In today's news, crypto businesses with exposure to FTX are fighting for their lives — as rumors swirl that Mark Zuckerberg is planning to step down.
Editor’s note: Thanksgiving is going to be weird.
Connor Sefton writes…
It’s Thanksgiving week in the US — but it won’t be a happy one if you’re a crypto investor.
A year ago, when the frenzy around Bitcoin and Ether was at its peak, countless enthusiasts would be around the dinner table talking wildly about their potential. It is very possible that aunts and uncles are willing to invest.
But after a brutal bear market and a wave of bankruptcies, many will be looking at the paper’s painful losses compared to this time a year ago. And as the turkey is carved out, crypto bros may be facing some uncomfortable questions.
So… what’s the best course of action if you’re faced with an angry grandfather who lost $250 after joining Sheba INU? What do you say to a grumpy stepfather who now owns an NFT worth 90% less than he paid for it? And heaven forbid, what do you tell a loved one who stored their crypto on FTX, Celsius or Voyager?
Honesty can be an option.
Few could have predicted that Sam Bankman Freud would turn from savior to villain in such a short time. And with respect to falls in the broader markets, Bitcoin is known to operate in a four-year cycle of booms and busts.
For inexperienced investors still holding on to their BTC, perhaps the best advice is to encourage them to take a long-term view. The likes of Michael Siler regularly emphasize that the best way to HODL is to achieve it through adversity. “Bitcoin, not crypto” is another common phrase doing the rounds – establishing clear blue water between BTC and other coins.
Despite the carnage we’re seeing in this bear market, maximalists are still wavering in their faith. Maybe you could spend a little time telling your relatives how to manage their own funds instead of storing them in an exchange.
The atmosphere is going to be mournful. There is no escape from it. But maybe we need to remember what it feels like. That way, when the next bull market hits, we’ll be a little more measured when talking to our families — and not breathless.
We will remember to tell them that BTC is volatile, that crypto markets are risky, and that big profits are not guaranteed. This will ensure that they are armed with all the facts when deciding whether they want to invest.
FTX was SBF’s ‘personal fiefdom’ 😬.
A bankruptcy attorney representing FTX’s new management has said the doomed crypto exchange was Sam Banksman Freud’s “personal fiefdom.” James Bromley called the case “unprecedented” — and warned that the company’s demise was “the most sudden and difficult disaster in the history of corporate America.” It revealed that a substantial amount of FTX’s assets had either been stolen or were missing. As for FTX’s coffers, documents filed in court on Monday said the restructuring team has doubled the amount of cash it has acquired to $1.2 billion – still the FTX Group. That’s less than the $3.1 billion of the K50 largest lenders. It can take months, or even years, for customers to see funds again.
Crypto lender Genesis fights for its life 😑
If crypto lender Genius can’t find $1 billion soon, it could be forced into bankruptcy — becoming the latest victim of the FTX exchange implosion earlier this month. The embattled company is looking for immediate cash after revealing it had given out $175 million in loans with insufficient collateral. This has changed without success to Binance and Apollo Global Management among others. A spokesman said no bankruptcy filings were “immediately forthcoming” and that “constructive discussions with creditors are ongoing.” But more than anything else, Genesis’ troubles highlight how one company’s financial woes are pervasive throughout the crypto industry.
Meta has denied Zuckerberg’s resignation
A Meta executive has denied reports that Mark Zuckerberg plans to step down as CEO next year. The tech entrepreneur is having a rough year — investors aren’t convinced by his firm belief that the metaverse represents the next frontier of social media. Meta is pouring billions of dollars into Horizon Worlds, and can only start turning a profit in the coming years. The rumor fails to take into account one thing: Zuckerberg controls about 55% of the social media giant’s voting stock. One thing stockholders can do, and are doing, is walk. META shares are down 70% this year, with declines in the range of more than 20% that come with each quarterly earnings report.
55% of bitcoin addresses are in the red.
More than half of all Bitcoin addresses are now in the red. According to analysis site IntoTheBlock, with FTX’s post-exchange implosion taking the price to levels not seen since November 2020, the average purchase price of 55% of all Bitcoin addresses is now less than what the owners paid for it. Paid for them. When IntoTheBlock took its latest snapshot, it remains 44% black and just 1% breakeven, at a price of $16,156. A large number of investors are now facing protracted bankruptcy, likely to lose funds after the collapse of FTX. Countless others burned when major crypto lenders like Celsius and Voyager Digital went under — adding to a growing realization that regaining the trust of retail investors could be a long process.
Indian users check out Digital Rupee 🇮🇳
India is about to launch a major pilot of its hastily developed central bank digital currency. Around 400,000 users will participate in the trial, with the government concerned that stablecoins could pose a real threat to the rupee. State Bank of India, Bank of Baroda, Union Bank of India, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Yes Bank and IDFC First Bank between 10,000 and 50,000 customers each. As well as will test digital rupees with selected merchants. The Times said. It will be interoperable with existing payment platforms and stored in an e-wallet — and over time, Rupa will integrate with mobile and web banking services. The Reserve Bank of India has said it plans to complete the digital rupee instead of replacing other payment methods.
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