Binance to Buy Rival Crypto Exchange in Volatile Market
Crypto prices were volatile following the announcement that Binance would be purchasing one of its largest rivals.
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- The crash of the FTX token last week has caused serious financial problems for Alameda Research, one of the largest holders of the token. The company's balance sheet is now loaded with highly illiquid FTT tokens, and it is also a big holder of SOL tokens. The crash of the FTX token could theoretically wipe out billions from Alameda's balance sheet, deepening its financial woes, according to one analyst.
- The community behind BitDAO can breathe a sigh of relief, as Alameda Research has announced that it will not be selling any of its BIT tokens acquired in a recent token swap deal. This is good news for the community, as prices for the related FTT tokens have been plunging recently. Alameda Research holds 100 million BIT tokens, acquired in November last year by swapping 3.36 million FTX exchange's FTT tokens. The token swap deal required each party to hold tokens for at least three years. Read more here.
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- The crypto exchange FTX has seen a sharp decline in its bitcoin balance, with around 20,000 bitcoin being withdrawn in the past 24 hours. This represents a significant drop for the exchange, which has been one of the leading platforms in the space. It is unclear what has caused this sudden outflow of bitcoin from FTX, but it could be due to a number of factors.
- In a statement released Tuesday, cryptocurrency exchange Coinbase sought to reassure customers and investors that it has no exposure to the FTT token or to Alameda, the minor deposits at FTX. The statement comes amid panicky conditions in the cryptocurrency markets, with the price of Bitcoin plunging below $4,000 and other major coins also seeing steep losses.
- On the UpOnly podcast on Tuesday, Pharma Bro Martin Shkreli and Do Kwon of LUNA discussed the impending FTX-Binance deal. Shkreli said that jail is not as bad as people make it out to be, and that he thinks the FTX-Binance deal is a good thing for the crypto community.
- It's no secret that the US government is highly divided along party lines, and this has caused gridlock and dysfunction in Washington for years. However, there may be a silver lining for the crypto industry in this situation. Because crypto has friends on both sides of the aisle, and there are several bipartisan legislative efforts underway related to crypto, a divided government may actually be beneficial for the industry.
- As the bear market continues, the pace of capital flows into cryptocurrency venture capital has slowed to less than one-third of what it was in 2021. This slowdown is likely to continue as investors remain cautious about putting money into a volatile asset class.
- US Treasury Adds to Tornado Cash Sanctions With North Korea WMD Allegations: The Treasury Department's Office of Foreign Asset Control (OFAC) first added Tornado Cash to its sanctions list in August. The move comes as the US continues to pressure North Korea to abandon its nuclear and missile programs. Tornado Cash is a digital currency that can be used to anonymously send and receive payments.
- Japan Mobile-Phone Operator NTT Docomo to Invest $4B Into Web3: The operator will collaborate with Astar Foundation and Accenture to speed up Web 3 adoption in the country. This is great news for the adoption of Web 3.0 technology.
