Crypto News: FTX BLOWUP, Market Crash, Contagion & MORE!!

Foreign Welcome to the coin Bureau weekly crypto Review here are this week’s top Headlines in the crypto news FTX contagion the collapse of one of the Largest crypto exchanges sends the Market into a downward spiral what comes Next Collateral damage coins and tokens Exposed to FTX and Alameda get hit the Hardest by all the bad news which Cryptocurrencies are most at risk Proof of reserves crypto exchanges Scramble to show users that their Balance sheets are in good shape why Their disclosures are causing concerns Twitter verified Elon Musk warns of Bankruptcy while the social media Platform Causes Chaos by enabling blue Ticks for everyone how will this affect Crypto spam and scams Inflation reduction a cooler than Expected CPI print provides temporary Relief to the plummeting crypto Market When will we finally see the bottom And a closer look at last week’s top Performing cryptos and where they’re Headed next all this and More in just a Moment Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not Financial advice you can Find any topics you’re looking for using

The timestamps in the video timeline and Now for today’s top stories Last week the crypto Market experienced Its biggest shock since the death spiral Of terror’s UST stablecoin back in May Now there’s obviously a lot to unpack Here and I’ll start by advising you to Avoid the FTX website and uninstall any FDX apps you have on your phone asap This is because the FTX exchange was Hacked over the weekend the Administrator for the official FDX Telegram group has warned that the FTX Website and apps likely contain malware This means interacting with the website Or mobile apps could result in you Losing the crypto on your device So with that said let’s take it from the Top if you watched our recent video About the FTX Alameda situation you’ll Know that it seems to have begun with an Article by coindesk published on the 2nd Of November this article contained Information about alameda’s balance Sheet and led to questions about FTX Many of these questions related to Whether funds on FTX were finding their Way to Alameda given that both companies Were founded and operated by the same People Sam bankman freed or SPF and his Friend Gary Wang we now know that FTX Used upwards of 10 billion dollars to Prop up Alameda now for those unfamiliar Alameda research is a crypto trading

Firm which rose to prominence in 2018 For making massive profits buying cheap BTC in the USA and selling it in Japan Where BTC prices were much higher as a Not so fun fact Alameda actively traded Almost every crypto on every exchange And subsequently became a market maker Meaning that it provided cryptocurrency To exchanges for their users to trade With Alameda quickly became one of the Largest market makers in crypto and is Also the largest recipient of all the Usdt Ever printed by tether and this is Basically why usdt has been wobbly As most of you will know the Catalyst That led to ftx’s collapse was binance CEO Chang Peng zhao’s tweet that his Exchange would be dumping its ftt stake Following all the revelations about the Relationship between FTX and Alameda This crashed ftt’s price and led to a Bank run at FTX given that FTX had given Most of its user assets to Alameda to Plug a multi-billion dollar hole in its Balance sheet a hole caused by terror’s Collapse FTX didn’t have the crypto on Hand to honor user withdrawals Finance Subsequently offered to buy FTX but Bailed on the deal because of balance Sheet concerns FTX Alameda research and Even FTX us which Sam said would be Unaffected all filed for bankruptcy late Last week along with the 100 plus Subsidiaries of these entities

SBF and some of his inner circle are now Reportedly quote under Supervision in The Bahamas where FTX is based meanwhile Up to a billion dollars of user funds From FTX seem to be on the move because Of the aforementioned hack the identity Of the hacker was apparently discovered By the Kraken cryptocurrency exchange Now how a hacker experienced enough to Do next level malware managed to get Caught by Kraken is beyond me the only Thing that makes less sense than that is Why SBF and Alameda CEO Caroline Ellison Haven’t been arrested yet heck Apparently SBF is playing video games While under supervision something tells Me this amnesty has to do with all the Political connections the pair have in The United States But let’s not go there now besides when The billions of dollars of customer Crypto will be recovered what everyone Is wondering is just how much damage the FTX Alameda situation will do to the Crypto Market if the charts didn’t make It clear enough the effects of this Fallout are still being felt logically The cryptocurrencies that have been hit Hardest are those with direct exposure To FTX and Alameda both entities are Estimated to have invested in over 250 Crypto projects and I’ll leave a link to A photo with the full list in the Description if you’re interested for now

