Crypto Adventure https://cryptoadventure.com/ V3 Wed, 30 Nov 2022 05:52:55 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://cryptoadventure.com/wp-content/uploads/2021/05/cropped-favicon-32x32.png Crypto Adventure https://cryptoadventure.com/ 32 32 Coinbase Wallet Delists XRP and 3 Others, Cites Low Usage https://cryptoadventure.com/coinbase-wallet-delists-xrp-and-3-others-cites-low-usage/ Wed, 30 Nov 2022 00:56:17 +0000 https://cryptoadventure.com/?p=327211 Coinbase Wallet Delists XRP and 3 Others, Cites Low Usage

According to an update on the crypto platform’s help page, Coinbase wallet will no longer support payment network Ripple’s XRP token. The digital asset is not the only cryptocurrency Coinbase has delisted as Bitcoin Cash, Ethereum Classic, and Stellar will also be unavailable. Coinbase Halts Wallet Support for XRP, BCH, ETC, and XLM The delisting… Continue reading Coinbase Wallet Delists XRP and 3 Others, Cites Low Usage

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Coinbase Wallet Delists XRP and 3 Others, Cites Low UsageCoinbase Wallet Delists XRP and 3 Others, Cites Low Usage

According to an update on the crypto platform’s help page, Coinbase wallet will no longer support payment network Ripple’s XRP token. The digital asset is not the only cryptocurrency Coinbase has delisted as Bitcoin Cash, Ethereum Classic, and Stellar will also be unavailable.

Coinbase Halts Wallet Support for XRP, BCH, ETC, and XLM

The delisting will take effect from January next year and Coinbase’s wallet application will drop support for the aforementioned tokens. Coinbase Wallet like MetaMask and similar providers is a self-custody mobile-based wallet service. The app supports a broader range of cryptocurrencies than its peers. However, following the company’s latest move, clients will no longer be able to store their XRP, BCH, ETC, and XLM.

Coinbase Wallet can only store supported cryptocurrencies and access dapps on supported networks.”

No Unsupported Transactions Via Wallet App

Additionally, from January next year, Coinbase will not allow users on the wallet app to purchase, sell or conduct operations involving the affected assets. The company made sure to clarify in its post that assets that are currently on its wallet offering will be preserved. Rather than causing users to lose funds they currently hold, the firm will keep the assets tethered to their address. 

This does not mean your assets will be lost. Any unsupported asset that you hold will still be tied to your address(es) and accessible through your Coinbase Wallet recovery phrase.”

Coinbase issued a warning that trading the delisted tokens via the wallet would result in a loss. Notably, however, the delisting does not affect the status of the tokens on Coinbase.com. Nor does it affect trading of the coins on its exchange app; just the wallet. The post also provided instructions for users who may have to view or move the unsupported tokens following the delisting.

You will need to import your recovery phrase on another non-custodial wallet provider that supports these networks.” 

Low Usage, Coinbase Explains

XRP’s presence on the list may have been surprising due to the token’s status as the 7th largest cryptocurrency by market cap. The crypto network has been locked in a prolonged legal battle with the US Securities and Exchange Commission for years. XRP has managed to hold its own even weathering the FTX collapse with CEO Brad Garlington showing interest in the failed platform’s assets. 

However, in its release, Coinbase cited a reduction in use as the crux reason for the recent slew of removals. ETC’s and BCH’s removals while also surprising, might be less shocking. Both coins emerged from the top two cryptos by market cap, Bitcoin and ETH. At present, the affected coins are yet to react to the news. XRP and ETC are both up by 5% in the past 24 hours, while XLM has accrued ~3.5% in green.

