Riding The Wave News Summary 95

Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse, FTX bankruptcy freezes millions worth of crypto company funds & more.

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News

Table of Contents

1. Tweets

2. Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse

3. FTX bankruptcy freezes millions worth of crypto company funds

4. House Committee Calls on SBF, Binance to Testify on FTX Collapse

5. BlockFi Prepares for Potential Bankruptcy as Crypto Contagion Spreads

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Tweets

The Kobeissi Letter @KobeissiLetter

New data shows that 49% of restaurants in the United States were unable to pay rent last month. Furthermore, nearly 40% of all small businesses were unable to pay rent in October. Damage from inflation is spreading from corporations to small businesses. This is a recession.

Alex Svanevik 🐧 @ASvanevik

People saying proof-of-reserves isn’t good enough. It’s a start, and a move in the right direction. Do you really think it’s better that we *don’t* see exchanges’ reserves on-chain … ?

Dylan LeClair 🟠 @DylanLeClair_

Bitcoin will bottom when all of the hidden leverage and circulation credit in the broader crypto space is totally wiped out, and the net leverage present in the system is actually skewed to the short side. This was the case in March of 2019 & March 2020.

Watcher.Guru @WatcherGuru

JUST IN: #Binance to launch "industry recovery fund" to assist big projects in liquidity crisis.

Wall Street Silver @WallStreetSilv

Elon is picking a fight with the SEC ... Twitter unleashed is so much fun. 🔥🔥🔥

The Kobeissi Letter @KobeissiLetter

We now have: 1. Two consecutive quarters of negative GDP 2. Lowest earnings growth since Q3 2020 3. Fastest falling housing market since 2011 4. $2 trillion in crypto losses and collapse of FTX Yet, the Fed just said a “soft landing” is possible. The Fed has lost control.

Bitcoin Archive 🗄🚀🌔 @BTC_Archive

NEW - CryptoCom hold customer assets 1:1 which will be demonstrated in audited Proof of Reserves - CryptoCom CEO 🧐

Corleone @corleonescrypto

Metamask Airdrop Guide Metamask has been hinting at a MM token for a while now. It is already valued at 7b, this could be one of the biggest airdrops ever. - Quick guide to get the highest possible $MM or $MASK airdrop Let’s dive in 👇

ApeCoin @apecoin

Ape Fam, we want to reassure the community with some information in light of the recent events in the blockchain ecosystem. The Ape Foundation did not, and does not currently, hold any assets on FTX. The treasury is held in segregated custody accounts via Coinbase Custody. (1/5)

Crypto Tea @CryptoTea_

Ethereum might be FUCKED now because of FTX Here’s why 🧵

Edward Snowden @Snowden

There's still a lot of trouble ahead, but for the first time in a while I'm starting to feel the itch to scale back in.

WendyO.eth✨ @CryptoWendyO

What in the actual fxck FTX faked an order from Bahama regulator to further steal from their customers

Altcoin Daily @AltcoinDailyio

#FTX faked an order from the Bahama regulators so they could withdraw crypto while everything was paused. Bahama regulator then issued an official statement saying FTX was lying. 💀 https://t.co/DjRb0of4Ez

Bitcoin Archive 🗄🚀🌔 @BTC_Archive

NEW: Alameda was using inside information to buy coins ahead of FTX listings - WSJ And they still lost $10b Billion! Useless…

Mario Nawfal @MarioNawfal

Ok... this is fkd! 1. Alameda invests in a project 2. Alameda asks that project to put that invested money into FTX 3. FTX sends that same money BACK to Alameda 4. Alameda invests in another project 5. And the cycle continue... yep... and we all didn't see this happening 🤯

gainzy @gainzy222

“How will I make it back, I’m broke” Last time around, it was ref links, high leverage, and airdrops. This time around I think it’ll be free nft mints. Possibly dex ref links. The only way to position yourself to find it is to follow others who are broke and hungry to make it.

Narb @NarbTrading

Just do it on Polygon. @0xPolygon 🤝 @Nike

Sisyphus @0xSisyphus

SBF mentions a video game in the NYT piece, called "Storybook Brawl" It turns out FTX actually owns this game, he used the article as a promoted ad basically

Bitcoin Archive 🗄🚀🌔 @BTC_Archive

FTX: 'Big Short' author spent 6 months interviewing Sam Bankman-Fried - a book is coming out. Can't wait for the movie... 👀

Aylo @alpha_pls

Brands building on @0xPolygon: • Nike (announced today) • Adidas • Starbucks • Reddit • Meta • Robinhood • Ebay • Disney • Stripe • Adobe Looks like adoption to me.

Bitcoin Archive 🗄🚀🌔 @BTC_Archive

CryptoCom withdrawal queue is down 98% within the last 24 hours - CryptoCom CEO 🧐

Wall Street Silver @WallStreetSilv

Confirmed: Recession Coming 🚨🚨🚨 When was the last time you saw shipping company layoffs BEFORE Christmas.

Blockworks @Blockworks_

JPMorgan: All of the recent collapses have been from centralized players and not from decentralized protocols

Markets & Mayhem @Mayhem4Markets

Jeff Bezos is not particularly optimistic about the US economy.

unusual_whales @unusual_whales

Cristiano Ronaldo launches first NFT collection with Binance.

Graham Stephan @GrahamStephan

We are looking at another dot-com level event in terms of stock price crash and layoffs! Meta (-66% YTD) : 11K Employees Robinhood (-72% YTD): 23% of staff Snapchat (-76% YTD): 20% of staff Amazon (-42% YTD): 10K employees Netflix ( -50% YTD): 450 employees

Edgy - The DeFi Edge 🗡️ @thedefiedge

.@DefiLlama shipped a new feature to show off CEX reserves. Clean TVL means it excludes tokens that the exchange issues itself.

