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Cryptonite October 2022
They laissez-faired. Now they are finding out.
It’s time for Cryptonite - our monthly roundup of all things crypto - with Tejaswi Nadahalli.
While we were recording this episode, Changpeng Zhao, the founder of Binance (the world’s largest crypto exchange), was trying to trigger a run on FTX, the world’s third largest crypto exchange.
It looks like he succeeded.
The first salvo from CZ:
Lines begin to form.
Liquidity dries up and withdrawals are frozen.
A shotgun marriage is proposed by the raider himself.
FTX equity is a donut.
Some large profile investors take a bath.
Maybe, it’s the future of finance after all.
So how did Binance end up with FTX equity?
How did FTX get here? Probably because it tried to bailout Alameda (Thread)
What’s the next domino to fall?
If pre-mines are equities, then most of DeFi is hosed.
Tejaswi pointed out that there’s actually a Bitcoin Miners ETF (ticker: WGMI, because, why not?) Launched in February this year. They should’ve launched an inverse of it simultaneously, NGMI.
Because a lot of miners are not making it.
Core Scientific may consider bankruptcy following uncertain financial condition (cointelegraph)
Bitcoin mining is a highly lucrative business as long as the price of bitcoin keeps going up — and as long as investors believe it will keep going up.
When the price crashes — and the price of bitcoin has halved since the start of the year — crypto miners face margin calls, they have to dump their bitcoins, and reality comes knocking.
But somehow, bitcoin’s hashrate keeps growing and growing. (bitcoinist)
Shoot your shot, they did.
If the scams don’t get you, the hacks will.
A hacker who stole $117 million in digital assets from decentralized finance exchange Mango Markets now says they'll return the funds, but only if token holders let them keep $70 million without the possibility of criminal prosecution. (bankinfosecurity)