FTX went up in flames and impacted the broader crypto industry, prompting regulators to respond: Hodler’s Digest, Nov. 6-12.

Come every Saturday, Hodler’s Digest will help you keep track of every important news story happening this week. The best (and worst) quotes, adoption and regulatory highlights, leading coins, predictions and more – a week on Cointelegraph in one link.

This Week’s Top Stories

The FTX and Binance saga: Everything that has happened so far

An earthquake rocked the crypto space this week, the impact felt in many related stories about FTX, Alameda Research and Binance. Although the bad news came rolling in this week, suspicions related to FTX’s status seem to have started on November 2. The problem had to do with a large number of FTX Tokens (FTT) held by Alameda (Sam Bankman-Fried, alias SBF, founded Alameda and co-founded FTX). Until Nov. 6 Binance has decided to sell his sizable position in FTT. FTX withdrawal problem surfaced on November 7, symptomatic of a bank run. Binance expressed interest in buying FTX but refuse to buyCiting the problem on 9 Nov.

Other developments during the week included SBF is reportedly asking for $8 billion to cover exchange withdrawals and news about the situation affecting other big players such as Sequoia Capitalas well as Related regulatory headlines.

November 11 see SBF’s resignation as well as FTX, Alameda and FTX USA filed for Chapter 11 bankruptcy in the United States. About 130 entities within the FTX Group filed for bankruptcy.

BREAKING: Bahamian securities regulator freezes FTX assets

On November 10, FTX saw its assets frozen and its registration suspended by the Bahamas Securities Commission, based on suspicions of improper client funding. A temporary liquidator was elected by the Bahamian Supreme Court, meaning that FTX must now obtain permission to touch one of its assets. FTX is mainly based in the Bahamas, falling under its jurisdiction. The situation is about FTX user withdrawal has been touch and go, with some withdrawals seem to be approved and the funds leave the exchange. Additionally, FTX negotiated a deal with Tron to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX to external wallets without penalty.

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Daft Punk meets CryptoPunks as Novo faces up to NFTs

Chainlink Labs offers a proof-of-reserve service for exchanges under attack

Given the situation with FTX, talk has arisen around the need for advanced crypto exchanges with proof-of-reserve, which will basically guarantee that exchanges have enough assets to cover their liabilities. Chainlink Labs has developed a product that aims to make that process easier for exchanges. Some crypto exchanges has advanced with the intention of providing several types of proof-of-reserve systems (not necessarily Chainlink’s products, but several types of systems in general), including Binance, which has made a headway in the proof-of-reserve system.

The White House says ‘wise regulation of cryptocurrencies’ is needed, hinting at the situation with FTX

This week’s turmoil prompted the administration of United States President Joe Biden to monitor the crypto space, with the help of US regulatory bodies for enforcement. “Administration […] has consistently maintained that without proper supervision, cryptocurrencies risk harming Americans every day,” said White House Press Secretary Karine Jean-Pierre during a press briefing on November 10. “The latest news further underscores this problem and highlights why the prudent regulation of cryptocurrencies is. it is necessary.”

Post-election roundup: Who are the pro- and anti-crypto winners and losers from the US Midterms?

The US Midterm Elections take place on Nov. 8. The crypto space has a presence in the election, spanning a wide range of stances and positions on industry regulation held by politicians involved. Among the mix, JD Vance, a known owner of Bitcoin, won an Ohio Senate seat. Tom Emmer and Patrick McHenry, two figures in favor of crypto, also retained their positions in Minnesota and North Carolina, respectively. Brad Sherman, who is less favorable towards the crypto space, achieved re-election in California, however.

Winners and Losers

At the end of the week, Bitcoin (BTC) is in $16,932, Ether (ETH) in $1,274 and XRP in $0.37. The total market capitalization is in $859.61 billion, according to to CoinMarketCap.

Among the 100 biggest cryptocurrencies, the top three altcoin earners of the week were PAX Gold (PAXG) at 5.69%, Gemini Dollar (GUSD) at 0.71% and Dai (DAI) at 0.14%.

The top three altcoin losers of the week is FTX Token (FTT) at -89.18%, Solana (SOLD) at -50.30% and Loopring (LRC) changed to -38.47%.

For more information on crypto prices, be sure to read Cointelegraph’s market analysis.

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The most memorable quotes

“If the world economy is a circulatory system, it is stagnant. Its parts die.”

Michel Khazzakacryptographer and founder of Valuechain

“If you look closely, fractional NFT represents the essence of the Web3 concept.”

Alexei Kulevetsco-founder and CEO Walken

“I think what is often misunderstood is that Web3 is not an exclusive new internet. Inside Web3 we also find Web2, the same way we found the former World Wide Web in Web2.

Max Kordekpresident of Lisk

“With MiCA global [Markets in Crypto-Assets regulatory framework]FTX crash will not happen.

Stefan Bergermember of the European Parliament’s Committee on Economic and Monetary Affairs

“All crypto exchanges should do merkle-tree proof-of-reserves.”

Changpeng “CZ” ZhaoCEO of Binance

“FTX.com is an offshore exchange that is not regulated by the SEC. The problem is that the SEC has failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) go overseas. Punishing US companies for this is not sense.”

Brian ArmstrongCEO of Coinbase

Sunday forecast

below the price of Bitcoin takes shape as the ‘old coin’ hit a record 78% of the supply

Bitcoin started the week above $21,000, although the asset fell mainly after the FTX news broke, dipping below $16,000 on November 9, according to Cointelegraph’s BTC price index. BTC subsequently bounced back up to $18,000, but then declined once again.

Pseudonymous Decentrader co-founder Filbfilb explains why the FTX situation is such a big industry event. His explanation basically states that all was well during the recent crypto industry bull market, but players became overextended. Then the bear market came and falling prices created a hole in the company’s balance sheet. He explained that healthy recovery can be a multi-year endeavor.

FUD of the Week

Report: Tether freed $46M from USDT FTX, setting new precedent

Stablecoin publisher Tether Limited has apparently frozen about $46 million worth of USDT held in FTX’s Tron blockchain wallet, based on blockchain observations from Pope Alert on Nov. with regulatory investigations. In comments to Cointelegraph, a Tether spokesperson did not confirm the alleged freeze but noted the company’s regular communications with law enforcement.

Bitcoin miner Iris Energy faces a $103M default claim from creditors

Bear market victims continue this week, as news surfaced renewable energy Bitcoin mining operation Iris Energy’s financial struggle. According to a default notice issued by mining rig manufacturer Bitmain Technologies, the company reportedly owes $103 million in total. Several factors seem to have contributed to the decline in Iris Energy’s financial position, such as the depressed price of Bitcoin and rising electricity costs.

BlockFi restricts platform activity, including stops for client withdrawals

Withdrawals and other features have been paused on BlockFi, with the digital asset lending platform explaining that it is waiting for clarity around the FTX trial. In addition, BlockFi states that customers should refuse to deposit in BlockFi wallets or its platform of interest. BlockFi and FTX USA previously struck a deal involving a $400 million credit line given to BlockFi.

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Some central banks have dropped out of the digital currency race

At least four countries have scrapped or halted CBDC plans so far, and each central bank has its own reasons for not launching one.

Could Bitcoin have opened in the 1990s – Or is it waiting for Satoshi?

With the internet, elliptic curve cryptography, even the Merkle tree and the PoW protocol all present, Bitcoin was “technically possible” in 1994.

Editorial Staff

Cointelegraph Magazine writers and reporters contributed to this article.

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