Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom

admin November 29, 2022

0 3 minutes read

The biggest cryptoverse news on Nov 29 included the exchange dismissing bankruptcy rumors, NEXO releasing evidence of its reserves, Andre Cronje revealed how DeFi helped Fantom increase its reserves, and US politician Beto O’Rourke returned a $1 million donation to Sam Bankman-Fried. And ETH will erase 80% of deflationary profits after FTX collapse.

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Exchange dismisses bankruptcy rumors amid rampant speculation

The unexpected demise of FTX, BlockFi, Celsius and Voyager has left the crypto community questioning the solvency of more crypto exchanges, including: binance, KuCoin, Nexo.

In particular, KuCoin dual investment products The promised APR of up to 200% raises questions about the liquidity of the exchange.

However, KuCoin CEO Johnny Lyu denied bankruptcy rumors in a recent interview with CryptoSlate, stating that his exchange is “fully liquid” and is working with third-party auditors. It added that it has publicly disclosed evidence of its reserves.

Andre Cronje reveals how DeFi saved Fantom. FTM surge 17%

Phantom founder André Cronnier has acknowledged the role of DeFi revenue activity in helping the Layer 1 blockchain grow to over $51 million in 2021.

As of February 2020, Fantom had about $4 million left over from the $40 million it raised in 2018, according to Cronje. He earns about $2 million a year from yield farming on Compound and his DeFi platforms like him.

Currently, Cronje says Fantom has over 450 million FTM tokens ($96.43 million), $100 million worth of stablecoins, $100 million in other crypto assets, and $50 million in non-crypto assets. said it does.

NEXO releases reserve proof showing no exposure to FTX

Nexo has released evidence of its reserves revealing it has 100% collateral over approximately $3.4 billion of client assets in custody. In addition, we were able to withdraw all our debt before the exchange exploded, so we had $0 exposure to FTX and Alameda Research.

Nexo has called on other lending platforms to be cautious when issuing unsecured loans, as repayments can be difficult during bear market conditions.

Bitcoin Volatility Index To Exceed 100% For Third Time In 2022

The BTC Volatility Index (BVIN), which held an all-time low before the FTX collapse, has surged over 100% in recent weeks.

Historical data shows that during the 2014-2015 bear market, BTC fell 85% from all-time highs after a similar spike in the BVIN metric.

Ripple’s General Counsel Calls BlockFi Bankruptcy Another Success for SEC’s ‘Regulation by Enforcement’ Approach

Ripple general counsel Stuart Alderoty said the $100 million fine imposed on BlockFi by the SEC may have led to BlockFi’s bankruptcy.

Ripple CTO David Schwartz added that BlockFi could have switched to FTX for $400 million to pay the SEC fine, provided BlockFi’s assets remain in FTX. .

BlockFi still owes the SEC about $30 million in accounting through bankruptcy court filings.

ETH deflationary gains erased after FTX collapse

As of November 12th, Ethereum (ETH) had the largest deflationary rate of -0.00514%, but as of November 29th it has retreated more than 80% to -0.00090%.

Despite slashing some deflationary gains, on-chain data shows ETH dealt with over 32 ETH hit an all-time high.

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Whales are offloading bitcoin from 2021

CryptoSlate’s analysis of the bitcoin supply per whale shows that the whales are selling their assets in response to the decline in the BTC price after the end of 2021.

From the chart, we can see that the supply per whale mimics Bitcoin price movements, especially after December 2021. As a result, more whales are liquidating their positions in bear markets.

News around Cryptoverse

US politician returns $1 million to SBF

Texas gubernatorial candidate Beto O’Rourke reportedly FTX CEO Sam Bankman-Fried (SBF) has returned a $1 million donation to support his political campaign.

O’Rourke campaign spokesperson Chris Evans said the funds were unsolicited and must be returned, adding that O’Rourke has no direct ties to SBF.

Phantom wallet to multi-chain

Phantom, which was released as a self-custody wallet exclusively for Solana, announced Planning to multi-chain.

It adds support for Ethereum and Polygon networks and provides additional functionality for users to manage their NFTs using browser extensions.

Binance, Coinbase and 4 Others Under Investigation by US Congress

Senate Finance Committee Chairman Ron Wyden said: letter issued We will introduce major cryptocurrency exchanges such as Binance, Coinbase, Bitfinex, Gemini, Kraken and KuCoin and explain how they protect investors from collapses like FTX and systems that prevent market manipulation.

Wydan requested that exchanges include balance sheet and reserve evidence information in their responses. This will be considered at the next Congress.