Kategorie: Crypto Markets

• FTX Estate stakes $122 million worth of Solana (SOL) tokens.
• The FTX Estate has strategically delegated 5.5 million SOL with a Solana network validator.
• The move alleviates concerns about the estate’s potential liquidation of SOL holdings.

In a significant move within the cryptocurrency landscape, the FTX estate has staked over 5.5 million Solana (SOL) tokens, amounting to a substantial $122 million, with Figment, a prominent validator on the Solana network as reported by on-chain data from SolanaFM.

This development comes amid ongoing discussions and speculations within the crypto community regarding the estate’s handling of its substantial Solana holdings. Here’s an overview of the recent events and implications.

FTX Estate’s strategic staking of Solana tokens

The move of staking such a huge amount of Solana tokens with Figment has captured the attention of industry observers, particularly in light of concerns regarding potential sell-offs of the estate’s significant holdings, which could have adversely impacted the market value of SOL.

This staking activity, worth $122 million, signifies a proactive approach from the FTX estate and suggests a bullish stance on the long-term prospects of the Solana blockchain. At press time, the SOL token was trading at $21.96 after surging by 2.08% following the news.

FTX’s asset recovery

In a recent court filing dated September 11, 2023, the FTX estate disclosed that it has successfully recovered assets totalling approximately $7 billion. Notably, this includes a substantial portion of staked SOL tokens amounting to over $1 billion, along with a significant holding of $560 million in Bitcoin (BTC).

The estate also revealed additional asset classes, including $200 million in real estate holdings in the Bahamas and $1.9 billion in illiquid assets. These disclosures underscore the FTX estate’s substantial financial holdings and continued asset recovery and management efforts.

As the former CEO of the collapsed exchange, Sam Bankman-Fried, navigates through a legal battle involving fraud charges, the recent strategic staking by the FTX estate presents a promising outlook for the Solana network. With the unlocking of SOL tokens scheduled to continue, market observers will keenly monitor the estate’s future moves, which could significantly influence the crypto market dynamics.

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• Stellar (XLM) price was changing hands around $0.10 on Friday, down 7% and 15% in the past 7 and 30 days respectively. 
• The Stellar Development Foundation has teamed up with Certora to boost security for Soroban.

Stellar (XLM) price traded around $0.10 on Friday morning, positive by about 1.3% in the past 24 hours but -7% and -15% in the past seven and 30 days respectively. The downward trend that has held since the flip from highs of $0.20 on July 13 could now strengthen after XLM broke below the support line of a descending triangle pattern.

Stellar price gives up key support area

Today’s slight upside comes after Stellar news regarding its Soroban, a WebAssembly (WASM)-powered smart contracts platform. The Stellar Development Foundation has teamed up with smart contracts audit platform Certora to boost ecosystem security for Soroban. 

Product update! Today, @CertoraInc & @StellarOrg have teamed up to boost @SorobanOfficial, the Stellar network’s smart contract platform, with cutting-edge formal security verification.

Why is this important? It fortifies the foundation of blockchain security, ensuring trust…

— Stellar (@StellarOrg) October 11, 2023

Stellar announced a testnet for the smart contracts platform in September. While the development coincided with a spike to above $0.12 for XLM, the overall picture since has been one of struggle for bulls.

As can be seen on the daily chart below, the XLM price has failed to decisively break above the downtrend resistance line of a descending triangle since July’s downward flip. The bearish outlook remains and could strengthen as bulls struggle to keep prices above $0.10.

Can bulls retake control?

XLM price will need to see a sustained push from current levels towards the descending trendline and possibly break higher to flip bullish.  If XLM breaks above $0.13, buyers might target the immediate term supply wall around $0.16.

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• Tether says Paolo Ardoino will officially take up the CEO role from December 2023.
• Ardoino will continue as Bitfinex CTO and chief strategy officer for Holepunch.
• Meanwhile, exiting CEO Jean-Louis van der Velde, becomes an advisor and remains CEO of Bitfinex.

