Weekly Market Highlights #20: November 7 - November 13
Seven days FTX changed the entire crypto world.
✨Last week was the worst period in the 13-year history of the crypto industry because of one organization, one person who was fully respected by the community because of what he did in the past but turned out to be a liar.
✨Over the past week, the crypto market decreased ~$192B (from ~$1030B to ~$838B) of its total capitalization
✨Bitcoin Testing $17K
✅As the saga between Binance and FTX was unraveling, Bitcoin dumps to a 2-year low at $15,5K
✅ Bitcoin's price went through a rollercoaster over the past 24 hours. The situation looked grim until a few hours ago, as the cryptocurrency was headed south and traded below $16K.
✅ Binance's CEO revealed that his company would spearhead an "industry recovery fund" to help projects that are strong but currently experiencing liquidity crisis. This immediately affected Bitcoin's price, which shot up toward $17K, consolidating at $16,7K, where it currently trades.
✨Altcoins Follow Through
✅BSCS is currently trading at ~$0,00964: +3,67% from its 7-day all-time low of $0,009298.
✅After a bad period, most of the leading altcoins also followed through, charting intraday gains between 1% and 5%. ETH is up by about 2.7%, BNB – by 1.6%, and so forth. Solana jumped by 7.7% in the past 24 hours and MATIC is up around 4.4%.
✅Meanwhile, the biggest gainer over the past day is the TWT token which soared by a whopping 46%. KCS is the second-best performer with 15% gains, the same as AXS.
✅The broader market sentiment plunged toward extreme fear Friday following the news of FTX's Bankruptcy. The total cryptocurrency market capitalization is also down to ~$838B.
✨Bitcoin Fear and Greed Index is 24 - Extreme Fear, lower than at the beginning of the week (33)
✨Dominance:
✅BTC: 38.3%
✅ETH: 18.2%
Nigeria’s Presidential Candidate Adebayo to Create 30 Million Jobs Using Crypto
✨Adewole Adebayo – one of the main contestants to become Nigeria’s next President – promised to use blockchain technology and cryptocurrencies to generate up to 30 million job positions for locals.
Crypto to the Rescue
✅In a recent TV appearance, the presidential candidate of Nigeria’s Social Democratic Party (SDP) – Adewole Adebayo – vowed to solve the nation’s unemployment problems by deploying various technologies, including blockchain and digital currencies.
✅The 50-year-old lawyer said he had discussed the idea with the US Black Chamber of Commerce and the National Chamber of Commerce. He has worked as a broad adviser for people part of these organizations, assuring they have created numerous job positions across the globe in the past years:
“I told them, ‘Look, you know we have done these things before in many countries, and I have been your adviser, and we have done all of these things. In my country, I know the objective conditions we can create for you to come to Nigeria, and we can create jobs.”
✅Nigeria’s unemployment rate has gradually increased in the last decade, hitting almost 10% in 2022. Adebayo believes his eventual administration could join forces with 2,000 domestic crypto companies and significantly decrease those figures:
“We discovered that we can create 10 – 30 million jobs – using 2,000 companies and bringing the production they are doing into the country.”
💫A KuCoin study estimated in April that 33.4 million Nigerians (35% of those aged 18 to 60) have owned or traded digital assets in the previous six months.
FTX Calamity Could be the Last Crisis of the Bear Market, Says Cardano’s Hoskinson
🤵♂️Charles Hoskinson – Founder of the blockchain platform Cardano – thinks the turbulence around FTX and its native token – FTT – could be the last adverse event of the ongoing crypto winter.
▶️He finds it expected that the entire digital asset space was negatively affected by the news since Sam Bankman-Fried’s trading venue is among the leading entities in its field. Its crisis causes a “cascade through the cryptocurrency market.”
It’s Always Darkest Before the Dawn
❗️While 2022 has not been kind to the crypto industry, things have even worsened in the past several days. Binance vowed to liquidate 23 million of its FTT tokens which caused the latter’s price crash. In addition, the company and FTX have begun negotiations so Binance can buy out the latter following massive liquidity issues.
🔻Those setbacks triggered a massive collapse of the entire crypto market, whose capitalization plunged below $900B. Bitcoin, for one, nosedived to a two-year low of nearly $15K
⭐️According to Cardano’s Founder Charles Hoskinson, though, this grim situation could be the last negative event before the market starts thriving again:
“I think this might be the bottom, one of the last ones to deal with. It will be hard to predict how bad it will be, and it could be very bad. There are a few more firms like FTX, Alameda like Three Arrows Capital, etc. At least in this cycle, I truly hope this is the last cycle of this nature.”
