😥 Focus Turns to Alameda as Investors Fear Binance Deal Not the Answer for Stricken FTX
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Evidence Emerges FTX Used FTT Token for $4B Bailout of Alameda in September
By Samuel Haig
FALLOUT As cryptocurrency investors and users reckon with the fallout from Binance’s shocking takeover of FTX, one thing is clear: the episode is a disaster for the burgeoning industry.
COLLAPSES “These events quickly sent the broader market into a tailspin, heaping more pressure on the prices of crypto,” Bobby Ong, the co-founder of CoinGecko, told The Defiant. “Collapses such as these only serve to erode the confidence of users and the general public towards the industry, and could become a hindrance to growing adoption.”
QUESTIONS The questions now are how bad is it, and how long will it last?
Alameda and FTX Have Extensive Links with Layer 1 Blockchain Network
By Owen Fernau
CONTAGION It’s safe to say that last week few Solana fans were worried about contagion from a centralized derivatives exchange that focused on putting its name on sports arenas and not DeFi.
TORQUE Yet the rapid unraveling of confidence in FTX, the mammoth crypto derivatives exchange, and its sister firm, Alameda Research, has swept up Solana and whipsawed its tokenholders with unforeseen torque.
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Binance Agrees to Bail Out Rival After FTT Token Collapses
CRISIS Binance, the world’s largest crypto exchange, plans to execute an emergency takeover of FTX, the crypto derivatives platform that has been hit with a crisis of confidence as its FTT token lost more than a quarter of its value on Monday, Changpeng Zhao, Binance’s CEO, said in a Twitter thread Tuesday.
Solana Ecosystem Battered as FTT Crashes 85%
WORST DAY Crypto markets are on track for their worst day since June as investors are choosing to stay on the sidelines of the nascent industry while yet another centralized crypto player finds itself on the ropes.
Spike In Network Activity Sees Nearly 3,000 ETH Burned in the Past Day
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The U.S. Treasury Department is "redesignating" Tornado Cash as a sanctioned entity, overtly alleging that North Korea has used the crypto mixing service to support its weapons of mass destruction (WMD) program.
Despite Elon Musk's recent takeover of Twitter, Aave co-founder and CEO Stani Kulechov believes the microblogging platform won't be on the blockchain anytime soon.
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FTX Hit By $1.2B in Withdrawals as Confidence Wavers in Exchange Giant FTX’s reserves are under siege as a wave of users withdraw their assets from the derivatives exchange after its dependency on its token FTT and its relationship with a sister company, Alameda Research, raised doubts about its financial strength.
CZ Cranks Up Pressure on FTX With Massive Token Sale In a major development for FTX, Binance, a rival cryptocurrency exchange, is planning to dump FTT tokens on the market, according to CEO Changpeng Zhou.
OpenSea Roils NFT Market With ‘Enforcement Tool’ For Creators NFT creators are finally getting a little financial help. At least that’s the pitch from OpenSea. On Tuesday, OpenSea, the No. 1 NFT marketplace, plans to release an “on-chain enforcement tool” that will let artists stop their work from being sold on sites that do not distribute royalty fees.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Aleksandar Gilbert, Samuel Haig, and yyctrader, and edited by Edward Robinson, yyctrader and Camila Russo. Videos were produced by Alp Gasimov. Podcast was led by Camila, edited by Alp.
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