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Search resuls for: "CRYPTO WIN"


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LONDON, Nov 25 (Reuters Breakingviews) - The crypto winter is bitterly cold. The FTX founder agreed that digital tokens were impossible to value since they generated no cash flow. In other words, the entire crypto world has the mechanics of a Ponzi scheme. In such a nightmare scenario, access to a decentralised, anonymised type of digital money could prove indispensable. In this world bitcoin serves as the lifeboat for civilisation, offering protection against both anarchy and the surveillance state.
Cathie Wood reiterated her forecast of bitcoin hitting $1 million by 2030 in a Bloomberg interview Tuesday. "Sometimes you need to battle test, you need to go through crises... to see the survivors." "Sometimes you need to battle test, you need to go through crises... to see the survivors," she said. "We think bitcoin is coming out of this smelling like a rose," she maintained. Similar to bitcoin, ether — the second largest crypto by market cap, behind bitcoin — has shed nearly 70% of its value year to date.
Barry Silbert, the founder of crypto conglomerate Digital Currency Group, has joined a growing list of industry leaders in trying to settle investors' nerves after the sudden collapse of FTX. Since FTX's rapid winddown two weeks ago, investors have worried about a crypto contagion affecting every corner of the industry. "We have weathered previous crypto winters," Silbert wrote, adding that "while this one may feel more severe, collectively we will come out of it stronger." They've each expressed shock at FTX's apparent deceit of investors and customers and emphasized that client assets are secure. It also absorbed the $1.1 billion debt that the bankrupt crypto hedge fund Three Arrows Capital owed Genesis.
El Salvador is making moves that could lead the country to raise $1 billion in bitcoin-backed bonds. In September 2021, El Salvador became the first nation in the world to adopt bitcoin as a legal currency. Bukele in November 2021 said El Salvador had partnered with digital assets firm Blockstream to launch a so-called bitcoin bond dubbed Volcano Bonds. El Salvador made its last bitcoin purchase in July, according to a CoinTelegraph report. A bitcoin-backed bond cannot be issued before Congress passed the proposed legislation.
Barry Silbert, chief executive officer of Digital Currency Group, says in an investor letter that the company has ‘ weathered previous crypto winters.’Digital Currency Group Inc. said 2022 revenue is on track to reach $800 million, down about 20% from what the cryptocurrency-focused conglomerate expected to generate last year. DCG is the parent company of Genesis Global Capital, a crypto lending firm that paused redemptions and loan originations on Nov. 16 after it couldn’t meet client withdrawal requests. DCG owes Genesis around $575 million that is due in May 2023, in addition to a $1.1 billion promissory note to Genesis due in June 2032, DCG Chief Executive Barry Silbert said in a letter to investors that was viewed by The Wall Street Journal.
Lawyers for collapsed crypto exchange FTX said in the company's first bankruptcy hearing on Tuesday that regulators from the Bahamas, where FTX was headquartered, have agreed to consolidate proceedings in Delaware. "What we are dealing with is a different sort of animal," said FTX counsel James Bromley. FTX lawyers confirmed earlier reports that the Southern District of New York's Cyber Crimes unit has begun an investigation into the matter. FTX lawyers have also made reference to cyberattacks, suggesting there were multiple attacks beyond the $477 million hack that occurred shortly after the company entered bankruptcy on Nov. 11. FTX customers had a global presence, but many were based in tax havens.
“While both Binance and FTX are not licensed here, there is a clear difference between the two: Binance was actively soliciting users in Singapore while FTX was not,” the MAS said. “With regard to FTX, there was no evidence that it was soliciting Singapore users specifically.”Regulators are expected to step up their oversight of the industry as a result of its worst-ever turmoil. Unlike other industry players, Binance has emerged relatively unscathed during what some are calling a “crypto winter,” which refers to the sector’s ongoing global liquidity crisis. FTX, by comparison, recently filed for bankruptcy after failing to secure a lifeline from Binance over its own money troubles. In recent weeks, investor Sequoia Capital and Singapore’s state-owned investment firm, Temasek, have each written down the value of their respective FTX stakes down to $0.
LONDON, Nov 21 (Reuters) - The implosion of cryptocurrency exchange FTX shows the need to bring the crypto world within the regulatory framework, Bank of England Deputy Governor Jon Cunliffe said on Monday. FTX, which has filed for U.S. bankruptcy court protection, has said it owes its 50 biggest creditors nearly $3.1 billion. He added that FTX's woes highlighted the need for regulators to put in place tighter controls as quickly as possible. "The FTX example underlines how important these aspects are," Cunliffe said. "Our aim is to ensure that innovation can take place but within a framework in which risks are properly managed," Cunliffe said.