Chainlink Touts Proof-of-Reserve as Solution to Crypto Contagion
Chainlink is pushing a new system called proof-of-reserve to provide desperately needed transparency in the crypto industry.
✅In a tweet on November 11 the Chainlink team asked if crypto will continue repeating the mistakes of the traditional black-box financial industry.
Chainlink PoR
🔹Proof-of-reserve is also known as money-in-hand or a reserve or treasury backing up tokens or assets. Organizations can use them to verify that sufficient reserves have been independently audited. This will give customers more confidence in the asset or organization. Chainlink cited some examples:
“PoR is also useful for verifying centralized exchange asset reserves, off-chain bank account balances, cross-chain collateral, real-world asset reserves, and much more.”
🔹Its proof-of-reserve tools were first launched in 2020 and have come to light again following this week’s FTX meltdown.
🔹According to the website, Chainlink PoR utilizes the “largest decentralized collection of security-reviewed and Sybil-resistant node operators in the industry” to acquire and verify reserve data.
🔹The PoR contracts can perform multiple functions, such as scheduling regular automated audits. Additionally, they can protect DeFi applications from insolvency by auditing the reserves of tokens used as collateral.
🔹On November 9, Binance CEO Changpeng Zhao said all crypto exchanges should do Merkle-tree proof-of-reserves. “Banks run on fractional reserves. Crypto exchanges should not,” he added.
🔹Furthering its commitment to transparency, Binance published cold wallet addresses and balances for 6 of its 600 coins on November 10. It added that the rest will follow along with a PoR system.
El Salvador Does Not Hold Any BTC on FTX
⭐️The President of El Salvador – Nayib Bukele – reportedly dismissed rumors that his country holds its bitcoin stash on the battered cryptocurrency exchange FTX. The information was revealed by Binance’s CEO – Changpeng Zhao – who said he discussed the matter with the political leader.
☑️The Central American nation became the first to make bitcoin legal tender inside its borders. It has purchased over 2,381 coins on a macroeconomic level which equals over $41 million (at current prices).
✅The entire cryptocurrency industry has been under heavy fire following the FTX meltdown and its native token – FTT crash.
✅Numerous companies, including CoinShares and Galaxy Digital, said they have significant exposure to the distressed entity. Some individuals even hinted that El Salvador holds its entire bitcoin possessions on FTX.
✅CZ – Founder and CEO of Binance – took to Twitter to reject the rumors. He disclosed having a conversation with El Salvador’s President Nayib Bukele, who assured that the country has “never had any business” with SBF’s trading venue.
✅The CEO of Galaxy Digital – Mike Novogratz – was one of the people who shared the rumors initially but later apologized for it. He thanked Zhao for clarifying the situation and apologized for believing the “fake news” before they were officially confirmed.
✅El Salvador made the headlines in September 2021 by declaring bitcoin an official payment method on its soil.
Luxury Hotel in Dubai Accepts Shiba Inu as Payment Method
W Dubai – The Palm and three of Subway’s outlets in Germany are the latest entities to accept digital currencies for payments.
👑The five-star hotel W Dubai – The Palm allowed guests to pay for accommodation in Shiba Inu (SHIB). Another luxurious venue in the city where travelers can settle bills in digital currencies, such as BTC and ETH, is Palazzo Versace Dubai.
⭐️The American multinational fast food restaurant franchise – Subway – also jumped on the bandwagon. Three of its outlets in Berlin started accepting bitcoin as payment.
⭐️The five-star Palazzo Versace Dubai also recently embraced digital currencies as a settlement. The supported assets are Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB).
▶️Daniel Hinze – an owner of one of the Subway outlets – admitted entering bitcoin’s ecosystem five years ago. He has increased his interest in the asset during 2021 and 2022, arguing BTC could be “the better money system.” Hinze has also tried to promote the coin over the years, offering a 50% discount to customers who pay for their sandwiches in bitcoin.
🤝Subway partnered with the Swiss-based company Lipa to activate the crypto opportunity. The latter’s CEO – Bastien Feder – claimed his company applies a 1% merchant charge much cheaper than other traditional settlement systems.
📣Stay tuned! The market's highlights will be updated by BSCStation 😎
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