Crypto Market Overview November 9th | Dex-Trade
FTX Collapses: American Crypto Giant Sells Its Operations to Binance
The American cryptocurrency exchange FTX, the founder and CEO of which is a young billionaire Sam Bankman-Fried, was on the verge of bankruptcy due to the loss of liquidity of native FTT tokens and turned to the management of the largest crypto exchange Binance with an offer to buy a “sinking ship”. Binance founder Changpeng Zhao (CZ) described the issue as dynamic and stated that his company is evaluating the deal in real time and reserves the right to withdraw from it at any time. That being said, FTT is expected to continue to be volatile as the challenges that Binance will face in the buying process are not yet predictable. Meanwhile, Bankman-Fried lost almost 93% of his personal capital: his fortune decreased from $16 billion to approximately $991 million in just a day. But it is possible that the acquisition of FTX will help solve the problem of lack of liquidity and protect not only the clients of the crypto exchange, but also the capital of its CEO from losses. But there is one “but”: in connection with the active global expansion of Binance, many politicians around the world are looking for any legal way to restrict and control the activities of the trading platform, so the purchase of FTX will certainly raise questions from the US Antimonopoly Committee, which has been eyeing the platform for years. In any case, stock up on popcorn and wait for the big news.
Brian Armstrong of Coinbase Hypes Amid FTX Crash
Crypto exchange Coinbase CEO Brian Armstrong caught the hype from FTX's collapse and told his 1.1 million Twitter followers that his marketplace is not investing in its troubled competitor and has no "material impact" on Bankman's company. -Frida, its native FTT token, or its subsidiary Alameda Research. It is noteworthy that Armstrong, against the backdrop of the collapse of the “neighbor”, clarifies such details for a reason, but in order to oppose his trading floor to the FTX exchange: “I think it’s important to reinforce what differentiates Coinbase in a moment like this. This event appears to be the result of risky business practices, including conflicts of interest between deeply intertwined entities, and misuse of customer funds (lending user assets). Coinbase has always strived to be the most trusted player in the space, and we don’t engage in this type of risky activity.” According to Armstrong, FTX's difficulties highlight the need for a more transparent crypto ecosystem. He believes that in the long term, the crypto industry has the opportunity to create a better system with DeFi and self-service wallets that do not rely on the trust of third parties. However, the position of the CEO of Coinbase is based on indifference and actually shakes the crypto community, showing a negative example of the lack of dialogue between the crypto giants. Thus, the credibility of the entire industry is falling, and investors continue to lose their money.
-11,000 Employees: Mark Zuckerberg's Meta Cuts Its Staff en Masse
Social media giant Meta, owned by Mark Zuckerberg, has announced the company's first mass layoff, which resulted in a reduction of up to 13% of its staff and an extension of the moratorium on hiring new specialists. Now the company will not be able to hunt new specialists until the first fiscal quarter of next year. Zuckerberg himself says that he takes full responsibility for the layoffs, which were caused by a sharp increase in costs and the recent collapse in the value of the company's shares. By the way, Meta’s share price fell “not out of the blue”, but as a result of excessive investment in some areas (“augmented reality first came into conflict with non-augmented reality”), which took place against the backdrop of a large-scale macroeconomic downturn and increased competition. Moreover, Zuckerberg personally recognizes the role of these circumstances in deciding on massive layoffs. In the third quarter of 2022, Meta's revenue was just $285 million, the lowest in that period in the company's history. The news spooked the company's shareholders and raised concerns about the prospects for the Metaverse. And, apparently, not in vain.