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Coinbase Wallet Delists XRP and 3 Others, Cites Low Usage
Nexo Makes the Case for Why it Won’t Go Down Like BlockFi https://cryptoadventure.com/nexo-makes-the-case-for-why-it-wont-go-down-like-blockfi/ Tue, 29 Nov 2022 03:10:54 +0000 https://cryptoadventure.com/?p=327195 Nexo Makes the Case for Why it Won’t Go Down Like BlockFi

The crypto borrowing and lending platform Nexo recently provided transparency into exactly how its business makes money. Its lengthy breakdown follows the collapse of numerous high-profile crypto lending firms that were overexposed to defunct projects and businesses.  Nexo’s Business Model As Nexo explained in a Twitter thread on Monday, Nexo’s primary business strategy is to… Continue reading Nexo Makes the Case for Why it Won’t Go Down Like BlockFi

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Nexo Makes the Case for Why it Won’t Go Down Like BlockFiNexo Makes the Case for Why it Won’t Go Down Like BlockFi

The crypto borrowing and lending platform Nexo recently provided transparency into exactly how its business makes money.

Its lengthy breakdown follows the collapse of numerous high-profile crypto lending firms that were overexposed to defunct projects and businesses. 

Nexo’s Business Model

As Nexo explained in a Twitter thread on Monday, Nexo’s primary business strategy is to facilitate collateralized credit. Its core services include crypto collateralized loans, interest-bearing crypto accounts, and spot, futures, and options trading. 

Through its Earn product (crypto interest accounts) the company accrues funds for extending loans to other clients. By charging higher interest on client loans than the yield it provides its creditors, Nexo generates a net profit. 

By requiring 2:1 collateralization for the loans it issues, Nexo ensures that it always has enough to pay off creditors – even in the event of its borrowers defaulting. While crypto collateral can indeed be volatile, the firm also uses an auto liquidation mechanism to ensure collateral is sold before falling under a 120% value to loan ratio. 

“All these activities are revenue generators that require Nexo to hold on and move balances across a number of exchanges & DeFi protocols as part of standard operations,” explained Nexo. 

Many crypto companies, including lenders, lost money to FTX this month due to merely holding funds inside the firm. The exchange, which filed for bankruptcy alongside its sister firm Alameda Research, is thought to have commingled client assets with the trading desk. 

Two of those firms include BlockFi and Genesis Trading – the former of which also filed for bankruptcy on Monday. However, Nexo claims to have held no exposure to FTX, Alameda, Celsius, or any other firm to go insolvent this year. 

“We have consistently refused to extend uncollateralized loans to the high-flying crypto asset managers,” wrote Nexo. “It is a fundamental principle for Nexo that has resulted in no bad debt during market turmoils.”

Unlike FTX, the company further asserted that it has never used its native token, NEXO, to collateralize loans it receives.

Proof of Reserves?

Nexo said it is incapable of providing full proof of reserves for its assets – a newly popularized blockchain-based solution for auditing centralized crypto custodians. The company must hold its clients’ funds across multiple exchanges and DeFi protocols in order to generate revenue through trading. 

As such, the company uses an independent auditor to monitor all of its assets and liabilities. 

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Nexo Makes the Case for Why it Won’t Go Down Like BlockFi
Crypto Lender BlockFi Files for Bankruptcy https://cryptoadventure.com/crypto-lender-blockfi-files-for-bankruptcy/ Mon, 28 Nov 2022 20:07:25 +0000 https://cryptoadventure.com/?p=327191 Crypto Lender BlockFi Files for Bankruptcy

According to a recent press release, crypto lending firm BlockFi has filed for chapter 11 bankruptcy protection. The company predictably began to battle liquidity issues in the wake of FTX’s monumental crash. BlockFi Hopes to Restructure The lender submitted its application for bankruptcy protection in the United States Bankruptcy Court for the District of New… Continue reading Crypto Lender BlockFi Files for Bankruptcy

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Crypto Lender BlockFi Files for BankruptcyCrypto Lender BlockFi Files for Bankruptcy

According to a recent press release, crypto lending firm BlockFi has filed for chapter 11 bankruptcy protection. The company predictably began to battle liquidity issues in the wake of FTX’s monumental crash.

BlockFi Hopes to Restructure

The lender submitted its application for bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey alongside 8 affiliated companies. BlockFi’s goal is reportedly to bring operations back to steady ground. Chapter 11 of the Bankruptcy Code typically allows for reorganization, which BlockFi aims to accomplish to benefit clients and other stakeholders.

First BlockFi is set to redeem all obligations owed to it by counterparties such as FTX and related entities. As the FTX crisis is yet to come to an end, however, the lender acknowledges this might take some time. The press release noted that BlockFi has sought approval from the court to continue operations for now. 

