Category Archives: cryptopotato.com

Elon Musk recently said that he had a conversation with Sam Bankman-Fried before the Twitter deal. He also shared some predictions going forward.

The world’s richest man recently joined a discussion on Twitter with over 60,000 listeners to talk about the FTX hack and bankruptcy.
Musk revealed that he had a conversation with the exchange’s former CEO – Sam Bankman-Fried and that his opinion of him wasn’t the best.

… I got a ton of people telling he’s got huge amounts of money that he wants to invest in the Twitter deal and I talked to him for about half an hour and I know my bullshit meter was redlining. It was like, this dude is bullshit – that was my impression.
Musk said he hadn’t heard of him before that, while adding:
[…] Everyone including major investment banks – everyone was talking about him like he’s walking on water and has a zillion dollars. And that was not my impression – that dude is just, there’s something wrong, and he does not have capital and he will not come through. That was my prediction.

Later on, Musk also reiterated the importance of keeping funds on cold storage. He also said:

I think there probably is a future for Bitcoin, Ethereum, and DOGE. I can’t really speak to the others. But if you’ve got one of those three in a cold wallet and off an exchange, I think my guess is it works out well.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

The past couple of days have been a complete rollercoaster in the cryptocurrency field, and there are no signs of slowing down.
Just yesterday, FTX officially filed for voluntary Chapter 11 Bankruptcy proceedings in the US, sending the markets into another meltdown.
Bitcoin Plunges Toward $16K
Bitcoin’s price can’t catch a break. After attempting a recovery following positive CPI numbers Thursday, the cryptocurrency experienced another meltdown on Friday.
BTC plunged from above $18K down to almost $16K (on Binance).
Source: Binance via TradingView
As seen in the above chart, the cryptocurrency has since recovered to where it currently trades at around $18,800, but it remains down 3% in the past 24 hours.

The problems with FTX don’t seem to stop. After failing to honor customer withdrawals, revealing a multi-billion hole in its balance sheet, and ultimately declaring bankruptcy, the exchange is suffering another major exploit.
Millions of dollars seem to have been drained from FTX addresses.

Upwards of $400 million in crypto left the exchange wallets late Friday night with little to no explanations as to why that happened.
The company’s General Counsel, Ryne Miller, took to Twitter to explain that they are investigating.

Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.

He also explained that the company initiated precautionary steps to move all of the cryptocurrency to cold storage.
It was also reported that the FTX official Telegram group saw admins claim that the exchange was hacked.

FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans.
The story is developing. 

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

FTX has lost several potential rescuers after shady details of the internal workings continue to emerge. The biggest setback was Binance pulling out of the deal.
But according to the crypto giant’s CEO, the deal with FTX did not make sense.

While speaking at the Indonesia Fintech Summit, Changpeng “CZ” Zhao weighed on the takeover that never materialized and the reason behind it.

“From a financial perspective, there is a big hole. From new users, we have very high overlaps. We cover all the regions they cover and they have much less users than us. From a technology or product perspective, I think we have a superior product. They don’t have anything we don’t have.”

According to CZ, the original intention was to “protect” the users. However, the reports of misappropriating user funds as well as probes from US regulatory agencies prompted Binance to call off the takeover.
The exec also said that there will be shift in regulatory perspective.
Earlier, watchdogs were more concerned about KYC/AML compliances. But with FTX going down, the focus will be on exchange operations, business models, and proof-of-reserves.
Bankman-Fried had reportedly approached stablecoin issuer Tether, crypto exchange  and Kraken OKX as well as venture capital firm Sequoia Capital for $1 billion or more from each of the platforms.
Tether CTO Paolo Ardoino confirmed that having no plans to invest or lend money to FTX or its sister trading company, Alameda, which is at the center of the debacle.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

FTX’s collapse has significantly dented the confidence of investors in centralized crypto exchanges. Amidst the subsequent financial turmoil and reports about the troubled crypto exchange tapping customer funds to fund risky bets, the golden rule of crypto – “not your keys, not your coins” has taken a center stage in popular discourse once again.

Abdicating control over users’ coins has cost many dearly. As a result, mass withdrawals from exchanges have now been reported.
According to CryptoQuant, over 80,000 BTC have left exchange wallets in the past day. Investors are withdrawing their Bitcoin to store them in places other than an exchange, data showed.

The report stated,
“The last few days were an absolute mess for the crypto-industry. FTX going bankrupt, searching for a bail-out and Binance might jump in to help. Time will tell if that actually materialize. In the meantime, investors have lost trust on central exchanges. This is perfectly visualized on the Exchange Reserves & Exchange Netflow.”

On-chain data also suggested that well over 5 billion stablecoins outflows from exchanges were tracked by CryptoQuant. The figures appear to be the largest since June 15 as the volatility stemming from the FTX drama continued to intensify.
On the other hand, the number of transactions withdrawing stablecoins from exchanges has rocketed above 57,900 from 7,016 just a week prior.
Due to the massive outflows from crypto exchanges, hardware-based cryptocurrency wallet provider Ledger experienced “few scalability challenges” following server outages.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

The past seven days were undoubtedly the most emotional, unexpected, and for many – devastating in a long time. One of the world’s leading cryptocurrency exchanges – FTX – filed for a voluntary Chapter 11 Bankruptcy with the US after failing to honor customer withdrawals and revealing a multi-billion liquidity hole.
It’s not particularly clear how it all went down and when exactly FTX started having issues due to the complete lack of transparency on behalf of now-former CEO Sam Bankman-Fried. There’s also not a lot of information on how much money the exchange has been funneling to SBF-owned trading firm Alameda Research, which is also part of the bankruptcy proceedings.
One thing is certain, though – the exchange has left thousands, if not millions, of people without access to their crypto investments, and it remains unclear if and when they could get any of it back.
In a clear blow to the industry’s integrity, many participants are in disbelief, predicting even tougher times ahead as contagion will start spreading in terms of valuation also in terms of regulation.
It’s worth noting that Binance signed an LOI to acquire FTX in full but pulled out of the deal after conducting due diligence. CZ said that the hole in the exchange’s book is too considerable to move forward.

