Disclaimer: The following publication will review current market sentiment and activity using data from various analytical sources. Points made within this article are my thoughts and opinions and are in no way financial advice.
Today’s Topics
- Binance Forming an Industry Recovery Fund
- Crypto.com Showing Suspicious Activity
- Elon Musk Bullish on Bitcoin
Binance Forming an Industry Recovery Fund
As we are all painfully aware, the FTX insolvency has caused ripples throughout the cryptoverse, with traders, holders, companies, and even full-fledged exchanges feeling the pain in one way or another. Due to this fact, traders, analysts, etc., are calling for an extended crypto winter, as more dominoes are likely to fall in the coming months.
However, regardless of how grim the crypto markets are at the moment, there are still good actors who care about the space’s future and those currently participating in it. For example, the CEO of Binance, CZ Binance, has announced that Binance is now creating an “industry recovery fund” for projects in the space that may be going through a tough time due to the recent liquidity shortage.
This is great for many reasons, but here are my top two.
- This will significantly mitigate the number of dominoes that will fall in the coming months due to top projects receiving liquidity to remain in operation
- A sense of urgency will develop for other industry leaders to follow suit, which will pave the way for the crypto space to rebuild and recover what was lost. I wouldn’t be surprised if Coinbase pitches in within the following days/weeks
Crypto.com Showing Suspicious Activity
There was some strange activity coming out of crypto.com over the weekend that I thought I’d shed some light on. Honestly, this one smells weird, even by my standards.
For backstory, a couple of weeks ago, crypto.com sent a considerable chunk of their cold storage ETH, roughly 80%, to Gate.io, another major exchange in the space. At the time, nothing was said, seeing as exchanges weren’t showcasing wallet addresses to ensure they weren’t next on the insolvency chopping block. However, with the recent paranoia caused by the FTX fallout, complete dives into exchange wallets were done, which is when this transaction was brought to light. But the weird part is, a week later, Gate.io sent back 285K ETH, roughly $356 million at the time of writing.
With how sketchy everything is at the moment, you can’t blame people for being suspicious and wanting answers, especially when a top exchange transfers such a massive amount of their cold storage ETH to another exchange.
Within a few hours of this transaction trending on Twitter, the CEO of Crypto.com, @kris, came clean and essentially said that the transfer happened by accident and that the funds were initially meant to go to a new cold storage address, but instead got transferred to a whitelisted external exchange address. I mean, who doesn’t just oopsie hundreds of millions of dollars of ETH reserves, yeah?
This WTF moment increased fear for many investors, as trust in centralized exchanges is already low. As you can see below, when the masses were made aware of this news, unique transactions spiked very aggressively, essentially showing that users were rushing to remove their funds from the platform. I’m not saying you should too, but remember, not your keys, not your cheese, as the kids say these days.
Elon Musk Bullish on Bitcoin
To some people, Elon Musk is the end all be all, so keeping up with his opinions and actions would be wise, especially as he gets more acquainted with crypto Twitter. He has been relatively active on crypto-related Twitter spaces and has shilled doge every chance he gets, which is hilarious.
However, on a serious note, yesterday, Elon reaffirmed that he is a fan of Bitcoin and believes it will be one of the few currencies to make it in the end, as most of us probably think. For those around during the last bull, you might remember Telsa’s impact on the price action of Bitcoin purely based on just holding the asset. Additionally, now that Elon owns Twitter, the possible outreach for Bitcoin and cryptocurrency just got that much bigger. We just can’t blow up before them, haha (nervously laughs).