The lender aims to smoothly transition into Chapter 11. BlockFi has roughly $257M in cash at the moment according to its report.

Platform activity continues to be paused at this time. BlockFi has US$256.9 million in cash on hand, which is expected to provide sufficient liquidity to support certain operations during the restructuring process.”

More than 100,000 Creditors

Per the platform’s bankruptcy application, the range of both its assets and liabilities rests somewhere between $1-$10 billion. The filing revealed that BlockFi has over 100,000 creditors. Ankura Trust Company is at the top of the list with unsecured claims worth $730 million. Another major creditor is West Realm Shires Inc which is FTX US’s business name, the company has a $275M unsecured claim. 

BlockFi also owes the Securities and Exchange Commission (SEC) $30 million due to penalties from earlier this year. Indeed, the firm had to pay a $100M settlement for charges that its high-yield crypto lending program breached state and federal securities laws.

Chapter 11 is BlockFi’s Best Bet

BlockFi also spoke about the filing in a post on Twitter, assuring users of regular updates. Indeed they also shared a blog post revealing further details of their bankruptcy protection. 

The company originally hit pause on withdrawals at the onset of the FTX crisis. However, its troubles go back a few months to when BlockFi experienced difficulties due to exposure to crypto hedge fund Three Arrows Capital. Around this time CEO Zac Prince stated that the company had to liquidate a major client, however, he did not reveal whether it was 3AC. 

In July FTX provided a $400M line of credit thus allowing the crypto lender to evade bankruptcy back then. However, following FTX’s downfall BlockFi is back where it started. According to their blog post, the team looked into every possible option before settling for the Chapter 11 filing.

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Crypto Lender BlockFi Files for Bankruptcy
Vave Casino and Betting – Comfortable Crypto Gaming in Complete Anonymity https://cryptoadventure.com/vave-casino-and-betting-comfortable-crypto-gaming-in-complete-anonymity/ Mon, 28 Nov 2022 09:13:21 +0000 https://cryptoadventure.com/?p=327175 Vave, a modern crypto casino and sports betting brand, has officially launched, allowing players to gamble with crypto and fiat on numerous casino games and sports events. The platform also offers live casino experiences and exclusive VIP services in a comfortable and anonymous setting.

Vave, a modern crypto casino and sports betting brand, has officially launched, allowing players to gamble with crypto and fiat on numerous casino games and sports events. The platform also offers live casino experiences and exclusive VIP services in a comfortable and anonymous setting. Vave aims to become the powerhouse of anonymous crypto gambling on… Continue reading Vave Casino and Betting – Comfortable Crypto Gaming in Complete Anonymity

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Vave, a modern crypto casino and sports betting brand, has officially launched, allowing players to gamble with crypto and fiat on numerous casino games and sports events. The platform also offers live casino experiences and exclusive VIP services in a comfortable and anonymous setting.Vave, a modern crypto casino and sports betting brand, has officially launched, allowing players to gamble with crypto and fiat on numerous casino games and sports events. The platform also offers live casino experiences and exclusive VIP services in a comfortable and anonymous setting.

Vave, a modern crypto casino and sports betting brand, has officially launched, allowing players to gamble with crypto and fiat on numerous casino games and sports events. The platform also offers live casino experiences and exclusive VIP services in a comfortable and anonymous setting.

Vave aims to become the powerhouse of anonymous crypto gambling on a global scale. To this end, it focuses on attracting a worldwide audience of crypto enthusiasts seeking top-quality entertainment in a secure and engaging environment.

The platform offers a substantial selection of slots, live dealer games, an innovative sportsbook, and Vave-produced casino games. Players can enjoy seamless crypto-gaming and instant cryptocurrency purchasing with fiat available directly in their accounts.

Vave stands out with its easy-to-use interface, 100% anonymity, and safe and fair gaming experiences. Moreover, the platform rewards users with welcome bonuses and deposit and reload bonuses for the sportsbook and the casino. For example, new users get a 100% bonus and 100 free spins for casino games. Lastly, players can rely on the Vave Rescue Rangers for fast and helpful customer support.