I’ll just focus on the ones that have Been hardest hit and the ones that are Likely to be hardest hit going forward An easy way to check this is to go on Coin market cap and sort the top 100 Cryptos by those which have suffered the Largest losses over the last seven days At the time of shooting Solana is at the Top of this list followed by Aptos our Weave eight coin near protocol and Algorand if you watched any of our Videos about Solana you’ll know that it Was ftx’s de facto exchange chain as Such both FTX and Alameda leverage Solana for just about everything you Could imagine including defy nfts and Even the issuance of wrapped Cryptocurrencies all of which are now Basically worthless there’s no denying That the future of Solana is in question Because of the FTX Alameda situation Which is why I’ll be doing an update About the project later this week for What it’s worth Solana Labs the company Behind Solana has confirmed that it has Enough funds to continue building for 30 To 40 months As for Aptos if you watched our recent Video about that project you’ll know That FTX was one of its biggest Investors and was also actively advising The project The same goes for near protocol and for Apecoin FTX and Alameda were two of the

Biggest investors in the board Abe Yacht Club Our weave and algorand are where things Get interesting because FTX and Alameda Didn’t seem to have direct exposure to AR or algo however crypto VC multi-coin Capital did and it confirmed that 10 of Its assets are stuck on FTX I suspect That multi-coin may be selling AR algo And other alts to plug this hole if You’re wondering which other alts Multi-coin might be dumping check the r Weave or algorand prices on coin market Cap and click on the multi-coin capital Portfolio tab under the name note that You might have to click view all to see The other VCS also note that multi-coin Isn’t the only one in this position as An aside I also did find it quite weird That multi-coin deleted all of their Tweets yesterday hmm now when it comes To which cryptos are going to be hit the Hardest going forward almost all of them Are a part of Solana’s ecosystem if my Calculations are correct FTX and Alameda Collectively hold over 2 billion dollars Of soul This is roughly the same as their Collective Holdings of serum’s SRM token Next up appears to be maps.me with at Least 600 million dollars of exposure Aptos with at least 300 million dollars Of exposure and oxygen with at least 50 Million dollars of exposure FTX and

Alameda will likely liquidate all of These cryptos in the coming months to Compensate FTX investors and we hope Users Now if you were paying attention to the Screenshots from a few moments ago you Might have noticed that hobie’s Hobie Token and crypto.com’s Kronos coin are Near the top of the weekly losers list As well this has to do with all the Questions and concerns about the crypto Reserves of these exchanges for context Most major exchanges promise to disclose Details of their crypto balance sheets This is in part because of concerns in The crypto Community about contagion From the FTX Alameda situation and in Part because the crypto Community Doesn’t want another FTX Alameda Situation Let me just quickly say that crypto Holders calling for oversight of crypto Exchanges is something we predicted in Our recent video about the federal Reserve’s Vice chair for supervision Michael Barr Michael was the architect Of the laws put in place following the 2008 financial crisis time for part two Anyways the first exchange to disclose Its reserves was binance and it revealed An expectedly impressive portfolio 23 Billion dollars in busd which is issued By paxos a regulated Trust Company in The United States and 16 billion dollars

In usdt which is issued by tether a much Less regulated company Binance also holds around 7 billion Dollars worth of BTC seven billion Dollars worth of eth and 6 billion Dollars worth of BNB binance’s exchange Token another 11 billion dollars is held In other cryptocurrencies grand total Roughly 70 billion dollars of crypto no Information about liabilities though If I’m not mistaken the second exchange To reveal its reserves was crypto.com And the contrast to finances reserves Really couldn’t be more apparent 800 Million dollars in BTC over 500 million Dollars of ship almost 500 million Dollars in eth and 650 million in stable Coins and other cryptos Crypto.com’s incredibly large ship Holdings have turned heads in the crypto Community as has the exchange’s recent Transfer of its eth reserves to gate IO Another cryptocurrency exchange huobi Also recently transferred large amounts Of eth to binance and okx This has led to speculation that the Exchanges are secretly sharing Cryptocurrency amongst themselves to Ensure that their Reserve snapshots look Better than their reserves actually do Crypto.com and wobe seem to be at the Top of the speculation list hence the Crashes of the HT token and cro If that wasn’t bad enough it looks like

