayscale, however – the owner of the world’s largest Bitcoin fund, GBTC – refused to provide such transparency this weekend, citing “security concerns.”

Reserve transparency is a long-time expectation for stablecoin providers which rely on adequate reserves to satisfy token redemptions at all times. Tether, the issuer of USDT, has faced years of scrutiny over the legitimacy of its $60 billion + reserves but has thus far managed to satisfy redemptions when under stress. 

Organizations like Terra have attempted to design algorithmic stablecoins that remove the requirement for trust in a centralized issuer. However, the ecosystem’s UST and LUNA tokens both collapsed to zero in May, making industry participants and regulators wary of similar models. 

The three top stablecoins – USDT, USDC, and BUSD – are all backed solely by cash and US Treasury bills, per their latest attestation reports

Here’s Why Tim Draper Still Believes Bitcoin Will Reach $250K

 Draper recently shared why he still sees Bitcoin at $250,000 and probably beyond despite the intense crypto winter. 

American billionaire venture capitalist Tim Draper has reiterated his bullish support for Bitcoin despite the crypto winter intensified by the sudden crash of the FTX exchange. 

Draper predicted last June, during the bull market, that the leading crypto asset would reach $250,000 by the end of 2022. However, his prediction is less likely to happen this year since the largest cryptocurrency is now trading below $17,000 following the FTX fiasco. 

Women and Retailers Can Push Bitcoin to $250k

Nonetheless, the billionaire still believes Bitcoin will hit the $250,000 target and probably go beyond once the market recovers and people, especially women, start using the cryptocurrency for daily shopping. 

According to Draper, women control 80% of the total retail spending, which includes clothing, shelter, and food. 

He added that women’s interest in cryptocurrency has also improved. In the past, women controlled 7.14% of Bitcoin wallets, but today, the number has more than doubled to 16.6%. 

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The billionaire investor further outlined another reason that could ultimately push the price of Bitcoin is when merchants start accepting BTC for payments. 

“When women realize they can get a discount by paying in bitcoin or retailers realize they can double their income by accepting bitcoin, it’s going to move pretty quickly,” he said. 

The crypto asset is trading at around $16,000 after reaching nearly $70,000 in 2021. Although it is down more than 75% from its ATH, a growing list of companies worldwide have adopted the cryptocurrency as a payment option, with the latest being the South African supermarket chain Pick n Pay. 

Draper’s Bitcoin Plans

Draper started making the $250,000 Bitcoin prediction in 2020 while describing what the United States would look like if he became president for a day. 

Aside from the forecasts, the billionaire venture capitalist noted that he would explore other aspects of the crypto asset if given a chance. Draper said he would try out a Bitcoin-based universal basic income (UBI) or tax system.

The crypto proponent also stated that he sees Bitcoin as a hedge against bad governance during the just concluded Web Submit 2022. 

Ethereum Dips Below $1200 as FTX Drainer Swaps 5K ETH For Bitcoin

 The FTX account drainer swapped around $6M worth of ETH for wrapped Bitcoin.

Ethereum’s price is trading below $1,200 on Sunday, charting a decrease of around 3.5% in the past 24 hours.

This happens as the FTX account drainer is swapping ETH for wrapped Bitcoin.

• Data from the popular security resource, PeckShield, revealed that the address that drained funds from FTX is swapping ether for BTC.
• The “FTX Account Drainer” dumped around $6 million worth of ETH (around 5K ETH) and bought 357 renBTC.

Source: Twitter

 

• This is causing pressure on ETH’s spot price, which is currently down some 3.5% (on Binance) for the past 24 hours.
• As to who the drainer may be, CryptoPotato recently reported that the Securities Commission of the Bahamas assumed control of associated assets. Per a media release shared by authorities:

On 12 November 2022, the Securities Commission of The Bahamas, in the exercise of its powers as regulator acting under the authority of an Order made by the Supreme Court of The Bahamas, took the action of directing the transfer of all digital assets of FTX Digital Markets to a digital wallet controlled by the Commission, for safekeeping.