Here are some of the main Vave features:

Casino Games

Vave has a versatile offer of new and popular slots, roulette, Blackjack, and game shows. The platform includes many crypto-friendly games where users can deposit and gamble with their cryptocurrencies of choice.

The website also hosts games from other developers that support all popular fiat currencies. These applications come from trusted providers and gaming studios.

The live casino feature includes many gamblers’ favorite games, such as poker, roulette, baccarat, Blackjack, Monopoly, and Dream Catcher.

Sports fans can bet on numerous live and upcoming events through the Vave Sportsbook. The platform allows users to gamble on various football, tennis, and basketball outcomes.

Deposits and Withdrawals

Vave is a blockchain-based online casino allowing users to deposit, gamble, and withdraw in all major cryptocurrencies. The minimum deposit is $20 or the equivalent in crypto.

The platform does not employ withdrawal limits, although particular conditions may apply to some currencies. Users must wager their crypto deposits at least once before withdrawing. Deposits and withdrawals occur instantly.

Vave partnered with CoinsPaid crypto wallet, enabling users to deposit and transact with Bitcoin. Currently, withdrawals are only available to crypto wallets like Changelly. Meanwhile, the platform supports the use of Onramper which includes VISA, MasterCard, Google Pay, and Apple Pay, and only works for deposits.

Security and Fairness

Vave uses the latest security tools and data encryption mechanisms to protect the users’ data completely. Moreover, the platform stores all BTC deposits in cold wallets to ensure secure and anonymous user transactions.

The slot games hosted on the platform use a Random Number Generator system making the results unpredictable and fair.

Vave encourages responsible gambling and provides users options for wagering and session limits. Furthermore, the platform allows players to take a cooling-off period, a small gambling break available between a day and up to six months.

About Vave

The Vave website is managed and operated by TechOptions Group B.V., a Curaçao-based company with a registered office in Cyprus.

Opening an account on Vave is quick and easy via the registration form on the platform’s homepage. Users must provide accurate information and activate their accounts through the links they receive in the confirmation emails. The platform only allows players to have up to one account to protect user data and deter scammers and deceptive schemes.

The Vave support team is available 24/7 via Live Chat. For more information about Vave, please follow these links: Website | Twitter.

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Vave, a modern crypto casino and sports betting brand, has officially launched, allowing players to gamble with crypto and fiat on numerous casino games and sports events. The platform also offers live casino experiences and exclusive VIP services in a comfortable and anonymous setting.
WMA: Most Assets Record Minor Gains but Bitcoin Stagnates https://cryptoadventure.com/wma-most-assets-record-minor-gains-but-bitcoin-stagnates/ Sun, 27 Nov 2022 16:04:40 +0000 https://cryptoadventure.com/?p=327169 WMA: Most Assets Record Minor Gains but Bitcoin Stagnates

Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $842 billion. Bitcoin is trading at around the same value as last week, $16,500. Ethereum gained more than 3% over the past seven days. XRP increased by nearly 8%… Continue reading WMA: Most Assets Record Minor Gains but Bitcoin Stagnates

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WMA: Most Assets Record Minor Gains but Bitcoin StagnatesWMA: Most Assets Record Minor Gains but Bitcoin Stagnates

Get the weekly summary of crypto market analysis, news, and forecasts!

This Week’s Summary

  • The Crypto Market ends the week at a total market capitalization of $842 billion.
  • Bitcoin is trading at around the same value as last week, $16,500.
  • Ethereum gained more than 3% over the past seven days.
  • XRP increased by nearly 8% this past week.
  • Almost all altcoins and Metaverse projects are trading in the green.
  • The DeFi sector decreased the total value protocols (TVL) to around $39 billion.

Crypto Trends 21 – 27 November 2022: Market Analysis and Performance

The crypto market bounced back this week from the losing streak that followed FTX’s infamous implosion. Most crypto assets record shy gains, with few boasting double-digit value boosts. On the other hand, most Metaverse projects are flying high, and the overall market capitalization increased by around $20 billion.