Brian Armstrong, CEO and Co-Founder, Coinbase, speaks during the Milken Institute Global Conference on May 2, 2022. in Beverly Hills, California. Coinbase shares fell more than 8% Monday, extending a slide that's pushed the crypto exchange to its lowest point since its market debut in April 2021. The drop comes as bitcoin's slump continues and investors worry about contagion from FTX's spectacular collapse earlier this month. In June, the crypto exchange slashed 18% of its workforce. WATCH: CNBC's full interview with Coinbase CEO Brian Armstrong
JPMorgan reiterates Amazon as top idea JPMorgan said the e-commerce giant is well positioned heading into the holiday season. " Morgan Stanley initiates Las Vegas Sands as overweight and names DraftKings as a top pick Morgan Stanley said in its initiation of Las Vegas Sands that it sees an attractive risk/reward. Morgan Stanley downgrades MongoDB to equal weight from overweight Morgan Stanley said in its downgrade of the database platform company that it's concerned about slowing growth for MongoDB. JPMorgan reiterates Charles Schwab as overweight JPMorgan said Charles Schwab is well positioned as one of the biggest "distributors of third-party mutual funds." Morgan Stanley upgrades Restaurant Brands to equal weight from underweight Morgan Stanley said it likes that the owner of brands such as Burger King appointed the former Domino's CEO as executive chairman.
The collapse of FTX could weigh on cryptocurrencies for years, experts told Insider. And the dot-com crash shows that there could be further pain ahead. "In a very crude way, this isn't that different to the dot-com crash," Morningstar Investment Management CIO Dan Kemp told Insider. Just 48% of internet companies even survived the dot-com crash, and it took Amazon a decade to regain its peak share price of $113. Whether cryptocurrencies can bounce back as some tech stocks did 20 years ago remains to be seen.
Jack Taylor | Getty Images News | Getty ImagesU.S.-based crypto company Ripple no longer derives most of its income from America and is looking to expand its reach in Europe, its top lawyer said. Its commitment to invest in Europe comes despite a deep downturn in crypto markets that's been referred to as "crypto winter." watch nowThe Irish central bank previously handed a VASP license to crypto exchange Gemini. Last week, the shock collapse of Sam Bankman-Fried's crypto exchange FTX sent cryptocurrencies into a tailspin. As a private company, Ripple doesn't disclose its revenues publicly.
About a year ago, Coinbase had a valuation of $85 billion, but shares of the crypto firm have crashed more than 80% this year. FTX's collapse has shaken confidence in the crypto sector that was already in the thick of a deep bear market. On Friday, Goldman Sachs said Coinbase was sufficiently insulated from the FTX crash and had a highly liquid balance sheet. And S&P Global Market Intelligence has estimated that Coinbase burned through $278 million in cash last quarter, despite saving $391 million in cash outlays by paying employees with stock. And Genesis Global Capital, the crypto-lending arm of Genesis Global Trading, cited "the extreme market dislocation and loss of industry confidence caused by the FTX implosion," CoinDesk reported.
related investing news Cathie Wood's ARK Invest keeps buying more crypto assets despite FTX bankruptcy Crypto.com is smaller than FTX but still ranks among the top 15 global exchanges, according to CoinGecko. Kris Marszalek, CEO of Crypto.com, speaking at a 2018 Bloomberg event in Hong Kong, China. Marszalek has spent the early part of the week trying to reassure users and regulators that the business is fine. FTX CEO Sam Bankman-Fried said his company's assets were "fine" two days before he was desperate for a rescue because of a liquidity crunch. Marszalek said on Monday that this was just a reflection of the assets Crypto.com customers were buying.
Hong Kong CNN Business —Binance founder and CEO Changpeng Zhao is once again in the global spotlight, this time as the self-appointed white knight of crypto as the industry is embroiled in crisis. “Let’s rebuild.”Humble beginningsZhao launched Binance in July 2017 in China, gradually building it into the world’s largest crypto exchange. Binance CEO Changpeng Zhao attending the Viva Technology conference in Paris on June 16, 2022. In May, TerraUSD lost its dollar peg, which led to the collapse of its sister token and eventually created a huge global liquidity crisis in the crypto industry. The Binance chief said his firm had been asked to help as FTX grappled with liquidity issues.
The downfall followed a failed rescue deal with rival exchange Binance, with FTX now facing scrutiny from U.S. regulators over its handling of customer funds, as well as its crypto-lending activities. The Manhattan U.S. attorney's office declined to comment. Reuters reported last week that at least $1 billion of customer funds have vanished from FTX, citing sources. But the bigger blow to digital assets came since FTX, which had developed a penchant for bailing out troubled crypto firms, showed early cracks. "The FTX crash spotlighted well-known structural issues in the crypto ecosystem: insufficient reserves, conflict of interest, a lack of regulation and transparency, and unreliable data."
