NiftyNoon: Binance Acquires FTX... or Does It?
For November 9, 2022
Nifty Analysis
The fall of FTX has wide implications for all of the cryptocurrencies. As NFTs are still currently purchased with tokens such as Ethereum and Solana, most people require centralized exchanges such as FTX to onboard themselves into the ecosystem. FTX, once the third-largest exchange by volume, was viewed as one of the most responsible players in the industry. The revelation that they were seeking leverage secured to tokens issued by themselves is deeply troubling. Their insolvency has the potential to set the entire crypto space back years and cause consumers to lose billions of dollars in aggregate. Although CZ has tentatively announced Binance’s intention to purchase FTX, they have given themselves wiggle room to leave the deal pending any due diligence. It is likely that the acquisition of FTX will not make much financial sense for Binance. If CZ completes the purchase, he will be doing so to protect the industry and consumer deposits. We do not believe the acquisition is likely to go through in its current form. Only time will tell.
In the future, there will likely be a shift toward exchanges that provide proof of reserves either on-chain or through audited financials. In the meantime, centralized exchanges with transparent balance sheets (such as Coinbase) are likely going to be less risky. However, nothing is safer than self-custody cryptocurrencies in hardware wallets for people that are savvy enough to keep these wallets secure. Please stay safe and responsible.
Project News
As a result of the bank run on FTX, Sam Bankman-Fried announces a tentative sale of FTX to Binance pending their due diligence in a move to protect consumer deposits despite the firm’s insolvency:
1) Hey all: I have a few announcements to make. Things have come full circle, and FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for FTX.com (pending DD etc.).
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.Yuga Labs announces their official news website with security features integrated to ensure user safety:
We’re excited to announce news.yuga.com. This is the new home for all official press releases, blogs, events, and drops. Follow the thread below for a breakdown of the site's new security features. 🧵
Rarible shares their strong support for creator and artist royalties:
Community News
Yuga Labs co-founder Gordon Goner reveals his support for creator royalties and proposes an allowlist solution:
FTX insolvency impacts many in crypto space as noteworthy community figureheads reveal their exposure to this collapse:
Quick Stats:
OpenSea ETH Daily Volume: 6,047 ETH (▼ 20.11%)
Blur ETH Daily Volume: 2,558 ETH (▼ 18.82%)
BTC: $17,068.19 (▼ 15.39%)
ETH: $1,163.65 (▼ 24.32%)
Solana: $16.28 (▼ 46.36%)
Polygon: $0.90 (▼ 5.58%)
NFT Daily Winners:
VeeFriends: 5.88 ETH (▲ 15.29%)
Bored Ape Yacht Club: 65.00 ETH (▲ 4.89%)
DigiDaigaku 11.50 ETH (▲ 4.55%)
CryptoPunks: 64.25 ETH (▲ 2.07%)
Mutant Ape Yacht Club: 11.29 ETH (► 0.00%)
NFT Daily Losers:
Moonbirds: 7.35 ETH (▼ 3.29%)
Proof Collective: 36.00 ETH (▼ 5.26%)
Azuki: 10.00 ETH (▼ 7.41%)
Doodles: 5.91 ETH (▼ 7.66%)
Clone X 7.43 ETH (▼ 10.37%)
Chromie Squiggles: 13.89 ETH (▼ 16.33%)
Notes:
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