Crypto Market Overview November 10th | Dex-Trade
Binance Steps Back: How Justin Sun Intends to Save FTX
Tonight, it was revealed that crypto giant Binance is distancing from buying Sam Bankman-Fried's distressed FTX marketplace, after which Tron ecosystem founder and Grenadian ambassador to the World Trade Organization, Justin Sun, revealed that his company is already working on a solution to enable put an end to the liquidity crisis. It is noteworthy that after considering the options for a deal with FTX, the head of Binance, Changpeng Zhao (CZ), changed his rhetoric and stated that his crypto exchange was only involved in finding a solution that would stop the liquidity collapse of the FTT token, which caused that the Bankman-Fried cryptocurrency exchange was on the verge of bankruptcy. In turn, Sun said that the ongoing liquidity crisis of FTT, in terms of regulation, poses a threat to the entire industry. That is why his team is now working around the clock to prevent the collapse of FTX. At the same time, FTT touched the bottom in the $1 area yesterday, but today it is trading in the $2.5-$3 area, which may be caused by increased attention to the asset. It is worth noting that the collapse of a major cryptocurrency exchange caused serious indignation from world regulators. Moreover, FTX is regulated in Singapore, where the majority of users have already blocked digital assets on the site. As a result of the bankruptcy of the exchange, the issuance of licenses to crypto companies will now be preceded by extensive financial due diligence. By the way, the US Securities and Exchange Commission (SEC) has already launched an official investigation into FTX. It’s time to call Do Kwon…
Cathie Wood Is Not Worried About FTX: Investing in Coinbase Was the Right Decision
The founder of the investment company Ark Invest, Cathie Wood, is clearly not worried about the collapse of FTX, because amid dramatic events with the loss of liquidity of the site's native token, FTT, Ark Invest increases its position in Coinbase and buys another 420,949 shares of the company (COIN) for about $21 .4 million Prior to this, the company had already acquired about $7.7 million worth of Coinbase shares. However, on Tuesday evening, the price of COIN declined by about 11%, and the shares fell 2.5% in US pre-market trading. However, approximately 330,000 of the total assets have been transferred to ARKK's flagship exchange-traded fund (ETF), which invests in breakthrough innovation-focused businesses. Despite a difficult year for Coinbase, during which the company lost about 80% of its regular income, Wood remains enthusiastic about the company and cryptocurrency in general. What’s more, new equity investments were made when the intrigue between Binance and FTX was intensifying, so such investments have a positive effect on the industry as a whole. How effectively can this keep the market from collapsing? Unfortunately, the news that Binance is selling all of its FTT tokens has had a much more tangible effect on the market as a whole. BTC hit $15,710 this morning for the first time in 2020, signaling many investors to liquidate their positions.
Nikolaos Panigirtzoglou of JPMorgan Predicts BTC to Fall to $13,000
According to strategists from the banking giant JPMorgan, led by analyst Nikolaos Panigirtzoglou, as a result of a large-scale market collapse associated with the collapse of FTX, the price of bitcoin could fall to $13,000. A group of analysts argue that if FTX files for bankruptcy, the losses for the entire crypto market could be huge. At the same time, the CEO of FTX, Sam Bankman-Fried, even before Binance refused to buy a crypto exchange, told the company's investors that the hole in the balance sheet of the site is about $8 billion. Meanwhile, experts from JP Morgan believe that the resumption of capitulation of miners against the backdrop of already catastrophic changes in the market is one of the main risks at the moment. It is possible that many large miners will follow the path of Core Scientific and will be forced to sell their assets in BTC, which will put additional pressure on the market. However, according to Jaran Mellerud of the Hashrate Index, nothing is more important in a bear market than a healthy balance. Miner Riot, for example, has a solid balance sheet with minimal debt, which is reflected in their low debt-to-equity ratio. Moreover, most of the TOP-10 large bitcoin miners can boast the same good or even better performance. This is the only hope...
