More Bitcoin leaves Coinbase; Kraken CEO deems Binance’s proof of reserves ‘pointless’

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The biggest news in the cryptoverse on Nov. 28 included the Kraken CEO saying that Binance Proof-of-Reserve is meaningless without proof of liability, and Coinbase selling $2 billion worth of Bits over the weekend. Including losing coins and BlockFi filing for Chapter 11 bankruptcy.

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Another $2 billion worth of Bitcoin withdrawn from Coinbase over the weekend

According to Glassnode, cryptocurrency exchanges have lost $15 billion worth of Bitcoin (BTC) in the past five days, with Coinbase losing the most.

About 100,000 BTC (totaling $1.5 billion) was reportedly withdrawn from Coinbass between November 24th and November 25th. The trend continued on the weekends of Nov. 26 and Nov. 27, when about $2 billion worth of bitcoin drained from exchange reserves.

As a result, Coinbase lost $3.5 billion over the past five days, while Binance surpassed its reserves with about $1.2 billion worth of Bitcoin.

Kraken’s Powell Says Binance’s Proof of Reserve Is Meaningless Without Responsibility

Kraken CEO Jesse Powell has argued that Binance’s PoR is inadequate because it fails to emphasize liability. He added that implementing Merkle his tree without an external auditor is not sufficient to prove that the exchange is not increasing reserves on accounts with negative balances.

In response, Binance CEO Zhao Changpeng He said the exchange is working to involve an external auditor soon, while maintaining that the PoR does not include negative balances.

Joke about wrapped ETH depeg causes brief panic on Twitter

As bankruptcy rumors take over the crypto community, prominent Ethereum supporters, including Vitalik Buterin, have joked that wrapped Ethereum (WETH) is going bankrupt.

To avoid further panic in the community, Ethereum developer Hudson Jameson joked that WETH, just like Ethereum, is a decentralized smart contract that does not face bank execution, so the technology He has made it clear that he will not face bankruptcy.

However, WETH jokes caused the price of ETH to drop by about 4%, with some community members warning that such jokes could antagonize “the stupidest users.”

BitBoy Claims O’Leary Was a Key Actor in Celsius Collapse Along with FTX

While Crypto YouTuber “Bitboy” talks altcoin daily Called out Kevin O’Leary, who strongly endorsed Sam Bankman-Fried (SBF). Bitboy claimed that SBF targeted competing platforms such as Celsius and contributed to its collapse in order to increase the liquidity of FTX.

Bitboy added that SBF supporter O’Leary had publicly called for the temperature to drop to zero before the cryptocurrency lenders had an impact.

Texas Wants To Be Center Of Bitcoin Innovation, Abbott Says

Texas Governor Greg Abbott called on Bitcoin companies to set up offices in Texas as he pushed a pro-Bitcoin/blockchain agenda that would make Bitcoin innovation “more attractive” to the state. rice field.

Abbott added that Texas is improving its laws to be “a kind of anti-regulation” while providing the infrastructure necessary for Bitcoin to succeed.

Germany has the second highest concentration of ETH nodes in the world

according to CV VC Labs 2022 Blockchain Report, About 22.8% of all Ethereum validators operate in Germany. This leaves the European country with the second highest concentration of ETH nodes, behind the United States, which leads with 45.3%.

Additionally, the report highlights that German blockchain projects have raised nearly $8 billion in 220 funding rounds, with about 34 startups becoming unicorns.

JP Morgan believes regulation will lead to crypto, TradFi convergence

In the wake of the FTX collapse, JPMorgan & Chase has highlighted potential changes that it believes will help cover cryptocurrencies and traditional finance. It said it expects a regulatory framework like the MiCA bill to be approved.

He added that cryptocurrency exchanges may need to improve transparency by publishing regular audits of their reserves, assets and liabilities. We also foresee a shift from centralized exchanges (CEX) to decentralized exchanges (DEX).

Blockfi Becomes Another Victim Of FTX Collapse With Bankruptcy Filing

Just two weeks after suspending customer withdrawals, crypto lender BlockFi filed for Chapter 11. bankruptcy Because of the heavy exposure to FTX. It reportedly owes about 100,000 creditors, including the Securities and Exchange Commission (SEC), which owes about $30 million.

BlockFi added that it has about $256 million in cash to go through the restructuring process with the aim of “maximizing value for all clients and stakeholders.”

LINE-Founded Cryptocurrency Exchange BITFront Announces Closure

Asia-based cryptocurrency exchange Bitfront has announced plans to cease operations on March 31, 2023. After this date, we will stop withdrawals and delete all user’s personal files from our system.

AAX VP opposes handling of company bankruptcy decision

The bankruptcy trend has hit Hong Kong exchange AAX, which has revealed it will not be able to pay its employees’ salaries after November, but customers will receive about 50% of the funds.

AAX Vice President Ben Caselin has announced his resignation, expressing frustration with the bankruptcy process.

research highlights

Binance Leads 2017 “Ridiculous” Bitcoin Investments FTX Leads 2022 Cycle

Binance was founded in 2017 as a haven for stupid money investors who FOMOed into Bitcoin trading based on hype and withdrew their holdings at a loss after the price peaked. played a role.

Average Bitcoin withdrawal price across exchanges

Fast forward to 2022 and Binance has grown to become a major cryptocurrency exchange and home to smart money investors, while exchanges like the bankrupt FTX housed dumb money investors.

News around Cryptoverse

Gam7 launches $100 million grant program

Web3 game DAO Gam7 is Established A $100 million grant program for game developers to build tools and scaling solutions that lead to global adoption of Web3 games.

Kraken pays US Treasury $363,000

U.S. Treasury Department announced It has imposed $362,158 on cryptocurrency exchange Kraken for failing to enforce sanctions against Iran.

Kraken reportedly failed to block the IP addresses of Iranian users trading on the exchange when the Treasury Department banned Iran.

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Over the past 24 hours, Bitcoin (BTC) has fallen slightly -1.87% to trade at $16.243, while Ethereum (ETH) has fallen -3.44% to trade at $1,172.

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