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<h2 id="header-0">Fall of FTX, Sam Bankman-Fried admits he “fucked up”</h2><p>No doubt, this week’s top news is the FTX crisis <a href="https://fortune.com/crypto/2022/11/10/ftx-lehman-brothers-crisis/" rel="noopener noreferrer nofollow">compared</a> to the infamous Lehman Brothers collapse. However, the crypto case seems much worse. There’s no governmental structure that could stabilize the situation. So, what went wrong?</p><p>1. The exchange <a href="https://www.wsj.com/articles/ftx-tapped-into-customer-accounts-to-fund-risky-bets-setting-up-its-downfall-11668093732" rel="noopener noreferrer nofollow">used customer’s deposits</a> to lend nearly $10 billion to Alameda Research, its affiliate company.</p><p>2. According to <a href="https://www.coindesk.com/business/2022/11/02/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet/" rel="noopener noreferrer nofollow">CoinDesk’s investigation</a>, FTT accounted for most of Alameda’s balance sheet.</p><p>3. The article resulted in concerns, massive <a href="https://twitter.com/nansen_intern/status/1589426381397843969/photo/1" rel="noopener noreferrer nofollow">withdrawals</a> (<a href="https://twitter.com/cz_binance/status/1589283421704290306" rel="noopener noreferrer nofollow">including Binance’s</a>), and a token price drop.</p><p>4. FTX faced an <a href="https://www.bloomberg.com/news/articles/2022-11-09/ftx-investors-told-that-without-more-capital-bankruptcy-likely#xj4y7vzkg" rel="noopener noreferrer nofollow">$8 billion shortfall</a>, had to halt customer withdrawals, and started looking for help.</p><p>5. Binance backed out of the deal to acquire FTX.</p><p>6. Sam Bankman-Fried <a href="https://twitter.com/SBF_FTX/status/1590709166515310593" rel="noopener noreferrer nofollow">admitted his fuckup</a> and is still looking for <a href="https://www.reuters.com/technology/exclusive-bankman-fried-seeks-94-bln-package-ftx-rescue-sources-2022-11-10/" rel="noopener noreferrer nofollow">investors to rescue FTX</a>. These might be Tron, the OKX exchange, Tether, and the Third Point fund.</p><p>7. Regional departments of FTX have announced users could start withdrawals.</p><p>8. FTX has filed for bankruptcy, and Sam Bankman-Fried resigned.</p><p>Check out Arthur Hayes’s <a href="https://entrepreneurshandbook.co/speechless-9b1b5114bb2c" rel="noopener noreferrer nofollow">“Speechless”</a> essay for an in-depth breakdown.</p><h2 id="header-1">FTX crisis &amp; midterms shake the crypto market, with BTC below $16,000</h2><p>After Binance backed out of the deal, BTC <a href="https://finance.yahoo.com/news/bitcoin-crypto-ftx-binance-contagion-224955324.html" rel="noopener noreferrer nofollow">plummeted below $16,000</a> — for the 1st time since Nov 2020. In a week, its price dropped by 20%. Meanwhile, SOL has lost <a href="https://cointelegraph.com/news/not-just-ftx-token-solana-price-nukes-40-along-with-other-sam-coins" rel="noopener noreferrer nofollow">over 40% of its price</a>, ETH — almost 6%. Dogecoin <a href="https://coinmarketcap.com/alexandria/article/bitcoin-back-below-20-000-amid-nerves-over-ftx-and-midterms-dogecoin-and-solana-hit-hard" rel="noopener noreferrer nofollow">has dropped by 12.7%</a>.</p><h2 id="header-2">Crypto exchanges plan to implement Proof-of-Reserve</h2><p>The FTX crisis caused another aftermath. Top exchanges, such as Binance, Kucoin, Huobi, OKX, and Gate, now plan to use <a href="https://decrypt.co/resources/merkle-trees-guide-explainer-blockchain" rel="noopener noreferrer nofollow">merkle-tree</a> proof-of-reserves.</p><p>It would help provide more transparency and ensure that exchanges:</p><ul><li>Don’t use their tokens as a collateral</li><li>Don’t run on fractional reserves.</li></ul><h2 id="header-3">DOJ seizes 50,676 BTC hacked from Silk Road in 2012</h2><p>The U.S. Department of Justice (DOJ) <a href="https://www.cnbc.com/2022/11/07/feds-seize-3point36-billion-in-bitcoin-the-second-largest-recovery-so-far.html" rel="noopener noreferrer nofollow">seized nearly $3.36 billion</a> worth of crypto from James Zhong. He is accused of stealing crypto from Silk Road — the illegal marketplace that was shut down in 2013. The max sentence is 20 years imprisonment.</p><h2 id="header-4">Binance allows buying crypto with Apple Pay and Google Pay</h2><p>Binance customers in the UK and European Economic Area can now buy crypto with credit and debit cards via Apple Pay or Google Pay. Here’s a <a href="https://www.binance.com/en/support/faq/how-to-buy-crypto-with-google-pay-and-apple-pay-7e6749400a1049aaa5430f1451d82a95" rel="noopener noreferrer nofollow">step-by-step guide</a>.</p><h2 id="header-5">Google to add Solana to Blockchain Node Engine and partner with Aptos</h2><p>The tech giant plans to implement support for Solana next year, launching the dedicated node.</p><p>Google Cloud has also <a href="https://www.theblock.co/post/184241/aptos-and-google-cloud-unveil-partnership-plan-for-accelerator-program" rel="noopener noreferrer nofollow">teamed up</a> with Aptos startup. Google Cloud plans to validate its nodes. Also, the parties will launch an accelerator program.</p><h2 id="header-6">OpenSea’s new tool will help creators get royalties</h2><p>With the code, creators will be able to enforce fees on new and future smart contracts. Existing contracts must be upgradeable to implement the feature. Also, it will allow for restricting sales to those marketplaces that pay royalties.</p><h2 id="header-7">Why do we care about the FTX crisis?</h2><p>Well, it’s not only a huge problem for those who can’t withdraw their money from the exchange. The FTX fall also raised tough questions:</p><ul><li>How can customers be sure exchanges don’t use their funds to save sinking projects?</li><li>How can exchanges add more transparency, and will they?</li><li>If something happens to Binance, who’ll save it and its customers?</li></ul><p>The “Mt. Gox 2.0” case has undermined the trust in the crypto industry, which is more important.</p><h3 id="follow-official-oneart-channels-to-find-the-latest-info-and-updates">Follow official OneArt channels to find the latest info and updates:</h3><ul><li><a href="https://twitter.com/art_wallet" rel="noopener noreferrer nofollow">Twitter</a></li><li><a href="https://t.me/art_wallet" rel="noopener noreferrer nofollow">Telegram Group</a></li><li><a href="https://t.me/artwallet_official" rel="noopener noreferrer nofollow">Telegram Announcements</a></li><li><a href="https://coinmarketcap.com/community/profile/OneArt" rel="noopener noreferrer nofollow">CoinMarketCap Community</a></li><li><a href="https://www.linkedin.com/company/oneart/" rel="noopener noreferrer nofollow">LinkedIn</a></li></ul>

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