Bitcoin tried to follow the market sentiment and push past the now psychologically daunting $17,000 barrier. Unfortunately, it only achieved a dismal effort, and the king crypto dropped again towards the lower part of the $16,000s. After a bit of seesawing, BTC settled at around the same value where it was trading last week. Most likely, it will end the week trading at around $16,500.

Ethereum had a terrible start to the week but quickly recovered to move far from the $1,000 support level. The second crypto in command is only 3% up this week, but it might just be enough to calm down its backers. ETH is trading at around $1,200 and looking to build on its uptrend next week.

Altcoins & DeFi

Several altcoins are ending a relatively successful week. For example, BNB is up by nearly 16%. Meanwhile, Dogecoin has increased by over 26% and Litecoin by almost 24%. These coins are the best climbers in this corner of the crypto market.

Elsewhere, XRP is riding high on the back of an 8% value boost. Polygon is up by 3%, Shiba Inu by 5%, Solana by 11%, and Chainlink by nearly 18%.

On the other hand, things could be easier on other altcoins that are still bleeding. For instance, Polkadot and Cardano are each down by 1%. Meanwhile, Chiliz has decreased by a whopping 24%.

This week, the Metaverse sector is the most successful segment of the crypto market. The top climber is Ape Coin, sitting comfortably on a 23% value increase. Meanwhile, Theta Network is up by 9%, Axie Infinity, and The Sandbox by 1%.

The DeFi sector lost almost $10 billion from the total value in locked protocols (TVL), now at nearly $39.65 billion.

Crypto Market Analysis – What’s in the News?

  • Binance released its Proof of Reserves documents.
  • Elon Musk blasts Legacy Media’s “gingerly” SBF coverage.
  • Singapore launched a probe into crypto lender Hodlnaut.

Next Week’s Crypto Market Forecast

The crypto market experienced a slight recovery this week, but it is unlikely to last long. A recoil was expected, considering the magnitude of the market’s crash after the FTX debacle. Currently, rumors and speculations reign highly and influence many of the movements. Next week should follow in the same sentiment.

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WMA: Most Assets Record Minor Gains but Bitcoin Stagnates
Binance Releases its Proof of Reserves — But is it Enough? https://cryptoadventure.com/binance-releases-its-proof-of-reserves-but-is-it-enough/ Sat, 26 Nov 2022 02:31:01 +0000 https://cryptoadventure.com/?p=327162 Binance Releases its Proof of Reserves — But is it Enough

Binance released its highly anticipated proof of reserves (PoR) on Friday, providing blockchain-based evidence for the Bitcoin on its books.  However, many in the crypto community question Binance’s approach. Also, they aren’t fully sure they have the transparency they’re looking for. The Move to Proof of Reserves As Binance explained in its announcement, the exchange’s… Continue reading Binance Releases its Proof of Reserves — But is it Enough?

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Binance Releases its Proof of Reserves — But is it EnoughBinance Releases its Proof of Reserves — But is it Enough

Binance released its highly anticipated proof of reserves (PoR) on Friday, providing blockchain-based evidence for the Bitcoin on its books. 

However, many in the crypto community question Binance’s approach. Also, they aren’t fully sure they have the transparency they’re looking for.

The Move to Proof of Reserves

As Binance explained in its announcement, the exchange’s transparency system will add multiple tokens and networks within the next two weeks. For now, it solely validates its Bitcoin holdings. 

The company’s initial audit proved that it owns 582,486 BTC in its on-chain reserve, while its customers hold a 575,742 BTC net balance. This makes for a 101% collateral ratio. 

Users can verify that their personal balance is held with Binance by checking on their relevant Merkle leaf and record ID on Binance’s website. A Merkle leaf is a transaction within a merkle tree, a structure used to efficiently store data inside a blockchain. 

Binance will soon introduce third-party auditors to validate its proof of reserves results and increase the privacy of the system using ZK-SNARKs. As explained by Ethereum co-founder Vitalik Buterin, this will allow users to verify Binance’s solvency, and their own balances, but “would reveal nothing about the balance of any other user.”

Binance announced its plans to implement Merkle-tree proof of reserves after FTX proved unable to process customer withdrawals this month. Many suspect the exchange to have commingled users’ assets with Alameda Research and used them for lending without permission. On November 11th, both FTX and Alameda filed for bankruptcy. 

