NiftyNoon: Binance Abandons FTX Acquisition

For November 10, 2022

Nifty Thought

• Although Binance walking away from the FTX deal is unsurprising, it is still supremely unfortunate for FTX customers and the cryptocurrency market overall. The implication of this insolvency cannot be overstated. Consumer trust in centralized exchanges will plummet. This trust loss will become another huge barrier for onboarding new prospective buyers into the space. Furthermore, FTX’s position in the mainstream with its e-sports sponsorships, celebrity advertisements, and arena will likely make its failure a public spectacle for many people that were already crypto-skeptical.

• On the bright side, consumers will likely also demand better proof of reserves and proof of liabilities from all exchanges they deposit into, even the titans such as Binance and Kraken. Although this will likely set back the entire industry a few years (at least), it will also present an opportunity for crypto firms to straighten up and become more legitimate. This is likely intense short-term pain for necessary long-term gain. Stay safe and responsible.

Project News

• Binance walks away from its non-binding FTX acquisition citing mishandling of customer funds and alleged US agency investigations as its reasoning:

  Binance @binance

  As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.

• OpenSea announces its commitment to honour creator royalties on all existing NFT collections:

  OpenSea @opensea

  UPDATE: We will continue to enforce creator fees on all existing collections. 🧵⬇️

Community News

• Concerns regarding FTX’s involvement with Solana (and particularly wrapped Sollet tokens) circulate the crypto community:

  meow @weremeow

  1/ One of the most challenging and unspoken issue facing the @solana ecosystem are the wrapped Sollet tokens, namely soBTC, which is used widely across lending and AMM platforms. The problem? These tokens are issued by FTX (or Alameda, no one really knows)

• As FTX concerns tank NFT prices, a new wave of BAYC BendDAO loan liquidations once again threatens the project’s floor price:

  NFTstatistics.eth @punk9059

  The risk unsurprisingly is rising again with BendDAO. When their oracle updates its BAYC floor price there could be 20 apes up for auction. BendDAO currently says floor is 68.4 but in realty it's around 62-63. These apes have debt of 50-53 ETH.

  

• Deepak, the CEO of Chain, announces 8-digit loss exposure to FTX and details his decision to sever ties with Alameda in the summer of 2022:

  Deepak.eth ⛓ @dt_chain

  In the interest of transparency: Alameda used to be the primary maker for $XCN, however we terminated the relationship back in the summer of this year due to market irregularities. We recalled the loan then and they no longer were our primary market makers. (1/8)

  Deepak.eth ⛓ @dt_chain

  We trusted that statement and left funds there from the recent deposit and trade. Unfortunately, our funds are now stuck and we have an 8 figure exposure, waiting for withdrawals to process. (3/8)

Quick Stats:

• OpenSea ETH Daily Volume: 8,144 ETH (▲ 27.55%)

• Blur ETH Daily Volume: 1,852 ETH (▼ 18.84%)

• BTC: $17,719.76 (▲ 0.12%)

• ETH: $1,330.77 (▲ 8.30%)

• Solana: $17.30 (▼ 7.19%)

• Polygon: $1.13 (▲ 18.55%)

NFT Daily Winners:

• CryptoPunks: 66.75 ETH (▲ 3.89%)

• Doodles: 6.00 ETH (▲ 1.52%)

• Proof Collective: 36.00 ETH (► 0.00%)

NFT Daily Losers:

• Azuki: 9.94 ETH (▼ 0.54%)

• Chromie Squiggles: 13.69 ETH (▼ 1.44%)

• Clone X: 7.15 ETH (▼ 3.77%)

• DigiDaigaku: 10.85 ETH (▼ 5.69%)

• Mutant Ape Yacht Club: 10.50 ETH (▼ 7.00%)

• Moonbirds: 6.80 ETH (▼ 7.48%)

• Bored Ape Yacht Club: 58.79 ETH (▼ 9.55%)

• VeeFriends: 5.00 ETH (▼ 14.97%)

Notes:

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