Tether news just in is that the company’s Chief Technology Officer Paolo Ardoino has been appointed as the new CEO, with the new role effective as from December 2023. Ardoino will continue as Bitfinex CTO and Chief Strategy Officer for Holepunch.

Meanwhile, current CEO, Jean-Louis van der Velde, will “transition to an advisory role for Tether while retaining his position as CEO of Bitfinex.”

New CEO to lead Tether into new growth chapter

Changes at the management level for the stablecoin issuer comes as the company looks to diversify into new verticals. One of the signals for this shift to a technology-focus approach was highlighted by the recent mega investment in Northern Data Group – with Tether eyeing dominance in the artificial intelligence space across Europe.

Commenting on Ardoino’s elevation to CEO, van der Velde said:

“Paolo is extremely well-suited to lead Tether into this exciting new era. I believe Tether is poised to continue its rapid growth, with a continued focus on emerging markets and transformative technology. I think I can speak for the entire company when I say that we eagerly anticipate Paolo’s leadership as he guides Tether toward a future where finance knows no bounds.”

In his remarks, Ardoino noted Tether’s commitment to transparency, security, and financial integration of digital assets – goals he will pursue as the new CEO. Notably, Ardoino has been the public face of Tether since 2017, with much of what’s communicated from the company’s leadership put to the public through him.

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• USDR suffered a liquidity crisis, revealing its illiquid assets.
• A trader lost everything swapping USDR for USDC during the crisis.
• An MEV bot profited $107,002 from the arbitrage opportunity.

The Real USD (USDR) stablecoin recently found itself in the eye of a storm, revealing the pitfalls of the DeFi space.

A liquidity crunch on October 11 led to a trader swapping 131,350 USDR for 0 USDC, incurring a complete loss. Here’s what transpired:

The USDR liquidity crunch

USDR, a real-estate-backed US dollar stablecoin, faced a liquidity crisis when users requested over 10 million stablecoins in redemptions.

Although it was advertised as 100% backed, a shocking revelation emerged: less than 15% of its $45 million in assets were backed by liquid TNGBL tokens, with the majority relying on illiquid tokenized real-estate assets.

The illiquidity of these real-estate assets stemmed from their tokenization under the ERC-721 standard. This unique standard made it nearly impossible to fractionalize these assets, creating a liquidity conundrum for investor redemptions. Furthermore, the underlying real estate properties could not be swiftly sold to meet withdrawal requests. Consequently, the USDR treasury was incapable of honouring these redemptions, resulting in a crisis of confidence among investors.

Why USDR depegged despite being fully backed: Using Illiquid asset backing liquid Asset

– USDR is 100% backed. 50% of them come from stablecoins and the remaining comes from Real-Estate

– When there is a bank-run (Huge Redemption of USDR), the Stablecoin liquidity in the… https://t.co/xOrsa5gpKU pic.twitter.com/OYhQ0twUUd

— Tom Wan (@tomwanhh) October 12, 2023

The costly DEX swap

During the USDR liquidity crisis, a trader attempted to withdraw their USDR holdings by executing a swap on the BNB Chain via the decentralized exchange (DEX) OpenOcean. The catch was the severe depegging of USDR, which had plummeted nearly 50% from its par value due to the liquidity crunch.

In a disastrous turn of events, the trader received a grand total of 0 USDC in return for their 131,350 USDR. This meant a complete and crippling loss on their initial investment. In the volatile world of DeFi, where slippage rates on DEXs can reach up to 100% during periods of poor liquidity, such incidents serve as a stark reminder of the risks at play.

Due to the decoupling of the stablecoin USDR, this guy accidentally swapped 131,350 $USDR for 0 $USDC while panic selling $USDR.