Criticisms of Proof of Reserves

Many were excited by Binance’s efforts to reassure users with added transparency. Still, others were skeptical that its current implementation will actually prevent another FTX-like blowup. 

“I’m sorry but no. This is not PoR,” said Kraken co-founder Jesse Powell in response to Binance’s announcement.  “This is either ignorance or intentional misrepresentation.”

Powell argued that hashing users’ records into Merkle trees isn’t helpful without proof that the exchange didn’t include accounts with negative balances. “The statement of assets is pointless without liabilities,” he said.

The co-founder made a similar criticism of CoinMarketCap’s PoR system, pointing out key details it lacked to make it helpful. These included an audit of the company’s liabilities, and proof that the exchange actually controls its wallets. 

Kraken also uses a proof of reserves system. However, it includes an auditor to ensure Kraken doesn’t use negative balances to distort its numbers.

Even under a complete PoR system, Powell noted that the system still cannot prove whether a company has borrowed against client assets. 

Despite the co-founder’s skepticism, Binance CEO Chanpeng Zhao welcomed the criticism. “I view these as healthy checks,” he said on Friday. 

Who Else is Considering PoR?

Coinbase – Binance’s next largest competitor – announced on Friday a $500 million developer grant to craft new proof of reserves systems. The exchange clarified that it still uses traditional, audited financial statements to prove its own reserves.

Gate.io provided a proof of reserves statement late last month. However, it came under scrutiny after mysteriously receiving a $300 million ETH transfer from Crypto.com. However, the exchange has clarified that these funds, which have been returned, were not included in the audit. 

Grayscale – the world’s largest Bitcoin fund – refused to provide proof of reserves despite popular demand from the crypto community this month. “Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve,” it said last Friday. 

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Binance Releases its Proof of Reserves — But is it Enough
Elon Musk Blasts Legacy Media’s ‘Gingerly’ SBF Coverage https://cryptoadventure.com/elon-musk-blasts-legacy-medias-gingerly-sbf-coverage/ Fri, 25 Nov 2022 00:05:39 +0000 https://cryptoadventure.com/?p=327149 Elon Musk Blasts Legacy Media’s ‘Gingerly’ SBF Coverage

While busy managing Twitter, Elon Musk has still been keeping up with the drama surrounding FTX and its former CEO, Sam Bankman-Fried (SBF). The billionaire has written numerous tweets this week signaling his distaste for SBF and media outlets covering him uncritically.  Musk began by ripping into the Wall Street Journal on Monday. The outlet… Continue reading Elon Musk Blasts Legacy Media’s ‘Gingerly’ SBF Coverage

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Elon Musk Blasts Legacy Media’s ‘Gingerly’ SBF CoverageElon Musk Blasts Legacy Media’s ‘Gingerly’ SBF Coverage

While busy managing Twitter, Elon Musk has still been keeping up with the drama surrounding FTX and its former CEO, Sam Bankman-Fried (SBF).

The billionaire has written numerous tweets this week signaling his distaste for SBF and media outlets covering him uncritically. 

  • Musk began by ripping into the Wall Street Journal on Monday. The outlet published an opinion piece claiming that FTX ultimately failed “because Sam Bankman-Fried’s supporters lost confidence in him.”
  • “Yeah umm … that is definitely not the reason it failed,” replied Musk. He later criticized the publication for giving “foot massages to a criminal” in another article about SBF’s so-called “mission to save the world.”
  • FTX filed for bankruptcy on November 11th after the exchange proved incapable of satisfying customer withdrawal requests. Bankman-Fried admitted to facing an $8 billion shortfall on customer deposits. 
  • Other exchange CEOs, including Coinbase chief Brian Armstrong, said it was likely that SBF re-hypothecated customer assets without their permission. On-chain data suggests the exchange’s Bitcoin and Ethereum balances are now near zero. 
  • Elon Musk later bashed Semafor, a global news platform, for publishing a story claiming FTX owned shares on Twitter. Musk said this was “flat wrong,” and that Semafor no longer “cared about the truth.” He called Business Insider “not a real publication” for sharing the same story.
  • Sam Bankman-Fried happens to have invested in Semafor, which Musk considered a major conflict of interest.
  • “The very real concern here is that you have been pushing a completely false SBF ownership of Twitter narrative while effectively being his paid shill,” Musk told the news outlet.

