Crypto News: A Weekly Review

On Tuesday, crypto investors needed help deciding if they appreciated Binance’s proposed acquisition of rival FTX.  The Bitcoin price was down dramatically below $20,000, which had been its support for the previous two weeks, immediately after the agreement was disclosed.


Prices were spiking above the threshold hours later. However, by late afternoon, the biggest cryptocurrency by market capitalization had fallen below $19,000 for the first time since mid-September. The price of BTC was recently below $18,500, down more than 10% over the preceding 24 hours and its first dip below $19,000 since mid-October.


Ether and the majority of altcoins witnessed similar whipsawing. Recently, the market value of the second largest cryptocurrency was trading at about $1,300, down more than 15% from Monday at the same time and at its lowest point in more than two weeks.


Tokens from all parts of the crypto space were caught up in the catastrophe. FTX’s FTT was traded at over $5, down more than 75% in the last 24 hours. Solana’s SOL was down more than 20% after Monday on speculation that Sam Bankman-Fried’s company, Alameda Research, could have to liquidate some of its assets to obtain liquidity. Although Binance’s BNB coin beat the market, it was still down around 4% by that time. Check out what unfolded in the crypto sphere.


The War Is Over!: Binance Announces FTX Buyout And The Market Recovers


Binance, the world’s biggest cryptocurrency exchange, will likely buy one of its biggest competitors, FTX. The news calmed the waters in a big way, but what’s next? Will Binance go through with the buyout? What does this story say about FTX’s business model? Were they fractional-reserving their way to success?


The CEO of Binance, CZ, is admitting to a liquidity crunch that shouldn’t be there. “To protect users, we signed a non-binding LOI(Letter of Intent), intending to fully acquire and help cover the liquidity crunch,” he humbly tweeted. And then, he clarifies that the deal isn’t done yet. “This is a highly dynamic situation, and we are assessing the situation in real-time,” he said.


Bitcoin To Dump Even Lower? This On-Chain Metric May Suggest It


A “coin day” is the amount that 1 BTC accumulates after sitting still on the chain for 1 day. The “Coin Days Destroyed” (CDD) indicator measures the total amount of such coin days currently being destroyed on the Bitcoin network. The value of this metric seems to have been quite high over the last twenty-four hours. In the last 24 hours, the Bitcoin price plunged below $20k right after the CDD saw its surge, but as the chart shows, the metric still hasn’t winded off just yet. LTHs(long-term holders) tend to accumulate a large number of coin days, which is why when they move to sell their coins, coin days in great quantities get destroyed.


CZ Binance Hints At Rising Taxation Being Detrimental To Indian Crypto Industry


The Indian government recently implemented a new law to tax gains and income from virtual digital assets (VDAs). The new tax policy came to focus at the Singapore Fintech Festival. Binance CEO, Changpeng Zhao (CZ), pointed at the high tax rates as a killer of the crypto industry. Crypto exchanges in India have reported a 90% decline in activity since introducing high tax rates. WazirX is going through a decline in sales volume and laid off 40% of its workforce in October. India’s Central Board of Direct Taxes (CBDT) has proposed a reformed common ITR form.


NFT Market Decline Leads To Dapper Labs Laying Off 22% Of The Staff


Crypto Firms such as Dapper Labs are currently feeling the heat of these markets’ downturn. The company has lost more than 90% of its NBA Top Shot sales volume dating from February 2021 till now. Some of its notable investors are the renowned basketball legends Kevin Durant and Michael Jordan. The ongoing NFT market trend seems to be affecting Web3 companies negatively, and Dapper Labs is no exception. The company revealed this information on November 2, stating that it would reduce its staff capacity by 22%. According to the firm, the decision is a pretty tough one.


Can Russia Circumvent EU Sanctions Through Cryptocurrency?


Russia has seemingly turned to cryptocurrency since the West decided to ‘punish’ the nation for its invasion of Ukraine. A list of sanctions had been imposed upon the country by the U.S. and EU which worked to essentially cut Russia off from world traders. By using a cryptocurrency such as Bitcoin, Vladimir Putin could evade these sanctions and the established banking system. The EU relies heavily on the supply of oil and gas from Russia. Using crypto instead of spending millions of dollars to change suppliers would make sense.


Russia is already softening its stance on cryptocurrencies since the Ukraine crisis started. Trade Minister Denis Manturov has said that the country will legalize digital asset payments “sooner or later”.


Is Elon Musk The Largest Holder Of Dogecoin (DOGE) With 28.52% Of the Supply?


An anonymous on-chain analyst has now set out to shed light on the matter. Elon Musk himself said via Twitter that the biggest issue with Dogecoin is its concentration among a few whales. But what if Musk himself is the largest of all DOGE whales? This rumour has been circulating in the crypto community for quite some time. The whale’s DOGE came from 5 addresses, with the skin portion coming from this address: DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L.


On February 10, 2021, Elon Musk tweeted that he bought Dogecoin’s for his son. The address beginning with “DH5ya” held 36.71B dogecoin, which corresponded to 28% of the total supply.



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