And a MEV bot successfully arbitraged $107K.https://t.co/FHOJtaGcSDhttps://t.co/IYtoqar29N pic.twitter.com/USLF1qkVDK

— Lookonchain (@lookonchain) October 12, 2023

The story took an interesting twist as a maximal extractable value (MEV) bot swooped in to seize an arbitrage opportunity. Recognizing the substantial price discrepancy, this automated trading algorithm profited handsomely, netting a staggering $107,002 in gains through a well-timed arbitrage trade.

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• Shiba Memu is a new meme coin that’s leveraging the AI revolution.
• The project is in presale and has raised more than $3.8 million.
• Dogecoin (DOGE) tops meme coins buts its price has struggled as daily transactions sink.

Dogecoin is struggling to keep prices above a key support level even as the leading meme cryptocurrency records a sharp drop in daily transactions. Meanwhile, the Shiba Memu (SHMU) presale has hit $3.8 million as price increases to $0.0334.

Here we examine the price outlook for the two tokens amid a broader lull in a crypto market that’s mirroring market reaction to the latest US inflation report. Stocks traded mixed after the Consumer Price Index (CPI) showed prices rose 0.4% versus 0.3% expected in September, with a 3.7% increase over the past year to match that of August.

Shiba Memu – an AI revolution for meme coins

Shiba Memu is a new cryptocurrency that combines the increasingly powerful artificial intelligence (AI) narrative and blockchain to bring a unique approach to crypto memes. The native token SHMU, launched on the Ethereum blockchain, will have a supply of 1 billion tokens, 85% of which is available to the community via a presale.

With AI at the heart of this new meme coin, the idea of a self-sufficient crypto ecosystem is envisioned. The Shiba Memu whitepaper outlines a project that’s unlike other meme coin projects – one that’s leveraging AI technology to create a powerful marketing system that doesn’t rely on celebrity or influencer hype to gain traction.

The AI dashboard will take care of this, with SHMU holders benefiting from additional utility as token staking and provision of liquidity to the Shiba Memu pool.

Dogecoin price: DOGE outlook as daily transactions sink

Dogecoin leads meme cryptocurrencies with a market cap of nearly $8.2 billion. DOGE’s status as the sector’s OG has seen it attract support from among others, Tesla CEO and X (formerly Twitter) owner Elon Musk.

However, the cryptocurrency has struggled to break to the coveted $1 level – its all-time high of $0.73 was reached in May 2021. Currently, Dogecoin price has settled below $0.58 with the 5.6% dip in the past 30 days indicative of this fact. It an outlook that echoes Bitcoin’s recent lull since the breakdown from $30k.

One indicator of the performance over the past few weeks is the 7-day average of Dogecoin’s daily transactions. According to on-chain data, the network has been recording an average of 37.3k daily transactions — which IntoTheBlock says shows a sharp decline from highs of 2.1 million in June and “a secondary spike of 616k in July.”

Is Dogecoin going to see a surge network activity as was seen in the previous quarter? And can this be reflected in DOGE price? 

The current outlook suggests this scenario is possible, with investors likely to watch out for an upcoming event around the dog meme that inspired Dogecoin’s creation. That event is scheduled for November 2. If price picks up in a bull market amid other positive triggers, the key short term target remains $1.

Shiba Memu price: can SHMU reach $1 in 2024?

As noted, Shiba Memu has attracted over $3.8 million from global investors since its presale went live. The presale price has increased daily at 6 pm GMT, a novel approach that has seen the participation spike as early birds scoop SHMU at what’s likely to be bargain buys.

Price is set to jump from today’s $0.0334 to the final presale price of $0.0379. When the tokens launch on crypto exchanges, increased demand could unlock upside moves similar to what has greeted other meme coins in the market.

If Shiba Memu does a 2x after its launch, that could push its price to above $0.1. Then, with projections for crypto and AI huge going into 2024, SHMU could trade higher and target the $1 level. However, this could depend on prevailing market conditions and other factors specific to the project.

To buy Shiba Memu or learn more, visit the project’s presale page.

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