  • By Wednesday, Musk had taken his criticism to the New York Times. The publication pushed an article praising SBF’s philanthropic donations while failing to mention his bankruptcy and potential exchange fraud. 
  • In response, Musk said SBF’s overall “gingerly” coverage has been “one the biggest failures in US journalistic integrity of the 21st century.”
  • SBF announced on Wednesday that he would speak on a panel with the New York Times on November 30th. Twitter’s crypto community has been indignant over the news, demanding that he be put in prison instead.

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Elon Musk Blasts Legacy Media’s ‘Gingerly’ SBF Coverage
Singapore Launches Probe into Crypto Lender Hodlnaut https://cryptoadventure.com/singapore-launches-probe-into-crypto-lender-hodlnaut/ Thu, 24 Nov 2022 15:56:32 +0000 https://cryptoadventure.com/?p=327139 Singapore Launches Probe into Crypto Lender Hodlnaut

In a recent publication, the Singapore police force revealed that they are looking into crypto lending platform Hodlnaut. The agency’s Commercial Affairs Department is reportedly handling the investigation into accusations of cheating and fraud among the DeFi lender’s leadership. Users File Complaints with the Police According to the release, several accusatory reports surrounding the platform… Continue reading Singapore Launches Probe into Crypto Lender Hodlnaut

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Singapore Launches Probe into Crypto Lender HodlnautSingapore Launches Probe into Crypto Lender Hodlnaut

In a recent publication, the Singapore police force revealed that they are looking into crypto lending platform Hodlnaut. The agency’s Commercial Affairs Department is reportedly handling the investigation into accusations of cheating and fraud among the DeFi lender’s leadership.

Users File Complaints with the Police

According to the release, several accusatory reports surrounding the platform have made their way to the police since August. These allegations claim that the company’s leadership had shared false data regarding its exposure to an undisclosed virtual asset.

Arising from these police reports, the CAD is investigating Hodlnaut and its directors for possible cheating and fraud offences under Sections 417 and 424A of the Penal Code 1871,” said the police release.

In their release, the police encouraged users to submit reports if they had deposited assets with Holdnaut and felt they had been defrauded afterward. They also instructed them to submit documents backing up their claims of transacting with the lender.

Such documents include the records of the payments made to and received from Hodlnaut as well as relevant correspondence with Hodlnaut.” 

Hodlnaut Implicated in Terra Exposure

Hodlnaut’s troubles go back to May. It was one of many platforms to take  a major blow from the Terra ecosystem’s dramatic collapse. Interestingly, when the crash first took place, Hodlnaut informed users that it had zero ties to Do Kwon. It also renounced ties to the Do-Kwon-led TFL’s algorithmic stablecoin, TerraUSD Classic (USTC). However, on-chain data later disclosed USTC exposure worth a minimum of $150 million, disproving Hodlnaut’s initial statement.

Hodlnaut was able to hide its exposure for nearly 3 months. However, in August the crypto lender shut down withdrawals attributing the move to difficult market conditions. Notably, some employees took out more than $500,000 worth of assets a month suggesting they knew there were problems.

A few weeks later, Hodlnaut applied for and received approval from the court to be placed under judicial management. The lender’s hope was that this move would help it with rehabilitation and ward off a forced liquidation of its assets.

Hodlnaut Faces Uphill Struggle

A later report from the interim judicial managers confirmed the company’s exposure to the Terra crash placing its losses at about $190M. Hodlnaut allegedly disposed of over 1000 documents that could have revealed its losses. As such, the judicial managers were unable to work towards resolving its issues.

To make matters worse, last month, the exchange informed the public that it had sizeable assets in FTX before its collapse. According to its release, more than 70% (~$13M) of the troubled lender’s assets held on CEXs had been desposited in FTX.