Investors stuck to crypto startups they considered "safe bets," but FTX's failure challenges that idea. Crypto startups held yacht parties through the summer and into early fall at events such as NFT.NYC and Messari Mainnet. "The whole crypto space is a high-leverage space, and it's susceptible to cascading failures." The events of the past week are unlikely to whet risk-averse LPs' appetite for crypto, investors told Insider. Even so, several investors who have backed crypto startups told Insider that despite the industry's recent travails, they remain believers in the technology.
But now, in the wake of crypto exchange FTX’s implosion, crypto investors were reminded of another risk they face: Crypto accounts lack guaranteed protections when the exchange or platform provider goes belly up. But most banks and brokerages, as well as 401(k) plans, do provide federally guaranteed protections and other insurance. What’s more, customers may unwittingly agree to let the company running an exchange or platform use their digital assets. Bank and credit union accountsIf you have a checking or savings account, a money market deposit account or certificates of deposit at a bank or credit union, make sure the institution has deposit insurance. There are several types of deposit accounts you may have at one bank (e.g., personal account, business account, etc.)
Bahamian police questioned FTX founder Sam Bankman-Fried on Saturday, Reuters reported. The police say they are investigating if "criminal misconduct occurred" tied to the downfall of FTX. Bankman-Fried was rumored to have fled to Argentina earlier this weekend. The Royal Bahamas Police questioned Bankman-Fried to discover if any "criminal misconduct occurred," Reuters reported on Sunday. The Financial Times later reported that FTX held only $900 million in sellable assets against $9 billion in liabilities.
FTX, the crypto exchange in crisis, found backers in BlackRock, VanEck, and Ontario Teachers. The solvency crisis facing the exchange and its famous CEO raises questions of a ripple effect. Now, in the middle of crypto winter, FTX is in the middle of a solvency crisis. Binance, a rival crypto exchange that was initially going to buy FTX, backed out. "What we like about it is that we're not really speculating on whether prices of crypto assets, bitcoin or otherwise, are going up or down.
Doximity — The online platform for medical professionals skyrocketed more than 27% after the company reported better-than-expected quarterly results. Walgreens — Shares rose 6% after an upgrade to buy from hold Deutsche Bank, which said it liked Walgreens' merger and acquisition plans. Duolingo — Shares of the foreign language learning platform lost 10% after the company reported revenue below expectations while also posting a smaller-than-expected quarterly loss. Wynn Resorts — The casino stock jumped more than 8% after China said it would ease some Covid restrictions, trimming quarantine time for international travelers by two days. General Motors — The automotive giant's stock jumped more than 6.3% after Citi reiterated the company as a top pick.
Sam Bankman-Fried's crypto exchange FTX collapsed in a matter of days and has started Chapter 11 bankruptcy proceedings. Less than a year after it boasted a $32 billion valuation, the crypto exchange, owned by Sam Bankman-Fried, faced a "liquidity crunch" that forced it to try to sell itself to rival Binance. "It's been a long time coming, and it's a real wild west out there for anybody who is trading crypto." Crypto exchanges should watch for contagion riskOther exchanges and companies should be on high alert for continued fallout. "As an investor, you should be seriously questioning what you're investing in if it can evaporate over a weekend," Royal said.
Sam Bankman-Fried's crypto exchange FTX collapsed in a matter of days and has started Chapter 11 bankruptcy proceedings. The FTX fiasco is the latest in a series of meltdowns to rock the crypto world this year. "It's been a long time coming, and it's a real wild west out there for anybody who is trading crypto." Big banks could be less likely to let people trade cryptoFinancial institutions like Goldman Sachs, JPMorgan, and Morgan Stanley tried to capitalize on the crypto boom last year with services like trading crypto futures or derivatives. Crypto exchanges should watch for contagion riskOther exchanges and companies should be on high alert for continued fallout.
Jordan Vonderhaar | Bloomberg | Getty Imageswatch nowSaylor was speaking on CNBC's "Squawk on the Street" as FTX's demise roiled the crypto market. Bitcoin tumbled 19% in December, as investors rotated into assets deemed safer in a tumultuous economy. David Marcus, former head of crypto at Facebook parent Meta , used a phrase that would soon enter the lexicon. "It's during crypto winters that the best entrepreneurs build the better companies," Marcus wrote in a Jan. 24 tweet. Ryan Gilbert, founder of fintech venture firm Launchpad Capital, said the crypto world is facing a crisis of confidence after the FTX implosion.
New York CNN Business —Stocks surged on Thursday in their best day since 2020 after a key inflation indicator came in softer than expected. Investors broke out their party hats as they interpreted the report to mean that peak inflation may finally be behind us. Crypto-advocates were hoping that rising interest and inflation rates would drive investors away from the dollar and into alternative assets like gold and Bitcoin. Then, central banks started raising rates to fight inflation, and the dollar strengthened significantly, seducing investors as the ultimate safe haven. Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s regime of interest rate hikes.
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