The events of recent days have highlighted the importance of functioning and reliable on- and off-ramps.
Transak, a leading Web3 onboarding infrastructure provider, is taking a step in this direction, announcing the launch of its crypto-to-fiat off-ramping service. Let’s unpack.

What is Transak?
Transak is a leading Web3 onboarding infrastructure provider. Its API-driven solutions enable web3 platforms to onboard users to 130+ crypto assets from 125+ countries, abstracting away the complexity of user KYC, risk monitoring & compliance, payment methods, and customer support.
Transak’s On-Ramp widget can be integrated into an app in just a few lines of code. Transak is backed by top VCs, including Consensys, Animoca Brands, and graduated from the Tachyon accelerator program.
Fiat-to-Crypto Off-Ramp
The team has just announced the launch of its new crypto-to-fiat off-ramping service.
Currently, the process of selling crypto is very long and involves risk. With this solution, a user just needs to access Transak from any of the leading dApps, choose a crypto asset, enter the amount they want to off-ramp, provide their bank account details and make the transaction.
This enables not only native users to move their funds but also gives non-native users the confidence to interact with web3, as now they have a clear path to liquidate their crypto holdings to fiat anytime.
The service currently supports 40+ crypto assets like Bitcoin, Ethereum, Solana, and also stablecoins like USDC and DAI across multiple chains.
Users from UK and EURO-supported countries can sell their crypto assets via Transak and transfer funds directly into their bank accounts, making the once multi-step and tiring process quite seamless.
The solution is currently available for all users in the UK and EURO-supported countries but will soon expand to 125+ countries like the US, India, and others that are already supported by Transak through its on-ramp solution.
Speaking on the matter was Yeshu Agarwal, CTO of Transak, who said:
We are very excited to announce the release of Transak’s off-ramp services, as we know how important it is for any industry to provide entry and exit options to its users. Without a simpler solution for such transactions, the adoption by mainstream users will always be limited.
Recently integrated by AAVE, Transak is already helping the user onboarding for Metamask, TrustWallet, Ledger, LBank, Decentraland, Splinterlands, Zed.run, Sushi, Quickswap, and others.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

FTX has filed for Chapter 11 Proceedings in the United States. This follows the fiasco over the past couple of days where the company failed to honor its customer’s withdrawal requests.

In a press release shared minutes ago, FTX announced that the group will be filing for Chapter 11 Proceedings in the United States.
According to the release, FTX, Alameda Research, as well as 130 additional affiliated companies that are associated with FTX, have commenced the voluntary proceedings under Chapter 11.
Sam Bankman-Fried has resigned as CEO.
Commenting on the matter was the newly-appointed CEO of FTX Group – John J. Ray III, who said:

The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maxmize recoveries for stakeholders. The FTX Group has valuable assets that can only be effectively administered in an organized, joint process.”

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

The President of El Salvador – Nayib Bukele – reportedly dismissed the arising 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 the crash of its native token – FTT.
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.

Man, the amount of misinformation is insane.
I exchanged messages with President Nayib a few moments ago. He said “we don’t have any Bitcoin in FTX and we never had any business with them. Thank God!” https://t.co/CrM5wd24Ha
— CZ 🔶 Binance (@cz_binance) November 10, 2022

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. The domestic government spent hundreds of millions of dollars to accumulate 2,381 BTC over the past several months. Due to the coin’s price depreciation, though, the country sits on over $65 million of unrealized loss.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Europe’s largest digital asset investment and trading group – CoinShares – revealed that approximately 11% of its total net asset value is situated on the crypto exchange FTX.
Another firm experiencing similar issues is Mike Novogratz’s Galaxy Digital, which holds more than $76 million worth of exposure to the troubled firm.

In a recent interview for Bloomberg, CoinShares said nearly $26 million of its exposure to FTX consists of US dollars and Circle’s stablecoin USDC. Pending withdrawals of 190 BTC and 1,000 ETH account for the remaining over $4 million.
The company’s CEO – Jean-Marie Mognetti – stated the assets were part of the capital markets division and accounted for proprietary trading operations.
The boss added that potential losses had not affected CoinShares’ exchange-traded funds. The organization also has no exposure to FTX’s sister company Alameda Research.
The problems for SBF’s trading venue started a few days ago when Binance decided to liquidate all its FTT tokens.
The coin’s price crashed shortly after the announcement and currently trades at around $2.90 (a nearly 90% decline compared to last week’s figures).
While Bankman-Fried initially assured that FTX and its assets were “fine,” the entity paused certain operations, such as withdrawals, which caused severe panic.
In the following hours, the CEO changed his stance and said Binance will acquire his trading venue to stabilize its liquidity issues.
Despite confirming the news at first, the world’s largest crypto exchange withdrew its intentions to purchase FTX, outlining that “the issues are beyond our control or ability to help.”
Speaking on the matter, CoinShares’ CEO said dealing with cryptocurrencies on exchanges might be easy for market participants, but they should know this hides its risks:

“For too long, things like FTX have been perceived by investors as a quasi-bank or quasi-financial institution, which it is not. We can all trade crypto at an exchange, but you are exposing yourself to a variety of risks which are not really in your favor.”

CoinShares offers an exchange-traded fund called FTX Physical FTX Token. It has plummeted over 90% since the FTX’s meltdown began.
CFTT Graphics, Souce: Bloomberg

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

You Might Also Like: