SBF trial underway, Mashinsky trial set, Binance’s market share shrinks: Hodler’s Digest, Oct. 1-7

Leading Stories This Week

Opening arguments begin in Sam Bankman-Fried trial

“The offender blamed a decline in the crypto market. SBFs lawyer Mark Cohen said the “sweetheart,” former Alameda Research CEO Caroline Ellison, and Changpeng Zhao, CEO of rival cryptocurrency exchange Binance, share some of the blame for the failure of FTX. Examine out our in-depth wrap-up on Sam Bankman-Frieds first week at trial.

Alex Mashinskys jury trial set up for September 2024

Alex Mashinsky, previous CEO of crypto lender Celsius, will be attempted on charges of scams and market control in September 2024, a judge picked Oct. 3. Mashinsky will remain complimentary on $40 million bail, based on take a trip and monetary restriction, in the meantime. Celsius applied for insolvency in July 2022 and Mashinsky was jailed in July of this year. He is accused of defrauding investors out of billions of dollars. The United States Commodity Futures Trading Commission, Securities and Exchange Commission and Federal Trade Commission all have active matches against Mashinsky too. Previous Celsius chief income officer Roni Cohen-Pavon pleaded guilty to four criminal charges in September.

Binance spot market share drops for 7th consecutive month

According to an analysis by CCData reported by Bloomberg, Binances share of the spot market fell from 38.5% in August to 34.3% in September. Ongoing struggles with regulators in the United States were determined as one cause of Binances market share decline, however they likewise pointed out the end of the exchanges zero-fee trading promo for significant trading pairs and Binances withdrawal from the Russian market, which made up 7% of its traffic.

A report shared with Cointelegraph by blockchain data analyst Nansen shows that FTX moved $4.1 billion worth of its native FTT tokens to Alameda Research between Sept. 28 and Nov. 1, 2022. FTX and Alameda Research managed around 90% of the FTT supply. Nansen recommended that the business were utilizing them to prop up each others balance sheets. FTX also transferred $388 million in stablecoin to Alameda Research throughout the same period. Information suggested that Alameda Research would not have been able to go through with its offer to Binance CEO Changpeng Zhao to purchase out that exchanges FTT holdings at $22 on Nov. 6. Alameda Research CEO Caroline Ellison made the deal on X (formerly Twitter) as the two entities rushed to control the chaos sparked by revelations of irregularities in their balance sheets. FTX declared bankruptcy days later.

Alameda sent $4.1 B of FTT tokens to FTX before crash: Nansen report

Valkyrie backtracks on Ether futures agreement purchases up until ETF launch

Possession management company Valkyrie stated in a filing with the U.S. Securities and Exchange Commission (SEC) on Sept. 29 that it will not acquire Ether in advance of getting approval for its exchange-traded fund (ETF). Valkyrie had actually previously informed Cointelegraph that it intended on enabling investors exposure to ETF futures prior to releasing its combined Bitcoin and Ether Strategy ETF in early October. Not only that, Valkyrie stated it would offer the ETH futures it had already purchased. Valkyrie is amongst a number of monetary companies that are anticipated to start using ETH futures ETFs soon. The SEC has delayed choices on numerous of them. Observers state it may be due to issues about a U.S. government shutdown.

Winners and Losers

FUD of the Week.

Lennix Lai, international chief industrial officer at OKX.

In crypto, its a lot better and more effective. You can see the pace is a lot much faster, and we can serve an even larger audience than standard financing right now.”.

At the end of the week, Bitcoin (BTC) is at $27,880, Ether (ETH) at $1,640 and XRP at $0.52. The overall market cap is at $1.07 trillion, according to CoinMarketCap.

” Macroeconomic headwinds are limiting our capability to produce earnings, and in response to the current market conditions and organization realities, we need to decrease functions across the international service.”.

With bond yields surging to 30-year highs, the financial markets are due for “mass liquidity injections” in the near future, according to BitMEX founder Arthur Hayes. This need to supply the next driver for the crypto booming market, he said.

Singer Vérités fan-first method to Web3, music NFTs and neighborhood building.

Vetle Lundem, senior analyst at K33.

Forecast of the Week.

From addressing runaway inflation to offering a safe and secure way to save money, Bitcoin can be an important financial tool for Cubans.

US Treasury sanctions crypto wallets as authorities punish fentanyl.

” The gravitational pull in crypto for the time being remain in BTC, with an appealing occasion horizon down the line, still favoring aggressive build-up.”.

” Banks have trillions of dollars of transactions with each other at the end of the day, but there is a cut-off time where you just can not transact globally. Its a huge discomfort point, and its inefficient and likewise pricey.”.

Pascal Gauthier, CEO and chairman of Ledger.

Features.
Make sure Ethereum wins– Steve Newcomb reveals zkSyncs prime directive.

Bitcoin holders were elated when the coin began October at a six-week high, but technical experts are alerting that it might be headed for a fall to $20,000 quickly. According to pseudonymous Bitcoin trader CryptoBullet, the present chart reveals a traditional “head and shoulders” pattern that typically means the rate will fall. The bottom of the left shoulder of this pattern is at around $20,000, suggesting that the price will be up to that point prior to recuperating. Joao Wedson, founder and CEO of crypto trading resource Dominando Cripto, went even further, claiming that Bitcoin might fall below $20,000. According to Wedson, the current price action is forming a fractal that looks comparable to the 2020-2022 period. The last time this happened, the price increased significantly in the beginning, however then collapsed back to lower levels by the end of the fractal. In Wedsons view, this suggests that we may remain in the early stages of a relocation below $20,000.

Is music the next frontier of blockchain adoption? Some artists think the technology can assist them sculpt out a sustainable career in the market.

” Why do I love these markets right now when yields are yelling higher? Bank designs have no principle of a bear steepener occurring,” Hayes argued. A “bear steepener” describes the phenomenon of long-lasting rate of interest rising faster than short-term rates of interest.

The top three altcoin losers of the week are ApeCoin (APE) at -9.5%, THORChain (RUNE) at -9.3% and Curve DAO Token (CRV) at -8.8%. For more information on crypto costs, ensure to check out Cointelegraphs market analysis.

Blockchain security platform Immunefi released a brand-new report on crypto hacks and frauds for the 3rd quarter. According to the report, the number of frauds and hacks increased by over 153% from July to September 2023 compared to the exact same period in the previous year. In Q3 2022, there were only 30 events, whereas there were 76 incidents in Q3 2023. An overall of over $680 countless crypto was lost from scams and hacks throughout the quarter. The largest hack of the quarter was of the Mixin procedure, which led to it being drained pipes of over $200 million, while the Multichain hack for over $126 million was the second biggest. The 2 most targeted networks were BNB Chain and Ethereum.

” We allowed Alameda to withdraw unrestricted funds.”.

Many Memorable Quotations.

” He told me to utilize Signal. He told the whole business. It also had auto-delete.

Bitcoin bull market waits for as United States deals with bear steepener– Arthur Hayes.

Features.
Powers On … Top 5 crypto legal and regulative advancements of 2021.

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The Office of Foreign Assets Control of the United States Department of the Treasury announced that it has sanctioned numerous wallets linked with manufacturers and dealers of the illicit drug, fentanyl. According to Deputy Treasury Secretary Wally Adeyemo, the wallets have “gotten countless USD funds over hundreds of deposits” as payment for various Fentanyl-related criminal activities. The wallet sanctions were started as part of an indictment that targeted some Chinese-based chemical makers. Valerian Labs, Hanhong Pharmaceutical, and Hebei Crovell Biotech were 3 of the celebrations called in the indictment.

Gary Wang, co-founder and previous chief innovation officer of FTX.

Bitcoin experts still predict a BTC rate crash to $20K.

Akshay Chopra, vice president, head of innovation and design for CEMEA at Visa.

Amongst the biggest 100 cryptocurrencies, the leading 3 altcoin gainers of the week are Trust Wallet Token (TWT) at 18.11%, Avalanche (AVAX) at 17.5% and Render (RNDR) at 17%..

Crypto suffered 153% YoY increase in hacks and scams in Q3.

The Truth Behind Cubas Bitcoin Revolution: An on-the-ground report.

Adam Yedidia, former FTX staff member and roomie of SBF.

” The faster this bear steepener increases, the quicker someone goes stomach up, the quicker everyone recognises there is no other way out aside from money printing to conserve govt bond markets, the much faster we get back to the crypto bull market,” Hayes stated.

6 Questions for JW Verret– the blockchain professor whos tracking the cash.

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“The accused blamed a slump in the crypto market. Alex Mashinsky, former CEO of crypto loan provider Celsius, will be attempted on charges of fraud and market control in September 2024, a judge chose on Oct. 3. According to an analysis by CCData reported by Bloomberg, Binances share of the spot market fell from 38.5% in August to 34.3% in September. On the derivatives market, Binances share fell from 53.5% to 51.5% in the same duration. Ongoing struggles with regulators in the United States were determined as one cause of Binances market share decline, but they likewise pointed out the end of the exchanges zero-fee trading promo for significant trading sets and Binances withdrawal from the Russian market, which made up 7% of its traffic.

The Harvard-educated lawyer responses concerns about crypto adoption and policy.

Editorial Staff.
Cointelegraph Magazine reporters and authors contributed to this article.