Miles Deutscher @milesdeutscher

4 days ago I said that LUNA’s collapse triggered the downfall of FTX. Looks like the truth is now coming out.

The Kobeissi Letter @KobeissiLetter

The $VIX has just turned green while $SPX is up 60 points today and 10% over the last month. The only certainty we have had during this entire bear market is $VIX trading with a mind of its own. Levels of fear and panic have been some of the lowest ever during a bear market.

Wall Street Silver @WallStreetSilv

Uh Oh ...... 🚨 🚨 🚨 Not good.

Dylan LeClair 🟠 @DylanLeClair_

The FTX exploiter, who has been dumping all other drained assets for ETH, is now one of the largest holders in the world, with 228,523 ETH ($284.82m) currently in their wallet. Everyone should keep an extremely close eye on what happens next...

Autism Capital 🧩 @AutismCapital

FTX Insider shares a message from the company Slack

Jack Niewold 🫡 @JackNiewold

BOTTOM SIGNAL ROLL CALL: Pre 3AC-blowup, I asked a bunch of cryptocurrency OGs about how to detect market bottoms. They came up with 14 bottom signals—and at that point, we had only seen 4. Where are we today?

merp @0xMerp

SBF blew up, Cramer says to exit all crypto markets, 100k BTC traded on Coinbase in a single day, tether pool did 3 Billion dollars in volume last week, CZ is publicly mass bidding, people are saying this time is different and its "unironically over", and you're still bearish? https://t.co/YWYAmrB8qy

BICEP 💪 Buy NFTs from coolcnfts.com 🚀💯 @BicepPool

BREAKING NEWS: Cardano $ADA named in G20 Bali Summit meetings as most environmentally friendly crypto #G20BaliSummit

Bitcoin Archive 🗄🚀🌔 @BTC_Archive

BREAKING: FBI to extradite SBF to the U.S - DailyMail About time!

CryptoCrushMia ♥️🚀 @cryptocrushmia

The largest airdrop in #crypto history that NOBODY is talking about: Metamask is valued at 7 BILLION dollars and will be airdropping $MASK to it's users. 💸💰 5 steps to make sure you qualify: 👇🏼

Frank Chaparro @fintechfrank

Genesis just held a 7 minute call with clients to let them know withdrawal requests for Genesis Capital have exceeded their liquidity profile; CEO says he’s working on a plan with advisors to fix their liquidity profile and serve clients

Ryan Shea @ryaneshea

This is crazy: Elizabeth Warren is known for being the anti-crypto Senator Who helped her draft her tax legislation in 2016? None other than Joseph (Joe) Bankman, the father of SBF

fortune.comThe FTX debacle makes SEC Chair Gensler look bad—againGary Gensler missed the biggest crypto collapse to date. It’s a bad look for the SEC and by extension the Democrats.

Watcher.Guru @WatcherGuru

JUST IN: 🇺🇸 US House Committee announces a hearing on the FTX collapse.

Bitcoin Archive 🗄🚀🌔 @BTC_Archive

BREAKING: Crypto-lender Genesis has stopped withdrawals - Coindesk

Adam Cochran (adamscochran.eth) @adamscochran

Gemini exchange now entirely offline? They had said they were just pausing the earn program? https://t.co/mg44zlpONd

Pentoshi 🐧 @Pentosh1

https://t.co/M9xpMl2Obq

Crypto Tea @CryptoTea_

Could this cancel the 2024 bitcoin halving bull run? A thread:

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Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse

The lending arm of crypto investment bank Genesis Global Trading is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse, Interim CEO Derar Islim told customers on a call Wednesday.

The unit, known as Genesis Global Capital, serves an institutional client base and had $2.8 billion in total active loans as of the end of the third quarter of 2022, according to the company’s website.

Genesis Trading, which acts as Genesis Global Capital’s broker/dealer, is independently capitalized and operated separately from that lending unit, Islim said. He added that Genesis’ trading and custody services remain fully operational.

Islim told the participants on the call that Genesis is exploring solutions for the lending unit, including finding a source of fresh liquidity. He said Genesis intends to detail its plan to clients next week.

Stablecoin issuer Tether also confirmed in a blog post Wednesday that it had no exposure to either Genesis or Gemini Earn. “Tether is operating business as usual,” the company wrote.

Genesis suffered major losses earlier this year due to the failure of hedge fund Three Arrows Capital (3AC).

Full Article

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FTX bankruptcy freezes millions worth of crypto company funds

The collapse of the cryptocurrency exchange FTX continues to have knock-on effects throughout the crypto industry, with multiple crypto-focused companies reporting significant amounts of their capital stuck on FTX.

Between Nov. 11 to 14, three crypto companies announced large losses, with one of them having to lay off workers to deal with the crisis.

On Nov. 11, crypto hedge fund Galois Capital announced it had “significant funds” stuck on FTX, with a Nov. 12 Financial Times report that said a possible $50 million worth of Galois’ assets were stuck on the exchange.

Other crypto-focused companies have reported their funds arestuck on the now-bankrupt exchange.

New Huo Technology, the owner of the Hong Kong-based crypto platform Hbit Limited announced on Nov. 14 it failed to withdraw $18.1 million worth of cryptocurrency before FTX stopped processing withdrawals.

Nigerian Web3 startup Nestcoin also announced it failed to withdraw funds from FTX with the company’s CEO, Yele Bademosi, posting to Twitter on Nov. 14 a letter previously shared with investors.

Full Article

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House Committee Calls on SBF, Binance to Testify on FTX Collapse