Users of these exchanges are starting to Withdraw their funds out of caution the Same way they did with FTX if these Precautionary withdrawals evolve into a Bank run and the exchanges don’t have All deposits covered one for one then we Could see crypto.com and Hobie follow in Ftx’s footsteps specifically insolvency I feel obligated to point this out Because the headlines do in fact suggest That both exchanges have been hit hard By the bear Market Crypto.com reportedly paid 700 million Dollars for the naming rights to a Stadium and recently cut anywhere Between 25 and 40 of its Workforce Depending on your source huobi is in a Similarly sticky situation as it was Heavily affected by China’s crypto Crackdown last spring was recently Acquired by a VC associated with Justin’s son and is currently in the Process of relocating its operations to The Caribbean These are just two of many reasons why I Would advise keeping your crypto in your Own personal wallet regardless of the Crypto exchange or platform you’re using The harsh truth is that the FTX Alameda Contagion is not over and this means the Only protection is a self-custodial Wallet you can get one at a discount Using our deals page in the description Anyhow of all the news that’s been

Overlooked in the crypto Market as the FTX Saga has held our gaze the headlines Related to Twitter are arguably the most Important that’s because new Twitter Owner Elon Musk recently warned that the Social media platform could go bankrupt If Twitter does go bankrupt it would be Very bad news for crypto simply because The algorithmic bubble that is known as Crypto Twitter provides the most Up-to-date info about the crypto Market A person could possibly get it would Also mean no crypto Integrations on the Platform either Luckily Twitter seems to be in a good Position as its number of daily active Users recently hit an all-time high of Over 45 million according to Elon this Number has been rising ever since he Announced his intention to acquire the Platform in mid-april in theory this Makes it the perfect time to introduce Verification for all users at a low cost Of eight dollars a month which is Arguably worth it just for the Entertainment it is provided on the Platform these past few weeks in Practice however this means that there Are more people looking to game the Twitter system than ever before Lo and behold this is exactly what Happened when Twitter allowed anyone to Buy a blue tick It didn’t take long for impersonators to

Start popping up not surprisingly Twitter’s decision to put an official Label in Gray on real accounts didn’t Really stick out to users this is why I Personally think Twitter should have Kept the blue tick mark process as is And introduced a new verification Mechanism instead I suppose it’s a bit Too late for that now because the Botched rollout of Twitter’s Verification has done its damage Lots of famous people were impersonated Including former heads of state and While it was amusing it was equally Concerning the most famous case was an Account that pretended to be a Pharmaceutical company promised free Medication for all and caused the stock Of the actual company to crash Unfortunately Twitter’s attempts to ban These impersonator accounts were Unsuccessful and the platform was forced To pause its new verification features Until further notice this means that Twitter is losing out on much needed Revenue but so far it continues to stay Afloat in any case if you’re curious About how Twitter’s acquisition came to Be and just how much some governments Are pushing back against it you can Check out our video about that using the Link in the description anyhow another Nugget of news that’s been neglected Recently is the lower than expected CPI

Numbers for October which came in last Thursday this was literally in the Middle of the FTX Alameda Fallout so it Was an easy headline to miss but it’s One that requires a few comments for Starters this positive CPI print is the Reason why the stock market and even the Crypto Market saw a recovery rally last Week the fact that the stock market Continues to Rally while crypto Continues to crash just goes to show you How bad the FTX Alameda situation is for Crypto it also suggests that the crypto Market could be headed much lower in the Coming months This is because the stock market and the Crypto Market are highly correlated and Though that correlation has been broken For the time being it’s still lurking in The background and it will bite you if You’re not careful as I mentioned in My Weekly Newsletter there’s a good chance That we will see a second leg lower in The stock market this means that the Crypto Market will go down with it but It ultimately depends on whether the Current trend of lower inflation Continues that’s because the markets Have been crashing in response to the Fed’s interest rate increases and the FED has been raising interest rates in Response to inflation It’s too soon to say for sure whether Inflation is actually coming down but

