Welcome to Barmy’s Daily Crypto News – November 28th, 2022
1. “The crypto industry needs to self-police” according to Billionaire Bill Ackman
Ackman is the CEO and portfolio manager of Pershing Square Capital Management, a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). About $3.5 billion is his current net worth.
He claimed that new regulations for cryptocurrencies may not be necessary. Traditional pump-and-dump schemes and custodians’ failure to secure customer assets account for a large portion of the fraud that is occurring.
To regulate the bad actors, regulators need greater funding. To avoid being shut down, the cryptocurrency sector must self-police and root out unscrupulous actors. Many people are advocating for stricter cryptocurrency regulation in response to the earlier this month collapse of FTX, a significant cryptocurrency exchange.
Because they considerably increase the likelihood of regulatory interference, fraudulent actors should be highly incentivized to be exposed and eliminated from the crypto ecosystem by all legitimate players. This will delay the beneficial potential effects of crypto for future generations.
2. Web3 game publisher Fenix Games raised $150 million in funding round
For the purpose of buying, investing in, and distributing blockchain games, Fenix Games raised $150 million in funding. To mainstream blockchain games, the investment will be utilized to establish a game publishing company.
Phoenix Group and the venture capital firm Cypher Capital, which has offices in Dubai, participated in the most recent investment round for Fenix Games, according to the local news outlet Jinse. For fostering the development of the following wave of blockchain games, Chris Ko compares Fenix Games to “like a VC fund.”
They will actually begin with a sizable amount of money to put into those studios for the newest gaming technology. Additionally, they want to establish a portfolio by acquiring a number of Web2-related games that are already on the market using their balance sheet. The future strategy of Fenix Games aims to expand the gaming industry through publishing efforts.
3. Venezuelan Currency Takes a Nosedive due to Crypto’s Influence
The bolivar, Venezuelan’s currency, has been depreciating at a startling rate. In parallel markets, the value of the currency has fallen by approximately 40% in comparison to the US dollar, alarming individuals who are concerned about the rapid pace of the devaluation.
Oliveros, the CEO of Ecoanallitica, an economics research company, thinks that there is a crypto element that makes this scenario more serious in addition to the conventional suspects. According to Oliveros, market makers who used cryptocurrency exchanges as a means of introducing these assets into the nation were currently supplying the majority of the parallel currency market, which is independent of governmental action.
These market makers have curtailed their involvement as a result of the continued downward trend the cryptocurrency market is in and the waning faith in centralized exchanges brought on by the failure of FTX. This has made the market less liquid and increased the scarcity of dollars.
The economist describes the current situation as a “perfect storm” for devaluation to continue developing and anticipates that the exchange rate will increase as these issues worsen over the next days.
4. Russia’s Head of State Urges for Blockchain-Powered International Payments
Vladimir Putin, the president of Russia, has advocated for the creation of a brand-new system for international settlements that is free from banks and outside intervention. According to the Russian leader, who was quoted by local media, it can be produced utilizing distributed ledger technology and digital currency technologies.
He claimed that “We all know quite well that one of the lines of assault under today’s unlawful constraints is through settlements. And because they are exposed to these techniques, their financial institutions are the ones who understand this the best”.
Vladimir Putin was referring to the sanctions put in place against the Russian Federation as a result of its invasion of the nearby Ukraine, which have severely restricted its access to international markets and finances. He added the following, per a report from the Prime news agency: The current system of international payments is costly, with correspondent accounts and rules being managed by a select set of countries and financial institutions.
In recent months, Russia has been considering comprehensive crypto laws in light of growing support for the acceptance of cross-border cryptocurrency payments.
5. Alameda Research withdrew over $200M from FTX.US before it filed for bankruptcy
In a thread on Twitter, Arkham disclosed that in the final days before the collapse, Alameda Research, FTX’s sibling firm, took $204 million in various crypto assets, the most of which were stablecoins, from eight distinct FTX US accounts.
$116 million, or 57.1% of the withdrew money, were held in stablecoins tied to the US dollar, such as Tether (USDT) and USD Coin, TrueUSD (TUSD) and Binance USD (BUSD) . Additionally, according to Arkham’s study, $49.49 million (24.2%) of the monies were in Ether, with Wrapped Bitcoin accounting for $38.06 million, or 18.7%. (wBTC).
According to Arkham, the withdrawn wBTC was transferred to the Alameda WBTC Merchant wallet before being fully bridged to the BTC Blockchain. Of the $204 million transferred, $142.4 million, or 69%, was sent to wallets owned by FTX International, “suggesting that Alameda may have been operating to bridge between the two entities,” he added.
Of the transferred Ether, $13.87 million was delivered to a sizable active trading wallet and $35.52 million was transmitted to FTX. It’s unclear, according to the company, “whether the over $14 million in ETH was moved to 0xa20 as part of a deal, or as an internal financial transfer within Alameda. It also sent $10.4 million to Binance, a rival bitcoin exchange.
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