NiftyNoon: FTX Contagion Hits NFTs

For November 11, 2022

Nifty Thought

• The impact of the FTX collapse continues to be felt throughout the cryptocurrency space. Although Blockfi’s subsequent withdrawal pause is unsurprising (they were essentially bailed out by FTX), the impact this will have on NFTs is still unraveling. Beyond the direct impact to the price of various cryptocurrencies, it seems that FTX has been causing some forced or rather distressed sales in the NFT space as well. Most notably is the collection sale of Deepak which includes various CryptoPunks (including a coveted alien cryptopunk) and many Bored Ape Yacht Clubs as well. It is likely this contagion will continue to spread causing more downward pressure across the board.

• While it is easy to get lost in the sea of darkness surrounding cryptocurrencies these days, it is important that these growing pains are also present in the history books for other emerging technologies. The underlying value proposition of true ownership of scarce digital goods remains unchanged in the long run. Stay safe and responsible.

Project News

• Blockfi pauses client withdrawals presumably due to their exposure to FTX:

  BlockFi @BlockFi

  

• FTX releases a slew of announcements including bankruptcy proceedings (with FTX US included), processing of Bahamian fund withdrawals and swaps of Tron-affiliated tokens on FTX into external wallets:

  SBF @SBF_FTX

  1) Hi all: Today, I filed FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings in the US.

  FTX @FTX_Official

  FTX Announcement Regarding the Tron Credit Facility: We are pleased to announce that we have reached an agreement with Tron to establish a special facility to allow holders of TRX, BTT, JST, SUN, and HT to swap assets from FTX 1:1 to external wallets.

  FTX @FTX_Official

  1) Per our Bahamian HQ's regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds. As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators.

• Binance publishes Proof of Reserves in move toward transparency:

  CZ 🔶 Binance @cz_binance

  #Binance published cold wallet addresses and balances for 6 of our 600 coins. More to come. 475K BTC 4.8M ETH 17.6B USDT 21.7B BUSD 601M USDC 58M BNB These were public before anyway, but organized together for your ease of viewing.

  

  binance.comOur Commitment To Transparency | Binance BlogAs part of Binance’s ongoing commitment to transparency and fostering trust in the ecosystem, we are sharing details of our hot and cold wallet addresses.

• KPR reveals their highly anticipated art for their collection:

  KPR @KPRVERSE

  // GALLERY UNLOCKED 10,000 Keepers have answered the call. kprverse.com/gallery Welcome to our universe ➕

  

Community News

• FTX users attempt to withdraw balances by purchasing NFTs issued from Bahamian FTX accounts in a legally questionable move:

  foobar @0xfoobar

  People now withdrawing FTX balances by buying NFTs from Bahamian accounts for six- and seven-figure amounts, buyer then gets side payment and Bahamian withdraws funds Tens of millions of Tether taken so far

  

  

  

  

• Deepak puts entire NFT collection for sale after revealing his 8 figure exposure to FTX:

  Deepak.eth ⛓ @dt_chain

  My NFT Collection is now available. It will either be sold to the highest bidder or be placed in a fractional DAO where I will be selling 80% ownership for 8k ETH to the community. DMs open. Check them out👇

  

Quick Stats:

• OpenSea ETH Daily Volume: 6,759 ETH (▼ 17.00%)

• Blur ETH Daily Volume: 3,264 ETH (▲ 76.24%)

• BTC: $16,929.62 (▼ 4.63%)

• ETH: $1,276.18 (▼ 4.35%)

• Solana: $16.58 (▼ 8.20%)

• Polygon: $1.04 (▼ 8.18%)

NFT Daily Winners:

• Moonbirds: 8.00 ETH (▲ 17.65%)

• Mutant Ape Yacht Club: 10.74 ETH (▲ 4.72%)

• Doodles: 6.11 ETH (▲ 3.95%)

• CryptoPunks: 66.50 ETH (▲ 2.86%)

• Chromie Squiggles: 14.00 ETH (▲ 2.26%)

• Clone X: 7.15 ETH (▲ 1.71%)

• VeeFriends: 5.00 ETH (► 0.00%)

• Proof Collective: 36.00 ETH (► 0.00%)

NFT Daily Losers:

• Bored Ape Yacht Club: 58.46 ETH (▼ 0.57%)

• Azuki: 8.88 ETH (▼ 4.52%)

• DigiDaigaku: 9.40 ETH (▼ 12.07%)

Notes:

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