Kategorie: Crypto Markets

Several crypto firms have come out to distance themselves with exposure to FTX crypto exchange and its sister firm Alameda amid the financial crisis facing the two firms. This comes after calls from the crypto community for transparency to let users know if there is any risk.

Tether’s Chief Technology Officer Paolo Ardoino has come out to clarify via Twitter that the Stablecoin issuer does not have exposure to either FTX or Alameda. Replying to Wu Blockchain’s tweet that said “Circle and Tether should disclose more of their financial relationship with FTX Alameda to let users know if it’s a risk,” Paolo tweeted said:

“To be clear: #Tether does not have any exposure to FTX or Alameda. 0. Null. Maybe is time to look elsewhere. Sorry guys. Try again.”

Similarly Circle’s CEO Jeremy Allaire took to Twitter to clarify that Circle also does not have any exposure to FTX or Alameda. In his tweet, Jeremy said:

“Circle has no material exposure to FTX and Alameda.  FTX has been a customer of Circle Payment APIs for the past 18 months, providing card and ACH services for customer transactions.  Circle’s crypto payments beta product uses FTX and other exchanges, for BTC/ETH liquidity.”

Coinbase confirms no exposure despite its shares dropping

The CEO of Coinbase, Brian Armstrong, also took the opportunity to assure customers that the crypto exchange has no material exposure to FTX crypto exchange or its native token FTT. The exchange tweeted saying:

“Second, Coinbase doesn’t have any material exposure to FTX or FTT (and no exposure to Alameda).”

Despite the assurance from the exchange’s CEO, Coinbase’s shares started the day with a −1.75 (3.45%) drop.

The post Coinbase, Tether, and Circle deny exposure to Alameda and FTX appeared first on CoinJournal.

Solana (SOL) is down more than 25% in the past 24 hours as crypto pops amid shocking news developments around the crypto exchange FTX.

SOL price dumps 25% as analyst points to Binance/FTX crypto news

The SOL/USD pair, which was priced above $32 early Tuesday, has touched lows of $24 as selling pressure across the crypto market saw all the major cryptocurrencies turn red on news Sam Bankman-Fried’s FTX was in trouble and Binance had moved in to help by agreeing an acquisition deal.

Ran Neuner, of CNBC Crypto Trader and founder of Crypto Banter, pointed to SOL’s price woes as related to what a Binance deal for FTX means for Solana.

“Solana [is] getting killed,” he tweeted as crypto prices across the market fell.  According to the analyst, the market was just realising that Binance CEO Changpeng Zhao “now owns 10% of the tokens and that he would rather support the BNB chain than SOL.”

He added:

“Also Solana just lost all the support and investment that FTX and @SBF_FTX were making in the ecosystem.”

Solana getting killed. Market realizing that @cz_binance now owns 10% of the tokens and that he would rather support BNB chain than SOL. Also Solana just lost all the support and investment that FTX and @SBF_FTX were making in the ecosystem.

— Ran Neuner (@cryptomanran) November 8, 2022

The post Solana price: Analyst explains why SOL is ‘getting killed’ appeared first on CoinJournal.

Binance is set to acquire the FTX crypto exchange in a surprise turn of events on Tuesday.

Just a day after FTX CEO Sam Bankman-Fried said his company was “fine” and would continue to be so, FTX and Binance have reached a deal to have Changpeng Zhao’s company buy FTX.

Both the Binance chief and SBF tweeted the development, with reference to a liquidity crunch that has seen FTX come full circle as a crypto exchange. Zhao tweeted:

“This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire http://FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

— CZ 🔶 Binance (@cz_binance) November 8, 2022

Bankman-Fried confirmed the deal was on the table, also tweeting earlier on Tuesday:

“Hey all: I have a few announcements to make. Things have come full circle, and http://FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for http://FTX.com (pending DD etc.).”

1) Hey all: I have a few announcements to make.

Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).

— SBF (@SBF_FTX) November 8, 2022

The news follows recent reports about Alameda Research’s balance sheet and Tuesday’s massive price dump for the FTX token.

The post Binance to acquire FTX appeared first on CoinJournal.