It’s safe to say that investors are Becoming more optimistic on that front The caveat is that if investors start to Expect that inflation is coming down but It suddenly starts to rise then the Market crash will be that much more Brutal I suspect this is exactly what Will happen over the winter months when Energy use around the world spikes and The shortages become acute there’s also Lots of uncertainty about the United States’s strategic petroleum reserves China’s zero covert policy and the Ongoing war in Ukraine all three of These negative macro factors could Theoretically be resolved in the coming Months but this seems unlikely for the Time being In short inflation is likely to continue And this means that the fed and other Central banks will continue raising Interest rates this will cause a global Recession and possibly one that’s deeper Than most investors are pricing in This will also cause crypto to crash but Create an opportunity for accumulation Regardless I reckon it’s wise to stack Fiat currencies during times like these So turning to the charts no it’s not Going to be pleasant we can see that BTC Is bleeding hard and that’s because it Finally broke a massive bear flag that Had been forming on the monthly Previous zones of support and resistance

Suggest we could drop to 14 to 15K in The coming weeks before falling to the Final Destination 10 to 12K so buckle up Last week’s top performing cryptos were Trust wallets twt token Pax gold GMX Dex’s GMX token Gemini’s gusd stablecoin And Fey protocols Fey USD stablecoin Starting with trust wallet it’s twt Token seems to have pumped because of The sudden shift towards self-custody in The crypto Community caused of course by All the FTX Alameda situation on-chain Data confirms that large amounts of BTC And eth have left exchanges over the Last week Now I must admit that I don’t really Trust the twt tokens price action Because it’s been up only since the Start of 2020. almost all its trading Volume is happening on binance which Makes sense since the exchange bought The wallet and made it its native wallet So I’d be careful with this one next up We have Pax gold or paxg which is a gold Back token issued by paxos the same Company that issues binance’s busd Stablecoin as expected Pax cheese rally Is due to a rally in the price of gold Plus a bit of extra volatility from Crypto holders fleeing to Safety in Times of crypto Market chaos because I’m Not all that familiar with the gold Market it would be unwise for me to do Any kind of analysis on the price of

Paxg all I will say is that gold tends To Rally during times of General Economic stress and you’ll recall that We are on the brink of a global Recession Then there’s the gmxdex’s GMX token Which is probably rallying because Crypto holders have switched from using Centralized exchanges to decentralized Exchanges as a result of last week’s Events to clarify GMX is a decentralized Exchange on arbitrim one of ethereum’s Many layer twos funnily enough gmx’s Limited price history again makes it Hard to assess where the token will go Next The longer term charts suggest it is in A slow but steady uptrend note that this Could change on a dime if defy related Regulations are introduced in the United States and this is a very real Possibility the same applies to stable Coins and this is one of the reasons I’ve been watching them very closely Lately the slight increase in the price Of Gemini’s gusd stablecoin seems to be Because of the billions of dollars that Are being rotated out of tether’s usdt And into other stable coins namely Circles usdc And finally we have Fey protocols Faye USD stablecoin which is a decentralized Stable coin I must say that it’s done a Good job of maintaining its Peg so far

This could change as the bear Market Gets worse but I reckon there’s a Bullish case to be made for the Decentralized stable coins that survive The purge One thing’s for sure and that’s that Centralized stable coins will come out The other side of the bear Market more Powerful than ever you can find out why One stablecoin issuer is already slowly Taking over the crypto industry by using The link in the description And that is all for today’s coin Bureau Weekly crypto review so if you enjoyed It you know what to do hit that like Button subscribe button and Bell icon Too if you’re looking to maximize your Gains during the bear Market the coin Bureau deals page is where you should go You can find the link to that resource And many others in the description below Thank you all so much for watching and I Will see you in next week’s episode