It is still unclear whether Hodlnaut’s managers moved funds away from FTX before operations ceased. Regardless, Hodlnaut’s directors are now facing an investigation for withholding information from the company’s clients.

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Singapore Launches Probe into Crypto Lender Hodlnaut
Vitalik Calls Out Bitcoiners for Supporting El Salvador’s ‘Undemocratic” Government https://cryptoadventure.com/vitalik-calls-out-bitcoiners-for-supporting-el-salvadors-undemocratic-government/ Thu, 24 Nov 2022 00:41:43 +0000 https://cryptoadventure.com/?p=327116 Vitalik Calls Out Bitcoiners for Supporting El Salvador’s ‘Undemocratic” Government

Ethereum co-founder Vitalik Buterin spoke on Saturday about the crypto community’s tendency to enable and welcome nefarious actors.  He named El Salvador President Nayib Bukele as an example, accusing enthusiastic Bitcoiners of overlooking his “not democratic government.” Enabling Bad Actors In an interview with The Straits Times, Buterin discussed the numerous “small countries” whose governments… Continue reading Vitalik Calls Out Bitcoiners for Supporting El Salvador’s ‘Undemocratic” Government

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Vitalik Calls Out Bitcoiners for Supporting El Salvador’s ‘Undemocratic” GovernmentVitalik Calls Out Bitcoiners for Supporting El Salvador’s ‘Undemocratic” Government

Ethereum co-founder Vitalik Buterin spoke on Saturday about the crypto community’s tendency to enable and welcome nefarious actors. 

He named El Salvador President Nayib Bukele as an example, accusing enthusiastic Bitcoiners of overlooking his “not democratic government.”

Enabling Bad Actors

In an interview with The Straits Times, Buterin discussed the numerous “small countries” whose governments are experimenting with crypto adoption. When asked whether such efforts were safe for the countries involved, the developer said it depends on how these efforts are executed.

“The biggest risk of being friendly is if you end up attracting the terrible people,” said Buterin. “If you get a certain kind of reputation, it’s very easy to accidentally attract all of the Do Kwons.”

Ethereum (ETH) Founder Vitalik Buterin Blasts DeFi Model in Terra Critique - Bloomberg
Vitalik Buterin. Source: Bloomberg

Do Kwon was the founder of Terraform Labs, the primary developer behind the Terra blockchain. Terra’s two primary cryptocurrencies – LUNA and UST – surged into crypto’s top 20 last year, only to quickly spiral and collapse in May 2022. Kwon is now faces international investigation and the ire of investors worldwide for scamming token holders of billions of dollars. 

Before the collapse, Do Kwon had amassed a large social media following and often responded rudely to his critics online. Many within the Bitcoin community even sung his praises as he promised to buy $10 billion in Bitcoin for Terra’s stablecoin reserve.

“One of the things we can do better is not have a community that’s supportive of that kind of behavior,” Buterin said. 

Bitcoin and Bukele

Though the crypto community has since distanced itself from Kwon, Bitcoiners remain highly supportive of El Salvador President Nayib Bukele. The politician made Bitcoin legal tender in 2021, while launching a state-run Bitcoin wallet available to all citizens. Ethereum’s co-founder, however, is still not a fan.

“A lot of Bitcoin people just ignored the fact that Bukele’s government is very not democratic,” he continued. “They just let themselves ignore that because ‘look, our country is adopting Bitcoin.’”

The developer added that El Salvador’s “top-down enforced” method to encouraging adoption has failed in the face of Bitcoin’s crashing price. “Now it just looks terrible, and not many people are using it.”

Buterin criticized Bukele’s Bitcoin law last year for a stipulation requiring that businesses accept Bitcoin if possible. Bukele later clarified that this rule was only truly being enforced on major retail chains.

While adoption has been slow, Bukele is pressing ahead with plans to purchase Bitcoin for El Salvador’s reserves. The nation’s parliament on Tuesday revealed a digital asset issuance bill that will allow the country to begin issuing Bitcoin-backed bonds. 

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Vitalik Calls Out Bitcoiners for Supporting El Salvador’s ‘Undemocratic” Government Ethereum (ETH) Founder Vitalik Buterin Blasts DeFi Model in Terra Critique - Bloomberg