TLDR. Your summary of everything blockchain related:
- Fractures in FTX as leaked reports of one it’s sister firm Alameda’s balance sheet surface
- Changpeng “CZ” Zhao announces Binance will liquidate it’s entire FTT (FTX’s token) holding ‘due to recent revelations that have came to light’
- 152BTC ($3.15 billion sent to exchanges in the past 24 hrs
- Circle to bring Euro Coin to Solana in early 2023
- Santander Bank Will Block Payments to Crypto Exchanges
- Beeple announces ‘immersive 3D NFT’s to Solana’, partnering with Metaplex and Render Token
- Squiggles continue on their recent run, up over 125% overnight.
- Adidas announce ‘Unboxed’, the next stage of their NFT strategy coming 16/11/2
Into the details:
Nothing like a reminder to start the week to whenever possible, not keep funds on exchanges. Although the news surrounding FTX allegedly only reflects one part of a greater balance sheet, it is important to remember why decentralisation is so important in times like this.
Aside from the fact that exchanges can go down, be subject to jurisdictional shut downs or otherwise, potential mishandling of funds, lack of suitable reserves or other negative information that remains uncovered during the insane liquidity of a bull market can be exposed when mass opinion shifts, and large swathes of people want to withdraw from an exchange. When this happens users may not be able to withdraw their funds without significant delays and in the worst case scenario, lose access to their funds altogether. We’re not saying this will happen with FTX, in fact, it seems highly unlikely, but it’s always best to be safe than sorry, and why not be prepared, when a self custody wallet affords you complete control of your assets.
Moving on to ‘greener’ pastures, we begin the week with various pieces of negative news around huge layoffs from Meta and a host of other companies, as well as reports of almost 65% of Americans living paycheck to paycheck. These are stark reminders that regardless of any crypto pump we are still in a very dangerous macro environment. When coupled with the FED’s inflation policy and other macro events like the war in Ukraine and a potential oil crisis, it’s important to realise the potential limitations this can project onto crypto, enforcing a more rigid ‘range’ in which it trades. Understanding this is one of the ways in which you can better range trade and predict price movement like the decrease in crypto today.
All of this good news means that for those focused on NFT’s, quality is much more important than quantity, finding that which is solid in this market and that can outlast any form of a long and arduous bear market is vital.
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*Disclaimer: None of the above represents financial advice.