The price of BIT, BitDAO’s native token, saw a massive drop in the early hours of November 8 where it hit a daily low of $0.3031 before slightly rebounding as the day progressed. At press time, BIT was trading at $0.3888, a drop of about 4.48% in the past 24 hours.

The sudden price drop was a result of fears that Alameda Research, a sister firm to FTX that has been at the centre of the ongoing FTX financial crisis, had dumped about 100 million BIT tokens.

BitDAO has requested proof of funds from Alameda

BitDAO signed a token swap and hold an agreement with quant crypto trading firm Alameda Research on November 2021. Following the agreement, BitDAO swapped 100 million BIT tokens for 3,362,315 FTX tokens (FTT). The two entities had agreed not to sell the tokens for the next three years, which would be up to November 2, 2024.

BitDAO is now threatening to terminate the agreement following fears that Alameda has breached the agreement by dumping about 100 million of the BIT tokens it held after the swap. BitDAO has today filed a proposal asking Alameda to provide proof of funds through an on-chain address.

BitDAO has asked Alameda to respond within the next 24 hours, failure to which BitDAO could take action with the over 3.3 million FTT tokens that it holds after the swap.

In the released BitDAO communication, BitDAO stated:

“If this request is not fulfilled, and if sufficient alternative proof or response is not provided, it will be up to the BitDAO community to decide (vote, or any other emergency action) how to deal with the $FTT in the BitDAO Treasury.”

Alameda says it has nothing to do with the BIT plunge

Responding to BitDAO, Alameda CEO Caroline Ellison has said that the firm has nothing to do with the BIT price fall. The CEO said:

“Busy at the moment but that wasn’t us, will get you proof of funds when things calm down.”

It is unclear whether Alameda will be able to provide the proof of funds within the 24 hours ultimatum that BitDAO gave. In the event the proof of funds is not produced, BitDAO may opt to sell its FTT tokens which would only complicate things for the already stressed native token of FTX exchange.

The post BIT price on a slippery slope amid fears that Alameda dumped millions of BIT tokens appeared first on CoinJournal.

BMEX token is set to start trading this week after the cryptocurrency exchange announced its development last year.

Crypto exchange Bitmex has announced that its native BMEX token will start trading on November 11. This latest cryptocurrency news comes roughly a year after BitMEX revealed that it would launch its own exchange coin. 

BitMEX said earlier today that its token would be used to reward customers. This is similar to the features of other exchange tokens, including BNB, KCS, and FTT. 

The crypto exchange said the rewards would be offered to traders in the form of trading fee discounts, withdrawal fee waivers, higher staking rewards and access to new products and services. 

BitMEX is rolling out this latest feature in a bid to regain market share in the derivatives space. BitMEX was previously leading the crypto derivatives space but has lost its place in recent years to the likes of Binance, MEXC, and FTX. 

Data collected from Coinmarket shows that BitMEX is the fourth-largest derivative exchange behind the three mentioned above. 

The crypto exchange first announced the BMEX token in December 2021. The company went on to start airdropping the tokens to users in February this year.

According to BitMEX, it had airdropped millions of BMEX tokens to more than 80,000 traders since the start of the year. 

In June, BitMEX delayed the listing of the BMEX token, citing the bearish market conditions. At the time, the crypto exchange said;

“Although we are ready to list BMEX, the present market conditions are not ideal, and we want to list the token in an environment that gives it the best chance to reward you, its holders.”

Last month, Alexander Hoeptner, the former CEO of BitMEX, revealed that the BMEX token would launch this year. At the time, he said;

“If you launch a token in a market which clearly is not at all at the bottom, then your token will be drained down with the general environment.”

BitMEX has always maintained that it would like to contribute to growth in liquidity and revitalise the cryptocurrency markets. 

The crypto exchange will list the BMEX/USDT pair on its recently launched spot exchange by the end of the week. It will also launch two new perpetual swaps, BMEXUSDT and BMEXUSD, on its crypto derivative platform. 

The post BitMEX’s BMEX token to start trading on Friday appeared first on CoinJournal.