Daily Crypto News | November 20th, 2022
Welcome to Barmy’s Daily Crypto News – November 20th, 2022
1. 14 bad exchanges remove 1.2M BTC from circulation, increasing bitcoin scarcity
The strict 21 million total circulating supply restriction of Bitcoin is one of the main characteristics that set it apart from fiat money and the majority of cryptocurrencies. However, over the past ten years, a number of crypto exchanges have shut down, permanently removing at least 5.7% (1.2 million BTC) of the entire Bitcoin supply from circulation.
The main cause of these exchanges’ abrupt collapses was revealed to be the ambiguity surrounding their evidence of reserves. According to historical information about cryptocurrency collapses, a total loss of 1,195,000 BTC—or 6.3% of the 19.2 Bitcoin now in circulation—was caused by 14 crypto exchanges.
While Lopp noted that phony Bitcoin offerings currently threaten the ecosystem and that “Bitcoin will not be a great store of wealth if most people are buying fake bitcoin,” it is true that the scarcity of Bitcoin is directly tied to its value as an asset. Investigations have revealed that at least 80 digital assets, whose sole purpose is to deceive BTC investors, include “Bitcoin” in their names.
Investors buying phony Bitcoin assets as a result have a negative effect on the rise in price of real Bitcoin. Self-custody emerges as the most efficient way to lessen reliance on crypto exchanges and corporate “paper Bitcoin” contracts to maintain Bitcoin’s position as sound money.
2. South Korean authorities froze $104.4M from from Terra co-founder Shin Hyun-seong
South Korean authorities froze over $104.4 million (140 billion won) from co-founder Shin Hyun-seong because to allegations of improper gains nearly six months after the Terra blockchain was formally shut down.
The Seoul Southern District Court agreed to the prosecutors’ plea to freeze Shin’s assets, which total more than $104 million. The district court put a freeze on the allegedly stolen money until additional investigations were carried out due to suspicions of benefitting from illegal LUNA sales.
“There is no truth to rumors that CEO Shin Hyun-seong made money by selling Luna at a high price or by employing other shady tactics” according Shin’s attorney. However, authorities in South Korea are currently looking into Shin on two counts: generating unauthorized gains from the issuance of the company’s own tokens, LUNA and TerraUSD (UST), and giving Terraform Labs access to customer transaction data through Chai, a Korean payment app connected to Terra.
3. Grayscale Updates Public With Safety and Security Information
The FTX disaster spread dread throughout the cryptocurrency market, which led to a large-scale withdrawal of cryptocurrency after the incident.
An update “regarding the safety and security of the assets stored by” the company’s digital asset products was tweeted by Grayscale Investments on Friday. Genesis’ announcement to halt withdrawals and new loan originations from the firm’s lending unit was followed by Grayscale’s announcement.
People have recently been criticizing Grayscale and pointing out how the Grayscale Bitcoin Trust (OTCMKTS: GBTC) is upside down. In terms of shares owned, DCG is the largest shareholder of GBTC, just ahead of Ark Investment Management. Grayscale is in charge of 643,572 bitcoin (BTC), or 3.065% of the total supply of the cryptocurrency.
The laws, regulations, and documents that define Grayscale’s digital asset products prohibit the digital assets underlying the products from being lent, borrowed, or otherwise encumbered. Each of Grayscale’s digital asset products is set up as a separate legal entity: an investment trust for single asset products, and a limited liability company for diversified products.
The Coinbase Custody Trust Company, LLC is in charge of storing all of the digital assets that serve as the foundation for Grayscale’s digital asset offerings. Grayscale continued by saying that while Coinbase often confirms onchain validation, the company has never made onchain addresses available to the public in a public forum.
4. “FTX Accounts Drainer” Now is the 27th Largest Ethereum Wallet
The ethereum address known as the “FTX Accounts Drainer” or “0x59a” has drawn a lot of attention since it is linked to the organization that siphoned off millions of dollars’ worth of tokens from FTX just hours after the firm declared bankruptcy.
On November 12, 2022, the blockchain monitoring company Elliptic published a report on the matter, estimating that the subject siphoned nearly $477 million. Following Elliptic’s blog post, an address known as “FTX Accounts Drainer” also collected a sizable ether cache.
The address contained 228,523.83 ether, making the wallet the 35th-largest ethereum wallet at the time. But since then, the amount of ethereum has climbed by over 22,212 ethereum, and the wallet is now ranked 27th among the biggest ethereum wallets available right now.
The wallet has experienced 688 transactions, some of which are dust transactions sent by unidentified persons, valued at a total of $303 million. The exploiter has another known address in addition to the 250,735 ethereum held by the “FTX Accounts Drainer” or “0x59a.”
5. So Far Gold’s Market Performance in November Has Outpaced Bitcoin’s
The most valuable cryptocurrency, Bitcoin, has experienced worse times as it is now more than 18% lower than it was on November 1st. Analysts, gold enthusiasts, and economists attribute a portion of gold’s recent gains to the drop in U.S. home sales.
The majority of gold’s increase began on November 1, 2022, and it increased even further after the U.S. Bureau of Labor Statistics released the consumer price index for October (CPI). Between November 10 and November 13, 2022, the decreased inflation rate increased the price of gold by 3.81% against the US dollar.
The FTX collapse’s impact on the cryptocurrency markets may have been greater if the inflation rate had been higher, therefore the report also somewhat benefited bitcoin (BTC). On November 10, gold was trading for $1,706 per ounce, and on November 13, 2022, it was going for $1,771. According to Frank Cholly, senior market strategist at RJO Futures, gold may have risen too quickly and is currently taking a break.
Gold enthusiasts predict that the price of gold will increase significantly over the next eight years, much to bitcoin supporters who believe that the Bitcoin halving event would boost BTC’s pricing.
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